haldirams2-111106092318-phpapp01

8/2/2019 haldirams2-111106092318-phpapp01

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HALDIRAM's

Submitted by:

Group 10

Aditya Lal

Ankita RaiManvi Goyal

Paridhi Modi

Rohan Gupta


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Indian Savory Snacks Industry

Savory snacks have been a part of Indian food habit, since almost ages. Theyare normally consumed at teatime.

The variety is almost mind-boggling with specialties from all regions, whichhave gained national acceptance.

The total snack industryboth organized and unorganizedis estimated tobe around Rs 4,500-5,000 crore.

It is estimated to grow around $ 1 billion.

Organized Sector45%and Unorganized Sector55%

The organized snack industry is growing at the rate of 30% and is pegged at Rs2,000 crore.


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Haldirams The Company

Haldirams began as a tiny shop in Bikaner.

By 1982, it has set up a shop in Delhi, which grew manifold over a decade byword of mouth.

Haldirams is a way of life for Indians no matter which country they live in.

Presently, a $ 4 million brand and is a familiar sight not only in India, but alsoon shelves across USA, UK, and the Middle-East.

Today, haldirams can be seen on shelf Tesco, Sipney, Carrefour etc.

Presently, company has 20% share in organized market, behind them comesPepsi Co.s Lehar Namkeen, in savory snacks industry.

It enjoys 8% market share overall, with a turnover of around 30 million.


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SWOT AnalysisHaldirams

Strength

1. Quality

2. Knowledge

3. Manpower

4. Pricing

5. Latest technology

6. Packaging

7. Trust of the consumer

Weaknesses

1. Low Advertising Budget.

2. Traditional Management Style.

3. Manufacturing process not

completely automatic.

Opportunity

1. Growing Food Industry.

2. Changes in the Consumers Taste andPreferences.

3. Increase in the Purchasing Power of

Families.

4. Prospects for Exports.

Threat

1. Availability of substitute goods.

2. Health conscious or awareness.3. Increasing competition from Indian

and MNC food companies.


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Product Profile

The product profile consist of whole range of varieties from Sweetsto Namkeens, from Sherbets to Chips, and also the Papads andMinute Khanna.

We have chosen to do our project on SAVORY SNACKS, also

known as NAMKEENS.

The product is also differentiated in terms of their weight and prices.

There are different distribution channel within a product category

with respect to their size and weight.

This is one of its kinds distribution network in India, as quoted byMr. K.K.Goyal, Country Sales Manager, Haldiram.


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The Namkeen Business

Today, haldirams has perfected and packaged over 30 varieties, whichare immensely popular all over the world.

The Namkeens business contributes to 70% of Haldirams total sales.

The major direct competitor in this segment is Bikanerwalas BikajiBhujiya, with his low priced namkeens.

In the organized sector the major MNCs running for the pie of theirbusiness is PepsiCo's Lehar Namkeen.

Other competitors are the unorganized sector of local Halwais but theycannot match the quality, production and economies of scale ofHaldirams.


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Target Market - Namkeens

The target market of Haldiram is middleaged household women.

The main customers of the savory snacks are in the age group of 30-60 andthe range of the income is around $U.S. 100 per month and above.

As women are the buyers for household needs and the deciding factor onwhat to be served to the guests, Haldiram targets them for their Namkeens.

Further, there is something for everyone in Haldirams varied product range,

such as Takatak & Whoopies for kids, Minute Khanna for those ready-to-eatfood needs, and the all famous Mithai for everyone at home.

In Mithai also, they have come with sugar free sweets for the diabetic orhealth conscious customers.


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Market coverage

Due to the legal contract within the family haldiram cannot extend to South andWest India under this brand name, as they are catered by Haldirams Nagpur.

For this reason, they are coming up with separate brand that can enter the otherpart of the Indian market. Along with this, haldiram also exports to various othercountries.

In India, haldiram covers the Northern and North-Eastern India. Presently they cansell only in the following states:

DELHI

PUNJAB

HIMACHAL PRADESH

JAMMU & KASHMIR UTTAR PRADESH

BIHAR

ASSAM

MIZORAM

NAGALAND


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Plant Location and Production Capacity

Presently, they have 4 plants in and around Delhi.

Production capacity of these plants on daily basis is as following:

50 tonnes of Namkeens, 20 tonnes of chips and other fun foods,

5 tonnes of tinned sweets and soan papadi.

Another two plants are under construction to increase the capacityto fulfill the rising export demands.

Regular laboratory checks to ensure quality standards being met.


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Basic Distribution Channel

Company

Factory

Carrying &Forward Agent

Distributors

Retail Outlets

Consumers


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Distribution Channel

At Haldiram, they have defined their distribution network withrespect to the weight and price of their various products.

This is because they have defined their retail outlets in terms ofthe kind of product they keep. For e.g., a 10 gm bhujiya packet isgenerally opted by the paan walas and very small retailers.Thus, they have a different distribution channel.

Similarly, a parallel channel of distributor is for the kiranastores in various colonies and localities where our middle class

housewife visits who prefers the less than kg packets but morethan the small chillar of 10gms. This segment of consumers issupplied through a different set of distributors who stock the200gm and 400gm packets.


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Contd..

Thirdly, the big modern trade stores like Spencer's, Vishal Mega Mart,Reliance Fresh, Subhiksha etc., generally prefer keeping the 500 gmand 1 kg packets. They have assigned exclusive distributors for them.

Fourthly, for army canteens, or BSF, CRPF canteens, there is a separate

channel of distribution followed.

Since, the price at which the products are sold to these canteens are verylow, goods are supplied through the exclusive CSD, Company SalesDepots.

These depots are located near army cants, like one in Delhi near Palam.

The company has various CSD all through out the northern and north-eastern India covering as far as Nagaland and Jammu & Kashmir.


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Contd..

The C&FA are used for distribution of the product outside Delhi, NCR.

The C&F agents work on Freight paid basis till their warehouse.

If the Warehouse is either on the first floor or the basement, then thelabor charges are born by the agent and not the company.

Within Delhi, the Distributors are located by dissecting the city intofour zones north, east, south, and west Delhi.

They pick the products from the depots and the logistics are managedby themselves. Though the company does have a say in it but leaves theresponsibility on them as distribution is more about relationships, asper Mr. Goyal.


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Contd..

Profit Margins within the distribution channel is asfollowing:

4% commission to the C&F (consignee and forwarding) agent,

7% margin to the distributor and

15 to 20% margin to the retailer.

In case of Army Canteens, a fixed price policy isfollowed which can be revised once in three years as pergovt. regulations.

The profit margin in these canteens is very negligible dueto the fixed price at which they are supplied.


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Selection of a Distributor

The first rule of selecting a distributor is NO CREDIT.

Derived from it, they view the following points of referencebefore selecting a distributor:

1. Financial Strength,

2. Reputation in the market,

3. The System followed by the distributor,

4. Positive Attitude.

Also, the distributor of Haldirams solely sells their products.They cannot keep any product of any competitor, in short theyare exclusively haldirams distributors.


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Beat chart

A beat chart is generally a visit planner that is designed by thecompany in collaboration with the distributor.

It is designed to inform the distributor that the company salesexecutives will visit the following distributor on the following days

as per the schedule for order taking and other queries.

This helps both the company as well as the distributors to work inan organized manner as each know when the company will visit

and when to expect the stock delivery.

Similarly, the company officials know which distributor to visitwhen and how the goods will be dispatched and in what lot sizes.


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Contd.. At Haldiram, they have further divided each zone in Delhi into smaller

segments.

The company sales executives meets, for e.g.,

Lajpat nagar and to G.K.1 belt on Monday

South Delhi to G.K.2 belt on Wednesday.

Similarly, within this they meet their various distributors on days assignedand take their orders that are dispatched the very next day.

There is a separate team of sales executives for the 4 Delhi zones witheach having their respective ASM and RSM.

Similar exercise is followed in other regions involving C&F agents.


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Shelf Placement

Shelf placement is an important issue in todays modern tradestores.

Though Haldiram can define the shelf space they would prefer at

these outlets, their policy is to let the retailer decide it.

This is mainly due to the following two reasons:

Firstly, such a demand does not come without a price.

Secondly, it is believed at haldiram that their product has the rightcustomer pull so in any case the retailers prefer to keep its product atvisible places.


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Transit Losses

There can be three to four types of transit losses mainly,these are:

Loss due to drenched in rain.

Damage of Carton seal. Unfilled or empty packets.

Incomplete Cartons.

Three major problems are faced in such a situation are:

Product flow,

Document flow,

After Delivery Issues.


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Claim Settlement

The procedure for claim settlement is as follows:

The moment the distributor finds damaged products it informsthe company about the quantity of packets damaged, of which

product, and their batch no.

If the distributor checks it before signing the transport slips itcan send them back with the transporter.

In case, he finds them after the transporter has left the goodsin godown, then the company issues a credit note wheninformed on phone, which the distributor can cash on the nextvisit.


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Contd..

Since, the company shares cordial relationship with itsdistributors there does not exists a very standardized procedurethat is followed.

In case the transporter has left and the damaged goods werefound afterwards the product as well as the document are send inthe next visit of the company.

The document needed in case of transit losses is delivery note

mentioning the details explained above.

But in case of C&F agents, they destroy the product after theirexpiry dates have passed without informing the company.


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THANK YOU!!

Documents

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