Professional Documents
Culture Documents
There are many varieties of snacks foods, which are produced in India, and the
type of snack food varies according to the region. The snacks market has changed
with the advent of innovative products. It has emerged as a fast, customized and
large market. There is also a changing perception of consumers towards
processed foods, served in centralized food service system. The primary reason
for these changes is the dynamic marketing environment in the snacks business.
Changes in the marketing environment have generated a need to reconsider the
managerial perspectives on marketing in the snacks business. And in this new
arena of increased competition and market saturation Haldirams is still doing
well with highly satisfied customers. As it has very skilled management who can
easily sense customer requirement, maintain product quality and frequent market
research always assures product authenticity in the market.
This Project has given me a great learning experience and at the same time it has
provided me enough scope to implement my analytical ability. This project has
helped me to know the importance of customer complaints, vendor development,
use of MIS and ERP, promotional strategies of Haldirams, market visit, sales &
distribution forecasting and market survey.
The analysis and study presented in this Project Report is based on data analysis,
market research, and thorough study of marketing strategies used in Haldirams
to maintain its brand equity in the niche market. This Project as a whole provided
insights into the different facts of marketing in an organization but the major
focus can be divided majoring into four parts viz. market survey, research,
promotional strategies and sales&distribution.
The purpose of the report is to learn the facets of marketing and do the
forecasting of sales and laminates for Haldiram PVT. LTD. Along with that I
have also worked in the following areas:-
During this project, I did a survey which reveals the current status of the
companies services and the competitors position in the market. And the
outcomes of that survey company can use for their enhancement and to increase
their business.
business.
To carry out a competitive analysis of Haldirams Snacks vis--vis competitor
brands in the same segment available in Ghaziabad based on parameters such as
pricing, product range, packaging, profit margins to retailers, discounts and
credit policies provided to retailers.
RESEARCH METHODOLOGY
DATA SOURCE:
Research included collecting both primary and secondary data.
PRIMARY DATA
It is the first hand data, new data gathered to help solve the problem at hand.
Data is collected personally for the specific project through research.
Questionnaire was prepared to gather information on the company marketing
and services.
Primary research entails the use of immediate data in determining the survival of
the market. The popular ways to collect primary data consist of surveys, interviews
and focus groups, which shows that direct relationship between potential customers
and the companies. Whereas secondary research is a means to reprocess and reuse
collected information as an indication for betterments of the service or product.
Both primary and secondary data are useful for businesses but both may differ from
each other in various aspects.
SECONDARY DATA
It is the is the second hand data collected by someone else with is gathered
through internet, publications, articles, company books, etc.
DATA COLLECTION:
The data collection method used was none other than survey method which is
usually incorporated for collection of raw information. The survey method is
advantageous because it helps to collect a great deal of information about an
individual respondent.
Field works
For interviewing the retailers & distributors went to each and every shops & outlets
where namkeens chips and other things of company was sold school, college,
hospital, Dhabas, restaurant of Hyderabad. Thus I interview about 100 retailers
5
canteen owners and the entire distributor over the entire Ghaziabad. I asked them to
help me in filling the format of questionnaires for collecting data.
Survey:
The type of survey undertaken was that of sample type keeping in consideration
the time constraint and paraphemalic, besides the viability of census survey. The
sample survey thus being taken to the right path to reach the desired destination
was carefully planed to convert of the operation by using selected samples.
In these report data is collected by means of survey. A format was made for
collecting the data in which important questions was being prepared for collecting
the data e.g. to know the market share of haldirams total demand existing in the
market whats the share of competitors .consumers preferences tastes and age
group which mainly use the products of haldirams, class of people mainly using
haldirams products. What are tools and techniques that are being used by the
company to increase the sales of company?
Statistical Tool:
The tool for obtaining the information was questionnaire. A structured
questionnaire was administered. The questionnaire was designed in the view both
major and minor objective of study.
Sampling: With the customer being unknown and given the time and resource
constraints random sample was obtained from different people.
Data completion and analysis:
After the data was collected, it was tabulated and findings of the project were
6
LITERATURE REVIEW
Jeenal Mittal :Expensive with less quantity . A typical example of Lala Company,
where a fat lala is only interested in increasing the price tag and not the quality.
This place overcharge without any reason.The Food is Ok type not that great.
The quantity is so less that even after spending Rs.200, you will get a small
portion. The bangoli sweets taste all the same with different price tags.These lalas
shall take some training lessons from Om sweets.
Rohan Mundada: I like the fact that Haldiram's is located in most of the malls of
Delhi NCR. The food is the same in all the outlets and you can always depend on
them for a quick bite. I have been here many times for a snack or the thali.
Good place. Mood for some casual and Indian dining, try Haldiram's. Sitting is
comfortable, service is prompt. Food is good, offers a great variety in the snack
section and sweets.
Jabbar: I have seen this particular outlet for as long as I can remember Gurgaon.
The food is standard. Staff is decent.
It used to get thoroughly crowded during peak hours till a while back (months
back). Haven't visited this joint in the recent past, so cannot comment.
No complains as far as the food is concerned.
The veg pasta is quite a surprise.
Pooja Vora :Just like any other halidram... this one also have the same process
of paying, collecting your order and then eating your long awaited meal. This
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place has something special to its rajkachori .. I just loved it... but the bad part
is I just loved rajkachori ( recommended) . Over the period of time I have seen
rates going up and quality down. Being specific the North Indian thali has a
lesser quantity and panner just lost its taste.. it was worst I ever had. To add to
all this dude there processing time is just really high ... It took me 35 minutes to
collect my thali.. then I was not just hungry but angry too with cold food in my
hands.
JINDAL: I have been there multiple occasion and keep returning... perfect
place for dine-in, ample sitting arrangement is available on its first floor.
Established Brand for Pure vegetarian items, Don't have Innovative items but
traditional recipe and representing with new approach. I visited the place
expecting a delightful dinner on a winter evening. I had been impressed by
bikanerwala and expected haldiram's to surpass that experience. But the place
is too damn crowded and has stooped to a very mediocre level in food
preparations. Jalebi was mediocre, pizaa was average, sarso ka saag and
makke ki roti was run of the mill. To service too many customers the outlet has
deteriorated in quality significantly. The over crowded place just kills the
mood. The food experience is not gr8.. Is it the fall of a gr8 joint.
Verendra : The good thing about this outlet of Haldirams at Sahara Mall is
that they have a sweet shop here as well. They also have one floor seating area
for the fast food they serve.I have been to the Haldirams outlet quite a few
times to get some sweets packed and I have also tried a few things from their
menu. The people on the counters are mostly confused. Things are worse on
weekends,when you are not able to find a place to sit.The food is good i.e.
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their thali, Raj kachodi, cholle bhature, idli .You may have to wait a lot on
weekends.
Rahul: Like all other Haldiram outlets this too serves delicious veg food , huge
sitting area but always crowded as near to Sarojini market.
Hygienic and tasty food- i have tried there lassi Chinese platter raj kachori chole
bhature pav bhaji Etc everything was just perfect. They serve quality food.
Bhelpuri beats burgers just as comprehensively as farsan beats
fries. Haldiram's revenues, at Rs 3,500 crore, is more than the combined revenue
of Domino's (Rs 1,733 crore) and McDonald's (Rs 1,390 crore; adding toplines
of the two separate operations in India). Or take that popular two-minute snack,
Maggi, which netted a revenue of Rs 1,200 crore; Haldiram is almost three
comtimes bigger.
only . . dealing with Western Snacks and namkeen products and not the
entire . . . range of Snacks products available.
6. Given the time limit and scope of the project Market Penetration of Haldirams.
7. Absolute sales figures obtained from the survey through retailers may be inflated.
8. The brand level penetration study is limited because the project is only dealing
with Western Snacks and namkeen products and not the entire range of Snacks
products available.
9. Absolute sales figures for competitor brands obtained from sample space of
retailers are insufficient to draw an analysis of sales performance for competitor
brands.
10
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Marketing research is "the process or set of processes that links the producers,
customers, and end users to the marketer through information information
used to identify and define marketing opportunities and problems; generate,
refine, and evaluate marketing actions; monitor marketing performance; and
improve
Preparing this project I was doing market research & sales research. It include,
total market volume that is being sold in grocery shop small shops and from
distributors and retailers shopping malls big bazaar, and others where chips and
namkeens are sold.
I have collected about all the product of Haldirams but worked basically for
chips and Namkeens segments.
I went to the retailers and saw the chips and Namkeens there I observe the
following things
Whether our product is available or not at that canteen.
If not then we saw of which company product is available.
How much sale is of that particular counter and what the sales volume that
counter may give to us.
What is the strength of that particular counter?
Has that counter so many brands of chips and Namkeens.
And if we get our product, we used to asked the sales volume, response of
consumer, delivery and thus came to know interest of retailers & consumers
If we didnt get our product we said about us, about our products, about the
margin what about margin difference, comparing the competitors product and
margin provided by them.
12
And then we made them understand the extra facilities and unique selling point
of our product and make them ready to sale our product. Thus we developed the
market for Haldirams product.
After this we saw the competitors product (quantity) and asked the strength.
We also counted the signage and a stand of all the competitors company and
Haldirams which is at that particular store.
After all I create a daily survey report and listed the total shops & canteens
available in Ghaziabad. And then analyses the data which was collected from
market. And then come to a conclusion on the basis of that analyzed data and
information. After all it becomes possible to make a meaningful and useful
report.
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THE PROCESS:
1. Defining the problem.
2. Determining research design.
3. Identify data types and sources.
4. Design data collection form and questionnaire .
5. Determine sample plan and size.
6. Collect the data .
7. Analyse and interpret the data .
8. Prepare research report
Haldirams offers a wide range of products to its customers. The product range
includes namkeens, sweets sharbats, bakery items, dairy products, chips, pappad
and ice creams. However namkeens remain the main area of focus for the group as
it contributes close to 60% of its total revenues. By specializing in the
manufacturing in the namkeen market the company has created a niche market.
The raw materials used to prepare namkeens are of best of quality and are sourced
from all over India.
The food industry in India is forever changing to suit their consumers palate,
preference and pocket. All the players in the industry thus, have to constantly
adapt to the ever-changing trends and invent and re-invent themselves to stay in
the league.
Haldirams competes on the basis of numerous factors including brand recognition
due to distinct packaging, product quality, traditional taste and authentic Indian
flavour.
Haldirams success saga is because of the pro-active thinking of making access into
the traditional, fresh homemade food and skillfully converting it into a product line
extension. With it they have busted the myth that Indian consumers will not pay
extra for western concept of packaged food and that two of the Indian Household
kitchen category.
15
Also the Supply Chain which is broken down into two categories of retail and
institutional sales is managed well by strong network of C&F, Distributors,
Wholesalers and Retailers to make the product available at remotest town of the
country.
Last but not the least, the People behind the product the local talent needs
mentioning as they have helped HaldiRam grow big.
16
17
HALDIRAM A PROFILE
HALDIRAM is a name associated with consumers for sweets and namkeens for
the past six decades in India and abroad. It made its modest start in the beginning
1941 in Bikaner in the State of Rajas than. Today the company has diversified into
snack food, sweets, syrups, biscuits and fast food. It is the leader in the Namkeens
segment with a 70% of that total share in the market.
Haldirams is a huge brand and has diversified its activities into various industries.
The one industry where it is the king right now is the namkeens industry. Hence
the project mainly focuses on studying Haldirams namkeen division, though other
areas have been briefly mentioned.
Haldirams offers a wide range of products to its customers. The product range
includes namkeens, sweets sharbats, bakery items, dairy products, chips, pappad
and ice creams. However namkeens remain the main area of focus for the group as
it contributes close to 60% of its total revenues. By specializing in the
manufacturing in the namkeen market the company has created a niche market.
The raw materials used to prepare namkeens are of best of quality and are sourced
from all over India.
The food industry in India is forever changing to suit their consumers palate,
preference and pocket. All the players in the industry thus, have to constantly
adapt to the ever-changing trends and invent and re-invent themselves to stay in
the league.
Haldirams competes on the basis of numerous factors including brand recognition
due to distinct packaging, product quality, traditional taste and authentic Indian
flavour.
18
Haldirams success saga is because of the pro-active thinking of making access into
the traditional, fresh homemade food and skillfully converting it into a product line
extension. With it they have busted the myth that Indian consumers will not pay
extra for western concept of packaged food and that two of the Indian Household
kitchen category.
The Company which is today synonymous with Indian snacks and sweet food
market started the first chapter of the saga, as a small sweet shop in Bikaner,
Rajasthan in 1935 . By 1982, the company had set up its business in Kolkata,
Nagpur & the bustling Chandni-Chowk in Delhi.
Promoted by two 1st generation entrepreneurs Mr. M.L. Agarwal & Mr. M. S.
Agarwal and backed by Board of Directors ( Mr. Pankaj, Anand, Amit, Ashish &
Umesh Agarwal) and Management Team (Dr. A.K Tyagi (Pres), P.K. Agarwal
(Consultant) , Rahul Kathuria , VK Gupta, Mr. A.K. Tyagi) , today, the Vision and
Mission of the company is to have global presence as Food & beverage company
through
Innovation
Professionalization
Expansion
Strategic Approach
and, Business Acquisition
Haldiram is on the way of its vision as today it is an ISO 9001 & HACCP certified
company and has presence all over India, 62 countries (UK, US , Germany,
Australia, UAE- to name a few) in world and top supermarkets of the world like
TESCO, SOMMERFIELD, SPINNEYS, CARREFOUR. The fact that today
19
HaldiRam exports 60 mn dollars goods and has registered 40% growth over last 5
years itself tells its success story
Haldirams success saga is because of the pro-active thinking of making access into
the traditional, fresh homemade food and skillfully converting it into a product line
extension. With it they have busted the myth that Indian consumers will not pay
extra for western concept of packaged food and that two of the Indian Household
kitchen category.
Also the Supply Chain which is broken down into two categories of retail and
institutional sales is managed well by strong network of C&F, Distributors,
Wholesalers and Retailers to make the product available at remotest town of the
country.
Last but not the least, the People behind the product the local talent needs
mentioning as they have helped HaldiRam grow big.
Today, Haldiram can proudly claim that what began as a small-time enterprise in
India is a global phenomenon now and HALDIRAMS IS WAY OF LIFE FOR
INDIANS NO MATTER WHICH COUNTRY THEY LIVE IN.
20
Present
Stock Now
Today, Haldirams is a 1735.9 cr brand that is a familiar sight on shelves across
the USA, UK and the Middle East. Non Resident Indians carry back packets of
Haldirams along with the farewells and nostalgia. And it is this name that they
look for as they scan shops for familiar scents and sights.
Presently it has four plants in and around Delhi that produce 50 tonnes of
namkeens (56 varieties), 20 tonnes of chips, papad (7 varieties) and fun food and 5
tonnes of tinned sweets (12 varieties) and soan papdi, on daily basis. Two more
production units are coming up which will not only increase capacity but also
makes it possible for us to introduce new product lines.
For over 60 years now, the firm has been unifying the palate of India. It has not
been the simplest of tasks; India speaks different taste buds to match. However,
today it is a name that has become synonymous with taste and quality not only
within India but the world over.
Today Haldirams occupies considerable shelf space at prominent supermarkets
the world over: Tesco, Summerfield, Sipneys, and Carrefore. From traditional
Indian sweets and savouries to the more international chips, cookies, nuts and
sherbets, its products are fast capturing the imagination of people making it
possible for it to aim for deep penetration in the Middle East, East Europe and
parts of North Africa.
Future
Leveraging Our Existing Equity
The firm plans to leverage its equity in the domestic and international market to
become a food corporation with not just branded products under its belt but also
restaurants, retail chains and wide portfolio that includes such diverse products as
milk-based food and noodles.
In the near future it hopes to be in places such as Algeria, Jorden, Yemen, Taiwan,
Columbia, Cyprus, Ukraine, Libya, Tunisia, Egypt, Armenia, West Indies,
Sweden, Finland, Trinidad, and Tobago.
Haldirams success saga is because of the pro-active thinking of making access
into the traditional, fresh homemade food and skilfully converting it into a product
line extension. With they have busted the myth that Indian consumers will not pay
21
extra for western concept of packaged food and that too of the Indian Household
kitchen category.
AWARDS
Haldirams bagged the prestigious INTERNATIONAL AWARD FOR FOOD &
BEVERAGES awarded by Trade Leaders Club in Barcelona, Spain in 1994.
The Group has also to its credit KASHALKAR MEMORAIL AWARD
presented by All India Food Preservers Association (Regd.) in 1996 at its Golden
Jubilee Celebration for manufacturing the best quality food products.
Hind Ratan Award.97 given by NRI Welfare Society of India
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ALL IN ONE
BOMBAY
CHANA
CHANA DAL
HALKA
FULKA
MIXTURE
ALOO
BHUJIA
BOMBAY
MIXTURE
CHANA JOR
GARAM
HARA
CHIDWA
BANANA
CHIPS
BOONDI
BHUJIA
MIXTURE
CHIDWA
PLAIN
KABLI
CHANA
BANANA
CHIPS
MASALA
BOONDI
MASALA
CORN FLAKE
MIXTURE
KAJU DAL
BIJI
BANANA
CHIPS
SALTED
BOONDI
PLAIN
DAL BIJI
KAJU
MASALA
BANANA
CHIPS
TANGY
TOMATO
BOONDI
RAITA
GHATIA
KAJU
MIXTURE
CHAIPURI
FALAHARI
MIXTURE
KAJU
SALTED
BHUJIA
CHAKOLI
FALAHARI
WAFFER
KANPURI
MIXTURE
BHUJIA
PLAIN
CHANA
CRACKER
GUJRATI
MIXTURE
KARANCHI
MIXTURE
OM PURI
NAVRATTAN
KASHMIRI
MIXTURE
PANI PURI
NIMBU
KAKHARA
BHELPURI
SAMOSA
SEM BEEJ
23
SAHI
MIXTURE
PUNJABI
TADKA
MASALA
CORIANDER
NUT MIX
KAKHARA
JEERA
MOONG
DAL
MASALA
METHI SEV
LONG SEV
KAKHARA
MASALA
MOONG
DAL MAST
MASALA
MINI BHAKAR
BADI
MADARASI
MIXTURE
KAKHARA
METHI
MOONG
DAL
CHATAK
MASALA
MOODI
MIXTURE
MASALA
TWIST
KAKHARA
PLAIN
KHATTA
MEETHA
MOONG DAL
MATHRI
BHUJIA
BHUJIA PLAIN
MOONG DAL
PANIPURI
24
Bhujia
Aloo bhujia
Khatta mitha
Navrattan
Moong dal
Panjabi tadka
All in one
Dal biji
Bombay mix
Shahi mixture
Kaju mixture
Kashmiri mixture
Chana dal
Bombay chana
Methi sev
Chilli pataka
Nimbu masala
Gujarati mixture
Madrasi mixture
Chana cracker
Kabuli chana
Long sev
Karodpati
Teekha sev
Bikaneri malai
sev
Hara chidwa
Chatpata matar
Mini bhakhar
badi
Murukku
Chakoli
Cornflakes mixture
Takatak Masala
Aloo Masala
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(Chips)
Classic Salted
(Chips)
NATKHAT
TOMATO
(Takatak)
Mast Masala
(Chips)
Cheezi Balls
(Whoopies)
Boletos
Tangy Tomato
(Chips)
Chatpata Stix
(Whoopies)
Ringos
Papri chaat
(Chips)
Heart Beat
(Whoopies)
Aloo masala
Chamcham
Kalam petha
Rasmalai
Rajbhog
White Rasbhari
Gulab jamun
Kesar Rasbhari
Kesar Gandheri
Soan papdi
ghee
vegetable ghee
Soan papdi
Soan papdi
coconut
orange
dry petha
Patisa
Soan cake
Soan halwa
Syrups :
Rose Syrup
Khus Syrup
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Orange Crush
Pineapple Crush
Lemon Crush
Mango Crush
Kala Khatta
Badam Kesaria
Thandai Kesaria
CanPacks
Bombay Mixture
Aloo Bhujia
Cornflakes Mixture
Panchrattan
Khatta Meetha
BRAND
a) Product
Haldirams products are traditional high quality Indian sweets, namkeens and
27
snack food items at a premium yet affordable price. They were the first in India to
use state-of-the-art technology for manufacturing traditional Indian snack items
thus setting quality standards and improving the shelf life of the products as well.
b) Brand
When it comes to sweets, namkeens and snack food items, Haldirams is a name
trusted across the Indian sub-continent. It is a name associated with high quality
and traditional taste.
c) Brand Name
The brand name Haldirams came from the owners forefathers and one thing is
clear, the name has been chosen on a purely personal basis. What was chosen as a
name for the company decades ago has today revolutionized the way we look at
the ethnic snack food industry.
d) Brand Core Values
Haldirams brand core values are quality, taste, variety, traditional and very Indian.
e) Brand Character
The brand character of Haldirams that distinguishes it from its main competitor
FRITO LAYS is its traditional Indian taste.
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g) Brand Position
This refers to the consumers placement of a company vis--vis its competitors.
Haldirams has also been rated as the second fastest growing FMCG Company
in India, has 70% of the total market share in the namkeens category and is
posing to be the biggest threat to the multinational giant FRITO LAYS in the
snack food market. As far as the sweets and namkeens are concerned it is the
undisputed leader in the organized sector.
Its position in terms of pricing is premium yet affordable. It enjoys top of the
mind recall and awareness in its target audience but this could very easily be
subverted if the company does not bring into place strong branding strategies
immediately.
h) Brand Positioning
Haldirams has uniquely positioned its brand. It has positioned itself as a
premium segment product available to all those who can afford it. It is in not
perceived to be cheap but does offer good value for money giving high priority
to quality and taste standardization throughout its outlets, which are suitably
located in posh areas of the city. Initially the brand catered only to the 35+
category with its positioning statement Always in good taste but lately the
company has started to target kids and teenagers as well with a hinglish
baseline Every zuban pe.
Haldirams has also gained an edge over its competitors by minimizing
promotion costs. Haldirams once was just another sweet maker but it had
moved into trained brands by improving the product quality and packaging.
Through its clever products & brilliant distribution it has moved into the star
category of brands.
j) Brand Property
29
It is the memory device, which not only reminds the consumers of the brand
name but also its core values. In case of Haldirams the brand property would
be its red and white stylized logo and its base line Every zuban pe which is
reminiscent of the fact that the brand is an established one with top of the mind
recall.
k) Brand Equity
In case of Haldirams the brand equity is its 70% holding of the entire market
for namkeens, its undisputed leadership in the sweets category and also top of
the mind recall amongst the target audiences vis--vis the competitors in the
sweets and namkeen market achieved through decades of quality and taste
control measures. The taste that Haldirams provides through its products is
very Indian and yet it maintains international quality standards.
f) Brand Personality
It is not the brand alone but the manner in which the brand presents its
characteristics. Haldirams depicts the personality of a man, who is rooted in
his tradition out of choice and not compulsion. He is very Indian in his tastes,
choices and behavior and puts a high premium on quality as well.
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SWOT ANALYSIS
Strength
1. A nationwide manufacturer and strong distribution channel
2. Strong control over distributors
3. Haldiram is the master brand in Namkeen and growing its chips.
4. Engage in proportioning through out the year.
5. Employees are very much devoted to there works
Weakness
1. Feedback system doesnt work property.
2. Proper Importance isnt gives to the retailers.
3. Low profit margin to the distributors.
4. Weak in chips segment.
5. Low profit margin to the retailers in Namkeen Segment.
Opportunity
1. Steel big empty market
2. Huge demand in the month of August to March.
Threats
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DISTRIBUTION PATTERN:
HALDIRAM
MANUFACTURING
C&F
WHOLE SELLER
RETAILER
32
END USER
33
Analyze the intrinsic long run profit attractiveness through Porters 5 force
model
A. Brand Competition
B. Industry Competition:
C. Form Competition:
Haldirams
Haldirams being the market leader offers enormous benefits to its
customers. On the basis of the consumer behavior survey, the highest
benefit that Haldirams offers is by way of hygiene and taste. Another big
strength of Haldirams, which a factor rated pretty high by the consumers,
was Packaging. By providing fresh and tight packaging Haldirams ensures
that their consumers can use it for a longer period of time. Another benefit
that Haldirams offers is the immense variety in their product line. In fact in
the namkeens segment itself Haldirams offers about 40+ varieties and
35
ensures that this benefit stays on by constantly innovating and coming out
with new types of namkeens. The best part is that they offer traditional
snacks rather than modern snacks, which go down very well with the
Indian consumer.
B. Frito Lays
Brand
36
Industry
Form
Differentiated Oligopoly
Traditional snacks like Samosa, Kachori, etc.,
Burgers, Pizzas, Salty Biscuits, Bakery Items
Generic
2) Mobile Defense
This involves the leader stretching its domain over new territories that can
serve as future centers for defense and offense. Under this defense,
Haldirams follows the Market Broadening mobile defense. The recent
establishment of their Nagpur plant shows that they are now concentrating
on the Southern region. Also their foray into the international market and
their deeper penetration into the rural market coupled with the introduction
of their new product range like syrups, pickles, etc.
3) Counteroffensive Defense:
When Haldirams had started its business there were very few other players
in the market. That brought in complacency in Haldirams as far as
advertising of its products was concerned. The popularity of Haldirams has
till date spread through the word of mouth. Now with new competitors
coming in and advertising their products aggressively Haldirams has
realized the need to advertise its own products and has lately forayed into
TV advertisement. Thus Haldirams has followed counter offensive defense
as in it has responded to the competitors attack.
c) Expanding Market Share
1) Haldirams
Over the years, Haldirams has been diversifying its product line and
entering newer markets. This has resulted in considerably expanding the
market share of Haldirams, thus also substantially increasing their
products.
2) Frito Lays
38
With regard to the namkeens segment, Frito Lays is a relatively new player
when compared to Haldirams. In fact according to the consumer behavior
survey that we had carried out, out of the 32 respondents, 29 of them
consumed Haldirams while only 21 of them consumed Haldirams. This
shows that Lays still has to go a long way if it wants to be the market
leader. Haldirams has a very strong brand loyalty. Hence the strategy
currently being adopted by Lays is that of a Market Challenger.
B. Market Challenger Strategy adopted by Frito Lays
a) Flank Attack
The strategy being adopted by Lays currently is that of a flank attack. One of
the main points of a flank attack is that the enemys weak points are a natural
target. One of the biggest weaknesses of Haldirams has been advertising.
Most of the publicity has been word of mouth for Haldirams. But Lays, being
a product of Pepsi Foods, didnt have any problem on this front and in fact has
a strong advertising campaign to back it up. Also with an extensive distribution
network, it has been able to penetrate the Indian market in areas that probably
even Haldirams has not been able too.
Share of Market, Mind and Heart
Haldirams has got the biggest share of mind market because generally it is
the first name that comes to the mind of the consumers when namkeens are
mentioned. This is re-iterated by the fact that in the consumer behavior
survey, 91% of the respondents actually consumed Haldirams as compared
to the other brands. Thus the market share of Haldirams coincides with the
mind share mainly because of the high level of market penetration and the
word of mouth publicity that the brand enjoys. Haldirams has become a
household name today because of the variety of products it offers, the taste
and the good quality of the products, innovative and packaging has also
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helped in building the brand image. Haldirams has also got the biggest
share of heart because most of the people prefer consuming Haldirams
products. A large share of heart predicts a high market share in the future.
Thus Haldirams enjoys a good share of heart and mind along with the
biggest market share. This would help Haldirams in retaining its share in
the market in the future.
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DATA INTERPRETATION
The following chart shows the distribution of the respondents according to the
age group:
A. Consumption Patterns
Do you consume Haldiram's products?
6mths - 1 y e
10%
less than 6 mt
0%
greater than
Yrs
59%
B. Brand Loyalty
Buying Roles
The Influence
10
Friends
Neighbours
Relatives
1
1
14
Family
A ds
18
Self
0
10
15
20
No. of Re spondent
On the basis of the chart above, it is evident that when it comes to buying
namkeens people tend not to get influenced by others. They rely on their own
sense of judgement to buy namkeens. However in some cases the family
members tend to influence the buying patterns of the buyer. Hence in this case
there seemsto be a vacuum when it comes to the role of the Influencer.
Because of this the respondent himself also usually plays the role of the
Decider.
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FEATURE PREFERENCE
Feature Preference(s)
No. of Respondants
30
25
20
15
10
5
0
Variety
Hygiene
Nutritional
Value
Price
Packaging
Consumers gave the highest priority to the taste of the namkeens as compared
to the other factors. Quality came in a close second on their priority list. What
came, as a surprise was that none of the respondents considered packaging as
part of their selection criteria, on which Haldirams usually lays so much
stress.
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45
46
Again when asked to rate the importance level of six factors, the results were
interesting as most of the respondents considered Packaging as only
somewhat important. Also the opinion on the price feature was divided as
some of0 them considered it being important while some others considered it
somewhat important and some even didnt find it important. The strongest
factors that influenced the buyer while purchasing namkeens were Food taste
and quality and Hygiene. The majority of the respondents rated these two
factors as being Very Important. Apart from this consumers also considered
Variety as an Important factor while buying Namkeens. Nutritional value
didnt seem to have much of an effect on the buying trends as opinion here
again seems to be divided.
Very High
3%
Very Low
0%
Low
0%
High
41%
Reasonable
56%
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Haldirams attaches a lot of value to its gift packages offered during the festive
season. However, 56% of the respondents didnt buy such packages. This
shows that the gift packages being offered dont play such an important role on
the buying behaviour of the consumer.
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The survey also sought to know as to what the consumers expect in the future
from Haldirams Namkeens and otherwise. Many creative ideas came out. With
regard to Namkeens, people are looking forward to popcorn, cheese balls,
much more variety in the wafers, banana chips, roasted nuts, etc Many of
the respondents are seeking low calorie namkeens from Haldirams and there is
also a demand for many more varieties in bhujias. The minimal nutrition
levels do not seem to be affecting the buying trends of the consumers right
now; but as people are becoming more and more health conscious, in the future
consumers might be looking forward to low calorie namkeens and snacks from
Haldirams. Apart from the Namkeens segment, the consumers in general are
looking forward to products like masalas, milk and milk related products, ice
creams, etc from Haldirams.
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80%
75%
70%
60%
60%
50%
50%
40%
40%
Series 3
30%
20%
10%
0%
18 gm
42 gm
47 gm
77 gm
50
others; 39%
quality
quality; 50%
packaging;packaging
11%
others
Others factor is also quite essential for sale of a product e.g. advertisement,
brand and other factors also occupy quite a good percentage.
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52
12
10
8
yes
no
cant say
6
4
2
0
1
ocasionally; 18%
regular
regular; 32%
parttime
parttime; 50%
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ocasionally
Taste is the major factor on which sales of a product depends .there are also
secondary factors on which also quite good share of sales depends that is
advertisements, packaging, brand and other factors.A large number of
competitors have started entering this segment which might erode the market
share of Haldirams. For example companies like Frito Lays, ITC, etc, which
is cash rich companies, can actually undercut Haldirams profits as they can
afford to reduce their prices.
As there are three concerns under the Haldirams group, the quality standards
differ substantially and any irresponsibility on the part of any one concern will
have a negative impact on all the three as they share the same brand name.
Competitors such as MTR, Tasty Bites and ITC have already entered the
western snack food market and taken the initial advantage whereas except for
potato chips, Haldirams is still considering entering this segment.
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23%
LAYS
HALDIRAM'S
ITC
10%
BIKANERWALA
OYES
OTHERS
14%
21%
17%
Itc is also a renowed brand but its performance is not up to the mark as it
spends huge money in promotion
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lays
itc
haldirams
bikano
others
Others trying their best but still much to do. They are not able to survive in
market.
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others; 19%
lays; 21%
balaji; 6%
bikanerwala; 9%
haldirams; 30%
itc; 14%
Bikanerwala still trying to capture the market and thers are also trying.
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LEARNINGS
There are no two ways about the fact that when it comes to the namkeens
segment Haldirams is way ahead of its competitors. It has a very strong brand
loyalty, which is what makes the task of its competitors even more difficult.
However with the entry of Lays, MTR into this segment and the prior presence
of Bikano in this segment the competition has really heated up and the market
share is gradually being grabbed by various players. Hence its important for
Haldirams to keep innovating and concentrating on its strengths quality and
taste in order to further consolidate its position as a market leader in the
namkeens segment.
Another thing that Haldirams has to be wary about is the immense form
competition that it faces. Namkeens is a consumable, which can be easily
substituted. There are various substitutes like salty biscuits, bakery items but
the biggest threat that it faces is the traditional snack items like samosas,
kachoris,etc. However it has already started to take steps in this direction
bringing out packaged ready-to-eat small samosas.
Another plus for Haldirams is that it has started targeting the international
market. It now doesnt face any major competition in this market and can
hence make the best of it. This long-term strategy of Haldirams has already
started yielding results.
Haldirams is a specialist when it comes to the namkeens segment, whereas for
most of it competitors like Frito Lays and MTR, namkeens is a very small
segment and they are not looking to specialize in this segment. This factor will
always help Haldirams to consolidate its position as a market leader.
Overall, the best part about this segment is that neither Haldirams nor its
competitors indulge in situations that disturb the market equilibrium. Hence
this segment is such that everyone plays their role in maintaining the market
equilibrium and in the long run this shall work out to be favorable for
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1. QUESTIONNAIRE
Name .
Age ..
Qualification .
Gender .
21-24
31-40
41-50
More than 50
No
Lays
MTR
Lehar
Bikaner
Others
No
6 month 1year
1-3 years
Q6. How would you rate the quality of Haldiram over the period of use?
Significantly better
Better
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Natural
Worse
Significantly worse
Neighbours
Relatives
Family
Ads
Self
Q9. How would you rate the following factors in order of your preference?
Variety
Hygiene
Nutritional value
Price
Packaging
Very high
Low
Reasonable
Very low
Variety
Price
Hygiene
Tatste
Q12. How would you rate the Haldirams namkeens for their nutritional value?
Minimal
Adequate
No
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Healthy
Q14. Do you think that is there any significance difference between Haldirams
products and other brands?
takatak
Chips
Whoopies
65
takatak
Chips
WhoopieS
Namkeens
yes
No
quality
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Packaging
Others.
Its packaging techniques increased the shelf life of namkeens from less than a
week to more than six months. It was also one of the first companies in India
to open a restaurant in New Delhi offering traditional Indian snack food items
such as "panipuri," "chatpapri," and so on, which catered to the needs of
hygiene conscious non-resident Indians and other foreign customers. Since the
very beginning, the brand 'Haldiram's' had been renowned for its quality
products.
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The company employed the best available technology in all its manufacturing
facilities in India. Given the increasing popularity of Haldiram's products, the
group planned to expand its operations. However, some analysts felt that
Haldiram's still had to overcome some hurdles. The company faced tough
competition not only from sweets and snack food vendors in the unorganized
market but also from domestic and international competitors like SM Foods,
Bakeman's Industries Ltd, Frito Lay India Ltd.(Frito Lay) and Britannia
Industries Ltd.
Case Details
Haldiram's had many 'firsts' to its credit. It was the first company in India to
brand 'namkeens3'. The group also pioneered new ways of packaging
namkeens. Its packaging techniques increased the shelf life of namkeens from
less than a week to more than six months.
It was also one of the first companies in India to open a restaurant in New
Delhi offering traditional Indian snack food items such as "panipuri,"
"chatpapri," and so on, which catered to the needs of hygiene conscious nonresident Indians and other foreign customers.
Since the very beginning, the brand 'Haldiram's' had been renowned for its
quality products. The company employed the best available technology in all
its manufacturing facilities in India.
Given the increasing popularity of Haldiram's products, the group planned to
expand its operations. However, some analysts felt that Haldiram's still had to
overcome some hurdles. The company faced tough competition not only from
sweets and snack food vendors in the unorganized market but also from
domestic and international competitors like SM Foods, Bakeman's Industries
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Ltd, Frito Lay India Ltd.(Frito Lay) and Britannia Industries Ltd. Moreover,
the group had to overcome internal problems as well. In the early 1990s,
because of the conflict within the Agarwals family, Haldiram's witnessed an
informal split between its three units as they started operating separately
offering similar products and sharing the same brand name.
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BIBLIOGRAPHY
http://www.google.com
http://www.mafoi.com
http://www.wikipedia.com
http://www.linkedin.com
http://www.timesofindia.com
http://www.thehindu.com
http://www.haldirams.com
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