PROJECT REPORT ON “THE DISTRIBUTION CHANNEL OF HALDIRAM AND MARKET POTENTIAL AND SUGGEST STRATEGIES TO INCREASE ITS MARKET SHARE” (SUBMITTED IN PARTIAL FULFILMENT TO AWARD BACHELOR OF BUSINESS ADMINISTRATION)
INSTITUTE OF INFORMATION TECHNOLOGY AND MANAGEMENT D-29, INSTITUTIONAL AREA, JANAKPURI, NEW DELHI
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY NEW DELHI
PROJECT GUIDE: Mrs. Anamica Chopra (Mgt. Dpt.)
SUBMITTED BY: Kumar Abhishek 0371371704
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This is to certify that Distribution Chann Potential and Sugg Market Share” is a Abhishek , Roll no
ACKNOWLEDGEMENT I express my sincere gratitude to Mrs. Anamica Chopra, under whose guidance I pursued my project and without whose kind help this project would not have been possible. I would also like to express my sincere thanks to all respondents for their cooperation. I am extremely obliged and highly thankful to all those who have contributed to completion of this project in my ways.
KUMAR ABHISHEK BBA 6TH
CONTENTS
1. EXECUTIVE SUMMARY 2. INTRODUCTION ► COMPANY PROFILE 3. RESEARCH OBJECTIVE 4. RESARCH METHODOLOGY 5. PRODUCT PROFILE 6. COMPANY DISTRIBUTION CHANNELS 7. FINDINGS 8. LIMITATIONS 9. CONCLUSIONS 10. SUGGESTIONS 11.ANNEXURES ► QUESTIONNAIRE ► BIBLOGRAPHY
EXECUTIVE SUMMARY This project is on Haldiram marketing strategies and marketing mix undertaken to get in depth knowledge about namkeen industries especially Haldiram. This project has been discussed in 11 chapters In 2nd chapter I have given the introduction and company profile of the company, in the 5th chapter I have discussed the product profile, in 6th chapter I have talked about company’s distribution channels whereas in 7th , 8th , 9th , 10th , chapter I have talked about the findings, limitations, conclusions and suggestions respectively. The data is collected and is analysed under following heads: brands, price, product etc. In analysis I have discussed about current consumer behaviors. This project is concluded on the basis of analysis made and it reveals that Haldiram has great market share in namkeens and syrps especially.
INTRODUCTION COMPANY PROFILE “HALDIRAM” – a name associated with discerning consumers for sweets and namkeens for past six decades in India and abroad. It made its modest start in the beginning of way back in 1941 in Bikaner, a state of Rajasthan. The brand name HALDIRAM BHUJIYAWALA was introduced during pre-partition era – 1941, subsequently the reach was extended to eastern pert of India i.e. ,Kolkata in 1958, further consolidated to western India also at Nagpur in 1968 and from there it never looked back and ventured first major step in this direction by opening up a in Chandni Chowk in 1983, the main hub of commercial centre is in Delhi. The prime focus was to serve sweets and namkeens amongst direct consumers and the trade. Haldiram Originated in blue year 1902 at Bikaner in Rajasthan. During its earliest year it was lead by three brothers Shri Moolchand , Shri Satyanarayan and SHRI Ramesawar. Shri Moolcahnd and his four sons namely Shri Shiv Kishan, Shri Shiv Ratan, Shri Manohar Lalan and Shri Madhusudan diversified into different territories of India. Encouraged by tremendous response of consumers, ‘HALDIRAM’ decided to go for up-gradation on technology, packin, production etc. with the installation of plant machinery of of order of best available state –of –the
art technology and sophistication. Through dint of hard work, complete dedication, uncompromising quality, ‘HALDIRAM’ became a part of each family.
GROWTH PLAN In 1992, when ‘HALDIRAM’ turned itself into a group segment, a most sophisticated manufacturing centre cum showroom was established at Main Mathura Road, New Delhi under the banner ‘HALDIRAM MANUFACTURING COMPANY LIMITED’ which was a run away success. The Haldiram group three sister concerned established at Bikaner, New Delhi and Nagpur. All three are originated from ancestors in Bikaner, Rajasthan. Now the three concerns operates in different states of India. The New Delhi unit caters to Punjab, Haryana, Uttar Pradesh, Bihar, Jammu &Kashmir , Himachal Pradesh and part of Assam. The firm at New Delhi runs four firms offering different productsHaldiram Manufacturing Co. Ltd. :
Namkeens
Haldiram Marketing Ltd.
:
Sweets
Haldiran Snacks (P) Ltd.
:
Papads
Haliram India Pvt. Ltd.
Syrups & Sharbats
The company also has three show rooms in Delhi, located at Main Mathura Road, Lajpat Nagar and Chandni Chowk. These offer variety of fast foods as well as traditional foods.
Trust in quality is an obsession which is being enjoyed by million of families. The quality of salty snacks and scrumptious sweets , met the international standard and speak for itself. To sustain in competitive market, “HALDIRAM” has endeavored stress on quality, packing, shelf life, competitive price with special emphasis on consumers satisfaction and its lingering taste is amongst the best available in the world. Haldiram showroom has become the most sought after one and is catering to the choice of millions to their utmost satisfaction with retention of trust reposed and presence felt. To say the least, amongst the sweets and namkeens, we can modestly say “you name it-we have it”. During 1993,preparation of different varieties and flavours of syrups and crushes was undertaken under the brand name of “HALDIRAM”. Its marketing was undertaken in the Northern region of the country and was well received with success. Encouraged by the overwhelming response from the lovers of “HALDIRAM’ the group decided to spread its wings in others part of Delhi to reach the consumers more easily. The group hence opened another Show room at Lajpat nagar on the main road during March, 1999 which is being welcomed and appreciated by the customers of South delhi who have constraints to reach Matura road.
EXPORTS “HALDIRAM” Group foresighted the growth potential in fast food industry which was taking shape by leaps and bounds. ‘Namkeen’ was one of the areas which was most sought after and the group, without lagging behind, had set up a most modern plant adjacent to the Show room at Main Mathura road exclusively for the manufacture of ‘Namkeen’. This plant was set up in the year 1997 under the stewardship of Mr. Pankaj Agrawal, a young dynamic entrepreneur with a flair of modern management, leadership, open vision, result orientation. By virtue of Mr. Pankaj Agrawal, who is the managing director of HALDIRAM GROUP, the packaging, quality, competitive pricing etc. has become the hallmark of ‘HALDIRAM’ Namkeen and with the installation of plant and machinery from U.S.A. the company also started manufacturing potato products and has been able to get increased share of the market amongst stiff competition. Needless to say that the company is exporting its products to various parts of the world
viz. U.S.A., Canada, U.K., Europe, Middle East, Far East, Moscow, Australia, Newzealand, Srilanka, Nepal, Japan, Thailand, etc. and are on the threshold of penetrating other parts of the world. It is encouraging to note that the group is receiving positive enquiry’s from amongst the prospective clients abroad and is quite confident to meet their demand fully with positive attitude, personalized service and with quality products. Continuous efforts are being initiated to make sure that we reach the untapped markets abroad and earn foreign exchange for our country.
FUTURE PLANS Looking at the tremendous scope in the fast food industry though competition from MNCs and other giants in the field,the group has an ambitious project on Delhi-Jaipur Highway at Gurgaon to undertake manufacturing of whole range of products which will house manufacturing facilities, restaurant, Show room etc. and will satisfy the customers to their ultimate around the World, having edge over the others.
MISSION Our perpetual consistent quality, best packing strategy, vast market coverage and the number of years of experience have given us a cutting edge visà-vis our competitors. Our natural ilk to improve our performance and quality with each passing year has taken us way ahead of our nearest competitors. The people at HALDIRAM’s are very sensitive and our customer friendly about the complaints, which infect is a rare occurrence from the customers and dealers.
RESEARCH OBJECTIVES To find out the distribution channel, market share and market strength of Haldiram’s Namkeen and suggest strategies to increase its market share. ►To study present snacks market ►To find out the namkeen potential market. ►To find out the market share of Haldiram’s Namkeen in comparison to Bikano, Crax, Lehar, and others ►To find out the brand and pack availability in the availability in the respective market . ►To identifythe ‘Distribution Network’ of Haldiram Products. ►To get overview of sales scenario of the Haldiram’s Brands vis a vis its competitors. ►To judge the awareness level of retailers regarding the various flavors of namkeens. ►To analyse the retailer criteria for promoting any brand and the needs and problems of retailer. ►To collect ideas and suggestions from the market. ►To find out the future market potential of namkeens. ►To find out strength of Haldiram and do SWOT analysis of Haldiram’s namkeens. ►To suggest strategies to increase the market share of Haldiram’s namkeen. These objectives were achieved by following a well thought out plan and defining the problem for each
objectives separately. Sampling and other statistical tools were considered for achieving the given objectives.
RESEARCH METHODOLOGY Problem Identification:The project do find out the market share of Haldiram’s namkeen in Delhi and suggestion how to improve. Collection Method of Date:The source of data collection was primary data which was collected by personal interview, aided by structured disguised questionnaire. Area :Field work was carried out for the Haldiram Marketing Pvt. Ltd., in Delhi for the analysis of market potential of namkeen. Sample Size:Daily around 10-20 retailer were interviewed. Therefore the whole exercise took around 14 days. Almost all the respondents were very helpful and forthcoming with the information.
PROBLEM DEFINITION І) To study the present namkeen market (Haldiram Vs. Competitors) In order to achieve the given objected data is collected from various sources. For calculating the market share of Haldiram and its competitors. 1) Data is collected on the following important bases. ► Various companies namkeens are available on outlets in that areas etc. ► Product quality of various companies namkeens in comparison to Haldiram’s namkeens. ► Product range of various companies namkeens in comparison to Haldiram’s namkeens. ► Stock availability. ► Stock level. ►Annual sales figure of various outlets in that area etc. From various localities choosen for the survey. East of Kailash Garhi INA Karol Bagh
Anand Parbat Munirika village Ashram Sunlight colony I and II Kalkaji Lajpat Nagar Sant Nagar Vasant Vihar Shrinivas puri Katwariwa sarai New Rajendra nagar Market Research to find out the namkeen potential outlets. Marketing Segmentation Pan Shop Tea Stall General Store Provisional Store Hotels, Bar & Restaurants Confectionary Sweet House Bakeries Cold Drinks Asking Individually from shops of each segment whether they are willing to sell Haldiram or its competitors or both by doing this we can know the potential market.
Ш. To study tha samples distribution network in a particular area. ► By studying the routes of sample market where only tempo and tricycle can approach. ►By studying the route of sample market where only bicycle can approach. ► By plotting all the areas of importance on the map of that locality and also pointing out all the a,b,c,d class. A-class : Sales above 20 kg. per week. B-class : Sales above 10 kg. to 20 kg. per week. C-class : Sales above 1 kg. to 10 kg. per week. D-class : Sales below 1 kg. per week
DATA COLLECTION METHOD DATA SOURCES : Primary as well as secondary data sources r used to make project efficient and fruitful. Primary sources of data; a) Observations b) Questionare Secondary sources of data a) Company’s catalogues b) Company’s route card c) Copmany’s website d) Business magazines and newspapers SEARCH INSTRUMENTS A) Observations : Careful observations of all the outlets have been done to find out the locations visibility, house keeping. B) Questionnare : Structure non disguised questionnaire and structured disguised questionnaire has been used to collect the information about the outlets, annual sale, stock availability, stock level etc.
Data Collection Method adopted to consult of constructed questionnaire ask from several shopkeepers about tha brand of namkeen they sell i.e. Haldiram, Bikano, Lehar, Crax etc. The question generally ask to achieve the desired objectives were :1) Which company’s product range is good? 2) Which company’s product quality is good? 3) Which company’s price range is good? 4) How much stock they have maintain at that time? 5) What’s there annual sale? 6) Whether they are willing to sale Haldiram or its competitors or all other namkeen? The above mentioned questions were asked from the retailers of surveyed sample market and data collected were analysed to come to any conclusion.
INTERNATIONAL MARKETS COUNTRY 1) U.S.A 2) U.K 3) Germany 4) Spain 5) Holland 6) Switzerland 7) France 8) Italy 9) U.A.E 10) Kuwait 11) Qatar 12) Bahrain 13) Saudi Arabia 14) Australia 15) New Zeland 16) Japan 17) Srilanka 18) Thailand 19) Singapore 20) Phillipines 21) Nepal 22) Botswana 23) West Indies
FINDINGS SWOT ANALYSIS STRENGTH 1) The product has excellent brand awareness & a high quality image. 2) Good and attractive packing 3) Good image position 4) Good taste 5) Good variety 6) High Market Share 7) Avalibility of brand almost on all the outlets. WEAKNESS 1) Consumer proximity to retail outlet. 2) Sale pushing of other brands. 3) Schemes given to retailers are not enough. 4) Less profit of margin of Haldiram productof other brand 5) Less advertisement. OPPORTUNITY 1) By providing proper schemes Haldiram can increase its supply 2) By providing more profit margin Haldiram can increase its supply.
THREATS 1) Competition from Lehar, Bikano, and Crax 2) Competition fropm other brand. 3) Sale pushing.
LIMITATIONS Some of the respondents were totally un responsive ahd were not ready to cooperate. 2) Due to none availability of concerned persons questions remained unanswered. Some respondents were such too were not ready to 1)
3)
4) Biasness is the most serious limitation. Although measures have been taken to reduce the biaseness but complete elimination of biasness is impossible. 5) In research retailers behaviour is studied but the retailers behaviour are not assessed correctly, therefore, their cannot be assessed correctly. 6) The reliability of the datato great extent is dependent on the honesty and cooperation of the respondents in providing the information. Thus reliability and validity of data collection through survey method is not always without doubt. Due to above limitations the findings may not be hundre percent accurate
CONCLUSIONS 1) There is high awareness level for different Haldiram’s products amongst the retailers. 2) From the the survey of 250 retailers ih Delhi it was noticed that in most of the retailers are keeping Haldiram namkeens. Other brand namkeens which also occupy a major share are Lehar, Crax, AND Bikano. 3) Market shareof Haldiram namkeens is more than double of its competitors. 4) From the data collected it is quite clear that while promoting any brand the foremost considerations are good demand and good margin followed by regular supply and next come brand names. 5) Majority of retailers promote Haldiram’s namkeen followed by Lehar, Bikano, and Crax in that order. 6) Average annual sale come out to be highest for Haldira ‘s namkeens followed by Lehar, Bikano, local brand like namkeen , Raja, Shammi, Tingle, Shah, Aone, etc. also have a significant share when clubbed together.
7) Margins are revailed by retailers highest for local brand followed by Lehar, Bikano and Haldiram’s in that order. 8) Brand awareness for Haldiram’s product is very high. 9)There is sinnificantly high brand loyalty for Haldiram’s product amongst the consumers. 10) Bikano has great Mrket share in karol bagh due to its sweets corner 11) Lehar has great market share in Katwariya sarai due to proper distribution channel in that area. 12) Lehar namkeen are equally preferred as Haldiram’s. It is also noticed that young people prefer Lehar’ Aloo Bhujia, Masala Laccha and Kukure over Haldiram’s. The reasons for this could be that the T.V. advertisement of Lehar has an emotional appeal for the young generation. 13) Bikano’s Natkhat Nimbu and Crax mast matter are in great demand over Haldiram’s. 14) Most of the retailer were complaining about the less profit margin. 15) The main Consumer segment for Haldiram is upper and middle class but Lehar, Crax and Bikano has consumer
Segment for lower class too by having a packet of Rs 2 of 12 gm. 16) There is great damand of Rs 5 packet. 17) Most of of retailers were complaining that there was no sort of ccredit given in era of credit.
