CHAPTER : 1

INTRODUCTION

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About the Agency:-

Compony Name Raj Agency (Balaji wafers)

Company Activity Distribution
State Gujrat
District Surat
Industry Food Products
Type Private Limited
Company Status Active

Management of Raj Agency (Balaji wafers)

The Board of Directors and the Management of Raj agency (Balaji wafers) are committed to the
enhancement of its products and services, through sound business decisions, financial management
and high standards of ethics throughout the organization, by ensuring transparency and
professionalism in all decisions and transactions and achieving excellence in their field by
conforming to and exceeding wherever possible, the prevalent mandatory guidelines on Corporate
Governance and by regularly reviewing the Board processes and the Management systems for
further improvement.

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Company Profile:

‘One of india’s leading snack food manufacturer and distributor.’

Details

Name BALAJI WAFERS PRIVATE LIMITED

Website balajiwafers.com
Headquarters Rajkot, Gujarat, India
Key people Bhikhubhai Virani,

Chandubhai Virani,

Kanubhai Virani
Industry Food products
Brand Name Balaji wafers
Number of 5000

employees
Registration 27555

Number
Company Company limited by Shares

Category
Date of 22 September 1995

Incorporation
Activity Manufacture of other food products
Company Active

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Status
CIN U15400GJ1995PTC027555

Product Details:

14 Products
Details

Wafers
Namkeen 23 Products
Western snacks 14 Products
Total Products 51 Products

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 WAFERS :-

STACK UP – SIZZLING CHILLI  PERI PERI WAFERS

STACK UP SALTED  WAFERS – PIZZY MASALA
WAFERS – SIMPLY SALTED  CRUNCHEX – SIMPLY SALTED
WAFERS – MASALA MASTI  CRUNCHEX – CHILLI TADKA
WAFERS – TOMATO TWIST  RUMBLES – PUDINA TWIST
WAFERS – CHAAT CHASKA  BANANA WAFERS – MASALA
WAFERS – CREAM & ONION  BANANA WAFERS – MARI

NAMKEEN :-

YUMSTIX  SHING BHUJIA

PUNJABI TADKA  NIMBU S.B.
SAGO BALLS  SALTED PEANUTS
KHATA MITHA MIX  MASALA SHING
TIKHA MITHA MIX  ALOO SEV
MITHA FARALI CHIWDA  CLASSIC SEV
FARALI CHEVDO  BHUJIA SEV
CHANA JOR GARAM  GATHIYA
BHEL MIX  RATLAMI SEV
MUNG DAL  SEV MURMURA
CHANA DAL  MASALA SEV MURMURA
MASALA PEAS

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 WESTERN SNACKS :-

GIPPI NOODLES  POPRINGS – YUMMY CHEESE

MOON CRUNCHIES – MASALA  POPRINGS – MASALA
FLAMIN HOT NACHOS  WHEELOS – MASALA
TOMATO SALSA NACHOS  CP – FLAMIN’ HOT
CHEESE CHILLI NACHOS  CP – CHINESE CHASKA
FUNNE – SPICY PUNCH  CP – TANGY TOMATO
SCOOPITOS  CP – MASALA MASTI

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HISTORY OF COMPANY:-
Balaji Wafers, one of the leading snack-food manufacturers and distributors. The Virani brothers
started making wafers on their own. Balaji wafer headquarters in Rajkot, Gujrat, India. Bhikhubhai
Virani, Chandubhai, and Kanubhai Virani are founders of the Balaji wafer. Chandubhai and his
brother Kanubhai and Bhikhubhai belong from a small village Dhan Dhoraji, Jamnagar District,
Gujrat. Their father Popatbhai Virani’s occupation was farming.

In 1972 Popatbhai sold their agricultural land for $280 ( 20,000 Rupees ) and gave them to enter
into business. Virani brothers started a farm equipment business but had the same lack of
experience and knowledge regarding marketing. They could not succeed and lost all funds. After
these losses Virani brothers haven’t any land for farming, so they went to Rajkot for new
opportunities and jobs. In 1994 Virani brothers took the canteen of the Astron cinema. They worked
hard and loyally and soon they were asked the owner to run the canteen. In the beginning, they
were sold wafers and sandwiches. Virani Brothers noticed wafer packets most sold in the canteen.

In 1984, they started manufacturing the Potato wafers and distributed them to nearby retailers, the
sale was small but their dreams were too high. After the retail success, they were inspired to set up a
large unit. In 1989 Virani brothers took a loan to set up a semi-automated plant in Rajkot. The aim
was to improve the quality and hygiene of the wafers and also wanted products to reach every
region of the country. The semi-automated plant reduced the efforts but after certain periods went
under maintenance or technical issues. Then the Virani brothers set up a fully automated
manufacturing plant, also extended the line of products for namkeen and snacks.

In the Initial stage, Balaji wafers set up their plant at Valsad, Rajkot with a fully automated concept
of making potato chips they operated there for around 22 years. The Rajkot manufacturing plant
was the largest in the country. Also widened the distribution network to other states. In 2008 they
set up a new plant in Valsad, one of the biggest in Asia at the point. Also, they built manufacturing
units for namkeen and other snacks in the same region to achieve increasing demands from another
state. They set up a hi-tech plant in 2015 at Indore to serve the northern and western regions of the
country.

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Page 8 of 20
SWOT Analysis:-

Strengths:

Business has a huge geographical reach, customer base and preserves a strong brand identity.

The business's emphasis on continuousproduct innovation, enabling the business to maintaininga

strong market position and to enhance its client complete satisfaction.

The company had been quite successful in attaining moms and dad's choice and was extremely
trusted due to its business model of supplying safe education and discovering environment to kids
by working together with schools, market networks and teachers.

Balaji Wafers Taking The Pepsi Challenge case solution parks are extremely preferred by children,
as it offers 200 plus activities, 90 different trades and specialists to be performed by each child and
other benefits, such as: commitment programs.

Weaknesses:

Business has actually experienced lack of technical and monetary resources, which has restricted its
capability to grow its company domestically and globally.

Balaji Wafers Taking The Pepsi Challenge case analysis is dealing with increasing decline of
Mexican Peso, which has resulted in decreasing of the monetary performance.

Business has absence of experience and knowledge of operating in theme and theme park in
industry, which has limited its diversity in the highly demanded and lucrative amusement park
industry.

Threats:

Balaji Wafers Taking The Pepsi Challenge faces extreme competition from international and
domestic competitors in addition to quickly altering patterns of entertainment industry and client
preferences. This might lead to business losing its identity as a strong brand name and key player

Business suffers from an increased risk of replication of its organisation model by numerous rivals.
The business model is the core strength of the business and the main reason of company's success.

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The increasing decline of Mexican Peso against the U.S. dollars may decline business's financial
stability.

Opportunities:

The business can avail the opportunity of increasing need of theme parks in U.S. by going into the
U.S. entertainment industry.

Considering the high internet penetration in Mexico, the business can take advantage of this
opportunity by establishing an interactive digital platform for marketing its service and bring in
maximum clients.

QUALITY STANDARDS
Balaji Wafers is committed to providing Quality products and takes extra care to ensure that its high
standards are met at every step of production.
Only the best and graded raw materials are used for making the products. Production is continuous and
automatic to ensure Zero human contact to preserve its sterility. International parameters are strictly
adhered to for nutritional and hygienic values.

MANUFACTURING FACILITIES
Balaji Wafers is constantly striving to upgrade its technological strengths with latest machinery and
processes. The aim is to manufacture the best possible product, with an eye towards “green” practices and
smoother work systems for the staff.
The company was among the first to install a fully automated plant in Gujarat.

VISION
The Company’s Vision, shared by the brothers and the young is to grow into a global giant using modern
methods and techniques. The key drivers in this journey of growth will continue to be the age-old
traditions of Trust and Quality, without any compromise

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MISSION
The company aims to a ‘value for money product’, accessible to consumers all across the country. To
accomplish this, the company is seeking to strategically develop a strong and credible distribution
network, C&F agents, dealers and retailers.

DEPARTMENTS OF COMPANY :-
PRODUCTION DEPARTMENT

MARKETING DEPARTMENT

HUMANRESOURCE DEPARTMENT

PRODUCTION DEPARTMENT:-

 Production planning & control

 Production capacity
 Packing department

MARKETING DEPARTMENT:-

Channel of distribution
Manufacture>Distributor>Dealer>Retailer>consumer

Marketing mix
 Product
 Price
 Place
 Promotion

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HUMANRESOURCE DEPARTMENT:-

 Recruitment and selection

 Human resource information system
 Wage and salary administration
 Training and development
 Employee benefits and services

COMPETITORS :-

 Uncle Chips
 LAY’S ingo
 Parle’s Wafers
 Pringles chips
 Gopal Namkeen
 Haldiram’s Chips
 Kettle Studio
 Yellow Diamond
 Budhani Wafers

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ABOUT THE TOPIC:-
In today's competitive environment, the role of packaging has change due to increasing self-service
and changing consumer's lifestyle. Firm's interest in the package as a total of sales promotion is
growing increasingly. The package become an ultimate selling preposition stimulating impulsive
buying behavior, increasing market share and reducing promotional costs. Packaging can be defined
as the container which is necessary to convey a product to the ultimate consumer, as contrasted with
packing (cartons, crates, etc.) that is required for bulk shipment. Also, packaging is art of enclosing
or protecting products for distribution, strong, sales, which is bought by the consumer, pilditch has
defined packaging as the silent salesman in the store and it was the only communication between a
product and the final consumer at the point of sales, most consumers are moved by the products
package, that is by the color of the design used, barrier protection, the image used, information
transmission that is how to use the product and mostly containing the expiry date for the product.
Now for a product to travel safely through the channel of distribution it must have at least the
minimum protection offered by the through the use containers, this is called packaging. Packaging
actually plays a critical role in protecting fresh produce and processed food in transit, in strong, at
point of sale, and prior to consumption. In doing so, it help deliver a wide range of function while
reducing food waste. Packaging as a silent salesman is directed toward influencing the point of
purchase buying decision through the package design, color, etc. Most companies are involved in
packaging primarily to gain a non-price competitive advantage by utilizing the package to present a
favorable image of the product which it contains. Packaging is a critical strategic element for brand
differentiation and identity. Underwood, Klein and Burke found that designing packages with
product images gain attention for brands, especially brand that are less familiar and that provide
experiential benefits.

Packaging really affects the buying behavior of some individual at the young people. Packaging
provides the manufacturer with the final to persuade prospective buyer prior to brand selection,
because shoppers are exposed to packages just as they are in other forms of promotion. Also,
consumer can easily overcome the challenge of visually assessing volume contained a variety of
shapes because most product labels provide the information via packaging.

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The purchase design is a series of choices or judgment made by a consumer prior to making a
purchase that begins once the consumer has established a willingness to buy. The consumer must
then decide where making the purchase, what brand, model, or size to purchase, when to make the
purchase, how much to spend, and what method of payment will be used., but this decision can only
be influence by the product package, how different is the product form other brands, thus packaging
affects consumer purchase decision.

According to Rundh package attracts consumer's attention to particular brands, enhances its image,
and influences consumer's perception about products, thus packaging a certain product based on
your consumer needs, the producer can use labeling or image description to arouse the interest of
the consumer to purchase that product, when the consumer is moved by the image or label used to
package the product he or she desires or makes a purchase for that product is needed.

A lot of firms in the industry have embarked on one strategy or the other in order to gain more
market share for their products. In an attempt to get more customer to purchase their product,
companies have engaged in different innovation so as to make their product compete with that of
competitors, the packaging form is one way to gain consumer notice. Organization now engage in
good packaging and repackaging of their product making it difficult for consumers to make choices
among different competing product. Also a lot of money has been incurred by organizations
because of packaging. Mostly when trying to differentiate their products form competitors. Also,
the problem of the issue of product differentiation in enhancing consumer evaluation of the product
has not been ascertained important to increase the purchase of a product. If the information supply
of the label does not agree with the knowledge and expectation of the consumer, it may serve as a
disincentive for the product purchase. It is against this background that this study seeks to examine
the impact of packaging on consumer purchase decisions.

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The Factors that influence a Product’s Packaging:-
 Protection: Packaging of the product is done to protect it from damage during
shipping and handling, and to lessen the decaying in case the product is exposed
to foul air or other harmful factors by accident.

 Design & Structure: Good packaging design and proper structure can add value
to a product. For instance, the benefits can be obtained from the structure of a
package that enhances the function of the product while the design give the
product an appealing look.

 Appearance: Package design should be attractive enough to capture customers’

attention as they are shopping or just glancing through a catalogue or your
website. This is particularly important for customers who are not very familiar
with the product. Designs that are unique and stand out are more likely to stay in
the mind of a shopper.

 Acceptance: Package designs are not just to attract the end user, they also have
to be accepted and liked by distributors who are going to sell the product. For
instance, a retailer may not be interested in your package if it does not conform to
the requirements they have, for storing the products and displaying them on the
shelves.

 Cost: Packaging of a particular product can be a significant portion of its selling

price. In the cosmetics industry, it is estimated that the packaging cost of some
products may be as high as 40% of its product’s selling price. Make smart
packaging decisions in order to reduce the product’s selling price and possibly
lead to higher profits due to increase in sales.

 Re-designing: Developing an entirely new package for your product can be

expensive. But it is also important to be part of the trend, since your product
should appeal to your consumers. If you feel that your product packaging requires
an update, then consider re-designing the package.

 Environmental & Legal Issues: While deciding on the package structure and

design, you should also include assessment of its environmental impact especially
for product packages that are frequently discarded. Ensure that you create
packages that do not infringe on intellectual property, such as trademarks,
copyrights or patents, held by others companies. These are some of the key
factors that influence a product’s package design and branding. With constant
innovation in design and printing, packaging has become a key influencer in the
market and helps attract the right attention amongst a hoard of other products.

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Characteristics of packaging

To contain produce

 As an efficient handling unit, easy to be handled by one person.

 As a marketable unit. e.g. units with the same content and weight.

To protect produce against

 Rough handling during loading, unloading and transport - rigid crate.

 Pressure during stacking.
 Moisture or water loss with consequent weight and appearance loss.
 Heat: air flow through crate or box via ventilation holes.
 Fumigation possible through ventilation holes.

To communicate:

 Identification: a label with country of origin, volume, type or variety

of product, etc. printed on it.
 Marketing, advertising: recognisable trade name and trademark.

To market the product:

 Proper packaging will lead to reduced injuries of fruits and

vegetables and subsequently to improvement of appearance.
 Standard units (weight, count) of a certain produce will increase
speed and efficiency of marketing.
 With reduced costs of transport and handling, stacking and
combining of packages into layer units like pallets is possible. A
more efficient use of space and reduced losses will lower the
marketing costs.
 Labels and slots facilitate inspection.

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FMCG INDUSTRY DETAIL:-
The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian
economy. The market size of FMCG in India is estimated to grow from US$ 30 billion in 2011 to
US$ 75 billion in 2018. Food products is the leading segment, accounting for 43 per cent of the
overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in terms of
market share. Growing awareness, easier access, and changing lifestyle have been the key growth
drivers for the sector.

FMCG goods are popularly known as consumer packaged goods. Items in this category include all
consumables (other than groceries) people buy at regular intervals. The most common in the list are
detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff and household
accessories and extends to certain electronic goods. These items are meant for daily of frequent
consumption and have a high return.

PESTEL Analysis:-
A PESTAL analysis is a framework or tool used by marketers to analyse and monitor the macro-
environmental (external marketing environment) factors that have an impact on an

organisation. The result of which is used to identify threats and weaknesses which is used in a
SWOT

analysis.

Political

Tax structure: complicated tax structure, high in direct tax and changing tax policies are
challenges for this sector.

Infrastructure issues: performance of FMCG sector is very much dependent on government

spending on agricultural, power and transportation infrastructure.

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Page 18 of 20
Economical

GDP Growth: Growth of FMCG industry is consistent with the Indian economy, it has grown by

15% over past 5 years. But it has not affected much to Indian FMCG sector.

Consumer Income: over the past few years, India has seen increased economic growth. The GDP
per capita income of India increased from 797.26 US$ in 2006 to 1262.4 US$ in 2014. It resulted in
increase of consumer expenditure. Private consumption: The Indian economy, unlike other
economies, has a very high rate of private

consumption (61%).

Social

Change in consumer profile: Rapid urbanization, increased literacy, increase I nuclear families
and rising per capita income, have all caused rapid growth and change in demand patterns, leading
to an explosion of new opportunities. Around 45 per cent of the population in India is below 20 year
to rise future.

Change in life style: In past decade change are taking place in consumption pattern of Indian
consumer with more spending on discretionary (52%) than necessities (eg food, clothing), in last
decade the apparel, footwear and healthcare segments have registered highest wroth whereas
essentials such as cereals, edible oil, fruits and vegetables shown decline.

Technology

Effective use of technology is seen only in leading companies like HUL, ITI etc. E-Commerce will
boost FMCG sales in future. More than 150 million consumers would be influenced by digital by
2020 and they will spend more than $45 billion on FMCG categories.

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Environmental

The FMCG manufacture products from raw materials that are grown in the fields and are result of
agriculture activities in the region, therefore they are careful in protecting and preserving the
environment.

The constraint on energy is reduced by using alternative sources of energy like herbal waste.
Government also has made some antidumping law which prohibits manufacturing facilities to
contaminate any clean source of water flow.

Legal

Government replaced various indirect taxes imposed on FMCD with a more direct approach, i.e.
GST.

This will help in lowering price as all taxes imposed increase the cost of production and

producer sector for profit maximization.

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