PROJECT REPORT ON
“MARKETING STRATEGIES OF HALDIRAM ”
MASTERS OF COMMERCE(BUSINESS MANAGEMENT)
SUBJECT- STRATEGIC MANAGEMENT
2013-2014
IN PARTIAL FULLFILLMENT OF REQUIREMENT UNDER SEMESTER BASED CREDIT AND GRADING SYSTEM FOR POST GRADUATE(PG) PROGRAM
UNDER FACULTY OF COMMERCE
SUBMITTED
BY:
PREETI FUNDE
ROLL NO 15012
PROJECT GUIDE
MRS. ROOPALI KOTEKAR
MULUND COLLEGE OF COMMERCE, S.N. ROAD, MULUND(W), MUMBAI-40080
CERTIFICATE
I, hereby certify that MISS.PREETI FUNDE, of M.Com in Business Management Part-1, Roll
No.15012 has completed project on “MARKETING STRATEGIES OF HALDIRAM” in the
academic year 2013-2014. The information submitted is true and original to the best of my
knowledge.
Place:
Date:
___________________
Signature of Project Guide
___________________Signature of Principal
____________________Signature of coordinator
____________________Signature of student
DECLARATION
I, MISS.PREETI FUNDE student of M.Com Part-1 (2013-2014) hereby declare that I have
completed the project on “MARKETING STRATEGIES OF HALDIRAM ” .I further declare
that the information imparted is true and fair to the best of my knowledge.
SIGNATURE
(MISS.PREETI FUNDE)
ROLL NO.15012
ACKNOWLEDGEMENT
I hereby express my heartiest thanks to all sources who have contributed to the making of this
project. I oblige thanks to all those who have supported, provided their valuable guidance and
helped for the accomplishment of this project. I also extent my hearty thanks to my family,
friends, our coordinator ,college teachers and all the well wishers.
I also would like to thanks my project guide MRS. ROOPALI KOTEKAR for his
guidance and timely suggestion and the information provided by him on this particular topic.
It is matter of outmost pleasure to express my indebt and deep sense of gratitude to various
person who extended their maximum help to supply the necessary information for the present
thesis, which became available on account of the most selfless cooperation.
Above all its sincere thanks to the UNIVERSITY OF MUMBAI for which this project is given
consideration and was done with outmost seriousness.
Executive summary
I have great pleasure in presenting my project to the Mumbai University, as my topic is
comparative analysis of marketing strategies of haldiram and lays. I have made sincere efforts to
make this project informative and I am sure it would justify the same
About the company
HALDIRAM–is a name associated with consumer for sweets and namkeens for the past 6
decades in India and abroad. It made its modest start in the beginning 1941 in Bikaner in the
state of Rajasthan. Today the company has diversified into snack food,sweets,syrups,biscuits &
fast food. It is the leader in the namkeens segment with 70% of that share in the market.
LAYS- In 1932, salesman Herman W. Lay opened a snack food operation and later on in 1938,
he purchased the Atlanta, Georgia potato chip manufacturer "Barrett Food Company," renaming
it "H.W. Lay & Company." Initially the business was quite on a very small scale but in 1942 Lay
introduced the first continuous potato processor, resulting in the first large-scale production of
the product. Soon the business got its shortened name “The Lay’s Company”.
The data is collected and is analysed under following heads brands, price, product etc. In analysis
I have discussed about marketing strategies of haldiram & lays and made comparison with each
other.
OBJECTIVES
1. To get the knowledge of overall functioning of Haldirams.
2. To study the behavior of the consumer with respect to attributes such as brand loyalty and come up with recommendations as to what all needs to be considered keeping the consumer in mind.
3. To study their mission and vision
4. To study how to implement their marketing strategies
5. To get the ideas of their future aims
LIMITATIONs
1. The biggest limitation in carrying out this survey is “Shortage of Time”.
2. As the size of the sample is small, so findings can not be generalized.
3. Probability of some biased opinions is also there.
4. While conducting the survey it was difficult to get information from people.
5. Another limitation was carrying out this survey was difficult because of unavailability of some data.
HALDIRAM
INTRODUCTIONOver a period spanning six and a half decades, the Haldiram's Group (Haldiram's) 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 Haldiram's was Rs 4 billion. The group had presence not
only in India but in several countries all over the world. Till the early1990s, Haldiram's
comprised of three units, one each in Kolkata, Nagpur and New Delhi.
The Agarwals family that owned Haldiram's was 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. Haldiram's 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 '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 Ltd, Frito Lay India Ltd.(Frito Lay) and Britannia Industries Ltd.
Moreover, the group had to overcome internal problems as well.
THE LEGEND
Haldiram’s is a name traditionally associated with quality and taste in sweets and namkeens for
the past six decades in India and abroad. It made its modest start way back in 1941 in Bikaner,
Rajasthan as a family run business and even today is privately owned by the Aggarwal family
with Mr. Manohar Aggarwal as the CEO of the North India region.
The brand name ‘HALDIRAM BHUJIAWALA’ was introduced during pre-partition era, which
is 1941, and has never looked back ever since. It ventured into the retail industry by opening up a
shop in1983 in Chandni Chowk, which was then the commercial hub of Delhi. The prime focus
was to serve sweets and namkeens to the direct consumers and traders.
The group comprises of three companies - HMCL, Haldiram Foods International Ltd. (Nagpur)
and Haldiram Bhujiawala Ltd., Kolkata, which share only the brand name. They have different
operational areas, with HMCL catering to the northern region. Haldiram Foods caters to the
western and southern markets and Haldiram Bhujiawala to the eastern part.
Encouraged by the tremendous response towards its products from everyone, Haldiram’s decided
to go in for up- gradation of technology, packing and production. This was made possible by the
installation of modern, sophisticated and state-of-the-art technology, plants and machinery.
Through hard work, uncompromising quality and dedicated service, Haldiram’s became a part of
every Indian family and there existed no such house that did not know of the brand or its
products, which include not just sweets and namkeens but syrups and snacks as well. Extensive
branding activities in the past decade are bearing fruits now, as the company is the undisputed
market leader in the namkeen segment of the snack food industry.
WHERE IS IT TODAY?
Haldiram’s has 70% of the total namkeen market share and is the leader in the organized
sweets market and has picked up in the snack food market of potato chips with Tak-aTak. The
company enjoys top of the mind awareness and has a loyal customer base. The company’s
exports are growing at a very positive note and the company on a daily basis registers a 2-3%
growth. The company has been registering a 15% growth in its total sales every year.
HOW DID IT GET HERE?
Haldiram’s reached its strong position in the market through strict quality and taste control
measures made possible by the international infrastructure facilities made available for
production by a visionary leader Mr. Manohar Aggarwal.
It has come a long way from its initial “halwai-shop” days and is now on the road to becoming a
corporate organization. It was the first snack food manufacturer to lay such high priority on
quality control and taste standardization. The company does not believe in getting into the
competitive rat race and is satisfied with its current status in the industry
MISSION AND VISION
MISSION
“Our consistent quality, best packaging strategy, vast market coverage and experience have
given us a cutting edge vis-à-vis our competitors. Our natural inclination to improve our
performance and quality with each passing year has taken us way ahead of our nearest
competitor. The people at Haldiram’s are very friendly and sensitive towards the complaints
from consumers and traders, which in fact are a rare occurrence”.
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, its People and the
Society.
GOAL
“To provide customers Perfect Taste and Quality in the Best of Packaging.”
HINGLISH BASELINE “EVERY ZUBAN PE”
GROWTH
Haldiram’s is growing at a rate of 40% in the international market and are confident of
maintaining the pace for the next 5 years. This has not only been because of Indians living
abroad but also because Indian food is finding a worldwide audience. To keep up with incessant
demand Haldiram’s has increased its production capacities considerably.
Presently Haldiram’s has four plants in and around Delhi that produce 50 tons of namkeens, 20
tones of chips and other fun food and 5 tones of tinned sweets and soan papdi, on a daily basis.
Two or more production units are coming up which will not only increase capacity but also make
it possible for us to introduce new product lines.
When Haldiram’s started exporting in the year 2001, our figures stood at $1.7 mn. Today
Haldiram’s exports products to the tune of $ 6.00 mn and hope to sustain 40%growth over the
next 5 years. This is why Haldiram’s has increased its production capacity to keep pace. Today,
Haldiram’s has four state of the art plants that can churn out 50 tones of quality traditional
namkeens, 20 tones of non-traditional branded products and 5 tones of sweets in a day.
EXPORTS
Haldiram’s Group had foreseen the growth potential in the fast food industry, which was
growing by leaps and bounds. ‘Namkeens’ was one of the areas which was most sought after and
the company, without lagging behind, had set up the most modern plant adjacent to the outlet at
Main Mathura Road exclusively for the manufacture of ‘Namkeens’.
This plant was set up in the year 1997 under the stewardship of Mr. Pankaj Aggarwal, a young,
dynamic entrepreneur with a flair for modern techniques of management, leadership, open vision
and result orientation. Under the leadership of Mr. Pankaj Aggarwal, who is currently also the
Managing Director of Haldiram’s Group, the packaging, quality and competitive pricing
strategies of the company have become the hall mark of Haldiram’s Namkeen and with the
installation of state-of the-art manufacturing equipment from the U.S.A, the company has also
started manufacturing potato products and has been able to increase its market share amongst
stiff competition from multinational giants such as Frito Lays.
Needless to say, the company is exporting its products to various parts of the World viz. U.S.A.,
Canada, U.K., Europe, Middle East, Far East, Moscow, Australia, New Zealand, Sri Lanka,
Nepal, Japan, Thailand, etc. and is on the threshold of penetrating others parts of the world,
thanks to the widespread Indian community in various parts of the world.
It is encouraging to note that the group is receiving positive enquires from prospective clients
aboard and is quite confident to fully meet their demand with positive attitude, personalized
service and quality products.
Continuous efforts are being initiated to make sure that Haldiram’s reaches the untapped markets
aboard and earns valuable foreign exchange for the country.
HALDIRAM’S ABROAD
Exporting to USA, UK, Australia, Middle East &Far East Countries, Germany,
Philippines, New Zealand, Nepal, etc.
Success over geographical boundaries hygienically prepared Indian cuisine :Opening
of restaurants abroad
Ethnicity angle in the marketing efforts differentiated Haldiram’s and enabled it to
sustain itself from threat of some major players in the market- Frito-Lay, McDonald’s
and Pizza
Haldiram’s initiatives helped it to uniquely position its brand among the mind’s of its
customers.
Haldiram's also gained an edge over its competitors by minimizing promotion costs.
An analyst said, "Haldiram once was just another sweet maker but it has moved into
trained brands first by improving the product quality and packaging. Through its clever
products and brilliant distribution it had moved into “the star category of brands”
STRATEGY
The strategy followed by Haldiram’s is competitive pricing and labor intensive products
that predominantly cater to Indian palette.
It follows aggressive marketing in terms of TV advertisements, print ads and kiosks of
Haldiram’s range of products at railway stations.
GROWTH PLAN
In 1992, when ‘HALDIRAM’ turned itself into a group segment, a most sophisticated
manufacturing centre cum showroom was established at Main Mathura Road, New Delhi under
the banner ‘HALDIRAM MANUFACTURING COMPANYLIMITED’ which was a runaway
success. The Haldiram group three sister concerned established at Bikaner, New Delhi and
Nagpur. All three are originated from ancestors in Bikaner, Rajasthan. Now the three concerns
operate indifferent states of India.
The New Delhi unit caters to Punjab, Haryana, Uttar Pradesh, Bihar, Jammu &Kashmir ,
Himachal Pradesh and part of Assam. The firm at New Delhi runs four firms offering different
products-
Haldiram Manufacturing Co. Ltd. : Namkeens
Haldiram Marketing Ltd. : Sweets
Haldiran Snacks (P) Ltd. : Papads
Haliram India Pvt. Ltd. :Syrups & Sharbats
The company also has three show rooms in Delhi, located at Main Mathura Road, Lajpat Nagar
and Chandni Chowk. These offer variety of fast foods as well as traditional foods.
Trust in quality is an obsession which is being enjoyed by millions of families. The quality of
salty snacks and scrumptious sweets met the international standard and speak for itself. To
sustain in competitive market, “HALDIRAM” has endeavored stress on quality, packing, shelf
life, competitive price with special emphasis on consumers satisfaction and its lingering taste is
amongst the best available in the world. Haldiram showroom has become the most sought after
one and is catering to the choice of millions to their utmost satisfaction with retention of trust
reposed and presence felt. To say the least, amongst the sweets and namkeens, we can modestly
say “you name it-we have it”.
During 1993, preparation of different varieties and flavours of syrups and crushes was
undertaken under the brand name of “HALDIRAM”. Its marketing was undertaken in the
Northern region of the country and was well received with success. Encouraged by the
overwhelming response from the lovers of “HALDIRAM’ the group decided to spread its wings
in others part of Delhi to reach the consumers more easily.
The group hence opened another Show room at Lajpat Nagar on the main road during
March,1999 which is being welcomed and appreciated by the customers of South Delhi who
have constraints to reach Matura road
TREND SETTER
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.
PRODUCT RANGE
In the mid 1990s, Haldiram's added bakery items, dairy products, sharbats and ice creams
to its portfolio.
At the beginning of the 21st century, Haldiram's 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.
To add potato products to its existing product portfolio, machinery was imported from the
US. Haldiram's maintained high quality standards at every stage of the production
process.
All its food items were prepared and packaged in a very hygienic environment.
COMPANY PROFILE
Name- Haldiram Foods International Ltd
Company Logo
Address-880, Haldiram House, Bhandara Road
City-Nagpur
State/Province-MS
Zip/Postal Code-440008
Country-India
Phone-00917122681191
Fax-00917122680218
Website-http://www.haldirams.com/
Products- - Asian Foods
- Candy & Confectionery
- Processed Food- Snacks
SWOT ANALYSIS----------- Haldiram’s
Strength-
Strong brand Packaging Lingering taste of products Innovative thinking Best technology for manufacturing Shelf life of the product
Weakness-
Too much stress on traditional Indian item
Product promotion Customer service Internal rivalry Ltd no. of outlets
Opportunity-
Expansion of outlets in class 2 cities Home delivery Youth oriented product promotion Foreign market
Threat-
Unorganised market players Organised competitors Family disputes Spurious product
MARKETING MIX
PRODUCT
Products offerings can be divided into 4 categories:-
Core product
Basic products produce high sales volumes and are highly promoted with low margins
because they are viewed as undifferentiated products. Haldiram’s core products include
their namkeens and sweets products.
Staples
Items with lower sales volumes have no promotion. They yield somewhat higher
margins. Haldiram’s staple products include bakery and cookies.
Specialties
Items with lower sales volumes but might be highly promoted. Customized gift packs,
sweets and some drinks are offered on special occasions like diwali, rakhi and holi only
and account for very sales but are highly promoted.
Convenience items
Peripheral items that sells in high volume but receives less promotions. People tend to
buy them when they buy the core products. These items carry higher margins. Some of
the products offered by Haldiram’s in this category. It includes their papads range,
sherbets and minute khana. These are among least promoted products but offers higher
margins to the company
PRICE
Haldiram’s offers its products at competitive prices in order to penetrate the hugeunorganized market of namkeens and sweets.
The company pricing strategy has taken into consideration the price consciousnature of consumers in India. Haldiram’s has launched namkeens in small packetsof 30 grams, priced as low as Rs. 5. The company also launched namkeens in 5different packs with prices varying according to their weights
The prices also vary on the basis of the type of namkeens and the rawmaterials used to manufacture it. The cost of metallized packing also has animpact on the price, especially in the case of snack foods.
The company revises the prices of its products upwards only when there is asteep increase in the raw material costs or if additional taxes are imposed.
PLACE
The Haldiram’s products are distributed all over the country and outside country also.Haldiram’s is successfully exporting its products to USA, UK, Australia, Middle East & Far East Countries, Germany, Philippines, New Zealand, Nepal, Sri Lanka, UAE,France, Spain, Italy, Holland, Japan, etc., Haldiram’s is an ISO and HACCP Certified Company and is approved by FDA, USA.
Haldiram’s has developed a strong distribution network to ensure the widest possible reach for its products in India as well as overseas. From the manufacturing unit, the company’s finished goods are passed on to the carrying & forward (C&F) agent. C&F agents passes on the products to distributors, who ship them to retail outlets. While the Delhi unit of Haldiram’s has 25 C&F agents and700 distributors in India, the Nagpur unit has 25 C&F agents and 375 distributors.Haldiram’s also has 35 sole distributors in the international market. The Delhi and Nagpur units together cater to 0.6 millions retail outlets in India.
C&F agents receive a commission of around 5% while distributors earn margins ranging from 8% to 10%. The retail outlets earn margins from 14% to30%. At retail outlet level, margins vary according to the weight of packs sold.Retailers earn more margins ranging from 25% to 30% by selling 30gms pouches(priced at Rs.5) compared to the packs of higher weights.
Apart from the exclusive showrooms owned by Haldiram’s, the company offers its products through retail outlets such as supermarkets, sweet shops, provision stores, bakeries and ice cream parlors. The products are also available in public places such as railway stations and bus stations that account for a sizeable amount of its sales.
Haldiram’s products enjoy phenomenal goodwill and stockists compete with each other to stock its products. Moreover sweet shops and bakeries stock Haldiram’s products despite the fact that the company’s products compete with their own products.
DISTRIBUTION CHANNEL STRUCTURE
HALDIRAM’S ORGANISATION
C&F
DISTRIBUTOR
RETAILER
CONSUMER
PROMOTION
Haldiram’s product promotion had been low key until competition intensified in the snack foods market. The company tied with ‘Profile Advertising’ for promoting its products. Attractive posters, brochures and mailers are designed to enhance the visibility of the Haldiram’s brand.
Different varieties of posters are designed to appeal to the masses. The punchline for Haldiram’s products was ‘Always in good taste’. Advertising depicting The showrooms and retail outlets of Haldiram’s give importance to the pointof purchase (POP) displays. Haldiram’s snacks are displayed on special racks,usually outside retail outlets. The showrooms has sign boards displaying mouth watering delicacies with captions such as ‘Chinese Delight’, ‘SimplySouth’, ‘The king of all chats.’ Posters containing a brief account of the history of Haldiram’s along with pictures of its products are also displayed at these showrooms.
Haldiram’s has also diversified into the restaurant business to cash on its brand image. The company has established 6 restaurants overall in India. The restaurant at Nagpur devised an innovative strategy to increase its business. It facilitated people who were traveling by train to order food from places where stockists of Haldiram’s, Nagpur unit were located. The customer could order for lunch/dinner by sending a demand draft or a 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 same name of the train, its likely time of arrival at Nagpur, their names and coach and seat numbers.
Haldiram’s restaurants in Delhi also use innovative ways to attract customers.The restaurants located at Mathura and Lajpat Nagar have special play area for children.
To cater to NRI’s and foreign tourists, who hesitate to consume snack foodssold by the roadside vendors since they do not prepare the foods in a hygienic manner, Haldiram’s restaurant uses specially purified water to make snack foods including‘pani puri’ &‘chat paapri’ .These promotional strategies have helped Haldiram’s to compete effectively with the local restaurant chains such as Nathu’s, Bikanerwala and Aggarwal’s and with western fast food chains such as Mc Donald’s and Pizza Hut.
Advertising Strategy
Haldiram’s advertisements have traditionally been copy heavy for various reasons anddo
not have any face, known or otherwise, attached to them. They are graphic heavyas well with
extremely vibrant use of colour. Its advertisements earlier had a matureapproach with the base
line “Always in good taste”, but of late due to a shift in targetaudience the base line of the
advertisements too has been changed to “Every zuban pe”. This year, an otherwise conservative
company, it has upped ad budgets by morethan 60% to Rs 1 crore - still a far cry though from
Lays which spends over Rs 30crore annually. But these ads were for what it calls its `new
generation products' -chips, funchees, masala balls and Taka-tak.
a.Visual (Typography, Layout)
Haldiram’s typography contains a very stylized and sophisticated font style, whichconveys
the image and the personality of the
brand.The layout is picture heavy with extensive use of colour so as to make theadvertisemen
t attractive and tempting, which is true of any food advertisement.
b.Verbal (Copy Style)
Initial advertising of the brand contained long copy but this phenomenon has
recentlychanged as the company is now going in for a very precise and clear form
of communication in an informal manner.
c.Attitudinal
Haldiram’s advertisements are not attitudinal in nature but are rather formal andmature.
This trend is steadily converting into a more informal, relaxed and ‘hinglish’style.
POSITIONING
The above initiatives helped Haldiram’s to uniquely position its brand. Haldiram’s also gained an
edge over its competitors by minimizing promotion costs. Appreciating the company’s 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 product quality and packaging.
Through its clever products and brilliant distribution it had moved into the star category of
brands.”Haldiram’s earned recognition both in India and abroad. The Nagpur unit of Haldiram’s
was conferred the International Food Award. By the Trofeo International Alimentacion of
Barcelona, Spain for having maintained high standards in quality and hygiene, at its
manufacturing unit.
The Delhi unit was awarded the Keshalkar Memorial Award by the All India Food Preservers
Association in the mid 1980s in recognition of its efforts for popularizing 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 edition of Distinguished Leadership by the Board of Registrars of The
American Biographical Institute. Haldiram’s was also admitted as the member of Snack Food
Association, US
CUSTOMER VALUE ANALYSISHaldiram’s being the market leader offers enormous benefits to its customers. On the basis of the
consumer behavior survey, the highest benefit that Haldiram’s offers is byway of hygiene and
taste. Another big strength of Haldiram’s, which a factor rated pretty high by the consumers, was
Packaging. By providing fresh and tight packaging Haldiram’s ensures that their consumers can
use it for a longer period of time. Another benefit that Haldiram’s offers are the immense variety
in their product line. In fact in the namkeens segment itself Haldiram’s offers about 40+ varieties
and 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.
TYPES OF COMPETITIVE STRATEGIESFrom the information based on the consumer survey, out of 32 people 28 consumed Haldiram’s
products. Since 91% of responses indicate consumption of Haldiram’s products, we conclude
that Haldiram’s is the market leader in the Namkeens segment. In the consumer survey that we
had done, hygiene and taste had come out as the highest priority factors that influence the buying
behavior. Haldiram’s adopts the following market leader strategies.
A. MARKET LEADER STRATEGIES ADOPTED BY HALDIRAM’S
a) Increasing the total market share
Being a market leader, one of Haldiram’s strategies has been to solicit new users for their
products. They have done this by targeting the NRI’s living abroad and exporting
their namkeens there. This in turn has also helped create awareness about their product
among the non-NRI’s abroad. Its foray into the foreign markets has been carefully
strategized as in the customization of its products. Apart from this, they have also
penetrated the rural markets quiet effectively by bringing out their products in small,
affordable packets. All these new markets have helped consolidate Haldiram’s position as
a market leader.
b)Defending Market Share:
To protect its position as market leader, Haldiram’s makes use of two defense strategies:
Position Defense and Mobile Defense.
1) Position Defense
Haldiram’s has built for itself quite a superior brand image, making it extremely difficult
for its competitors to break this image. Thus the competitors have to put in extra efforts
to create a brand much more superior than Haldiram’s.
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, Haldiram’s 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) Counter offensive Defense:
When Haldiram’s had started its business there were very few other players in the
market. That brought in complacency in Haldiram’s as far as advertising of its products
was concerned. The popularity of Haldiram’s has till date spread through the word of
mouth. Now with new competitors coming in and advertising their products aggressively
Haldiram’s has realized the need to advertise its own products and has lately forayed into
TV advertisement. Thus Haldiram’s has followed counter offensive defense as in it has
responded to the competitors attack.
c)Expanding Market Share
Over the years, Haldiram’s has been diversifying its product line and entering newer
markets. This has resulted in considerably expanding the market share of Haldiram’s,
thus also substantially increasing their products.
d)Share of Market, Mind and Heart
Haldiram’s 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
reiterated by the fact that in the consumer behavior survey, 91% of the respondents
actually consumed Haldiram’s as compared to the other brands. Thus the market share of
Haldiram’s coincides with the mind share mainly because of the high level of market
penetration and the word of mouth publicity that the brand enjoys. Haldiram’s 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 helped in building the
brand image. Haldiram’s has also got the biggest share of heart because most of the
people prefer consuming Haldiram’s products. A large share of heart predicts a high
market share in the future. Thus Haldiram’s enjoys a good share of heart and mind along
with the biggest market share. This would help Haldiram’s in retaining its share in the
market in the future.
B. PUSH AND PULL STRATEGY
Haldiram has used both of above mentioned strategies to increase its sales and become a
dominant player in the market; however it has always been more inclined towards push strategy.
PUSH
Push can be defined as promotional strategy that makes use of a company’s sales force and trade
promotion activities to create consumer demand for a product.
The producer promotes the product to wholesalers, the wholesalers promote it to retailers and the
retailers promote it to consumers.
Haldiram’s developed a strong distribution network to ensure the widest possible 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.
Apart from the exclusive showrooms owned by Haldiram’s the company also 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
bus stations that accounted for a sizeable amount of its sales.
Haldiram’s products enjoyed phenomenal goodwill and stockists competed with each other to
stock its products. Moreover, sweet shops and bakeries stocked Haldiram’s products despite the
fact that the company’s products were competing with their own products.
Halidram’s also offered its products through the internet. The company tied up with
indiatimes.com, a website owned by the Times Of India group to sell its products over the
internet. Haldiram’s products could be ordered through a host of other websites in India and
abroad. Gifts toindia.com, giftssmashhits.com, tohfatoindia.com and channelindia.com enabled
people residing abroad to send Haldiram’s gifts to India. Region-specific websites enabled
people to send gifts to specified regions. These include indiamart.com (Delhi and surrounding
areas), mumbaiflowergifts.com (Mumbai), and chennaiflowersgifts.com (Chennai and other parts
of Tamil Nadu). 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).
PULL
Pull is a strategy that requires high spending on advertising and consumer promotion to build up
consumer demand for a product.
If the strategy is successful, consumers will ask their retailers for the product, the retailers will
ask the wholesalers, and the wholesalers will ask the producers.
Haldiram’s product promotion had been low key until competition intensified in the snack foods
market. The company tied with ‘profile advertising’ for promoting its products. Consequently,
attractive posters, brochures and mailers were designed to enhance the visibility of the
Halidram’s brand.
Different varieties of posters were designed to appeal to the masses. The punch line for
haldiram’s products was, ‘Always in good taste’. Advertisements depicting the entire range of
haldiram’s sweets and namkeens were published in the print media (magazines and newspapers).
These advertisements had captions such as ‘millions of tongues can’t go wrong’, ‘what are you
waiting for, Diwali ?’ and ‘Keeping your taste buds on their toes’.
To increase the visibility of the haldiram’s brand, the company placed its hoardings in high
traffic areas such as train stations and bus stations. Posters were designed for display on public
transport vehicles such as buses, and hoardings, focused on 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’ (for rasgullas) promoted individual products. To increase the visibility of the
Haldiram’s brand, the company placed its hoardings in high traffic ares such as train stations and
bus stations. Posters were designed for display on public transport vehicles such as buses and
hoardings.
DATA COLLECTION AND ANALYSIS
CONSUMER BEHAVIOUR ANALYSIS
Ever since the Indian consumer started showing an interest in the branded and packaged
Namkeens, there has been a spurt in the number of players in this segment.
Haldiram’s is the undisputedleader in this segment. But today the consumers have a lot of option
s and variety to choose from and so a consumer survey is imperative to study the buying trends
and patterns.
The objectives of the undertaken study are to analyze:-
The most favorable choice of namkeens
Factors influencing buying behavior
Type of Buying behavior
Brand loyalty
Substitutability of the product
Future expectations of the buyers
CONCLUSION
Haldiram is a renowned name in branded Indian packaged food industry . Company is a leading
player in India and also reaches out to its patrons across the globe.The company has been
growing at a phenomenal rate and has achieved great success due to its high quality and tasty
packaged Indian snacks and namkeens.
The market is clogged with dominant players such as Frito-lay India, Pepsico’s snack foods arm,
which has almost brought in a snack food retailer Bikanerwala Foods Pvt Ltd etc. Even the dairy
major mother dairy has a presence in the category. With the entry of companies such as ITC &
HLL into this industry ,it is getting tough for companies such as Haldiram’s who till now have
not paid serious attention to its branding activities
RECOMMENDATION
Haldiram ‘s should aim at constructing a comprehensive media mix.
It could venture into corporate tie-ups at its various outlets.
Set up mini outlets inside the multinational office complexes.
Cash in on the call center wave and have tie ups with business process outsourcing
companies.
Conduct road shows on various campuses nation wide
Whatever tools and method the company chooses to employ,interactive communication should
be given high priority.
BIBLIOGRAPHY
Book material
Marketing Management by Philip Kotler
Sales and Distribution Management by Tapan K panda & Sunil Sahadev
WEBLIOGRAPHY
www.indianfoodindustry.net
www.haldiram.com
www.haldiramsusa.com
www.samratnamkeen.com
The Hindu (www.hinduonnet.com)
Times news Network (www.economictimes.indiatimes.com)