22-07-2014, 11:46 AM
MARKETING STRATEGY OF HALDIRAM’S”
MARKETING STRATEGY.doc (Size: 875 KB / Downloads: 13)
INTRODUCTION
OBJECTIVES
The objective of our project is
To study the marketing strategies and brand loyalty of Haldiram’s
To study the marketing mix of Haldiram’s
To study the behaviour of the consumer with respect to attributes such as Brand Loyalty and come up with recommendations as to what all needs to be considered keeping the consumer in mind
To analyze Haldiram’s competitor and compare their strategies and come up with recommendations for any problem being faced by it.
RESEARCH METHODOLOGY
The study is an exercise involving estimation of parameters as regard to organizational requirements- Research was designed so as to get the relevant information 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 the problem 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 is the second hand data collected by someone else with is gathered through internet, publications, articles, company books, etc.
LIMITATIONS
1. The sample was collected using sampling techniques. As such result may not give an 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 reasonn for incomprehensiveness.
4. Most of the information was taken from secondary sources being based on previously printed data.
BACKGROUND
HALDIRAM – is a name associated with consumers for sweets and namkeens for the past six decades in India and abroad. It made its modest start in the beginning 1941 in Bikaner in the State of Rajas than. Today the company has diversified into snack food, sweets, syrups, biscuits and fast food. It is the leader in the Namkeens segment with a 70% of that total share in the market.
Haldiram’s is a huge brand and has diversified its activities into various industries. The one industry where it is the king right now is the “namkeens” industry. Hence the project mainly focuses on studying Haldiram’s namkeen division, though other areas have been briefly mentioned.
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 flavour.
Product
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. Haldiram’s customizes its products to suit the tastes and preferences of customers from different parts of India. It launched products, which catered to the tastes of people belonging to specific regions. For example it launched ‘Murukkus’ a south Indian Snack and Chennai Mixture’ for south Indian customers. Similarly Haldiram’s launched ‘bhelpuri’ keeping in mind customers residing in western India. The company offered certain products such as ‘Nazarana’, ‘Panchratan’ and ‘Premium’ only during the festival season in gift packs. These measures have helped Haldiram’s compete effectively in a market that is flooded with a variety of snack items in different shapes, sizes & flavors. It has also recently launched biscuits & cookies. Table 1.2 on the following page shows the list of Haldiram’s products
Introduction
A. Strengths
Haldiram’s has a large product basket for the customers to choose from. One of the biggest reasons for their namkeen segment succeeding is the continuous updation of their product range.
Their brand is associated with tradition and quality.
Their products are known among the most hygienic products available in this segment.
Their packaging is attractive and innovative which makes for easy discernment of their products on the shelves, is safe and keeps contents fresh for long.
Their production processes are semi-automated and by using state of the art technology they have been able to increase the shelf life of their products from one week to six months.
They are the undisputed market leaders in the namkeen segment.
Haldiram’s has been able to build its brand today on the basis of word of mouth publicity, which has actually taken a lot of people by surprise.
Approval by FDA-HACCP, ISO 9002 and SPA stand testimony to the emphasis that Haldiram’s lays on the high quality for its products.
Haldiram’s is aggressively trying to capture the international markets by customizing its products and packaging according to foreign tastes.
Consumer Behaviour Analysis’
Consumers have started increasing their consumption of other brand items which is evident from the fact that 29 of the 32 respondents eat Haldiram’s Namkeens while a close 21 each eat products of Lays and Lehar. However local snacks seem to be losing their hold on the consumers mainly because of their lack of stress on hygiene and quality. However, consumers seem to be very loyal towards the brand called Haldiram’s primarily because of the high priority they give to taste, quality and hygiene as is evident from the statistics mentioned above.
Another interesting finding that is that in the absence of the role of the
‘Influencer’, the roles of the ‘Decider’ and ‘User’ seem to be shared by the same person.
The consumers have given top priority to ‘Food taste and Quality’ and ‘Hygiene’. Haldiram’s needs to be appreciated for having pioneered these factors in the packaged namkeens segment. However, to retain their stronghold on existing consumers and attract new consumers, Haldiram’s needs to maintain and even improve these standards.
One aspect, however, that Haldiram’s needs to focus on is their price. 41% found it to be ‘High’. Haldiram’s needs to focus on this factor as any reduction in the price cut by it’s competitors may influence the buyer to drift towards another brand.
Overall, Haldiram’s is undoubtedly the most favored namkeen of the consumers and this is established by one of the findings whereby 91% of the total respondents actually consume Haldiram’s.
CONCLUSION
The market is clogged with dominant players such as Frito-Lay India, PepsiCo’s snack foods arm, which has almost brought in a snack-chip revolution in the country, Haldiram’s and the Delhi-based snack-food-retailer Bikanerwala Foods Pvt Ltd etc. Even the dairy major Mother Dairy has a presence in the category. With the entry of companies such as ITC and HLL into this industry, it is getting tough for companies such as Haldiram’s who till now have not paid serious attention to its branding activities.
Increased media exposure, ever increasing purchasing power of the target audience coupled with their desire to spend more on eating out due to lifestyle changes will fuel the demand for snack food items and only those companies which have a considerable share of voice and space in the market will be able to survive. Haldiram’s has the capability of meeting these demands and only requires a certain revision in its strategies to be able to do so successfully, which it already has begun to consider.