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)