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CHAPTER 1

EXECUTIVE SUMMARY

In todays competitive world it is essential for any organization to have a good

knowledge of the potential of a particular market. In addition to this, one should also

have information regarding the activities of the competitors existing in the market so

that we can plan our each activity accordingly. It is also necessary to retain the

existing customers apart from attracting the new customers. This project is on market

research of Haldirams and its competitors product undertaken to get in depth

knowledge about Haldirams and the scope to open new retail outlets. Retailers were

surveyed to know the actual market behaviour, the factors affecting the overall market

i.e. the forces shaping it and also the market competitiveness. The project is included

as part of MMS Program and the project was undertaken in the duration from 16 th

May to 30th June. Some of the objectives of the project were:

To find out the availability of Haldirams and its competitors product at retail

outlets.
To find out the retailers problem.
To find out strengths and weaknesses of the Haldirams products.
To find out the scope for new outlets in the market.

The research type was customized and quantitative. The research was done through a

survey of retailers. We have collected the primary data through the questionnaire

which was filled by the retailers. Questions were both open and close ended. The

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secondary data was collected from the internet. The type of sampling method used is

simple random sampling.

The data analysis has been done area wise. It gives an idea about the competitors of

Haldirams products. Further, it gives information regarding their market share.

Retailers opinions and response about distributor service was also analysed.

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CHAPTER 2

INDUSTRY OVERVIEW

2.1. INTRODUCTION

India is the world's second largest producer of food next to China, and has the

potential of being the biggest with the food and agricultural sector. The total Indian

food market is valued at Rs.9.1 lakh crores. The processed food market is at Rs. 3.5

lakh crores and accounts for 9 % of the country's GDP. This with just 2 % of the

country's agricultural and food produce getting processed whereas the average is 80 %

in the developed countries and some developing ones. Against such a above backdrop,

India has adopted "Vision 2015" which aims to triple the size of food sector in 10

years time by increasing the level of processing of perishables from 6% to 20%,

value addition from 20% to 35%, and a resultant increase in share in global trade from

1.6% to 3%. This would require making processed food affordable domestically and

competitive globally. An investment of about Rs. 110,000 crores is envisaged in the

next ten years.

The industry is shared by a large 42% unorganized sector, around 33% as small-scale

industries and 2 the organized sector is fairly large 25%. The Government of India has

taken many steps to give impetus to this sector, which include virtual de-licensing of

the sector, inclusion in the priority sector for lending, allowing 100 % FDI except in

alcoholic beverages and retailing, several duty and tax reliefs, financial assistance for

infrastructure building, setting up of food processing units etc. In the case of export-

oriented units, foreign investment is permitted even in case of items reserved for the

small-scale sector. In addition, the export oriented units are given a number of

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incentives and concessions under the Export-Import Policy such as, duty free import

of capital goods, raw materials and intermediates.

The main players in this Industry are Nestl India, PepsiCo India, ITC Foods, Dabur

India, Brittania, Parle products, Amul, Hindustan Unilever, Amul, Haldirams, Godrej

Foods, Kellogg's, ConAgra, Perfetti, Bharti Group, Glaxo Smithkline, Heinz and

Nissin.

Organized retail account for less than 1% of the total food sales, as compared to 72%

world average. Most of the food sales in India are from neighborhood and kirana

(grocery) stores. Because of this reason, processed food companies in India are much

larger in size than the organized retailers. In contrast, in the European Union and the

USA, the retailers are larger in scale.

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2.2 INDUSTRY NEWS

All for Rupees Five

Harish Bhat

Small packs are everywhere. What makes them such a big success in India?

Travel light: Rs 5 packs all. Bijoy Ghosh

Last month, Coca-Cola launched a new product called Fanta Fun Taste'. The product,

a powder that can make the orange-flavoured soft drink, is packed in sachets, and

priced at Rs 5 .Only a few days earlier, Pepsico had brought out a 200 ml bottle of its

popular drink, Nimbooz'. Once again, this was priced at Rs 5.

Small packs, priced at five, two or one rupee each, have always done well in India.

But what is surprising is their scope and spread today, cutting across diverse product

categories and brands. When I went down to my neighbourhood grocery store, I was

amazed to discover more than 50 products and brands, all available in Rs 5 versions.

Here is an illustrative list:

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Chocolates for Rs 5: Cadbury's 5-Star, Diary Milk, Munch, Gems, Nestle Milky Bar

Chew. The weights of these chocolate bars vary, from 9.5 to 15 grams.

Bathing soaps for Rs 5: Lux, Santoor and Lifebuoy. Weights of these bathing bars

vary from 30 to 40 gm., but the price point is identical.

Detergent bars for Rs 5: Wheel Activ (190 g), Rin (significantly different weight, at

115 g.)

Snacks for Rs 5: Haldiram's Bhujia Sev, mixture, and a host of other tasty local

varieties

Tea & coffee powder for Rs 5: Brooke Bond Red Label, Tata Tea, Bru, Nescafe. Tea

is also available in Re 1 and Rs 2 sachets.

Shampoos for Rs 5 and below: Virtually every brand of shampoo, whether ultra-

premium or cheap, offers small packs. The most popular are priced at Rs 2 and Re 1.

Noodles for Rs 5: Maggi offers a 40 gm. pack at Rs 5, which (according to my

neighbourhood shopkeeper) is flying off the shelves.

Biscuits for Rs 5: Britannia Tiger, Tiger Chocolate, Sun feast Orange Cream, and a

host of other varieties.

It is interesting and educative to note that while all these small packs perform

admirably well, the reasons for their success are not the same; in fact, they vary

significantly from one product category to the other. Behind the success of each small

pack lies an important consumer insight, which is quite different for shampoos,

chocolates and bhujia sev. This article explores some key reasons for the success of

small consumer packs typically, packs priced at Rs 5 and below. Students of

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marketing may wish to study these reasons, and also ponder on whether there are any

other insights that should be explored.

Affordability

One of the main reasons for the success of small packs in several categories is their

affordability to specific consumer segments. For instance, while marketing brands of

tea many years ago, I discovered that our small packs (priced at Re 1 and Rs 2) did

extremely well in areas populated by migratory labour, such as the cotton growing

areas of Andhra Pradesh. The reason was simple: these labourers earned a daily wage,

not a weekly or monthly salary. They all drank tea, but could only allocate a rupee or

two from their daily earnings to the purchase of tea, given that they also had to buy

many other essential household requirements. Hence, they were unable to afford the

larger packs, but could easily buy these small packs, and thus relish their favourite

strong cup of chai every single day. This is an extreme example, but affordability is

relevant in many ways to several consumer groups.

Convenience

In some categories, convenience plays a big role in the success of small packs.

Mothers find it convenient to give their children Rs 5 to buy a chocolate. It is also

convenient to slip that small pack of biscuits or noodles into your handbag, where it

can sit quite comfortably until you reach home. Also, with five rupees coins available

plentifully, neither the shopkeeper nor the consumer has to fumble and hunt for

change, which is a big convenience in itself. Therefore, for many indulgence

categories which involve on-the-spot impulse purchase, such as chocolates or cream

biscuits, convenience plays a big role. Please observe that this consumer insight is

quite different from affordability. Many of these consumers can afford to spend much

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more than Rs 5 to buy large packets of cookies or toffees, yet sheer convenience leads

them to buy the small packs.

Travel Packs

In categories such as toothpaste, shaving cream and hair oil, small packs also do well

because they are widely used in travel kits. For travelling executives, salesmen and

families on vacation, these packs are both affordable and convenient, and in addition

they are not messy to carry or use. A large bottle of oil can sometimes spill into your

suitcase, but a sealed travel pack is always safe. An important and distinct consumer

need that is met by small packs.

Trial Packs

In the case of new categories and brands, small packs priced at Rs 5 or below offer

excellent reason for trial. Consumers may prudently not want to buy the larger packs

until they have reassured themselves about suitability or quality of the new offering.

Therefore, companies routinely launch small trial packs to encourage consumers to try

the brand. While you may not want to spend Rs 50 to buy a big pack of Fanta Fun

Taste' powder (who knows how it will taste, and will the kids really like it?), you may

be quite willing to spend Rs 5 to try out the small pack.

Economy

In many modern categories such as shampoos, where penetration is still at low levels,

the Re 1 or Rs 2 packs are deliberately priced economically compared to the larger

packs. Companies offer surprisingly attractive prices on small packs (in many cases,

the price per gram or ml is actually lower than in larger packs), primarily because they

want many more households to adopt the use of these products. Value-conscious

consumers immediately realise that there is great economy in buying the smaller

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packs, and therefore buy them in preference to the bigger bottles, which cost more per

unit of consumption. Given that India is a hugely under-penetrated market for several

products, such distortion in pricing will continue in the years ahead, and thus provide

one more good reason for small packs to sell well.

Single Use

In categories such as savoury snacks and noodles, a single-use pack makes great sense

to consumers. You may prefer to buy a small Rs 5 pack of Bhujia Sev or peanuts,

which can serve as an excellent accompaniment to your evening drink or hot tea. The

entire pack can be used up at a single sitting, and you don't have to find an airtight

vessel or box to store the remaining quantity.

Psychological price point

The psychology of price points plays a very important role, particularly for the huge

Indian middle-class, which is constantly trying to make both ends meet, and

simultaneously save a little for the future. Today, a small pack priced at Re 1, Rs 2 or

Rs 5 is easily purchased, because middle-class consumers feel that these amounts are

no great skin off their wallet, also there is no guilt associated with spending this

quantum of money. For many consumers, this psychological price limit may extend

up to Rs 10 per packet of biscuits or chocolates. However, spending a higher amount

than this may not sit comfortably in their minds, even if they can actually afford the

higher expenditure. For this reason, once again, small packs do very well.

In conclusion, while small packs do very well in India, we should understand and

appreciate that there are multiple reasons for the spread of this phenomenon, which

are often quite different between products. Marketers who leverage these category-

specific consumer insights smartly will continue to fuel growth and success.

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(This article was published in the Business Line print edition dated June 2, 2011)

Source: http://www.thehindubusinessline.com/todays-paper/tp-

brandline/article2069207.ece

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CHAPTER 3

COMPETITORS OVERVIEW

3.1 INTRODUCTION

The Salty snacks market in India is very diverse largely comprising of an unbranded

segment which comprises of home made namkeens, mithai shops and loose

namkeens. However the branded segment has been increasing rapidly lead by the

revolution carried out by market leaders Haldiram Foods and Frito Lay-India. Other

major players in the branded market include:

1. Frito-Lay India: Its products included Leher Namkeens, Leher, Kurkure

(snack sticks), Lays (flavoured Chips), Cheetos (snack balls), Uncle Chips

and Nutyumz (nut snacks).

2. Balaji Wafers Pvt Ltd produces readymade food items. BALAJI name is

very popular & well known in Saurashtra & Gujarat. Balaji produces

many types of food items like, potato wafers, banana wafers, mug dal,

farari chewdo, ratlami sev, shing, chataka pataka gathiya etc.

3. Garden Snacks produces ready to eat namkeens in convenient packages. It

offers varieties such as Sev, Aloo Bhujia, Mixtures, chivda etc.

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3.2 NEWS ARTICLES

Perfetti forays into snacks market (PTI-New Delhi, Apr 28, 2011)

Confectionery maker Perfetti Van Melle, which sells candies like Alpenliebe and

Center Fresh, today, said it is entering into the snacks market in India, which is

currently dominated by players like PepsiCo, Parle Agro and Haldirams.

Perfetti Van Melle, which does not have presence in the snacks category globally, is

for the first time testing the segment with plans to launch its brand Stop Not in India

that will compete with the likes of Kurkure from PepsiCo and Parle Agros Hippo.

We continuously look for new opportunities. Food is a growing category in India and

we would like to tap this market to expand our business, Perfetti Van India Managing

Director Sameer Suneja told PTI.

According to Suneja, the Indian salty snacks market stands at around Rs 6,000 crore

with Pepsicos Kukure, Lays and Parle Agros Hippo among others.

Perfetti Van Melle will launch Stop Not in a phase manner starting with states

Punjab and Haryana before getting into more states in the latter part of the year. At

present, the product is available in around 12001500 outlets.

Our strategy is to launch the product in a phased manner. We are targeting both urban

and small towns. At present, we want to get the feedback of the product, he said. The

product, which is available in two variants, has been made specially for the Indian

market and will be sold at price points of Rs 5 and Rs 10.The company achieved sales

of Rs 1,200 crore last year.

Source:http://www.thehindubusinessline.com/industry-and-

economy/marketing/article1978552.ece

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Pepsi takes on Haldiram & Parle with 40% cheaper new chips brand 'Lehar'

01 Jun 2011

India's over Rs 2,500-crore potato chips market could be in for a rearrangement, with

Pepsi-Co discreetly launching 'Lehar', a new potato chips brand that is 40%

cheaper than its flagship Lays.

With a 20g pack priced at Rs 5, the US-based snacks and soft drink maker hopes to

reclaim market share nibbled away by domestic players such as Balaji,

Haldiram, Parle and Prakash Snacks.

PepsiCo, which launched 'Lehar' potato chips two weeks ago in parts of Maharashtra

and Gujarat, is mum about its target, investments and rollout plans.

The new product is unlikely to impact Lays' market because it target consumers,

primarily the hinterland of these states, are buying chips that are cheaper than

Lays.

Both Gujarat and Maharashtra are big markets for the snacks segment, with Balaji

holding over 70% market share in Gujarat and having an equally strong

presence in Maharashtra along with Haldiram and Parle.

Analysts say PepsiCo's move is aimed at countering low-priced players without

diluting its flagship potato chips brand.

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The company's share in the domestic potato chips market has slipped from 66% in

March 2008 to 58% this year, according to data from market research firm The

Nielsen Company . At the same time, Parle's share has grown to 5% after three

years of its product launch, while Haldiram's has increased from 3% in 2008 to

5% now, data shows.

"Consumers now want variety and new tastes. They are not loyal to any particular

brand," says BK Rao, general manager, Parle Products.

Also, many of these players began at the bottom of the pyramid, creating markets

where there were none, before moving to the urban areas.

On the other hand, their bigger rivals focussed on the urban market till it was

saturated, before looking towards the rural areas. "We started with one product

from Rajkot, then took it to Gujarat and then took to Rajasthan and

Maharashtra, only after we had consolidated our base in these markets and also

created enough buzz around our brand," said Balaji's founder, Chandu Virani.

"We have been sending our officials to countries such as Israel to learn more

about potato contract farming and product technology," he added. Balaji, the

second-largest player in the segment, has raised its share from 13% three years

ago to 14% now.

Although most small players have been low on advertising, they have penetrating the

smallest of towns through a direct sales force and sub-stockists.

Companies like Parle and Haldiram have a presence across 2.5-3 million retail outlets,

and other regional brands are fast catching up.

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"We are now in 10 states and are planning to go national in another two years," said

Arvind Mehta, MD of Indore-based Prakash Snacks, which launched its Yellow

Diamond brand in 2005. The company has 4% market share as compared with

2% three years ago.

However, PepsiCo doesn't seem perturbed by the ground it has lost. A company

spokesperson said it continues to maintain leadership position and is confident

of strengthening its growth trajectory. "The entrance of new players in the

market is a healthy sign as it will only accelerate category growth, the

spokesman said.

Source: The Economic Times and

http://www.imagesfood.com/CategoryWatch_Details.aspx?Id=6&Topic=2

3.3. PRICE & WEIGHT COMPARISON BETWEEN HALDIRAMS & ITS

COMPETITORS

Product Haldirams Garden Bikaji Balaji Lehar

Name (Rs./Net (Rs./Net (Rs./Net (Rs./Net Wt) (Rs./Net Wt)

Wt) Wt) Wt.)


Aloo 5/20g 5/22g -- 5/25g 5/35g
10/40g 10/45g -- 10/55g 10/75g
Bhujia 30/150g 32/180g 37/200g -- 27/160g
65/350g -- 70/400g -- --
170/1kg -- 170/1kg -- --
Bhujia Sev 5/20g 5/22g -- 5/25g 5/35g
10/40g 10/45g -- 10/55g 10/75g
30/150g 32/180g 37/200g -- 27/160g
65/350g -- 70/400g -- --
105/600g -- -- -- --
170/1kg -- 170/1kg -- --

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Moong 5/20g 5/20g -- 5/35g
10/40g 10/45g -- 10/75g
Dal 32/150g 32/180g 37/200g -- --
70/350g -- -- -- --
-- -- 175/1kg -- --

Peanut 5/30g -- -- 5/40g


10/60g 17/90g -- 10/100g
(Masala, -- 32/180g 40/200g --

Salted)
Boondi 10/40g 17/50g -- --
30/150g -- 35/200g --
Navratan -- 10/45g -- --
36/150g -- 37/200g --
Mix
Khatta 5/30g
10/45g
Meetha 24/150g
54/350g
Aloo 28/100g
50/200g
Laccha
Ratlami 5/30g
10/60g
Sev 24/150g 32/180g
Mixture 5/30g 5/22g
10/60g 10/45g
32/180g 40/200g
Soanpapdi 45/250g 45/250g 56/200g
86/500g 110/400g
Rasgulla 58/450g --
130/1kg 100/800g
Falhari 5/30g
10/40g
Chiwda 24/150g
All In One 32/150g 37/200g
70/350g 70/400g

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CHAPTER 4

HALDIRAMS COMPANY PROFILE

4.1. INTRODUCTION

As the ethnic foods category is growing, cash-rich companies make a beeline for a

share of the salty snacks market. Around 1,000 snack items are sold in India spanning

various tastes, forms, textures, aromas, bases, sizes, shapes and fillings. Some 300

types of savouries sell here and the overall snack product market (inclusive of

sweetmeats) is estimated at Rs.25, 000 crore. The branded salty snacks market (size:

1200 Crores) is 40% of the total market (size: 3000 Crores), is bustling nevertheless.

The branded segment is increasing at the rate of 25% per annum whereas the entire

market is increasing at the rate of 7%. In the past 2-3 years the unbranded sector has

witnessed a decline of 5% per annum. Indians seem to be snacking on ethnic foods

with a vengeance. This is good news for the corporate sector, given that the past few

years have seen a perceptible shift towards the branded sector at the cost of the

unbranded segment.

Over a period spanning six and a half decades, the Haldirams Group (Haldirams)

had emerged as a household name for ready-to-eat snack foods in India. It had come a

long way since its relatively humble beginning in 1937 as a small time sweet shop in

Bikaner, in the Rajasthan state of India. In 2001, the turnover of the Haldirams was

Rs. 4 billion. The group had presence not only in India but in several countries all

over the world. Till the early 1990s, Haldirams comprised of three units, one each in

Kolkata, Nagpur and New Delhi. The Agarwals family that owned Haldirams were

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always conscious of the need to satisfy customers in order to grow their business. The

company offered a wide variety of traditional Indian sweets and snacks at competitive

prices that appealed to people belonging to different age groups. Haldirams had many

firsts to its credit. It was the first company in India to brand namkeens. The group

also pioneered new ways of packaging namkeens. Its packaging techniques increased

the shelf life of namkeens from less than a week to more than six months. It was also

one of the first companies in India to open a restaurant in New Delhi offering

traditional Indian snack food items such as panipuri, chatpapri, and so on, which

catered to the needs of hygiene conscious non-resident Indians and other foreign

customers. Since the very beginning, the brand Haldirams had been renowned for its

quality products. The company employed the best available technology in all its

manufacturing facilities in India. Given the increasing popularity of Haldirams

products, the group planned to expand its operations.

However, some analysts felt that Haldirams still had to overcome some hurdles. The

company faced tough competition not only from sweets and snack food vendors in the

unorganized market but also from domestic and international competitors like SM

Foods, Bakemans Industries Ltd, Frito Lay India Ltd.(Frito Lay) and Britannia

Industries Ltd. Moreover, the group had to overcome internal problems as well. In the

early 1990s, because of the conflict within the Agarwals family, Haldirams

witnessed an informal split between its three units as they started operating separately

offering similar products and sharing the same brand name. In 1999, after a court

verdict these units started operating as three different companies with clearly defined

territories. This split had resulted in aggressive competition among themselves for a

higher share of domestic and international markets.

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4.2 BACKGROUND NOTE

In 1937, Ganga Bishen Agarwal, (popularly known as Haldirams), opened a small

sweet shop in Bikaner, a small district in Rajasthan. Bikaner had a large number of

sweet shops selling sweets as well as namkeens. Bhujia sev, a salty snack prepared

by Ganga Bishen, was very popular among the residents of Bikaner and was also

purchased by tourists coming to Bikaner. In 1941, the name Haldirams Bhujiawala

was used for the first time. In 1950, Prabhu Shankar Agarwal (Prabhu), along with his

father Rameshwar Lal Agarwal (son of Ganga Bishen), expanded the business by

establishing a small manufacturing unit for sweets and namkeens in Kolkata. The

success of this unit motivated Prabhu to upgrade its machinery to improve the quality

of its products. As demand for Haldirams products increased, it was decided to scale

up the companys manufacturing and distribution activities. In 1970, a large

manufacturing unit was set up in Nagpur in the state of Maharashtra (India). In 1983,

a retail outlet was set up in New Delhi. The outlet became very popular not only

among the Delhiites but also among tourists visiting Delhi. Haldirams was able to

achieve significant growth during the 1980s and 1990s. In 1992, a manufacturing unit

with a retail outlet attached to it was set up in the outskirts of Delhi. A year later,

Haldirams syrups and crushes were successfully launched in the Indian market. In

1995, a restaurant was opened in New Delhi. In 1997, realizing the potential of

namkeens, the company set up a manufacturing unit in Delhi exclusively for making

namkeens. To add potato products to its existing product portfolio, machinery was

imported from the US. Haldirams maintained high quality standards at every stage of

the production process. All its food items were prepared and packaged in a very

hygienic environment. In the mid-1990s, Haldirams added bakery items, dairy

products, sharbats and ice creams to its portfolio. At the beginning of the 21st century,

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Haldirams products reached millions of consumers not only in India, but also in

several other countries, including the US, Canada, UK, UAE, Australia, New Zealand,

Sri Lanka, Nepal, Japan and Thailand. Analysts felt that the growing popularity of

Haldirams products could be attributed to its constant focus on all the elements of the

marketing mix. An article posted on the website apeda.com quoted some of the

companys strengths, To sustain in the competitive market, Haldirams has

endeavored stress on its product quality, packaging, shelf life, competitive price with

a special emphasis on consumers satisfaction and its lingering taste is amongst the

best available in the world. In addition to these packaged products, Haldiram has its

own outlets where it sells sweets and eatables. It also has a range of restaurants in the

various tier-I and tier-II cities of the country. Haldiram's products in Delhi and the

NCR are sold under the brand name of "Haldiram", which is the original Haldiram

family. Products in the Kolkata region are sold under the brand name of "Haldiram's

Prabhuji" or "Haldiram Bhujiawala" while products in the Nagpur region are sold

under the brand name of "Haldiram's Nagpur". More than advertisements, it's the

word of mouth that has helped reach this favourite Indian Brand its current enviable

status.

Haldiram's is a member of the following food associations from India and abroad:

1. APEDA (Agriculture and Processed food Products Exports Development

Association),India

2. ITPO (India Trade Promotion Organization)

3. SFA (Snack Food Association)

4. ESA (European Snacks Association)

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Haldirams Food International Ltd today is recognized as Star Export House by

Directorate General of Foreign Trade, Department working under Ministry of

Commerce, India. Haldiram Bhujiawala soon became operative after setting its

manufacturing plant in Nagpur and became hot favourite of Nagpurians. Model

factory of its time for manufacturing its sweets and namkeens was set up at Haldiram

House, 880, Small Factory Area Wardhman Nagar, Nagpur.

This was followed by a chain of retail outlets and showrooms catering to the varied

tastes of all segments of society. In 1997, Haldirams forayed into milk and milk

product industry with products such as Khowa, Ghee and butter milk, the manufacture

of Extruded foods such as vermicelli and 3-D snacks. Todays Haldirams has Branch

Offices at commercial capitals like Mumbai, Bangalore and Chennai. It is only due to

the untiring efforts of the founder Chairman, Mr Shivkisan Agrawal, our dynamic

leader that Haldirams is the proud recipient of the International Food Award.

Today, Haldirams Nagpur is one of the leading players in the snack food industry

despite stiff competition from the global food giants, earning valuable foreign

exchange for our country. We have been branded as The No.1 brand in the ready-to-

eat snack Food category and as Indias Most Trusted Brand in 2003.Employing State-

of-the-art technology from Italy, Haldirams started producing high quality, ready-to-

eat snacks, savouries and sweets. From sourcing raw materials to their conversation

into finished products, everything is done as per the international norms (HACCP) of

Quality and Safety. A human touch is avoided to ensure superior hygiene. It is the

reason our products retain Freshness and Flavour. Apart from exclusive recipes and

high quality products Variety is the key reason behind the Companys popularity. Be

it Sweets or Namkeens, the Haldirams touch makes it tastier while the high-tech

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machinery ensures that the packaging is done in a attractive way whilst maintaining

international standards of hygiene.

In its mission to make available Sweets, Salted Snacks, Savouries and Pappadam

globally through well-established marketing networks, Haldirams developed a new

range of products under the brand name MOPLEEZ covering Vermicelli, Macaroni

and 3-D Pellets using Italian Machinery. Presently we export our products to Canada,

Australia, New Zealand, Italy, Sri Lanka, United States of America, Malaysia, Poland,

Singapore, Hong Kong, Qatar, Mauritius, South Korea, South Africa, United

Kingdom, Saudi Arabia, United Arab Emirates and many more developed countries.

AWARDS

Haldirams has been the proud recipient of many awards such as the International

Food award from TROFEO International Alimentation of Barcelona, Spain (1999).

Shri Shivkishanji Agrawal, Chairman of Haldirams Group has also received a

regional award titled VIDARBHA GAURAV PURASKAR. M/s Haldirams Nagpur

has recently got an ISO 9001-2000 certification and HACCP certification by DNV

CERTIFICATION B.V Netherlands. It has the distinction of being a member of

renowned International Associations viz European Snacks Association (ESA), Snack

Food Association (SFA).

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Haldirams today has an international membership with the following associations:

1. SNACK FOOD ASSOCIATION, VIRGINIA (USA)


2. EUROPEAN SNACK ASSOCIATION, LONDON (UK)
3. INTERNATIONAL ASSOCIATION OF AMUSEMENT PARKS AND

ATTRACTIONS, ALEXANDRIA, VA (USA)

4.3 MISSION, VISION, GOALS

MISSION

Review, Recreate and Rediscover the trend of Healthy Eating and Innovate and

invent fresh new methods to Nourish and Delight everyone we serve.

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.

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GOAL

To provide our customers Perfect Taste and Quality in the Best of Packaging

4.4. INTERNATIONAL LOCATIONS OF HALDIRAMS FOOD

USA SOUTH AFRICA

San Francisco UGANDA


Los Angeles
Las Vegas
KENYA
Florida
Texas Illinois
Ohio TANZANIA
Toronto
New York
MAURITIUS AND REUNION

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24
HUNGARY JAPAN

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25
4.5. HALDIRAMS AND IT STAND ON GENETICALLY MODIFIED

INGREDIENTS- A COMPETITIVE ADVANTAGE

Source: http://www.greenpeace.org/india/Global/india/graphics/2009/9/safe-food-

guide.pdf
4.6. ORGANIZATION STRUCTURE
4.7 DISTRIBUTION PROCESS

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.

The Nagpur unit has 25 C&F agents and 375 distributors. C&F agents received a

commission of around 5%, while distributors earned margins ranging from 8% to

10%. The retail outlets earned margins ranging from 14% to 30%. At the retail outlet
level, margins varied according to the weight of packs sold. Apart from the exclusive

showrooms owned by Haldiram's, the company offered its products through retail

outlets such as supermarkets, sweet shops, provision stores, bakeries and ice cream

parlours. The products were also available in public places such as railway stations

and bus stations that accounted for a sizeable amount of its sales.
CHAPTER 5

HALDIRAMS: MARKETING MIX

5.1 PRODUCTS

Haldirams offered a wide range of products to its customers. The product range

included namkeens, sweets, sharbats, bakery items, dairy products, papad and ice-

creams. However, namkeens remained the main focus area for the group contributing

close to 60% of its total revenues.

By specializing in the manufacturing of namkeens, the company seemed to have

created a niche market. While the Nagpur unit manufactured 51 different varieties of

namkeens, the Kolkata unit manufactured 37 and the Delhi unit 25. The raw materials

used to prepare namkeens were of best quality and were sourced from all over India.

Haldirams sought to customize its products to suit the tastes and preferences of

customers from different parts of India. It launched products, which catered to the

tastes of people belonging to specific regions. For example, it launched Murukkus, a

South Indian snack, and Chennai Mixture for south Indian customers.

Similarly, Haldirams launched Bhelpuri, keeping in mind customers residing in

western India. The company offered certain products such as Nazarana,

Panchratan, and Premium only during the festival season in gift packs. These

measures helped Haldirams compete effectively in a market that was flooded with a

variety of snack items in different shapes, sizes and flavors.


5.2 PRICING

Haldirams offered its products at competitive prices in order to penetrate the huge

unorganized market of namkeens and sweets. The companys pricing strategy took

into consideration the price conscious nature of consumers in India. Haldirams

launched namkeens in small packets of 30 grams, priced as low as Rs.5. The company

also launched namkeens in five different packs with prices varying according to their

weights.

The prices also varied on the basis of the type of namkeens and the raw materials used

to manufacture it. The cost of metallized packing also had an impact on the price,

especially in the case of snack foods. The company revised the prices of its products

upwards only when there was a steep increase in the raw material costs or additional

taxes were imposed.

5.3 PLACE

Haldirams 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

companys finished goods were passed on to carrying and forwarding (C&F) agents.

C&F agents passed on the products to distributors, who shipped them to retail outlets.

While the Delhi unit of Haldirams had 25 C&F agents and 700 distributors in India,

the Nagpur unit had 25 C&F agents and 375 distributors.

Haldirams also had 35 sole distributors in the international market. The Delhi and

Nagpur units together catered to 0.6 million retail outlets in India. C&F agents

received a commission of around 5%, while distributors earned margins ranging from

8% to 10%. The retail outlets earned margins ranging from 14% to 30%. At the retail

outlet level, margins varied according to the weight of packs sold.


Retailers earned more margins ranging from 25% to 30% by selling 30 gms pouches

(priced at Rs.5) compared to the packs of higher weights. Apart from the exclusive

showrooms owned by Haldirams, the company offered its products through retail

outlets such as supermarkets, sweet shops, provision stores, bakeries and ice cream

parlors. The products were also available in public places such as railway stations and

bus stations that accounted for a sizeable amount of its sales.

Haldirams products enjoyed phenomenal goodwill and stockists competed with each

other to stock its products. Moreover, sweet shops and bakeries stocked Haldirams

products despite the fact that the companys products were competing with their own

products.

Haldirams also offered its products through the Internet. The company tied up with

indiatimes.com, a website owned by the Times of India group[1] to sell its products

over the Internet. Haldirams products could be ordered through a host of other

websites in India and abroad. Giftstoindia.com, giftssmashhits.com, tohfatoindia.com

and channelindia.com enabled people residing abroad to send Haldirams gift packs to

specified locations in India.

Region-specific websites enabled people to send gifts to specified regions. These

include indiamart.com (Delhi and surrounding areas), mumbaiflowersgifts.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).
5.4 PROMOTION

Haldirams product promotion had been low key until competition intensified in the

snack foods market. The company tied with Profile Advertising for promoting its

products. Consequently, attractive posters, brochures and mailers were designed to

enhance the visibility of the Haldirams brand. Different varieties of posters were

designed to appeal to the masses.

The punch line for Haldirams products was, Always in good taste. Advertisements

depicting the entire range of Haldirams sweets and namkeens were published in the

print media (magazines and newspapers). These advertisements had captions such as

millions of tongues cant go wrong, What are you waiting for, Diwali? and

Keeping your taste buds on their toes.

To increase the visibility of the Haldirams brand, the company placed its hoardings

in high traffic areas such as train stations and bus stations. Posters were designed for

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

Rasgullas) promoted individual products. For those customers who wanted to know

more about Haldirams products, special brochures were designed which described

the products and gave information about the ingredients used to make it. Mailers were

also sent to loyal customers and important corporate clients as a token of appreciation

for their patronage.

Packaging was an important aspect of Haldirams product promotion. Since namkeens

were impulse purchase items, attractive packaging in different colors influenced

purchases. Haldirams used the latest technology (food items were packed in nitrogen
filled pouches) to increase the shelf life of its products. While the normal shelf life of

similar products was under a week, the shelf life of Haldirams products was about six

months. The company projected the shelf life of its products as its unique selling

proposition. Posters highlighting the shelf life of its products carried the caption six

months on the shelf and six seconds in your mouth. During festival season,

Haldirams products were sold in attractive looking special gift packs.

The showrooms and retail outlets of Haldirams gave importance to point of purchase

(POP) displays. Haldirams snacks were displayed on special racks, usually outside

retail outlets. The showrooms had sign boards displaying mouth-watering delicacies

with captions such as Chinese Delight, Simply South, The King of all Chats[3].

Posters containing a brief account of the history of Haldirams, along with pictures of

its products, were also on display at these showrooms.

Haldirams also diversified into the restaurant business to cash in on its brand image.

The company established restaurants in Nagpur and Delhi. The restaurant at Nagpur

devised an innovative strategy to increase its business: It facilitated people who were

traveling by train through Nagpur station to order food from places where stockists of

Haldirams Nagpur unit were located. The customers could order for lunch/dinner by

sending a demand draft (DD) or cheque to the Nagpur unit or giving the same to

specified local distributors belonging to the Nagpur unit. Along with the DD/cheque,

customers had to provide information such as the name of the train, its likely time of

arrival at Nagpur, their names and coach and seat numbers.

Haldirams restaurants in Delhi also used innovative ways to attract customers. The

restaurant located at Mathura road had special play area for children. To cater to

NRIs and foreign tourists, who hesitated to consume snack foods sold by the roadside

vendors since it was not prepared in a hygienic manner, the Haldirams restaurant
located in South Delhi used specially purified water to make snack foods including

pani puri and chat papri . These promotional strategies helped Haldirams to compete

effectively with local restaurant chains such as Nathus, Bikanerwala and Agarwals

and with western fast food chains such as McDonalds and Pizza Hut.

5.5. POSITIONING

The above initiatives helped Haldirams to uniquely position its brand. Haldirams

also gained an edge over its competitors by minimizing promotion costs. Appreciating

the companys efforts at building brand, an analyst said, Haldiram once was just

another sweet maker but it has moved into trained brands first by improving the

product quality and packaging.

Through its clever products and brilliant distribution it had moved into the star

category of brands. Haldirams earned recognition both in India and abroad. The

Nagpur unit of Haldirams was conferred the International Food Award. By the Trofeo

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. Haldirams was also admitted as the member of Snack Food

Association, US.
CHAPTER 6

HALDIRAMS PRODUCTS

BIKANERI PAPAD,Nagpur

Product Detail :

Ingredients - moong flour, black gram flour, sazi, salt,

asafoetida, vegetable oil & spices.

Available in 1000gm, 200gm, 400gm.

Shelf life 9 months.

Nutritional info (per serving 100 g) proteins : 21.1 g fat : 2.8

g carbohydrates : 52.4 g cholesterol : absent


CHAM CHAM, Nagpur

Product Detail: Product description-soft cheese dumplings

in syrup.

Ingredients- milk, sugar, water, rose water & contains

permitted class ii preservative.

Available in 800gm, 1000gm.

Shelf life 9 months.

Nutritional info (per serving 100 g) proteins : 3.97 g fat : 1.85

GULBAHAR TIN, Nagpur

Product Detail: Product description-fried milk dumpling in

syrup. Ingredients milk, sugar, milk fat & cardamom.

Available in 500gm, 800gm, 1000gm.

Shelf life 9 months.

Nutritional info (per serving 100 g) proteins: 3.07 g fat: 6.92

g energy: - carbohydrates: 51.1.

RAJBHOG, Nagpur

Product Detail: Product description-soft cheese dumplings

in syrup with saffron.

Ingredients milk, sugar, water, rose water & contains


permitted synthetic food colour(s) (e102 & e110).

Available in 800gm, 1000gm, 4000gm.


RASSGULLA TIN, Nagpur

Product Detail: Product description-soft cheese dumplings

in syrup.

Ingredients milk, sugar, water, rose water & contains

permitted class ii preservative.

Available in 500gm, 800gm, 1000gm, 4000gm.

Shelf life 9 months.

Nutritional info (per serving 100 g) proteins : 3.97 g fat

COCONUT SOAN PAPADI (Plastic Box),Nagpur

Product Detail: Crisp-kurkura crunchy, sweet with a touch

of coconut.

Ingredients- sugar, milk fat, Bengal gram flour, wheat flour,

cardamom, pistachio, almond.

Available in 250gm.

Shelf life 4 months.

Nutritional info (per serving 100 g) proteins : 5.28


SOAN CAKE (Plastic Box), Nagpur

Product Detail: Ingredients sugar, milk fat, Bengal gram

flour, wheat flour, cardamom, pistachio, almond.

Available in 200gm, 250gm, 500gm.

Shelf life 3 months.

Nutritional info (per serving 100 g) proteins: 4.78 g fat:

23.64 g energy: - carbohydrates: 68.63 g cholesterol.

BADAM HALWA, Nagpur

Product Detail: Product description-ideal gift, delicious

finale. Ingredients sugar, corn starch, vegetable oil, cashew

nuts, almonds, cardamom, tartaric acid, artificial colours &

artificial flavour.

Available in 200gm. Shelf life 4 months.

ORANGE SOAN PAPADI, Nagpur

Product Detail: Product description crisp-kurkura crunchy

sweet/ ideal any time before or after anything.

Ingredients sugar, milk fat, Bengal gram flour, wheat flour,

cardamom, pistachio, almond.

Available in 250gm. Shelf life 3 months.


SOAN PAPADI,Nagpur

Product Detail: Product description-a light, crisp, tasty

sweet. Popular with one and all for its cruncy-munchy feel

and taste. This light yellow sweet is lightly spiced with green

cardamoms. The garnish includes flakes of almonds &

pistachios, whole chiraunji & elon seeds. Other Ingredients

-sugar, vanaspati ghee.

SOAN CAKE, Nagpur

Product Detail: Ingredients sugar, milk fat, Bengal gram flour,

wheat flour, cardamom, pistachio, almond.

Available in 100gm, 250gm, 500gm.

Shelf life 3 months.

Nutritional info (per serving 100 g) proteins : 4.78 g fat : 23.64 g

energy : - carbohydrates : 68.63 g cholesterol.

SP. SOAN PAPADI, Nagpur

Product Detail: Product description-crisp-kurkura crunchy,

anytime sweet with a touch of assorted nuts.Ingredients sugar,

milk fat, Bengal gram flour, wheat flour, cardamom, pistachio,


almond.

CHANA NUT,Nagpur

Product Detail: Product description- a tasty, crispy, spicy treat

of chana & peanut.

Ingredients Bengal gram, peanut oil, peanut, mix spices, salt &

citric acid.

Available in 170gm. Shelf life 6 months.

Nutritional info (per serving 100 g) proteins : 16.8 g fat : 34.8 g

TASTY, Nagpur

Product Detail: Product description-spiced coated fried peanuts

Ingredients peanut, Bengal gram flour, peanut oil, mix spices,

salt & citric acid.

Available in 160gm, 30gm, 180gm, 200gm.

Shelf life 6 months.

Nutritional info (per serving 100 g) proteins : 21.94 g fat : 41.2 g


POTATO STICK, Nagpur

Product Detail: Ingredients-potato, peanut oil, red chilli, mix

spices & salt.

Available in 25gm, 40gm.

Shelf life 4 months.

Nutritional info (per serving 100 g) proteins : 2.9 g fat : 39.4 g

carbohydrates : 51.4 g cholesterol : absent cruid fi.

FALAHARI CHIWDA,Nagpur

Product Detail: Ingredients-potato, peanut oil, peanuts, sugar,

red chilli, poppy seeds & rock salt.

Available in 80gm, 170gm.

Shelf life 4 months.

Nutritional info (per serving 100 g) proteins: 4.78 g fat: 41.2 g

carbohydrates : 46.3 g cholesterol.


ALL IN ONE , Nagpur

Product Detail: Product description-a mix of all fried Indian

delicacies.

Ingredients-Bengal gram flour, moong lentils, rice flakes, peanut,

potato, corn flakes, raisins, cucumber seed, peanut oil, cashew

nuts, salt, spinach, red chilli & mix spices.

Available in 30gm, 80gm, 170gm, 400gm.

SP. CORNFLAKES ,Nagpur

Product Detail: Product description-tasty mix of corn flakes

with potato sticks and dry fruits.

Ingredients-corn flakes, potato, Bengal gram flour, peanut oil,

peanut, cashew nuts, raisin, spinach, sugar, salt, red chilli , mix

spices, & citric acid.

Available in 60gm, 170gm, 400gm.

MILAN MIX , Nagpur

Product Detail: A three-in-one snack mix.

Ingredients- Bengal gram flour, kheri gram ( moth) flour, peanut


oil, salt & mix spices.

Available in 170gm, 180gm.

Shelf life 8 month.

Nutritional info (per serving 100 g) proteins: 10.5 g fat : 24.3 g

carbohydrates.

BHEL PURI, Nagpur

Product Detail: Product description-Bombay famous sweet &

sour snack mix.

Ingredients-Bengal gram flour, puffed rice, Bengal gram lentils,

peanut, wheat flour, vegetable oil contain one or more of the

following: peanut & palmoline oil), mix spices & salt chutneys

contain - red chilli, green chilli, tamarind, salt.

MADRASI MIX ,Nagpur

Product Detail: Product description-a typical south Indian styled

snack mix.
Ingredients-gram flour, groundnut oil, chana dal, peanut, green

peas, red chilli, cumin, turmeric, salt.

Available in 85gm.

Shelf life 8 months.

Nutritional info (per serving 100 g) proteins: 10.18 fats.

GOLDEN MIXTURE, Nagpur

Product Detail: Product description an all-time snack mix in

Guajarati style.

Ingredients-Bengal gram flour, rice flakes, peanut oil, kheri gram

(moth) flour, moong lentils, peanut, raisin, lentils, Bengal gram

pulse, spinach, salt, red chilli & mix spices.

Available in 170gm, 400gm, 80gm.

KHATTA MITHA,Nagpur

Product Detail: Product description- sweet -n- salty mix of sago

and rice flakes.

Ingredients-Bengal gram flour, rice flakes, split Bengal gram,

peanut oil, sago, peanut, lentils, mix spices, salt, sugar & citric

acid.
Available in 30gm, 170gm, 400gm.

Shelf life 6 months.

PANCHARATAN MIXTURE ,Nagpur

Product Detail: Product description- Combination of potato sticks

and dry fruits mildly sweet -n- sour.

Ingredients potato, peanut oil, cashew, raisin, sugar, almond, mix

spices, curry leaves, & citric acid.

Available in 40gm, 170gm. Shelf life 4 months.


MIXTURE, Nagpur

Product Detail: Product description- mouth-watering mix of fried

Indian snacks.

Ingredients-Bengal gram lentils, Bengal gram flour, rice flakes,

lentil ,peanut oil , potato , green peas , peanuts , spinach , salt , red

chilli & mix spices.

Available in 30gm, 80gm, 400gm, 160gm, 12gm, 70gm.

MASALA SEV , Nagpur

Product Detail: Product description -Spicy lemon flavoured

extruded snack.

Ingredients- potatoes, peanut oil, corn flour, Bengal gram flour,

mix spices, ajinomotto salt & citric acid.

Available in 70gm.

Shelf life 6 months. Nutritional info (per serving 100 g) proteins:

3.59 g fa.
ALU BHUJIA, Nagpur

Product Detail: Product description-spicy mint flavoured,

extracted potato snack for all ages.

Ingredients - potato , Bengal gram flour , kheri gram ( moth)

flour , peanut oil, sago, salt, mint flavour & red chilli .

Available in 13gm, 30gm, 80gm, 400gm, 1000gm, 160gm.

Shelf life 6 month.

BHUJIA, Nagpur

Product Detail: Product description- Bikaneri famous hot -n-

spicy extruded fried Indian snack.

Ingredients- kheri ( moth ) gram flour , peanut oil , Bengal gram

flour salt & mix spices.

Available in 30gm, 80gm, 400gm, 1000gm, 160gm.

Shelf life 8 months.


CHAPTER 7

HALDIRAMS INNOVATION

Gati ties up with Haldirams

Hyderabad, Oct. 21, 2008

Gati Ltd, the city-based express distribution and supply chain services company, has

tied up with Haldirams, which manufactures packaged snacks and sweets, to let its

customers send gift packs to their friends and relatives across the country. Launched

to mark the Diwali season, the Gati Diwali Delights lets the people to send a range of

gift packs with a price band of Rs 475 to Rs 700. Orders could be placed till October

24, a Gati press release said.

Source: http://www.thehindubusinessline.com/todays-paper/tp-

logistics/article1639604.ece
CHAPTER 8

INTRODUCTION TO THE PROJECT

8.1 OUTLINE

The namkeen industries companies run mainly on the factors such as availability,

service frequency, affordability, taste and marketing. Availability plays a vital role

because purchasing power depends upon availability of that product, in this case

distributors and retailers service matters a lot. Retailing includes all the activity in

selling goods or services directly to the customers or personal non-business use. A

retailer or retail store is any business enterprises whose sales volume comes primarily

from retailing.

Retailers are a part of the namkeen marketing channels and perform the work of

moving goods from producers to the customers. It overcomes the time, place and

possession gap that separates goods and services from those who need or want them.

Retailers as members of marketing channel perform a number of key functions. Some

functions (physical, title, promotion) constitute a forward flow of activity from the

company to the customers; other functions (ordering and payment) constitute a

backward flow from customers to the company. Still others (information, negotiation,

finance and risk taking) in both directions.

The project is about workings from the distribution aspect of an FMCG organization,

in detail. Haldiram Food International, being an FMCG company, attaches a lot of

significance to the distribution aspect of its business. The distribution channel of

Haldiram holds a lot of potential in affecting the demand or sales of its products

through delivery on time, delivery of variety of products, the retailer friendliness of


the policies being set by the distributors and equitable distribution of products to all

the retail outlets in a particular region and product availability. So in order to plan the

retail coverage we studied the different areas in Zone 3 (Andheri-Worli) and identified

the areas where the maximum numbers of retailers are present. We collected

information about distributor service, product availability, product range, retailer

satisfaction and scope for opening new outlets for Haldirams in these areas.

8.2 NEED OF STUDY

Managers are always curious about the position of their companys products in the

market which largely depend upon the companys goodwill, and the position of their

brand. In order to maximize the sale and profit, company must deliver outstanding

satisfaction to the retailers, wholesalers & customers. So market survey of retailers,

wholesalers & customers, chart out the position of the company as compared to the

competitors. It helps the organization to find out the brand being sold most by the

retailers along with their stocking and also consumer buying preferences.

8.3. SCOPE OF THE PROJECT

The study was carried out in Zone 3(Andheri to Worli), thus the scope of the study is

mainly limited in this area.

It gives the quantity of Haldirams products distributed in the selected area.


It gives the information about the service given by distributors to the retailers.
It gives information about the competitors products.
It gives information about retailers problems
It provides suggestions to the company to improve their products sales and

way of distribution channel.


It helps to collect the opinions of retailers about the Haldirams products
It gives information about the strength and weaknesses of the company.

8.4. OBJECTIVES OF THE STUDY


To find the gap in the market.
To find product availability with retailer.
To find and add new outlets.
To check the product range available with the retailer.
To identify the problem of the retailer.
To identify the scope of the products.
To do SWOT analysis of Haldirams namkeen.
To collect ideas and suggestions from the widespread retail market.
CHAPTER 9

RESEARCH METHODOLOGY

9.1 AREA OF SURVEY

Field work was carried out for the Haldirams Foods International Ltd for the analysis

of market potential of namkeen and sweets in Mumbai Zone 3. Haldirams Food

International has divided Mumbai market in 10 zones as follows:

Zone 1: Dadar to Victoria Terminus

Zone 2: Colaba to Worli

Zone 3: Andheri to Worli

Zone 4: Jogeshwari to Dahisar

Zone 5: Mira road to Dahanu

Zone 6: Thane, Bhivandi, Shahapur, Vada

Zone 7: Kalyan, Karjat, Kasara

Zone 8: Vashi to Mahad

Zone 9: Mulund to Sion

Zone 10: Railway station

We worked in Zone 3.

Zone 3 includes:

Bandra East and west

Khar East and West

Vile Parle East and West


Andheri East and West

9.2 SAMPLE SIZE

Daily around 20-25 retailers were interviewed. Therefore the whole exercise took

around 20 days. Almost all the respondents were very helpful and forthcoming with

the information.

9.3 PROBLEM DEFINITION

) To study the present namkeen market (Haldirams V/S Competitors)

In order to achieve the given objective, data is collected from various sources for

calculating the market share of Haldirams and its competitors. Data is collected on

the following important bases:-

Various companies namkeens are available on outlets in those areas etc.


Product quality of various companies namkeens in comparison to Haldirams

namkeens.
Product range of various companies namkeens in comparison to Haldirams

namkeens.
Stock availability.
Market Research to find out the namkeen potential outlets.
9.4 MARKETING SEGMENTATION

Retail outlets in the market were segmented as follows:

Pan Shop

General Store

Provisional Store

Hotels, Bar & Restaurants

Bakeries

Cold Drink stores

Medical and general stores

Dry fruits, sweets and farsan stores

Super market

Whole seller

Kirana stores

To know the potential market, each of these shops from various segments were

surveyed individually, to find out whether they are willing to sell Haldirams or its

competitors products or both.


9.5 DATA COLLECTION METHOD

DATA SOURCES:

Primary as well as secondary data sources are used to make project efficient and

fruitful.

Primary sources of data

a) Observations

b) Questionnaire

Secondary sources of data

a) Companys catalogues

b) Companys website

Search Instruments

A) Observations:

Careful observations of all the outlets have been done to find out the locations

visibility, product display etc.

B) Questionnaire:

Structured non disguised questionnaire and structured disguised questionnaire has

been used to collect the information about the outlets, stock availability, stock level

etc.
CHAPTER 10

DATA ANALYSIS & INTERPRETATION

Haldirams has categorized their products into 2 divisions viz. A and B division.

All the products ranging above Rs.10 fall under the category of A division and the rest

are under the B division.

10.1 A DIVISION

A division plays a vital role in generating sales for the company as compared to that

of B division. Out of the total sales generated approximately 60% comes through A

division. The areas surveyed in the A division were Bandra, Khar, Vile parle and

Andheri. The following graphs show an analysis of surveyed retail outlets on different

parameters.
Figure 1

The distributor service in the above areas was good. Vile parle and Andheri showed

the highest percentage of satisfaction from distributor service with 90% and 88%

while that of Khar and Bandra was fairly satisfactory with 71.42% and 60%

respectively. The reason for this poor service is the frequent change of distributors and

infrequent visit of salesman. There were certain distributors in Bandra who were

replaced without giving any prior knowledge to the retailers. In the process some

retail outlets were skipped for a certain period of time and it resulted in no supply of

stock to them. The solution for this problem is that specific distributors should be

allotted definite areas and they should work consistently with the retailers in those

areas.
Figure 2

Display of the products plays a very important role in attracting customers attention.

Without the right kind of display you will find that customers spend far too much time

searching for products and will ultimately lose interest and go elsewhere. The main

aim of successful display in retail outlets is to increase sales. When customers enter a

store they want to be able to see products displayed clearly in eye catching displays.

They want to be able to see products on the right kind of displays that are at the right

height and that are easy to get to. Displays that are too crowded and jumbled or are

not appealing to customers and this will create the wrong impression.
Haldirams products were displayed properly in all the surveyed areas. Vile parle

showing 100% display indicating that all the retail outlets from these areas displayed

products properly whereas in Bandra 75% of retail outlets surveyed showed proper

display of Haldirams products.

Figure 3

This pie chart shows proportion of problem faced by retailers in replacing damaged or

expired Haldirams products. All areas under study are facing the problem of

replacement. More than 75% of retail outlets surveyed from Khar, Bandra and

Vileparle are facing a problem in replacing the product whereas retail outlets in

Andheri are showing a lower percentage of replacement issues. Khar area is showing

highest percentage of replacement problem with 85.71% followed by Bandra and Vile

Parle with 65% and 70% respectively. The problem of replacement in Andheri is

minimum up to the extent of 17.39%.


Figure 4

Retailer satisfaction was analysed on the basis of the overall satisfaction of the

retailers. Overall satisfaction is when the retailer is completely satisfied with all the

services provided by the company to the retailers like billing, visit of the salesman

and delivery of the products.

Maximum retailers in the area of Vile Parle were satisfied with Haldirams. However

very few retailers were satisfied in the area of Bandra. The percentage of retailer

satisfacstion in Andheri and Vile parle was the highest with 85.51% and 80%

respectively. This was followed by Khar with 71.42% and Bandra with as low as 25%.
Figure 5

During our study we also tried to find out the sales of Haldirams products as

compared to its competitor. Above graph shows that Haldirams products are sold

more compared to its competitor Garden in A division except in Bandra where

Gardens products are sold more as compared to Haldirams. Vile Parle is showing

highest percentage of sales whereas Bandra is showing the lowest percentage of sale

of products. The percentage of sales of Haldirams products in Andheri and Khar is

also quite good. However, there were certain retailers who said that the sale of both

Haldirams and Garden products were equal. Thus, Bandra shows the highest

percentage of sales when there is an equal comparison of both Haldirams and Garden

sales.
Figure 6

Product availability is calculated on the basis of number of products of Haldirams

and its competitors available at the retail outlet. In the category of A division the main

competitor of Haldirams is Garden. The retail outlets in Vile Parle have more

variety/range of Haldirams products as compared to Garden. The percentage of

product availability of Haldirams in Vile parle is 70%. However, the range of Garden

products is more in the areas of Khar &Bandra. Andheri is showing an almost equal

percentage of Haldirams and Garden products.


Figure 7

Figure 8
The above two graphs show the availability of product range of Haldirams in retail

outlets. Product range is calculated on the basis of available products at retail outlet

out of the total products of Haldirams. For that purpose, we made different ranges

e.g. 0 -10%, 11- 20%, 21- 30%, 31- 40%, 41-50%, 51- 60%, 61-70%, 71-80%, 81-

90%, 91-100%. We can see in the graph that products are available in different ranges

in different areas. Product range of 11-20%, 21-30%, 31-49%, 51-60% is present in

almost all areas. Products are not available in the range of 91-100% in any area under

study. In Andheri products are available in all ranges except 91-100%. In fact, only

Andheri is showing the presence of 81-90% range. Khar is showing the presence of

only three ranges 11 to 20%, 21 to 30%, 31 to 40% whereas Bandra is showing the

presence of many ranges as we can see in the graph.

Schemes

Schemes are given to retailer by distributor to purchase more products from

distributor and increase the sale. But our study showed that distributors are not giving

any scheme on Haldirams products to the retailer.


10.2. B DIVISION

All the products ranging below Rs. 10 fall under the category of B division. The order

and delivery of B division products are executed at the same time. It is done through

the ready stock vans. B division namkeen products are facing more competition as

compare to A division. Aloo bhujia and Bhujia Sev were the highest selling items in

this division. The products in the B division are sold in lots better known as Patti in

Hindi.

The areas surveyed in the B division were Vile parle and Bandra. Following graphs

will show an analysis of Haldirams products in the B division.


Figure 9

The distributor service in Vile parle and Bandra was remarkable. The satisfaction

from distributor service was almost the same in both the areas. Of this Vile Parle lead

with 85.29% followed by Bandra with 85%. Satisfaction is studied on the basis of

salesman visit, margin given to retailer on products, delivery and billing of the

products. Most of the retail outlets were fairly satisfied with the distributor service.

However some retailers complained that the distributor did not visit the shop on a

regular basis. This may be the reason that this aspect did not score a full 100% in the

respective areas.
Figure 10

The display of the products was excellent in all the retail outlets. The products in the

B division are mostly displayed on detachable hangers or strings placed outside the

shop or can be relocated during bad weather inside the shop. This ensures that

customers visiting the shop will not miss the product. This will in turn attract

customers to buy the product. From the above pie chart we can see that Haldirams

products are displayed properly in all the areas under study. Vile parle and Bandra are

showing 100% display indicating that all the retail outlets surveyed had displayed the

products properly.
Figure 11

Replacement problem in B division is less in surveyed areas as we can see in the

graph. The outlets surveyed in Bandra did not show any replacement problem. This

means that the distributors replaced the products as and when required. In

comparison, Vile parle showed a higher percentage of retailers facing this problem.

The percentage of outlets having an issue with replacement of products in Vile parle

was 26%.
Figure 12

Retailer satisfaction was analysed on the basis of the overall satisfaction of the

retailers as done in the case of A division. The above graph shows that the percentage

of retailer satisfaction in Vile parle and Bandra was 76.47 % and 85% respectively.

This shows that the retailers in Bandra were satisfied more with Haldirams products

in comparison to the outlets surveyed in Vile parle. The percentage of retailer

satisfaction is fairly good, considering an overall review of both the areas.


Figure 13

Above graph shows that Haldirams is facing tremendous competition from Balaji in

B division as mentioned earlier. As per the survey in Bandra, the percentage of Balaji

products sold in that area is 61.53% whereas the percentage of sale of Haldirams

products is 38.46%. This means that Balaji is leading the market in case of B division

products in Bandra. On the other hand the percentage of Balaji products sold in Vile

parle is 38.23% whereas the percentage of sale of Haldirams products is 52.94%.

Thus Haldirams enjoys a greater market share in Vile parle in spite of the

competition. Gardens products are also showing their presence in Vile parle

indicating more competition for Haldirams. The percentage of garden products in

this area is 8.82%.


Figure 14

Study of product availability showed that Balajis products are available more at retail

outlets in the Bandra area as compared to Haldirams products in that area. The

percentage of availability of Haldirams products was 23% while that of Balaji

products was 77%. This indicates that the product availability of Balaji products was

more than double of Haldirams products. On the other hand in the retail outlets

surveyed in Vile parle, Haldiramss product are available more in comparison to

Balaji. The percentage of Balaji products available in the Vile Parle area was 32.35%

while that of Haldirams products was 58.82%. Garden products are also available in

Vile Parle.
Figure 15

Product range available at retail outlets of B division Haldirams products is less as

compared to A division products. Product range of 0-10% is available Vile parle area

followed by range of 11-20% and 21-30%. On the other hand Bandra showed a 100%

product range. This shows that Haldirams is facing more competition in B division as

compared to A division.

Schemes:

Schemes are not given to any retailer in the B division also.


CHAPTER 11

OBSERVATIONS & FINDINGS

During the research we observed that:

Haldirams products are divided into two categories: Division A and Division

B. A division plays a vital role in generating sales for the company as

compared to that of B division. Out of the total sales generated approximately

60% comes through A division.


Division A products are not facing much competition in the market. Garden is

the only competitor for these products. Division A products are dominating

the market in Zone 3.


Product availability and product range of Haldirams product is very good in A

division. Products are available in almost all ranges as described in the graph.
Haldirams products are sold more compared to competitors in A division

showing their dominance in the market. This is due to the brand image which

has got created in the minds of people over the years.


In case of Division B situation is different. Haldirams products are facing

tremendous competition from competitiors. The main competitors are Balaji,

Garden and Leher.


Product availability and product range of Haldirams products is poor in

Division B in the surveyed area.


Balajis products are sold more in Division B due to its large quantity and

better retailer margin.


At some places, Haldirams products face competition from retailers own

home made products. This poses a threat to them.


Haldirams salesman visits once a week to take the orders from the retailers.

But retailers are demanding more visit per week as the shelf life of product is

less. At some places salesman doesnt visit on a regular basis which is


affecting the companys image in the market. Retailers are not ready to keep

their products because of irregularity in visits.


Distributor gives margin of 15 -20% to the retailer. Retailers are complaining

that this is very less as compared to their competitors. Garden gives 30-35%

margin on their products to the retailers. Balaji gives 20-25% margin on their

products to the retailers.


Delivery of products is done on time except in a few areas.
There was no complaint of overcharging of products by retailers. They were

happy with the billing process. But retailers were demanding that distributors

should give them products on a credit basis.


Quantity of Haldirams products is less as compared to its competitors like

Garden and Balaji. This is also the reason why retailers and customers prefer

other brands and not Haldirams. Haldirams 1 kg products are sold more and

it has got a lot of demand in the market.


In some areas distributors keep on changing. This creates confusion in the

minds of the retailers.


Distributors do not provide schemes to the retailers. Retailers are not at all

happy about it.


Replacement is a big problem in some areas like Khar, Bandra, Vile parle in

Division A. In these areas products are not getting replaced on a regular basis.

But in Division B replacement is not a big issue. Company gives replacement

of damaged and expired products only. Retailers are also demanding the

replacement of rat bite products which doesnt fit into the companys policy.
Haldirams products are displayed well in almost all retail outlets attracting

attention of customers. Retailers are demanding display racks to arrange it

more appropriately.
Packaging of Haldirams products is very good as compared to its competitors.

They are using aluminium foil for packaging which has increased the shelf life

of the product.
Retailers were overall satisfied with Haldirams products and services in

Division A as we can see in the graphs. But satisfaction level was low in

Division B as compared to Division A due to above mentioned reasons.


Many retailers were complaining that there is no credit give in this era of

credit.

CHAPTER 12

SWOT ANALYSIS

STRENGTHS

Trusted and dominant Market player

It has been in existence since 1937. It supplies the Traditional Namkeen. It is the first

company to brand namkeen products. It is the only National level namkeen brand,
available all over India. Over a period of time the Haldirams group has emerged as a

household name for ready to eat snack in India.

Excellent brand awareness

Brand awareness is a gauge of marketing effectiveness measured by the ability of a

customer to recognize and/or recall a name, image or other mark associated with a

particular brand. Most people are willing to try a new product. If they are impressed,

they will trust the company and build a loyalty towards it. Since Haldirams is in

existence from 1937 and having a first mover advantage it has an excellent brand

awareness among the consumers and retailers. It has been successful in doing it.

Good and attractive packaging

Packaging is a very important marketing strategy to glamorize your product in order

to attract the consumers attention. Having attractive packaging doesnt mean you

should neglect quality either. Haldirams is known for its quality.This group also

pioneered new ways of packing namkeens. They use aluminium foils for packing. Its

packaging techniques increased the shelf life of namkeens.


Good image position

Positioning means the process by which marketers try to create an image or identity in

the minds of their target market for its product, brand or organization. Haldirams has

positioned themselves as a good quality and hygienic product.

Good taste

Haldirams satisfies generally accepted social or aesthetic standards of namkeens and

sweets. Hence it is known for the taste of its products.

Good variety

Haldirams has a large variety of products such as:

Indian Sweets, Namkeens (Savouries), Salted Snacks, Vermicelli, Pasta & other ready

to eat snacks etc

Availability of brand almost in all the outlets

Due to a very good distribution channel of Haldirams, the products are available

almost all the outlets.

Products for all age group

Haldirams products are not made for any specific age group. These products can be

consumed by any age group people.


WEAKNESSES

Higher Price

The products of Haldirams have a higher price as compared to its competitors. The

customers therefore prefer the competitors products over Haldirams.

Family Run Business

It has been made professional for the past few decades; but, the business has now

been divided between the 3 brothers, leading to a decline in the value of the company,

and co-operation between the 3 brothers is difficult.

Sale pushing of other brands.

A push promotional strategy involves taking the product directly to the customer via

whatever means to ensure the customer is aware of your brand at the point of

purchase. The competitors of Haldirams such as Garden, Lehar, Balaji etc. are using

the push strategy to increase their sales.

Schemes are not given to retailers

The distributors do not provide any schemes to the retailers. Schemes act as a

motivator to sell the products. Since schemes are provided by the competitors of

Haldirams, it acts a hindrance in the companys growth.

Fewer profit margins of Haldirams products over other brand.

Haldirams is providing margin of approximately 15-20% to retailers which is less as

compared to the competitors who provide a margin of above 25%.


Promotional strategy

The promotional strategies implemented by Haldirams are weak as compared to its

competitors.

OPPORTUNITIES

Introducing New products

Getting an all new variety of products that can eat market share of competitors.

Proper Schemes

If schemes are introduced for the distributors as well as the retailers, it may act as a

motivator to increase the sale of the products.

Increasing the profit margin for retailers

The current profit margin provided to the retailers is approximately 15-20%. If this is

increased to 25% it will help the Haldirams products to survive in the competitive

market.

THREATS

Competition from other brands

The company faced tough competition not only from sweets and snack food vendors

in the unorganised market but also from domestic and international competitors like

Garden, Bikaji, Lehar and Balaji.


CHAPTER 13

SUGGESTIONS

The distributors should give products to the retailers on credit basis.


There should be an increase in grammage of products.
The distributor should provide schemes to the retailers to increase the sale.

During our study we found that many retailers were interested in schemes.

Thus, by providing schemes the company can increase the sales.


Display rack should be provided to retailers to arrange the products more

appropriately and make them visible for the customers


Replacement must be provided on outdated stock on time. This will allow the

retailer to remove the old outdated stock and order new stock.
When a new product is launched samples should be provided to the retailers

for demonstration of the product.


The number of visits of the salesman should be increased as the shelf life of

product is less. This will help the company to increase the sales.
The margin give on the product should be increased to make it more

competitive to withstand the pressure of competition.


The distributor should not be changed frequently. This will help the retailer to

maintain good business relationship with distributor and to increase the sales.
The production of 1kg packets should be increased as their sale is more.
Timely feedback should be collected from the retailer about the distributor

service.

CHAPTER 14

LIMITATIONS OF THE PROJECT


1) Some of the respondents were totally unresponsive and were not ready to

cooperate.

2) Due to none availability of concerned people questions remained unanswered.

3) Some respondents were too busy to entertain us.

4) Biasness is the most serious limitation.

Although measures have been taken to reduce the biasness but complete elimination

of biasness is impossible.

6) The reliability of the data to a great extent is dependent on the honesty and co-

operation of the respondents in providing the information.

Thus, reliability and validity of data collection through survey method is not always

without doubt.

Due to above limitations the findings may not be hundred per cent accurate.
CHAPTER 15

CONCLUSION

There is high level of awareness about Haldirams products amongst the retailers.
Schemes and credit facility should be given to the retailer to keep them interested

in Haldirams product and to increase the sales.


Regular feedback from retailer can help company to maintain good business

relationship with them and to know the new trends in the market.
From the data collected it is quite clear that while promoting any brand the

foremost considerations are good demand and good margin followed by regular

supply and brand names.


CHAPTER 16

SUCCESS STORY

We were given a task to find out the gaps in the market. To find out these gaps we did

a market survey. We visited various retail outlets in various areas where Haldirams

products were not available. We convinced the retailers to sell Haldirams products.

Thus at the end of the task the number of new outlets opened was as follows:

Distributor Name Area Number of New Outlets


Shree Charbhuja Malad + Goregaon 22
ShivamPharma Kandivali 22
Simran Enterprises Borivali + Dahisar 39
CHAPTER 17

ANNEXURE I QUESTIONNAIRE

The questions generally asked to achieve the desired objectives were:-

1) Name of the shop

2) Name of the contact person

3) Contact number

4) Are you satisfied with distributors service?

5) Do you get any scheme from the distributor?

6) Comparison of product availability between Haldirams and its competitors.

7) How many products of Haldirams are available in the retail outlet?

8) Are the Haldirams products displayed properly in the outlet?

9) Is there any problem in replacement of Haldirams products?

10) Feedback

The above mentioned questions were asked to the retailers of the surveyed sample

market and data collected was analysed to come to any conclusion.


CHAPTER 18

BIBLIOGRAPHY

Books and Articles

Kumar, A. The distribution channel of Haldiram and market potential and

suggest strategies to increase its Market share. Research Report, Institute Of

Information Technology and Management, New Delhi.


Sabir. Management research project
Jha, K., (2008). A Project on Haldirams product mix. Deen Dayal

Upadhyaya College, University of Delhi


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