HALDIRAM’S – A Trend Setter

BY-
BY-
ANKIT SHARMA
ANKIT SHARMA
MAYANK JAIN
MAYANK JAIN
NIKHIL KUMAR MISHRA
NIKHIL KUMAR MISHRA
PRASHANT PANDEY
PRASHANT PANDEY
RIDHI ARORA
RIDHI ARORA
SAQUIB ALI
SAQUIB ALI
Haldiram’s- an introduction
• Haldiram’s, the brand name that is always associated with
quality, product and service. It took more than six decades
to become the leading manufacturer of Indian savoury
snacks.

• Haldiram’s has been rightly termed as Taste of Tradition.

Known for its unbeatable taste in Mithais and Namkeen
segment, Haldiram is an household name now.

• Haldiram’s has grown both in domestic and international

market. Today Haldiram’s is known for matchless quality,
packaging, efficient supply chain management, distribution
network and zero impurity.
• Haldiram’s came out with different products which suited
the tastes of various ethnic and geographical groups.
History of Haldiram’s
 Started from a small shop in Bikaner in 1937 by Ganga
Bishen Agarwal, (popularly known as Haldiram).
 Bhujia sev- very popular among the residents of Bikaner.
 In 1941 the name Haldiram’s Bhujiawala was used for
the first time.
 Subsequently reach extended 1958 to Kolkata and further
to west India & never looked back.
 1983 opened shop in Chandni Chowk the main hub of
commercial centre in Delhi.
 Prime focusing was on sweets & namkeens.
 It was lead by three brothers Shri Moolchand, Shri
Satyanarain and Shri Rameshwar
The people behind the success

Manohar Shivkishan Agarwal (67), Rajendra Shiv Ratan

Aggarwal Agarwal (42) and Avin Agarwal Aggarwal
(21) chairman of Haldiram’s
India’s Food Industry- a bright future
ahead…
India is the world's second largest producer of food
next to China.
Fruits & Vegetables, Fisheries, Milk & Milk Products,
Meat & Poultry-important sub-sectors of the food
processing industry.
Indian food industry –contributing 17% of the GDP.
Growing at the rate of 13% per annum.
Huge market potential for Indian packaged food industry.
Indian packaged food industry is totally dominated by
companies like Frito and Lay, Haldiram’s Bhujiawala, and
others like Nathu’s, Bikanerwala, Nirulas, Pizza Hut etc.
Market share of Haldiram’s in Food
Processing Industry

Others
20%
Frito Lay
50%
Haldiram's
30%
Segmentation, Targeting and
Positioning
SEGMENTATION
Market segmentation: dividing market into distinct
groups with distinct needs, characteristics, or
behaviours, who might require separate products or
marketing mixes.
TYPES OF SEGMENTATION
1. Geographical segmentation
2. Demographic segmentation
3. Psychographic segmentation
4. Behavioral segmentation
1. Geographical segmentation
 Haldiram’s has its operations across India (in different
states and metros) as well as across the globe with varying
population density and climate.
1.  U.S.A. 13. New Zealand
2. U.K. 14. Japan
3.  Germany 15. Sri Lanka
4.  Spain 16. Thailand
5.  Holland 17. Singapore
6.  Switzerland 18. Philippines
7.  France 19. Nepal
8.  Italy 20. Botswana
9.  U.A.E. 21. West Indies
10. Kuwait
11. Saudi Arabia
12. Australia
2. Demographic segmentation
Variables are –
Age Occupation
Gender Education
Family size Religion
Income Race
Nationality Generation

Haldiram’s primarily target the AGE and INCOME

segments by providing their products to the target
customers at affordable prices. There are variety of
prices available for different packages.
Majority of people purchasing Haldiram’s
product are families, followed by young
students and then couples and others.
3. Psychographic segmentation
Grouping people according to attitudes, value, and
lifestyles
Activities, interests and opinions (AIO) surveys are
one tool for measuring lifestyle.
Divided buyers into different groups based on Socio-
Economic classification, Lifestyle and Personality.
The products and services offered by
Haldiram’s cater mostly to the
middle income group people.
4. Behavioral segmentation
Dividing the market groups on the basis on variables
such as-
1. Occasions- majority of Haldiram’s sale of sweets
takes place during the festive season of Rakhi, Diwali,
and Holi.
2. Benefits- the benefit of taste. The taste is same across
all Haldiram’s outlets.
3. User-status- customers are either potential users, first
time users or regular users.
TARGETING
The process of evaluating segments and focusing
marketing efforts on a country, region, or group of
people that has significant potential to respond
CHOSING A TARGET MARKETING STARTEGY
Considerations include:
Company resources
The degree of product variability
Product’s life-cycle stage
Market variability
Competitors’ marketing strategies
Target marketing strategy that
should be followed by Haldiram’s
 Anticipating consumer requirement
 Introducing new flavors in timely intervals
 Place the products near the counters to persuade
impulsive purchase
 Make the packaging appealing to the consumers
 The pack can be designed as a container which can
be used by the consumers in future with Haldiram’s
branding on it
 Never compromise on the quality and taste of the
product
POSITIONING
The way the product is defined by consumers on important
attributes - the place the product occupies in consumers’ minds
relative to competing products relative to competing products
Locating a brand in consumers’ minds over and against
competitors in terms of attributes and benefits that the
brand does and does not offer
 Positioning involves implementing our targeting.
 For example, Haldiram’s has chosen to position itself as a
maker of namkeens, sweets and fast food through its chain of
restaurants.  Haldiram’s has done a lot through its advertising to
promote itself, through huge banners at the counters of its
restaurants.
Positioning also involves developing the right
marketing mix- which includes the 4 P’s of
marketing
Haldiram’s Marketing Mix

PRODUCT
PRICING
PLACE
PROMOTION
PRODUCTS
 Wide product range (30 varieties of “namkeens” (salty
snacks) from one manufacturing unit alone!),
customized for local tastes
First Indian company to brand namkeens
High quality and hygiene standards
Companies like Haldiram’s sell more than one
product. A product mix of any company is the set of
all products and items a particular seller offers for sale.
A product mix can be classified accordance to width,
length, depth and consistency
PRODUCT PORTFOLIO
 Haldiram’s has following basic
modules :-
Restaurant lunch/dinner
Packed namkeen
Sweets
Customized products
Bakery and cookies
Drinks
Savories
Products offerings can be
divided into 4 categories-

1. Core product
Basic product that produces 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.
2. Staples
Items with lower sales volumes and no promotion.
They yield somewhat higher margins.
Haldiram’s staple products include bakery and
cookies.
3. 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.
4. 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 thid category
include their papads range, sherbets and minute
khana. These are among least promoted products but
offers higher margins to the company.
 PRICING
 Competitive prices to penetrate the unorganised market
 Prices varies according to weights and
PACK PRICE (in
type of namkeens and raw materials  WEIGHT Rs)
 Launched in multiple sizes, including 30 gms 5
30 gram packets at Rs. 5 85 gms 10
 Haldiram’s effectively lowered the
price per gram in the 200-800 gms 180 gms - 250 18-35
gms
segment where the bulk of their
400 gms - 500 40-70
consumers are, thereby ensuring higher gms
satisfaction for this market segment. 1kg 95-200
PLACE (Distribution)
 Strong network: C& F agents "distributors " retailers
(nearly 1 million)
Margins to ensure goodwill
Company-owned showrooms, online sales (region-
specific websites)
Haldirams at these
outlets sell 96 varities
of dishes and 77 varities
of sweets.
Retail outlets such as supermarkets, sweet shops,
provision stores, bakeries and ice cream parlors.
Extensive distribution network: 6 lacs outlets for the
Delhi and Nagpur
Brand pull in the market
Haldiram’s comprises of three unit one in each New
Delhi, Kolkata and Nagpur along with its operation
in Bikaner in Rajasthan
Internet marketing for consumers in India and Abroad.
India Abroad
 Margins provided to intermediaries
Product Retailer Distributor Trade
Category Margin Margin
Namkeens 6 – 8% 12- 20%

Sweets 5 – 8% 16- 22%

Wafers, Chips 5% 15%

Papads 5 – 7% 13- 15%

Trade margins ranges depending on the item.

PROMOTION
Tied with the ‘Profile Advertising’
Attractive posters, brochures and mailers
Press and outdoor media, (taste and appetite)
Hoardings, signage and posters to disseminate awareness
Punch line for Haldiram’s products is, ‘always in good
taste’. Brand Mantra : Communicated to Employees
Mailers sent to loyal customers and important corporate
clients
Retail outlets of Haldiram’s give importance to POP
displays.
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 Hut.
 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.
 To the consumers having inclination towards Indian
meals, Haldiram’s offers ready to eat high quality
readily available Indian snacks, with excellent
packaging which provides increased shelf life to its
products.
 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."
Awards received
International Food Award by the Trofeo
International Alimentacion of Barcelona, Spain
The Keshalkar Memorial Award by the All India
Food Preservers Association
The International Award for Food & Beverages by
the Trade Leaders Club in Barcelona, Spain

ALL THESE AWARDS AND ACHIEVMENTS

ENHANCED THE HALDIRAM’S POSITIO IN THE
FOOD INDUSTRY FURTHER
 HALDIRAM’S - Strengths
The company offered a wide variety of traditional
Indian sweets and snacks at competitive prices that
appealed to people belonging to different age groups.
Marketing techniques
Promotion techniques
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.
 HALDIRAM’S - Weakness
 Split in the family. Each member is working in his respective
region separately.
 This split had resulted in aggressive competition among
themselves for a higher share of domestic and international
markets.
 Haldiram's lagged behind competitors in the area of customer
service. A report in Deccan Herald said that Prabhu Shankar
Agarwal, the owner of the Kolkata unit, was arrested on
charges of manhandling customers only reiterated this
opinion. The report also mentioned that few of the company's
restaurants did not possess the minimum requirements, such
as sufficient seating arrangements and adequate parking lots.
 HALDIRAM’S - Threats

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.

Frito Lay India Ltd. (Frito Lay), one of Haldiram's

major competitors, was expanding its market share.
Instead of directly competing with the market leader
Haldiram's, the company launched innovative products in
the market and backed them with heavy publicity.
SUGGESTIONS
 Diversifying into new innovative products
 Increase the number of outlets
 Home Delivery
 Explore the possibility of opening the outlets in foreign
market
 Customer service
 Anticipating consumer requirement
 Introducing new flavours in timely intervals
 Never compromise on the quality and taste of the product
 Create an extensive advertisement campaign which will
reach out to consumers and deliver the desired message
thus re-enforcing the product into the market