SIP Project for Submission

7/30/2019 SIP Project for Submission

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A Report

On

Amiras foray into the Indian snacks market

By

Vidhi Choraria

11BSPHH010942

IBS Hyderabad


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A Report

On

Amiras foray into the Indian snacks market

Submitted by-

Vidhi Choraria

11BSPHH010942

A report submitted in the partial fulfillment of the requirement of MBA Program of IBS

Hyderabad

Distribution list

Company guide: Faculty guide:

Mr. Yogesh Arora Dr. Sridhar Vaithianathan

General Manager- Sales Asst. Prof. (Operations)

Amira Foods India Ltd. IBS Hyderabad

Amira Foods India Ltd., Delhi

Date of submission- 4th June, 2012


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ACKNOWLEDGEMENT

I take this opportunity to gratefully acknowledge the assistance and contribution of the people

who had faith in this project. I would begin by extending my sincere gratitude to Mr. Karan A.

Chanana, Chairman, for giving me a chance to work with Amira Foods India Ltd.

I feel privileged to have worked with and enjoyed the support of my Company guide, Mr.

Yogesh Arora, General Manager (sales). I am deeply indebted to him for all the help I received,

without which this project could not have come to pass. He made available all the resources that

came handy in completion of this project. He took special interest in ensuring that I get ample

field exposure so that I could understand the intricacies of the business.

I am extremely thankful to my faculty guide, Dr. Sridhar Vaithianathan, Asst. Prof, IBS

Hyderabad. His constant guidance helped me overcome many barriers in the course of my study.

I am fortunate to have got such an encouraging guide who made me push my limits and strive forbigger accomplishments.

Last but not the least; I would like to give my sincere thanks to Mr. Rajiv Verma, Vice-President,

Amira Foods. India Ltd. Regular discussions with him regarding the progress of my project made

sure that I was on the right track. His guidance motivated me to give this project my best effort.


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Table of Contents

1. Cover page.012. Title page...023. Internship certificate..034. Acknowledgement. 045. Table of contents 056. Executive summary067. Introduction07

7.1 Background..11

7.2 Kellers model..12

7.3 Objective..13

7.4 Methodology14

7.5 Scope & limitations..15

8. Economy industry analysis168.1 Introduction to snacks industry....17

8.2 Growth in the snacks industry..19

8.3 Competitive analysis29

8.4 SWOT analysis................................ 30

8.5 Porters five force model................................. 31

9. Company analysis..329.1 About the company..34

9.2 Product portfolio......42

9.3 Award and recognitions.............................. 439.4 Market segmentation45

9.5 Promotion.46

10.Project specific analysis.4810.1 Market analysis (Phase 1).....70

10.2 Customer preference (Phase 2)......73

11.Conclusion & Recommendation7411.1 Conclusion....77

11.2 Recommendation.......78

12. Outcome/ Contribution.8013.Learning from SIP..8214.References..8415. Appendix...87


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EXECUTIVE SUMMARY

This project will bring to the fore the competition that exists in the Indian snacks market. The

project has been done for Amira Foods India ltd. which is one of the largest privately owned rice

companies of India. By introducing snacks to its portfolio it has forayed into an industry that isreplete with competition, both from the organized as well as the unorganized market. Therefore,

it became imperative to first study the competition and the various offerings by different

companies.

This project has been divided into two phases. In the first phase, I undertook a study of the

snacks market by visiting retail shops all over Delhi to get an idea of the snacks offered by

various companies, their promotion tactics, and their placement in the shops among other things.

A list of questions was prepared and by way of interacting with shopkeepers information was

sought. For this purpose, I divided Delhi into 5 zones namely- North, South, East, West and

Central. The rationale behind this division was to ascertain if there was any brand that was beingsold better in a particular region than the other. After having completed this study, I got a fair

idea of what all does a customer look for when he/she makes a purchase. This led me to conduct

the second phase of my project where a structured questionnaire was given to customers who

rated various variables on a 7 point Likert scale. A factor analysis was run on the data generated

to find out the correlation among the variables and also to find out which factor emerged as the

most important one.

Before starting the first phase of the project, I did a market analysis wherein I went to retail

shops and simply listed down the products offered by different companies. A comprehensive list

was generated where the following information was gathered- name of the company, pricing,number of brand offerings, different sizes available, form of packaging and promotional

schemes. This was solely done on the basis of observation. When I started the first phase of the

project, I was already well aware of the different offerings in the market. The task now was to

find out which player generated maximum sales, which variant was sold most and related

questions. This information was sought by way interacting with the shopkeepers as well as

customers who visited these shops and were looking to buy snacks. In order to make the findings

from the project cogent, I decided to include customers too in my area of study. Therefore, the

second phase was only targeted to the customers. The questionnaire covering 11 variables

emerged from the discussions with the retailers and customers in the first phase.

On the basis of the interpretations, Amira foods India ltd. will be able to -

Understand the buying behavior of consumers in all parts of Delhi. Decide which variant they should add to their current portfolio of 4 variants. Get an idea as to which variables like price, promotion and place among others; affect the

buying decision of consumers.


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INTRODUCTION


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BACKGROUND

Amira Foods India Ltd. is predominantly a manufacturer and exporter of rice. Looking at the

growth in the FMCG sector, the company decided to diversify its brand portfolio, the result of

which was Amiras foray into the Indian snacks market. The snacks are slated to be launched this

year. Amira has planned to launch 4 variants namely; Aloo bhujia, Bikaneri bhujia, Navratna

mix and Zabardast slims.

The various snacks had a soft launch in the metro cities of the country excepting New Delhi. The

leads from the soft launch indicated that consumers will accept this brand. In the initial days of

test marketing, when the consumers were asked a few things that they would like to change

about Haldirams snacks, three points came up which Amira cashed on. Consumers felt that

Haldirams snacks were too spicy and that they left a mint like taste on the tongue. Apart from

this, Haldirams snacks when taken in the hand leave behind oil. Amira tried to overcome all

these negative points and created less spicy and cholesterol free snacks. In a market where

Haldirams is almost synonymous with snacks, it is difficult to create a niche for a lesser known

company. Amira has outsourced its manufacturing to Chatarpur enterprises. They buy each

packet from chatarpur enterprises at Rs 19.

The first appearance that Amira snacks made in New Delhi was at the Ahaar Food Festival, of

which I was a part. The snacks were put up for sale at the exhibition. What the company wanted

to get were customer insights, sales was just a by product of the exhibition. I had the opportunity

to interact with customers and ask them how they liked or disliked the newly introduced snacks.

While most of them appreciated the taste some had minor issues regarding the taste. For some of

the customers, the decision whether to taste the namkeens or not depended on how spicy the

snacks were. Most people across India like their food to be spicy in moderate limits. Gujaratis

prefer it to be less spicy, whereas Rajasthanis prefer their food be very spicy. Among the retailers

that visited the exhibition, Walmart, Vishal Megamart and Big Bazaar expressed their

willingness to stock the snacks. However the price that these retailers charge to stock the snacks

could be a cause of cause. For instance, Spencers is charging 4L per SKU, which is deemed to

be too high.

All the snacks are priced at Rs 39 and the quantity offered is 150 grams. Compared to the other

brands available in the market, this price is high. Amira will have to go for regional pricing in

order to induce sales. Haldirams has a stronghold in North India, as such the prices in this part

of the country will have to be brought down. Also, the tax structure will have to be taken into

cognizance before setting out the price. Places that charge a tax of 13% or more can sell the

namkeens at Rs 39, and the ones than charge a tax of less than 13% can sell the namkeens at say

Rs 35. As such, for the namkeens to sell at Rs 39, South India should be targeted. Amira is

relaying on word-of-mouth publicity for its snacks. Advertisement in trade magazines is being

considered. Advertisement on televisions is not being considered due to the high costs involved.


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85% of the snacks are potato based and Amiras 4 variants are also potato based. This shows that

their products have huge potential. The idea was to focus on traditional Indian taste. Amira

wanted its snacks to be tasty and crunchy and more importantly, healthy. The snacks promise to

be zero trans fat and calories. They want to target those men and women, who work during late

night shifts, students who stay in hostels or paying guest accommodation. The snacks can serve

the purpose of mid break meals. The other purpose that the company sees is of these snacks to be

used while traveling distances.

Amira Rice is available pan India with about 122 distributors all over. As such, it has a strong

presence in both general and modern trade. The plan is to club namkeens with rice and create a

grocery combo to induce sales. It is also considering BTL activation for promotion.

Following are the 4 variants launched by Amira- Zabardast slims, Navratna mix, Aloo bhujia and

Bikaneri bhujia.

Understanding that the customers in especially Delhi are price sensitive and also the fact that a

wide range of choices are available in the market, my company guide, Mr. Yogesh Arora

(General Manager- Sales) handed this project to me where my study was related to

understanding the competition and also making recommendations to the company as regards

customer preferences.

All data collected for the study is first hand (primary). An all rounded analysis from both the

retailers as well as consumers perspective was needed; therefore this project has been divided

into two phases. In the first phase, I visited retail outlets all over Delhi and questioned retailers as

well as customers. The information was sought with the help of a disguised structured

questionnaire. For this phase, I divided Delhi in 5 zones. The rationale behind this segregation

was to find the presence of regional brands, say something that was sold only in the Eastern part

of Delhi and not in the Northern part. Following 5 zones were covered-

1. North Delhi - Timarpur, Model Town, Kamla Nagar, GTB Nagar, Pratapnagar2. West Delhi - Punjabi Bagh, Paschim Vihar, Rajendra Nagar, Patel Nagar, Tilak Nagar3. East DelhiBhajanpura, Yamuna Vihar, Preet Vihar, Gandhi Nagar


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4. South DelhiINA Market, Malviya Nagar, New Friends Colony Market, Saket, KailashColony

5. Central DelhiBengali Market, Shankar Market, Darya GanjEffort was made to keep a right blend of modern trade stores and general trade stores in the

study, to get as accurate results as possible. The questionnaire was designed on the followingattributes-

1. Most selling brand2. Most selling variant3. Best selling size4. Sales team performance

While seeking answers to these questions, I made sure that I allow the respondents to have a free

flowing conversation with me. That helped as some retailers gave me more information than I

demanded. This came in form of recommendations to the company I was conducting the surveyfor and also loopholes in the present brands that dominated the market. Interaction with them

helped me get a good hold of the Snacks market. Apart from this, I included consumers too in

this study. When I went to big retails stores like Reliance Select, Spar, Big bazaar and the like; I

tried to overhear the conversations that customers had between themselves while making a

purchase decision related to namkeens. This helped me to get a stronghold of consumer

preference. I got an insight into the considerations that lead consumers into choosing one brand

over another. But simply observing them was not enough to get an all-round idea of customer

preference. This was the idea that led me to move to the second phase of the project.

In the second phase, my interviewing population consisted of only end-consumers - housewiveswho buy namkeens for the entire family, kids who buy it as impulsive purchase, working people

who consume it while working late night and people who team up their drinks with snacks. An

online questionnaire was posted and responses were automatically recorded. Some

questionnaires were filled in hard copy too. The responses were then transferred to a software

called SPSS, and a factor analysis was run on the same. The attributes that were covered in the

questionnaire emerged from the interaction with retailers and consumers in the first phase.

Following attributes were covered

1. Price2.

Promotion

3. Size4. Flavours5. Target group6. Convincing power of the shopkeeper7. Shelf life8. Health


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9. Purchase10.Availability11.Packaging

On the basis of the final interpretations and outcome of this project, Amira Foods India Ltd. willbe able to

Analyze which is the best selling brand Analyze which is the best selling size How often should the companys sales team visit the retail outlets What factors affect consumer purchase the most Which variant should they launch next


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Kellers Model of brand equity

Brand equity is a phrase used in the marketing industry to try to describe the value of having a

well-known brand name, based on the idea that the owner of a well-known brand name can

generate more money from products with that brand name than from products with a less well

known name, as consumers believe that a product with a well-known name is better thanproducts with less well known names. Kellers model shows the different levels of relationship

that consumers share with a brand. Every brand unquestionably strives to reach the equity

stage. Following analysis has been done with respect to Amira snacks-

Who are you - Amiras a manufacturer supplier and exporter of Rice. It recently diversified its

product portfolio by foraying into the snacks segment

What are you - A new entrant in the snacks food business. Offers 4 variants namely- Zabardast

Slims, Aloo bhujia, Bikaneri bhujia, Navratna mix. These snacks are available at a price of Rs 39

in 150 grams attractive packages.

What about you - Unlike other snacks that taste too spicy and and leave oil in the hand, Amira

has taken special care to ensure that their snacks dont taste too spicy. Also the snacks are

cholesterol free.

What about you and me - This is the stage that every brand wants to reach. At this stage

customers have formed an emotional relation with the brand. As such they are willing to pay that

extra price if the need be because they are completely satisfied with the performance of the

brand. To reach this stage, every brand will have to establish itself strongly at the bottom three

stages of- salience, performance & imagery and judgements & feelings.


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OBJECTIVE

The aim of the project is to fulfil the following objectives-

To find out which is the best selling brand and its unique selling point To find out which are the best selling variants To find out what is it that customers keep in mind while buying a pack of namkeens To find out what way can Amiras snacks have an edge over other players To find out which is the best selling size To find out the presence of regional brands To find out how often should the sales team of a company visit a retail store To find out whether customers are price sensitive or not? This is essential because this

will help

The company take a decision regarding its pricing. At present the snacks are priced at Rs39 which is deemed high by the company itself.


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METHODOLOGY

Type of research design

Exploratory research design will be followed to find out all the information related to snacks.Only retailers based in Delhi have been considered for the study

Information needed

The data that I need for this project will be collected through primary sources.

Data collection from Primary sources

Disguised structured questionnaire will be used to sought data from the retailers and customers in

the first phase. In the second phase structured questionnaires will be used to gather information

from the end consumer.

Instrument for collecting data

The instrument used to collecting data is questionnaire.

Population

For phase one, the population consists of retailers all over Delhi. For the second phase, public at

large has been included to conduct the survey.

Sample size

For phase one, a sample size of 100 retailers is taken. For phase two, a sample size of 120

respondents is taken.

Statistical tool used

SPSS

Analysis

Factor analysis along with pie-charts and column graphs.


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SCOPE AND LIMITATIONS

The study has been accomplished under the following limitations-

The research is completely driven by the responses of retailers and consumers.Incomplete information by them may have skewed the analysis a fair bit.

While most retailers co-operated in answering the questions, some indulge din givingblanket answers. In that situation I may have asked leading questions and that could have

affected the analysis.

Lack of secondary data regarding the competing brands might have given a not sosatisfactory picture of certain brands.

This study is limited only to Delhi. All findings, competitive analysis have been derivedby visiting retail outlets in Delhi alone.

Only a certain number of retail stores could have been covered owing to the timeconstraint of 3 months.


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ECONOMY INDUSTRY ANALYSIS


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Introduction to the snacks industry

Snacks are a part of consumer convenience or packaged food segment. According to an APEDA

survey, the Indian snacks market offers 1000 snack items and 300 types of savouries. Namkeen1

as an ethnic food category is fast growing in India and the global world. The snacks industry has

been growing at 10% for the last three years. India is one of the largest snacks market in AsiaPacific and contributes 3% of the total market. Snacks are described as the small quantity of

food that is eaten between proper meals. Savory snacks have been part of Indian food habits for

years now. Consumers associate snacks with time-pass. There is no particular time for snacks;

consumers generally have it at tea-time. Namkeens are seen as hunger quencher, take-away items

which are consumed fast without being stored much. They are almost a must have item on the

snack platter on family occasions.

The Indian market is replete with a plethora of snacks players. The snacks market is divided

between branded and non- branded players. The branded market constitutes 40% of the market

share whereas non-branded market (regional players) constitutes the remaining 60%. Also,branded snacks are available at 25% higher price than non-branded ones. The branded sector is

growing at 25% annually. The consumer today has a wide array of snacks to choose from. Not

only are these snacks available in myraid flavours, they come in different sizes too, to suit the

needs of different customers. When a customer buys a pack of snacks for its family, a size of 400

gm or 1 kg is likely to be bought. If a customer buys a pack for individual consumption, he/she is

more likely to buy a size of 22gm/ 48gm/ 200gm. Of the wide range of snacks available, potato

based snacks constitute a sizeable segment of the snacks industry- a whooping 85%. Customer

has a choice to make between branded and non-branded snacks. Non-branded snacks are mostly

regional, in Delhi itself certain local brands will be found only in East Delhi whereas some

others will be found in say, North Delhi.

1Namkeen is a Hindi word used to describe the savory flavor. It is derived from the word namak, meaning salt. In this project, namkeens and

snacks will be used interchangeably.


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Growth in the snacks industry

India has a relatively young population with 55% of its population in the age group of 20-59

years. This group is also high in consumption, therefore this trend will provide a boost to the

snacks industry. The demand for snacks is growing due to other reasons as well like, the growing

multiplex culture, snacking at home while watching TV, and pubs & bars (where they are servedfor free). There is also a stark change in lifestyle, leading to a growth in this sector. Increase in

the number of working women and nuclear double income families is leading to more demand

for processesed, ready-to-eat and ready-to-cook food. According to Euromonitor2 money spent

by Indians on outside home meals has more than doubled in the past decade to about $5 billion a

year, and is expected to further double in the next 5 years. Along with this, the disposable

income of the Indians is increasing too, and is expected to grow even further in the years to

come. Following is an extract from Mckinsey Global Institute which throws light on the

changing income trends:-

2Euromonitor is a marketing intelligence firm, providing market research and business intelligence reports and data to industry


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Buying behaviour

TARGET CUSTOMER

MalesFemales

Easy snacks with

cocktails, smaller

SKUs & mixtures

Brand focus nil,

for the purpose

of time-pass

Larger SKUs for

storage and

guests.

Working women Housewives


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Competitive analysis

The Snacks market is dominated by the non-branded sector, which holds a 60% market share.

Perhaps the reason behind this market share is that these snacks are available at a price cheaper

than their branded counterparts. Also the margin on local brands is higher than that on branded

items. As such the shopkeeper may play a role in pushing the brand which brings him/her morebenefit. Following comparison will validate the same-

Item Brand Non-brand

Boondi Best bakers, 190 gm for Rs 41 Grace, 120 gm for Rs 22Mixture Garden, 150 gm for Rs 30 Shyam, 150 gm for Rs 25Aloo bhujia Em-dees, 150 gm for Rs 42 Dhirjee, 100 gm for Rs 32Navratna mix Haldirams, 48 gm for Rs 10 A-one, 70 gm for Rs 11

Among the branded players, Haldirams is the market leader. Bikano, Lehar, Em-dees, Kaleva,

Garden are some other brands that constitute the branded market.

Haldirams started as a small shop in Bikaner, Rajasthan in 1937. By 1982 Haldirams had set up

a shop in Delhi and the capital had begun to stop by and take note of the savouries and sweets. Itwas word of mouth that grew the business manifold over the next decade, till Haldirams came to

stand for a food company that was synonymous with taste, hygiene and innovation. USA was the

first market they started exporting to. What began as a small-town enterprise in India is today a

global phenomenon. Haldirams product portfolio consists of namkeens, sweets, cookies,

sherbets, papads and chips. Out of the 27 namkeens; Aloo bhujia, bhujia, navratna mix, khatta

meetha are the best selling. Following is the distribution system of Haldirams-

Companys

manufacturing unit

Carrying and

forward agentsDistributor

Retailer Consumer


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Value Proposition

Functional benefits- Taste hygiene, great quality, attractive packaging, extensive productrange.

Emotional benefits- Smart buyer, association with Indian roots. Credibility- Makes tasty and hygienic ready-to-eat food.

What makes Haldirams the market leader

There are 3 As which bolster the sales of any product. In the absence of any of the 3 As, the sales

of the product is most likely to get affected. In case of Haldirams all the three conditions are

sufficiently met, thereby making it a force to reckon with.

1. Awareness- Unless the buyer is aware of the product, he/she will not help boost thesales of that product. The simple first step for any company to do is to position thebrand in the mind of the target audience. Haldirams with its promotions via

hoardings ensures that the target audience is aware of the brand. The result of the

promotion is such that Haldirams is almost synonymous with namkeens in the whole

of North India. Whether a person has namkeens or not, he/she is definitely aware that

Haldirams is a brand that sells namkeens of good quality.

2. Affordability- Haldirams follows competitive pricing. It seldom comes out withpromotional schemes like buy 1 get 1 free or a certain amount of free quantity, that

is because the brand is widely accepted as being affordable. No matter how good the

quality is of a product, if it is not considered worth the money, its sales get affected.

With the smallest offering priced at Rs 5, Haldirams is a brand that most people

consider value for money.

3. Availability- Haldirams enjoys easy availability. With about 1035 distributors andpresence in almost all general stores and all modern trade stores, Haldirams scores

highly on the availability criteria. Apart from the retail outlets, it has restaurants at 18

locations in Delhi and the NCR. The restaurants are located at places that expect a lot

of crowd like- Saket, IGI Airport, Connaught Place among others. Rs 5 and Rs 10

packs which offer 22 grams and 48 grams respectively are available at most pankiosks.


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Product offerings3

(namkeens)

Item Size/s Price (in Rs)

Aloo bhujia 200gm/ 400gm/ 22gm/ 48gm 38, 75, 5, 10

Bhujia 1kg/ 400gm/ 22gm/ 48gm 183, 75, 5, 10

Khatta meetha 1kg/ 400gm 173, 71Navratna 1kg/ 400gm/ 200gm/ 48gm/

22gm173, 71, 36, 10, 5

Moong dal 1 kg/ 400gm/ 200gm/ 20gm/43gm

203, 83, 42, 5, 10

Punjabi Tadka 200gm/ 22gm 40, 5Panchratna 400gm/ 200 gm 133, 67

Mint lacha 80gm 20Kaju mixture 400gm/ 200gm 115, 58

Cornflakes mixture 400gm 105Nut cracker 400gm/ 48gm 73, 10

All in 1 400gm/ 200gm 83, 42Teekha sev 200gm 36

Gujarati mix 200gm 36Chilli pataka 200gm 38

Boondi 200gm 36

Kashmiri mix 200gm 53Kabuli chana 200gm 37

Chana cracker 200gm 36Chana jor 200gm 36

Long sev 200gm 36Dal biji 200gm/ 400gm 36, 71

Nimbu masala 200gm 38Shahi mix 200gm 77

Bombay mix 200gm 36Hara chiwda 200gm 39

Chana dal 200gm/ 48gm 36, 10Heeng jeera 200gm 37

Chilli chatak 80gm 20Karodpati 200gm 38

Karanchy mix 200gm 36

3Table has been filled based on the analysis done prior to phase 1 of the project. As such, only those items have been put in that are available in

retail outlets in Delhi.


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SWOT analysis of Haldirams

STRENGTH

First mover advantage Original namkeens makers hailing from

the city of Bikaner.

Strong distribution network- 50 C&Fagents and 1035 distributors.

Excellent brand awareness High quality standards. Available in most stores including

modern trade and general trade

Has restaurants of its own, creating agreat brand image.

Offers a wide variety of namkeens.

Customizes its products, Murukkusfor south Indian customers.

Excellent packaging stressing hygiene Uses hoardings and signage for

promotion.

WEAKNESS

Offers low margins to retailers ascompared to other brands.

Does not run any promotional scheme,due to which customers sometimesprefer other brands.

OPPORTUNITY

Rising income levels and changingconsumption patterns.

Opening of global markets

THREAT

Threat from non-branded sector Threat from other branded players. Due to the western influx, Haldiramsmay not be able to cash on the change

in tastes owing to its image of atraditional Indian food maker.


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Kaleva is a manufacturer and exporter of traditional Indian sweets and namkeens. It is located in

the Delhi and stocks over 1000 sweets, namkeens and other traditional eatables. Its product

portfolio includes sweets, namkeens, sharbats(syrups), pickles and papad. It has a wide

distribution network in the domestic market and caters to five star deluxe hotels like- Ashoka

hotel, Maurya Sheraton, Taj group among others. The company is keen on expanding its exports

to the Middle East, America and Europe. Following is a table listing out the various snacks4

offered by Kaleva-

Item Size/s PriceKhatta meetha 150gm 44Aloo bhujia 150gm 44Moong dal 150gm 44Navratna 150gm 44Nimbu chatka 150gm 44Crispy strips 150gm 44Bikaneri bhujia 150gm 44Chabeni 150gm 44Tasty 150gm 44Bhel puri 150gm 44

Bikanervala is one of India's most prominent families in the business of traditional hospitality

products like Sweets and Namkeens. Today, Bikanervala Foods Pvt. Ltd. is an ISO 9001:2000,

HACCP and SQF 2000cm certified company with four modern manufacturing units in the

National Capital Region and a chain of 88 outlets in India and abroad, serving vegetarian NorthIndian, South Indian, Continental, Chinese cuisine and Fast food along with a vast variety of

traditional Indian sweets and snacks. Bikano is Bikanervalas international brand of packaged

sweets, namkeens, papad and sherbets, manufactured to the world standards of hygiene and

quality. Bikanos packaged products have always been a big hit with customers both in India and

4The data has been compiled by visiting retail outlets all over Delhi.


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abroad. Bikanos concept of constant innovation through the use of modern technology for

packaging retains its original flavour for maximum time period. The Quality Assurance

Department has world class testing facilities for Colorimetric, Chromatographic, Chemical,

Bacteriological and Physical analyses thereby ensuring quality of raw material, packaging

material, packing material and finished goods. The quality standards are at par with the

requirements of FDA, and Australian and New Zealand regulations.

The demand for their products is a testament to the quality standard set by Bikanervala. Bikano

prides itself in successfully integrating ultra modern technology to manufacture its traditional

food products in their 5 factories across India. Their products are quite well known for being

healthier than the oily snacks that are found outside since they are fried in machines which are

programmed by Programmable Logic Controllers (PLC). It has always been in the forefront in

adopting new technology for its products. Their state of the art canning and packaging

technology ensures that the products have a longer shelf life without losing their freshness. The

3-ply laminate packaging extends the shelf life up to a year.

Product offering5

Item Size/s Price (in Rs)

Moong dal 200gm, 1 kg 43, 178Crunchy munchy 52gm 15Navratna 200gm+50gm extra, 1 kg 36, 168Aloo bhujia 200gm+50gm extra, 1 kg 38, 168Bikaneri Bhujia 200gm+50gm extra, 1 kg 38, 129Khatta meetha 1Kg 168Tasty 1 kg 178

Cornflakes mixture 400gm 105Aloo lacha 150gm 38

5The data has been compiled by visiting retail outlets all over Delhi.


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A product of Pepsico India, Lehar was launched in 1996. The brand positioned itself by

emphasizing its irresistible taste and using modern imagery. Lehar was re-launched in 2006 and

positioned itself using the plank Taste zyaada kyunki oil taza. It promised to deliver good taste

through the use of fresh oil in the manufacturing process. Unlike other players in the business

that seldom invest in TVC (television commercial), Lehars famous tagline, Kya karein control

hi nahi hota grabbed the attention ofmany. Also, Lehar snacks are available for purchase online.

The internet has revolutionised shopping experience for many people. Lehar has joined the

league by making available its snacks online for purchase.

Unlike potato chips, namkeens have generally been associated with the family unit, not as a

snack meant for individuals. And in the absence of small, easily disposable pack sizes, namkeens

never really appealed to a lone consumer looking for a snack. If you bought a big packet of

chips, you are likely to finish the whole lot but this is not the case in namkeens. Thus the chota

pack came into picture. Lehar was the first to get into small pack sizes of 35 gm.

Product offering6

Item Size/s Price (In Rs)

Bikaneri bhujia 200gm, 1 kg, 22gm 35, 183, 5Moong dal 200gm 44Nut cracker 160gm 25Navratna 200gm 35Aloo bhujia 200gm/ 400gm/ 1 kg 59, 73, 129Aloo bhujia pudina twist 1 kg 178Shahi mixture 1 kg 178Chatpata mix 200gm 35

6The list has been compiled by visiting retail outlets in Delhi.


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Garden Namkeens Pvt. Ltd. is based in the Indian state of Maharashtra. It manufactures exports

and supplies namkeens. It has been in business for the last 18 years.

In all the processes, Garden adheres to highest quality control measures. Its plants are equipped

with latest machinery facilitated by cutting edge technology. It has set up a huge site where 12

semi automatic machines are installed to manufacture Namkeens. Its site has an automatic

temperature control system fitted on all the manufacturing machines to preserve the quality and

taste of the products round the year. The packaging system involves use of automatic packaging

machines in air conditioned plant, eliminating the possibility of human contact.

The unique selling point of Garden snacks is that it has provided the consumers with something

new, something other than regular snacks that are already available in the market. The retailers

stocking this brand consider it a good SKU because it has created something unique. It has

brought the taste of Bombay to Delhi.

Product offering7

Item Size/s Price (In Rs)

Diet Chidva 180gm 32Diet Bhel 180gm 32Crispy murukku 180gm 32Yellow banana chips 100gm 32Cornflakes mixture 150gm 30Pepper banana chips 110gm 32Raita boondi 180gm 32

Em-dees is the snack food range of Chandpur Enterprises Ltd. VFD and PLC systems are

involved in the preparation process, which have a high level of automation. The food products

are packed through nitrogen flushing and imported weight control systems. This ensures safety,

hygiene and freshness of incredible standards.

Em-dees is known for running promotional schemes like, Buy 1 get 1 free. According to some

retailers this brands unique selling point is that customers generally get lured into buying Em-

dees because of the promotional schemes it runs.

7 The list has been compiled by visiting retail outlets in Delhi.


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Product offering8

Item Size/s Price (In Rs.)

Navratna 150gm 42Khatta meetha 150gm 42

Navratna 150gm 42Bhujia 150gm 42Moong dal 110gm 42Aloo bhujia 150gm 42Nimbu sev 150gm 42Chidwa 150gm 42

Bikaji foods International Ltd. was established in 1987. It is based in Bikanner, Rajasthan. All

bikaji snacks are made on fully automated machines, completely untouched by human hand.

Bikaji snacks are well known throughout India. They export to USA, UK, Middle East and parts

of Africa. The company was rewarded with the National award for Industrial Excellence in the

year 1991-92, thereby becoming the first company to receive such an award in the category of

food products. The company manufactures sweets, namkeens and papad.

Product offering

Item Size/s Price (in Rs.)

All in one Kuch Kuch 200gm 40Bhujia 200gm 40Moong dal Goldy 200gm 40

Navratan Sab kuch 200gm 40Khatta meetha tana-bana 200gm 40

Cornflakes mixture zordar 200gm 40Cornflakes with dry fruits

mastkeen

200gm 40

Chana jor garam 200gm 40

Tasty Gup Shup 200gm 40

8The list has been compiled by visiting retail outlets in Delhi.


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Apart from these brands which are available at most stores, there are a handful of brands that do

not enjoy too much of the market share, yet they have been in the market for some time now.

Store brands

A store brand (or private brand) is a brand created and owned by a reseller of a product or serve.Easy day, is a franchise model between Bharti group and Walmart. It has launched a brand of

snacks under the private label of Great Value. Great Value private label offers wholesome

choice and value to customers through its range of products, including flours, dry fruits, spices,

cereals, tea, cold beverages, jams, ketchups, Indian snacks, toilet cleaners, floor and glass

cleaners at very reasonable, competitive prices. The snacks are available at a competitive price of

Rs 34 for a quantity of 200gms.

Reliance Fresh has an in-house brand by the name of Reliance Select. This brand runs

promotions like- Rs 7 off thereby selling a 150gm packet at Rs 23. Price sensitive consumers

get lured by such schemes. Also, the stores get more margins on these products. As such theshopkeepers are likely to push these brands to the customer. This was evident with the placement

of these snacks. Reliance select was kept in a different basket away from the other brands of

snacks. The intention was clear; they wanted their brand to catch the eye of customers.


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SWOT Analysis

STRENGTH

Established brand names, like-Haldirams, Bikano, Lehar amongothers.

Extensive distribution network, like-Haldirams has 1035 distributors allover India.

Abundant availability of raw materials Vast domestic market It offers a plethora of choices - 1000

snack items and 300 types of savouries.

WEAKNESS

Lack of adequate quality control &testing methods as per internationalstandards. Even though the shelf life ofnamkeens is generally said to be 6months, most of them show signs ofstagnation before the end of 6 months.

Inefficient supply chain due to largenumber of intermediaries

Packaging facilities are inefficient. Nouniform standard for packaging isfollowed as is the case in USA ordeveloped countires.

OPPORTUNITY

Rising income levels and changingconsumption patterns

Changing demographics- 55% ofIndias population is in the age group of20-59 years. Younger people are morereceptive to trying new snacks.

Growth of retail sector augurs well forthe snacks industry. Their reach can bemade more extensive

Opening up of gobal markets.

THREAT

Competition between branded and local(regional) players.

Preference for fresh food. High inventory carrying cost.


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Porters First Five Model

It is a framework for industry analysis and business strategy development formed by Michael E.

Porter. The following five forces determine the competitive intensity and therefore attractiveness

of the industry. This model has been applied to the Indian snacks industry-

THREAT OF SUBSITUTES

(HIGH)

Presence of a plethora of

non-brands

BUYER POWER (HIGH)

Due to the wide brand choice

available in the market, buyer

power is high. As such,

consumers can easily switch

brands.

COMPETITIVE

PRESSURE (HIGH)

Haldirams dominates more

than half the market share

SUPPLIERPOWER

(LOW)

Conditions of supply are

mutually agreed upon; as

such supplier power is low.

ENTRY BARRIERS (HIGH)

Capital intensive Strong distribution

network

Low operating margins.


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COMPANY ANALYSIS


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About the company

The Amira group was founded in 1915. It was founded by Shri B.D. Chanana as a trading house.

Shri Karam Chand Chanana handled the reins of the group thereafter. The third generation

headed by Anil Chanana steered the group to newer heights. The fourth generation scion, Karan

A Chanana is at the helm of Amira group today. A passion for food for began almost a centuryago, continues even today with an unflagging spirit of achievement and enterprise under the

dynamic leadership of Mr Karan A Chanana. He enabled the company to realise its potential in

the global arena and established the organisation with the prime focus on exports. The business

has evolved from trading to processing, branding and distribution of agro commodities to

become Indias largest privately held rice company. It is headquartered at New Delhi, while the

manufacturing facility is located at Gurgaon, Haryana. Its international offices are located at the

following places-

Amira C Foods International DMCC, UAE Amira Foods (Malaysia) Sdn. Bhd. Malaysia Amira Foods Pte. Ltd. Singapore Amira G Foods Limited, UK Amira Foods. Inc. USA

Vision

At Amira Foods, the vision goes well beyond commodities sales. The idea

is to bond people and cultures across the world through the common

language of food. Such is the power of Food Connect which enablesAmira Foods to leverage its position as a leading producer and exporter of

rice.

Karan A. Chanana


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Timeline

Originally founded as an agro-commodities trading

business by the Chanana family.

1915

Established foundation for international business

through private label retail sales.

Began to import food grain from China and

Southeast Asia. 1928

Karan A Chanana continues the rapid transformation

of Amira from a family-run-business to a

professionally managed global company.

1993

Established Indias first fully integrated and

automated Rice milling factory, incorporating best

in class Buhlor technology, in Gurgaon, India .

2006

Launched Amira branded strategy, today present in

24 international markets.

Started exporting to the middle east and Russia.

Established subsidiary in Singapore. 2007

Established subsidiary in Malaysia.

Established fully-automated consumer packaging

technology installation at Gurgaon plant.

2008

Established presence in the US market by launching

international marketing office.

Established subsidiary in Dubai.

2009

Established subsidiary in the UK.

Enhancing strategic focus on increasing geographic

penetration.

2011


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Product portfolio

Amira exports a wide range of Basmati, Non basmati and speciality rice along with a wide

variety of agro commodities to more than 20 countries worldwide. A category focus on rice is

well rounded through commitment to other agro-commodities and bulk commodity trading in

pulses, sesame seeds, sugar, onion, potato, maize, soya bean extract, edible oil, palm oil, wheat,wheat flour, rapeseed, millets and spices.

Its business is divided into two types

Branded Business

Brand Portfolio: Rice

Brand Category

Amira Pure Traditional Basmati Rice Traditional BasmatiAmira Indigo Extra Long Grain Basmati Rice 1121 Basmati Extra Long Grain RiceAmira Good length Basmati Rice Pusa Basmati Long Grain Rice

Amira Good Health Brown Basmati Rice Brown BasmatiAmira Sameena Basmati Rice White Pakistani Basmati RiceAmira Thai Jasmine Aromatic Rice Thai JasmineAmira Long Grain Rice Long Grain RiceAmira Sharbati Aromatic Long Grain Rice Sharbati

A description of its different brands of Rice

Amira top Basmati brands

1. Amira Pure Basmati- It is renowned for its pearly-white texture and delightfully longscimitar shape. Its tantalizing fragrance arouses the senses, inviting one to indulge in rice

nirvana. Its special characteristic is that is doubles in size when cooked.

Cooking benefits:-

The finest grains of pure traditional basmati. Grains that have been matured for 18 months.

BUSINESS

BRANDEDBUSINESS PRIVATE LABELLING


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Doubles in size when cooked, making for an ample portion size. Rich in taste, with tantalising aroma. Ideally recommended for white rice preparations, or lightly garnished rice dish.

2. Amira Indigo Basmati Rice- This rice is known for its extraordinary length and slender

shape. The grain is firm, fluffy in texture and is matured for a period of 18 months. It is ideallyrecommended for rich traditional Hyderabad biryanis and contemporary pilafs. This particular

variety has extended the pride if Indian basmati to global horizons.

Cooking benefits-

A basmati variety that has been specially developed to offer superlative cookingproperties. It has a grain length that is almost 2.5 times longer than pure basmati.

The grain results in a perfect shape even when prepared in strong stream (Dum pukht). The long slender grains stay separate, without sticking to each other.

3. Amira Good Length Basmati Rice- It has an aroma that is sweet and appetizing. Also, an

appearance that is sleek and slender. Upon cooking, the long and healthy grains turn pure white

and fluffy in appearance. It is also very light.

Cooking benefits-

When cooked, its long and slender grains turn dazzling white and fluffy. The cooked rice has a very pleasing texture as the grains stand distinct and stay separate. Its the perfect combination of fragrance and flavour. A strong and firm grain thats ideal for home-made biryanis and pilafs.

4. Amira Good Health Brown Basmati- It is the perfect choice for those looking for nutritional

benefits, without compromising on great taste. It has a mild nutty flavour which is rich in vitamin

B. The grain absorbs more water, which keeps one full and satisfied for longer periods. Clinical

studies indicate that people who regularly consume whole grains weigh less than those who eat

less of such fibre-rich foods. Just one cup of Amira Brown Basmati provides up to 88% of the

daily requirement for manganese; and the grain is rich in nutrients including vitamins and

minerals.

Cooking benefits-

It is a whole grain cereal that is naturally low in fat. It has higher fibre content than white rice. There is uniformity in every grain.

5. Amira Khichdi Rice- This rice is rich in proteins and carbohydrates. This is special purpose

rice used for particular meals like rice pudding. It can also be used as infant and toddler food.


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6. Amira Kheer Rice- Like Amira Khichdi rice this too is special purpose rice formulated for

particular meals like rice puddings. It can also be used as infant and toddler food.

Amiras value for money Basmati range-

1. Amira Daily Fresh Basmati Rice- This rice serves up a great value meal. It is known for its

flavour and texture. It is hygienically packed to the highest quality standards to ensure its

goodness is retained.

2. Sameena Basmati Rice- This Basmati offers unmatched quality and superlative length. It is

conventional in taste with great sensory delight.

3. Guru Extra Long Grain Basmati- It is popularly known as Guru ka Guru Basmati. It is a

perfect example of king size Basmati. This extra long grain Rice has great elongation on

cooking; it is smooth in texture and fine in taste. Guru extra long grain basmati is popular forsteamed cooking and Biryani cooking.

4. Sativa Basmati Rice- This variety is ideal for both everyday family meals as well as exotic

dishes. With its pearly finish and separate grains it makes for a soft delicious mouth-watering

meal.

5. Pashmina Sella Basmati Rice- Finest quality Sella Basmati is expertly milled and packed to

retain its goodness. This rice makes an excellent accompaniment to all the favourites cuisines.

Amiras non basmati range-

1. Amira Long Grain Rice- Amira long grain is the all-purpose rice that is appreciated for its

perfect texture and taste. It is a good alternative to non-basmati varieties. It extends culinary

advantages to cuisines where aromatic rice is not required.

Cooking benefits-

Everyday cooking rice. Subtle flavour. Recommended for Chinese dishes including veg fried rice; it also blends very well with

continental rice cuisines.

2. Amira Sharbati Aromatic Long Grain Rice- This rice is carefully sifted to ensure there are

no stones and no husks. The sticky characteristic of this rice delivers a distinct culinary

advantage to the diverse Indian and global cuisines.


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Cooking benefits-

Everyday cooking rice. Subtle flavour Moderate aroma Slightly sticky in nature Recommended for sticky rice preparations including sushi, Indian deserts and puddings.

3. Amira Thai Jasmine- This particular variety is a culinary mosaic of rich aroma and fine

taste. From the origins of rice farms of Thailand, this rice grain is truly a wonder grain. It is

popularly used for Asian cuisines. When cooked, this rice fluffs up and retains the fullness of

wonderful fragrant aroma. It has a chewy texture. This variety is recommended for Chinese fried

rice.

4. Amira Sona Masoori- This variety is considered the pride of Southern culinary palette ofIndia. It is reed thin and richly nutty.

Packaging formats-

Available in 1 Kg, 2 Kg and 5 Kg laminated poly pouches 1 Kg, 2 Kg, 3 Kg and 5 Kg pet jars 10 Kg HDPE bags. 5 Kg, 10 Kg, 20 Kg and 25 Kg DuPont bags. Conventional jute and polypropylene bags.

Brand portfolio: Oils

The company has a rich repertoire of expertise in the procurement, processing and trade of palm

oil products. Prime quality palm products are marketed by Amira Foods (Malaysia) Sdn. Bhd.

Key markets for palm products include the African and Gulf regions. Stringent quality standards

are maintained at each stage of operation. A wide variety of commercial and industrial packaging

formats are available. These products cater to the specific needs of the global food processing

industry.


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Amira palmoelin edible oil

Oil Brief note

Pure Vegetable cooking oil 100% vegetable oil, rich in antioxidants,vitamins A & D and cholesterol free made

from finest quality of redefined, bleached anddeodorised Palm Olein.Vegetable Ghee Wide range and quality of Vegetable Ghee are

available based on customer requirements. It isused widely for cooking ingredients.

Shortening It is made from pure Palm Oil and its product.Vegetable based shortening are widely used formaking breads, cakes, pastries, creams andsweets.

Margarine Vegetable based Margarine is suitable formaking cakes, creams, breads, cookies and

pastries. It is made from pure and finest qualityof Palm Oil.

Private Labelling

The second kind of business that Amira Foods India limited carries out is in form of private

labelling9. It caters to private label segment in over 40 countries. Business is conducted through

subsidiaries that are located through 4 continents. This sector has shown a consistent growth of

20% per annum. Top markets include Indonesia, Kuwait and Bangladesh. Following is a brief

description of its products-

1. Rice

Commodity Varieties Speciality Packaging Offerings

Sella BasmatiRice

Indiantraditional, Pusaand 1121 SellaBasmati.

Creamy andgolden form

Consumer andBulk packs.

Biryanis andcontemporarypilafs.

Long Grain andMedium Grain

Rice

Sharbati, IR-64,PR-106, PR-11,

1R-36, Panth-4,Sona Masooriand 1001

Raw andparboiled form

Attractive 50 KgPP bags

Southern delightand signature

rice dishes

Average GrainLength

Sharbati, IR-64,PR-106, PR-11,1R-36, Panth-4,

Raw andparboiled form

Attractive 50 KgPP bags

9Private label products are those that are manufactured by one company for offer under another companys brand.


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Sona Masooriand 1001

2. Onions

Product Remarks Packaging Countries

Red Onions Free from moulds,sprouts, diseases,decay and pestinfestations.

Netlon bags of 7, 10,20 and 25 Kgcapacities.

Indonesia, Malaysia,Mauritius, Seychelles,Pakistan, Bangladeshand Middle East.

3. Potatoes

Product Remarks Packaging Countries

Potatoes Free from moulds,sprouts, diseases,decay and pestinfestations.

Netlon bags of 7, 10,20 and 25 Kgcapacities.

Indonesia, Malaysia,Mauritius, Seychelles,Pakistan, Bangladeshand Middle East.

4. Soyabean milk extraction

Specifications Percentage Packaging Countries

Protein 48 % max

50 Kg PP bags

Pakistan, Bangladesh,

Kuwait, Indonesia,Vietnam and China

Moisture 11 % min

Sand & silica 2 % maxFibre 6 % maxUrease activity .30 units maxOils 1.50 max

5. Rapeseed meal


Oil & Albuminoidscombined

38 % max

50 Kg Pp bagsBangladesh, Indonesia

and China

Moisture 10 % minSand & silica 2.5 % maxFibre 12 % maxFree from Castor weeds, Husk,

Weevils, Moulds,Lumps


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6. Maize


Moisture 14.00 % max

50 Kg PP bagsPakistan andBangladesh

Damage, immature,

discolour

4.00 %

Max weevilled 1.00 % maxForeign matter 1.00 % maxOther colour grain 5.00 % maxAdmixture 1.00 % maxAfloxotin 30 Ppb maxBroken 3.00 % max

7. Indian white crystal sugar

Specifications Percentage Countries

Grade S30- S-2, S-1 Sugar

Bangladesh, Yemen, Africaand Sri lanka

Polarisation 99.80 % minMoisture 0.04 % maxASH 0.04 % maxIcumza Below 100 (basis method 10)

solubility 100% dry and freeflowing.

Granulation Fine to medium (800-1200micron)

AS 1 mg/ kg maxCU 2 mg/ kg maxPB In 50 Kg PP bags

8. Millets

Specifications Percentage Packaging

Purity 99 % min50 Kg PP bags

Admixture 1 % max

9. Palm oil

Products Packaging

RDB Palm olein

1,3,5,10,15,20,25 Jerry can/ bulkRDB Palm oilRDB Palm stearinPFAD vegetable gheeMargarine


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ShoreningCocoa butter substituteIce cream doughCreamingCoating & other specialty fats

New product development

Amira is shortly going to launch the following-

Amira Pure Desi Ghee (Milk fat) Indian snacks in 4 variants-

Navratna Mix

Zabardast Slims

Aloo BhujiaBikaneri Bhujia

These snacks will be available in 150 gram packs at rate of Rs. 39.


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Awards and Recognitions

Over the years Amira has earned recognition not just as an industry leader but also for its

contribution to the countrys growth and economic stability. Amira was bestowed with the

following awards-

The APEDA certificate of merit for outstanding contribution to Rice exports (1995-96) APEDA export award (1998-99) The Federation of Indian export organisation (FIE0) has given the FIEO

AWARD for the years 1997-98 and 1998-99.

Canara Bank presented the The best exporters award (1994-95 & 1995-96) Rashtriya Udyog Ratan by the India International council for Industries

and trade

Amira Foods has set up yet another benchmark in the industry with brand Amirabeing honoured with the prestigious title The Indian Power Brands; the Global

Super Power Edition chosen by the Indian consumer.

INC magazine- certificate of excellence for exemplary growth and sustainable success inthe year 2010.

Quality certifications

Quality is the touchstone that forms the reputation of the Amira brand. Their facilities conform to

world-class standards. Regular audits by accredited organisations ensure that they only deliver

the best to the customers-

ISO 9001:2000 Safe quality food certificate (which includes HACCP) BRC (British Retail Consortium) certified US FDA approved plant and facilities.


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Market segmentation

Market segmentation is defined as dividing the market into distinct group of buyers who have

different needs, characteristics, or behaviours, and who might require separate products or

marketing programs.

Horeca presence (in India)

Pride group of Hotel Radisson- Pune DLF city club- Gurgaon Barbeque Nation- Delhi Seasons catering- Delhi Lemon Tree- Aurangabad Hotel Mayfair- Bhubaneswar Lotus family- Guntur Hotel welcome- Chennai Taj group

In pipeline- Jaypee group

RICE BUSINESS

GENERAL TRADE/ETHINICSTREAM

Traditional shops

Wholesalers

Mom & Pops store

MODERNTRADE/MULTIPLES

National chains

Regional chains

Standalone stores

HORECA/ FOOD SERVICE

HotelsRestaurants

Caterers

Institutions


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Presence in retail (INDIA)

Key International partners

Country Store

Angola Alimenta cash and carry, Greenwaysupermarket

Mauritius Winners, Jumbo, Shoprite, Spar, GSR, Kingsavers,Super, Kaddy plus

UAE Fatima stores, Al Manama, world mart, Alwafa, Spinneys, Geant east, K.M Trading,world market, Lulu, Lamcy plaza, J. Mart,

USA Costco, Sprouts, smart & final, Jetro,Restaurant depot.


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Promotional events

The company runs a plethora of events to build a brand recall. Following is a list of events

conducted by Amira-

Hotelympia 2012 Gulf food 2012 Food forum 2012 Aahar 2012 IFE, London Gulf food, Duba Ethnic foods, Brussels Winter fancy food show, USA Good food and wine show, Durban 2010 LE Mauritius Turf club SIAL Paris Walmart buyer seller meet 2010 Saudi Agro meet 2010 Yemen fair 2010 Sial china 2010 FHA- Singapore 2010 Oman Fair 2010 Gulfood Dubai 2010 Aahar Fair Delhi 2010 Poland Fair 2009 Oman fair 2009 Indo Africa meet 2009 Ethiopia fair 2009 Germany fair 2009 Aahar fair 2009

Consumer promotion

Following events were meant for public at large-

Amira & IFB promotion Dec 10 and Jan 11 Rampuri Food festival at DLF City club, Gurgaon Amira at IITF, Delhi 2010 Amira wet sampling at Bharti Walmart, Kota, Nov 2010


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Best price, Aug 2010 More Hyper store launch, Hyderabad, 2010

Advertisement

ADVERTISEMENT

TVC RADIOPRINT

ADVERTISEMENT

Delhi Times QTR adv 2011 Agri business Ad July My world Amira recipe


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PROJECT SPECIFIC ANALYSIS


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Market analysis (Phase 1)

I. Sample area: West DelhiSample size: 20

Type of data: Primary

Type of research: Qualitative and quantitative

a) Stock that various retailers keep- The survey conducted in the West Delhi region shows that

60% stores keep both branded and non-branded snacks, whereas 40% keep only branded snacks.

b) Most sold brand-The results indicate that Haldirams is the most sold brand followed by

Bikano.

80%

10%

5% 5%

Most Sold Brand

Haldiram's Bikano Narula (NB) A-one (NB)

40%

60%

Stock

Branded Branded & Non-branded


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c) Most sold size- The results indicate that 200 gram packs sell most followed by 48 gram and

22 gram.

d) Sales team visit- Most of the retailers get regular visits by the distributors. Sales team from

these companies visit seldom. Most of the distributors visit on a weekly basis followed by

bimonthly visits.

60%15%

15%10%

Most Sold Size

200gm 48 gm 22gm 150gm

60%20%

10%

5%

5%

Sales Team Visit

Weekly Bimonthly Twice in a month Monthly Twice in a week


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e) Most sold variant of snacks- The results of the survey indicate that Bhujia (both Bikaneri and

Aloo) are the favourites, followed by peanuts.

f) Lead time- Lead time taken to replenish the stock is generally observed to be 1 day. Usually

the retailers arrange the required stock from the wholesaler.

70%

15%

5%5% 5%

Most Sold VariantBhujia Peanuts Navratna

Punjabi Tadka Khatta Meetha

85%

5%10%

Lead time1 day 2 days 4-5 days


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g) Best promotional schemes- Haldirams being the market leader does not run promotional

schemes. There are a few brands that come up with schemes every now and then and get more

sales due to the attractiveness of the offer. The results of the survey conducted show that Em-

dees has the most attractive promotional schemes followed by Lehar.

h) Best margin- A common complain that retailers have with Haldirams is that it doesnt offer

good margins. The results show that Narula, a non brand offers the best margin followed by

Haldirams and Lehar.

50%

20%5%

10%

15%

Best Promotional Schemes

Em-dees Lehar Godavari Reliance Select Bikano

50%

10%

20%

20%

Best Margin

Narula A-one Lehar Haldiram's


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II. Sample area- East DelhiSample size- 20

Type of data- Primary

Type of research- Qualitative and Quantitative

a) Stock- 70% of the stores keep both branded & non branded snacks, whereas only 30%

stores keep branded snacks.

b) Most sold brand- Most sold brand remains to be Haldirams while the second best is a local

brand called Nanaji.

70%

30%

Stock

Branded and non-branded Branded

50%

25%

15%

5%

5%

Most Sold Brand

Haldiram's Nanaji Bikano Garden Kaleva


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c) Most sold size- The most sold size is 200 gram pack followed by 22 gram pack. It could be

attributed to the Rs 5 pricing of the 22 gram pack that it is sold second best.

d) Sales team visit- Most stores get visited by the sales team on weekly basis, followed by

monthly and biweekly visits.

45%

25%

15%

10% 5%

Most Sold Size200 gm 22 gm 250 gm 1 kg 150 gm

15%

20%

35%

20%

10%

Sales Team VisitBimonthly Biweekly Weekly Monthly Yearly


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e) Most sold variant- The most sold variant remains to be Bhujia followed by nut cracker.

f) Lead time- Most retailers say that the stock gets replenished in a span of 1 day. This is

followed by a time span of 2-4 days.

10%

50%

5%

5%

30%

Most Sold Variant

Navrata mix Bhujia Moong Dal Boondi Peanuts

10%

40%

25%

25%

Lead Time

1 week 1 day 3 days 2-4 days


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g) Bestpromotional schemes- Lehars offer of1 kg pack @ 129 made it most attractive,

followed by Em-dees offer of buy one get one free.

h) Best margin- The best margin is offered by Nanaji, a local brand. This is followed by Bikano.

65%

25%

5% 5%


Lehar Em-dees Bikano Kaleva

20%

60%

15%5%

Best Margin

Bikano Nanaji Lehar Em-dee's


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III.Sample area- South DelhiSample size- 20


Type of research- Quantitative and qualitative

a) Stock- 80% of the stores keep both branded & non-branded snacks while only 20% stores

keep just branded snacks.

b) Most sold brand- The most sold brand remains to be Haldirams. The next best is diet foods,

for the health conscious people.

20%

80%

Stock

Branded Branded and non-branded

35%

30%

20%

10%5%

Most Sold Brand

Haldiram's Diet food Garden Lehar Em-dees


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Page | 58

c) Most sold size- The results indicate that the best selling size is 200 grams because of its

convenience. 400 grams is the second in line.

d) Sales team visit- As is the case with other regions, here too the results indicate that most

stores get weekly visits. This is followed by monthly visits.

70%

25%

5%

Most Sold Size200gm 400gm 48 gm

60%15%

10%

5%10%

Sales Team VisitWeekly Monthly Two times a week Quarterly Bimonthly


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e) Most sold variant- The results indicate that diet products like- diet chidwa, diet murmura are

sold the most. It could be attributed to the rise in the number of health conscious people. The

second most sold variant is Boondi, this particular variant has seasonal demand and is most

wanted in Summers.

f) Lead time- Most retailers said that they keep enough stock in order to avoid stock-out

situation. Most of them also said that they place the order with the distributor who usually comesto pay a weekly visit. This is followed by a 2-3 day lead time.

40%

20%

15%

10%

10%

5%

Most Sold Variant

Diet products Boondi Moong Dal

Bhujia Khatta meetha Navratna

75%

20%5%

Lead Time

1 day 2-3 days 1 week


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g) Best promotional schemes- Lehars offer of 2 packs @ 59 instead of 74 and 1 kg pack @

129 is found attractive hence it is considered to be the brand that runs the best promotional

schemes. Next best is Godavari which has offered a sachet of Cremica ketchup inside the pack to

go with its potato shell snacks.

g) Best margin- Bikaji is offering a margin of 30%. Local players like healthy foods offer higher

margins. Margins as high as 50% can be availed on local namkeens.

65%

20%

10% 5%


Lehar Godavari Kaleva Bikano

30%

25%20%

15%

10%

Best Margin

Bikaji Lehar Healthy foods Haldiram's Diet foods


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IV.Sample area- Central DelhiSample size- 20


Type of research- Quantitative and qualitative

a) Stock- 85% of the stores keep both branded as well as non-branded snacks. 15% of the stores

keep only branded snacks.

b) Most sold brand- Haldirams dominates the market here as well. However retailers say thatBikano is good competition to Haldirams as is reflected in the results too.

15%

85%

Stock


55%25%

5%5%

5% 5%

Most Sold Brand

Haldiram's Bikano Shyam's

Lehar Em-dee's Kaleva


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Page | 62

c) Most sold size- Most sold size is observed to be 48 gram pack which is priced at Rs 10.

Because of the presence of small shops in market areas like CP, this size seems to be doing well.

Next best is 200 gm.

d) Sales team visit- The results indicate that mostly the distributors from the company pay

weekly visits. This is followed by monthly visits.

55%

15%

20%

10%

Most Sold Size

48 gm 22 gm 200 gm 1 kg

65%

20%

15%

Sales Team Visit

Weekly Monthly Twice in a week


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Page | 63

e) Most sold variant- The results indicate that the most sold variant is Bhujia and this is

followed by peanuts.

f) Lead time- Most of the retailers said that the sales team visit is combined with replenishing

the stock. Most said that they keep a weeks stock extra. The results indicate that 75% of the

retailers say that it takes only a day to replenish the stock. While the remaining 25% say that it

takes about 2-3 days to replenish the stock.

55%

20%

15%

5%

5%

Most Sold VariantBhujia Peanut Moong Dal Boondi Khatta meetha

75%

25%

Lead Time

1 day 2-3 days


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g) Best Promotional Schemes- The best promotional schemes are offered by Lehar. This is

followed by Em-dees offer of buy one get one free.

h) Best margin- The best margin is offered by a local brand called Shyams which sells in a 150

gm pack for Rs 25. The next best is offered by Bikano.

65%

20%

15%

Best Promotional OffersLehar Em-dees Kaleva

30%

40%

15%

15%

Best MarginBikano Shyam's Lehar Haldiram's


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Page | 65

V. Sample area- North DelhiSample size- 20


Type of research- Qualitative and quantitative

a) Stock- The results indicate that 75 % of the stores keep both branded and non-branded snacks

while 25 % stores keep only branded snacks.

b) Most sold brand- Results show that the best selling brand is Haldiramss. Garden and Bikano

also share piece of the pie. Wimpys and Sagar are local brands.

25%

75%

Stock


5%

5%

50%15%

15%

10%

Most Sold Brand

Wimpy's Sagar Haldiram's Bikano Garden Kaleva


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c) Most sold size- Most retailers said that size depended upon consumption. If a family wants to

eat then a 400gm/ 1kg size is seen to be appropriate. 400 gm pack is considered value for money

by a lot of buyers. The results show that 400 gm is the preferred size followed by 200 gm.

d) Sales team visit- The results show that mostly the visits are made on a weekly basis followed

by a monthly visits.

35%

25%

15%

15%10%

Most Sold Size

400 gm 200 gm 22gm 1 kg 48 gm

70%

15%

10% 5%

Sales Team VisitWeekly Monthly Twice in a week Yearly


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Page | 67

e) Best sold variant- Most sold variant is bhujia followed by khatta meetha.

f) Lead time- Most retailers said that it takes only about a day to replenish the stock. 25% said

that it takes about 2 days to replenish the stock.

65%10%

10%

15%

Most Sold Variant

Bhujia Boondi Navrtana Khatta meetha

75%

25%

Lead Time

1 day 2 days


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Page | 68

g) Best promotional schemes- Bikanos schemes of 4 packs of 250 gm @ Rs129 seems to be

the most attractive followed by Lehar.

h) Best margin- The highest margin is offered by Shyams which is a local brand, but Bikano is

the brand that most retailers stock, as such most retailers said that Bikano offers the best margin.

45%

25%

15%

15%

Best Promotional SchemesBikano Lehar Reliance select Em-dees

5%

5%

60%

30%

Best Margin

Shyam's Sagar Bikano Garden


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Page | 69

Compiled results

Sample area- Delhi

Sample size- 100

MOST SOLD BRAND

MOST SOLD VARIANT

0

10

20

30

40

50

60

0

10

20

30

40

50

60

Bhujia Boondi Navratna Khatta

meetha

Peanut Moong

dal

Diet

products

Punjabi

Tadka


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Page | 70

MOST SOLD SIZE

BEST PROMOTIONAL SCHEMES

0

5

10

15

20

25

30

35

40

45

50

200 gm 48 gm 22 gm 150 gm 250 gm 1 kg 400 gm

0

10

20

30

40

50

60

Bikano Lehar Reliance 'select' Em-dee's Kaleva Godavari


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Page | 71

Customer preference (Phase 2)

Sample size- 120


Type of research- Qualitative

Results from Factor Analysis are as follows-

KMO is a measure of sampling adequacy. A KMO value which is greater than .5 indicates thatthe sampling is adequate and that the factor analysis can be run.

Kaiser- meyer- olkin measure of sampling

adequacy

Bartletts test of sphericity Approx chi sq

df

sig

.614

343.058

136

.000

Initial Eigen Values

Eigen values show the internal consistency between various variables.

Component Total % of variance Cumulative %

1 2.944 17.316 17.316

2 1.921 11.300 28.616

3 1.802 10.597 39.213

4 1.331 7.829 47.042

5 1.223 7.195 54.237

6 1.030 6.058 60.295


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Page | 72

Rotated Component matrix

Rotated component matrix shows how the different variables get loaded under various factors. In

our case 6 factors have emerged.

Variables Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6

Price .723

Comparative

price

.613

Different

Sizes

.797

Small size .818

Schemes .810

Buy more on

discount

.668

Expiry date .520

Availability .706

Placement .731

Spice .581

Different

flavours

.481

Convenient

packing

.509

Attractive

packing

.579

Target

audience

.712

Shopkeepers

suggestion

.560

Persuasion by

shopkeeper

.426

Ingredients .811


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Page | 73

Factor naming

Factor 1 has been named as convenience. This is so because easy availability in all stores,

makes it convenient for buyers to be loyal to a particular brand. Next variable in this factor is

placement. If the snacks are placed at easy-to-locate locations in the stores, it makes it

convenient for buyers, at the same time it induces impulsive purchase. Spice and different

flavours fall under this factor too. The more the choices to choose from, the better it is to make a

purchase decision. Also, most Indians except Rajasthanis like their snacks to be moderately

spicy. The last variable is convenient packaging, which undoubtedly adds to the ease of eating.

Factor 2has been named as Competitiveness. Comparative price falls under this factor. Price

plays a vital role in shaping a purchase decision. Competitive pricing provides the product an

edge. Next variable included in this factor is attractive packaging. Sometimes buyers buy a

particular product solely on the basis of how well it has been packed. Without knowing about the

taste of the product, people are willing to try it because its packaging appeals to them more than

the packaging offered by competitors. The last variable loaded in this factor is target audience.

An integral part of competition is the market segment that a particular brand offers to serve. As

such, target audience falls under this factor.

Factor 3has been named as Size. Small size and different sizes are two variables which

explain why this factor has been named so. Persuasion by shopkeeper falls under this category

too. Sometimes a brand canbe sold better with the help of a shopkeepers persuasive power. This

way he/she can help to push a particular size of snacks too.

Factor 4 has been named as Promotional offers. The variables under this factor are buy more

on discount and schemes which explain why the factor has been named so.

Factor 5has been named as Health. Ingredients and expiry date link directly to health

concerns. Another variable in the factor is shopkeeper suggestion. Sometimes shopkeepers push

a particular brand citing its zero cholesterol attribute or health aspect.

Factor 6has been named as Price. Price is the only variable under this factor.


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Page | 74

CONCLUSION & RECOMMENDATION


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Page | 75

CONCLUSION

Following analysis is for phase 1.

The study was conducted to find out various details about the snacks market in the Delhi region.

The results obtained were as per expectations. It was no surprise to know that Haldirams

dominates the market or that 200 gm pack sells most or that Bhujia is the most favoured snack

variant. This study was important in terms of which variants and sizes are followed by the most

preferred ones. Therein lies the potential for the company to make changes. The results from

phase 1 indicate the following-

Most sold brand- Haldirams, Bikano Most sold variant- Bhujia, Peanuts Most sold size- 200gm, 48gm Best promotional schemes- Lehar, Em-dees Lead time- 1 day Sales visitweekly Best margin- Non branded players offer great margins. Amongst the branded ones

Bikano offers the best margin to retailers.

While interacting with various retailers and customers, I was able to get more information than

what I had expected to receive. Many factors surfaced which could not have been brought to the

fore if it was not for the knowledge that the retailers shared with me. Following insights were

generated through my interaction with retailers and customers in phase 1-

1. In East Delhi, I went to a retail shop called Om Sai store where almost all brands ofsnacks were available. The most selling brand was undoubtedly Haldirams. This was

followed by Garden and Kakaji. The retailer suggested that for a company to foray in the

Indian snacks market that is replete with a plethora of players, it is important that the

company brings in some kind of innovativeness. Merely launching the same variants like

Bhujia, Navratna and Punjabi tadka will not be enough. I was told that customers usually

go for those brands that offer a range of varieties. Hence, Amira will have expand its

brand offerings in order to carve out a place for itself. As regards the innovation which isnecessary for a relatively unknown company in this sector, Amira will probably have to

follow the strategy of Garden. Garden is a brand from Mumbai which has brought new

flavours in the market. Diet Bhel and yellow banana chips are some of the new flavours

that Garden has introduced in the market and their success can be attributed to their

innovation.


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Page | 76

2. While conducting the survey in the North Delhi, I visited a shop called Raj BhujiaBhandar. The shop had most of the brands and a wide range of local brands too. The

retailer said that the shelf life of most branded products is said to be 6 months. However,

this is misleading. Despite the quality control measures, most snacks get stale after 2-3

months and start smelling. Even the market leader- Haldirams products have been victim

of this anomaly. Thus extra care should be taken to ensure that the shelf life of the snacks

is maintained.

3. Most retailers and customers said that there is no one preferred size of pack. It is largely adecision based on consumption. A lot of people consider 400 gm pack to be cost

effective. But they will not buy it for individual consumption. The schemes that run on 1

kg packs make them an appropriate buy for a family. Therefore the size will by and large

depend upon the number of people consuming the snacks.

4.

In West Delhi, some retailers brought to the fore a common suggestion for the company.Amira being a new player in the market will have launch Rs 5/ Rs 10 packs in order to

induce people to try a new brand. There is a less likely chance of people buying it if the

pack continues to be available only the current 150 gm size.

5. Most retailers in South Delhi said that there is a growing preference for healthy food.Whether or not those products actually have any impact on ones health remains to be

seen, but surely customers get attracted to buy a product that promises to be a diet

product. The Garden Fresh and Honey Money Top are two modern trade stores

located in New Friends Colony, South Delhi. Both the retailers threw light on how diet

products were selling most. There is a brand by the name of Diet foods which sells welldue to its value positioning. Haldirams has two products, Diet chidwa and Diet

murmura which sell well because of their value positioning.

6. While conducting the survey in Darya Ganj (Central Delhi), some retailers said thatBikano is the second favourite after Haldirams. As such when Haldirams is unavailable,

people usually prefer Bikano. The same has been reflected in the results all over Delhi.

They also pointed out that customers for some reason prefer to buy Haldirams in large

sizes while Bikano is preferred when smaller sizes have to be purchased.

They also said that for the last couple of weeks the sales team from Haldirams wasnt

visiting the stores as there is some rumour about Haldirams increasing their rates.


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Page | 77

7. While conducting the survey in South Delhi, some retailers suggested that Boondi is aseasonal snack which is highly preferred in the summer seasons. People usually have

Raita10 in summers, for which Boondi is a must.

Following analysis is for phase 2

A questionnaire was made and 120 responses were used for analysis and interpretation. 17

variables got classified under 6 factors. Following are the results-

Factor Variables

Factor 1 Availability, Placement, Spice, Differentflavours, Convenient packaging.

Factor 2 Comparative price, Attractive packaging,Target audience

Factor 3 Different sizes, small sizes, persuasion by

shopkeeperFactor 4 Schemes, Buy more on discountFactor 5 Expiry date, Shopkeepers suggestions,

IngredientsFactor 6 Price

Factor 1 has the highest Eigen value of 2.944 while Factor 2 has the next highest Eigen value of

1.921. Eigen values indicate the internal consistency between variables.

The following conclusion can be drawn from the results of phase 2-

1. Availability of snacks in all stores is preferred by customers. As such Amira foods willhave to ensure that they have a strong distribution network.

2. Customers do not like namkeens to be very spicy, spice element in moderation works justfine for most people.

3. Customers generally prefer a brand that offers a good number of variants.4. Convenient packing with say, a zip lock facility is something that customers prefer.

10Raita is an Indian condiment made with yoghurt and used

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