New Minor Project Report Haldiram's
New Minor Project Report Haldiram's
New Minor Project Report Haldiram's
ON
“MARKETING STRATEGY OF HALDIRAM’S”
SESSION2021-2024
CERTIFICATE
Project Guide
Assistant Professor
I offer my sincere thanks and humble regards to JEMTEC, Greater Noida for
imparting us very valuable professional training in BBA.
I pay my gratitude and sincere regards to
Dr./Ms......................................................., my project Guide for giving me the
cream of his knowledge. I am thankful to him/her as he/she has been a constant
source of advice, motivation and inspiration. I am also thankful to him/her for
giving his suggestions and encouragement throughout the project work.
I take the opportunity to express my gratitude and thanks to our computer Lab
staff and library staff for providing me opportunity to utilize their resources for
the completion of the project.
I am also thankful to my family and friends for constantly motivating me to
complete the project and providing me an environment, which enhanced my
knowledge.
(Raghav Mittal)
Roll no.08125501721
Haldiram’s is a huge brand and has diversified its activities into various industries.
The one industry where it is the king right now is the “namkeens” industry. Hence
the project mainly focuses on studying Haldiram’s namkeen division, though other
areas have been briefly mentioned.
Haldiram’s offers a wide range of products to its customers. The product range
includes namkeens, sweets sharbats, bakery items, dairy products, chips, pappad
and ice creams. However namkeens remain the main area of focus for the group as
it contributes close to 60% of its total revenues. By specializing in the
manufacturing in the namkeen market the company has created a niche market.
The raw materials used to prepare namkeens are of best of quality and are sourced
from all over India.
The food industry in India is forever changing to suit their consumers’ palate,
preference and pocket. All the players in the industry thus, have to constantly
adapt to the ever-changing trends and invent and re-invent themselves to stay in
the league.
Marketing Strategy of Haldirams analyses the brand with the marketing mix
framework which covers the 4Ps (Product, Price, Place, Promotion). There
are several marketing strategies like product innovation, pricing approach,
promotion planning etc. These business strategies, based on Haldirams
marketing mix, help the brand succeed in the market.
Haldirams Marketing Strategy comprises of not only its Marketing Mix, but
also segmentation, targeting, positoning, competition and analysis like
SWOT.
CHAPTER-2
COMPANY PROFILE
2.1. Overview of Industry as whole
Company Logo
City Nagpur
State/Province MS
Country
India
Phone 00917122681191
Fax 00917122680218
Website http://www.haldirams.com/
- Asian Foods
Products - Candy & Confectionery
- Processed Food
- Snacks
Awards
Haldiram’s has a large product basket for the customers to choose from. One
of the biggest reasons for their namkeen segment succeeding is the
continuous updation of their product range.
Their products are known among the most hygienic products available in this
segment.
Their packaging is attractive and innovative which makes for easy discernment
of their products on the shelves, is safe and keeps contents fresh for long.
Their production processes are semi-automated and by using state of the art
technology they have been able to increase the shelf life of their products
from one week to six months.
Haldiram’s has been able to build its brand today on the basis of word of
mouth publicity, which has actually taken a lot of people by surprise.
Approval by FDA-HACCP, ISO 9002 and SPA stand testimony to the emphasis
that Haldiram’s lays on the high quality for its products.
B. Weaknesses
Haldiram’s doesn’t lay emphasis on the need to carry out market surveys
either to know the consumer needs or their feedback.
Haldiram’s started advertising its products too late, as it is not a firm believer
in big marketing budgets and lavish promos because of which they might have
lost the initial advantage.
The Haldiram’s group consists of three concerns that are independent of each
other and also there is a lack of collaboration between the three concerns,
which affects the reputation of the company and is a hindrance in its growth.
The company is not as cash rich as its competitors, which gives its competitors
an edge.
If the company starts associating itself with other brands, it will help
strengthen the brand image and bring in larger profits.
Haldiram’s doesn’t have any special namkeen for the kids and teenagers
segment, which is a huge potential target market.
Greater scope to increase market share and profits as they have just started
advertising. Opportunity to go into radio advertising leading to greater rural
penetration.
To cut into the unbranded sector by reducing prices to capture value conscious
customers.
D. Threats
A large number of competitors have started entering this segment which
might erode the market share of Haldiram’s. For example companies like Frito
Lay’s, ITC, etc, which is cash rich companies, can actually undercut Haldiram’s
profits as they can afford to reduce their prices.
As there are three concerns under the Haldiram’s group, the quality standards
differ substantially and any irresponsibility on the part of any one concern will
have a negative impact on all the three as they share the same brand name.
Competitors such as MTR, Tasty Bites and ITC have already entered the
western snack food market and taken the initial advantage whereas except for
potato chips, Haldiram’s is still considering entering this segment.
1 Pavitra kumar
Author Pavitra Kumar does tell a highly readable tale in Bhujia Barons ,
which chronicles how Ganga Bhishen Agarwal (aka Haldiram) built a
₹5,000 crore empire starting out with a humble snack stall in the back
alleys of Bikaner. The story, which traverses four generations of
Agarwals from 1918 to the present day, features many colourful
personalities, the occasional black sheep and a good dose of family
feuds reminiscent of primetime television soaps.
PRIMARY DATA is the first hand data, new data gathered to help solve the
problem at hand. Data is collected personally for the specific project through
research. Questionnaire was prepared to gather information on the company
marketing and services.
SECONDARY DATA is the is the second hand data collected by someone else with
is gathered through internet, publications, articles, company books, etc.
The data collection method used was none other than survey method which is
usually incorporated for collection of raw information. The survey method is
advantageous because it helps to collect a great deal of information about an
Survey:
The type of survey undertaken was that of sample type keeping in consideration
the time constraint and paraphemalic, besides the viability of census survey. The
sample survey thus being taken to the right path to reach the desired destination
was carefully planed to convert of the operation by using selected samples.
Sampling
: With the customer being unknown and given the time and resource constraints
random sample was obtained from different people.
Statistical Tool:
Haldiram’s offers a wide range of products to its customers. The product range
includes namkeens, sweets sharbats, bakery items, dairy products, chips, pappad
and ice creams. However namkeens remain the main area of focus for the group as
it contributes close to 60% of its total revenues. By specializing in the
manufacturing in the namkeen market the company has created a niche market.
The raw materials used to prepare namkeens are of best of quality and are sourced
from all over India.
Haldiram’s customizes its products to suit the tastes and preferences of
customers from different parts of India. It launched products, which catered to
the tastes of people belonging to specific regions. For example it launched
‘Murukkus’ a south Indian Snack and Chennai Mixture’ for south Indian
customers. Similarly Haldiram’s launched ‘bhelpuri’ keeping in mind customers
residing in western India. The company offered certain products such as
‘Nazarana’, ‘Panchratan’ and ‘Premium’ only during the festival season in gift
packs. These measures have helped Haldiram’s compete effectively in a market
that is flooded with a variety of snack items in different shapes, sizes & flavors. It
has also recently launched biscuits & cookies.
Table 1.1 on the following page shows the list of Haldiram’s products
Table 1.1: Product List
Namkeens
1. Kahmiri Mixture
2. Cornflakes Mixture
3. Kaju Mixture
Sweets Syrups (700 ML)
Namkeens
Savouries or namkeens, as they are known, is where the Haldiram’s story began.
Savoury snacks have been a part of Indian food habit since ages. They are
normally consumed at teatime. The variety is almost mind-boggling with
specialties from all regions, which have gained national acceptance.
The company has a team of experienced Bikaneri namkeen makers who employ
techniques that have remained unchanged for over two hundred years. They use
the most high quality and original ingredients. So much so, that even the spices
are grinded in special spice grinders to give that original Bikaneri flavour which no
one else can deliver. Small wonder then that, they have managed to capture a
lion’s share of the market. And today “Haldiram’s” is a name synonymous with
authenticity in namkeen’s.
Sweets
Sweets, which is must for some, an indulgence for others; and for Haldiram’s
another area to establish its superior quality. Haldiram's sweets have found their
way into millions of households and left behind an after taste of great satisfaction,
which is not surprising because all the sweets here are made traditionally, by
expert cooks using the freshest and purest ingredients each day. After which they
are tested for quality and taste. Haldiram’s sweets are known for their range too.
Delicious sweets like Rasgullas, Jamphal (GulabJamuns), Raj Bhog, Nargisi Rolls,
are hot favourites among people in India and across the world.
The fact that Haldiram’s sweets are packaged and tinned in mechanized plants,
which gives them a long shelf life of about 12 months, is also of great significance.
Syrups
Imagine a hot summer day and a tall glass of chilled orange crush to cool you
down. Or a glass of hot badam milk for a cold winter night. Sounds delicious,
doesn't it? And Haldiram's range of crushes and sherbets are another fine
example of its plan to diversify and be present in every sphere of the food market.
Price
Haldiram’s offers its products at competitive prices in order to penetrate the huge
unorganized market of namkeens and sweets.
The company pricing strategy has taken into consideration the price conscious
nature of consumers in India. Haldiram’s has launched namkeens in small
packets of 30 grams, priced as low as Rs. 5. The company also launched
namkeens in 5 different packs with prices varying according to their weights
The prices also vary on the basis of the type of namkeens and the raw
materials used to manufacture it. The cost of metallized packing also has an
impact on the price, especially in the case of snack foods.
The company revises the prices of its products upwards only when there is a
steep increase in the raw material costs or if additional taxes are imposed
Place
The Haldiram’s products are distributed all over the country and outside country
also. Haldiram’s is successfully exporting its products to USA, UK, Australia,
Middle East & Far East Countries, Germany, Philippines, New Zealand, Nepal, Sri
Lanka, UAE, France, Spain, Italy, Holland, Japan, etc., Haldiram’s is an ISO and
HACCP Certified Company and is approved by FDA, USA.
Haldiram’s
Organization
C&F
Distributor
Retailer
Consumers
Consumers
One of the main functions of C&F agents is to achieve the targets assigned to
them. They are responsible for all the activities of their areas.
Maximum sale of the Haldiram’s products comes from the Nankeens and other
packed products which is nearly Rs.250 crore yearly.
The sale of other goods including the sales of its entire outlet is around Rs.150
crore.
Warehouse Facilities
Registered office.
D. Order processing
Orders within Delhi and the places near Delhi (like Meerut) are delivered
within 24 hours.
Orders outside Delhi are delivered according to the distance. It takes from
24 hours to 72 hours.
Every distributor and C&F agent has a fixed day in a week to give an order.
Haldiram’s has its own warehouse, which is managed by its own staff
The order of Haldiram’s is delivered by truck. Haldiram’s pays the expenses for
transportation of the goods.
Promotion
Haldiram’s product promotion had been low key until competition intensified in
the snack foods market. The company tied with ‘Profile Advertising’ for promoting
its products. Attractive posters, brochures and mailers are designed to enhance
the visibility of the Haldiram’s brand.
Different varieties of posters are designed to appeal to the masses. The punch
line for Haldiram’s products was ‘Always in good taste’. Advertising depicting
the entire range of Haldiram’s sweets and namkeens were published in the
print media (magazines and newspapers). These advertisements had captions
such as ‘millions of tongues can’t go wrong’, ‘what are you waiting for,
Diwali??’ and ‘Keeping your taste buds on their toes’.
To increase the visibility of the Haldiram’s brand, the company has placed its
hoardings in high traffic areas such as train stations and bus stations. Posters
are designed for display on public transport vehicles such as buses and
hoardings.
Captions are developed that focus on individual products such as ‘yeh corn hai’
(this is corn), ‘chota samosa – big mazaa’ (small samosa- big entertainment)
‘yeh kashmiri mix khoob jamega’ and ‘oozing with taste’ (for Rasgoolas)
promoted individual products .
Special brochures are designed for those customers who want to know more
about Haldiram’s products. The brochures describe the products and give
information about the ingredients used to make those products. Mailers are
also sent to loyal customers and important corporate clients as a token of
appreciation for their patronage.
Posters highlighting the shelf life of its products carried the caption ‘six months
on the shelf and six seconds in your mouth’.
The showrooms and retail outlets of Haldiram’s give importance to the point
of purchase (POP) displays. Haldiram’s snacks are displayed on special racks,
usually outside retail outlets. The showrooms has sign boards displaying
mouthwatering delicacies with captions such as ‘Chinese Delight’, ‘Simply
South’, ‘The king of all chats.’ Posters containing a brief account of the history
of Haldiram’s along with pictures of its products are also displayed at these
showrooms.
Haldiram’s has also diversified into the restaurant business to cash on its brand
image. The company has established 6 restaurants overall in India. The
restaurant at Nagpur devised an innovative strategy to increase its business. It
facilitated people who were traveling by train to order food from places where
stockists of Haldiram’s, Nagpur unit were located. The customer could order
for lunch/dinner by sending a demand draft or a cheque to the Nagpur unit or
giving the same to specified local distributors belonging to the Nagpur unit.
Along with the DD/Cheque, customers had to provide information such as the
same name of the train, its likely time of arrival at Nagpur, their names and
coach and seat numbers.
To cater to NRI’s and foreign tourists, who hesitate to consume snack foods
sold by the roadside vendors since they do not prepare the foods in a hygienic
manner, Haldiram’s restaurant uses specially purified water to make snack
foods including ‘pani puri’ & ‘chat paapri’.
Haldiram’s typography contains a very stylized and sophisticated font style, which
conveys the image and the personality of the brand.
The layout is picture heavy with extensive use of colour so as to make the
advertisement attractive and tempting, which is true of any food advertisement.
Initial advertising of the brand contained long copy but this phenomenon has
recently changed as the company is now going in for a very precise and clear form
of communication in an informal manner.
c) Attitudinal
Haldiram’s advertisements are not attitudinal in nature but are rather formal and
mature. This trend is steadily converting into a more informal, relaxed and
‘hinglish’ style
Eleven Brand Definitions
Fig 3.1: Eleven Brand Definitions
PRODUCT
BRAND
BRAND
EQUITY
BRAND
PROPERTY
BRAND NAME
BRAND HALDIRAM’S
MNEMONI C
BRAND
CORE
VALUE
BRAND
POSITIONING
BRAND
CHARACTER
BRAND BRAND
POSITION PERSONALITY
a) Product
Haldiram’s products are traditional high quality Indian sweets, namkeens and
snack food items at a premium yet affordable price. They were the first in India to
use state-of-the-art technology for manufacturing traditional Indian snack items
thus setting quality standards and improving the shelf life of the products as well.
b) Brand
When it comes to sweets, namkeens and snack food items, Haldiram’s is a name
trusted across the Indian sub-continent. It is a name associated with high quality
and traditional taste.
c) Brand Name
The brand name Haldiram’s came from the owner’s forefathers and one thing is
clear, the name has been chosen on a purely personal basis. What was chosen as
a name for the company decades ago has today revolutionized the way we look at
the ethnic snack food industry.
Haldiram’s brand core values are quality, taste, variety, traditional and very
Indian.
e) Brand Character
The brand character of Haldiram’s that distinguishes it from its main competitor
FRITO LAYS is its ‘traditional Indian taste’.
f) Brand Personality
It is not the brand alone but the manner in which the brand presents its
characteristics. Haldiram’s depicts the personality of a man, who is rooted in his
tradition out of choice and not compulsion. He is very Indian in his tastes, choices
and behavior and puts a high premium on quality as well.
g) Brand Position
Its position in terms of pricing is premium yet affordable. It enjoys top of the mind
recall and awareness in its target audience but this could very easily be subverted
if the company does not bring into place strong branding strategies immediately.
h) Brand Positioning
i) Mnemonic
Whenever one things of a brand, the first thing that comes to the mind that
reminds us of just the brand and not the features attached to it is considered as
the mnemonic for that brand. In Haldiram’s case it is not available as yet but is
under consideration. For the time being the logo itself could be taken as the
mnemonic for the brand.
j) Brand Property
It is the memory device, which not only reminds the consumers of the brand
name but also its core values. In case of Haldiram’s the brand property would be
its red and white stylized logo and its base line “Every zuban pe” which is
reminiscent of the fact that the brand is an established one with top of the mind
recall.
k) Brand Equity
In case of Haldiram’s the brand equity is its 70% holding of the entire market for
namkeens, its undisputed leadership in the sweets category and also top of the
mind recall amongst the target audiences’ vis-à-vis the competitors in the sweets
and namkeen market achieved through decades of quality and taste control
measures. The taste that Haldiram’s provides through its products is very Indian
and yet it maintains international quality standards.
31-40
22%
25-30
38%
A. Consumption Patterns
NO
9%
YES
91%
In response as to whether or not they consumed Haldiram’s products, 29 of the
32 answered in the positive, which translates into almost 91% of the sample size.
This establishes the superiority and awareness of the product among the people.
Also another interesting point observed was that the three who didn’t consume
Haldiram’s products weren’t actually averse to Haldiram’s products but did not
consume them because they either didn’t consume namkeens generally or had
some medical constraints.
Another point that came across was that when questioned about the
consumption of other brands, the closest competition for Haldiram’s came form
Lehar and Lays as 21 of the surveyed people consumed these too. Also only
34% preferred local snacks when compared to branded snacks which shows that
the branded snacks segment is cutting into the unbranded segment.
Namkeen Consumption
OTHERS 7
3
Brand
MTR
BIKANER 14
LEHAR 21
LAYS 21
HALDIRAM'S 29
0 5 10 15 20 25 30 35
No. of Respondents
YES
34%
NO
66%
B. Brand Loyalty
1-3 years
31%
6mths- 1 year
10% greater than 3 yrs
59%
less than 6 mths 6mths- 1 year 1-3 years greater than 3 yrs
59% of the respondents have been consuming Haldiram’s namkeens for over 3
years while 31% have been consuming it for between 1-3 years. With the
arrival of so many competitors on the scene, even a period of year is long
enough to prove brand loyalty which is established very firmly in this case.
Thus the chances of the substitutability of the Haldiram’s namkeens by any
other brand seem to be rather low as there has been no switching of brands by
any of these respondents. Those who have tried it have maintained their loyalty
towards it. This is again re-iterated by the following chart, which depicts the
perceived change in the quality of Haldiram’s namkeens by the consumer.
Comparison of quality over the period of use
No. of Respondents 16
14
12
10
8
6
4
2
0
Significantly Better Neutral Worse Significantly
Better Worse
None of the respondents subscribed to the view that the quality of Haldiram’s
namkeens has got worse. They were either neutral or found it to be
better/significantly better than before. This might be one of the reasons for the
strong brand loyalty.
The Influencer
Friends 10
Neighbours 1
Relatives 1
Family 14
Ads 1
Self 18
0 2 4 6 8 10 12 14 16 18 20
No. of Respondents
Buying Roles
On the basis of the chart above, it is evident that when it comes to buying
namkeens people tend not to get influenced by others. They rely on their own
sense of judgement to buy namkeens. However in some cases the family
members tend to influence the buying patterns of the buyer. Hence in this case
there seems to be a vacuum when it comes to the role of the ‘Influencer’.
Because of this the respondent himself also usually plays the role of the
‘Decider’.
Packaging
Taste
Factors
Quality
Brand Name
Price
0 5 10 15 20 25
No. of Respondents
D. Consumers gave the highest priority to the taste of the namkeens as
compared to the other factors. Quality came in a close second on their
priority list. What came, as a surprise was that none of the respondents
considered packaging as part of their selection criteria, on which Haldiram’s
usually lays so much stress.
E. Again when asked to rate the importance level of six factors, the results were
interesting as most of the respondents considered ‘Packaging’ as only
somewhat important. Also the opinion on the price feature was divided as
some of them considered it being important while some others considered it
somewhat important and some even didn’t find it important. The strongest
factors that influenced the buyer while purchasing namkeens were Food taste
and quality and Hygiene. The majority of the respondents rated these two
factors as being ‘Very Important’. Apart from this consumers also
considered ‘Variety’ as an ‘Important’ factor while buying Namkeens.
Nutritional value didn’t seem to have much of an effect on the buying trends
as opinion here again seems to be divided.
Feature Preference(s)
No. of Respondants
30
25
20
15
10
5
0
Variety Food Hygiene Nutritional Price Packag-
Taste & Value ing
Quality
Very High
3%
High
41%
Reasonable
56%
95
90
85
80
Packaging Variety Price Quality Hygiene Taste
Factor
In the above chart, the respondents were asked to rate the factors based on a 5-
point scale, 5 being the highest. The total score for each factor has been
computed by multiplying the rating with the corresponding number of
respondents. Here again the same trend of hygiene and taste being given the
highest priority is reiterated. The confusion relating to the price factor is solved
as ‘Price’ gets the least priority among the people surveyed. Hence people don’t
mind paying for Haldiram’s namkeens as long as they get a tasty and hygienic
product as value for their money. Once again Packaging, which is a top priority
for Haldiram’s, fails to get top priority among the consumers and finishes fifth
on the priority list. This can be correlated to Herzberg’s two-factor theory. The
absence of good packaging may lead to dissatisfaction among the consumers
but the presence of it does not seem to create any particular satisfaction among
the consumer.
value...
30 27
20
10 5
0
0
Minimal Adequate Healthy
YES
NO 44%
56%
Haldiram’s attaches a lot of value to its gift packages offered during the festive
season. However, 56% of the respondents didn’t buy such packages. This shows
that the gift packages being offered don’t play such an important role on the
buying behaviour of the consumer.
No
31%
Yes
69%
When asked to whether they found any significance difference between
Haldiram’s and any other brand, 69% are of the view that there does exist a
significant difference. Also a product like namkeens involves low involvement
levels while buying. Thus it can concluded that buying behaviour of the
consumers of Haldiram’s namkeens is the ‘Variety-seeking buying
behaviour’. This translates into a positive for Haldiram’s, as the consumers, in
spite of trying different brands, seem to be coming back to Haldiram’s.
FINDINGS
Another interesting finding that is that in the absence of the role of the
‘Influencer’, the roles of the ‘Decider’ and ‘User’ seem to be shared by the
same person.
The consumers have given top priority to ‘Food taste and Quality’ and
‘Hygiene’. Haldiram’s needs to be appreciated for having pioneered these
factors in the packaged namkeens segment. However, to retain their
stronghold on existing consumers and attract new consumers, Haldiram’s
needs to maintain and even improve these standards.
One aspect, however, that Haldiram’s needs to focus on is their price. 41%
found it to be ‘High’. Haldiram’s needs to focus on this factor as any reduction
in the price cut by it’s competitors may influence the buyer to drift towards
another brand.
The market is clogged with dominant players such as Frito-Lay India, PepsiCo’s
snack foods arm, which has almost brought in a snack-chip revolution in the
country, Haldiram’s and the Delhi-based snack-food-retailer Bikanerwala Foods
Pvt Ltd etc. Even the dairy major Mother Dairy has a presence in the category.
With the entry of companies such as ITC and HLL into this industry, it is getting
tough for companies such as Haldiram’s who till now have not paid serious
attention to its branding activities.
Increased media exposure, ever increasing purchasing power of the target
audience coupled with their desire to spend more on eating out due to lifestyle
changes will fuel the demand for snack food items and only those companies
which have a considerable share of voice and space in the market will be able to
survive. Haldiram’s has the capability of meeting these demands and only
requires a certain revision in its strategies to be able to do so successfully, which
it already has begun to consider.
ANNEXURE
BIBLIOGRAPHY
Book Material
Marketing Management by Philip Kotler
Websites:
www.Indianfoodindustry.net
www.haldirams.com
www.haldiramsusa.com
www.bikaji.com
www.google.co.in
www.samratnamkeen.com
The Hindu(www.hinduonnet.com)
Low Reasonable
Q12. How would you rate the Haldiram’s namkeens for their nutritional value?
Minimal Adequate Healthy
Q14. Do you think that is there any significance difference between Hadrian's
products and other brands?
Yes No