haldi-ram (case study)

Haldiram’sGetting the Four Ps Right

Muhammad Khizar Roll no 5888

Vision,Mission,Goal

Background of Haldiam’s

Starts from time of British in India in 1937Northern India City of BikanerBikaner is the land of Rajputs-RajasthanAggarwal family established a sweet shopIn 1990s they expanded their family

businessUnits established in three citiesKolkata in East,Nagpur in West,Delhi in North

Product Range

Traditional Indian sweets & snacks Sold on special occasions like Diwali,Bhai

Dooz & Holi

Challenges

Haldiram’s informal split b/w three units they began as distinct entities After the popularization of its “Bhujia”, Aggarwal came to

use the name “Haldiram’s bhujia wala” in 1941 Decade following India’s Independence Ganga Aggarwal’s son & grandson aimed to expand their

business Calcutta manufacturing units 1970 Mumbai manufacturing units 1990 Restaurant in New Delhi 1995

Issues

How would they keep the company on a high growth trajectory?

How would the company tackle the competition frorm small unorganized players in market?

Could Haldiram’s create and sustain a clear differentiator, that marked it different from these players ?

MUHAMMAD AHMADROLL NO 5891

products

In summer fruit flavored cold drinks and sharbats During festivals season demand for sweets was high Add bakery items and dairy products Wide product range (30 varieties of “namkeens”(salty

snacks) from one manufacturing unit alone!), customized for local tastes

First Indian company to brand namkeensHigh quality and hygiene standards

Outside the borders

Haldiram enter in international market year 2000

export increase from $ 1.7 million to $ 6 million from year 2001 to till today

Opening f restaurant in abroad Available in USA New Zealand srilanka

Nepal Canada Uk UAE Australia Thailand Japan

list of product

Traditional rang of nimkoVarious kind of sweets Bakery itemsDairy productsPapdIce cream

list of product

Profitability

Namkeen 60% Sweets 30% Others 10%

pricing

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 5different packs with prices varying according to their weights

pricing

The prices also vary on the basis of the type of namkeens and the raw materials used to manufacture it. The cost of  metalized 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 asteep increase in the raw material costs or if additional taxes are imposed

pricing Package weight price

30 gm 5

85 gm 10

180 – 250 gm 18 - 25

400 – 500 gm 40 - 70

1 kg 95 - 200

pricing

Osama usfian Roll no 5922

place

Robust distribution networkAttractive policy to encorage distributors and

retailersRetail outletsStrengthen its distribution through internet

promotion

Promotion is all about communication.

Punch line

“Always in Good TastE”Print MediaHoardingsBroachers

promotion

Rana usman rasheed

Packaging

• packaging is an important aspect of Haldiram’s product promotion. Since namkeens are impulse purchase items, attractive packaging in different colors influences purchases. Haldiram’s uses the latest technology 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’s product is about six months.

Packaging

Posters highlighting the shelf life of its products carried the caption ‘six months on the shelf and six seconds in your mouth’.

During festival season, Haldiram’s products are sold in attractive looking special gift packs

Rana Arslan Basharat Roll no 5923

EXPANSION:

1: HALDIRAM WAS NOT the kind of company to stay content with what it head already achieved.

The restaurant at Nagpur devised an innovative strategy,

traveler passing through the Nagpur railway station in ordering food firm areas where the company stockiest are located, the customer could place an order for lunch or dinner by sending a demand draft or check to the

EXPANSION:

Likely time arrival of Nagpur ,names of the customer coaches and seat number .

The lunch or dinner as than delivered to than when the train arrived at Nagpur.

FOR FURTHER DISCUSSION:INDUSTRY continues to grow by the day,

besides the traditional namkeens and sweet Indian consumer are today gifting other items such as chocolate and flowers and on occasion should the company diversify further?

Should it start making chocolate? for examples and compete with multinational giant such as Cadbury.

Consumer are spoilt for choice e.g. Frito- lay in snacks several player such as Tropicana, dabber and minute maid in drinks, and so on.

FOR FURTHER DISCUSSION

Frito lay in particular in particular is emerging as a major challenger instead of directly competing with haldiram’s The company launched new product in the Indian market

It is also directly taking on haldirams with its nankeen range of product, which are also competitively priced, and its aloo bhujia.

the latter player is investing in its kitchen of Indians and its sun feast range

FOR FURTHER DISCUSSION:

ANOTHER CHALLENGE IS coming up in the private brand in the modern retailers, such as the future groups (that own the food bazaar chains) it is quite passable that these private launch or expand their range of product that

There are also some other irritants, publicity around lacked adequate setting ,parking facilities and like and that their customer service standard was nothing outstanding.

FOR FURTHER DISCUSSION:

Another issue is the presence of spurious products. some company claiming to be associates of the original haldiram’s of Bikaner used the company well recognized brand name in their products.

not only did this impact sales but there was also the danger that the lack of quality standard for these me too products impacted the company reputation.