Haldirams

CAGE ANALYSIS
ASIAN PAINTS
SUBMITTED BY
GROUP -6, SECTION -2
CHIRAG DAGAR- DM 14113
DRON MALHOTRA- DM 14115
JIVITESH PATRA- DM14224
MILU JACOB- DM 14125
RANJANA T N- DM14240
VIKAS SHARMA- DM 14159
Haldirams is an Indian sweets and snacks products manufacturer. It was founded in 1937 in
Bikaner in Rajasthan and now they operates in more than 10 countries worldwide. This includes
countries like United States of America, United Kingdom and Australia. According to the Brand
Trust Advisory Report, Haldirams is ranked as 55th most trusted brand of India. Haldirams has
over 100 products which includes namkeen, sweets, snacks and frozen foods. Haldirams is
already present in American market and is very popular among Asian community.
As Haldirams is a very popular brand and is already present in international market, I have
selected Sri Lanka, South Africa and Indonesia as three new markets which have huge potential
for its growth. In order to identify the potential of the product in these 3 countries, I have adopted
CAGE Analysis framework. In this framework, I have compared cultural, economic,
administrative and geographical factors of all three countries.
CULTURAL DISTANCE:
Sri Lanka
South Africa
Indonesia
Not much diverse Not much diverse Indonesia has more
Diversity
with Sinhalese which with Black African than 15 ethnic groups.

constitutes
about (79.2%), white 8.9%, Much diverse country
73.8% of population. colored
8.9%
and with
Javanese
Rest are Sri Lankan Indian/Asian 2.5%.
(40.1%),
Sundanese
Moors (7.2%), Indian
(15.5%),
Malay
Tamil
(3.7%) and others.
(4.6%),
Sri
Lankan Tamil (3.9%),

other unspecified.
The Most Spoken Mix
Language, Religion,
Ethnicity
languages Over 750 languages.
Languages are Sinhala such as IsiZulu which Bahasa Indonesia is

and Tamil. English is is
the
another
common language,
language
and
widely
Gender
of
used
government.
1.04 male(s)/female
is Afrikaans
official official language and

IsiXhosa, English.
and
in English.
1.02 male(s)/female
1.05 male(s)/female
Individualism
Long Term or Short
term orientation
Collectivistic Society Individualistic

Long
Term Long
Orientation
Individualistic
Term Long
Orientation
Term
Orientation
As we can see from the above data that all the three countries have people of Indian origin.
Hence Haldirams have a good chance of getting popular. This will give a huge opportunity for
Haldirams as they can connect with the population. The ethnic diversity will also help them as
now they can have huge variety of snacks available. English is common in all these countries
hence the promotion would not be a problem. Also as in all the 3 countries the proportion of
middle class population is quite high, it will also help Haldirams.
GEOGRAPHIC:
Size
Climate
Sri Lanka
65,610 sq km
Tropical
South Africa
1,219,090 sq km
Monsoon Mostly
semiarid Tropical
climate with northeast climate

monsoon
December
and
Indonesia
1,904,569 sq km
climate.
with Hot, humid; more
during subtropical along the moderate

to
March east
coast.
in
Wide highlands.
southwest temperature difference
monsoon during June with sunny days, cool

Transportation
to October.
Poor
railway
Airport
nights
and Excellent airport and Excellent
connectivity. railway
connectivity. road
air
and
connectivity.
Good road connectivity Good road connectivity Sea connectivity is

with extensive unpaved across the country with good
Landlocked
Ports
& paved roads.
availability
No.
expressways.
No
Major port Colombo
Major
port
Town,
Durban,
Elizabeth,
with
of availability of many
major ports.
No
-
Cape Major
seaports:
Port Banjarmasin,
Richards Belawan, Kotabaru,
Bay
Krueg
Geukueh.
Major container port:

Airport
Tanjung Priok
566 with 144 paved 673 Airports
15 Airports.
and
422
with
unpaved 186 paved and 487
airports.
unpaved airports.
ADMINISTRATIVE:
Sri Lanka
Political Scenario
Multi
South Africa
Indonesia
Party Multi
Party Constitutional
Democratic state with Democratic state.
democracy.
After
mix of presidential
1998,
many
system
amendments
and
parliamentary system.
Corruption
been made to prevent
dictatorship.
Score of 38/100 on Score of 44/100 on Score of 34/100 on
Corruption
IPRs
have
Corruption
Corruption Perceptions
Perceptions Index.
Perceptions Index.
Index.
Rank 59/97 on IPR Rank 26/97 on IPR Rank 59/97 on IPR
Index
published Index
International
Index.
published Index
IPR International
IPR International
Index
Index
published
ECONOMIC:
GDP(2013)
GDP
Growth(2013)
HDI
Ease of Doing
Sri Lanka
$134.5 billion
6.3%
South Africa
$595.7 billion
2%
Indonesia
$1.285 trillion
5.3%
Rank 92
Rank 99
Rank 121
Rank 43
Rank 121
Rank 114
IPR
Business
Debt to GDP ratio 78.4% of GDP
(Est. 2013)
Transparency
Rank 85/176
Index
Labor Force
Major
proportion
45.4% of GDP
24.2% of GDP
Rank 67/176
Rank 107/176
of Major proportion of Major
proportion
of
population is engaged population is engaged population is engaged

in Services followed by in Services followed in Services followed by
agriculture
Exports
industry
and agriculture
and
industry.
agriculture (9%).
industry.
Textiles and apparel, tea Gold,
diamonds, Oil & gas, electrical
and
Imports
and by
spices;
rubber platinum, other metals appliances, plywood,
manufactures.
and minerals.
petroleum,
textiles, Machinery
machinery
textiles, rubber.
and Machinery
and
and equipment, chemicals, equipment, chemicals,
transportation
petroleum
products, fuels, foodstuffs.
equipment, foodstuffs.
scientific instruments,
foodstuffs.
Conclusion:
Based on all the above parameters, we can see that Sri Lanka has huge potential for the
introduction of Haldirams. If we see Sri Lanka, it also has many benefits such as it is located
near to India and major ports of both India and Sri Lanka are located near to each other. Hence
Haldirams has an option of exporting goods directly to Sri Lanka instead of setting up their own
manufacturing facility. The population Indian origin will also be an added benefit for Haldirams
as their food habits are same. If we consider economic factors, we can see that a major portion of
population is engaged in agriculture based services so the raw materials for the company would
not be a problem. The GDP growth rate is also very high which will result in increased income of
the people which will also help Haldirams. The corruption index is also low in Sri Lanka which
will help in ensuring proper and efficient work flow. The transportation facility is also pretty
good in Sri Lanka, which will help in setting up an efficient supply chain. Considering all the
above factors, Sri Lanka is the most appropriate destination for Haldirams to start their
operations.

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CAGE ANALYSIS

with Sinhalese which with Black African than 15 ethnic groups.

about (79.2%), white 8.9%, Much diverse country

73.8% of population. colored

Rest are Sri Lankan Indian/Asian 2.5%.

Moors (7.2%), Indian

(3.7%) and others.

Lankan Tamil (3.9%),

languages Over 750 languages.

Languages are Sinhala such as IsiZulu which Bahasa Indonesia is

official official language and

Collectivistic Society Individualistic

climate with northeast climate

with Hot, humid; more

during subtropical along the moderate

southwest temperature difference

monsoon during June with sunny days, cool

Good road connectivity Good road connectivity Sea connectivity is

& paved roads.

Major port Colombo

Richards Belawan, Kotabaru,

Major container port:

unpaved 186 paved and 487

Democratic state with Democratic state.

been made to prevent

of Major proportion of Major

population is engaged population is engaged population is engaged

rubber platinum, other metals appliances, plywood,

and equipment, chemicals, equipment, chemicals,

products, fuels, foodstuffs.

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