HALDIRAM’S – A Trend Setter

BY-

ANKIT SHARMA

MAYANK JAIN

NIKHIL KUMAR MISHRA

PRASHANT PANDEY

RIDHI ARORA

SAQUIB ALI

BY-

ANKIT SHARMA

MAYANK JAIN

NIKHIL KUMAR MISHRA

PRASHANT PANDEY

RIDHI ARORA

SAQUIB ALI

Haldiram’s- an introduction• Haldiram’s, the brand name that is always associated

with quality, product and service. It took more than six decades to become the leading manufacturer of Indian savoury snacks.

• Haldiram’s has been rightly termed as Taste of Tradition. Known for its unbeatable taste in Mithais and Namkeen segment, Haldiram is an household name now.

• Haldiram’s has grown both in domestic and international market. Today Haldiram’s is known for matchless quality, packaging, efficient supply chain management, distribution network and zero impurity.

• Haldiram’s came out with different products which suited the tastes of various ethnic and geographical groups.

History of Haldiram’sStarted from a small shop in Bikaner in 1937 by

Ganga Bishen Agarwal, (popularly known as Haldiram).

Bhujia sev- very popular among the residents of Bikaner.

In 1941 the name Haldiram’s Bhujiawala was used for the first time.

Subsequently reach extended 1958 to Kolkata and further to west India & never looked back.

1983 opened shop in Chandni Chowk the main hub of commercial centre in Delhi.

Prime focusing was on sweets & namkeens.It was lead by three brothers Shri Moolchand, Shri

Satyanarain and Shri Rameshwar

The people behind the success

Shivkishan Agarwal (67), Rajendra Agarwal (42) and Avin Agarwal (21) chairman of Haldiram’s

Manohar Aggarwal

Shiv Ratan Aggarwal

India’s Food Industry- a bright future ahead…

India is the world's second largest producer of food next to China.Fruits & Vegetables, Fisheries, Milk & Milk Products,

Meat & Poultry-important sub-sectors of the food processing industry.

Indian food industry –contributing 17% of the GDP.

Growing at the rate of 13% per annum.Huge market potential for Indian packaged food

industry.Indian packaged food industry is totally dominated

by companies like Frito and Lay, Haldiram’s Bhujiawala, and others like Nathu’s, Bikanerwala, Nirulas, Pizza Hut etc.

Market share of Haldiram’s in Food Processing Industry

Frito Lay50%

Haldiram's30%

Others20%

Segmentation, Targeting and Positioning

SEGMENTATIONMarket segmentation: dividing market into

distinct groups with distinct needs, characteristics, or behaviours, who might require separate products or marketing mixes.

TYPES OF SEGMENTATION1.Geographical segmentation2.Demographic segmentation3.Psychographic segmentation4.Behavioral segmentation

1. Geographical segmentation

Haldiram’s has its operations across India (in different states and metros) as well as across the globe with varying population density and climate.

1.  U.S.A.

2. U.K.

3.  Germany

4.  Spain

5.  Holland

6.  Switzerland

7.  France

8.  Italy

9.  U.A.E.

10. Kuwait

11. Saudi Arabia

12. Australia

13. New Zealand

14. Japan

15. Sri Lanka

16. Thailand

17. Singapore

18. Philippines

19. Nepal

20. Botswana

21. West Indies

2. Demographic segmentation

Variables are –OccupationEducationReligionRaceGeneration

AgeGenderFamily sizeIncomeNationality

Haldiram’s primarily target the AGE and INCOME segments by providing their products to the target customers at affordable prices. There are variety of prices available for different packages.

Majority of people purchasing Haldiram’s product are families, followed by young students and then couples and others.

3. Psychographic segmentationGrouping people according to attitudes,

value, and lifestyles Activities, interests and opinions (AIO)

surveys are one tool for measuring lifestyle.Divided buyers into different groups based

on Socio-Economic classification, Lifestyle and Personality.

The products and services offered by Haldiram’s cater mostly to the middle income group people.

4. Behavioral segmentation Dividing the market groups on the basis on

variables such as-1.Occasions- majority of Haldiram’s sale of

sweets takes place during the festive season of Rakhi, Diwali, and Holi.

2.Benefits- the benefit of taste. The taste is same across all Haldiram’s outlets.

3.User-status- customers are either potential users, first time users or regular users.

TARGETING The process of evaluating segments and

focusing marketing efforts on a country, region, or group of people that has significant potential to respond

CHOSING A TARGET MARKETING STARTEGY Considerations include:

Company resourcesThe degree of product variabilityProduct’s life-cycle stageMarket variabilityCompetitors’ marketing strategies

Target marketing strategy that should be followed by Haldiram’s Anticipating consumer requirement Introducing new flavors in timely intervals Place the products near the counters to

persuade impulsive purchase Make the packaging appealing to the

consumers The pack can be designed as a container

which can be used by the consumers in future with Haldiram’s branding on it

Never compromise on the quality and taste of the product

POSITIONINGThe way the product is defined by consumers on

important attributes - the place the product occupies in consumers’ minds relative to competing products relative to competing products

Locating a brand in consumers’ minds over and against competitors in terms of attributes and benefits that the brand does and does not offer

Positioning involves implementing our targeting.For example, Haldiram’s has chosen to position itself

as a maker of namkeens, sweets and fast food through its chain of restaurants.  Haldiram’s has done a lot through its advertising to promote itself, through huge banners at the counters of its restaurants.

Positioning also involves developing the right marketing mix- which includes the 4 P’s of marketing

PRODUCTPRICINGPLACE

PROMOTION

Haldiram’s Marketing Mix

PRODUCTS Wide product range (30 varieties of

“namkeens” (salty snacks) from one manufacturing unit alone!), customized for local tastes

First Indian company to brand namkeensHigh quality and hygiene standardsCompanies like Haldiram’s sell more than one

product. A product mix of any company is the set of all products and items a particular seller offers for sale.

A product mix can be classified accordance to width, length, depth and consistency

PRODUCT PORTFOLIO

Haldiram’s has following basic modules :-

Restaurant lunch/dinnerPacked namkeenSweetsCustomized productsBakery and cookiesDrinksSavories

Products offerings can be divided into 4 categories-

1. Core product Basic product that produces high sales

volumes and are highly promoted with low margins because they are viewed as undifferentiated products. Haldiram’s core products include their namkeens and sweets products.

2. Staples Items with lower sales volumes and no

promotion. They yield somewhat higher margins.

Haldiram’s staple products include bakery and cookies.

3. Specialties Items with lower sales volumes but might

be highly promoted. Customized gift packs, sweets and some drinks are offered on special occasions like diwali, rakhi and holi only and account for very sales but are highly promoted.

4. Convenience items Peripheral items that sells in high volume

but receives less promotions. People tend to buy them when they buy

the core products. These items carry higher margins. Some of the products offered by Haldiram’s in thid category include their papads range, sherbets and minute khana. These are among least promoted products but offers higher margins to the company.

PRICINGCompetitive prices to penetrate the unorganised

market Prices varies according to weights and type of namkeens and raw materials Launched in multiple sizes, including 30 gram packets at Rs. 5Haldiram’s effectively lowered the price per gram in the 200-800 gms segment where the bulk of their consumers are, thereby ensuring higher satisfaction for this market segment.

PACK WEIGHT

PRICE (in Rs)

30 gms 5

85 gms 10

180 gms - 250 gms

18-35

400 gms - 500 gms

40-70

1kg 95-200

PLACE (Distribution) Strong network: C& F agents

"distributors " retailers (nearly 1 million)Margins to ensure goodwillCompany-owned showrooms, online sales

(region-specific websites)Haldirams at these outlets sell 96 varities of dishes and 77 varities of sweets.

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

Extensive distribution network: 6 lacs outlets for the Delhi and Nagpur

Brand pull in the marketHaldiram’s comprises of three unit one in

each New Delhi, Kolkata and Nagpur along with its operation in Bikaner in Rajasthan

Internet marketing for consumers in India and Abroad. India Abroad

Margins provided to intermediaries

Product Retailer Category

Distributor Margin

Trade Margin

Namkeens 6 – 8% 12- 20%

Sweets 5 – 8% 16- 22%

Wafers, Chips 5% 15%

Papads 5 – 7% 13- 15%

Trade margins ranges depending on the item.

PROMOTIONTied with the ‘Profile Advertising’ Attractive posters, brochures and mailers Press and outdoor media, (taste and appetite)Hoardings, signage and posters to disseminate

awareness Punch line for Haldiram’s products is, ‘always in

good taste’. Brand Mantra : Communicated to Employees

Mailers sent to loyal customers and important corporate clients

Retail outlets of Haldiram’s give importance to POP displays.

HALDIRAM’S ABROADExporting to USA, UK, Australia, Middle

East & Far East Countries, Germany, Philippines, New Zealand, Nepal, etc.

Success over geographical boundaries hygienically prepared Indian cuisine :Opening of restaurants abroad

Ethnicity angle in the marketing efforts differentiated Haldiram’s and enabled it to sustain itself from threat of some major players in the market- Frito-Lay, McDonald’s and Pizza Hut.

Haldiram’s initiatives helped it to uniquely position

its brand among the mind’s of its customers. Haldiram's also gained an edge over its

competitors by minimizing promotion costs. To the consumers having inclination towards

Indian meals, Haldiram’s offers ready to eat high quality readily available Indian snacks, with excellent packaging which provides increased shelf life to its products.

An analyst said, "Haldiram once was just another sweet maker but

it has moved into trained brands first by improving the product quality and packaging. Through its clever products and brilliant distribution it had moved into the star category of brands."

Awards receivedInternational Food Award by the Trofeo

International Alimentacion of Barcelona, SpainThe Keshalkar Memorial Award by the All

India Food Preservers AssociationThe International Award for Food &

Beverages by the Trade Leaders Club in Barcelona, Spain

ALL THESE AWARDS AND ACHIEVMENTS ENHANCED THE HALDIRAM’S POSITIO IN THE FOOD INDUSTRY FURTHER

HALDIRAM’S - Strengths

The company offered a wide variety of traditional Indian sweets and snacks at competitive prices that appealed to people belonging to different age groups.

Marketing techniquesPromotion techniquesThe company employed the best available

technology in all its manufacturing facilities in India. Given the increasing popularity of Haldiram's products, the group planned to expand its operations.

HALDIRAM’S - Weakness

Split in the family. Each member is working in his respective region separately.

This split had resulted in aggressive competition among themselves for a higher share of domestic and international markets.

Haldiram's lagged behind competitors in the area of customer service. A report in Deccan Herald said that Prabhu Shankar Agarwal, the owner of the Kolkata unit, was arrested on charges of manhandling customers only reiterated this opinion. The report also mentioned that few of the company's restaurants did not possess the minimum requirements, such as sufficient seating arrangements and adequate parking lots.

HALDIRAM’S - Threats

The company faced tough competition not only from sweets and snack food vendors in the unorganized market but also from domestic and international competitors like SM Foods, Bakeman's Industries Ltd, Frito Lay India Ltd.(Frito Lay) and Britannia Industries Ltd.

Frito Lay India Ltd. (Frito Lay), one of Haldiram's major competitors, was expanding its market share. Instead of directly competing with the market leader Haldiram's, the company launched innovative products in the market and backed them with heavy publicity.

Diversifying into new innovative productsIncrease the number of outlets Home DeliveryExplore the possibility of opening the outlets in

foreign marketCustomer serviceAnticipating consumer requirement Introducing new flavours in timely intervals Never compromise on the quality and taste of the

product Create an extensive advertisement campaign

which will reach out to consumers and deliver the desired message thus re-enforcing the product into the market

SUGGESTIONS