Haldiram's Case Analysis

Haldiram's Group - Seeking the 'Right' Marketing Mix
Group 8
Marketing Mix
PRODUCTS:
Haldiram's product range included namkeens, sweets, sharbats, bakery items, dairy products, papad and
ice-creams.
Namkeens remain the main focus area for the group contributing close to 60% of its total revenues.
Have a Nagpur unit manufactured 51 different varieties of namkeens, the Kolkata unit manufactured 37
and the Delhi unit 25
The raw materials used to prepare Namkeens are of best quality and are sourced from all over India.
Customize its products to suit the tastes and preferences of customers from different parts of India.
For example, it launched 'Murukkus,' a South Indian snack, and 'Chennai Mixture' for South Indian
customers. 'Bhelpuri,' was made for customers residing in western India.
The company offered certain products such as 'Nazarana,' 'Panchratan,' and 'Premium' gift packs only
during the festival season.
This helped Haldiram's compete effectively in a market that was flooded with a variety of snack items
in different shapes, sizes and flavors.
PLACE:
From the manufacturing unit, the company's finished goods were passed on to carrying and forwarding
(C&F) agents. C&F agents passed on the products to distributors, who shipped them to retail outlets.
C&F agents received a commission of around 5%, while distributors earned margins ranging from 8%
to 10%.
The retail outlets earned margins ranging from 14% to 30%.
Apart from the exclusive showrooms owned by Haldiram's, the products were available at
supermarkets, sweet shops, provision stores, bakeries and ice cream parlors.
The products were also available in public places such as railway stations and bus stations that
accounted for a sizeable amount of its sales.
Haldiram's also offered its products through the Internet.
The company tied up with indiatimes.com , Giftstoindia.com, giftssmashhits.com, tohfatoindia.com and

channelindia.com
This was to enable NRIs residing abroad to send Haldiram's gift packs to specified locations in India.
PRICING:
The company's pricing strategy took into consideration the price conscious nature of consumers &
the large unorganized market it was battling

Introduced small packets of 30 grams, priced as low as Rs.5.
The company also launched namkeens in five different packs with prices varying according to
their weights.
The company increased prices only when there was increase in cost of raw materials or additional
taxes were imposed.
PROMOTION:
Magazines & print were used
Point of sales (Posters, Danglers, Buntings, Shelf Talkers)
Mailers to corporates during Diwali for bulk orders
Since namkeens were impulse purchase items, attractive packaging in different colors influenced
purchases.
Haldiram's used 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 similar products was under a week, the shelf life of Haldiram's
products was about six months.
The company projected the shelf life of its products as its unique selling proposition.
Posters highlighting the shelf life of its products carried the caption 'six months on the shelf and
six seconds in your mouth.'
The company established restaurants in Nagpur and Delhi.
In Nagpur an innovative strategy was undertaken to increase its business
It facilitated people who were traveling by train through Nagpur station to order food from places
where stockists of Haldiram's Nagpur unit were located.
POSITIONING:
Haldirams had an edge over its competitiors by minimizing promotion costs.

They earned recognition both in India and abroad.
Haldirams was admitted as the member of Snack Food Association, US.
SWOT
Strengths
1.Quality: the biggest strength of the company is the quality of the products, which is
maintained and improved over time.
2.Knowledge: Haldiram has been in this business since 1941 and over the time has
gained immense knowledge about the product and the consumers taste and
preferences.
3.Manpower: Haldiram have a lot of support from its employees in building up quality and
brand image.
4.Pricing: The prices of the products compared with the quality being offered to the
consumer seem to be quite reasonable.
5.Latest technology: Company invests a lot of money in technological development,
which helps company to remain in front of the competition.
6.Pacakaging: Haldiram is the first company to introduce proper packaging for the
product and over the period of time has improved by lot and still its the best.
7.Trust of the consumer: what drives the company is the trust of the consumer, which is
a big motivating factor for the company
WEAKNESSES
1. LOW ADVERTISING BUDGET: The Company spends very less in advertising and
promotional scheme compared to its competitors.
2. Too much stress on traditional Indian item
3. Internal Rivalry
4. Customer Service
OPPURTUNITIES
GROWING FOOD INDUSTRY: As the food industry is growing rapidly there are lots of
opportunities for the company to expand its market share in the future.
CHANGES IN THE CONSUMERS TASTE AND PREFERENCES: Consumers now demand more
of convenience food or packed food and snacks is the solution to the changing needs of
the consumer
INCREASE IN THE MONEY INCOME LEVEL OF THE CONSUMER:As the income level of the
consumer is increasing, the consumer likes to spend more money on buying packed
foodstuff.
PROSPECTS FOR EXPORT: The export market has been increasing tremendously, which
brings more and more opportunities for the company to expand their market globally.
THREATS
AVAILABLITY OF SUBSTITUTE GOODS: Biscuits, potato chips and other kinds of food items
other than namkeen can affect the demand for the namkeen in future.
HEALTH AWARENESS: As people are becoming more and more aware of being healthy the
demand for savory snacks is likely to get affected in the future.
INCREASING COMPETITION FROM INDIA AND MNC FOOD COMPANIES: With the increase in
the competition from the Indian and as well as MNCs the company needs to adopt
aggressive marketing and spend more money into advertising and promotional schemes.
And at the same time innovate new products.
DRAWBACKS:
Haldirams started advertising their products too late and in the bargain they lost the initial advantage
of marketing. Itscompetitors expenditure on product promotion was much higher and it attracted the
attention of viewers.
Itscompetitors product range consisted of various products which appealed older as well as the
younger generation.
Company portfolio does not include western snacks.
According to media reports, Haldiram's lagged behind competitors in the area of customer service. Few
of the company's restaurants did not possess the minimum requirements, such as sufficient seating
arrangements and adequate parking lots.

Haldiram's also had to deal with problems created by spurious products.
The informal split between the 3 units also gave rise to problems. This led to competition among them
and analysts were of the opinion that the internal rivalry among its own companies maylead to dilution
of Haldiram's brand equity.
SUGGESTIONS:
Since Haldirams is known for its tradition, it can introduce products in the ready to eat format with
their traditional taste.

Associating itself with other bigger brands can also help strengthen their brand image.
Haldirams does not have any special products for the kids and teenager segment, which is a huge
potential target market.

Radio advertising can help them to penetrate into the rural areas.
Aggressive, innovative advertising to make its presence known in the market.
Haldirams can come up with milk related products.
They can setup mini outlets inside the multinational office complexes.

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Haldiram's Group - Seeking the 'Right' Marketing Mix

The retail outlets earned margins ranging from 14% to 30%.

Haldiram's also offered its products through the Internet.

The company tied up with indiatimes.com , Giftstoindia.com, giftssmashhits.com, tohfatoindia.com and

the large unorganized market it was battling

Magazines & print were used

Point of sales (Posters, Danglers, Buntings, Shelf Talkers)

Mailers to corporates during Diwali for bulk orders

The company established restaurants in Nagpur and Delhi.

In Nagpur an innovative strategy was undertaken to increase its business

Haldirams had an edge over its competitiors by minimizing promotion costs.

arrangements and adequate parking lots.

their traditional taste.

potential target market.

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