SMGULP was a cooperative system in which women over the age of 18 could become members. Starting humbly, with an initial capital of Rs 80, borrowed from a local money lender and social worker, SMGULP grew phenomenally. In 2002, it had a turnover of Rs 3 billion and exports worth Rs.100 million. It employed 42,000 people in 62 divisions all over the country. SMGULP was the brain child of seven semi-literate Gujarati housewives, who started a venture to create a sustainable livelihood using the only skill they had– cooking. The seven women were Jaswantiben Jamnadas Popat, Parvatiben Ramdas Thodani, Ujamben Narandas Kundalia, Banuben. N. Tanna, Laguben Amritlar Gokani, Jayaben V. Vithalani, and one more lady whose name is not known. These women did not know what entrepreneurship was; neither did they envisage the proportions their small business venture would grow to. All they wanted was to do something worthwhile with their time and help supplement their family income. this case study covers the challenges faced by lijjat sisters and their working system.

1. CASE STUDY ON SMGULP
Submitted To - :
Department Of
Commerce
Submitted by –
Name - Meenakshi
Vehrat
Class - Mcom
Course -: Master Of Commerce
Case Study -: Marketing Mix Of SMGULP

2. SHRI MAHILA GRIH UDYOG LIJJAT PAPAD
SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD

3. History
On march 15, 1959, they gathered on the terrace of their
building and started with the production of 4 packets of
Papads. They started selling the Papads to known merchants in
Bhuleshwar . From the beginning , the women had decided that
they would not approach anyone for help or donations even if
organization faces loss Chaganlal Karamsi Parekh, popularly
known as Chaganbapu, became their guide. Intially, the women
were making two different qualities of papads, in order to sell
the inferior one at a cheaper rate. Chaganbapu advised them to
make a standard Papad and asked them never to compromise
on quality . He emphasized to them the importance of running
it as a business enterprise and maintaining proper accounts.

4. CONTINUED…..
In July 1966, Lijjat Registered Itself As A Society Under The
Socities Registration Act 1860.In The Same Month, On
Chaganbapu’s Recommendation. U N Deodhar, The Chairman Of
KVIC Personally Inspected The Lijjat. KVIC Or Khadi
Development And Village Industries Commission Is A Statutory
Body Set Up By The Government Of India For Development Of
Rural Industries. Under KVIC Act It Was Recognised As A
“Village Industry” In 1966, KVIC Granted It A Working Capital Of
Rs. 8 Lakhs And Was Allowed Certain Tax Exemptions.
In 1987, Lijjat Entered The Soap Market With Sasa Detergent And
Soup. SASA Has Annual Sales Of Rs 500 Million In 1996 The 50th
Branch Of Lijjat Was Inaugrated In Mumbai.
In 2019, Lijjat Had A Turnover Of Rs 3.5 Billion And Exports
Worth Rs 170 Million . It Employed 45000 Women In 62 Divisons
All Over The Country .

5. Seven women with no special skills but a strong determination to earn dignity as individuals
JASWANTIBEN JAMNADAS POPAT
PARVATIBEN RAMDAS THODANI
UJAMBEN NARANDAS KUNDALIA
BUNUBEN N. TANNA
LAGUBEN AMRITLAR GOKANI
JAYABEN V . VITHALANI
JASWANTIBEN POPAT

6.  PHILOSOPHY THAT GUIDES ‘LIJJAT’
VISION - The company is a cooperative that implements
Mahatma Gandhi’s principles of ‘self-help’ and ‘trusteeship’.
 The vision of the organization is to enable women to become
self- reliant and self-confident.
The concept of family Mutual family affection, concern and trust.
The concept of devotion ‘Work is Worship’.
“ Profit For Everyone
Loss For Everyone”
SARVODAYA
AND
COLLECTIVE OWNERSHIP
’.

8. PRODUCT PROFILE
a) Lijjat manufactures several products of which the
papad is the most shown -:
• Papad ( moong, mirchi, punjabi and urad)
• khakhra
•Appalam
•Masala
• Vadi
• Gehu
• Bakery products
• Chapati

9. PACKAGING
The Institute Itself Carries Out The Packaging Process
Instead Of Having Collaboration With Others. These Plastic
Bags Are Manufactured Without Any Technical Help Or
Machinery, Instead It Is Hand Made. The Packaging
Department Comprises 70 Sister Members. These Bags Are
Manufactured At A Factory Situated At Dahisar, Because It
Prevents Duplication Of Their Product.
QUALITY CHECK
The Papads Are Prepared In Different Parts Of India. The
Quality Of The Water Used Usually Varies, And So Can The
Quality Of Product. To Prevent This Lijjat Had Their Own
Laboratory In Mumbai, Where The Final Product Are Tested.
• Urad Dal - Myammar
• Asafetida - Iran
• Black Pepper - Kerala

10. PRICING
PRICING POLICY
Shri Mahila Grih Udyog Lijjat Papad Adopts A Cost Plus Pricing
Strategy For All Their Products. The Lijjat Products Are Targeted At
The Middle And Lower Segments Of Society. These Segments Are
Highly Price Sensitive And Hence Thus Method Of Pricing Allow
Them To Market Their Products Extensively. While Calculating The
Price The Following Are Taken Into Consideration-
• Cost Of Raw Material
• Rolling Charges
• Packaging Charges
•Selling Expenses
•Administrative Expenses

11. Another important consideration in pricing part of marketing is
what pricing strategy to be adopted. The level of price is also
determined by the kind of pricing strategy. The strategies vary as
per context, competition, product stage etc. Following are some
important strategies regarding pricing-:
Price-Quality Strategies
Price-quality relationship is an important aspect in any
enterprise. What combination of price and quality is an
important marketing decision? One important point to keep
in mind is that quality involves cost. The idea is not to offer
maximum possible quality for the consumer rather the
quality that the consumer can afford and at which the
business generate profit.

12. Competition Based Pricing
Pricing Decisions, how competitors price their products can influence the marketer's pricing decision. Clearly
when setting price it makes sense to look at the price of competitive offerings. For some, competitor's price
serves as an important reference point from which they set their price. The pricing strategy aim at
competitive prices but still allow you to make a reasonable profit. When basing pricing decisions on how
competitors are setting their price, firms may follow one of the following approaches:
Below Competition Pricing - A marketer attempting to reach objectives that require
high sales levels (e.g., market share objective) may monitor the market to insure their
price remains below competitors.
• Above Competition Pricing - Marketers using this approach are likely to be
perceived
as market leaders in terms of product features, brand image or other characteristics
that support a price that is higher than what competitors offer.
Parity Pricing - A simple method for setting the initial price is to price the product at
the same level that competitors price their product.
In the above case of unit, suppose there are two other similar units in the location, unit
A offering Rs. 20 per unit and unit B offering Rs. 21 per unit, then what price this unit
sets is an important marketing decision. This also depends on the kind of pricing

13. ITEMS UDAD
WITH
PEPER
UDAD
WITH
GARLIC &
CHILLES
UDAD WITH
RED CHILLES
MOONG&
UDAD
UDAD
SPECIAL
MOONG
SPECIAL
PUNJABI
MASALA
SPECIAL
SMALL SIZE
100 GM
17.00 17.00 17.00 17.00 21.50 21.50 21.50
MINI SIZE
200 GMS
30.00 30.00 30.00 30.00 33.00 33.00 33.00
SMALL SIZE
200 GMS
34.00 34.00 34.00 34.00 39.00 39.00 39.00
BIG SIZE 250
GMS
45.00 45.00 45.00 45.00 50.00 50.00 50.00
SMALL/ BIG
SIZE 500
GMS
70.00 70.00 70.00 70.00 79.00 79.00 79.00
SMALL/BIG 1
KG
105.00 105.00 105.00 105.00 140.00 140.00 140.00
SMALL /BIG
2.5 KG
250.00 250.00 250.00 250.00 320 320 320
 CONSUMER PRICE LIST

14. ITEMS SMALL SIZE
RATE/PACKET
UDAD WITH PEPPER 30
UDAD WITH GARLIC AND
CHILLIES
30
UDAD WITH RED CHILLIES 30
UDAD WITH PLAIN URAD 30
MOON & URAD 30
UDAD SPECIAL 35
MOONG SPECIAL 35
PUNJABI MASALA SPECIAL 35
UDAD SINDHI MASALA SPECIAL 35
MATHIA SPECIAL 35
DHAMTA SPECIAL 35
 EXPORTS PRICE LIST
Export Price Are
Different Of The
Price Within India.
Export Price Are
High As Compare To
Prices In India . So,
Lijjat Can Earn
Profits Through
Exports As Compare
To India.

15. place
 DISTRIBUTION FLOW
CHART

16. Distribution Channel
Packed Papads Are Sealed In A Box And Production From Each Centre Is
Transported To The Depot For The Area. Mumbai Alone Has 16 Branches And 6
Depots. In Small Towns Or Villages The Branch Itself Serve As A Depot . The
Depots Are For Storage And Pick Up Point For Distributors.
They Have 32 Distributors In Mumbai, Each Distributor Pick Up An Average Of
100 Boxes Per Day From The Depot.
Their Distribution Pick Up The Quantity Of Papad They Require And Pay Cash
On Delivery , Because They Pay Their Members Everyday. Since They Have
Estimate Of The Quantity They Produce Accordingly. This Ensures That They
Neither Have Stock Inventory Nor Pay Heavily For Storage.
Generally Each Distributors Has His Three- Wheeler And About 10 Salesman To
Deliver To Retail Outlets Within His Territory.

17. PROMOTION
For Promotion SMGULP Given Attention
More On Quality And Cost Effectiveness
Instead Of More Investment On
Advertisement Because They Believed
That Oral Advertiement Because
They Believed That Oral Communication
Is Best Way Of Promotion . Here Is
Amounting Rs 60 Lakhs, Which Is 0.2%
Of The Total Turnover Is The Annual
Expense On Advertisements And
Promotions. “ BUNNY RABBIT” Exposed
To Be Aired On Specific Regional
Channels Such As Alpha Gujrati , Apha
Bengali Etc.

18. OF LIJJAT

19. STRENGTH
1.Quick and fast delivery system-: shri Mahila Griha
Udyog Lijjat Papad it’s a women only business is popular
for its fast shipments. They offer shipment in 30
minutes exactly.
2. Pricing range-: there products are provided to
consumer in reasonable and budget- friendly rates.
Likewise clients can get different sizes and deals of
the corporation of various flavours.
3. Strong distribution system-: SMGULP have kept a
circular network. Which is the most essential strength.
now they have expand to every corner of the world.

20.  Maintaining same standard over
50 years.
 Having unique identity in economy.
 Development of women by providing
them a living.

21. WEAKNESS
1. Operational difficulties-: as the franchisees lie in every
corner of the city. It ends up being difficult to
SMGULP to deal with its operation.
2. need of high technology-: the company visions not meet
the innovation they are using now. For this reason, they
need to invest more in their innovation to standout in
competitive market.
3. Net income -: SMGULP have actually analysed that
their net income are not matching to its actually
financial estimates and forecasts.

22. The business need to increase its sales to
increase its efficiency and earnings.
 lack of marketing skills.
 less use of technology
 limited capital
 semi -literate

23. OPPORTUNITIES
C 1. Green business products
With an increased focus and awareness of health and wellness
lifestyles by consumers, it is important that SMGULP recognizes
this as a viable business opportunity. Increased numbers of
consumers are shifting to the green lifestyle of consuming
environmentally friendly and organic products. SMGULP should
focus on the expansion of the product portfolio: inclusion of
green products and environmentally sustainable services are
suggested
C 2. Expansion in emerging markets
SMGULP can expand its income streams through expansion and
developing presence in emerging markets -such as Brazil. This
opportunity draws consideration far from the U.S.

24. C 3. Business enhancement
Likewise noteworthy in this SWOT analysis of
opportunities is the opportunity of business
enhancement and further business development. This
can help improve the long term position
of SMGULP. For instance, through higher
diversification of the portfolio and the overall
business, the SMGULP organization can diminish its
reliance on its present enterprises, and
along these lines work towards improving its general
income development.

25. zzzz
1. Price wars by competition
SMGULP competes with a wide assortment of firms in
the local as well as the international market. For
instance, the organization competes against
significant premium companies as well as against
cheaper companies that offer cheap priced items and
products. This external but important factor in the
SWOT assessment undermines SMGULP because such
competing players can lessen the organization's share
of the overall industry by competing based on low
prices and overall low costs of production.
THREATS

26. 2. Increased competition
Additionally, this SWOT assessment also analyses
increased competition as a noteworthy
threat against the business. In light of the
organization's shortcomings, the risk of imitation
includes firms that attempt to duplicate the taste,
look and feel of Saturated market place and
industry can also lower sales of the organization and
shrink its share of the overall pie. Increased
competition can also lead to the increased cost of
business.

27. 3. Independent players
The industry environment and profitability are liable to
invite independent developments, and small-scale players.
These players may not have high levels of integration and
may be retailers and marketers for items produced during
backward integration. Strategic marketing
techniques and promotional communications are expected to
neutralize the impacts of these patterns. This section of
the SWOT analysis of SMGULP recognizes external key
factors that force difficulties to international expansion
and growth of the company as well as highlight market
infiltration

28. “ When Women Move Forward , The Family Moves , The Village
Moves And The Nation Moves”.
The Most Interesting Part Of This Organisation Is That Lijjat Make
Almost Equal Money For Its Entire People The Aspect Is Not A Good
News For Machine And Money-driven Corporate Owned By Tycoons.
As A Business Home, Lijjat Itself Trying To Rewrite Its Success
With Its Another Product With Varying Degree Of Success Grounded
Spices, Khakhra, ,Masala, Cake , Detergent And Soups But Papad
Sales Is On Top Rs 288 Crore In Top.