CHAPTER-1

INTRODUCTION

Haldiram's is a major Indian sweets and snacks manufacturer based in Nagpur, Maharashtra, India. The company has manufacturing plants in Nagpur, New Delhi, Kolkata, and Bikaner. Haldiram's has its own retail chain stores and a range of restaurants in Nagpur and Delhi. In contemporary times, Haldiram's products are exported to several countries worldwide, including Sri Lanka, United Kingdom, United States, Canada, United Arab Emirates, Australia, New Zealand, Japan, Thailand and others The compilation of data collected under the topics that were covered in the course Production Plan and Control is the final section of this report. I would like to express my gratitude to the HALDIRAM’S for providing the opportunity and valuable inputs that led to completion of this project.

Background Haldiram's has its roots established in 1937 in the form of a small retail Sweet & Namkeen shop in Bikaner, Rajasthan, a small but significant town in the Thar Desert. Shri Shivkisan Agrawal, the founder of Haldiram's always cherished the dream of building an empire, manufacture traditional sweets/namkeens, leave a mark on every occasion and get close to the heart of the common man. Haldiram’s offers a wide range of products to its customers. The product range includes namkeens, sweets sharbats, bakery items, dairy products, chips, pappad and ice creams. However namkeens remain the main area of focus for the group as it contributes close to 60% of its total revenues. By specializing in the manufacturing in the Namkeen market the company has created a niche market. The raw materials used to prepare namkeens are of best of quality and are sourced from all over India. The food industry in India is forever changing to suit their consumers’ palate, preference and pocket. All the players in the industry thus, have to constantly adapt to the ever-changing trends and invent and re-invent themselves to stay in the league. Haldiram’s competes on the basis of numerous factors including brand recognition due to distinct packaging, product quality, traditional taste and authentic Indian flavor.

Chapter -3

COMPANY OVERVIEW

In 1937, Ganga Bishen Agarwal, (popularly known as Haldiram), opened a small sweet shop in Bikaner, a small district in Rajasthan. Bikaner had a large number of sweet shops selling sweets as well as namkeens. 'Bhujia sev,' a salty snack prepared by Ganga Bishen, was very popular among the residents of Bikaner and was also purchased by tourists coming to Bikaner. In 1941, the name 'Haldiram's Bhujiawala' was used for the first time.

In 1950, Prabhu Shankar Agarwal (Prabhu), along with his father Rameshwar Lal Agarwal (sonof Ganga Bishen), expanded the business by establishing a small manufacturing unit for sweetsand namkeens in Kolkata. The success of this unit motivated Prabhu to upgrade its machinery to improve the quality of its products.

As demand for Haldiram's products increased, it was decided to scale up the company's manufacturing and distribution activities. In 1970, a large manufacturing unit was set up in Nagpur in the state of Maharashtra (India). In 1983, a retail outlet was set up in New Delhi. The outlet became very popular not only among the Delhi but also among tourists visiting Delhi. Haldiram's was able to achieve significant growth during the 1980s and 1990s. In 1992, a manufacturing unit with a retail outlet attached to it was set up in the outskirts of Delhi. A year later, Haldiram's syrups and crushes were successfully launched in the Indian market. In 1995, a restaurant was opened in New Delhi. In 1997, realizing the potential of namkeens, the company set up a manufacturing unit in Delhi exclusively for making namkeens. To add potato products to its existing product portfolio, machinery was imported from the US. Haldiram's maintained high quality standards at every stage of the production process. All its food items were prepared and packaged in a very hygienic environment.

In the mid-1990s, Haldiram’s added bakery items, dairy products, sharbats and ice creams to its portfolio. At the beginning of the 21st century, Haldiram's products reached millions of consumers not only in India, but also in several other countries, including the US, Canada, UK, UAE, Australia, New Zealand, Sri Lanka, Nepal, Japan and Thailand. An article posted on the APEDA's website - apeda.com quoted some of the company's strengths, "To sustain in the competitive Market, Haldiram's has endeavored stress on its product quality, packaging, shelf life, competitive price with a special emphasis on consumers satisfaction and its lingering taste is amongst the best available in the world."

Chapter -4

MARKETING STRATEGIES

Products

Haldiram's has over 100 products. Its products include frozen foods such as frozen meals, ice cream, and kulfi, namkeen, sweets, cookies, crackers, sherbet, papad, savories, chips and other snacks. Haldiram's also produces fruit-flavored beverages and dairy products. The company also produces ready-to-eat food since 2010. In the 1990s, the production potato-based food was enabled by the importation of machinery from the United States designed for these purposes. Haldiram's products are marketed at various retail locations such as bakeries and confectionery stores, among others, and also on various commercial websites. The pricing of the company's products is typically inexpensive compared to similar products made by other companies. Prior and up to August 2003 in the United States market, the company's products were limited to potato chips. The company's products are carried by some Indian supermarkets in the U.S. In the U.S., Haldiram’s products are popular with South Asian countries and America as well.

PRICEHaldiram's offered its products at competitive prices in order to penetrate the huge unorganized market of namkeens and sweets. The company's pricing strategy took into consideration the price conscious nature of consumers in India. Haldiram's launched namkeens in 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.

Pack Weight Price (In Rs)30 gms 585 gms 10

180-250 gms 18-35400-500 gms 40-70

1 kg 95-200

The prices also varied on the basis of the type of namkeens and the raw materials used to manufacture it. The cost of metallized packing also had an impact on the price, especially in the case of snack foods. The company revised the prices of its products upwards only when there was a steep increase in the raw material costs or additional taxes were imposed.

Place The Haldiram’s products are distributed all over the country and outside country also.

Haldiram’s is successfully exporting its products to many foreign countries Haldiram’s has developed a strong distribution network to ensure the widest possible reach for its products in India as well as overseas. From the manufacturing unit, the company’s finished goods are passed on to the carrying & forward (C&F) agent. C&F agents pass on the products to distributors, who ship them to retail outlets. While the Delhi unit of Haldiram’s has 25 C&F agents and 700 distributors in India, the Nagpur unit has 25 C&F agents and 375 distributors. Haldiram’s also has 35 sole distributors in the international market. The Delhi and Nagpur units together cater to 0.6 million retail outlets in India.

Factory Carrying and Forwarding Agents C&F Distributers Retail Outlets Consumers

C&F agents receive a commission of around 5% while distributors earn margins ranging from 8% to 10%. The retail outlets earn margins from 14% to 30%. At retail outlet level, margins vary according to the weight of packs sold. Retailers earn more margins ranging from 25% to 30% by selling 30gms pouches (priced at Rs.5) compared to the packs of higher weights.

Apart from the exclusive showrooms owned by Haldiram’s, the company offers its products through retail outlets such as supermarkets, sweet shops, provision stores, bakeries and ice-cream parlors. The products are also available in public places such as railway stations and bus stations that account for a sizeable amount of its sales.

Haldiram’s products enjoy phenomenal goodwill and stockiest compete with each other to stock its products. Moreover sweet shops and bakeries stock Haldiram’s products despite the fact that the company’s products compete with their own products.

Distribution channel structure

Within Delhi

Outside of Delhi

Factory

facory

distributor

C&F Agent

consumer

retailor

distributor

Selection of Channel members

Channels members are selected if the following facilities are available: -

· Warehouse Facilities

· Experience sale persons.

· Van, truck, three-wheelers for transportation.· Registered office.· Proper computer facility for maintaining accounts.

· Financially strong

Order processing

· Sales persons of C&F agents and distributors go to the retailers of their areas and bring the order daily. After that they give order in the Corporate Office of Haldiram’s in Mathura road to the general manager. From corporate office general manager gives order in the factory. (Nodia/Gurgaon/Mathura Road)

· As the order is ready to deliver and on confirming from the corporate office, the goods are delivered in the trucks.

· Orders within Delhi and the places near Delhi (like Meerut) are delivered within 24 hours.

retailor

Consumer

· Orders outside Delhi are delivered according to the distance. It takes from 24hours to 72 hours.

· Every distributor and C&F agent has a fixed day in a week to give an order.

· Haldiram’s has its own warehouse, which is managed by its own staff.

PROMOTION

Haldiram’s product promotion had been low key until competition intensified in thesnack foods market. The company tied with ‘Profile Advertising’ for promoting itsproducts. Attractive posters, brochures and mailers are designed to enhance thevisibility of the Haldiram’s brand.

o Different varieties of posters are designed to appeal to the masses. The punch line for Haldiram’s products was ‘Always in good taste’. Advertising depicting the entire range of Haldiram’s sweets and namkeens were published in the print Media (magazines and newspapers). These advertisements had captions such as ‘millions of tongues can’t go wrong’, ‘what are you waiting for, Diwali??’ and ‘Keeping your taste buds on their toes’.

o To increase the visibility of the Haldiram’s brand, the company has placed its hoardings in high traffic areas such as train stations and bus stations. Posters are designed for display on public transport vehicles such as buses and hoardings.

o Captions are developed that focus on individual products such as ‘yeh corn hai’ (this is corn), ‘chota samosa – big mazaa’ (small samosa- big entertainment) ‘yeh kashmiri mix khoob jamega’ and ‘oozing with taste’ (for Rasgoolas) promoted individual products .

o Special brochures are designed for those customers who want to know more about Haldiram’s products. The brochures describe the products and give information about the ingredients used to make those products. Mailers are also sent to loyal customers and important corporate clients as a token of appreciation for their patronage.

Advertising Strategy

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

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

b) Verbal (Copy Style)Initial advertising of the brand contained long copy but this phenomenon has recentlychanged as the company is now going in for a very precise and clear form ofCommunication in an informal manner.

c) AttitudinalHaldiram’s advertisements are not attitudinal in nature but are rather formal andmature. This trend is steadily converting into a more informal, relaxed and ‘hinglish’style.

CHEPTER - 5

COMPETITION ANALYSIS

Introduction

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

The major objectives of this comparison are to:

o Analyse Haldiram’s competition (in Namkeens Segment) from an industry and marketing point of view

o Study the designing of competitive strategies

Competitors of Haldiram’s (in Namkeen Segment)

The following are the major competitors of Haldiram’s:· Frito Lays

· Bikano

· MTR

· Unorganized Sector

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

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

Brand Bikano, Frito Lays, MTR, Lehar, Unorganized Sector

Industry Differentiated OligopolyForm Traditional snacks like Samosa,

Kachori, etc.,Burgers, Pizzas, Salty Biscuits, Bakery Items

Generic Any product competing for the same of amount consumer dollars

A. Brand CompetitionBrand Competition includes other companies offering similar products and services to the same customers at similar prices. Here, the brand competition would be all thecompanies selling Namkeens along the same lines as Haldiram’s. Because of thisbrands like Bikano, Frito Lays, etc… and the unorganized sector are considered asbrand competitors.B. Industry Competition:The namkeens industry is essentially made up of a few players producing the sameproduct partially differentiated along the lines of quality, styling and services. Thismeans that the namkeens industry follows the pattern of ‘Differentiated Oligopoly’.

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

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

CHEPTER - 6

QUALITY POLICY

We at HALDIRAM FOODS INTERNATIONAL PRIVATE LTD. are committed to manufacture & Supply a variety of Sweets (Sweetmeats), Namkeens (Savories), Papad, Pasta, 2D & 3-D Snacks (Extruded Foods), baked products, Milk & Milk Products, Frozen Foods to the complete satisfaction of our domestic & International Customers with regards to quality & food safety. We shall strive to provide world class quality products by

• Utilizing hygienic, Safe & premium quality ingredients & materials. • Adhering to good manufacturing & hygienic practices.

We are committed to continually improve all our activities to enhance customer satisfaction, organizational performance and market leadership. We shall comply with statutory, regulatory requirements and all our actions would be planned and executed to fulfill this policy consistently through the dedicated involvement of all employees.

CHAPTER – 7

RESEARCH METHODOLOGY

The study is an exercise involving estimation of parameters as regard toOrganizational requirements- Research was designed so as to get the relevantInformation that can be used for various organizational purposes.

DATA SOURCE: Research included collecting both primary and secondary data.

PRIMARY DATA- is the first hand data, new data gathered to help solve theproblem at hand. Data is collected personally for the specific project through research. Questionnaire was prepared to gather information on the company marketing and services.

SECONDARY DATA- is the second data collected by someone else withis gathered through internet, publications, articles, company books, etc.

This chat show the respond of the customer towards the package food itams of in odisha

32

68

CONSUMPTION OF BRANDED PACKAGE FOOD PRODUCTS

YESNO

Generally backward states like odisha people are not very much aware about quality, so they didn’t consume branded package foods. Maximum people of odisha are dependent on local cheaper food items, so that tis graph show negative response by maximum people.

This graph shows the brand preference of different people as their requirement.

HALDIRAM

LAYS

LEHER BIKANER

MTR

LOCAL PRODUCTS

0 10 20 30 40 50 60

28

8

1

4

56

BRAND PREFERENCE

Series1

As we all know that in odisha maximum people are prefer local food products, this chat show it again. Whatever people consumption the branded products out of that 28% people consumption the products of Haldiram’s because this is a traditional food product ion org, generally during the festivals season party or any marriage celebration people

choose it. As far as other brand is concern lays is very much famous among people, elders are not refer this brand, and due to lake of knowledge and market coverage other brands show the negative response.

This graph again show the response of the products of Haldiram’s among the people of odisha.

YES NO0

102030405060708090

28

82

CONSUMPTION OF HALDIRAM'S PRODUCTS

This graph shows the mode of collecting information by the customer about the products of Haldiram’s.

9

28

35

22

6

SOURCE OF INFORMATION ABOUT PRODUCTS

FRIENDSNEIGHBOURSFAMALYRELATIVESADS

As we know maximum people consume the products of Haldiram’s during the festivals of any functions so that maximum people find the information during that period, might be by any discussion. Because in Indian tradition functions are the occasions where all people meet their relative’s family and friends. Due to lake of advertisement by the

company in this kind of area less people give positive response towards this mode.

This graph shows the quality rate of the products of Haldiram’s by the opinion of the respondents.

SIGNIFICANT BETTER

BETTER WORSE SIGNIFICANT WORSE

05

101520253035404550

16

48

1125

QUALITY RATE OF HALDIRAM PRODUCTS

In this graph maximum people provide positive response about the products as BETTER, WHICH IS 48%. Because haldiram’s products are branded and healthy. According to 16% people products are significant better. But 11 % people give their opinion as WORSE, which is shows their lake of brand awareness.

This graph shows the response of people about the price structure of the products of haldiram’s.

HIGH VERY HIGH LOW VERY LOW RESONABLE05

1015202530354045

25

12 14

8

41

PRICE CONSIOUSNESS ABOUT THE PRODUCTS

Series1

Out of all the respondents 41% people say that the price is RESONABLE, it means they are adjusting with the price structure of the products of haldiram’s. And 25 % people say that the price is HIGH.

In this graph the we can show the factors which influence the customers to purchase the products of haldiram’s.

BRAND NAME

PACKAGING

QUALITY

PRICE

TREDITIONAL FACTORS

GIFT PACKAGES

0 5 10 15 20 25 30

26

12

16

14

21

11

FACTOR EFFECTING TO PURCHASE

Out of all 26% people purchase the products due to the brand name of the org, and 21% people purchase due to the traditional factors relating to the organisation. 16% and 11% people purchase due to the quality and the gift package provided by the org with the products.

This graph shows the overall opinion of the people by the products of the haldiram’s

VERY GOOD

GOOD

WORSE

VERY WORSE

AVERAGE

0 5 10 15 20 25 30 35 40

15

38

8

12

27

overall opinnion about the products of haldiram's

Series1

Out of all respondents 38% people says that products are good as compare to other brands. According to 15% the products are average and 15% people says their opinion in the favour of very good.

Chapter – 8

STATISTICAL TOOLS

Statistical Tool: The tool for obtaining the information was questionnaire. A structured questionnaire was administered. The questionnaire was designed in the view both major and minor objective of study.

LIMITATIONS1. The sample was collected using sampling techniques. As such result may not givean exact representation of the population.2. Most of the data being secondary can be biased towards the company.3. Shortage of time is also a reason for incomprehensiveness.4. Most of the information was taken from secondary sources being based onPreviously printed data

CHAPTER – 9

FINDINGS AND SUGESSION

FINDINGSThe rapid positive change in Indian demography; increased disposable income;

increased concerns over Post Harvest Losses; encouraging steps taken by the Indiangovernment to provide the technological know-how, infrastructure, tax exemptions,export and import regulations.

• Each player is competing with the other to capture larger market share.

• With plenty of modular interconnected options available in the market, the consumer

hardly has few choices. This means there is intense competition in the market.

• Many packaged food companies gets the product outsourced, which delays thedelivery time.

• Delivery time and design of the products ordered have a significant effect in generating demand for the product.

Suggestions Haldiram’s should make more advertisement in odisha or east

region of India.

They should supply good quality products in cheaper price to this area.

They should target the middle class people to coverage more market in less period of time.

CHAPTER - 10

BIBLIOGRAPHY

BIBLIOGRAPHYBook Material

· Marketing Management by Philip Kotlers· Marketing Management by T.N Chaabra & S.K Grover· Sales & Distribution Management by Tapan K Panda & Sunil

Sahadev· Research Methodology by C.R Kothari & Gourav Garg

Company Visits

Mr. K K Goyal (Sales Manager)Corporate OfficeHaldirams Marketing Pvt. Ltd.B-1/H-8,Mohan Co-Operative Ind. Estate,Mathura Road, New Delhi-4

Websites:

· www.Indianfoodindustry.net· www.haldirams.com· www.haldiramsusa.com· www.bikaji.com· www.samratnamkeen.com· Times news Network (www.economictimes.indiatimes.com)

CHAPTER – 11

QUESTIONNAIRE

QUESTIONNAIRE

Q1. What age profile do you belong to? 15-20 21-24 31-40 41-50 More than 50

Q2. Do you consume Haldiram’s products? Yes No

Q3. What is your brand preference for namkeens? Haldirams Lays 0 Lehar Bikaner MTR Others

Q4. Do you prefer local snacks? Yes No

Q5. Since when have you been consuming Haldiram’s Products? Less than 6 months 6 month – 1year 1-3 years Greater than 3 years

Q6. How would you rate the quality of Haldiram over the period of use? significantly better Better Natural Worse significantly worseQ7. What factors motivated you to buy Haldiram’s products? Friends Neighbours Relatives Family Ads

Q8. Which of these factors influence your buying bahaviour of namkeens? Packaging Quality Price. Brand name

Q9. How would you rate the following factors in order of your preference? Variety Food taste and quality Nutritional value Hygiene Packaging Q10. How you find Haldiram’s price ? High Very high Very low Low Reasonable

Q11. Would you buy Haldiram’s products for their Packaging Variety Price Quality Hygiene Taste

Q12. How would you rate the Haldiram’s namkeens for their nutritional value? Minimal Adequate Healthy

Q13. Do you buy Haldiram’s gift packages? Yes No

Q14 what is your overall experience on the products of haldiram

Very good good average

worse very worse