A PROJECT REPORT ON

“Marketing Research and competition analysis of Haldiram’s”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE

DEGREE

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

(2021-2024)

Submitted by:

Submitted to: -Aditya Nagpal

Project guide name :Ms Silky Madan -05214001721

JAGAN INSTITUTE OF MANAGEMENT STUDIES

3, institutional area, sector-5, Rohini, Delhi-110085
 CERTIFICATE

Certified that the project report on “Marketing Research and competition analysis of
Haldiram’s” is the bonafide work of Aditya Nagpal, Roll No: 05214001721, of Guru Gobind
Singh Indraprastha University ,Delhi pursuing BBA (2021-24) from Jagan Institute of
Management Studies, 3, Institutional Area, Rohini, Sector 5, New Delhi - 110085.
The work has been done under my supervision during sixth semester.

Date:

Name of faculty –Mrs Silky Madan

JIMS

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 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and organizations. I would like to extend my sincere
thanks to all of them.

I am heartily thankful to my institute Jagan Institute of Management Studies (JIMS) for giving
me an opportunity to undertake this project.

I would like to express my thanks of gratitude to Dr. Pooja Jain, Director,JIMS and Dr. Praveen
Arora, Dean, for their support and guidance.

I would also like to express my special thanks of gratitude to my guide Mrs Silky Madan..

-----------Aditya Nagpal

------------05214001721

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 STUDENT’S DECLARATION

I Aditya Nagpal hereby declare that the project report entitled Marketing Research and
competition analysis of Haldiram’s submitted by me to Jagan Institute of management
Studies, Sector-5, Rohini, Delhi in partial fulfillment of the requirement for the award of the
degree of BACHELORS IN BUSINESS ADMINISTRATION is a record of bona fide
project work carried out by me under the guidance of Mrs Silky Madan . I further declare that
the work reported in this project has not been submitted and will not be submitted, either in
part or in full, for the award of any degree or diploma in this institute or any other institute or
university.

-Aditya Nagpal

-05214001721

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 TABLE OF CONTENTS

Certificate i

Acknowledgement ii

Student’s Declaration iii

1. INTRODUCTION 1

1.1. OVERVIEW OF INDUSTRY 7

1.2. PROFILE OF ORGANISATION 8

2. OBJECTIVES AND METHODOLOGY 11

2.1. OBJECTIVES 12

2.2. METHODOLOGY 12

2.3. DATA COLLECTION 13

3. MARKETING RESEARCH 14

4. FINDINGS AND ANALYSIS 47

5. CONCLUSION AND RECOMMENDATIONS 56

6. BIBLIOGRAPHY 60

(annexure)

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 CHAPTER 1
INTRODUCTION

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 Overview of the industry

the future of India Snacks Market can be judged from the fact that this industry is expected to
grow with double digit CAGR for the time frame of 2018 to 2024. India snacks market is dived
between organized players and unorganized market. At present Unorganized market is
dominating the India snacks market. But this scenario is expected to change during the forecast
period of 2018-2024. India Snacks Market is growing due to following factors Lifestyle Changes,
Rising Urbanization, Growing Middle Class Population, Local Availability and Availability of
Snacks in Small Package Size, Low Price and Company’s Strategies to focus on regional taste.

The report provides a comprehensive assessment of the fast-evolving, high-growth India snacks
Market. This market research report provides information on snacks market and market share by
organized & unorganized sectors, snacks products segmentation by Extruded Snacks, Chips,
Namkeen, Others; with key companies’ Business Strategies in India snacks market. This report
also identifies the key Growth Drivers and Challenges of the industry. Primary research on
consumer preferences of various snacks product segments, snacks prices and brands captured in
this report.

A consumer survey has also been done in the report on the snacks industry in India. The survey
has been done on Snacks Price Range, Extruded Snacks Brands Consumers Like to Buy Chips
Brands popular in Consumers, Namkeen Brands Consumers buying.

There is a large number of players working in the Indian snacks market. Their presence is limited
within a town, city or a particular area. They do not think too much for expansion. As a results,
their main focus to develop snacks items according to the consumers taste in a particular area.
This helps them to be popular in that region. Also their products are low priced compared to
organized players.

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COMPANY PROFILE

Name Haldiram Foods International Ltd

Company Logo

Address 880, Haldiram House, Bhandara Road

City Nagpur

State/Province MS

Zip/Postal Code 440008

Country India

Phone 00917122681191

Fax 00917122680218

Website http://www.haldirams.com/

- Asian Foods

Products

- Candy & Confectionery

- Processed Food

- Snacks

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About haldiram
HALDIRAM – is a name associated with consumers for sweets and namkeens for the past six
decades in India and abroad. It made its modest start in the beginning 1941 in Bikaner in the State
of Rajas than. Today the company has diversified into snack food, sweets, syrups, biscuits and fast
food. It is the leader in the Namkeens segment with a 70% of that total share in the market.
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.
Haldiram’s competes on the basis of numerous factors including brand recognition due to distinct
packaging, product quality, traditional taste and authentic Indian flavour.

Awards

• Haldiram’s bagged the prestigious ‘INTERNATIONAL AWARD FOR FOOD &

BEVERAGES’ awarded by Trade Leaders Club in Barcelona, Spain in 1994.

• The Group has also to its credit ‘KASHALKAR MEMORAIL AWARD’ presented by
All India Food Preservers Association (Regd.) in 1996 at its Golden Jubilee Celebration for
manufacturing the best quality food products.

• ‘BRAND EQUITY AWARD 1998’ was awarded by Progress Harmony Development

Chamber of Commerce & Industry in recognition of creating successful Indian Brand
‘HALDIRAM’.

• ‘APEDA EXPORT AWARD 2001-2002’, awarded by Agricultural & Processed Food

Products Export Development Authority for the outstanding contribution to the promotion of
Agricultural & Processed Food Products during the year 2001-2002.

• ‘MERA DELHI AWARD – 2004’ for the exemplary contribution in the field of export.

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Certifications

Haldiram’s has the following quality certifications:

• ISO 9002

• HACCP

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 CHAPTER -2

OBJECTIVES AND METHODOLOGY

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 2.1 Objectives of the study
The target of our market research report is

• To study the marketing strategies and brand loyalty of Haldiram’s

• To study the marketing mix of Haldiram’s

• To study the behaviour of the consumer with respect to attributes such as Brand Loyalty
and come up with recommendations as to what all needs to be considered keeping the
consumer in mind

• To analyze Haldiram’s competitor and compare their strategies and come up with
recommendations for any problem being faced by it.

2.2 RESEARCH METHODOLOGY

The review is an activity including assessment of boundaries as respect to authoritative
necessities Research was planned to get the pertinent data that can be utilized for different
hierarchical purposes.

Information SOURCE : Research included gathering both essential and optional information.

Primary DATA

is the direct information, new information accumulated to assist with taking care of the main
concern. Information is gathered actually for the particular undertaking through research. Poll
was ready to assemble data on the organization promoting and benefits.

Secondary DATA

is the will be the recycled information gathered by another person with is assembled through
web, distributions, articles, organization books, and so forth.

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 2.3 DATA COLLECTION:

The information assortment technique utilized was, in all honesty, study strategy which is
generally consolidated for assortment of crude data. The review technique is favorable in light
of the fact that it assists with gathering a lot of data about an individual respondent.Survey:
The sort of overview embraced was that of test type keeping in thought the time requirement
and paraphemalic, other than the practicality of statistics study. The example review
accordingly being followed to the correct way to arrive at the ideal objective was painstakingly
planed to change over of the activity by utilizing chosen tests. Factual Tool:The apparatus for
getting the data was survey. An organized poll was directed. The polls was planned in the
view both major and minor goal of study.Sampling: With the client being obscure and since its
getting late and asset limitations arbitrary example was acquired from various individuals.

2.3 LIMITATIONS

1. The sample was collected using sampling techniques. As such result may not give an exact
representation of the population.

2. Most of the data being secondary can be biased towards the company.

3. Shortage of time is also a reasonn for incomprehensiveness.

4. Most of the information was taken from secondary sources being based on previously
printed data.

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 Chapter -3

MARKETING RESEARCH

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Marketing mix
Products
Haldiram's offers a great many items to its clients. The item range incorporates namkeens,
desserts sharbats, pastry shop things, dairy items, chips, pappad and frozen yogurts. Anyway
namkeens stay the principal area of concentration for the gathering as it contributes near 60%
of its all out incomes. By gaining practical experience in the assembling in the namkeen market
the organization has made a specialty market. The natural substances used to plan namkeens
are of best of value and are obtained from everywhere India.Haldiram's modifies its items to
suit the preferences and inclinations of clients from various pieces of India. It sentoff items,
which took care of the inclinations of individuals having a place with explicit districts. For
instance it sent off 'Murukkus' a south Indian Snack and Chennai Mixture' for south Indian
clients. Correspondingly Haldiram's sent off 'bhelpuri' remembering clients dwelling in western
India. The organization offered specific items, for example, 'Nazarana', 'Panchratan' and
'Premium' just during the celebration season in gift packs. These actions have assisted
Haldiram's with contending really in a market that is overwhelmed with an assortment of nibble
things in various shapes, sizes and flavors. It has additionally as of late sent off rolls and treats.

Product list
200 Gms 400 Gms

1. Plain Bhujia

2. Bhujia

3. Karanchy Mixture

4. Navrattan

5. Nut Cracker

6. Khatta Meetha

7. Bombay Mixture

8. Chana Dal

9. MasalaMoong Dal

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10. Moong Dal

11. Boondi Masala

12. Boondi Plain

13. Dal Biji

14. Ghatia

15. Kabli Chana

16. Bhavnagri Sev

17. Aloo Masala

18. Mathri

19. Samosa

20. Bhelpuri

21. All in One

22. Aloo Bhhujia

23. Nimbu Masala

24. Long Sev

25. Methi Sev

26. Peanut Salted

27. Peanut Masala

28. Chana Jor Garam

40gms

1. Plain Bhhujia

2. Bhhujia

3. Navrattan

4. Khatta Meetha

5. Masala Moong Dal

6. Moong Dal

7. Nut Cracker

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8. Dal Biji

9. All in One

10. Aloo Bhhujia

11. Chana Jor Garam

12. Kashmiri Mixture

13. Hara Chiwda

14. Cornflakes Mixture

15. Kaju Mixture

16. Panchrattan

75 Gms

1. Bhhujia

2. Navrattan

3. Khatta Meetha

4. Moong Dal

5. Nut Cracker

6. Aloo Bhhujia

7. Boondi Plain

8. Boondi Masala

9. Nimbu Masala

10. Peanut Salted

11. Masala Moong Dal

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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

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 weightsThe 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

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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 has developed a strong distribution
network to ensure the widest possible reach for its products in India as well as overseas.
From the manufacturing unit, the company’s finished goods are passed on to the carrying &
forward (C&F) agent. C&F agents passes on the products to distributors, who ship them to retail
outlets. While the Delhi unit of Haldiram’s has 25 C&F agents and 700 distributors in India,
the Nagpur unit has 25 C&F agents and 375 distributors. Haldiram’s also has 35 sole
distributors in the international market. The Delhi and Nagpur units together cater to 0.6
millions retail outlets in India.C&F agents receive a commission of around 5% while
distributors earn margins ranging from 8% to 10%. The retail outlets earn margins from 14%
to 30%. At retail outlet level, margins vary according to the weight ofpacks sold. Retailers earn
more margins ranging from 25% to 30% by selling 30gms pouches (priced at Rs.5) compared
to the packs of higher weights.Apart from the exclusive showrooms owned by Haldiram’s,
the company offers its products through retail outlets such as supermarkets, sweet shops,
provision stores, bakeries and ice cream parlors. The products are also available in public places
such as railway stations and bus stations that account for a sizeable amount of its sales.
Haldiram’s products enjoy phenomenal goodwill and stockists compete with each other to
stock its products. Moreover sweet shops and bakeries stock Haldiram’s products despite the
fact that the company’s products compete with their own products

A. Distribution Channel Structure

Fig1: Within Delhi

Haldiram’s factory

Distributor

Retailer

Consumer

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Fig2: outside
delhi
Haldirams organization

C and f

Distributor

Retailer

Consumer

Fig 2

B. Functions Performed by the Channel Member

The main functions of different channel members are to supply goods, to achieve targets and to
increase sales.
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.

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 C. Selection of Channel members
Channels members are selected if the following facilities are available: -

Warehouse Facilities

Experience sale persons.

Van, truck, three-wheelers for transportation.

Registered office.

Proper computer facility for maintaining accounts.

Financially strong

. D. Request handling
Sales people of C&F specialists and merchants go to the retailers of their areas furthermore, bring
the request day to day. After that they provide request in the Corporate Office of
Haldiram's in Mathura street to the senior supervisor. From corporate office
senior supervisor provides request in the production line. (Nodia/Gurgaon/Mathura Road) As the
request is prepared to convey and on affirming from the corporate office,
the merchandise are conveyed in the trucks.
Orders inside Delhi and the spots close to Delhi (like Meerut) are conveyed in 24 hours or less.
Orders outside Delhi are conveyed by the distance. It takes from 24 hours to 72 hours.
Each wholesaler and C&F specialist has a decent day in seven days to provide a request. Haldiram's
has its own distribution center, which is overseen by its own staff.
. Actual development of the merchandise
The request for Haldiram's is conveyed by truck. Haldiram's pays the costs for transportation of
the products.

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Advancement
Haldiram's thing headway had been tranquil until challenge fortified in the snack food
assortments market. The association connected with 'Profile Advertising' for propelling its
things. Engaging flags, flyers and mailers are expected to work on the detectable quality of the
Haldiram's image.Various varieties of standards are planned to address the greater part. The
zinger for Haldiram's things was 'Reliably in extraordinary taste'. Advancing depicting the
entire extent of Haldiram's treats and namkeens were disseminated in the print media
(magazines and papers). These notification had engravings, for instance, 'countless tongues
can't turn out seriously', 'what are you holding on for, Diwali??' and 'Keeping your taste buds
honest'.To assemble the detectable quality of the Haldiram's picture, the association has placed
its hoardings in high busy time gridlock locales, for instance, train stations and transport
stations. Pennants are planned for show on open vehicle vehicles like vehicles and
hoardings.Inscriptions are encouraged that consideration on individual things, for instance, 'yeh
corn hai' (this is corn), 'chota samosa - tremendous mazaa' (little samosa-colossal
entertainment) 'yeh kashmiri mix khoob jamega' and 'spilling over with taste' (for Rasgoolas)
high level individual things Special pamphlets are intended for those clients who need to find
out about Haldiram's items. The pamphlets portray the items and give data about the fixings
used to make those items. Mailers are likewise shipped off steadfast clients and significant
corporate clients as a badge of appreciation for their support

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 Packaging
Packaging is an important aspect of Haldiram’s product promotion. Sincenamkeens are impulse
purchase items, attractive packaging in different colors influences purchases.
Haldiram’s uses the latest technology (food items were packed in nitrogen filled pouches)
to increase the shelf life of its products. While the normal shelf life of a similar product is under a
week, the shelf life Haldiram’sproduct is about six months. The company projects the shelf life of
its products as its unique selling proposition.
Posters highlighting the shelf life of its products carried the caption ‘sixmonths on the shelf
and six seconds in your mouth’.
During festival season, Haldiram’s products are sold in attractive lookingspecial gift packs.

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 theDD/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.
Haldiram’s restaurants in Delhi also use innovative ways to attract customers. The restaurants
located at Mathura and Lajpat Nagar have special play area for children.

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 foodsincluding ‘pani puri’
& ‘chat paapri’.

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These promotional strategies have helped Haldiram’s to compete effectively with the

local restaurant chains such as Nathu’s, Bikanerwala and Aggarwal’s and withwestern fast
food chains such as Mc Donald’s and Pizza Hut.

Advertising Strategy
Haldiram’s advertisements have traditionally been copy heavy for various reasons and do not have
any face, known or otherwise, attached to them. They are graphic heavy as well with extremely
vibrant use of colour. Its advertisements earlier had a mature approach with the base line “Always
in good taste”, but of late due to a shift in target audience the base line of the advertisements too
has been changed to “Every zuban pe”. This year, an otherwise conservative company, it has upped
ad budgets by more than 60% to Rs 1 crore - still a far cry though from Lays which spends over
Rs 30 crore annually. But these ads were for what it calls its `new generation products' - chips,
funchees, masala balls and Taka-tak.
Visual (Typography, Layout)

Haldiram’s typography contains a very stylized and sophisticated font style, whichconveys the
image and the personality of the brand.
The layout is picture heavy with extensive use of colour so as to make theadvertisement
attractive and tempting, which is true of any food advertisement.
Verbal (Copy Style)

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.

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 .

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Brand Introduction
The food business in India is always showing signs of change to suit their customers' sense of
taste,inclination and pocket. Every one of the players in the business in this way, need to
continually adjust tothe always changing patterns and develop and once again create
themselves to remain in the association.Haldiram's contends based on various elements
including memorabilitybecause of particular bundling, item quality, conventional taste and real
Indian flavor. The organization's opportune presentation of new items and line augmentation
has had a significant impact in the purchasing conduct of customers too. A fair warning for the
organization however is that it ought to focus on itsmarking exercises, which will be its
redeeming quality later on. As the opposition hardens the main thing to see an organization
through would be its capacity to adjust to change, portion of room and portion of voice on the
lookout.

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Eleven brand definitions

BRAN PRODUCT
D
BRAND

BRAN
D
BRAND NAME

BRAND
BRAND
MNEMONI
C HALDIRAM’S
COR
E
VALU

BRAND
POSITIONIN BRAND
CHARACTE
G
R
BRAN BRAND
D PERSONALIT
POSITIO Y
N

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 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- technology
for manufacturing traditional Indian snack items thus setting quality standardsand improving
the shelf life of the products as well.

a) 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.

b) 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.

c) Brand Core Values

Haldiram’s brand core values are quality, taste, variety, traditional and very Indian.

d) Brand Character
The brand character of Haldiram’s that distinguishes it from its main competitor FRITO LAYS
is its ‘traditional Indian taste’.

e) 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 highpremium
on quality as well.

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f) Brand Position

This refers to the consumers’ placement of a company vis-à-vis its competitors. Haldiram’s has
also been rated as the second fastest growing FMCG Company in India, has 70% of the total
market share in the namkeens category and is posing to be the biggest threat to the multinational
giant FRITO LAYS in the snack food market. As far as thesweets and namkeens are concerned
it is the undisputed leader in the organized sector.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.

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f) Brand Positioning

Haldiram’s has uniquely positioned its brand. It has positioned itself as a premium segment
product available to all those who can afford it. It is in not perceived to be cheap but does offer
good value for money giving high priority to quality and taste standardization throughout its
outlets, which are suitably located in posh areas of the city. Initially the brand catered only to
the 35+ category with its positioning statement “Always in good taste” but lately the company
has started to target kids and teenagers as well with a hinglish baseline “Every zuban pe”.

Haldirams has also gained an edge over its competitors by minimizing promotion costs.
Haldirams once was just another sweet maker but it had moved into trained brands by
improving the product quality and packaging. Through its clever products & brilliant
distribution it has moved into the star category of brands.

g) 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.

h) 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.

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i) 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 achievedthrough
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.

COMPETITION ANALYSIS

To retain and expand its market share for higher profitability a company must understand it’s
competitive environment. It must know its competitors, their strategies, the strengths and their
weaknesses.

The major objectives of this comparison are to:

• Analyze Haldiram’s competition (in Namkeens Segment) from an industry and

marketing point of view

• Analyze the intrinsic long run profit attractiveness through Porter’s 5 force model

• Formulation of competitive strategies

• Study the designing of competitive strategies

Competitors of Haldiram’s (in Namkeen Segment)

The following are the major competitors of Haldiram’s:

• Frito Lays

• Bikano

• MTR

• Unorganized Sector

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However the comparison is restricted to Frito Lays, as this is the closest competitor of
Haldiram’s.

Levels of Competition

This analysis covers all four levels of competition for Haldiram’s: Brand, Industry, Form and
Generic.

A. Brand Competition

Brand Competition includes other companies offering similar products and services to the same
customers at similar prices. Here, the brand competition would be all the companies selling
Namkeens along the same lines as Haldiram’s. Because of this brands like Bikano, Frito Lays,
etc… and the unorganized sector are considered as brand competitors.

B. Industry Competition:

The namkeens industry is essentially made up of a few players producing the same product
partially differentiated along the lines of quality, styling and services. This means that the
namkeens industry follows the pattern of ‘Differentiated Oligopoly’.

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C Form Competition:
Form competition essentially means that competitors who produce products that supply the
same service. In case of Haldiram’s Namkeens, it faces stiff competition from traditional snacks
like samosas, kachoris etc. and others like salty biscuits, pizzas, burger and bakery items as
people tend to substitute namkeens very easily with these products

D Generic competition:
Generic competition essentially includes those companies competing for the same amount
consumer money. In case of Haldiram’s, it includes all edible products in the same price range

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 Porter’s Five Forces Model
Porter’s five forces determine the intrinsic long-run profit attractiveness of a market or a market
segment. The following is the analysis of this model with respect to Haldiram’s:

1) Threat of Intense Segment Rivalry (Industry Competitors)

Haldiram’s did not face any intense segment rivalry in the initial stages and some time after
that, but the last few years have seen a lot of players entering the namkeens/snack food segment.
This has led to various new products being introduced by all. Variety and higher quality
standards have been set & the companies are competing with each other to grab a larger market
share in this segment and hence there is evident segment rivalry. The primary and potential
threat that appears to Haldiram’s is from the unorganized segment with its lower pricing and
variety in the products.

2) Threat of New Entrants

There is a threat of new entrants especially from the unorganized sector that has lesser quality
pressures. The entry and exit barriers are both low leading to stable returns, therefore big
companies may enter this segment looking for a quick profit.

3) Threat of Substitute Products

Threat of substitute products arises from the ability of the consumer to substitute namkeens
by other things that suit him. For example ice creams, biscuits, bakery products. Like wise
and outing for burger and other fast food items may also substitute for namkeens. The players
have to monitor prices closely as a fall in the prices of these substitute products may lead to a
price cut in the namkeen segment as well.

4) Threat of Buyer’s Growing Bargaining Power

There’s no threat of buyers’ growing bargaining power, as it doesn’t represent a significant
portion of the buyers’ cost. The buyers do not seem to be very price sensitive and nor are they
more concentrated (buyers are distributed across a wide geographical region in the country)
or organized.

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5) Threat of Supplier’s Growing Bargaining Power

Suppliers are unorganized and there are a lot of substitutes available to the company. Moreover
the number of suppliers being large and the size of the suppliers being very small as compared
to the company, the company is in a strong bargaining position. Hence there is no such threat
of suppliers’ growing bargaining power

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. Porter’s Five Forces Model (for Namkeen segment)

Potential Entrants

• Low entry and exit barriers

• Stable return

• Industry Growth rate

• Economies of scale

• Incumbents’ defense of market share

Suppliers

• Many competitive suppliers

• Low costs to switch suppliers

• Size small as compared to company

Industry Competitors

• Good market growth rate

• Market equilibrium intact

• Low exit cost.

• Frequent innovation making it expensive to compete

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• Presence of strong and aggressive competitors

Buyers

• Product doesn’t represent significant fraction of buyers’ cost

• Price sensitivity is low.

• Buyers are distributed and not organized

Substitutes
• Lot of substitutes for namkeens

• Price trends have to be monitored closely

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Comparison between haldiram’s and frito lays
A. Haldiram’s

Haldiram’s being the market leader offers enormous benefits to its customers. On the basis of
the consumer behavior survey, the highest benefit that Haldiram’s offers is by way of hygiene
and taste. Another big strength of Haldiram’s, which a factor rated pretty high by the
consumers, was Packaging. By providing fresh and tight packaging Haldiram’s ensures that
their consumers can use it for a longer period of time. Another benefit that Haldiram’s offers
is the immense variety in their product line. In fact in the namkeens segment itself Haldiram’s
offers about 40+ varieties and ensures that this benefit stays on by constantly innovating and
coming out with new types of namkeens. The best part is that they offer traditional snacks
rather than modern snacks, which go down very well with the Indian consumer.

B. Frito Lays

According to the consumer behavior survey, the consumers rated packaging the highest thereby
signifying that this is one of the best benefits that the consumers get from Frito Lays. Apart
from that price and quality were the other benefits that the consumers got from Frito Lays. The
biggest benefit is the availability of the product as it is a product is of Pepsi Foods and hence
is backed up by a string distribution network. However it’s on the variety factor that they
actually pale in comparison with Haldiram’s.

Brand Bikano, Frito Lays, MTR, Lehar, Unorganized

Sector

Industry Differentiated Oligopoly

Form Traditional snacks like Samosa, Kachori, etc.,

Burgers, Pizzas, Salty Biscuits, Bakery Items

Generic Any product competing for the same of amount

consumer dollars

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Types of Competitive Strategies

From the information based on the consumer survey, out of 32 people 28 consumed Haldiram’s
products. Since 91% of responses indicate consumption of Haldiram’s products, we conclude
that Haldiram’s is the market leader in the namkeens segment. In the consumer survey that we
had done, hygiene and taste had come out as the highest priority factors that influence the
buying behavior. Haldiram’s adopts the following market leader strategies.

A. Market leader strategies adopted by Haldiram’s

a) Increasing the total market share

Being a market leader, one of Haldiram’s strategies has been to solicit new users for their
products. They have done this by targeting the NRI’s living abroad and exporting their
namkeens there. This in turn has also helped create awareness about their product among the
non-NRI’s abroad. Its foray into the foreign markets has been carefully strategised as in the
customization of its products. Apart from this, they have also penetrated the rural markets quiet
effectively by bringing out their products in small, affordable packets. All these new markets
have helped consolidate Haldiram’s position as a market leader.

b) Defending Market Share:

To protect its position as market leader, Haldiram’s makes use of two defense strategies:
Position Defense and Mobile Defense.

1) Position Defense

Haldiram’s has built for itself quite a superior brand image, making it extremely difficult
for its competitors to break this image. Thus the competitors have to put in extra efforts to
create a brand much more superior than Haldiram’s.

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 2) Mobile Defense

This involves the leader stretching its domain over new territories that can serve as future
centers for defense and offense. Under this defense, Haldiram’s follows the ‘Market
Broadening’ mobile defense. The recent establishment of their Nagpur plant shows that they
are now concentrating on the Southern region. Also their foray into the international market
and their deeper penetration into the rural market coupled with the introduction of their new
product range like syrups, pickles, etc.

3) Counteroffensive Defense:

When Haldiram’s had started its business there were very few other players in the market. That
brought in complacency in Haldiram’s as far as advertising of its products was concerned. The
popularity of Haldiram’s has till date spread through the word of mouth. Now with new
competitors coming in and advertising their products aggressively Haldiram’s has realized the
need to advertise its own products and has lately forayed into TV advertisement. Thus
Haldiram’s has followed counter offensive defense as in it has responded to the competitors
attack.

c) Expanding Market Share

1) Haldiram’s

Over the years, Haldiram’s has been diversifying its product line and entering newer markets.
This has resulted in considerably expanding the market share of Haldiram’s, thus also
substantially increasing their products.

2) Frito Lays

With regard to the namkeens segment, Frito Lays is a relatively new player when compared
to Haldiram’s. In fact according to the consumer behavior survey that we had carried out, out
of the 32 respondents, 29 of them consumed Haldiram’s while only 21 of them consumed
Haldiram’s. This shows that Lays still has to go a long way if it wants to be the market leader.
Haldiram’s has a very strong brand loyalty. Hence the strategy currently being adopted by
Lays is that of a ‘Market Challenger’.

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B. Market Challenges Strategy adopted by Frito Lays

a) Flank Attack

The strategy being adopted by Lays currently is that of a flank attack. One of the main points
of a flank attack is that the enemy’s weak points are a natural target. One of the biggest
weaknesses of Haldiram’s has been advertising. Most of the publicity has been word of
mouth for Haldiram’s. But Lays, being a product of Pepsi Foods, didn’t have any problem on
this front and in fact has a strong advertising campaign to back it up. Also with an extensive
distribution network, it has been able to penetrate the Indian market in areas that probably even
Haldiram’s has not been able too.

Share of Market, Mind and Heart

Haldiram’s has got the biggest share of mind market because generally it is the first name that
comes to the mind of the consumers when namkeens are mentioned. This is re-iterated by the
fact that in the consumer behavior survey, 91% of the respondents actually consumed
Haldiram’s as compared to the other brands. Thus the market share of Haldiram’s coincides
with the mind share mainly because of the high level of market penetration and the word of
mouth publicity that the brand enjoys. Haldiram’s has become a household name today because
of the variety of products it offers, the taste and the good quality of the products, innovative
and packaging has also helped in building the brand image. Haldiram’s has also got the biggest
share of heart because most of the people prefer consuming Haldiram’s products. A large share
of heart predicts a high market share in the future. Thus Haldiram’s enjoys a good share of
heart and mind along with the biggest market share. This would help Haldiram’s in retaining
its share in the market in the future.

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SWOT ANALYSIS

Introduction

A. Strengths

• 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 brand is associated with tradition and quality.

• 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.

• They are the undisputed market leaders in the namkeen segment.

• 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.

• Haldiram’s is aggressively trying to capture the international markets by customizing

its products and packaging according to foreign tastes.

• Though a large percentage of their consumers are middle-aged customers who are fond
of namkeens, yet they are successfully catering to all age groups and sections of society.

• By launching small packets of their diverse namkeen products, they have

successfully penetrated the rural markets.

• Online selling of their products through indiatimes.com

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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 Company has no policies on Corporate Social Responsibility and environmental

norms, which may affect their Goodwill in the long run.

• 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.

• Company portfolio does not include western snack foods

C. Opportunities

• Though till now, Haldiram's presence in the western snack foods segment is restricted
to potato chips. It has plans to market convenience food products in the ready-to-eat format,
such as paneer, pulao, dal and vegetables.

• 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.

• Diversifying the namkeen product line further through constant innovation.

• 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.

• Having a premium product line to capture high-end consumers.

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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.

• If Haldiram’s doesn’t realize the importance of aggressive advertising, its competitors

will cut into its market share as they do advertise on a large scale.

• Competition from local restaurants cum sweet shops.

• High market presence and share of the unorganized sector.

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SWOT Matrix
STRENGTHS WEAKNESSES

1. Variety 1. Market Surveys

2. Brand Image 2. Started advertising too late

3.No policies on CSR

3. Hygienic 4. Lack of collaboration between the three

oncerns

5. Not cash rich as it’s competitors

4. Packaging

5. Technology

6. Market Leader

7. Word of mouth publicity

8. Quality

9. Exports

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 10.Wide consumer base

11.Rural penetration

12.Online selling

OPPORTUNITIES THREATS

1.Western snack foods segment 1. Large number of competitors

2.Associating with other brands

2. Three concerns affecting each other’s

3.Kids and teenagers segment image.

4.Diversifying further 3. Competitors have already entered the

western snack foods market.
5.Radio advertising
4. Lack of aggressive advertising.

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 Chapter -4

FINDINGS AND ANALYSIS

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FINDINGS AND ANALYSIS

The following chart shows the distribution of the respondents according to the
age group

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• 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.

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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 29% preferred haldirams products . 14% of the surveyed
people consume bikanervalas products and 3% preferred MTR products . the rest 12%
preferred the local vendors.

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B. Brand Loyalty
• 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.

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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

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.
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 Factors influencing buying behavior of namkeens

• With respect to Haldiram’s it was found that 56% of the respondents considered the price
to be reasonable. However 41% also considered it to be high. This confusion is however solved
when viewed in the light of the following graph that analyses the rating of various factors

• When it comes to then nutritional value of Haldiram’s namkeens, 84% of the

respondents felt that the nutritional value was minimal while none of them felt that it was healthy
But despite this the average consumer still prefers to buy Haldiram’s namkeens.
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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

Buying behavior

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‘Consumer Behaviour Analysis’
• Consumers have started increasing their consumption of other brand items which is
evident from the fact that 29 of the 32 respondents eat Haldiram’s Namkeens while a close 21
each eat products of Lays and Lehar. However local snacks seem to be losing their hold on
the consumers mainly because of their lack of stress on hygiene and quality. However,
consumers seem to be very loyal towards the brand called Haldiram’s primarily because of
the high priority they give to taste, quality and hygiene as is evident from the statistics
mentioned above.

• 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.

• Overall, Haldiram’s is undoubtedly the most favored namkeen of the consumers and
this is established by one of the findings whereby 91% of the total respondents actually
consume Haldiram’s.

‘Competition Analysis’
• There are no two ways about the fact that when it comes to the namkeens segment
Haldiram’s is way ahead of its competitors. It has a very strong brand loyalty, which is what
makes the task of its competitors even more difficult. However with the entry of Lays, MTR
into this segment and the prior presence of Bikano in this segment the competition has really
heated up and the market share is gradually being grabbed by various players. Hence its
important for Haldiram’s to keep innovating and concentrating on its strengths – quality and
taste in order to further consolidate its position as a market leader in the namkeens segment.

• Another thing that Haldiram’s has to be wary about is the immense form competition
that it faces. Namkeens is a consumable, which can be easily substituted. There are various

substitutes like salty biscuits, bakery items but the biggest threat that it faces is the traditional
snack items like samosas, kachoris,etc…. However it has already started to take steps in this
direction bringing out packaged ready-to-eat small samosas.

• Another plus for Haldiram’s is that it has started targeting the international market. It
now doesn’t face any major competition in this market and can hence make the best of it.
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This long-term strategy of Haldiram’s has already started yielding results.

• Haldiram’s is a specialist when it comes to the namkeens segment, whereas for most of
it competitors like Frito Lays and MTR, namkeens is a very small segment and they are not
looking to specialize in this segment. This factor will always help Haldiram’s to consolidate
its position as a market leader.

Overall, the best part about this segment is that neither Haldiram’s nor its competitors indulge
in situations that disturb the market equilibrium. Hence this segment is such that everyone plays
their role in maintaining the market equilibrium and in the long run this shall work out to be
favorable for Haldiram’s and this segment

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 Chapter-5

Conclusion and Recommendations

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CONCLUSION

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.

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 RECOMMENDATIONS

Haldiram’s should aim at constructing a comprehensive media mix.

1. It could venture into corporate tie-ups at its various outlets.

2. Set up mini outlets inside the multinational office complexes.

3. Cash in on the call center wave and have tie-ups with business process outsourcing
companies.

4. Undertake catering at get together, wedding and kitty parties for women who form a
chunk of its target audience.

5.the company chooses to employ, interactive communication

should be given high priority.

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 Chapter -6
Bibliography

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BIBLIOGRAPHY

Book Material

• Marketing Management by Philip Kotler

• Sales & Distribution Management by Tapan K Panda & Sunil Sahadev

• Service marketing , Pearson Education Ptc Ltd., New Delhi by Lovelock,

Christopher H.
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)

• Times news Network(www.economictimes.indiatimes.com

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ANNEXURE

QUESTIONNAIRE

Q1. What age profile do you belong to?

□ 15-20 □ 21-35

35-50 □ More than 50

Q2. Do you consume Haldiram’s products?

□ Yes □ No

Q3. What is your brand preference for namkeens?

□ Haldirams □ Lays □ Lehar Bikaner

□ MTR □ Others

Q4. Since when have you been consuming Haldiram’s Products?

□ Less than 6 months □ 6 month – 1year

□ 1-3 years □ Greater than 3 years

Q5. How would you rate the quality of Haldiram over the period of use?

□ Significantly better □ Better

□ Natural Worse □ Significantly worse

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 Q6. What factors motivated you to buy Haldiram’s products?
□ Friends □ Neighbours □ Relatives

□ Family □ Ads □ Self

Q7. How you find Haldiram’s price ?

□ High □ Very high □ Very low

□ Low □ Reasonable

Q8. How would you rate the Haldiram’s namkeens for their nutritional value?

□ Minimal □ Adequate □ Healthy

Q9. Do you buy Haldiram’s gift packages?

□Yes □ No

Q10. Do you think that is there any significance difference between Haldiram’s products
and other brands?
□ Yes □ No

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