Summer Internship Project Report On EFFECTIVENESS OF MARKETING MIX OF HALDIRAM FOODS INTERNATIONAL LIMITED A RETAILERS VIEW

By Krutika Khadgi A0101910139 MBA- Class of 2012 Under the Supervision of

Dr. J.K Sharma Professor Department of Operations Management

In Partial Fulfilment of the Requirements for the Degree of Masters of Business Administration At AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH SECTOR-125, NOIDA-201303, UTTAR PRADESH, INDIA 2011

DECLARATION EFFECTIVENESS OF MARKETING MIX OF HALDIRAM FOODS INTERNATIONAL LIMITED A RETAILERS VIEW

I declare

(a) That the work presented for assessment in this Summer Internship Report is my own, that it has not previously been presented for another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledged.

(b) That the work conforms to the guidelines for presentation and style set out in the relevant documentation. Date: Krutika Khadgi A0101910139 MBA- Class of 2012

ACKNOWLEDGEMNET After a year or long so of classroom sessions during my MBA, Summer Internship Program has been an experience to take on the real world challenges. Moving out of the cosy confines of the college, my first industry interface as a budding manager could never have been easy without the full extended support of many people making my experience a learning as well as ineffaceable experience. I wish to extend my sincere thanks to all the people who directly or indirectly helped me sail through. My first and foremost gratitude is to Mr. Shivkishan Agarwal for providing me with this opportunity to work at Haldiram Foods International Limited. I am grateful to Mr. V S Rao (Personnel Manager) for providing me with the opportunity to work with the marketing team of the company. I would like to thank Mr. Satpati (Marketing Manager) for his support to help me progress through the project. My sincere thanks to my Industry Guide Mr. Samuel Ramalingam (Regional Sales Manager) for encouraging me throughout the project not only with his valid suggestions but also a source of unbreakable support and inexhaustible source of inspiring energy through various stages of the project. I am also thankful to al the staff (distributors, sales officers, sales representatives, drivers) of Haldiram Foods International Limited for their kind support and sincere suggestions from time to time. I am also thankful to Prof. Dr. J.K. Sharma for helping me out to complete the project by taking feedback about the progress of the project and offering suggestions from time to time.

TABLE OF CONTENTS Chapter 1.Introduction 1.1Companys Profile 1.1.1 Product Portfolio 1.1.2 Certifications 1.1.3 Awards 1.1.4 Marketing Mix of Haldirams Food International Limted 1.2 Purpose of the Study 1.3 Context of the Study 1.4 Significance of the Study 1.5 Theoretical Framework 1.6 Definitions 1.7 Summary 2 Literature of review 3 Research Methodology and Procedure 3.1 Purpose of the Study 3.2 Research Design 3.3 Research Questions 3.4 Participants 3.5 Data Collection 3.6 Instrument Used 4 Data Analysis and Findings 4.1 Review of Methodology 4.2 Result of Research Questions 4.3 Summary of Findings 5 Conclusions and Findings 5.1 Summary of Findings 5.2 Discussion of Research Questions 5.3 Recommendations 5.4 Limitations 6 References Page No. 6 6 8 11 11 11 15 16 16 16 16 16 18 19 19 19 20 20 20 21 22 22 22 40 42 42 43 44 44 45
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a. References b. Appendix A c. Appendix B

45 46 48

CHAPTER 1: INTRODUCTION

Indian FMCG sector is one of the fastest growing sectors. With its vast population base, growing middle class and strong macro-economic environment, the Indian market has seen processed food emerge as the one of its fastest growing segments. Rapid lifestyle transformation, particularly in urban areas, has resulted in a dramatic increase in the demand for processed, packaged and ready-to-eat food products. With the packaged salty snacks generating a whole new space at the kitchen shelves of the Indian families, it has given chance to many an FMCG companies to explore the market by flooding it with host of traditional snack savouries. Initially housewives in India used to make namkeen at home, but with changing times this is gradually fading away and people have started thinking that it is easier to buy namkeen than make it at home.

Since a traditional Indian family chats over a hot cup of chai with salted snacks by the side the companies have been making a beeline to grab a market share in the salty snack segment. Each company has been flooding the market with a variety of snack ranging from the much traditional alu bhujiya and salted potato chips to the more diverse forms like flavoured chips, kurkuras and munchies. Companies are devising newer ways to penetrate the Indian houses with its offerings be it with more assortments, sizes, price, ways of distributing or advertisements. Hence, this study is based on the effectiveness of the marketing mix of the company which has been a leader in the salted snack segment since its inception as a branded house for the salted snack segment, Haldiram Foods International Private Limited.

1.1.1 Companys Profile Haldiram Foods International limited today is recognised as a Star Export house, by the Directorate General of Foreign trade, a Department working under the Ministry of Commerce, Government of India.

The haldirams brand goes way back to 1937 when it was just retail Sweets and Namkeens shop in Bikaner, Rajasthan. Shri Shivkishan Agarwal, founder of Haldirams always cherished the dream of building an empire which catered to the common man. This dream was realised in the embodiment of Haldirams Nagpur in 1970.
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Haldirams Bhujiyawla became operative and soon it became hot favourite of all Nagpurians. A model factory of its time for manufacturing of sweets and namkeens was set up at:

Haldiram Foods International Limited 880, Haldiram House, Small Factory Area, Bhandara Road, Nagpur- 440008

This was followed by a chain of retail outlets and showrooms catering to the varied tastes of all segments of society. In 1997, Haldirams forayed into milk and milk product industry with products such as Milk, Ghee, Butter Milk, Breads etc, the manufacture of extruded foods such as vermicelli and 3-D snacks. Todays Haldirams has branch offices at commercial capitals like Mumbai, Bangalore and Chennai.

It is only due to the untiring efforts of the founder chairman Mr. Shivkishan Agrawal our dynamic leader that Haldiram is a proud recipient of the International Food Award. Today, Haldiram is one of the leading players in the snack food industry despite the stiff competition from the global food giants, earning valuable foreign exchange for our country. Haldiram has been branded as The No. 1 Brand in ready-to-eat snack food category and as Indias most trusted brand in 2003.

Employing state-of-art technology from Italy, Haldirams started producing high quality ready to eat snacks, savouries and sweets. From sourcing raw materials to their conversion into finished products, everything is done as per the international norms (HACCP) of Quality and Safety. A human touch is avoided to ensure superior hygiene. Apart from the exclusive recipes and high quality products, variety has been a key factor behind the companys popularity.

In its mission to make available Sweets, Snacks, Savouries and Pappadam globally through well established marketing networks, Haldirams developed a new range of products under the brand name MOPLEEZ covering vermicelli, macroni, and 3-D pallets using Italian machinery. Presently they export their products to Canada, Australia, Italy, Sri Lanka, United States of America, Poland, Singapore, Hong Kong, and many more other countries.
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1.1.2 Product Portfolio The following are the products offered by Haldiram Foods International Limited in the ready-to-eat segment:

Namkeens: Name Bhujiya Sev Available in Rs. 3, Rs.5, Rs. 10 packs, 150gms, 350gms, 600gms, 1kg Alu bhujiya Rs. 3, Rs.5, Rs. 10 packs, 150gms, 350gms, 600gms, 1kg Lahsun Sev Ratlami Sev Moong Dal Rs. 10 pack, 150gms Rs. 5, Rs.10 pack, 150gms Rs. 3, Rs.5, Rs. 10 packs, 150gms, 350gms, 600gms, 1kg Nimbu Sev Khata Meetha Navratan Mix Mixture Kaju Masala Fatafat Bhel Bhelpuri Cornflakes chiwda Tasty Nuts Salted Peanuts Chana Chor Khari Boondi Phalhari Chiwda Salted Kaju Alu Lachha Mathri Mini Samosa 150gms 150gms 150gms
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Rs. 3, Rs.5, Rs. 10 packs, 150gms Rs. 3, Rs.5, Rs. 10 packs, 150gms, 350gms Rs. 10 pack, 150gms Rs. 3, Rs.5, Rs. 10 packs, 150gms, 350gms

30gms

Rs. 10, 150gms Rs. 3, Rs.5, Rs. 10 packs, 150gms

Rs. 3, Rs.5, Rs. 10 packs, 150gms

Bhakarwadi Muruku Chatpati Dal Chatpata Mutter Methi Gathiya Bhavnagri Sev Golden Mixture Kashmiri Dalmoth

150gms 150gms Rs. 3, Rs.5, Rs. 10 packs, 150gms Rs. 3, Rs.5, Rs. 10 packs, 150gms Rs150gms Rs.10 pack Rs.10 pack, 150gms, 350gms 150gms

Papad: Name Udad papad Moong papad Bikaneri papad Available in 200gms, 500gms, 1kg 200gms, 500gms, 1kg 200gms, 500gms, 1kg

Chips: Name Halke Fulke (plain salted) Halke Fulke (tangy tomato) Halke Fulke (red chilli) Takatak (chatpata masala) Takatak (tangy tomato) Bytes (yummy bytes) Bytes (fun bytes) Bytes (love bytes) Banana Chips (plain salted) Banana Chips (black pepper) Potato Lite Available in 15gm, 25gm, 55gm 15gm, 25gm, 55gm 15gm, 25gm, 55gm 15gm, 25gm, 55gm 15gm, 25gm, 55gm 25gms 25gms 25gms 35gms 50gms

Sweets:

Name Gulab Jamun Rasgulla Rasbhari Chamcham Sugarless Soanpapdi Chocolate Soanpapdi Soanpapdi Orange Soanpapdi Coconut Soanpapdi Soan Cake Badam Halwa Shrikhand

Available in 500gm 500gm 500gm 500gm 250gms 250gms 250gms 250gms 250gms 250gms 200gms 100gms, 250gms, 500gms, 1kg

Drinks: (bottle 700ml)

1) Orange Squash 2) Pineapple Squash 3) Kala Khatta 4) Rose 5) Lemon 6) Khus 7) Kesar Badam 8) Thandai Treat 9) Strawberry Crush 10) Mango Panna

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1.1.3 Certifications M/s Haldirams Nagpur has recently got an ISO 9001-2000 certification and HACCP certification by DNV CERTIFICATION B.V., Netherlands. We have the distinction of being a member of renowned International Associations viz., European Snack Association (ESA), Snack Food Association (SFA).

1.1.4 Awards Haldirams has been a proud recipient of many awards such as the International Food Award from TROFEO International Alimentation of Barcelona, Spain (1999). Shri Shivkisanji Agrawal, chairman of the Haldirams Group has also received award titled VIDARBHA GAURAV PURASKAR.

1.1.5 Marketing Mix of Haldiram Foods International Limited PRODUCTS Haldiram's offered a wide range of products to its customers. The product range included namkeens, sweets, sharbats , bakery items, dairy products, papad and ice-creams . However, namkeens remained the main focus area for the group contributing close to 60% of its total revenues. By specializing in the manufacturing of namkeens, the company seemed to have created a niche market. While the Nagpur unit manufactured 51 different varieties of namkeens, the Kolkata unit manufactured 37 and the Delhi unit 25. The raw materials used to prepare namkeens were of best quality and were sourced from all over India. Haldiram's sought to customize its products to suit the tastes and preferences of customers from different parts of India. It launched products, which catered to the tastes of people belonging to specific regions. For example, it launched 'Murukkus,' a South Indian snack, and 'Chennai Mixture' for south Indian customers.

Similarly, Haldiram's launched 'Bhelpuri,' keeping in mind customers residing in western India. The company offered certain products such as 'Nazarana,' 'Panchratan,' and 'Premium' only during the festival season in gift packs. These measures helped Haldiram's compete

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effectively in a market that was flooded with a variety of snack items in different shapes, sizes and flavors. PRICING Haldiram's offered its products at competitive prices in order to penetrate the huge unorganized market of namkeens and sweets. The company's pricing strategy took into consideration the price conscious nature of consumers in India. Haldiram's launched namkeens in small packets of 30 grams, priced as low as Rs.5.

The prices also varied on the basis of the type of namkeens and the raw materials used to manufacture it. The cost of metalized packing also had an impact on the price, especially in the case of snack foods. The company revised the prices of its products upwards only when there was a steep increase in the raw material costs or additional taxes were imposed.

PLACE Haldiram's developed a strong distribution network to ensure the widest possible reach for its products in India as well as overseas. From the manufacturing unit, the company's finished goods were passed on to carrying and forwarding (C&F) agents. C&F agents passed on the products to distributors, who shipped them to retail outlets. While the Delhi unit of Haldiram's had 25 C&F agents and 700 distributors in India, the Nagpur unit had 25 C&F agents and 375 distributors.

Haldiram's also had 35 sole distributors in the international market. The Delhi and Nagpur units together catered to 0.6 million retail outlets in India. C&F agents received a commission of around 5%, while distributors earned margins ranging from 8% to 10%. The retail outlets earned margins ranging from 14% to 30%. At the retail outlet level, margins varied according to the weight of packs sold.

Retailers earned more margins ranging from 25% to 30% by selling 30 gms pouches (priced at Rs.5) compared to the packs of higher weights. Apart from the exclusive showrooms owned by Haldiram's, the company offered its products through retail outlets such as supermarkets, sweet shops, provision stores, bakeries and ice cream parlors. The products
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were also available in public places such as railway stations and bus stations that accounted for a sizeable amount of its sales.

Haldiram's products enjoyed phenomenal goodwill and stockists competed with each other to stock its products. Moreover, sweet shops and bakeries stocked Haldiram's products despite the fact that the company's products were competing with their own products.

PROMOTION Haldiram's product promotion had been low key until competition intensified in the snack foods market. The company tied with 'Profile Advertising' for promoting its products. Consequently, attractive posters, brochures and mailers were designed to enhance the visibility of the Haldiram's brand. Different varieties of posters were designed to appeal to the masses. The punch line for Haldiram's products was, 'Taste of Tradition.' Advertisements depicting the entire range of Haldiram's sweets and namkeens were published in the print media (magazines and newspapers). These advertisements had captions such as 'millions of tongues can't go wrong,' 'What are you waiting for, Diwali?' and 'Keeping your taste buds on their toes. 'To increase the visibility of the Haldiram's brand, the company placed its hoardings in high traffic areas such as train stations and bus stations. Posters were designed for display on public transport vehicles such as buses, and hoardings, focused on individual products were developed. Packaging was an important aspect of Haldiram's product promotion. Since namkeens were impulse purchase items, attractive packaging in different colors influenced purchases. Haldiram's used the latest technology (food items were packed in nitrogen filled pouches) to increase the shelf life of its products. While the normal shelf life of similar products was under a week, the shelf life of Haldiram's products was about six months. The company projected the shelf life of its products as its unique selling proposition. Posters highlighting the shelf life of its products carried the caption 'six months on the shelf and six seconds in your mouth.' During festival season, Haldiram's products were sold in attractive looking special gift packs.
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The showrooms and retail outlets of Haldiram's gave importance to point of purchase (POP) displays. Haldiram's snacks were displayed on special racks, usually outside retail outlets. The showrooms had sign boards displaying mouth-watering delicacies. Haldiram's also diversified into the restaurant business to cash in on its brand image. The company established restaurants in Nagpur and Delhi. The restaurant at Nagpur devised an innovative strategy to increase its business: It facilitated people who were traveling by train through Nagpur station to order food from places where stockists of Haldiram's Nagpur unit were located. The customers could order for lunch/dinner by sending a demand draft (DD) or cheque to the Nagpur unit or giving the same to specified local distributors belonging to the Nagpur unit. Along with the DD/cheque, customers had to provide information such as the name of the train, its likely time of arrival at Nagpur, their names and coach and seat numbers.

POSITIONING The above initiatives helped Haldiram's to uniquely position its brand. Haldiram's also gained an edge over its competitors by minimizing promotion costs. Appreciating the company's efforts at building brand, an analyst said, "Haldiram once was just another sweet maker but it has moved into trained brands first by improving the product quality and packaging through its clever products and brilliant distribution it had moved into the star category of brands."Haldiram's earned recognition both in India and abroad. The Nagpur unit of Haldiram's was conferred the International Food Award by the Trofeo International Alimentacion of Barcelona, Spain for having maintained high standards in quality and hygiene, at its manufacturing unit.

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1.2 Purpose of the study The present day scenario of the salted snack food segment shows an immense scope of reaching out to a vast base of customers owing to the fact that the Indian consumer has opened up to spend more amount on this segment in their weekly or monthly budget due to lack of time and wanting to utilize the time on hands in a more efficient manner than earlier. For any company to tap on this opportunity and garner maximum benefits out of this growing trend should have a proper marketing mix. Only with an effective marketing mix does a company have itself positioned in the market. Hence, this study is undertaken for the company to know more about the effectiveness of their marketing mix, where they lack or where there is a room for improvement is of utmost importance for it. Thus, for this purpose a small study has been conducted.

1.3 Context of the study The Indian market has been a shelf to many a products in the salted snack segment since time immemorial. Earlier it was only in the unorganised way that this segment used to be through home-made or gruh udyogs. Slowly it was picked up by many companies and Haldirams was the first company to introduce the Indian market with branded namkeens. It becomes essential for the company to know its positioning in the market. The study is conducted with the primary focus with factors governing the sale of the products.

1.4 Significance of the Study Though, a wide range of namkeens and chips are being marketed and the company is reaping tremendous profits out of them, but there is always a room for improvement. The integration of good sales and profit generation happens with a good marketing mix strategy. This study tries to take a look into how effective the marketing mix strategy of the company is from a retailers point, since a retailer is a seller as well as a consumer of the products of the company.

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1.5 Theoretical Framework The success of marketing depends on the development of good marketing mix plan. The marketing mix consists of everything the firm can do to influence the demand for its product.

For any company to be successful it requires serious efforts from the organisation to keep the market abreast with its products and a strong hold on the retailers so as to reach to a maximum of the consumer base. In the FMCG segment, it is of utmost importance that the company has a strong product portfolio with reasonable pricing as well as a strong distribution network (place) supported by good promotions. The right mix will achieve marketing objectives and result in customer satisfaction:

Product - this has to look and taste good and be made from wholesome ingredients.

Price - the price has to be attractive to ensure enough sales to generate a profit.

Place - the place and position of the product in the market is important to compete for market share.

Promotion - this has to fit the companys objectives for the product.

1.6 Definitions Marketing Mix: A series of variable factors used by an organisation to identify appropriate strategies to meet customer needs.

FMCG: is the abbreviated form of fast moving consumer goods. They are products that are sold quickly and at relatively low cost.

1.7 Summary The salted snack food segment in the FMCG industry has been on a rise and has been generating competition from leading brands and also from regional players. For generating more market share and attracting more consumer base the companies have been steadily

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diversifying its product mix, creating lucrative offers for the retailers to attack its competitors and promoting the products aggressively.

The competition has just begun to get healthier and still has huge potential consumer base to be reached to. In this approximate homogenous market, Haldirams need to place itself above the competitors by providing for an excellent supply of its products and more below the line promotions for the retailers to be more loyal towards the company.

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CHAPTER 2: LITERATURE OF REVIEW

FMCG- A Roadmap to India 2020 prepared by Booz & Company Inc for the Confederation of Indian Industry (CII) talks in length about the boost in the FMCG sector, its growth, trends as well as the implication for the FMCG industry. This report has helped me with knowing the trends that exist in the Indian market and that shall grow in the upcoming years.

Social Changes and the Growth of Indian Rural Market: An Invitation to FMCG Sector - covers the attractions for the FMCG marketers to go to rural, the challenges, the difference between the rural and the urban market and the suitable marketing strategy with the suitable example of companies and their experience in going rural. This report has helped me understand the importance of capturing of the rural market in the present day context.

Opportunities in the Packaged Food Market in India - The processed food segment in India is currently at a very nascent stage. This article has helped me in knowing the drivers that result in the significant growth in the market such as changes on the demand as well as supply side such as increasing urbanisation, need for convenience, health consciousness, increased penetration of organised retail, improved cold chain infrastructure and entry of international players.

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CHAPTER 3: RESEARCH METHODOLOGY & PROCEDURE

3.1 Purpose of the Study The main objective of the study is to know the effectiveness of the marketing strategy used by the company

3.2 Research Design The research design of the study is descriptive in nature since it provides an answer to the six Ws as discussed below: Who is considered? The retailers from urban, semi-urban and rural market of the city are considered. What information should be obtained? a) To know the product mix maintained by the retailers. b) To know the contribution of the promotional schemes in generating sales for the company. c) To know the distribution network of the company. d) To study the possible pricing strategy to be adopted by Haldirams as a voice of the retailers.

When should the information be obtained from the respondents? Early in the day before lunch since, the retailers tend to co-operate well during starting hours of the business rather than post lunch session of the business.

Where the respondents should be contacted to collect the information? In their shops during the business hours.

Why are we obtaining the information from respondents? To know the effectiveness of the marketing strategy used by the company and to know its pitfalls if any.

In what way are we going to obtain the information? The information is obtained with the aid of a structured questionnaire through personal interview of the respondent.
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Primary data has been collected through intensive fieldwork from the sample respondent with the aid of a structured questionnaire.

3.3 Research Questions

1) To know the Product Mix of Haldirams maintained by the retailers. 2) To know the impact of Promotions on the sale of Haldirams products. 3) To study the possible pricing strategy to be adopted by Haldirams as a voice of the retailers. 4) To study the distribution channel Haldirams products.

3.4 Participants The participants has retailers from various parts of the city like the class A, class B and class C markets as well as the rural markets of the city. The sampling done here was quota sampling due to the wide division in the market classes. The number of respondents taken from class A market were 20, those taken from class B as well as class C markets were 35 each while rest were taken from the rural market. The total number of respondents taken was 120.

3.5 Data Collection

The data is collected through intensive field work by meeting the retailers personally and collecting the data with the help of a structured questionnaire of which the results are discussed later in the report. The questionnaire method was selected because it translated the information needed into a set of specific question that the respondents can and will answer. The questionnaire motivates and encourages the respondents to become involved in the interview to co-operate, and to complete the interview.

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3.6 Instrument Used The research instrument for the marketing mix of Haldirams products was a closed questionnaire with 14 questions for each segment of chips as well as namkeens for the retailers through which various aspects of effectiveness of the marketing strategy used by the company are examined. Question 4 tells the overall features that give the company its fair place in the market. Many other questions tell us the link between the promotions of the company with the market area in which the company distributes its products. Another question judges the importance of the customization of the packet sizes with respect to the market areas in which the company distributes its products. An answer to questions 12 and 13 tells us the relativity between the companys distribution patterns with respect with the distribution area it covers. Question 14 provides with an answer to the motivational factors for the retailers that shall lead for the betterment of the companys sales and profits.

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CHAPTER 4: DATA ANALYSIS AND FINDINGS

4.1 Review of Methodology

The survey was conducted through personal interviewing the retailers with the aid of personal questionnaire. The prime intention of the survey was to know if the marketing mix strategy used by the company is effective or not. The sample size of the respondents was 120 retailers. The data analysis is as follows:

4.2 Results of research Questions

1) Do you stock Haldirams Products?

Findings:

Product Stock Cumulative Frequency Percent Valid Percent Valid YES 120 69 189 63.5 36.5 100.0 100.0 Percent 100.0

Missing System Total

As the above interpretation tells us, 100% of the retailers stock Haldirams products.

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2) Do you stock Haldirams Namkeen?

Findings: Namkeen Stock Cumulative Frequency Percent Valid Percent Valid YES 120 69 189 63.5 36.5 100.0 100.0 Percent 100.0

Missing System Total

As the above table shows, cent percent of the retailers stock Haldirams Namkeens.

3) Do you stock Haldirams Chips?

Findings: Chips Stock Cumulative Frequency Percent Valid Percent Valid YES No Total Missing System Total 116 4 120 69 189 61.4 2.1 63.5 36.5 100.0 96.7 3.3 100.0 Percent 96.7 100.0

The above frequency chart tells us that 96.7% of the total retailers stock Haldirams Chips.

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4) Which company according to you is performing better with respect to the other in Chips segment?

45 40 35 30 25 20 15 10 5 0
Lehar Frito Lays Haldirams Parle Itc Series1

As seen from the above bar chart, it can be very well seen that Haldirams chips are performing very well with respect to the other companies followed by Lehar Kurkure and Frito-Lays.

5) Which company according to you is performing better with respect to the other in Namkeen segment?

80

70
60

50 40 Series1
30

20
10

0 Haldiram's Balaji Garden SKSM Lehar Others

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As seen from the above bar chart, it is seen that Haldiram Namkeens are the leaders in this segment with Balaji Namkeens and Garden Namkeen trailing behind.

6) On a scale of 5 how will you rate the following features of Haldiram products? (1= low rating 5= high rating)

Findings: Case Processing Summary N Cases Valid Excludeda Total 120 69 189 % 63.5 36.5 100.0

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics Cronbach's Alpha .731 N of Items 5

Here as we can see that the Cronbach Alpha value is 0.731 which is greater than the expected value of 0.6, hence we can conclude that the samples collected is very reliable and that the companys products features are having excellent features.

7) Are the products of the Haldiram displayed at the point of purchase?

Q7 * Display Crosstabulation

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Count Display YES Q7 YES No Total 71 27 98 No 20 2 22 Total 91 29 120

As seen from the above table, by cross-linking the questions 7 and 8, we can see the importance of the displays at the point of purchse. As many as 60% of the retailers say that they keep the products of Haldirams at the point of purchase and also that it plays a vital role in selling of the products.

8) Does the display play any role in influencing the customer buying for Haldiram products? 9) What is the general buying habit of the customer?
Display * Q9 Crosstabulation Count Q9 selected product Choose product Display YES No Total 50 14 64 48 8 56 Total 98 22 120

As seen in the above table with the help of cross-tabulation, cross-linking the role of display and the general buying behaviour of the customers, i.e., question 8 and question 9 tells us that almost equal number of respondents say that customers not only buy the products that they had come to purchase but also many customers come and chose products due to their display. Hence, we can conclude that display plays an important role in influencing the customers buying pattern.

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10) Do you generally exhi it Hal irams products before other products?
Q10

Frequency Vali YES

Percent

Vali Percent .

3.3 .

3 .

tal

3.

Mi

ing

System

3 . .

tal

The above table tells us the percent of retailers who generally exhibit the products of Haldirams prior to products of any other company which is 43.3%. 11) If yes, then please specify why

45% p y
# # " $  "    !  

g c


23%

From the above chart we can see that the company has a strong goodwill in the market. A whopping 45% of the retailers say that the quality of the products of the company is good while 32% say that the company maintains good relations with them
27

!

   ! $

cus

e s w ys sk f

 

 

32%

qu

y sw e

  

              

umulative Percent 3.3 .

which motivate them to sell the companys products. 23% retailers said that the customers ask for the products of the company. Hence, it can be seen that the company has a very good reputation in the market. It has made its channel of distribution very strong by maintaining good relations with the retailers as well as a good image with the customers which translates into its successful conversion into sales.

12) Do you think that Haldirams customization of packet sizes with respect to the market has helped in more selling of its products?

Case Processing Summary Cases Valid N Q12 * Qma 120 Percent 63.5% N 69 Missing Percent 36.5% N 189 Total Percent 100.0%

Q12 * Qma Crosstabulation Count Qma A Q12 YES No Total 21 1 22 B 45 4 49 C 25 8 33 R 12 4 16 Total 103 17 120

Ho: The customization of packet sizes does not help in selling more products. H1: The customization of packet sizes help in selling more products.

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Here, the Pearsons Chi-Square is 7.427 as shown by the test, which is more than that of the significance level of 0.05, so, We reject the Null hypothesis in favour of the Alternate hypothesis. Hence, we can conclude that customization of the packet sizes with respect to the markets has helped the company in selling more of its products and generate better sales.

Chi-Square Tests Asymp. Sig. Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 120 7.427a 7.521 6.248 Df 3 3 1 (2-sided) .059 .057 .012

a. 3 cells (37.5%) have expected count less than 5. The minimum expected count is 2.27.

13) Do you think the pricing technique used by Haldirams, i.e., using 75% extra promotional packs on namkeens etc. helping to sell more of its product.

Case Processing Summary Cases Valid N Q13 * Qma 120 Percent 63.5% N 69 Missing Percent 36.5% N 189 Total Percent 100.0%

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Q13 * Qma Crosstabulation Count Qma A Q13 YES No Total 21 1 22 B 30 19 49 C 11 22 33 R 6 10 16 Total 68 52 120

Chi-Square Tests Asymp. Sig. Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 120 23.604a 27.462 19.503 df 3 3 1 (2-sided) .000 .000 .000

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 6.93.

Ho: The pricing techniques used do not help generate more sales. H1: The pricing techniques used help generate more sales. Here we got Pearson Chi-Square Value as 23.604, which is more than the significance level of 0.05, so We reject the Null Hypothesis in favour of the Alternate Hypothesis. We can conclude that the promotional pricing strategies used by the company help generate more sales.

14) Is the receipt of the stock on time?

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Case Processing Summary Cases Valid N Q14 * Qma 120 Percent 63.5% N 69 Missing Percent 36.5% N 189 Total Percent 100.0%

Q14 * Qma Crosstabulation Count Qma A Q14 YES No Total 20 2 22 B 37 12 49 C 17 16 33 R 3 13 16 Total 77 43 120

Chi-Square Tests Asymp. Sig. Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 120 26.235a 27.472 25.178 df 3 3 1 (2-sided) .000 .000 .000

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.73.

H0: The Receipt of stock is different for different regions H1: The Receipt of Stock is indifferent for different regions
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Here we got Pearson Chi-Square Value as 26.235, which is more than the significance level of 0.05, so We reject the Null hypothesis in favour of Alternate hypothesis. Hence we conclude that different regions Class A, Class B, Class C & Rural areas are receiving stock in similar manner. Also, from cross-linking the market area with the receipt of stock of the products, it shows that as the class of the market goes down so does the reception of stock on time. Hence, it can also be concluded that the company needs to stress upon its distribution more so as to generate better sales of the products.

15) Are the expected demands fulfilled by the distributor? Case Processing Summary Cases Valid N Q15 * Qma 120 Percent 63.5% N 69 Missing Percent 36.5% N 189 Total Percent 100.0%

Q15 * Qma Crosstabulation Count Qma A Q15 Total YES No 22 0 22 B 32 17 49 C 18 15 33 R 3 13 16 Total 75 45 120

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio 27.322a 34.596 df 3 3 Asymp. Sig. (2-sided) .000 .000
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Linear-by-Linear Association N of Valid Cases

25.273 120

.000

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 6.00. H0: The demands are not fulfilled by the distributors. H1: The demands are fulfilled by the distributors. Here we got the Pearsons chi-square as 27.322 which is more than the significance level of 0.05, so, We reject the Null Hypothesis in favour of the Alternate Hypothesis So we can conclude that the demands of the retailers are fulfilled by the distributors.

16) What facilities or provisions will motivate you to personally sell a product of a Haldirams?

Cross- Tabulation

Case Processing Summary Cases Valid N Q16_1 * Qma Q16_2 * Qma Q16_3 * Qma Q16_4 * Qma Q16_5 * Qma 120 120 120 120 120 Percent 63.5% 63.5% 63.5% 63.5% 63.5% N 69 69 69 69 69 Missing Percent 36.5% 36.5% 36.5% 36.5% 36.5% N 189 189 189 189 189 Total Percent 100.0% 100.0% 100.0% 100.0% 100.0%

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Q16_1 * Qma Crosstabulation Count Market Area A Q16_1 Best 2 3 4 Worst Total 16 2 1 2 1 22 B 17 15 8 6 3 49 C 13 10 4 2 4 33 R 7 4 3 1 1 16 Total 53 31 16 11 9 120

By cross-linking the area of market and the provisions that should be provided by the company, it is found that a total of 53 respondents out of 120, i.e, almost 44% said that there is a need of greater margin that should be provided by the company which would facilitate them in selling of the companys product more.

Only 7.5% respondents said that provision of margin is a least motivating factor to sell the companys product

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Q16_2 * Qma Crosstabulation Count Qma A Q16_2 Best 2 3 4 Worst Total 0 8 7 0 7 22 B 12 12 16 5 4 49 C 10 9 9 2 3 33 R 4 5 3 1 3 16 Total 26 34 35 8 17 120
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As shown in the cross-tabulation between the market area and that of the provision of better services by the distributor, of the total respondents only 26 feel that it is of utmost importance while 17 feel that it is of least importance while more than 50% feel that it is of lesser importance than the other facilities that should be provided so as to motivate them to sell the companys products. This shows that the retailers are content with the channel and the manner of distribution of the company.

Q16_3 * Qma Crosstabulation Count Qma A B C R Total

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Q16_3 Best 2 3 4 Worst Total

0 3 2 13 4 22

1 5 6 18 19 49

1 4 3 16 9 33

0 1 3 8 4 16

2 13 14 55 36 120

The cross-linking between the market area and that of better schemes provision of the company shows that almost 75% respondents feel that there is not much need of better schemes provision by the company which will help them motivate to sell the companys products.

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Q16_4 * Qma Crosstabulation Count Qma A Q16_4 Best 2 3 4 Worst Total 5 8 8 1 0 22 B 15 13 13 6 2 49 C 8 6 14 5 0 33 R 3 5 5 1 2 16 Total 31 32 40 13 4 120

As is shown in the above cross-link between the various market areas and the availability of the whole product range, it shows that almost 50% and above respondents think that the availability of the whole product range should be provided to them in order to motivate them to sell more of the companys products.

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Q16_5 * Qma Crosstabulation Count Qma A Q16_5 Best 2 3 4 Worst Total 1 1 4 6 10 22 B 4 4 6 14 21 49 C 1 4 3 8 17 33 R 2 2 2 4 6 16 Total 8 11 15 32 54 120

On the last facility asked, the cross-linking of the market area with the provision of rack and hangers shows that almost 72% of the retailers do not find it as a way of motivation to make extra efforts to sell the company products.

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4.3 Summary of Findings

From the first three questions it is evident that Haldirams has a strong place in the market. All the retailers have given space to the companys products in their shops. This shows strong placement of the company in the market.

The display plays a vital role in selling of the products of the Company which is advantageous and also helps understand its low budget for the promotions. The brand in itself is well established with the retailers that it doesnt need much advertisements or promotions except the occasional news ad prints, radio promotions during the festival season or when it launches a new product to push its sells up in the market.

It is also seen that the company has a strong goodwill in the market. The company has maintained its relations with the retailers which easily explain in them wanting to display its
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products even when the company is short of display racks and hangers. Thus, the company is keeping a strong hold in the market with the help of a very primitive but effective style of promotions, i.e., good faith. This easily explains its low spending on the promotions of the products.

A strong distribution channel in the city market adds to the companys advantage but it needs to concentrate more on the rather untapped and more profit generating avenue, the rural market.

Thus, the marketing strategy so far used by the company is effective.

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CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS

5.1 Summary of Findings

From the first three questions it is evident that Haldirams has a strong place in the market. All the retailers have given space to the companys products in their shops. This shows strong placement of the company in the market.

The display plays a vital role in selling of the products of the Company which is advantageous and also helps understand its low budget for the promotions. The brand in itself is well established with the retailers that it doesnt need much advertisements or promotions except the occasional news ad prints, radio promotions during the festival season or when it launches a new product to push its sells up in the market.

It is also seen that the company has a strong goodwill in the market. The company has maintained its relations with the retailers which easily explain in them wanting to display its products even when the company is short of display racks and hangers. Thus, the company is keeping a strong hold in the market with the help of a very primitive but effective style of promotions, i.e., good faith. This easily explains its low spending on the promotions of the products.

A strong distribution channel in the city market adds to the companys advantage but it needs to concentrate more on the rather untapped and more profit generating avenue, the rural market.

Thus, the marketing strategy so far used by the company is effective.

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5.2 Discussion of Research Questions To analyze the Marketing mix of the company as a voice of the retailer:

Product: There are as many as 200 (approximate measure) competitors in the salted snack segment by the way of unorganised retails (gruh udyog in Nagpur region) and almost 5-7 leading brands, international as well as national brands. The products of the various competitors are almost similar if not same and also the product range. The company is going strong by diversifying its product portfolio, the latest example being three months old product Potato Lite which is doing reasonably good since its launch as told by the retailers.

Price: The Pricing of the products is at par with pricing of the leading competitors in the smaller pack size. The pricing strategy used for the bigger packages, i.e., more than Rs.10 packs product-quality pricing is used by the company as it charges a wee bit higher pricing, since, the buyers of such packages are mainly people from the middle-class and above.

Promotions: Being a well established brand all across the country and having a strong hold in the region where its main factory unit is set up, the company enjoys its share of brand value here. The company needs minimalistic promotions for its products. The above the line promotion consists of advertisements is in the form of local news paper prints and ad prints in the local magazines supplemented with the news paper. Another way in which it promotes its products is by the way of its distribution vehicle. The three-tyre vehicle has Haldirams products painted on three sides. Hence, a cheaper way of promotions is used by the company. Though, its below the line promotion needs some reconsiderations. The retailers have nittygritty grievances such as lower margins, unavailability of the whole product range etc. which if tended to can add to the profits of the company by manifolds.

Place: Being the local company of the Nagpur region, the company has a very strong distribution channel in the city. But the rural market needs to be taken care of, since companies like PepsiCo. and Balaji have started with their strengthening operations in the region.

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5.3 Recommendations The phrase SMALL IS BIG aptly justifies the findings of the project. The company needs to take care of the smaller things in order to make the sales revenue shoots up. Minor problems of the retailers, if tended to, can yield more profit for the company.

The retailers in the urban area though maintaining a good relation with the company have an advantage of higher margins with the other companies. If this problem is looked upon by the company then greater sales can be generated.

Complete product range needs to be provided to the retailers in order to generate more loyalty towards the brand. But for this the company needs to balance the demand and supply of the products by increasing the production.

The company needs to take care of the rural market more since, it a market yet untapped by other companies in a way Haldirams has. Though the distribution is still weak in this area, if worked upon will garner more loyal retailers than in the urban areas.

5.4 Limitations

The study was undertaken in the Nagpur region only.

Since, many retailers were unable to provide with proper answers, instead of quota sampling for various market areas, judgemental sampling was used.

The project studies the marketing mix strategy of the company on the superficial grounds.

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CHAPTER 6: REFERENCES

Mohankumar T.P. and Shivaraj B.(2010): Product Mix Strategies: FMCG in Indian Market

Rohit Chadha, Rohit Bhatiani, Sajani Mrinalini Dutta: Opportunities in the Packaged Food Market in India

y
y

Priya Jha (2009): Visual Display Booz and Company for CII(2010): FMCG- A Roadmap to India 2020 Social Changes and the Growth of Indian Rural Market: An Invitation to FMCG Sector

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APPENDIX A

QUESTIONNAIRE:
1) Do you stock Haldirams Products? y Yes y No 2) Do you stock Haldirams Chips? y Yes y No 3) Which company according to you is performing better with respect to the other in Chips segment? Lehar FritoHaldirams Parle ITC Balaji Lays Lehar Frito-Lays Haldirams Parle ITC Balaji

4) On a scale of 5 how low rating 5= high) Quality 1 Quantity 1 Price 1 Brand Name 1 Taste 1

will you rate the following features of Haldiram products? (1= 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5

5) Are the products of the Haldiram displayed at the point of purchase? y Yes y No 6) Does the display play any role in influencing the customer buying for Haldiram products? y Yes y No

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7) What is the general buying habit of the customer? y They come with the product in their mind y They come to the store and then choose 8) Do you generally exhibit Haldirams products before other products? y Yes y No 9) If yes, then please specify why _____________________________________

10) Do you think that Haldirams customization of packet sizes with respect to the market has helped in more selling of its products? y Yes y No 11) Do you think the pricing technique used by Haldirams, i.e., using 75% extra promotional packs on namkeens etc. helping to sell more of its product. y Yes y No y Cant Say 12) Is the receipt of the stock on time? y Yes y No 13) Are the expected demands fulfilled by the distributor? y Yes y No

14) What facilities or provisions will motivate you to personally sell a product of a Haldirams? (rank order 1=highest preference and 5=lowest preference ) y Greater Margins y Better Services by the distributor y More schemes from the company y Availability of the whole range y Racks and Hangers from the company Thank You for sparing your valuable time! Name of Retail Shop: Area:
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APPENDIX B

QUESTIONNAIRE:
1) Do you stock Haldirams Products? y Yes y No 2) Do you stock Haldirams Namkeen? y Yes y No 3) Which company according to you is performing better with respect to the other in Namkeen segment? Haldiram Balaji Lehar Garden SKSM Others Haldiram Balaji Lehar Garden SKSM Others

4) On a scale of 5 how low rating 5= high) Quality 1 Quantity 1 Price 1 Brand Name 1 Taste 1

will you rate the following features of Haldiram products? (1= 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5

5) Are the products of the Haldiram displayed at the point of purchase? y Yes y No 6) Does the display play any role in influencing the customer buying for Haldiram products? y Yes y No 7) What is the general buying habit of the customer?
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y y

They come with the product in their mind They come to the store and then choose

8) Do you generally exhibit Haldirams products before other products? y Yes y No 9) If yes, then please specify why _____________________________________ 10) Do you think that Haldirams customization of packet sizes with respect to the market has helped in more selling of its products? y Yes y No 11) Do you think the pricing technique used by Haldirams, i.e., using 75% extra promotional packs on namkeens etc. helping to sell more of its product. y Yes y No y Cant Say 12) Is the receipt of the stock on time? y Yes y No 13) Are the expected demands fulfilled by the distributor? y Yes y No 14) What facilities or provisions will motivate you to personally sell a product of a Haldirams? (rank order 1=highest preference and 5=lowest preference ) y Greater Margins y Better Services by the distributor y More schemes from the company y Availability of the whole range y Racks and Hangers from the company Thank You for sparing your valuable time! Name of Retail Shop: Area:

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