HALDIRAMS: Getting the 4 Ps Right

Background

Started in 1937 as a small time sweet shop in Bikaner, Rajasthan Till the early 1990s, Haldiram's comprised of three units, one each in Kolkata, Nagpur and New Delhi. The product range though diverse, nankeens remains the main focus area for the group contributing close to 60% of its total revenues In the early 1990s, Haldiram's witnessed an informal split between its three units as they started operating separately offering similar products and sharing the same brand name

Timeline

1937 : Established 1941 : Haldiram Bhujiyawala name adopted 1950 : Kolkata small mfg unit established 1970 : Large mfg unit estd at Nagpur 1983 : Retail outlet in New Delhi 1992 : mfg unit+retail outlet in Delhi outskirts 1993 : Syrups and crushes launched 1995 : Restaurant in New Delhi; bakery items added 1997 : Namkeen mfg unit at Delhi; extruded wafers etc,milk products added to portfolio

Product Mix

SWEETS: soan papri orange/cocunut/elichi FRESH SWEETS: orange burfee,dry fruit ladu,kaju katli PAPAD DRINKS badam,mango, thandai,kala khatta BHUJIA PRODUCTS Canned sweets:gulab jamun, cham cham (dry form of rasgulla), petha cubes, rajbhog BAKERY:donuts,bread,cream roll,khari

CORE COMPETENCY

Bhujia

& Namkeen

Traditional

Recipies

Pricing
Bhujia & Namkeens: Sold in packages ranging from 50 grams to 1kg Prices range from Rs.5 to Rs. 170 Exports in sizes of 160 grams or larger. Sweets:

Pricing depends on ingredients Typically sold and exported in 1kg packages, though some sweets are available in 200gram sizes.

 Value

Exploration

Demand for Bhujia & Namkeen Demand from Indians overseas

Value

Delivery

Mfg. unit in Kolkata Retail outlet in New Delhi Export all over the world

Differentiation

Unique taste Long shelf life Hygienic manufacture Attractive and functional packaging

Adapting to Environment

Higher number of outlets in Delhi owing to increased demand Location specific Products Eg Chakli, Bakharwadi in Maharashtra, Murukku in South India, Mathri and Mini Samosas in North and Central India Import of American machinery to produce potato based products

Customer Focus & Value Creation

First mover advantage Hygienic with long shelf life

Long history of quality products Functional & attractive packaging

Unique taste Restaurants in Delhi and Nagpur

Supply Chain
C&F

25 agents 5% commission

Distributors

700 distributors 8-10% margin

Retail

20-30% margin Available throughout, retailers, supermarkets, public locations, internet purchases ; Tie-up with modern trade outlets like Mother Dairy and Reliance fresh.

Suggested Strategies for Future

Product:

Introduce Masala's for home made snack items Stick to Core Competence and choose a product line in tune with core competence instead of diversifying Merge all three entities into a parent company Make less spicy products for the american and european markets

Price:
Offer

2 variants in terms of price : 1 nitro packed and long shelf life and 1 having lesser shelf life of maybe a month and save on costs Price the exports at premium prices and claim a niche Do seasonal pricing: increase prices by a couple of rupees per pack in high season

Place:
Tie

up with retail majors etc to become the house brand (Future Snacks by Haldirams etc) Move low priced variants to tier 2-3 cities and villages Open Highway restaurants

Promotion:

Use space available in outlets and restaurants effectively to showcase premium products Use space available on the packets to display other items also available by Haldirams Tie up with Small Tea and Samosa Stalls to disburse goods in Haldirams branded paper plates etc Use a door to door selling scheme during festivals create their own website to deliver food to train passengers in at least 20 major junctions

THANK YOU