Strength’s 1. Quality : the biggest strength of the company is the quality of the products, which is maintained and improved over time. 2. Knowledge : Haldiram has been in this business since 1941 and over the time has gained immense knowledge about the product and the consumer’s taste and preferences. 3. Manpower : Haldiram have a lot of support from its employees in building up quality and brand image. 4. Pricing : The prices of the products compared with the quality being offered to the consumer seem to be quite reasonable. 5. Latest technology : Company invests a lot of money in technological development, which helps company to remain in front of the competition. 6. Pacakaging : Haldiram is the first company to introduce proper packaging for the product and over the period of time has improved by lot and still it’s the best. 7. Trust of the consumer : what drives the company is the trust of the consumer, which is a big motivating factor for the company WEAKNESSES LOW ADVERTISING BUDGET: The Company spends very less in advertising and promotional scheme compared to its competitors. TRADITIONAL MANAGEMENT STYLE : The Company is still run by one man and every thing is very centralized thereby resulting in slow decision-making process. NOT ALL PROCESSES ARE NOT AUTOMATIC : Since all the manufacturing processes are not automatic it becomes very difficult to maintain consistent quality. Page 4 OPPURTUNITIES GROWING FOOD INDUSTRY : As the food industry is growing rapidly there are lots of opportunities for the company to expand its market share in the future. CHANGES IN THE CONSUMERS TASTE AND PREFERENCES : Consumers now demand more of convenience food or packed food and snacks is the solution to the changing needs of the consumer INCREASE IN THE MONEY INCOME LEVEL OF THE CONSUMER : As the income level of the consumer is increasing, the consumer likes to spend more money on buying packed foodstuff. PROSPECTS FOR EXPORT : The export market has been increasing tremendously, which brings more and more opportunities for the company to expand their market globally. THREATS AVAILABLITY OF SUBSTITUTE GOODS : Biscuits, potato chips and other kinds of food items other than namkeen can affect the demand for the namkeen in future. HEALTH AWARENESS : As people are becoming more and more aware of being healthy the demand for savory snacks is likely to get affected in the future. INCREASING COMPETITION FROM INDIA AND MNC FOOD COMPANIES : With the increase in the competition from the Indian and as well as MNCs the company needs to adopt aggressive marketing and spend more money into advertising and promotional schemes. And at the same time innovate new products.
Quality is of paramount interest to haldiram. Regular checks ensure to meet quality standards of FDA, US and Safety Act, UK. Presently, they have advance in house facility to check Aflatoxin, pesticides, Sudan colors and other microbiological tests. Also lay emphasis on waste management, and environment issues.
HALDIRAM's Submitted by: Group 10 Aditya Lal Ankita Rai Manvi Goyal Paridhi Modi Rohan Gupta
The target market of Haldiram is middle – aged household women.
The main customers of the savory snacks are in the age group of 30-60 and the range of the income is around $U.S. 100 per month and above.
As women are the buyers for household needs and the deciding factor on what to be served to the guests, Haldiram targets them for their Namkeens.
Further, there is something for everyone in Haldiram’s varied product range, such as Takatak & Whoopies for kids, Minute Khanna for those ready-to-eat food needs, and the all famous Mithai for everyone at home.
In Mithai also, they have come with sugar free sweets for the “diabetic” or health conscious customers.
At Haldiram, they have defined their distribution network with respect to the weight and price of their various products.
This is because they have defined their retail outlets in terms of the kind of product they keep. For e.g., a 10 gm bhujiya packet is generally opted by the “paan wala’s” and very small retailers. Thus, they have a different distribution channel.
Similarly, a parallel channel of distributor is for the “kirana stores” in various colonies and localities where our middle class housewife visits who prefers the less than ½ kg packets but more than the small chillar of 10gms. This segment of consumers is supplied through a different set of distributors who stock the 200gm and 400gm packets .
Thirdly, the big modern trade stores like Spencer's, Vishal Mega Mart, Reliance Fresh, Subhiksha etc., generally prefer keeping the 500 gm and 1 kg packets. They have assigned exclusive distributors for them.
Fourthly, for army canteens, or BSF, CRPF canteens, there is a separate channel of distribution followed.
Since, the price at which the products are sold to these canteens are very low, goods are supplied through the exclusive CSD, Company Sales Depots.
These depots are located near army cants, like one in Delhi near Palam.
The company has various CSD all through out the northern and north-eastern India covering as far as Nagaland and Jammu & Kashmir.
The C&FA are used for distribution of the product outside Delhi, NCR.
The C&F agents work on Freight paid basis till their warehouse.
If the Warehouse is either on the first floor or the basement, then the labor charges are born by the agent and not the company.
Within Delhi, the Distributors are located by dissecting the city into four zones north, east, south, and west Delhi.
They pick the products from the depots and the logistics are managed by themselves. Though the company does have a say in it but leaves the responsibility on them as distribution is more about relationships, as per Mr. Goyal.