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Marketing Case Study

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Aakash Namkeen:- marketing case study

Aakash Namkeen:- marketing case study

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  • Manufactured using the most advance machines, and under the most hygienic conditions, the parameters of quality for Aakash products begin with the usage of the Choicest ingredients including high quality edible oil, obtained from the mostreliable sources. Starting from the picking, the sorting, cleaning and grindingprocesses of various pulses and spices are carried out in-house so as to followthe strictest measures of quality control.AakshNamkeensanre packed using nitrogen in the attractive metalisedthreelayerspruches to maintain the best of freshness and taste and a longer shelf life
  • (in an already low-margin, high-volume market)
  • pressure,Garlic (Lasun) : Lowers Cholesterol, Inhibits rheumatism, has anti-cancer, Anti-flatulent and antibacterial properties.
  • via Direct mail,Telemarketing.Web sites, social media marketing,Mobiledevices,Interactive TV

Marketing Case Study Marketing Case Study Presentation Transcript

  • OVERVIEW OF CASE FRAMEWORK Market Analysis- Porter 5 forces model Company analysis- SWOT analysis Generation and Evaluation of Alternatives- Marketing Mix Decision
  • COMPANY PROFILECompany :- Aakash Namkeen Private LimitedYear of Establishment :- Aakash namkeen since 1992Legal status of the firm:-IndividualTurn over :-Upto 5 CroreNature of Business:- Wholesale And RetailMajor Market:-Madhya Pradesh, losses in Delhi, Mumbai, JaipurProduct Range:-Snacks offered include:-Khatta Meetha Mixture, NamkeenMixture,cornflex,charka mixture,All in one,lajawab,Gujrati Mixture,Ratlami Mixture,Long Sev,Aloo bhujiya, Ujjaini Sev.( 90%) Sweets(15%):- son papdi (5%) gajak:- date and sugar Gift packsInfrastructure Semi automated production unit Warehousing unit Processing unit Staff van and tempos for physical distributionCompetitors:- organised sector:-Haldiram,PepsiLehar, unorganised sector
  • Analyzing Segment Attractiveness (Porter’s 5 forces)
  • Industry Attractiveness (Porter’s 5 forces)Competitive Rivalry High Competition – Branded Players involved in cut-throatcompetition to increase market share, entice newconsumers, find new market. Quality difference between branded and unbrandedofferings is offset by low price offered by unbranded players Brand Loyalty is high for branded playersBargaining power of supplier Suppliers provide raw materials such as gram flour,dryfruits, spices and other ingredients. Their ability to raise inputcosts is high Higher cost of input commodities leads to lowermargins, making the market unattractive for distributors andretailers Shortage of any input material may also affect productionand thereby impact distribution. Veteran players like Haldiram and Pepsi already have awell-established network of suppliers Threat of competitive rivalry and bargaining power of supplier is high.
  • Industry Attractiveness (Porter’s 5 forces)Threat of new entry: Namkeen market- 2000crore As the market is growing at 30percent annually, new entrants may consider it a profitable venture As branded players are priced similarly, new players mightpenetrate by adopting a lower price or by offering more grams at thesame price New players with a distinct USP and marketing strategy mayfind it easier to enter the market (Om Nmakeen) Unorganized players still account for half of the totalsegment, thereby discouraging market entry Veteran players such as Haldiram etc enjoy economies ofscale, well-established distribution and good distributor relations. Threat of new entry is moderate to high
  • Industry Attractiveness (Porter’s 5 forces)Bargaining power of consumers Haldiram enjoys a healthy lead with a 45 percent market share forit’s portfolio of products, Lehar- 40%Ability to substitute is high as brands are priced similarly anddistribution problems for one brand promote sales for the other. Price Sensitive, taste conscious consumers are high. An increasein the price of aakash may promote a switch to Haldiram or lehar formost buyers (except for loyalists)Quality and taste conscious consumers who buy brandsHigh demand during festival season and low during monsoonThreat of substitutes. Indian Snack Segment is high-volume, low-involvement driven(thrives on impulse buy) All snacks are considered to be substitutes of each otherBiscuits, Wafers and local snacks like Chakli, banana chips, farsanetc are all substitutes of one anotherHence, bargaining power of consumers and threat ofsubstitutes is high.
  • MARKET STRUCTURE Market • Haldiram Leader Market • Pepsi snacks and Food Mktg co:-Lehar namkeenChallenger • Aakash, local players such Yes Namkeen( Market kothari product), Yumkeens. Also included are unorganized offerings, aimed at the Follower price-sensitive, less loyal audience. Market • Om Namkeen which has identified itself a niche of the more health conscious section Nicher of the audience
  • SWOT ANALYSISStrengths:- Good product mix with High nutritional value( 27 varieties outside MP and 50 in MP) Aromatic and delicious Different sizes(200gm, 400gm, 1kg) Colorful packaging Made from high quality ingredients and Good quality oil Fresh, Less calories, Rich in fibrous content Exclusive outletsWeakness:-o Lack of goodwill among middlemeno Marginally higher priced than local playerso Lack of promotional activitieso Less profit margino Weak Distribution System:- lack of commitment and honesty, large volume of replacement by middlemenOpportunities:- Innovation:-Baked items, Turmeric (Haldi) : Blood purifier, improves liver function, Ginger (Adrak) : Improve digestion, lowers cholesterol, controls blood. Silver foil packaging like haldiram ( increase shelf life) Home delivery Schemes for retailers, se ll in big outlets Children or youth productThreat:-o Competitors
  • COMPETITIVE ADVANATGE To become Market Leader:- redesigno Product strategy:- in terms of benefits, line extension, market segmentation, product positioningo Price strategy:- raw materials(e-choupal),Payment mode,o Promotion strategy:- Trade Fair,AIDA model, point of purchase strategy, brand ambassador, brand loyalty through reminder promotionso Place:- concentrate on rural areas, intensive distribution- hotels,cafes,tea stalls, wine shops, kitty partieso Packaging:- change logo, color contrast, jingleo Distribution strategy:-increase product shelf life, Direct marketing:- eliminating middlemen
  • Final VerdictThe market is unattractive for players who: Aim to be a me-too product with no significantdifferentiation Do not have a well-established distribution network Do not have good supplier and dealerrelationships(goodwill)Pull strategy/ Competitive Advantage