Aakash Namkeen:- marketing case study

1. OVERVIEW OF CASE FRAMEWORK
Market Analysis-
Porter 5 forces model
Generation and
Evaluation of
Alternatives- Marketing
Mix
Decision
Company analysis-
SWOT analysis

2. COMPANY PROFILE
Company :- Aakash Namkeen Private Limited
Year of Establishment :- Aakash namkeen since 1992
Legal status of the firm:-Individual
Turn over :-Upto 5 Crore
Nature of Business:- Wholesale And Retail
Major Market:-Madhya Pradesh, losses in Delhi, Mumbai, Jaipur
Product 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 packs
Infrastructure
 Semi automated production unit
 Warehousing unit
 Processing unit
 Staff van and tempos for physical distribution
Competitors:- organised sector:-Haldiram,Pepsi
Lehar, unorganised sector

3. Analyzing Segment Attractiveness
(Porter’s 5 forces)

4. Competitive Rivalry
 High Competition – Branded Players involved in cut-throat
competition to increase market share, entice new consumers,
find new market.
 Quality difference between branded and unbranded
offerings is offset by low price offered by unbranded players
 Brand Loyalty is high for branded players
Industry Attractiveness (Porter’s 5 forces)
Bargaining power of supplier
 Suppliers provide raw materials such as gram flour,dry
fruits, spices and other ingredients. Their ability to raise input
costs is high
 Higher cost of input commodities leads to lower margins,
making the market unattractive for distributors and retailers
 Shortage of any input material may also affect production
and thereby impact distribution.
 Veteran players like Haldiram and Pepsi already have a
well-established network of suppliers
Threat of competitive rivalry and bargaining power of supplier
is high.

5. Industry Attractiveness (Porter’s 5 forces)
Threat of new entry:
 Namkeen market- 2000crore As the market is growing at 30
percent annually, new entrants may consider it a profitable venture
 As branded players are priced similarly, new players might
penetrate by adopting a lower price or by offering more grams at the
same price
 New players with a distinct USP and marketing strategy may
find it easier to enter the market (Om Nmakeen)
 Unorganized players still account for half of the total segment,
thereby discouraging market entry
 Veteran players such as Haldiram etc enjoy economies of scale,
well-established distribution and good distributor relations.
Threat of new entry is moderate to high

6. Bargaining power of consumers
 Haldiram enjoys a healthy lead with a 45 percent market share for
it’s portfolio of products, Lehar- 40%
Ability to substitute is high as brands are priced similarly and
distribution problems for one brand promote sales for the other.
 Price Sensitive, taste conscious consumers are high. An increase
in the price of aakash may promote a switch to Haldiram or lehar for
most buyers (except for loyalists)
Quality and taste conscious consumers who buy brands
High demand during festival season and low during monsoon
Industry Attractiveness (Porter’s 5 forces)
Hence, bargaining power of consumers and threat of
substitutes is high.
Threat of substitutes.
 Indian Snack Segment is high-volume, low-involvement driven
(thrives on impulse buy)
 All snacks are considered to be substitutes of each other
Biscuits, Wafers and local snacks like Chakli, banana chips, farsan
etc are all substitutes of one another

7. • Haldiram
Market
Leader
• Pepsi snacks and Food Mktg co:-Lehar
namkeen
Market
Challenger
• Aakash, local players such Yes Namkeen(
kothari product), Yumkeens. Also included
are unorganized offerings, aimed at the
price-sensitive, less loyal audience.
Market
Follower
• Om Namkeen which has identified itself a
niche of the more health conscious section
of the audience
Market
Nicher
MARKET STRUCTURE

8. SWOT ANALYSIS
Strengths:-
 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 outlets
Weakness:-
o Lack of goodwill among middlemen
o Marginally higher priced than local players
o Lack of promotional activities
o Less profit margin
o Weak Distribution System:- lack of commitment and honesty, large volume of
replacement by middlemen
Opportunities:-
 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 product
Threat:-
o Competitors

9. COMPETITIVE ADVANATGE
 To become Market Leader:- redesign
o Product strategy:- in terms of benefits, line extension,
market segmentation, product positioning
o 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 promotions
o Place:- concentrate on rural areas, intensive distribution-
hotels,cafes,tea stalls, wine shops, kitty parties
o Packaging:- change logo, color contrast, jingle
o Distribution strategy:-increase product shelf life, Direct
marketing:- eliminating middlemen

10. Final Verdict
The market is unattractive for players who:
 Aim to be a me-too product with no significant
differentiation
 Do not have a well-established distribution network
 Do not have good supplier and dealer
relationships(goodwill)
Pull strategy/ Competitive Advantage