2. TABLE OF CONTENTS
INTRODUCTION – (1)
CURRENT PRODUCT OFFERINGS IN SNACKS – (1)
TYPE OF MARKET AND EXISTING MARKET SHARE OF THE
COMPANY – (2)
MONOPOLISTIC COMPETITIONMARKET STRUCTURE – (2)
BRIEF LOOK AT THE STRENGHTS AND WEAKNESSESS OF
HALDIRAMS AS A COMPANY – (3)
BASIC UNDERSTANDING OF DEMAND AND SUPPLY – (4)
DEMAND – (4)
FACTORS EFFECTING DEMAND AND FOR HALDIRAM’S
SNACKS – (4)
SUPPLY – (6)
FACTORS EFFECTING SUPPLYAND FOR HALDIRAM’S
SNACKS – (6)
POSSIBLE CHALLENGES FOR HALDIRAM’S AS A COMPANY
– (7)
REFRENCES – (8)
3. 1
INTRODUCTION
Haldirams is a good example of a well-run family business which is operated well
in a hugely competitive market and collected a loyal brand of customers who love
their huge portfolio of products. They currently sell snacks, sweets, drinks, frozen
foods and even operate small restaurants and each of these products have its own
niche and fans all around India. Their products are not only limited to India and are
sold in the middle east and other parts of Asia and the whole world.
So how did this company manage to become so popular and what is their story.
Well they started out as a humble snack stall run by its founder Ganga Bhishen
Agarwal aka the original haldiram, in the alleys of Bikaner. The family which
stretches almost four generations of the Agarwals right from the 1918 to the
present day is filled with many interesting personalities, occasionalfamily feuds
similar to a Indian soap opera.
In the year 1941 the brand name Haldiram Bhujiwala was introduced to the public
and the company branched out towards Kolkata and further west and never looked
back. They finally opened a stall in chandni chowk, the main commercial hub in
delhi, in the year 1983. The initial focus of the brand was on sweets and namkeens.
This company which had started from a small snack stall currently operates and
owns a 5000 crore empire which has held of competition from other food giants
like Maggi, Knorr, Bingo etc for many years and owns the main central market
share of desi snacks which are consumed by countless people across the country.
CURRENT PRODUCT OFFERINGS IN SNACKS
1. SHAHI MIXTURE 9. MOONG DAAL
2. CORNFLAKE MIXTURE 10. KASHMIRI MIXTURE
3. KAJU MIXTURE 11. ALOO BHUJIA
4. BHUJIA 12. NAVRATTAN
5. CHANA JOR GARAM 13. BOMBAY CHANNA
6. CHILLI CHATAK LACHLA 14. ALL IN ONE
7. BHELPURI METHI SEV 15. MINT LACCHA
8. KHATTA MEETHA 16. PLAIN BHIJUIA
4. 2
TYPE OF MARKET AND EXISTING MARKET SHARE OF THE
COMPANY
The highly competitive and saturated snacks market which halriam’s mainly
operates in follows an Monopolistic competition due to the presence of many
companies selling different variances of the same snacks and no particular
company has an influence on the sellers price output policies nor does it get
effected much by their actions.
Haldirams, which started as a small snacks stall has now gone on to become one of
the largest snacks manufacturing company in India. It had lagged behind PepsiCo
for nearly two decades but that has changed according to the latest Nielsen report
which shows that it along with bikaji and bikanervala had combined sales of
almost Rs 7042 CR in total and the three companies control almost half of the
market in the snacks department. This is a huge achievement for the family run
company which has become a huge industry player in the FMCG sector.
Snaks, especially traditional in nature are accounted for almost half of the market
with small Indian companies and Large multinationals pushing it further and
further will well-made packaging and constant discounts. The overall snacks
market which is worth approximately Rs 27500 crore is majorly constituted by
varieties such as bhujia, nuts, dals and chivra. Companies like haldirams especially
are cashing in on the Indian consumers love for traditional snacks variety.
MONOPOLISTIC COMPETITION MARKET STRUCTURE
The highly competitive snacks market operates in a monopolistic competition
market since there are many companies selling different variances of the same
snacks and no particular company has an influence on the seller’s price output
policies nor does it get affected much by their actions.
So how does a monopolistic market operate and what are its features and behaviors
1) Symmetry
If a new player enters the market with aggressive marketing and more impressive
pricing structure, it tends to eat into the consumer share of all the other companies
equally.
5. 3
2) Entry and Exit freedom for new companies
when a new company enters the market in which haldirams snacks operates, when
haldirams has already created a demand among the customers, the new entry firm
benefits from the demand which is already in place and thus the whole consumer
number orthe demand number gets shared across the new entrant and the old players.
3) Increase in price by one competitor does not affect the others
If one of the competitors decides to increase the price of the product if offers then it
does not affect the price of the other similar products in a monopolistic competition
market.
BRIEF LOOK AT THE STRENGHTS AND WEAKNESSESS OF
HALDIRAMS AS A COMPANY
Strengths:
The brand has a very good reputation among the public and brand awareness
is excellent
The packaging is attractive and well known
Well-loved and consistent taste
Excellent variety catering to the needs of different demographics
High market share
Available in almost every store both in India and abroad
Weakness:
Very less advertisements and promotion
Less profit margins when compared to other brands
Schemes given to retailers are not sufficient
Other competitors are rapidly gaining market share through aggressive ads
Proximity of the consumer to the said retail store
6. 4
BASIC UNDERSTANDING OF DEMAND AND SUPPLY
This basically means the amount of goods the seller wants to sell and the respective
amount of goods the consumer or buyer wants to buy. The price of the commodity
is often defined by the interaction between the demand and the supply. The
equilibrium price is defined as the price that is derived from the interaction of both
the demand and supply in the market. In the particular situation, The amount of
goods supplied or sold coincides with the demand or requirements of the consumer
or buyer.
DEMAND
Demand is the quantity or amount of a commodity the concerned buyer can
purchase at a price according to his need. The amount of quantity he or she needs
is called desired quantity. The quantity a person purchases and the quantity he
wanted to purchase is different. Demand is better defined as a continues flow of
purchases and no confined to a single purchase of a buyer.
FACTORS EFFECTING DEMAND AND FOR HALDIRAM’S SNACKS
1) Price of the Product
The prices of snacks is generally considered to be cheap and affordable and
this drives many people towards it, but the frugal Indian market wont
tolerate a steep increase in price suddenly from any brand for their products
including those from haldiram’s so the company has to find a balance
between profits and keeping their customers happy, which it has been able to
do for so long.
2) Income
Snacks is considered not a necessity but an occasionalindulgence and this
can lead to it being sacrificed or first in the caseof reduction of the income
of an average person or a family. So if the economy is good and people are
earning enough the snacks sector will thrive along but the opposite is
possible the in the case of pooreconomy and loss if income.
3) Price of related goods
The demand for a product such as haldiram’s snacks will be influenced by
the price of related goods to a extend.
7. 5
4) Advertisements
Ads play a huge role in the promotion of a productlike snacks etc. especially
if done through a well-known celebrity or personality. Haldiram’s has
traditionally not focused much on ads and instead chooses to focus on its
brand reputation and good word of mouth alone. Companies like A2B was
able to quickly capture a piece of the snacks market share through effective
advertisements and this is some Haldiram’s should focus more upon.
5) SeasonorSpecialoccasions
Traditional snacks which is seen as delicacy will be purchased much more in
the case of a special seasonor in the occasionof a special function. Special
days and other Indian festivals truly drive the sales of snacks in the market
compared to other days
6) Taste and preference of customers
All of haldirams productportfolio won’t be as popular in one state as it is in
the other as different states have their own taste preferences. So, the
company sells its products in such a way that is suits the locals taste of the
concerned state or location. Some of the snacks popular in the north won’t
be as much in the south.
7) Government Poilicies
They often play a huge role in the demand for haldiram’s snacks. For
example, Demonetization which led to scarcity in cash in consumers hand
led to sharp drop in the purchase of delicacies like snacks etc with
consumers instead sticking to essentials alone.
8) Age and population distribution
Snacks are more popular in the younger population than the older population
so a place having an abundance of youth will have more demand for
haldiram’s products compared to place more concentrated with older
population
8. 6
9) Availability of competitors products
In the monopolistic market, the competition between different firms of the same
category is unavoidable and there are some of the major competitors of
haldiram’s
The Green Snack
Onyyx India
MTR Foods
UrthBox
PepsiCo
MTR
bikanervala
SUPPLY
It is basically the quantity or amount of goods that the supplier or seller is prepared
to sell to the buyer at a particular price. This relationship is often call Supply
relationship.
FACTORS EFFECTING SUPPLYAND FOR HALDIRAM’S SNACKS
1) Price of the product
The price of the concerned productand supply have a direct relation.
Increase in price can benefit the seller due to higher margins but might affect
the customers desire to purchase the said product. A slight increase in price
during special occasions might benefit the seller more as the customer will
have no hesitation in purchasing the product.
2) Expectations of the customers
Haldiram’s as a company generally has good reputation among the public
and people are satisfied with their products despite their high expectations.
But this can all change and demand for their productcan go down if they
don’tmaintain their quality and standard consistently.
3) Increase in population
Increase in the population of a country or place will have a direct effect on
the supply and demand for snacks in a place.
9. 7
4) Government regulations
Government policies like GST and demonetization do affect the supply of
haldirams snacks across the country. When there was lack to case around
during the initial days of the demonetization, people did not want to waste it
on things like snacks, so this effected the supply of the snacks.
5) Innovation and Technological Breakthrough
The family run business does no spend anything to improve their
manufacturing process or improve on the technology they use and instead
chooseto rely on their age old tried and tested methods. This approachmaybe
sustainable for now but is not a good long term strategy as who knows how
the future will be and we need to adapt in our technology to survive in the
ever changing market.
6) Rise in health issues and rise of healthy alternatives
Snacks are not considered as healthy food options so in this increasingly
health conscious time where people are made aware each and every detail of
a food product, there maybe a reduction in the supple of snacks due to their
reputation as unhealthy food and the rise of healthier alternatives like super
foods and protein bars etc.
POSSIBLE CHALLENGES FOR HALDIRAM’S AS A COMPANY
1) Lack of advertisements:Despite the very good reputation of Haldiram’s as
a company and the good word of mouth they get, they need to focus more on
advertisements to penetrate even more markets especially in South India
where other brands are more prominent.
2) Rise in New competition: Newer brands like A2B etc. are eating into their
market share through aggressive marketing and prices and if this trend
continues then it will affect Haldirams in the long run.
3) Changing market trends and preferences: They need to adapt more to the
changing market trends especially becausethe generations to come wont have
the same taste preferences as their older counterparts and this will need them
to adapt more.
10. 8
4) Low Margins: Due to their aggressive pricing oftheir popular products, their
profit margins are considerably less compared to other businesses in the
FMCG industry.
5) Markets outside India: Their presence abroad isn’t as strong as their
presence in India and this needs to change so that they expand into more new
markets and india’s traditional snacks get more international recognition.
6) Rise in counterfeit Products: There are many fraud or counterfeit products
of haldirams circulating in the market and this affects the company a lot due
to loss in income when people purchase these fake products. They need to
tackle these issues head on because they will only get worse as time
progresses.
REFERENCES
1) “Haldiram Competitors, Revenue and Employees - Owler Company Profile.” Owler,
www.owler.com/company/haldiramsonline.
2) “Different Forms Of Market Structure.” TutorsOnNet, www.tutorsonnet.com/different-
forms-of-market-structure-homework-help.php.
3) “10 Determinants of Demand for a Product.” Economics Discussion, 11 Aug. 2015,
www.economicsdiscussion.net/demand/10-determinants-of-demand-for-a-product/3402.
4) Krishnan, Aarati. “Spicy Story of Haldiram's Rise.” @Businessline, The Hindu
BusinessLine, 16 Jan. 2018, www.thehindubusinessline.com/opinion/columns/spicy-
story-of-haldirams-rise/article9176431.ece.
