Professional Documents
Culture Documents
EXECUTIVE SUMMARY
knowledge of the potential of a particular market. In addition to this, one should also
have information regarding the activities of the competitors existing in the market so
that we can plan our each activity accordingly. It is also necessary to retain the
existing customers apart from attracting the new customers. This project is on market
knowledge about Haldirams and the scope to open new retail outlets. Retailers were
surveyed to know the actual market behaviour, the factors affecting the overall market
i.e. the forces shaping it and also the market competitiveness. The project is included
as part of MMS Program and the project was undertaken in the duration from 16 th
To find out the availability of Haldirams and its competitors product at retail
outlets.
To find out the retailers problem.
To find out strengths and weaknesses of the Haldirams products.
To find out the scope for new outlets in the market.
The research type was customized and quantitative. The research was done through a
survey of retailers. We have collected the primary data through the questionnaire
which was filled by the retailers. Questions were both open and close ended. The
1
secondary data was collected from the internet. The type of sampling method used is
The data analysis has been done area wise. It gives an idea about the competitors of
Retailers opinions and response about distributor service was also analysed.
2
CHAPTER 2
INDUSTRY OVERVIEW
2.1. INTRODUCTION
India is the world's second largest producer of food next to China, and has the
potential of being the biggest with the food and agricultural sector. The total Indian
food market is valued at Rs.9.1 lakh crores. The processed food market is at Rs. 3.5
lakh crores and accounts for 9 % of the country's GDP. This with just 2 % of the
country's agricultural and food produce getting processed whereas the average is 80 %
in the developed countries and some developing ones. Against such a above backdrop,
India has adopted "Vision 2015" which aims to triple the size of food sector in 10
value addition from 20% to 35%, and a resultant increase in share in global trade from
1.6% to 3%. This would require making processed food affordable domestically and
The industry is shared by a large 42% unorganized sector, around 33% as small-scale
industries and 2 the organized sector is fairly large 25%. The Government of India has
taken many steps to give impetus to this sector, which include virtual de-licensing of
the sector, inclusion in the priority sector for lending, allowing 100 % FDI except in
alcoholic beverages and retailing, several duty and tax reliefs, financial assistance for
infrastructure building, setting up of food processing units etc. In the case of export-
oriented units, foreign investment is permitted even in case of items reserved for the
small-scale sector. In addition, the export oriented units are given a number of
3
incentives and concessions under the Export-Import Policy such as, duty free import
The main players in this Industry are Nestl India, PepsiCo India, ITC Foods, Dabur
India, Brittania, Parle products, Amul, Hindustan Unilever, Amul, Haldirams, Godrej
Foods, Kellogg's, ConAgra, Perfetti, Bharti Group, Glaxo Smithkline, Heinz and
Nissin.
Organized retail account for less than 1% of the total food sales, as compared to 72%
world average. Most of the food sales in India are from neighborhood and kirana
(grocery) stores. Because of this reason, processed food companies in India are much
larger in size than the organized retailers. In contrast, in the European Union and the
4
2.2 INDUSTRY NEWS
Harish Bhat
Small packs are everywhere. What makes them such a big success in India?
Last month, Coca-Cola launched a new product called Fanta Fun Taste'. The product,
a powder that can make the orange-flavoured soft drink, is packed in sachets, and
priced at Rs 5 .Only a few days earlier, Pepsico had brought out a 200 ml bottle of its
Small packs, priced at five, two or one rupee each, have always done well in India.
But what is surprising is their scope and spread today, cutting across diverse product
categories and brands. When I went down to my neighbourhood grocery store, I was
amazed to discover more than 50 products and brands, all available in Rs 5 versions.
5
Chocolates for Rs 5: Cadbury's 5-Star, Diary Milk, Munch, Gems, Nestle Milky Bar
Chew. The weights of these chocolate bars vary, from 9.5 to 15 grams.
Bathing soaps for Rs 5: Lux, Santoor and Lifebuoy. Weights of these bathing bars
Detergent bars for Rs 5: Wheel Activ (190 g), Rin (significantly different weight, at
115 g.)
Snacks for Rs 5: Haldiram's Bhujia Sev, mixture, and a host of other tasty local
varieties
Tea & coffee powder for Rs 5: Brooke Bond Red Label, Tata Tea, Bru, Nescafe. Tea
Shampoos for Rs 5 and below: Virtually every brand of shampoo, whether ultra-
premium or cheap, offers small packs. The most popular are priced at Rs 2 and Re 1.
Biscuits for Rs 5: Britannia Tiger, Tiger Chocolate, Sun feast Orange Cream, and a
It is interesting and educative to note that while all these small packs perform
admirably well, the reasons for their success are not the same; in fact, they vary
significantly from one product category to the other. Behind the success of each small
pack lies an important consumer insight, which is quite different for shampoos,
chocolates and bhujia sev. This article explores some key reasons for the success of
6
marketing may wish to study these reasons, and also ponder on whether there are any
Affordability
One of the main reasons for the success of small packs in several categories is their
tea many years ago, I discovered that our small packs (priced at Re 1 and Rs 2) did
extremely well in areas populated by migratory labour, such as the cotton growing
areas of Andhra Pradesh. The reason was simple: these labourers earned a daily wage,
not a weekly or monthly salary. They all drank tea, but could only allocate a rupee or
two from their daily earnings to the purchase of tea, given that they also had to buy
many other essential household requirements. Hence, they were unable to afford the
larger packs, but could easily buy these small packs, and thus relish their favourite
strong cup of chai every single day. This is an extreme example, but affordability is
Convenience
In some categories, convenience plays a big role in the success of small packs.
convenient to slip that small pack of biscuits or noodles into your handbag, where it
can sit quite comfortably until you reach home. Also, with five rupees coins available
plentifully, neither the shopkeeper nor the consumer has to fumble and hunt for
biscuits, convenience plays a big role. Please observe that this consumer insight is
quite different from affordability. Many of these consumers can afford to spend much
7
more than Rs 5 to buy large packets of cookies or toffees, yet sheer convenience leads
Travel Packs
In categories such as toothpaste, shaving cream and hair oil, small packs also do well
because they are widely used in travel kits. For travelling executives, salesmen and
families on vacation, these packs are both affordable and convenient, and in addition
they are not messy to carry or use. A large bottle of oil can sometimes spill into your
suitcase, but a sealed travel pack is always safe. An important and distinct consumer
Trial Packs
In the case of new categories and brands, small packs priced at Rs 5 or below offer
excellent reason for trial. Consumers may prudently not want to buy the larger packs
until they have reassured themselves about suitability or quality of the new offering.
Therefore, companies routinely launch small trial packs to encourage consumers to try
the brand. While you may not want to spend Rs 50 to buy a big pack of Fanta Fun
Taste' powder (who knows how it will taste, and will the kids really like it?), you may
Economy
In many modern categories such as shampoos, where penetration is still at low levels,
packs. Companies offer surprisingly attractive prices on small packs (in many cases,
the price per gram or ml is actually lower than in larger packs), primarily because they
want many more households to adopt the use of these products. Value-conscious
consumers immediately realise that there is great economy in buying the smaller
8
packs, and therefore buy them in preference to the bigger bottles, which cost more per
unit of consumption. Given that India is a hugely under-penetrated market for several
products, such distortion in pricing will continue in the years ahead, and thus provide
Single Use
In categories such as savoury snacks and noodles, a single-use pack makes great sense
to consumers. You may prefer to buy a small Rs 5 pack of Bhujia Sev or peanuts,
which can serve as an excellent accompaniment to your evening drink or hot tea. The
entire pack can be used up at a single sitting, and you don't have to find an airtight
The psychology of price points plays a very important role, particularly for the huge
Indian middle-class, which is constantly trying to make both ends meet, and
simultaneously save a little for the future. Today, a small pack priced at Re 1, Rs 2 or
Rs 5 is easily purchased, because middle-class consumers feel that these amounts are
no great skin off their wallet, also there is no guilt associated with spending this
quantum of money. For many consumers, this psychological price limit may extend
than this may not sit comfortably in their minds, even if they can actually afford the
higher expenditure. For this reason, once again, small packs do very well.
In conclusion, while small packs do very well in India, we should understand and
appreciate that there are multiple reasons for the spread of this phenomenon, which
are often quite different between products. Marketers who leverage these category-
specific consumer insights smartly will continue to fuel growth and success.
9
(This article was published in the Business Line print edition dated June 2, 2011)
Source: http://www.thehindubusinessline.com/todays-paper/tp-
brandline/article2069207.ece
10
CHAPTER 3
COMPETITORS OVERVIEW
3.1 INTRODUCTION
The Salty snacks market in India is very diverse largely comprising of an unbranded
segment which comprises of home made namkeens, mithai shops and loose
namkeens. However the branded segment has been increasing rapidly lead by the
revolution carried out by market leaders Haldiram Foods and Frito Lay-India. Other
(snack sticks), Lays (flavoured Chips), Cheetos (snack balls), Uncle Chips
2. Balaji Wafers Pvt Ltd produces readymade food items. BALAJI name is
very popular & well known in Saurashtra & Gujarat. Balaji produces
many types of food items like, potato wafers, banana wafers, mug dal,
11
3.2 NEWS ARTICLES
Perfetti forays into snacks market (PTI-New Delhi, Apr 28, 2011)
Confectionery maker Perfetti Van Melle, which sells candies like Alpenliebe and
Center Fresh, today, said it is entering into the snacks market in India, which is
Perfetti Van Melle, which does not have presence in the snacks category globally, is
for the first time testing the segment with plans to launch its brand Stop Not in India
that will compete with the likes of Kurkure from PepsiCo and Parle Agros Hippo.
We continuously look for new opportunities. Food is a growing category in India and
we would like to tap this market to expand our business, Perfetti Van India Managing
According to Suneja, the Indian salty snacks market stands at around Rs 6,000 crore
with Pepsicos Kukure, Lays and Parle Agros Hippo among others.
Perfetti Van Melle will launch Stop Not in a phase manner starting with states
Punjab and Haryana before getting into more states in the latter part of the year. At
Our strategy is to launch the product in a phased manner. We are targeting both urban
and small towns. At present, we want to get the feedback of the product, he said. The
product, which is available in two variants, has been made specially for the Indian
market and will be sold at price points of Rs 5 and Rs 10.The company achieved sales
Source:http://www.thehindubusinessline.com/industry-and-
economy/marketing/article1978552.ece
12
Pepsi takes on Haldiram & Parle with 40% cheaper new chips brand 'Lehar'
01 Jun 2011
India's over Rs 2,500-crore potato chips market could be in for a rearrangement, with
Pepsi-Co discreetly launching 'Lehar', a new potato chips brand that is 40%
With a 20g pack priced at Rs 5, the US-based snacks and soft drink maker hopes to
PepsiCo, which launched 'Lehar' potato chips two weeks ago in parts of Maharashtra
and Gujarat, is mum about its target, investments and rollout plans.
The new product is unlikely to impact Lays' market because it target consumers,
primarily the hinterland of these states, are buying chips that are cheaper than
Lays.
Both Gujarat and Maharashtra are big markets for the snacks segment, with Balaji
holding over 70% market share in Gujarat and having an equally strong
13
The company's share in the domestic potato chips market has slipped from 66% in
March 2008 to 58% this year, according to data from market research firm The
Nielsen Company . At the same time, Parle's share has grown to 5% after three
years of its product launch, while Haldiram's has increased from 3% in 2008 to
"Consumers now want variety and new tastes. They are not loyal to any particular
Also, many of these players began at the bottom of the pyramid, creating markets
On the other hand, their bigger rivals focussed on the urban market till it was
saturated, before looking towards the rural areas. "We started with one product
from Rajkot, then took it to Gujarat and then took to Rajasthan and
Maharashtra, only after we had consolidated our base in these markets and also
created enough buzz around our brand," said Balaji's founder, Chandu Virani.
"We have been sending our officials to countries such as Israel to learn more
about potato contract farming and product technology," he added. Balaji, the
second-largest player in the segment, has raised its share from 13% three years
Although most small players have been low on advertising, they have penetrating the
Companies like Parle and Haldiram have a presence across 2.5-3 million retail outlets,
14
"We are now in 10 states and are planning to go national in another two years," said
Diamond brand in 2005. The company has 4% market share as compared with
However, PepsiCo doesn't seem perturbed by the ground it has lost. A company
spokesman said.
http://www.imagesfood.com/CategoryWatch_Details.aspx?Id=6&Topic=2
COMPETITORS
15
Moong 5/20g 5/20g -- 5/35g
10/40g 10/45g -- 10/75g
Dal 32/150g 32/180g 37/200g -- --
70/350g -- -- -- --
-- -- 175/1kg -- --
Salted)
Boondi 10/40g 17/50g -- --
30/150g -- 35/200g --
Navratan -- 10/45g -- --
36/150g -- 37/200g --
Mix
Khatta 5/30g
10/45g
Meetha 24/150g
54/350g
Aloo 28/100g
50/200g
Laccha
Ratlami 5/30g
10/60g
Sev 24/150g 32/180g
Mixture 5/30g 5/22g
10/60g 10/45g
32/180g 40/200g
Soanpapdi 45/250g 45/250g 56/200g
86/500g 110/400g
Rasgulla 58/450g --
130/1kg 100/800g
Falhari 5/30g
10/40g
Chiwda 24/150g
All In One 32/150g 37/200g
70/350g 70/400g
16
CHAPTER 4
4.1. INTRODUCTION
As the ethnic foods category is growing, cash-rich companies make a beeline for a
share of the salty snacks market. Around 1,000 snack items are sold in India spanning
various tastes, forms, textures, aromas, bases, sizes, shapes and fillings. Some 300
types of savouries sell here and the overall snack product market (inclusive of
sweetmeats) is estimated at Rs.25, 000 crore. The branded salty snacks market (size:
1200 Crores) is 40% of the total market (size: 3000 Crores), is bustling nevertheless.
The branded segment is increasing at the rate of 25% per annum whereas the entire
market is increasing at the rate of 7%. In the past 2-3 years the unbranded sector has
with a vengeance. This is good news for the corporate sector, given that the past few
years have seen a perceptible shift towards the branded sector at the cost of the
unbranded segment.
Over a period spanning six and a half decades, the Haldirams Group (Haldirams)
had emerged as a household name for ready-to-eat snack foods in India. It had come a
long way since its relatively humble beginning in 1937 as a small time sweet shop in
Bikaner, in the Rajasthan state of India. In 2001, the turnover of the Haldirams was
Rs. 4 billion. The group had presence not only in India but in several countries all
over the world. Till the early 1990s, Haldirams comprised of three units, one each in
Kolkata, Nagpur and New Delhi. The Agarwals family that owned Haldirams were
17
always conscious of the need to satisfy customers in order to grow their business. The
company offered a wide variety of traditional Indian sweets and snacks at competitive
prices that appealed to people belonging to different age groups. Haldirams had many
firsts to its credit. It was the first company in India to brand namkeens. 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 non-resident Indians and other foreign
customers. Since the very beginning, the brand Haldirams had been renowned for its
quality products. The company employed the best available technology in all its
However, some analysts felt that Haldirams 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, Bakemans Industries 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, Haldirams
witnessed an informal split between its three units as they started operating separately
offering similar products and sharing the same brand name. In 1999, after a court
verdict these units started operating as three different companies with clearly defined
territories. This split had resulted in aggressive competition among themselves for a
18
4.2 BACKGROUND NOTE
sweet shop in Bikaner, a small district in Rajasthan. Bikaner had a large number of
sweet shops selling sweets as well as namkeens. Bhujia sev, a salty snack prepared
by Ganga Bishen, was very popular among the residents of Bikaner and was also
was used for the first time. In 1950, Prabhu Shankar Agarwal (Prabhu), along with his
father Rameshwar Lal Agarwal (son of Ganga Bishen), expanded the business by
establishing a small manufacturing unit for sweets and namkeens in Kolkata. The
success of this unit motivated Prabhu to upgrade its machinery to improve the quality
of its products. As demand for Haldirams products increased, it was decided to scale
manufacturing unit was set up in Nagpur in the state of Maharashtra (India). In 1983,
a retail outlet was set up in New Delhi. The outlet became very popular not only
among the Delhiites but also among tourists visiting Delhi. Haldirams was able to
achieve significant growth during the 1980s and 1990s. In 1992, a manufacturing unit
with a retail outlet attached to it was set up in the outskirts of Delhi. A year later,
Haldirams syrups and crushes were successfully launched in the Indian market. In
1995, a restaurant was opened in New Delhi. In 1997, realizing the potential of
namkeens, the company set up a manufacturing unit in Delhi exclusively for making
namkeens. To add potato products to its existing product portfolio, machinery was
imported from the US. Haldirams maintained high quality standards at every stage of
the production process. All its food items were prepared and packaged in a very
products, sharbats and ice creams to its portfolio. At the beginning of the 21st century,
19
Haldirams products reached millions of consumers not only in India, but also in
several other countries, including the US, Canada, UK, UAE, Australia, New Zealand,
Sri Lanka, Nepal, Japan and Thailand. Analysts felt that the growing popularity of
Haldirams products could be attributed to its constant focus on all the elements of the
marketing mix. An article posted on the website apeda.com quoted some of the
endeavored stress on its product quality, packaging, shelf life, competitive price with
a special emphasis on consumers satisfaction and its lingering taste is amongst the
best available in the world. In addition to these packaged products, Haldiram has its
own outlets where it sells sweets and eatables. It also has a range of restaurants in the
various tier-I and tier-II cities of the country. Haldiram's products in Delhi and the
NCR are sold under the brand name of "Haldiram", which is the original Haldiram
family. Products in the Kolkata region are sold under the brand name of "Haldiram's
Prabhuji" or "Haldiram Bhujiawala" while products in the Nagpur region are sold
under the brand name of "Haldiram's Nagpur". More than advertisements, it's the
word of mouth that has helped reach this favourite Indian Brand its current enviable
status.
Haldiram's is a member of the following food associations from India and abroad:
Association),India
20
Haldirams Food International Ltd today is recognized as Star Export House by
Commerce, India. Haldiram Bhujiawala soon became operative after setting its
factory of its time for manufacturing its sweets and namkeens was set up at Haldiram
This was followed by a chain of retail outlets and showrooms catering to the varied
tastes of all segments of society. In 1997, Haldirams forayed into milk and milk
product industry with products such as Khowa, Ghee and butter milk, the manufacture
of Extruded foods such as vermicelli and 3-D snacks. Todays Haldirams has Branch
Offices at commercial capitals like Mumbai, Bangalore and Chennai. It is only due to
the untiring efforts of the founder Chairman, Mr Shivkisan Agrawal, our dynamic
leader that Haldirams is the proud recipient of the International Food Award.
Today, Haldirams Nagpur is one of the leading players in the snack food industry
despite stiff competition from the global food giants, earning valuable foreign
exchange for our country. We have been branded as The No.1 brand in the ready-to-
eat snack Food category and as Indias Most Trusted Brand in 2003.Employing State-
of-the-art technology from Italy, Haldirams started producing high quality, ready-to-
eat snacks, savouries and sweets. From sourcing raw materials to their conversation
into finished products, everything is done as per the international norms (HACCP) of
Quality and Safety. A human touch is avoided to ensure superior hygiene. It is the
reason our products retain Freshness and Flavour. Apart from exclusive recipes and
high quality products Variety is the key reason behind the Companys popularity. Be
it Sweets or Namkeens, the Haldirams touch makes it tastier while the high-tech
21
machinery ensures that the packaging is done in a attractive way whilst maintaining
In its mission to make available Sweets, Salted Snacks, Savouries and Pappadam
range of products under the brand name MOPLEEZ covering Vermicelli, Macaroni
and 3-D Pellets using Italian Machinery. Presently we export our products to Canada,
Australia, New Zealand, Italy, Sri Lanka, United States of America, Malaysia, Poland,
Singapore, Hong Kong, Qatar, Mauritius, South Korea, South Africa, United
Kingdom, Saudi Arabia, United Arab Emirates and many more developed countries.
AWARDS
Haldirams has been the proud recipient of many awards such as the International
has recently got an ISO 9001-2000 certification and HACCP certification by DNV
22
Haldirams today has an international membership with the following associations:
MISSION
Review, Recreate and Rediscover the trend of Healthy Eating and Innovate and
VISION
Be the Trend Setter in the field of Healthy and Tasty Eating to Achieve a
Sustainable Growth this will bring about an overall upliftment of the Organization,
23
GOAL
To provide our customers Perfect Taste and Quality in the Best of Packaging
ALGERIA
SPAIN
GHANA
UK
BENIN
NORWAY
NIGERIA
ITALY
ZAMBIA
AUSTRIA
BOTSWANA
GERMAN
ZIMBABWE
POLAND
24
HUNGARY JAPAN
RUSSIA AUSTRALIA
ISRAEL Perth
Sydney
Melbourne
UAE
NEW ZEALAND
CHINA
NEPAL Christchurch
Auckland
BANGLADESH
SHRI LANKA
PAKISTAN
MALAYSIA
SINGAPORE
HONGKONG
TAIWAN
BRUNE
INDONESIA
PHILLIPINES
SOUTH KORIA
25
4.5. HALDIRAMS AND IT STAND ON GENETICALLY MODIFIED
Source: http://www.greenpeace.org/india/Global/india/graphics/2009/9/safe-food-
guide.pdf
4.6. ORGANIZATION STRUCTURE
4.7 DISTRIBUTION PROCESS
reach for its products in India as well as overseas. From the manufacturing unit, the
company's finished goods were passed on to carrying and forwarding (C&F) agents.
C&F agents passed on the products to distributors, who shipped them to retail outlets.
The Nagpur unit has 25 C&F agents and 375 distributors. C&F agents received a
10%. The retail outlets earned margins ranging from 14% to 30%. At the retail outlet
level, margins varied according to the weight of packs sold. Apart from the exclusive
showrooms owned by Haldiram's, the company offered its products through retail
outlets such as supermarkets, sweet shops, provision stores, bakeries and ice cream
parlours. The products were also available in public places such as railway stations
and bus stations that accounted for a sizeable amount of its sales.
CHAPTER 5
5.1 PRODUCTS
Haldirams offered a wide range of products to its customers. The product range
included namkeens, sweets, sharbats, bakery items, dairy products, papad and ice-
creams. However, namkeens remained the main focus area for the group contributing
created a niche market. While the Nagpur unit manufactured 51 different varieties of
namkeens, the Kolkata unit manufactured 37 and the Delhi unit 25. The raw materials
used to prepare namkeens were of best quality and were sourced from all over India.
Haldirams sought to customize its products to suit the tastes and preferences of
customers from different parts of India. It launched products, which catered to the
South Indian snack, and Chennai Mixture for south Indian customers.
Panchratan, and Premium only during the festival season in gift packs. These
measures helped Haldirams compete effectively in a market that was flooded with a
Haldirams offered its products at competitive prices in order to penetrate the huge
unorganized market of namkeens and sweets. The companys pricing strategy took
launched namkeens in small packets of 30 grams, priced as low as Rs.5. The company
also launched namkeens in five different packs with prices varying according to their
weights.
The prices also varied on the basis of the type of namkeens and the raw materials used
to manufacture it. The cost of metallized packing also had an impact on the price,
especially in the case of snack foods. The company revised the prices of its products
upwards only when there was a steep increase in the raw material costs or additional
5.3 PLACE
reach for its products in India as well as overseas. From the manufacturing unit, the
companys finished goods were passed on to carrying and forwarding (C&F) agents.
C&F agents passed on the products to distributors, who shipped them to retail outlets.
While the Delhi unit of Haldirams had 25 C&F agents and 700 distributors in India,
Haldirams also had 35 sole distributors in the international market. The Delhi and
Nagpur units together catered to 0.6 million retail outlets in India. C&F agents
received a commission of around 5%, while distributors earned margins ranging from
8% to 10%. The retail outlets earned margins ranging from 14% to 30%. At the retail
(priced at Rs.5) compared to the packs of higher weights. Apart from the exclusive
showrooms owned by Haldirams, the company offered its products through retail
outlets such as supermarkets, sweet shops, provision stores, bakeries and ice cream
parlors. The products were also available in public places such as railway stations and
Haldirams products enjoyed phenomenal goodwill and stockists competed with each
other to stock its products. Moreover, sweet shops and bakeries stocked Haldirams
products despite the fact that the companys products were competing with their own
products.
Haldirams also offered its products through the Internet. The company tied up with
indiatimes.com, a website owned by the Times of India group[1] to sell its products
over the Internet. Haldirams products could be ordered through a host of other
and channelindia.com enabled people residing abroad to send Haldirams gift packs to
These websites competed on issues such as delivery time, which varied between 48
hours to one week, delivery charges (some websites offered free delivery of products)
and value added services (like sending personal messages along with the gift packs).
5.4 PROMOTION
Haldirams product promotion had been low key until competition intensified in the
snack foods market. The company tied with Profile Advertising for promoting its
enhance the visibility of the Haldirams brand. Different varieties of posters were
The punch line for Haldirams products was, Always in good taste. Advertisements
depicting the entire range of Haldirams sweets and namkeens were published in the
print media (magazines and newspapers). These advertisements had captions such as
millions of tongues cant go wrong, What are you waiting for, Diwali? and
To increase the visibility of the Haldirams brand, the company placed its hoardings
in high traffic areas such as train stations and bus stations. Posters were designed for
individual products were developed. Captions such as yeh corn hain (this is corn),
chota samosa big mazaa (small samosa big entertainment), yeh Kashmiri mix
khoob jamega (this namkeen item will gel well) and oozing with taste (for
Rasgullas) promoted individual products. For those customers who wanted to know
more about Haldirams products, special brochures were designed which described
the products and gave information about the ingredients used to make it. Mailers were
also sent to loyal customers and important corporate clients as a token of appreciation
purchases. Haldirams used the latest technology (food items were packed in nitrogen
filled pouches) to increase the shelf life of its products. While the normal shelf life of
similar products was under a week, the shelf life of Haldirams products was about six
months. The company projected the shelf life of its products as its unique selling
proposition. Posters highlighting the shelf life of its products carried the caption six
months on the shelf and six seconds in your mouth. During festival season,
The showrooms and retail outlets of Haldirams gave importance to point of purchase
(POP) displays. Haldirams snacks were displayed on special racks, usually outside
retail outlets. The showrooms had sign boards displaying mouth-watering delicacies
with captions such as Chinese Delight, Simply South, The King of all Chats[3].
Posters containing a brief account of the history of Haldirams, along with pictures of
Haldirams also diversified into the restaurant business to cash in on its brand image.
The company established restaurants in Nagpur and Delhi. The restaurant at Nagpur
devised an innovative strategy to increase its business: It facilitated people who were
traveling by train through Nagpur station to order food from places where stockists of
Haldirams Nagpur unit were located. The customers could order for lunch/dinner by
sending a demand draft (DD) or cheque to the Nagpur unit or giving the same to
specified local distributors belonging to the Nagpur unit. Along with the DD/cheque,
customers had to provide information such as the name of the train, its likely time of
Haldirams restaurants in Delhi also used innovative ways to attract customers. The
restaurant located at Mathura road had special play area for children. To cater to
NRIs and foreign tourists, who hesitated to consume snack foods sold by the roadside
vendors since it was not prepared in a hygienic manner, the Haldirams restaurant
located in South Delhi used specially purified water to make snack foods including
pani puri and chat papri . These promotional strategies helped Haldirams to compete
effectively with local restaurant chains such as Nathus, Bikanerwala and Agarwals
and with western fast food chains such as McDonalds and Pizza Hut.
5.5. POSITIONING
The above initiatives helped Haldirams to uniquely position its brand. Haldirams
also gained an edge over its competitors by minimizing promotion costs. Appreciating
the companys efforts at building brand, an analyst said, Haldiram once was just
another sweet maker but it has moved into trained brands first by improving the
Through its clever products and brilliant distribution it had moved into the star
category of brands. Haldirams earned recognition both in India and abroad. The
Nagpur unit of Haldirams was conferred the International Food Award. By the Trofeo
The Delhi unit was awarded the Keshalkar Memorial Award by the All India Food
ethnic Indian foods in India and abroad. In 1994, the unit was awarded the
International Award for Food & Beverages by the Trade Leaders Club in Barcelona,
Spain. The unit also received the Brand Equity Award in 1998. Manoharlal Agarwal,
who played a key role in the success of the Delhi unit, was included in the eighth
Biographical Institute. Haldirams was also admitted as the member of Snack Food
Association, US.
CHAPTER 6
HALDIRAMS PRODUCTS
BIKANERI PAPAD,Nagpur
Product Detail :
in syrup.
RAJBHOG, Nagpur
in syrup.
of coconut.
Available in 250gm.
artificial flavour.
sweet. Popular with one and all for its cruncy-munchy feel
and taste. This light yellow sweet is lightly spiced with green
CHANA NUT,Nagpur
Ingredients Bengal gram, peanut oil, peanut, mix spices, salt &
citric acid.
TASTY, Nagpur
FALAHARI CHIWDA,Nagpur
delicacies.
peanut, cashew nuts, raisin, spinach, sugar, salt, red chilli , mix
carbohydrates.
following: peanut & palmoline oil), mix spices & salt chutneys
snack mix.
Ingredients-gram flour, groundnut oil, chana dal, peanut, green
Available in 85gm.
Guajarati style.
KHATTA MITHA,Nagpur
peanut oil, sago, peanut, lentils, mix spices, salt, sugar & citric
acid.
Available in 30gm, 170gm, 400gm.
Indian snacks.
lentil ,peanut oil , potato , green peas , peanuts , spinach , salt , red
extruded snack.
Available in 70gm.
3.59 g fa.
ALU BHUJIA, Nagpur
flour , peanut oil, sago, salt, mint flavour & red chilli .
BHUJIA, Nagpur
HALDIRAMS INNOVATION
Gati Ltd, the city-based express distribution and supply chain services company, has
tied up with Haldirams, which manufactures packaged snacks and sweets, to let its
customers send gift packs to their friends and relatives across the country. Launched
to mark the Diwali season, the Gati Diwali Delights lets the people to send a range of
gift packs with a price band of Rs 475 to Rs 700. Orders could be placed till October
Source: http://www.thehindubusinessline.com/todays-paper/tp-
logistics/article1639604.ece
CHAPTER 8
8.1 OUTLINE
The namkeen industries companies run mainly on the factors such as availability,
service frequency, affordability, taste and marketing. Availability plays a vital role
because purchasing power depends upon availability of that product, in this case
distributors and retailers service matters a lot. Retailing includes all the activity in
retailer or retail store is any business enterprises whose sales volume comes primarily
from retailing.
Retailers are a part of the namkeen marketing channels and perform the work of
moving goods from producers to the customers. It overcomes the time, place and
possession gap that separates goods and services from those who need or want them.
functions (physical, title, promotion) constitute a forward flow of activity from the
backward flow from customers to the company. Still others (information, negotiation,
The project is about workings from the distribution aspect of an FMCG organization,
Haldiram holds a lot of potential in affecting the demand or sales of its products
the retail outlets in a particular region and product availability. So in order to plan the
retail coverage we studied the different areas in Zone 3 (Andheri-Worli) and identified
the areas where the maximum numbers of retailers are present. We collected
satisfaction and scope for opening new outlets for Haldirams in these areas.
Managers are always curious about the position of their companys products in the
market which largely depend upon the companys goodwill, and the position of their
brand. In order to maximize the sale and profit, company must deliver outstanding
wholesalers & customers, chart out the position of the company as compared to the
competitors. It helps the organization to find out the brand being sold most by the
retailers along with their stocking and also consumer buying preferences.
The study was carried out in Zone 3(Andheri to Worli), thus the scope of the study is
RESEARCH METHODOLOGY
Field work was carried out for the Haldirams Foods International Ltd for the analysis
We worked in Zone 3.
Zone 3 includes:
Daily around 20-25 retailers were interviewed. Therefore the whole exercise took
around 20 days. Almost all the respondents were very helpful and forthcoming with
the information.
In order to achieve the given objective, data is collected from various sources for
calculating the market share of Haldirams and its competitors. Data is collected on
namkeens.
Product range of various companies namkeens in comparison to Haldirams
namkeens.
Stock availability.
Market Research to find out the namkeen potential outlets.
9.4 MARKETING SEGMENTATION
Pan Shop
General Store
Provisional Store
Bakeries
Super market
Whole seller
Kirana stores
To know the potential market, each of these shops from various segments were
surveyed individually, to find out whether they are willing to sell Haldirams or its
DATA SOURCES:
Primary as well as secondary data sources are used to make project efficient and
fruitful.
a) Observations
b) Questionnaire
a) Companys catalogues
b) Companys website
Search Instruments
A) Observations:
Careful observations of all the outlets have been done to find out the locations
B) Questionnaire:
been used to collect the information about the outlets, stock availability, stock level
etc.
CHAPTER 10
Haldirams has categorized their products into 2 divisions viz. A and B division.
All the products ranging above Rs.10 fall under the category of A division and the rest
10.1 A DIVISION
A division plays a vital role in generating sales for the company as compared to that
of B division. Out of the total sales generated approximately 60% comes through A
division. The areas surveyed in the A division were Bandra, Khar, Vile parle and
Andheri. The following graphs show an analysis of surveyed retail outlets on different
parameters.
Figure 1
The distributor service in the above areas was good. Vile parle and Andheri showed
the highest percentage of satisfaction from distributor service with 90% and 88%
while that of Khar and Bandra was fairly satisfactory with 71.42% and 60%
respectively. The reason for this poor service is the frequent change of distributors and
infrequent visit of salesman. There were certain distributors in Bandra who were
replaced without giving any prior knowledge to the retailers. In the process some
retail outlets were skipped for a certain period of time and it resulted in no supply of
stock to them. The solution for this problem is that specific distributors should be
allotted definite areas and they should work consistently with the retailers in those
areas.
Figure 2
Display of the products plays a very important role in attracting customers attention.
Without the right kind of display you will find that customers spend far too much time
searching for products and will ultimately lose interest and go elsewhere. The main
aim of successful display in retail outlets is to increase sales. When customers enter a
store they want to be able to see products displayed clearly in eye catching displays.
They want to be able to see products on the right kind of displays that are at the right
height and that are easy to get to. Displays that are too crowded and jumbled or are
not appealing to customers and this will create the wrong impression.
Haldirams products were displayed properly in all the surveyed areas. Vile parle
showing 100% display indicating that all the retail outlets from these areas displayed
products properly whereas in Bandra 75% of retail outlets surveyed showed proper
Figure 3
This pie chart shows proportion of problem faced by retailers in replacing damaged or
expired Haldirams products. All areas under study are facing the problem of
replacement. More than 75% of retail outlets surveyed from Khar, Bandra and
Vileparle are facing a problem in replacing the product whereas retail outlets in
Andheri are showing a lower percentage of replacement issues. Khar area is showing
highest percentage of replacement problem with 85.71% followed by Bandra and Vile
Parle with 65% and 70% respectively. The problem of replacement in Andheri is
Retailer satisfaction was analysed on the basis of the overall satisfaction of the
retailers. Overall satisfaction is when the retailer is completely satisfied with all the
services provided by the company to the retailers like billing, visit of the salesman
Maximum retailers in the area of Vile Parle were satisfied with Haldirams. However
very few retailers were satisfied in the area of Bandra. The percentage of retailer
satisfacstion in Andheri and Vile parle was the highest with 85.51% and 80%
respectively. This was followed by Khar with 71.42% and Bandra with as low as 25%.
Figure 5
During our study we also tried to find out the sales of Haldirams products as
compared to its competitor. Above graph shows that Haldirams products are sold
Gardens products are sold more as compared to Haldirams. Vile Parle is showing
highest percentage of sales whereas Bandra is showing the lowest percentage of sale
also quite good. However, there were certain retailers who said that the sale of both
Haldirams and Garden products were equal. Thus, Bandra shows the highest
percentage of sales when there is an equal comparison of both Haldirams and Garden
sales.
Figure 6
and its competitors available at the retail outlet. In the category of A division the main
competitor of Haldirams is Garden. The retail outlets in Vile Parle have more
product availability of Haldirams in Vile parle is 70%. However, the range of Garden
products is more in the areas of Khar &Bandra. Andheri is showing an almost equal
Figure 8
The above two graphs show the availability of product range of Haldirams in retail
outlets. Product range is calculated on the basis of available products at retail outlet
out of the total products of Haldirams. For that purpose, we made different ranges
e.g. 0 -10%, 11- 20%, 21- 30%, 31- 40%, 41-50%, 51- 60%, 61-70%, 71-80%, 81-
90%, 91-100%. We can see in the graph that products are available in different ranges
almost all areas. Products are not available in the range of 91-100% in any area under
study. In Andheri products are available in all ranges except 91-100%. In fact, only
Andheri is showing the presence of 81-90% range. Khar is showing the presence of
only three ranges 11 to 20%, 21 to 30%, 31 to 40% whereas Bandra is showing the
Schemes
distributor and increase the sale. But our study showed that distributors are not giving
All the products ranging below Rs. 10 fall under the category of B division. The order
and delivery of B division products are executed at the same time. It is done through
the ready stock vans. B division namkeen products are facing more competition as
compare to A division. Aloo bhujia and Bhujia Sev were the highest selling items in
this division. The products in the B division are sold in lots better known as Patti in
Hindi.
The areas surveyed in the B division were Vile parle and Bandra. Following graphs
The distributor service in Vile parle and Bandra was remarkable. The satisfaction
from distributor service was almost the same in both the areas. Of this Vile Parle lead
with 85.29% followed by Bandra with 85%. Satisfaction is studied on the basis of
salesman visit, margin given to retailer on products, delivery and billing of the
products. Most of the retail outlets were fairly satisfied with the distributor service.
However some retailers complained that the distributor did not visit the shop on a
regular basis. This may be the reason that this aspect did not score a full 100% in the
respective areas.
Figure 10
The display of the products was excellent in all the retail outlets. The products in the
B division are mostly displayed on detachable hangers or strings placed outside the
shop or can be relocated during bad weather inside the shop. This ensures that
customers visiting the shop will not miss the product. This will in turn attract
customers to buy the product. From the above pie chart we can see that Haldirams
products are displayed properly in all the areas under study. Vile parle and Bandra are
showing 100% display indicating that all the retail outlets surveyed had displayed the
products properly.
Figure 11
graph. The outlets surveyed in Bandra did not show any replacement problem. This
means that the distributors replaced the products as and when required. In
comparison, Vile parle showed a higher percentage of retailers facing this problem.
The percentage of outlets having an issue with replacement of products in Vile parle
was 26%.
Figure 12
Retailer satisfaction was analysed on the basis of the overall satisfaction of the
retailers as done in the case of A division. The above graph shows that the percentage
of retailer satisfaction in Vile parle and Bandra was 76.47 % and 85% respectively.
This shows that the retailers in Bandra were satisfied more with Haldirams products
Above graph shows that Haldirams is facing tremendous competition from Balaji in
B division as mentioned earlier. As per the survey in Bandra, the percentage of Balaji
products sold in that area is 61.53% whereas the percentage of sale of Haldirams
products is 38.46%. This means that Balaji is leading the market in case of B division
products in Bandra. On the other hand the percentage of Balaji products sold in Vile
Thus Haldirams enjoys a greater market share in Vile parle in spite of the
competition. Gardens products are also showing their presence in Vile parle
Study of product availability showed that Balajis products are available more at retail
outlets in the Bandra area as compared to Haldirams products in that area. The
products was 77%. This indicates that the product availability of Balaji products was
more than double of Haldirams products. On the other hand in the retail outlets
Balaji. The percentage of Balaji products available in the Vile Parle area was 32.35%
while that of Haldirams products was 58.82%. Garden products are also available in
Vile Parle.
Figure 15
compared to A division products. Product range of 0-10% is available Vile parle area
followed by range of 11-20% and 21-30%. On the other hand Bandra showed a 100%
product range. This shows that Haldirams is facing more competition in B division as
compared to A division.
Schemes:
Haldirams products are divided into two categories: Division A and Division
the only competitor for these products. Division A products are dominating
division. Products are available in almost all ranges as described in the graph.
Haldirams products are sold more compared to competitors in A division
showing their dominance in the market. This is due to the brand image which
But retailers are demanding more visit per week as the shelf life of product is
that this is very less as compared to their competitors. Garden gives 30-35%
margin on their products to the retailers. Balaji gives 20-25% margin on their
happy with the billing process. But retailers were demanding that distributors
Garden and Balaji. This is also the reason why retailers and customers prefer
other brands and not Haldirams. Haldirams 1 kg products are sold more and
Division A. In these areas products are not getting replaced on a regular basis.
of damaged and expired products only. Retailers are also demanding the
replacement of rat bite products which doesnt fit into the companys policy.
Haldirams products are displayed well in almost all retail outlets attracting
more appropriately.
Packaging of Haldirams products is very good as compared to its competitors.
They are using aluminium foil for packaging which has increased the shelf life
of the product.
Retailers were overall satisfied with Haldirams products and services in
Division A as we can see in the graphs. But satisfaction level was low in
credit.
CHAPTER 12
SWOT ANALYSIS
STRENGTHS
It has been in existence since 1937. It supplies the Traditional Namkeen. It is the first
company to brand namkeen products. It is the only National level namkeen brand,
available all over India. Over a period of time the Haldirams group has emerged as a
customer to recognize and/or recall a name, image or other mark associated with a
particular brand. Most people are willing to try a new product. If they are impressed,
they will trust the company and build a loyalty towards it. Since Haldirams is in
existence from 1937 and having a first mover advantage it has an excellent brand
awareness among the consumers and retailers. It has been successful in doing it.
to attract the consumers attention. Having attractive packaging doesnt mean you
should neglect quality either. Haldirams is known for its quality.This group also
pioneered new ways of packing namkeens. They use aluminium foils for packing. Its
Positioning means the process by which marketers try to create an image or identity in
the minds of their target market for its product, brand or organization. Haldirams has
Good taste
Good variety
Indian Sweets, Namkeens (Savouries), Salted Snacks, Vermicelli, Pasta & other ready
Due to a very good distribution channel of Haldirams, the products are available
Haldirams products are not made for any specific age group. These products can be
Higher Price
The products of Haldirams have a higher price as compared to its competitors. The
It has been made professional for the past few decades; but, the business has now
been divided between the 3 brothers, leading to a decline in the value of the company,
A push promotional strategy involves taking the product directly to the customer via
whatever means to ensure the customer is aware of your brand at the point of
purchase. The competitors of Haldirams such as Garden, Lehar, Balaji etc. are using
The distributors do not provide any schemes to the retailers. Schemes act as a
motivator to sell the products. Since schemes are provided by the competitors of
competitors.
OPPORTUNITIES
Getting an all new variety of products that can eat market share of competitors.
Proper Schemes
If schemes are introduced for the distributors as well as the retailers, it may act as a
The current profit margin provided to the retailers is approximately 15-20%. If this is
increased to 25% it will help the Haldirams products to survive in the competitive
market.
THREATS
The company faced tough competition not only from sweets and snack food vendors
in the unorganised market but also from domestic and international competitors like
SUGGESTIONS
During our study we found that many retailers were interested in schemes.
retailer to remove the old outdated stock and order new stock.
When a new product is launched samples should be provided to the retailers
product is less. This will help the company to increase the sales.
The margin give on the product should be increased to make it more
maintain good business relationship with distributor and to increase the sales.
The production of 1kg packets should be increased as their sale is more.
Timely feedback should be collected from the retailer about the distributor
service.
CHAPTER 14
cooperate.
Although measures have been taken to reduce the biasness but complete elimination
of biasness is impossible.
6) The reliability of the data to a great extent is dependent on the honesty and co-
Thus, reliability and validity of data collection through survey method is not always
without doubt.
Due to above limitations the findings may not be hundred per cent accurate.
CHAPTER 15
CONCLUSION
There is high level of awareness about Haldirams products amongst the retailers.
Schemes and credit facility should be given to the retailer to keep them interested
relationship with them and to know the new trends in the market.
From the data collected it is quite clear that while promoting any brand the
foremost considerations are good demand and good margin followed by regular
SUCCESS STORY
We were given a task to find out the gaps in the market. To find out these gaps we did
a market survey. We visited various retail outlets in various areas where Haldirams
products were not available. We convinced the retailers to sell Haldirams products.
Thus at the end of the task the number of new outlets opened was as follows:
ANNEXURE I QUESTIONNAIRE
3) Contact number
10) Feedback
The above mentioned questions were asked to the retailers of the surveyed sample
BIBLIOGRAPHY
brandline/article2069207.ece?css=print
http://www.thehindubusinessline.com/industry-and-
economy/marketing/article1978552.ece?css=print
http://www.thehindubusinessline.com/todays-paper/article1011216.ece?
css=print
http://www.thehindubusinessline.com/todays-paper/tp-
investmentworld/article1014938.ece?css=print
http://www.thehindubusinessline.com/todays-paper/tp-
brandline/article1011132.ece?css=print
http://www.thehindubusinessline.com/todays-paper/tp-
corporate/article2195193.ece?css=print
http://www.gardensnacks.com/aboutus.htm
http://www.balajiwafers.com/
http://www.thehindubusinessline.com/todays-paper/tp-
brandline/article1758255.ece?css=print
http://retailjunction.goelji.com/company-overview/haldirams.html
http://retailjunction.goelji.com/company-overview/haldiram-marketing-mix-
part-2.html
http://retailjunction.goelji.com/company-overview/haldiram-marketing-mix-
part-3.html
http://retailjunction.goelji.com/company-overview/haldiram-marketing-mix-
part-4.html
http://retailjunction.goelji.com/company-overview/haldiram-marketing-mix-
part-5.html
http://www.imagesfood.com/PrintStory.aspx?newsId=2885
http://www.imagesfood.com/CategoryWatch_Details.aspx?Id=6&Topic=2
http://www.imagesfood.com/images/Research/ReadyMade-in-india.pdf
http://www.business-standard.com/india/news/it%60s-all-infamily/264138/
http://www.greenpeace.org/india/en/news/gm-indian-food-greenpeace-flags-
the-good-the-bad/
http://mofpi.nic.in/images/volume1.pdf