ASSIGNMENT

OF
RETAIL MANAGEMENT

“HALDIRAM’S”

SUBMITED TO:
PROF. RAHUL DRAVID

SUBMITTED BY:
BIMALPREET SINGH-ROLL NO.16
LAKSHAY VAID-ROLL NO.38
SEC-FF5
IIPM, SATBARI
 INTRODUCTION

BACKGROUND:

“HALDIRAM” – a name associated with discerning consumers for sweets and namkeens
for past six decades in India and abroad. It made its modest start in the beginning of way
back in 1941 in Bikaner, a state of Rajasthan. The brand name HALDIRAM
BHUJIYAWALA was introduced during pre-partition era – 1941, subsequently the reach
was extended to eastern pert of India i.e., Kolkata in 1958, further consolidated to
western India also at Nagpur in 1968 and from there it never looked back and ventured
first major step in this direction by opening up a in Chandni Chowk in 1983, the main
hub of commercial centre is in Delhi. The prime focus was to serve sweets and namkeens
amongst direct consumers and the trade.
Haldiram Originated in blue year 1902 at Bikaner in Rajasthan. During its earliest year it
was lead by three brothers Shri Moolchand , Shri Satyanarayan and SHRI Ramesawar.
Shri Moolcahnd and his four sons namely Shri Shiv Kishan, Shri Shiv Ratan, Shri
Manohar Lalan and Shri Madhusudan diversified into different territories of India.
Encouraged by tremendous response of consumers, ‘HALDIRAM’ decided to go for up-
gradation on technology, packing, production etc. with the installation of plant machinery
of order of best available state –of –the art technology and sophistication. Through dint of
hard work, complete dedication, uncompromising quality, - ‘HALDIRAM’ became a part
of each family.

COMPANY PROFILE
Over a period spanning six and a half decades, the Haldiram's Group (Haldiram's) had emerged as
a household name for ready-to-eat snack foods in India. It had come a long way since its
relatively humble beginning in 1937 as a small time sweet shop in Bikaner, in the Rajasthan state
of India. In 2001, the turnover of the Haldiram's was Rs 4 billion.
The group had presence not only in India but in several countries all over the world. Till the early
1990s, Haldiram's comprised of three units, one each in Kolkata, Nagpur and New Delhi. The
Agarwals family that owned Haldiram's was always conscious of the need to satisfy customers in
order to grow their business.

The company offered a wide variety of traditional Indian sweets and snacks at competitive prices
that appealed to people belonging to different age groups. Haldiram's had many 'firsts' to its
credit. It was the first company in India to brand 'namkeens'. The group also pioneered new ways
of packaging namkeens.
Its packaging techniques increased the shelf life of namkeens from less than a week to more than
six months. It was also one of the first companies in India to open a restaurant in New Delhi
offering traditional Indian snack food items such as "panipuri," "chatpapri," and so on, which
catered to the needs of hygiene conscious non-resident Indians and other foreign customers. Since
the very beginning, the brand 'Haldiram's' had been renowned for its quality products.
The company employed the best available technology in all its manufacturing facilities in India.
Given the increasing popularity of Haldiram's products, the group planned to expand its
operations. However, some analysts felt that Haldiram's still had to overcome some hurdles. The
company faced tough competition not only from sweets and snack food vendors in the
unorganized market but also from domestic and international competitors like SM Foods,
Bakeman's Industries Ltd, Frito Lay India Ltd.(Frito Lay) and Britannia Industries Ltd.
Moreover, the group had to overcome internal problems as well. In the early 1990s, because of
the conflict within the Agarwals family, Haldiram's 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.

BUSINESS MODEL
Haldiram’s is a family business structure of which Hierarchy is given below:

HIERARCHY OF
Gagan
(iii)Key person involved in Business:
PANKAJ AGARWAL is Director of Haldiram Manufacturing Company Limited
(HMCL), Delhi.
He had done his MBA from Switzerland before entering his family business. He learns
everything on his own.
He understands the need of the customers in terms of taste preferences.
RAMESHWAR MOO
KOLKATA NA
He keeps the track of all manufactured products.
Type of organization:
They coincidently entered into restaurant business, as their main expertise is in Indian
sweets and snacks.
They have 3 units in Delhi working in traditional fashion. Professionalism is missing, as
job is more labor intensive. Prohibit hiring any food technologist in fear of disclosure of
their recipes.

PROCESS:

MARKTING MIX:
Products
Haldiram's offered a wide range of products to its customers. The product range included
namkeens, sweets, sharbats, bakery items, dairy products, papad6 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.
Haldiram's 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, Haldiram's 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 Haldiram's compete effectively in a
market that was flooded with a variety of snack items in different shapes, sizes and flavors.
Pricing
Haldiram's offered its products at competitive prices in order to penetrate the huge unorganized
market of namkeens and sweets. The company's pricing strategy took into consideration the price
conscious nature of consumers in India.
Haldiram's 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.
Place
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. While the Delhi unit of Haldiram's had 25 C&F
agents and 700 distributors in India, the Nagpur unit had 25 C&F agents and 375 distributors.
Haldiram's 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
Haldiram's, 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.
Haldiram's products enjoyed phenomenal goodwill and stockists competed with each other to
stock its products. Moreover, sweet shops and bakeries stocked Haldiram's products despite the
fact that the company's products were competing with their own products. Haldiram's also offered
its products through the Internet. The company tied up with indiatimes.com, a website owned by
the Times of India group8 to sell its products over the Internet. Haldiram's 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 Haldiram's 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 Tamilnadu). These websites competed on issues such as delivery
time, which varied between 48 hrs 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).
Promotion
Haldiram's product promotion had been low key until competition intensified in the snack foods
market. The company tied with 'Profile Advertising'9 for promoting its products. Consequently,
attractive posters, brochures and mailers were designed to enhance the visibility of the Haldiram's
brand.
Different varieties of posters were designed to appeal to the masses. The punch line for
Haldiram's products was, 'Always in good taste.' Advertisements depicting the entire range of
Haldiram's sweets and namkeens were published in the print media (magazines and newspapers).
These advertisements had captions such as 'millions of tongues can't go wrong,' 'What are you
waiting for, Diwali?' and 'Keeping your taste buds on their toes.'
To increase the visibility of the Haldiram's brand, the company placed its hoardings in high traffic
areas such as train stations and bus stations. Posters were designed for display on public transport
vehicles such as buses, and hoardings, focused on individual products were developed. Captions
such as 'yeh corn hain' (this is corn), 'chota samosa - big mazaa' (small samosa 10 - big
entertainment), 'yeh Kashmiri mix khoob jamega' (this namkeen item will gel well) and 'oozing
with taste' (for Rasgoolas) promoted individual products.
For those customers who wanted to know more about Haldiram's 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
Haldiram's product promotion.
Since namkeens were impulse purchase items, attractive packaging in different colors influenced
purchases. Haldiram's 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 Haldiram's 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, Haldiram's products were sold in attractive
looking special gift packs. The showrooms and retail outlets of Haldiram's gave importance to
point of purchase (POP) displays. Haldiram's 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 Chats11.'
Posters containing a brief account of the history of Haldiram's, along with pictures of its products,
were also on display at these showrooms. Haldiram's 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 Haldiram's 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.

To cater to NRI's and foreign tourists, who hesitated to consume snack foods sold by the roadside
vendors since it was not prepared in a hygienic manner, the Haldiram's restaurant located in
South Delhi used specially purified water to make snack foods including pani puri and chat
papri12. These promotional strategies helped Haldiram's to compete effectively with local
restaurant chains such as Nathus, Bikanerwala and Agarwals and with western fast food chains
such as McDonald's and Pizza Hut.
Positioning
The above initiatives helped Haldiram's to uniquely position its brand. Haldiram's also gained an
edge over its competitors by minimizing promotion costs. Appreciating the company's efforts at
building brand, an analyst said, "Haldiram once was just another sweet maker but it has moved
into trained brands first by improving the product quality and packaging. Through its clever
products and brilliant distribution it had moved into the star category of brands."13
Haldiram's earned recognition both in India and abroad. The Nagpur unit of Haldiram's
was conferred the International Food Award by the Trofeo International Alimentacion of
Barcelona14, 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.

GROWTH PLAN
In 1992, when ‘HALDIRAM’ turned itself into a group segment, a most sophisticated
Manufacturing centre cum showroom was established at Main Mathura Road, New Delhi
under the banner ‘HALDIRAM MANUFACTURING COMPANY LIMITED’ which
was a run away success. The Haldiram group three sister concerned established at
Bikaner, New Delhi and Nagpur. All three are originated from ancestors in Bikaner,
Rajasthan. Now the three concerns operate in different states of India.

The New Delhi unit caters to Punjab, Haryana, Uttar Pradesh, and Bihar, Jammu
&Kashmir, Himachal Pradesh and part of Assam. The firm at New Delhi runs four firms
offering different products-

Haldiram Manufacturing Co. Ltd.: Namkeens

Haldiram Marketing Ltd. : Sweets

Haldiram Snacks (P) Ltd. : Papads

Haldiram India Pvt. Ltd. Syrups & Sharbats

The company also has three show rooms in Delhi, located at Main Mathura Road, Lajpat
Nagar and Chandni Chowk. These offer variety of fast foods as well as traditional foods.

Trust in quality is an obsession which is being enjoyed by million of families. The quality
of salty snacks and scrumptious sweets met the international standard and speak for itself.
To sustain in competitive market, “HALDIRAM” has endeavored stress on quality,
packing, shelf life, competitive price with special emphasis on consumers satisfaction and
its lingering taste is amongst the best available in the world. Haldiram showroom has
become the most sought after one and is catering to the choice of millions to their utmost
satisfaction with retention of trust reposed and presence felt. To say the least, amongst the
sweets and namkeens, we can modestly say “you name it-we have it”.
During 1993, preparation of different varieties and
flavors of syrups and crushes was undertaken under the brand name of “HALDIRAM”.
Its marketing was undertaken in the Northern region of the country and was well received
with success. Encouraged by the overwhelming response from the lovers of
“HALDIRAM’ the group decided to spread its wings in others part of Delhi to reach the
consumers more easily.
The group hence opened another Show room at Lajpat nagar on
the main road during March, 1999 which is being welcomed and appreciated by the
customers of South Delhi who have constraints to reach Matura road.
EXPORTS
“HALDIRAM” Group foresighted the growth potential in fast food industry which was
taking shape by leaps and bounds.
‘Namkeen’ was one of the areas which was most sought after and the group, without
lagging behind, had set up a most modern plant adjacent to the Show room at Main
Mathura road exclusively for the manufacture of ‘Namkeen’. This plant was set up in the
year 1997 under the stewardship of Mr. Pankaj Agrawal, a young dynamic entrepreneur
with flair of modern management, leadership, open vision, result orientation. By virtue of
Mr. Pankaj Agrawal, who is the managing director of HALDIRAM GROUP, the
packaging, quality, competitive pricing etc. has become the hallmark of ‘HALDIRAM’
Namkeen and with the installation of plant and machinery from U.S.A. the company also
started manufacturing potato products and has been able to get increased share of the
market amongst stiff competition.

Needless to say that the company is exporting its products to various parts of
the world viz. U.S.A., Canada, U.K., Europe, Middle East, Far East, Moscow, Australia,
Newzealand, Srilanka, Nepal, Japan, Thailand, etc. and are on the threshold of
penetrating other parts of the world.

It is encouraging to note that the group is receiving positive enquiries from amongst the
prospective clients abroad and is quite confident to meet their demand fully with positive
attitude, personalized service and with quality products. Continuous efforts are being
initiated to make sure that we reach the untapped markets abroad and earn foreign
exchange for our country.

FUTURE PLANS
Looking at the tremendous scope in the fast food industry though competition from
MNCs and other giants in the field, the group has an ambitious project on Delhi-Jaipur
Highway at Gurgaon to undertake manufacturing of whole range of products which will
house manufacturing facilities, restaurant, Show room etc. and will satisfy the customers
to their ultimate around the World, having edge over the others.

MISSION
Our perpetual consistent quality, best packing strategy, vast market coverage and the
number of years of experience have given us a cutting edge vis-à-vis our competitors.
Our natural ilk to improve our performance and quality with each passing year has taken
us way ahead of our nearest competitors. The people at HALDIRAM’s are very sensitive
and our customer friendly about the complaints, which infect is a rare occurrence from
the customers and dealers.

INTERNATIONAL MARKETS

COUNTRY

1) U.S.A
2) U.K
3) Germany
4) Spain
5) Holland
6) Switzerland
7) France
8) Italy
9) U.A.E
10) Kuwait
11) Qatar
12) Bahrain
13) Saudi Arabia
14) Australia
15) New Zealand
16) Japan
17) Srilanka
18) Thailand
19) Singapore
20) Philippines
21) Nepal
22) Botswana
23) West Indies
SWOT ANALYSIS
STRENGTH

1) The product has excellent brand awareness & a high quality image.
2) Good and attractive packing.
3) High Market Share
4) Availability of brand almost on all the outlets.
5) The company offered a wide variety of traditional Indian sweets and snacks at
competitive prices that appealed to people belonging to different age groups.
6) Marketing techniques
7) Promotion techniques
8) 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.

WEAKNESS

1) Consumer proximity to retail outlet.

2) Sale pushing of other brands.
3) Schemes given to retailers are not enough.
4) Less profit of margin of Haldiram product of other brand
5) Less advertisement.

OPPORTUNITY

1) By providing proper schemes Haldiram can increase its supply

2) By providing more profit margins Haldiram can increase its supply.
3) Increasing hygiene consciousness among people.

THREATS

1) Sale pushing.
2) 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.
3) 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.
 CONCLUSIONS

1) There is high awareness level for different Haldiram’s products amongst the retailers.

2) It was noticed that in most of the retailers are keeping Haldiram namkeens. Other
brand namkeens which also occupy a major share are Lehar, Crax, AND Bikano.

3) Market share of Haldiram namkeens is more than double of its competitors.

4) Majority of retailers promote Haldiram’s namkeen followed by Lehar, Bikano, and

Crax in that order.

6) Average annual sale come out to be highest for Haldiram ‘s namkeens followed by
Lehar, Bikano, local brand like namkeen , Raja, Shammi, Tingle, Shah, Aone, etc. also
have a significant share when clubbed together.

7) Brand awareness for Haldiram’s product is very high.

8) The main Consumer segment for Haldiram is upper and middle class but Lehar, Crax
and Bikano has consumer Segment for lower class too by having a packet of Rs 2 of 12
gm.

9) There is great demand of Rs 5 packet.

Bibliography:
Webpage- Google
Links-
1. en.allexperts.com/e/h/ha/haldiram's.htm
2. timesofindia.indiatimes.com/articleshow/19487200.c
ms
3. tripatlas.com/Haldiram