PAHALWAN Case Study

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The pride of Jammu, Pahalwan’s is a

household name in Jammu, deriving its


reputation from decades of excellence. But
the market dynamics has changed and has
presented the once untouchable company
with fresh problems. What should the
company do to hold its position in the
market?

Pahalwan’s-
A case study
Need for new marketing
strategy

Akash Rout- UM18076


Table of Contents
Introduction ...........................................................................................2

Market analysis- SWOT ..........................................................................2

Market analysis- PORTER .......................................................................3

Future strategy- Ansoff matrix...............................................................4

Problem Statement ................................................................................4

Suggestions ............................................................................................5

Conclusion..............................................................................................6

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Introduction
Pahalwan’s is a famous name in the Manufacturing, Trading, and Retailing of Indian Sweets,
Namkeen & other snacks. It is a Jammu establishment dedicated in the production of
authentic Indian sweets of the highest quality. The first shop was opened in 1934 with the
name ‘Pahalwan di Hatti’ by Anant Ram Abrol. The products consisted of raw milk and milk
based products such as curd, Barfi and Rabri. The establishment has built itself over the years
banking on quality of its offerings and the humble nature of Anant Ram. The consistency in
quality was recognized and the shop was awarded by the Prime Minister of State Jenab Sheikh
Abdullah. The establishment touched new heights when it was taken over by Anant Ram’s
nephew Sat Pal Abrol. But the competitive landscape is quickly changing with the entry of
MNCs and established Indian counterparts operating on national level. The emerging needs
of the increasing young population also had to be catered to. In a nutshell, the brand was
bracing itself for a new era where changing dynamics was the norm and where success cannot
be taken for granted anymore. These changing times pose a challenge to the owners, as they
aim to sustain the popularity as well as market share.

Market Analysis

SWOT
Strengths

 Consistency in quality
 An age old legacy which has built a huge reputation
 Novelty of products
 Price advantage as compared to that of MNCs
 A loyal base of customers who were ready to traverse long distances
Weakness

 Accessibility- Limited branches not enough to cater growing demand


 Traditional marketing techniques
 Limited competency- focussing only on Indian sweets and Indian fast food
 Unhealthy snacks
Opportunity

 Opening new branches


 Developing a potent communication plan
 Widening variety of products as well as styles & packages
Threats

 Changing preferences for customers


 Entry of MNCs and competition by National level establishments

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Porter’s 5 Forces:
 Industry Rivalry:
High
Pahalwan’s faces competition in the present landscape from local direct competitors
such as small sweet shops that cater to their restricted localities and from competitors
operating in national and international level like Haldiram and Nathu. Haldiram and
Nathu are well established brand names that can give a tough competition to
Pahalwan.

 Threat of new entrants: Low


New entrants in this industry pose little challenge to Pahalwan’s as this is an industry
which takes decades to build a trust and goodwill. So it is difficult for a new entrant to
directly challenge Pahalwan’s on a large scale.

 Threat of Substitutes: Medium


Foreign fast food chains were entering the competitive landscape, competing for the
same wallet share. The young brigade was increasingly preferring these MNCs as their
preferred destination for fast food. Additionally a new segment of consumers who
were health conscious opted for eateries that offered them healthy fast food
alternatives, thus, moving away from sweets and fried snacks that Pahalwan’s offered.

 Bargaining power of suppliers Low


Supply for raw materials to make sweets and snacks is never an issue since these
ingredients (milk, sugar etc.) are easily available and it doesn’t take a lot of trouble to
assure quality of these raw materials. However, procurement of quality raw materials
did pose some minor problems during early days. But once the business took off,
supply chain on the supplier side was no more a headache because every supplier
wants to be associated with a big name. Thus, a particular supplier cannot hold any
bargaining power on Pahalwan’s.

 Bargaining power of buyers High

A person seeking fast food today has considerable options before him and based on
mood or whim all options are probable. So a buyer today has considerable bargaining
power in this regard. Pahalwan’s has taken some measures to counter this by offering
coupons and bundling products. However, in spite of this food business depends a lot
on customer’s taste and preferences which are sure to be varied if a customer has
several choices. So, Pahalwan’s needs to have some exclusive offerings and should
focus on building up a loyal base.

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Problem Statements
 New entrants in market – Gone are the days when Pahalwan’s was the only reputed
name in the state, thus, it has a challenge in its hands to maintain its market share
while facing a stiff competition from MNCs.
 Changing preference of new generation- Rising disposable income coincides with the
entry of MNCs, which are driving the younger generation away from traditional Indian
Sweets and snacks. Thus, it has a tough task in its hand to attract the younger
generation.

Strategy Planning

ANSOFF matrix

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Suggestions
 Increase market penetration
Open outlets in most frequented spots by public like malls, airports etc.
 Market Expansion
Open branches in Jammu in places where steady traffic is expected. As a future plan
branches should also be opened in major north Indian cities to become a national level
brand to increase its chances to be seen in the same level of Haldiram and Nathu.
 Invest in additional resources
Expansion needs skilled workforce to maintain the quality standards that Pahalwan’s
is known for, so, training new workforce and establishing effective supply chain are
the areas which cannot be neglected
 Leverage the culture of Jammu
Pahalwan’s should embody the culture of Jammu and market itself as Jammu’s pride
to carve out an identity for itself.
 Cater to growing Health conscious population
Health and fitness are the new buzz words and people are increasingly becoming
health conscious day by day. Pahalwan’s should introduce new line of Sugar free
sweets and oil free snacks for health conscious people.
 Price advantage
Maintain price advantage against MNCs’ products to become the preferred
destination for mid and low level income group
 Strengthen operations
Establish strong distribution network to cater to growing demand which cannot be
compromised in the current market scenario where the stakes are high
 Packaged snacks
Packaged Pahalwan’s “namkeen” and packaged sweets with high shelf life should be
sold across India to catapult brand image.
 Organise events to pull in crowd
Organise food festivals during major Indian festivals to attract a healthy crowd which
would include cultural programs highlighting Jammu’s heritage and tradition
 Identify with the youth
Days that the youth associate with like Friendship day, Valentine’s Day can be used to
invite youngsters to create memories which makes a perception inside the youth that
“Pahalwan’s is a cool brand”.
 Increase brand visibility
Pahalwan’s visibility can be many folds increased by activities like becoming sponsors
in various cultural, sporting and business events across Jammu and nearby big cities
in nearby states to further its positioning.

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Conclusion
They say “Change is the new constant” and rightly so. The pace at which the market dynamics are
changing in this “Technology Age” leaves those behind who are unwilling to acknowledge and move
ahead with the times. Thus, this case study analysis of Pahalwans’s has tried to deal with this
“change” that threatens to swallow the establishment if proper steps are not taken. The few
suggestions that are mentioned in this report aims to keep the company thriving in these times. This
stage presents an opportunity to Pahalwan’s to either grow stronger or bow down timidly to the
competition. The objective is obviously the former. With the rise in competition, there is no way that
Pahalwan’s could retain the earlier market share that it was enjoying but what it has to aim for at
least is to corner its market share and possibly keep chipping at the share of others. Nevertheless,
challenging times await the company.

Thank You

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