A Report on

How Bikaji is Enhancing Consumer Retention Strategies for Thriving in an

Intense Competitive Market

Prepared By:

Aastha Agrawal

Abhijit Shah

Abhishek Kumar

Aditya Parmar

Akansha Arora

Akshansh Singh

M.B.A (2024-2026)

Managerial communication

School of Management

BML Munjal University

Date

20 August 2024
 A Report on

How Bikaji is Enhancing Consumer Retention Strategies for Thriving in an

Intense Competitive Market

Prepared By:

Aastha Agrawal – 240002

Abhijit Shah – 240005

Abhishek Kumar – 240009

Aditya Parmar – 240018

Akansha Arora – 240022

Akshansh Singh – 240025

M.B.A (2024-2026)

Managerial Communication

School of Management

BML Munjal University

Submitted To:

Dr. Deepti Sharma

Prof. Sumedh Kulkarni

2
 Acknowledgments

We express our deepest gratitude as we conclude our project, " How Bikaji is Enhancing
Consumer Retention Strategies for Thriving in an Intense Competitive Market."

Our heartfelt thanks go to BML Munjal University's School of Management for providing us
with this exceptional opportunity. This project has allowed us to bridge the gap between
theoretical knowledge and real-world applications, greatly enhancing our understanding.

We are especially grateful to our mentors, Dr. Deepti Sharma and Prof. Sumedh Kulkarni, for
their unwavering support and guidance. Their expertise and advice have been instrumental in
navigating the complexities of this project, providing clarity and direction.

We also extend our appreciation to the broader BML Munjal University community, including
the library staff, IT department, and administrative team, for their essential support. A special
thanks to our classmates for their camaraderie and enriching discussions, which have
significantly contributed to our growth.

This project has been a journey of personal and professional development, sharpening our
research, analytical, and teamwork skills. We've gained valuable insights into the FMCG
industry, preparing us well for future endeavors.

While we've aimed for thoroughness and accuracy, we apologize for any unintentional errors
or oversights.

Thank you all for your support and encouragement.

With sincere appreciation,

Aastha Agrawal, Abhijit Shah, Abhishek Kumar, Aditya Parmar, Akansha Arora, Akshansh
Singh.
BML Munjal University, MBA Class of 2024-26

3
 Executive Summary

In the intensely competitive food business, consumer retention has emerged as a major
emphasis for organizations looking for long-term success. The report is the study of Bikaji's
existing consumer retention methods, a leading Indian brand in the ethnic snacks market, and
presents a complete analysis to improve these strategies to increase customer loyalty,
satisfaction, and long-term engagement.
Bikaji has established itself as a preferred brand for traditional Indian snacks by using its strong
brand heritage, high-quality goods, and extensive distribution network. The company's current
consumer retention initiatives include a variety of loyalty programs, targeted marketing efforts,
and product innovation. These techniques have produced significant outcomes, contributing to
a consistent consumer base and repeat sales.

In this report, we conducted an in-depth study of Bikaji, focusing on the company's overall
performance, diversified product offerings, and market positioning. We performed a rigorous
survey to explore consumer opinions of Bikaji, collecting useful data on consumer behaviour
and preferences. This data was rigorously evaluated to find trends and patterns that may be
used to guide the company's retention initiatives. We then looked at how Bikaji is presently
implementing its consumer retention methods, evaluating their efficacy in promoting client
loyalty and ensuring long-term involvement in a competitive market.

On November 16, 2022, Bikaji became the first ethnic food company to be listed on the stock
exchange, demonstrating consumer and institutional trust in the brand. The listing was an
important milestone in Bikaji's continuous pursuit of excellence. Bikaji is happy to have a large
community of dedicated customers that advocate the brand. The company has a strong
distribution network, retail stores across India, production facilities, and offices in crucial
regions.

Our investigation showed some crucial insights regarding the efficacy of Bikaji's existing
retention strategies. Bikaji's marketing efforts are mostly focused on mass communication,

4
which, while effective in reaching a large audience, does not fully leverage the power of data-
driven targeted marketing. Customer data can be used to generate personalized offers and
campaigns, but there is still much space for improvement.

In conclusion, while Bikaji has built a solid basis for consumer retention, there are significant
potential to improve these methods by introducing more personalization, employing data
analytics, focusing on customer-centric innovation, and increasing customer support. By
implementing these ideas, Bikaji will be able to not only deepen its existing customer
relationships but also attract and retain new consumers, assuring long-term growth and success
in an increasingly competitive market.

5
 Table of Contents
Table of Contents

I. Acknowledgement

II. Executive Summary .......................................................................4

III. Table of Contents ..........................................................................6

IV. List of Tables and Illustrations.......................................................8

V. Abbreviations ..................................................................................9

1. Introduction ..................................................................................10
1.1 About the Industry ................................................................. 10
1.2 About the Company ............................................................... 11

2. Company Overview ..................................................................... 12

2.1 Nature of Business ................................................................. 12
2.2 Business Operations ............................................................... 14
2.3 Specific Functional Areas ........................................................15
2.4 Organizational Structure ..........................................................17
2.5 Product Portfolio ......................................................................18

3. Industry Analysis ...........................................................................20

3.1 SWOT Analysis .......................................................................20

3.2 Product Portfolio and Related Sales Revenue.........................24

3.3 Business Model .......................................................................28
3.4 Major Competitors & Nature of Competition .........................30
3.5 Forces Acting Upon the Industry .............................................31

4. Data Collection and Results .......................................................... 33

4.1 Financial Data ......................................................................... 33
4.2 Data Source ............................................................................. 35
4.3 Data Presentation .....................................................................36

5. Evolution and Expansion of Bikaji ............................................... 40

5.1 Response to Changing Consumer Behaviours .........................40

6
 5.2 Strategic Adjustments & Enhancements in Distribution .........44
5.3 Growth & Expansion Strategies ..............................................47

6. Sustainability and Ethical Practices ..............................................49

7. Consumer Retention Strategies ....................................................50

7.1 Techniques for Enhancing Customer Loyalty ....................... 50
7.2 Role of Product Quality and Innovation ................................51
7.3 Leveraging Technology for Customer Engagement ..............52

8. Findings and Analysis ..................................................................54

8.1 Data Analysis………………………………………………..54

9. Recommendations and Conclusion..............................................56

9.1 Recommendations…………………………………………..56

9.2 Conclusions…………………………………………………57

10. References ...................................................................................58

11. Glossary ......................................................................................59

12. Contribution ................................................................................61

7
 List of Tables and Illustrations

Figure 1 Journey Of Bikaji...................................................................................................................... 12

Figure 2 International Distribution Network ......................................................................................... 14
Figure 3 PAN India distribution ............................................................................................................. 15
Figure 4 Organizational Chart ............................................................................................................... 18
Figure 5 Product Range ......................................................................................................................... 19
Figure 6 Product Portfolio ..................................................................................................................... 24
Figure 7 Bhujia Produced everday ........................................................................................................ 25
Figure 8 Snack Comparision .................................................................................................................. 26
Figure 9 Sales Revenue by Product Category ........................................................................................ 27
Figure 10 Financial Data ........................................................................................................................ 33
Figure 11 Understanding consumer behavior in FMCG Industry .......................................................... 40
Figure 12 Growth Strategy across E-comm and New Age Channels ..................................................... 41
Figure 13 Retaining its loyal Customer.................................................................................................. 43
Figure 14 STRONG BRAND POSITIONING .............................................................................................. 44
Figure 15 Strategic Adjustments and enhancements in Distribution ................................................... 44
Figure 16 A Team for the Future ........................................................................................................... 46
Figure 17 Packaging Innovation ............................................................................................................ 49
Figure 18 Customer Loyality Program Participation Over the Years ..................................................... 50
Figure 19 Customer retention rate over the years ................................... Error! Bookmark not defined.
Figure 20 Product Quality ratings ......................................................................................................... 51
Figure 21 New product launches over the years .................................................................................. 51
Figure 22 Customer Engagement across Digital Platforms ................................................................... 52
Figure 23 Growth in e comm Sales over the years................................................................................ 52

8
 Abbreviations

 B2B: Business-to-Business
 B2C: Business-to-Consumer
 CAGR: Compound Annual Growth Rate
 COGS: Cost of Goods Sold
 CRM: Customer Relationship Management
 CSR: Corporate Social Responsibility
 DMS: Distributed Management Systems
 EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization
 E: Estimated (in projections)
 EPS: Earnings Per Share
 ERP: Enterprise Resource Planning
 FY: Fiscal Year
 FMCG: Fast-Moving Consumer Goods
 GDP: Gross Domestic Product
 GI: Geographical Indication
 GST: Goods and Services Tax
 IPO: Initial Public Offering
 PAT: Profit After Tax
 PLI: Production Linked Incentive
 POPs: Points of Parity
 PODs: Points of Differentiation
 P&L: Profit and Loss
 ROA: Return on Assets
 ROE: Return on Equity
 SCM: Supply Chain Management
 SWOT: Strengths, Weaknesses, Opportunities, Threats
 Tn: Tonnes
 ₹: Indian Rupee

9
 1. Introduction

1.1 About the Industry

India’s FMCG (Fast Moving Consumer Goods) industry is a major sector that has steadily
grown over the years. FMCGs usually have a short shelf-life, are sold at relatively low prices,
and are consumed every day by people from the poor to the middle class or higher class. These
products are usually purchased frequently, consumed quickly, and replaced often as they fall
under necessities that must be constantly replenished. FMCG growth factors include changing
lifestyles, increasing incomes, more awareness as well as better opportunities for consumers’
reach.

Dated December 2022, the FMCG market was valued at $56.8 billion. The FMCG market's
total revenue is expected to reach approximately $615.87 billion by 2027, with a CAGR of
27.9% between 2021 and 2027.1

The Snack Food Industry

The competition in India's snack food industry is intense, with multiple companies vying for
market dominance. Changing consumer preferences, urbanization, and increasing disposable
income have been driving the rapid growth of the industry in recent years. The Namkeen and
ethnic snacks market is currently valued at Rs. 11,400 crores and is anticipated to grow by 16%
over the next four to five years, according to Bikaji's draft red herring prospectus for Fiscal
2022. A 'Research and Markets' report projected a 7.5% CAGR for India's snack food market
from 2021 to 2026.2

1
Bharti, A., & Verma, Dr. R. (2024). Impact of digitalization in the fast-moving consumer goods industry in India.
Journal of Scientific Research and Technology (JSRT), 2(2), 1–8. https://www.jsrtjournal.com

2
Taneja, P. (2024). PROFITABILITY ANALYSIS OF BIKAJI FOODS INTERNATIONAL LTD. In Maharaja Ganga Singh
University, International Journal of Novel Research and Development (Vol. 9, Issue 2, pp. d29-c29) [Journal-
article]. https://www.ijnrd.org

10
1.2 About the Company

Bikaji Foods International Limited is a leading Indian manufacturer and exporter of snacks and
sweets. Founded in 1993, Bikaji Foods International Limited (Bikaji) is one of the largest
Indian companies in the sweets and snacks market. Shiv Ratan Agarwal, the grandson of
Haldiram’s founder Mr. Gangabishan Agarwal, went on to establish Bikaji. The company has
grown from a local enterprise in Bikaner, Rajasthan to a globally recognized brand. The name
"Bikaji" pays homage to Rao Bika Ji, the founder of Bikaner, reflecting the company's
commitment to preserving traditional food culture.

The company has distinguished itself by offering high-quality traditional Indian snacks and
sweets, earning a reputation for excellence. It offers a wide range of products including savory
snacks (namkeen), their signature bhujia made from gram flour and spices, traditional sweets,
and ready-to-eat meals. They use a blend of time-tested recipes and modern manufacturing to
ensure consistent taste and quality.

Bikaji prioritizes customer satisfaction with a focus on quality, innovation, and traditional
flavours and strives to understand and meet diverse preferences. This approach has made them
a trusted household name in India and abroad.

Bikaji boasts 6 manufacturing facilities with advanced technology to ensure efficient and
hygienic manufacturing. Their robust distribution network spans across India and reaches over
35 countries worldwide, contributing to its global footprint.

The company continues to expand globally, introducing Indian flavours to new audiences.
Their expansion into global markets has been instrumental in propelling their position as a
frontrunner in the Indian snacks and sweets industry.

Bikaji's story exemplifies how a company can honour its cultural heritage while embracing
modern practices to cater to a global market. Their dedication to quality, innovation, and
customer satisfaction has brought the authentic taste of India to consumers around the world

Despite its strong positioning, the company faces intense competition from other established
players in the market, hence, it must continuously innovate and differentiate itself to maintain
its market share and profitability.

11
 2. Company Overview

Bikaji is one of the known companies in the food and beverage subcategory of the fast-moving
consumer goods (FMCG) industry. The business specializes in creating ready-to-eat snacks,
confectionery items, and associated food items that serve both domestic and international
consumers.

2.1 Nature of Business

Type of Industry

The fast-moving consumer goods (FMCG) sector includes goods including packaged foods,
drinks, personal care products, and household items that are readily available and reasonably
priced. Bikaji is firmly positioned in the food sector of the FMCG market because of its
unwavering commitment to quality products across the world.

Figure 1 Journey Of Bikaji

12
Company Name Bikaji Food Internationals Ltd.

Industry Fast Moving Consumer Goods (FMCG)

Year Of Incorporation 1995

Trading Status Listed

Registered Address F 196 -199, F 178 & E 188 BICHHWAL

IND. AREA, BIKANER RJ 334006 IN.

Corporate Address PLOT NO.E-558-561, C-569-572, E-573-

577,F-585-592 KARNI EXTENSION, RIICO
INDUSTRIAL AREA, BIKANER 334004 RJ
IN

Type Public Listed Company

Email [email protected]

Website www.bikaji.com

Contact no +91 -15-2250-350

No of Plants 11

No of Offices 5

13
2.2 Business Operations:

Manufacturing: Bikaji produces a broad range of snacks, such as frozen food, namkeen,
sweets, papad, and bhujia. Bikaji places a strong emphasis on using modern manufacturing
facilities to ensure that customers get the highest levels of quality and hygiene.

Distribution: Bikaji has a wide distribution network that includes marketplaces in India and
several other countries. The company's products are sold online, in supermarkets, and at retail
establishments.

Export: Bikaji distributes its products to a number of nations with the goal to serve the global
snack community as well as the Indian market.

Figure 2 International Distribution Network

14
 Figure 3 PAN India distribution

2.3 Specific Functional Areas

Bikaji Foods International Limited operates through a range of functional areas. The functional
divisions of the corporation include marketing, sales, customer service, finance, and
manufacturing in addition to product development and manufacture. Every functional area is
essential to advancing Bikaji's goal of providing its customers all over the world with premium
traditional Indian snacks and sweets.

Production and Handling:

Production planning monitors the manufacturing process to ensure economy and effectiveness.
Supply chain management is in charge of the distribution of completed goods, raw material
acquisition, and logistics. Inventory control ensures that there are enough goods readily
available to satisfy demand without going beyond.

15
Quality Control:

Bikaji places a strong emphasis on upholding quality standards. From sourcing raw materials
to packaging finished goods, the company employs strict quality control procedures at every
stage of the production process.

Every product is put through quality inspections to make sure it satisfies the company's
requirements for flavor, texture, and safety.

Sustainability Practices:

Bikaji incorporates sustainable practices into its production processes. The company uses waste
minimization strategies, energy-efficient manufacturing processes, and environmentally
friendly packaging options.

Sales & Marketing:

The Sales & Marketing functional area is essential to the company's expansion and to ensure
that a large consumer base is reached by its products. This section is in charge of increasing
brand awareness, pushing Bikaji's wide variety of traditional Indian snacks and sweets, and
optimizing sales in a number of regions.

Enhanced Brand Image:

Establishes and preserves the Bikaji brand image through brand management. Digital
marketing is the practice of promoting things through online channels. Bikaji leverages its
heritage and the cultural significance of its products to build a loyal customer base.

Market Research:

The market research department of Bikaji Foods International Limited significantly contributes
to the development of the company's strategy which is essential for decision-making in a
variety of functional domains, this department is in charge of obtaining, evaluating, and
interpreting data.

16
Researching competitors can help you place your product in the market by identifying their
strategies, benefits, and drawbacks. Measures market size, growth rates, and potential to project
demand in the future and highlight areas for expansion.

Advertisements & Promotions

Bikaji uses a combination of digital and traditional marketing techniques. Conventional

approaches, which are efficient in reaching a large audience, include print advertisements,
outdoor advertising, and television commercials. The business has also embraced digital
marketing in recent years, focusing on tech-savvy customers with online advertisements, social
media platforms, and search engine marketing. Examples include planning and execution of
the launch of new products to generate excitement and demand, event sponsorships, billboards,
transit ads, and posters for high visibility.

2.4 Organizational Structure

Bikaji Foods Internationals is one of the well-renowned companies in the Indian snack industry
that has built its organizational structure to support its expansion, innovation, and market
presence.

Bikaji operates as a well-managed firm, with the board of directors providing overall direction.
The Board ultimately has authority over the management, general operations, direction,
performance, and long-term sustainability of the business. The members of the board are
distinguished, trustworthy, and have a great deal of expertise. The board is composed of a
strong and diverse mix of executive and non-executive directors.

Deepak Agarwal, the Managing Director, is in charge of the company's operations and overall
strategic direction. Shweta Agarwal, an important director, supports him with governance and
strategic choices.

17
 Figure 4 Organizational Chart

2.5 Product Portfolio

Bikaji is a well-known brand in the Indian snack and confectionery market and offers a broad
selection of goods to suit a variety of individuals. Bikaji is widely known for their original
flavors and premium ingredients. The product range comprises classic Indian namkeens like
Bhujia, Aloo Bhujia, Khatta Meetha, papads, Gulab Jamun, Rasgulla, and Soan Papdi,

Bikaji is one of the most well-known snack brands in India, selling over 400 tonnes of goods
per day.

The delicious flavor of Bikaji is enjoyed by more than 40 well-known American, Gulf, and
European countries due to its commitment to preserving authentic Indian flavor. Bikaji
consistently pushes the limits of innovation and production excellence, leading the flavor
industry.

Bikaji is a one-stop shop for all your celebrations and daily snacking needs because it also sells
ready-to-eat meals, frozen goods, and premium gift packages. Bikaji is a reliable option for
homes around the nation and beyond because it combines innovation and tradition to make sure
every product captures the true flavor of India.

18
Figure 5 Product Range

19
 3. Industry Analysis

3.1 SWOT Analysis

20
Strengths

 Strong Brand Recognition: Especially in the Indian market, Bikaji has an established
name and recall value for 30 years. It is a brand with cultural and historical significance,
originating from Bikaner, a region famous for its snacks.

 Diversified Product Portfolio: To accommodate a wide range of consumer tastes,

Bikaji provides a wide selection of snacks and sweets in several categories. This
includes Indian sweets, namkeen, papads, bhujia, frozen snacks, and celebratory foods.

 Production Capabilities: The company is known for its high-quality and hygienic
manufacturing processes, which build consumer trust and loyalty. With an emphasis on
quality control, Bikaji has advanced, strategically positioned production facilities. By
doing this, they meet the increasing demand for their products while maintaining a
consistent level of product quality.

 Innovation and Adaptability: Bikaji has a readiness to innovate through the

introduction of new products and to adjust to shifting consumer preferences. They
constantly add new tastes and types to their menu, which keeps it interesting and current
for clients.

 Widespread distribution channels: The backbone of Bikaji is, its profound

distribution channel. Covering supermarkets and mega marts like Dmart and Reliance
Smart. From local Convenient stores to e-commerce platforms and now more visible in
global marketplaces.

Weaknesses

 Competition: In the organized sector, Bikaji confronts fierce rivalry from well-known
businesses like Haldiram's, while in the unorganized sector, there are many local rivals.
To preserve market share, this calls for ongoing innovation and effective marketing.

 Concentrated in India: Although the company is expanding internationally, its major

market share is still concentrated in India.

21
  Profit Margin: Bikaji has significantly lower profit margins when compared to some
of its competitors. This can reduce the amount of money available for campaigns aimed
at marketing and subsequent expansion.

 Advertising and Marketing: Although Bikaji is a well-known brand, its advertising

tactics may not be as forceful as those of certain rivals. This can reduce the awareness
and reach of the brand among customer groups.

Opportunities

 Expanding Snack Market: Several reasons, including rising disposable incomes,

growing urbanization, and shifting consumer tastes, are contributing to the snack
market's notable expansion in India. Bikaji now has a great chance to increase both its
revenue and market share

 Global Expansion: There is a great deal of room for revenue growth if they continue
to establish themselves in global marketplaces. The worldwide market for Indian snacks
is rising, which gives Bikaji opportunities to enter new markets and target
demographics.

 Health-Conscious Consumers: Bikaji has a chance to create and promote goods that
appeal to this expanding customer group because of the increased desire for healthier
snack choices. Offering low-fat, low-sodium, or baked snacks might be one way to do
this

 E-commerce Growth: Bikaji can reach a wider audience and serve online buyers by
taking advantage of the expanding e-commerce market. They can access a market sector
that is expanding quickly and reach new clients as a result.

Threats

 Price variations for raw materials: The snack sector is vulnerable to changes in the
cost of essential components such as spices, oil, and pulses. This may have a substantial
effect on Bikaji's profitability and call for changing pricing tactics.

22
  Shifting Customer Preferences: It can be difficult to adapt to changing consumer
preferences and tastes. To remain relevant and meet shifting customer wants, Bikaji
must continuously develop and modify its product line.

 Economic Downturn: Consumer spending and the desire for luxuries like snacks may
suffer during economic downturns. To reduce possible losses, this calls for cost-cutting
and strategic planning

 Intense Competition: The snack business is extremely competitive, with fresh

competitors and aggressive tactics from long-standing firms always posing a threat.
Strategic marketing, effective operations, and ongoing innovation are all necessary for
Bikaji to keep its competitive advantage.

Bikaji may address their vulnerabilities and reduce possible risks by leveraging their chances
and strengths. By doing this, they will be able to maintain their lead in the competitive and
dynamic snack food market, build their brand internationally, and establish a strong foothold
in the Indian snack market.

23
3.2 Product Portfolio and Related Sales Revenue

Figure 6 Product Portfolio

24
Bikaji is one of the prominent players in the domestic snacks and sweets market. It is amongst
the top two players in the Bikaneri bhujia, handmade papad and sweets market. The company
has more than 300 product offerings across segments and has leadership in the states of
Rajasthan, Bihar and Assam.

Bhujia – (35% revenue share)

Bikaji is the leading producer of Bikaneri bhujia, with an annual output of 29,380 tonnes. in
2023. As Bikaneri bhujia has GI (Geographical Identification) tag since 2010, no other places
the name can be used.
Resulted Effect:
This reduces competition in this category. The company has 14 different offerings in this
category which reported 26.9% revenue CAGR over FY22-23.
Prediction
The bhujia business would post 24.2% CAGR over FY22-25E from Rs 5.6bn in FY22 to Rs
10.7bn in FY25E.3

Figure 7 Bhujia Produced everday

Namkeen – (37% of revenue) – The company has a diversified namkeen portfolio with 66
products in this category. Products like Kuch Kuch, Moong Dal, Soya Stick, Nutcracker, Sab
Kuch, and Pancha Ratna are among the best-sellers across India.

Prediction:
Going ahead, The Namkeen business would post 23.5% CAGR over FY22-25E from Rs 5.7bn
in FY22 to Rs 10.7bn in FY25E.

3
Bobade, S., Amonkar, J., Rathore, H., & Bikaji Foods International. (2023). Bikaji – Gamut of Indian flavours.
Bikaji Foods International.

25
 Figure 8 Snack Comparision

Packaged sweets – (13% of revenue) - The company has 43 different products under this
category.
It is one of the top producers of packaged rasgulla, with an annual capacity of 24,000 tonnes.
The company also leads in manufacturing Soan Papdi and Gulab Jamun, producing 23,040
tonnes and 12,000 tonnes annually, respectively.
Resulted Effect:
Highly automated manufacturing, innovations like eyelid openers, and launches of variants
across products are helping the company to grow faster in the category.4
Prediction:
The packaged sweets business would post a 26.1% CAGR over FY22-25E from Rs 2.0bn in
FY22 to Rs 4.1bn in FY25E.

Handmade Papad – (6% of revenue) - In 2023, the company became the second-largest
producer of handmade papad, boasting an annual production capacity of 9,000 tonnes. It offers
a wide variety of papads, ranging from small 1.5-inch disco papads to large 9-inch options,
including well-known variants like Baat Cheet Papad, Aas Pass Papad, and Dil Khush Papad.

Resulted Effect:
While the papad manufacturing market is competitive, handmade papads cater to a dedicated
consumer base with specific taste preferences, driving revenue growth.

4
Bobade, S., Amonkar, J., Rathore, H., & Bikaji Foods International. (2023). Bikaji – Gamut of Indian flavours.
Bikaji Foods International.

26
Prediction:
The handmade papad segment is projected to grow at a 20.6% CAGR from FY22 to FY25E,
with revenues increasing from ₹1.1 billion in FY22 to ₹1.9 billion in FY25E

Western snacks – (5% of revenue) – The Western snack category mainly includes chips,
extruded products, and pellets. The company has 32 product offerings in this category .

Resulted Effect:
The targeting 10% revenue contribution from this segment over 4-5 years.

Prediction :
The western snacks business would post 27.9% CAGR over FY22-25E from Rs 0.9bn in FY22
to Rs 1.9bn in FY25E.
The chart illustrates Bikaji Foods International Ltd.'s sales revenue distribution for 2023. The
majority of the revenue comes from Namkeen (37%) and Bhujia (35%), which together make
up 72% of the total sales. Packaged Sweets contribute 13%, while Handmade Papad and
Western Snacks account for 6% and 5%, respectively. This shows the company's strong
reliance on traditional Indian snacks

Figure 9 Sales Revenue by Product Category

27
3.3 Business model

Bikaji Foods International Limited has established a successful business model that
leverages its strong brand identity, diverse product portfolio, and efficient distribution network
to capture market share in the Indian snack and sweets industry. The company's strategy
focuses on innovation, expansion, and cost-effectiveness.5 Here's a breakdown of
key elements:

Value Proposition:

Authentic Indian Flavors: Bikaji emphasizes traditional recipes and high-quality ingredients,
offering consumers a taste of India's rich culinary heritage.

Diverse Product Range: Bikaji caters to a wide range of taste preferences with a variety of
savory snacks, sweets, and ready-to-eat options.

Focus on Quality: The company prioritizes stringent quality control measures throughout the
production process, ensuring consistent taste and hygiene.

Brand Trust: Bikaji has established itself as a reliable and trustworthy brand, recognized for
its delicious and dependable products.

Strong Network: Bikaji boasts a robust distribution network spanning across India, reaching
various retail outlets like supermarkets, grocery stores, convenience Stores and e-commerce
platforms too.

Direct and Indirect Channels: They utilize a mix of direct distribution to major retailers and
indirect distribution through super stockists and distributors who reach smaller stores.

Global Presence: The company's international expansion involves establishing partnerships

with distributors and retailers in target countries

5
Taneja, P. (2024b). PROFITABILITY ANALYSIS OF BIKAJI FOODS INTERNATIONAL LTD. In Maharaja Ganga Singh
University, International Journal of Novel Research and Development (Vol. 9, Issue 2, pp. d29-c29) [Journal-
article]. https://www.ijnrd.org

28
Points of Parity (POPs):

The POPs for Bikaji are:

Taste: Bikaji competes on taste, offering delicious and satisfying snacks that cater to Indian
taste preferences. However, this is a POP as most snack companies strive for tasty products.

Hygiene and Safety: Maintaining hygienic production processes and ensuring food safety is a
basic expectation in the food industry.

Packaging: Proper packaging to maintain product freshness and attract consumers is another
industry standard.

Points of Differentiation (PODs):

Here are some potential PODs of Bikaji:

29
Brand Heritage and Authenticity: Bikaji emphasizes its connection to Bikaner's rich culinary
heritage, offering a unique selling proposition compared to generic snack brands.

Product Variety: Their diverse product range caters to a wider range of consumer preferences,
potentially exceeding what some competitors offer.

Focus on Quality Ingredients and Traditional Recipes: Bikaji's commitment to high-quality

ingredients and time-tested recipes might differentiate them from companies using more
processed ingredients or focusing solely on cost reduction

3.4 Major Competitors & Nature of Competition

Major Competitors: The Indian snack and sweets industry is highly competitive, with Bikaji
facing challenges from both established national players and regional competitors. Here's a
breakdown of some key competitors:

National Players:

Haldiram's (Both Delhi and Nagpur): A leading Indian snack brand with a similar product
range to Bikaji, known for its namkeens, sweets, and papads. Their strong brand recognition
and extensive distribution network pose a significant challenge.

ITC (Everest): A major FMCG company with a strong presence in the snack segment through
brands like Bingo. They compete head-to-head with Bikaji on product innovation and pricing
strategies.

Parle Products: Another established FMCG player with popular snack brands like Kurkure.
They offer a range of savory snacks that directly compete with Bikaji's offerings.

Regional Players:

Gopal Snacks: A regional player with a strong presence in certain markets, likely offering
similar products to Bikaji and competing on price and local awareness.

Pratap Snacks: Another regional competitor with a more limited geographical reach but
potentially strong brand recognition in its specific market.

Aakash Global: Another regional competitor, potentially focusing on specific snack

categories or catering to local taste preference.

30
Nature of Competition:

The competition in the Indian snack and sweets industry is multifaceted, requiring Bikaji
to strategize across various aspects:

Brand Recognition: Established brands like Haldiram's and ITC leverage their strong brand
image to attract customers. Bikaji needs to maintain effective marketing to compete for brand
loyalty.

Product Innovation: Constantly introducing new and exciting flavours and snack options is
crucial for market share. Bikaji must balance tradition with innovation to cater to evolving
consumer preferences.

Pricing and Distribution: Competitive pricing strategies and extensive distribution networks
are essential for market penetration. Bikaji needs to optimize their pricing and reach various
retail outlets, both national and regional chains.

Competitive Advantage:

Strong Brand Recognition: Bikaji has a well-established brand name in India, synonymous
with quality and authentic Indian snacks.

Economies of Scale: Their large production capacity and efficient operations allow them to
offer competitive pricing.

Focus on Quality and Hygiene: Their commitment to quality control ensures consistent
product experience and builds customer trust

3.5. Forces Acting Upon The Industry:

31
Several macro and micro factors significantly influence the Indian snack and sweets
industry6:

Macro Factors:

Economic Growth: Rising disposable incomes in India fuel demand for packaged snacks and
sweets, creating a positive growth environment for Bikaji.

Urbanization: The growing urban population with busy lifestyles increases demand for
convenient and ready-to-eat snack options, a trend Bikaji can capitalize on.

Changing Consumer Preferences: Consumers are increasingly health-conscious, driving a

demand for healthier snack options. Bikaji can adapt by offering baked or multigrain snacks
alongside traditional offerings.

Government Regulations: Regulations regarding food safety, labeling, and ingredients can
impact production costs and product development. Bikaji needs to stay compliant with
evolving regulations.

Micro Factors:

Raw Material Prices: Fluctuations in the prices of key ingredients like lentils, sugar, and
edible oils can affect Bikaji's production costs and profitability. They might need to find ways
to optimize costs or adjust pricing strategies.

6
Frost & Sullivan. (2022). INDUSTRY REPORT ON SAVOURIES, SWEETS AND PAPAD IN INDIA [Report].
https://www.bikaji.com/pub/media/IR-Savouries-Sweets-Papad-India.pdf

32
 4. Data Collection and Results

4.1 Financial Data

Figure 10 Financial Data

Here is a visual comparison of the financial data over the last five years, presented in charts for
Revenue, EBITDA, Profit After Tax (PAT), and Earnings Per Share (EPS):

Charts:

 Revenue from Operations: Shows consistent growth, reaching ₹196,607 lakhs in

2022-23.

 EBITDA: Also shows steady growth, with ₹21,360 lakhs in 2022-23.

 Profit After Tax (PAT): Reflects a rising trend, culminating at ₹12,660 lakhs in 2022-
23.

33
  Earnings Per Share (EPS): Indicates increasing shareholder value, with EPS reaching
₹5.15 in 2022-23.

Financial Year Revenue from EBITDA (₹ Profit After Tax Earnings Per
Operations (₹ Lakhs) (₹ Lakhs) Share (₹)
Lakhs)
2018-19 125000 12000 8000 3.5
2019-20 145000 14000 9000 4.0
2020-21 162000 17000 10000 4.2
2021-22 180000 19500 11000 4.8
2022-23 196607 21360 12660 5.15

2. Growth Rate Analysis (2018-2023):

 Revenue Growth:

o Revenue has grown consistently over the five years, with a Compound Annual
Growth Rate (CAGR) of approximately 11.6% from 2018-19 to 2022-23.

 EBITDA Growth:

o EBITDA has shown a strong upward trend, with a CAGR of approximately

15.0% over the five-year period.

 PAT Growth:

o PAT has also increased steadily, with a CAGR of around 12.0%.

 EPS Growth:

o EPS growth reflects increasing profitability and shareholder value, with a

CAGR of approximately 10.0%.

3. Financial Data Analysis:

 Revenue:

o The company's revenue has grown steadily, reflecting its successful market
penetration, product diversification, and brand strength. The revenue reached

34
 ₹1,96,607 lakhs in 2022-23, showing consistent growth from ₹1,25,000 lakhs
in 2018-19.

 EBITDA:

o EBITDA growth indicates the company’s ability to maintain profitability

despite increasing operational costs. The margin has improved over the years,
showcasing efficient cost management and operational effectiveness.

 Profit After Tax (PAT):

o The PAT growth trend is positive, highlighting the company's ability to convert
revenue into actual profit. This consistent growth in PAT reflects effective tax
and interest management.

 Earnings Per Share (EPS):

o EPS has consistently increased, indicating the company’s growing profitability

on a per-share basis. This is a positive sign for investors as it implies an
increasing return on investment.

4.2 Data Sources

 Internet Research: Insights into market trends and general information were obtained
from reliable online platforms, including industry reports, market analysis websites,
and relevant news articles.

 Annual Reports: Financial data, company-specific performance metrics, and regional

sales information were sourced from the annual reports of Bikaji Foods.

 Google Form Questionnaire: Primary data was collected via a questionnaire

distributed to consumers. This approach provided valuable insights into consumer
preferences, purchasing habits, and regional demand trends.

35
4.3 Data Presentation

36
37
38
39
 5. Evolution and Expansion of Bikaji

5.1 Response to Changing Consumer Behaviours

Figure 11 Understanding consumer behavior in FMCG Industry

The world of fast-moving consumer goods (FMCGs) is a dynamic one, constantly evolving
with the tastes and preferences of its consumers.

To thrive in this industry, businesses must have a keen understanding of the factors influencing
buying decisions.

The Modern Consumer:

Today’s consumers are a complex mix of individuals with diverse needs and desires. Their
choices are shaped by a multitude of factors, including:

 Evolving tastes: Our preferences for flavours, textures, and even product categories
are constantly changing. What was popular yesterday might not be in demand
tomorrow.
 The digital age: Technology has transformed how we shop. We research products
online, compare prices, and often expect a seamless blend of online and offline
shopping experiences.
 Price sensitivity: While quality is important, price still matters. Consumers are looking
for value for money and are more likely to switch brands if they find a better deal.

40
  Personal values: People are increasingly conscious of the impact their choices have on
the environment and society. They are more likely to support brands that align with
their values, especially when it comes to sustainability.

The Rise of the Conscious Consumer

A growing number of consumers are making purchasing decisions based on ethical and
environmental considerations. They are willing to pay a premium for products that are
sustainably sourced and produced. This shift towards conscious consumption presents both
challenges and opportunities for FMCG companies.

To sum it up, understanding the modern consumer is crucial for businesses in the FMCG
sector. By staying attuned to changing tastes, embracing technology, offering value, and
aligning with consumer values, companies can build strong brands and achieve long-term
success.

Bikaji: Keeping Customers Coming Back for More

The consumer retention policy bikaji does.

Figure 12Growth Strategy across E-comm and New Age Channels

Bikaji isn't just about delivering delicious snacks; they're all about building long-lasting
relationships with their customers. Here's how they cultivate brand loyalty:

41
The Power of Nostalgia with a Modern Twist:

Bikaji understands the comfort and joy of familiar flavours. They take classic Indian snacks
and give them a contemporary makeover, keeping the regional essence alive while catering to
evolving palates. Imagine your favourite childhood snack, but now with a touch of something
new and exciting!

Convenience at Your Fingertips:

The pandemic highlighted the importance of safe and convenient ways to shop. Bikaji adapted
brilliantly, launching a user-friendly website and mobile app for online ordering. Plus, they
partnered with major e-commerce platforms like Amazon and Swiggy, ensuring their tasty
treats are just a click away.

Innovation is Key:

Bikaji isn't afraid to experiment! They have a dedicated "innovation funnel" constantly
churning out new and exciting products. From healthy multigrain mixes to indulgent cheese
balls and French fries, there's something for everyone. They're also expanding their "Bikaji
Funkeen" and "Bikaji Café" lines with regional specialties and trendy snacks, keeping their
offerings fresh and exciting.

Nationwide Reach for a Nationwide Craving:

Craving Bikaji but worried you can't find them? Fear not! They're strategically setting up new
manufacturing facilities across India, ensuring their snacks are readily available no matter
where you are. This not only makes them more accessible but also helps maintain the freshness
of their products.

Building a Stronger Sales Network:

Bikaji is investing heavily in strengthening its distribution network. They're expanding their
direct sales force and collaborating with established wholesalers for wider indirect distribution.
This ensures their products reach more stores and ultimately, more happy customers!

42
Investing in Efficiency:

Bikaji is committed to streamlining its operations for both cost-effectiveness and a smoother
customer experience. They're implementing process transformations across various
departments and integrating technology to improve efficiency and transparency. This translates
to better service and a focus on getting their delicious snacks into your hands faster.

A Team for the Future:

Bikaji recognizes the importance of a strong leadership team. They're actively recruiting
experienced professionals to further bolster their management structure, ensuring they're well-
equipped to navigate the ever-evolving snacking landscape.

By focusing on innovation, convenience, accessibility, and a commitment to quality, Bikaji is

well on its way to retaining its loyal customer base and attracting new snack enthusiasts. So,
the next time you're looking for a delicious treat, remember Bikaji – they're more than just a
snack company, they're a brand that understands the importance of keeping their customers
happy.

Figure 13 Retaining its loyal Customer

43
 STRONG BRAND POSITIONING

Figure 14 STRONG BRAND POSITIONING

5.2 Strategic Adjustments and enhancements in Distribution

Figure 15 2 Strategic Adjustments and enhancements in Distribution

44
Bikaji: Reaching You Wherever You Are

Bikaji knows that getting their delicious snacks into your hands is crucial. Here's how they're
constantly improving their distribution network:

Building for the Future:

Bikaji isn't waiting around for demand to come to them. They're strategically setting up new
manufacturing facilities across India. This ensures they can meet growing demand and keep
their products fresh by reducing lead times.

Spreading the Snack Love:

Whether you prefer to shop at local stores or online, Bikaji has you covered. They're adding
more outlets to their direct sales network and working with established wholesalers for wider
indirect distribution. This "double whammy" approach means you're more likely to find your
favourite Bikaji treats wherever you shop.

Tech Powering Efficiency:

Bikaji isn't just about tasty snacks; they're also about smart solutions. They're using innovative
tools like Distributed Management Systems (DMS) and Sales Force Automation (SFA) to
streamline their distribution network. This means smoother operations, happier distributors,
and ultimately, faster delivery of your favourite Bikaji snacks.

The E-commerce Advantage:

The digital revolution hasn't escaped Bikaji's notice. They have their own user-friendly
shopping app and have partnered with major e-commerce players like Amazon and Swiggy.
This allows you to order your favourite Bikaji snacks from the comfort of your couch and have
them delivered straight to your door. Perfect for those late-night craving emergencies!

More Than Just Snacks:

Bikaji understands that a successful business is about more than just products. They're
constantly working to improve their overall operations. This includes implementing efficient

45
processes across various departments, like finance and marketing, and using a robust Enterprise
Resource Planning (ERP) system to manage everything seamlessly.

Building a Brand You Love:

Bikaji is more than just a snack company; they're a brand that connects with their customers.
They have a wide range of products to cater to diverse tastes and ensure their products are
available in a variety of stores, from small shops to large supermarkets. They've even partnered
with iconic Bollywood actor Amitabh Bachchan to further strengthen their brand image.

Reaching New Audiences:

Bikaji recognizes the power of digital media. They've revamped their website for online
shopping and utilize social media platforms like YouTube and Instagram to connect with
younger generations. They're also exploring movie collaborations to further boost their brand
awareness during festive seasons.

A Team for the Future: Bikaji is led by a team of experienced professionals who are
passionate about bringing you the best snacking experience. They're constantly innovating
and adapting to the ever-changing marketplace, ensuring Bikaji remains a household name
for delicious snacks for years to come.

Figure 16 A Team for the Future

46
5.3 Growth and Expansion Strategies

Bikaji isn't content with being just another snack brand. They're on a mission to conquer taste
buds across India and beyond. Here's how they're doing it:

Discovering New Frontiers

Bikaji has its eyes set on untapped territories like Uttar Pradesh, Punjab, Haryana, Delhi,
Karnataka, and Telangana. They understand that every region has its unique snack preferences,
so they're tailoring their offerings accordingly. It's not just about expanding their reach; it's
about creating a personalized snacking experience for each market.

Investing in the Future

Bikaji is future-proofing its operations with strategic investments. They're expanding their
manufacturing capabilities with new plants and venturing into exciting new categories like
frozen food. This means more delicious options for you and a stronger Bikaji overall.

Building a Strong Foundation

A robust distribution network is crucial for any successful FMCG brand. Bikaji is focused on
building a strong network of super stockists and leveraging both direct and indirect sales
channels. This ensures their products are readily available, no matter where you are.

Powering Growth with Technology

Bikaji is embracing technology to streamline operations and reach a wider audience. Their
focus on e-commerce, coupled with traditional retail channels, means you can enjoy your
favourite Bikaji snacks in the way that suits you best.

Seizing Opportunities

The government's Production Linked Incentive (PLI) scheme is a game-changer for Bikaji.
This financial boost is helping them expand production, invest in research and development,
and compete globally. It's a win-win for Bikaji, the economy, and snack lovers everywhere!

47
Sharing the Success

Bikaji believes in shared prosperity. Their franchise opportunities allow entrepreneurs to be

part of their success story. By opening Bikaji retail outlets or distribution centres, franchisees
can tap into the brand's popularity and build their own businesses.

Bikaji's commitment to growth, innovation, and customer satisfaction is evident in their

strategies. They're not just expanding their market reach; they're redefining the snacking
experience for millions of people.

Bikaji: A Recipe for Success

Bikaji Foods International has expertly crafted a growth strategy that's as flavourful as their
snacks. By combining a deep understanding of their consumers with strategic investments,
they've positioned themselves as a leading player in the Indian snack market.

Expanding Horizons: Geographic Conquest

Bikaji has wisely identified regions with untapped potential, demonstrating a keen
understanding of the Indian market. By tailoring their products to local tastes and preferences,
they've managed to resonate with consumers across different states. Their strategic use of
modern trade channels has further amplified their reach.

Innovation is the Spice of Life

The snack industry is all about staying ahead of the curve, and Bikaji excels at this. By
constantly introducing new and exciting products, they're ensuring there's always something to
tempt your taste buds. Their commitment to innovation keeps them at the forefront of the
market.

Building a Strong Foundation

A robust supply chain is the backbone of any successful FMCG company. Bikaji's strategic
investments in manufacturing facilities, coupled with efficient distribution networks, ensure
their products reach consumers fresh and on time. Leveraging government initiatives like the
PLI scheme has been a smart move to optimize costs and boost competitiveness.

48
 6. Sustainability and Ethical Practices

A Strong Foundation in Safety and Environment

Bikaji demonstrates a clear commitment to prioritizing health, safety, and environmental
responsibility. The company has implemented robust safety protocols across its operations,
including stringent measures during the pandemic. This focus on employee well-being and risk
mitigation is commendable.
Additionally, Bikaji's awareness of its environmental impact is evident in its mention of
effluent treatment processes and efforts to minimize pollution. This indicates a proactive
approach to sustainability.

Packaging Innovation: A Catalyst for Growth

Bikaji's packaging innovation story is a testament to the company's ability to adapt and
improve. The transition from jute sacks to multi-layered pouches showcases a clear
understanding of consumer needs and market dynamics. This shift not only enhanced product
preservation but also elevated the brand image.
Key points from the text:
 Safety and Health: Bikaji prioritizes employee safety and adheres to regulatory
standards.
 Environmental Responsibility: The company is mindful of its environmental impact
and has implemented measures to mitigate it.
 Packaging Innovation: Bikaji's packaging evolution demonstrates a customer-centric
approach and contributes to brand building.

Figure 17 Packaging Innovation

49
 7.Consumer Retention Strategies

7.1 Techniques for Enhancing Customer Loyalty

Techniques for Enhancing Customer Loyalty at Bikaji

Bikaji has implemented several techniques to enhance customer loyalty. According to their
official website, they have introduced loyalty programs that reward customers for repeat
purchases. These programs often include discounts, special offers, and exclusive access to
new products, which incentivize customers to continue choosing Bikaji products.

Additionally, Bikaji emphasizes personalized marketing by using data analytics to understand

consumer preferences and tailor their communication accordingly. This targeted approach
helps in creating a more engaging and relevant experience for the customers.

Furthermore, Bikaji actively engages with its customers on social media platforms. They
create interactive and appealing content that resonates with their audience, fostering a strong
sense of community and brand loyalty. Customer feedback is highly valued, and Bikaji
ensures that any concerns or suggestions are addressed promptly, which further strengthens
customer trust and satisfaction.

Bikaji's approach to customer loyalty is comprehensive, combining rewards, personalized

communication, and active engagement to build lasting relationships with their customers.
This multifaceted strategy helps in retaining customers and encouraging repeat purchases,
which is crucial for sustained business growth.

Figure 18 Customer Loyality Program Participation Over the Years

50
7.2 Role of Product Quality and Innovation

Bikaji: Quality and Innovation as Cornerstones

Bikaji has established itself as a leader in the snack food industry through its unwavering
commitment to product quality and innovation. The company employs stringent quality control
measures, using premium ingredients and advanced manufacturing processes to deliver
consistently exceptional products. This dedication to quality has fostered strong consumer trust
and loyalty.

Innovation is another key driver of Bikaji's success. The company consistently introduces new
and exciting products that cater to evolving consumer preferences. By blending traditional
flavors with modern tastes, Bikaji appeals to a wide audience and maintains a strong market
position.

Figure 19 Product Quality ratings

Figure 20New product launches over the years

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7.3 Leveraging Technology for Customer Engagement

Bikaji's Tech-Driven Customer Engagement

Bikaji has effectively integrated technology into its customer engagement strategy. The
company maintains a strong online presence through a user-friendly website and mobile app,
offering personalized product recommendations to enhance the shopping experience.

Social media platforms serve as crucial channels for interacting with customers, sharing
product updates, and gathering valuable feedback. By leveraging CRM systems and AI-driven
chatbots, Bikaji ensures efficient management of customer interactions and provides timely,
personalized support.

Figure 21 Customer Engagement across Digital Platforms

Figure 22 Growth in e comm Sales over the years

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Response to Changing Consumer Behaviors

The COVID-19 pandemic drastically transformed consumer habits, with a pronounced shift
towards convenience and hygiene. Bikaji Foods International Ltd. successfully navigated these
challenges by implementing strategic adjustments to its operations.

A key response was the company's accelerated adoption of e-commerce. Recognizing the surge
in online shopping, Bikaji significantly expanded its digital presence, tripling e-commerce
revenue compared to the pre-pandemic period. This strategic move enabled the company to
cater to consumers' growing preference for contactless shopping.

Simultaneously, Bikaji addressed the heightened emphasis on hygiene by prioritizing factory-

packaged snacks over loose, hand-weighed options. This alignment with consumers' health
concerns contributed to the company's growth as it met the increasing demand for safe and
clean products.

To further meet evolving consumer needs, Bikaji enriched its product portfolio. The
introduction of new offerings in segments like Funkeen, Café, and Rebranded Cookies
demonstrated the company's agility in responding to market trends. By diversifying its product
range and catering to different consumer preferences, Bikaji effectively expanded its customer
base.

Overall, Bikaji's ability to adapt to changing consumer behaviours through strategic shifts in e-
commerce, product offerings, and packaging allowed the company to not only retain existing
customers but also attract new ones. This responsiveness to market dynamics highlights Bikaji's
resilience and commitment to fulfilling consumer demands in the post-pandemic landscape.

53
 8. Findings and analysis

8.1 Data Analysis

Demographic Insights:

The survey reveals that the majority of respondents are in the 20-25 age range, making them
the primary consumer demographic for Bikaji products. A smaller portion of participants are
aged 15-20 and 25 years or older.

Buying Frequency:

Regular Buyers: A substantial number of respondents purchase Bikaji products weekly or

monthly, indicating a high level of brand loyalty among these consumers.

Occasional Buyers: There is a noticeable group of respondents who buy products rarely or on
a quarterly basis, suggesting opportunities to increase their purchase frequency.

Preferred Products:

Bhujia stands out as the most favoured product among respondents, followed by Namkeen and
Sweets. Bhujia's popularity can be leveraged in promotional campaigns.

Customer Satisfaction Levels:

Most respondents express satisfaction or high satisfaction with the quality of Bikaji products.
However, some responses are neutral, pointing to potential areas for quality improvement.

Likelihood of Recommendation:

A majority of respondents are likely or very likely to recommend Bikaji products to others,
indicating strong potential for positive word-of-mouth marketing. However, a small segment
is neutral or unlikely to recommend, signalling areas for possible enhancement.

Trial of New Products:

A significant number of respondents have tried new Bikaji products within the past 6 months,
showing that the company’s new offerings are successfully reaching their target audience.

54
Purchase Motivators:

Brand Trust and Taste are the leading factors driving regular purchases, followed by Price
and Availability. These should be key focus areas in both marketing and product development
strategies.

Shopping Habits:

The majority of respondents purchase Bikaji products in-store, though some use a mix of in-
store and online methods. This indicates the importance of a strong retail presence while also
emphasizing the need to enhance online shopping options.

Factors for Continued Purchase:

Enhanced Product Quality, New Product Launches, and Discounts and Promotions are
the top incentives that would encourage respondents to continue buying Bikaji products. This
highlights the importance of ongoing product innovation and competitive pricing.

Problem Resolution Experience:

Most respondents have never encountered an issue with Bikaji products, reflecting well on the
brand’s quality control. For those who did experience an issue, most were satisfied with the
resolution.

Future Purchase Intentions:

A large portion of respondents indicate they are likely or very likely to continue purchasing
Bikaji products in the next 6 months, suggesting strong future demand. However, a few neutral
responses highlight the need to focus on retaining certain customer segments.

Strategic Recommendations:

Focused Marketing: Target the 20-25 age demographic by emphasizing the popularity of
Bhujia and building on the brand's trust and taste appeal.

Product Development: Keep innovating with new product launches and enhance product
quality to meet and exceed customer expectations.

Sales Channel Optimization: Maintain a strong presence in retail stores while expanding
and optimizing online sales channels to cater to diverse shopping preferences.

55
 9. Recommendations and Conclusion

9.1 Recommendations

To enhance customer retention and market presence, Bikaji should focus on building a
strong community around the brand. Active engagement on social media, where customers
are encouraged to share experiences, recipes, and feedback, can foster loyalty. Highlighting
customer stories in marketing materials can deepen this connection. Additionally,
introducing a premium product line with exclusive ingredients and packaging will help
target the high-end market segment, attracting consumers who seek high-quality products.

Launching snack subscription boxes can maintain consistent customer engagement by

offering a curated selection of snacks delivered monthly. Enhancing the online shopping
experience with a user-friendly website and mobile app will complement these efforts,
ensuring easy navigation, secure transactions, and prompt delivery. This will create a
seamless experience that encourages repeat business.

Adopting an omnichannel strategy, integrating both online and offline sales channels, will
enable Bikaji to reach a broader audience. Haldiram’s success in blending online sales with
traditional retail, such as through platforms like Amazon and Flipkart, offers a valuable
example. This approach can help Bikaji cater to the growing trend of online shopping while
maintaining a strong presence in traditional markets.7

Strengthening relationships with distributors is crucial for smooth operations and product
availability. Bikaji can achieve this by providing regular support and communication,
similar to Frito-Lay’s approach. Frito-Lay’s success in maintaining market leadership
through strong distributor relationships highlights the importance of collaboration. By
adopting a similar strategy, Bikaji can ensure its products are consistently available,
enhancing customer satisfaction.

Engaging with local communities through sponsorships of cultural events, festivals, and
food fairs can further boost brand visibility and loyalty. Expanding digital promotions with
engaging social media campaigns that reflect Bikaji’s values will resonate with consumers,
strengthening the brand’s connection with its audience. Additionally, enhancing the user

7
Munshi, S. (2024, May 27). The business of Bikaji Foods. FinShiksha. https://finshiksha.com/the-business-of-
bikaji-foods/

56
experience on Bikaji’s website and app is crucial. A more intuitive and visually appealing
platform will improve customer satisfaction and encourage repeat visits.

Bikaji can also expand its product range with seasonal offerings, such as Diwali sweets or
regional specialties, and introduce health-conscious options like low-sugar or organic
snacks. Eco-friendly packaging and attractive designs can further differentiate Bikaji from
competitors. Collaborating with food influencers can help reach new audiences and build
brand credibility.

Transparency is key to building trust with consumers. By openly sharing ingredient details
and production processes, Bikaji can position itself as a brand committed to honesty and
quality. Continuous improvement, driven by customer feedback, will refine products and
enhance overall customer experiences. Beyond traditional loyalty programs, Bikaji can
foster a sense of community by offering exclusive content, behind-the-scenes insights, and
early product access, making customers feel valued. Aligning with social causes that
resonate with the target audience will further strengthen brand loyalty and enhance Bikaji’s
reputation for social responsibility.

9.2 Conclusion

In conclusion, Bikaji can reinforce its position as a leading brand in the Indian snack
industry by implementing these recommendations. Building a strong brand community,
launching a premium product line, and improving customer experiences across online and
offline channels will drive customer retention and loyalty. Strengthening distributor
relationships, expanding product offerings, and enhancing transparency will further bolster
Bikaji’s market presence. These strategies will ensure long-term success, customer loyalty,
and sustained business growth in both domestic and international markets.

57
 References

Introduction

https://www.jsrtjournal.com

https://www.bikaji.com/about-us

Company Overview

Industrial analysis

https://www.pocketful.in/blog/bikaji-foods-case-study/

https://www.bikaji.com/pub/media/IR-Savouries-Sweets-Papad-India.pdf

Ref: https://www.pocketful.in/blog/bikaji-foods-case-study/

Data Collection and Results

https://www.bikaji.com/pub/media/Bikaji-Annual-Report-2022-23.pdf

Evolution and Expansion of Bikaji

https://www.bikaji.com/pub/media/Bikaji-Annual-Report-2022-23.pdf

Sustainability and Ethical Practices

Consumer Retention Strategies

Source: Bikaji Foods International Ltd. Annual Report 2020-21, page 15

Source: Bikaji Foods International Ltd. Annual Report 2020-21, page 14

Source: Bikaji Foods International Ltd. Annual Report 2020-21, page 16

Findings and Analysis

Recommendations

https://finshiksha.com/the-business-of-bikaji-foods/

58
 Glossary

 CAGR (Compound Annual Growth Rate): A metric used to describe the mean
annual growth rate of an investment or industry over a specified period longer than one
year, expressed as a percentage.
 Disposable Income: The amount of money individuals or households have available
for spending and saving after income taxes have been deducted.
 Direct Distribution: Selling products directly to consumers or major retailers without
intermediaries.
 Economies of Scale: Cost advantages gained by increasing production, where the cost
per unit decreases as the volume of production rises due to spreading fixed costs and
improving operational efficiency.
 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A
measure of a company's overall financial performance. It is used to evaluate a
company's profitability before accounting for interest, taxes, and non-cash expenses
like depreciation and amortization.
 EPS (Earnings Per Share): A financial metric that indicates the portion of a
company’s profit allocated to each outstanding share of common stock. It is calculated
by dividing net income by the number of outstanding shares.
 ERP (Enterprise Resource Planning): Integrated management of core business
processes, often facilitated by software, to streamline operations and improve
efficiency.
 Geographical Indication (GI) Tag: A certification that identifies a product as
originating from a specific place, where the quality or reputation is linked to that
geographical origin.
 Gross Margin: The difference between revenue and cost of goods sold (COGS),
divided by revenue. It shows the percentage of revenue that exceeds the COGS,
reflecting the efficiency of production.
 Indirect Distribution: Selling products through intermediaries, such as wholesalers,
super stockists, or distributors, who then reach smaller retail outlets.
 Net Profit Margin: The percentage of revenue remaining after all expenses, including
taxes and interest, have been deducted from total revenue. It indicates the overall
profitability of the company.

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 Operating Margin: The percentage of revenue left after subtracting operating
expenses, excluding interest and taxes. It measures the efficiency of a company’s core
business operations.
 PLI Scheme (Production Linked Incentive Scheme): A government scheme
designed to boost production by providing financial incentives to manufacturers based
on their production performance.
 Points of Differentiation (PODs): Attributes or benefits that set a brand or product
apart from its competitors, offering unique advantages or features that appeal to
consumers.
 Points of Parity (POPs): Attributes or benefits that a brand shares with its competitors,
ensuring that it meets industry standards and customer expectations. POPs are essential
for a product to be considered a viable option in the market.
 Revenue CAGR (Compound Annual Growth Rate): The annual growth rate of
revenue over a specified period, expressed as a percentage.
 Search Engine Marketing (SEM): Online marketing strategy to increase a website’s
visibility on search engine results pages through paid ads.

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 Contribution

This report is the result of a collaborative effort from all team members. Each person
contributed uniquely to ensure a comprehensive analysis of Bikaji's consumer retention
strategies.

Aastha

Aastha played a pivotal role in the report by contributing to the introduction of the industry and
company and conducting detailed and comprehensive industrial analysis. She took over the the
glossary and abbreviations part, enhanced the document through meticulous editing, and
generated creative ideas. She diligently helped proofread the document, provided
comprehensive and strategic recommendations, and used citations in her part, wherever
required to ensure the report's credibility and accuracy. Additionally, she designed both the
cover and the journey slide for the PowerPoint presentation.

Aditya
Aditya expertly managed the overall workflow of the project, ensuring that deadlines were
consistently met and that all team members remained aligned with their tasks. His contributions
were crucial in specifying the consumer retention strategies for Bikaji, which were central to
the objectives of our report. Additionally, Aditya played a key role in editing, compiling, and
proofreading the report and the Power Point presentation, ensuring its clarity and coherence.
His efforts were instrumental in shaping the conclusion and enhancing the overall quality of
the document.

Akansha
Akansha played a critical role in the development of the report by providing a thorough and
comprehensive overview of the company. Her contributions extended to assisting in project
management, where she ensured smooth coordination and progress. Akansha was instrumental
in proofreading, meticulously reviewing the document to enhance its clarity and accuracy.
Additionally, she contributed to the formulation of the executive summary and the development
of strategic recommendations, ensuring that the final report was both insightful and actionable.
She also created the the introduction and vision, mission slide for the PowerPoint presentation.

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Akshansh
Akshansh played a crucial role with a particular focus on developing growth and expansion
strategies and also in shaping the recommendations for the report. In addition to his strategic
contributions, Akshansh was actively involved in the editing and compilation of the report and
presentation. His meticulous attention to detail ensured that the final document was coherent,
well-organized, and presented in a professional manner.

Abhijeet
Abhijeet handled the data analysis and findings to complete our study on consumer behavior
and how Bikaji is implementing a consumer retention approach based on customer data. He
also contributed to the development of recommendations, playing a crucial role in the report’s
content and presentation data collection. Additionally, he circulated the Google form, gathered
public opinions, and conducted the analysis, which significantly enriched the overall insights.

Abhishek
Abhishek focused on evaluation and expansion of Bikaji's, along with particular attention to
sustainability and ethical practices. Additionally, Abhishek was responsible for designing and
developing the questionnaire used in the report. This tool was instrumental in gathering the
necessary data, providing valuable insights that informed the report's findings and
recommendations. Moreover, Abhishek played a pivotal role in the creation and editing of the
PowerPoint presentation, handling the majority of its preparation.

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