case on haldiram clcb037

8/13/2019 Case on Haldiram CLCB037

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ICMR Case Collection

ICFAI Center for Management Research

This caselet was written byAji th Sankar R. N, under the guidance of Sanjib Dutta,ICFAI

Center for Management Research (ICMR). Caselets are intended to be used as a basis

for class discussion rather than to illustrate either effective or ineffective handling of a

management situation.

Haldiram's: The No: 1 Choice of ConsumersCLCB037

!2005, ICFAI Center for Management Research. All rights reserved. No part of this publication maybe reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or byany means- - electronic or mechanical, without permission.

To order copies, call +91-40-2343-0462/63 or write to ICFAI Center for Management Research, Plot# 49, Nagarjuna Hills, Hyderabad 500 082, India or email [email protected]. Website: www.icmrindia.org

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CLCB/037

Haldirams: The No: 1 Choice of Consumers

Haldirams, a household name in ready-to-eat snack foods in India, offered a wide

range of products to its customers. The product range included namkeens (savories),

sweets, sharbats, bakery items, dairy products, papads, and ice-creams. Namkeens

remained the main focus area for the group. By specializing in the manufacture of

namkeens, the company created a niche market.

Haldirams sought to customize its products to suit the tastes and preferences of

customers from different parts of India. For example, it launched Murukku, a South

Indian snack, and Chennai Mixture for south Indian customers. Similarly,

Haldirams launched Bhelpuri,keeping in mind customers residing in western India.

The company offered its products in gift packs during the festival season. These

measures helped Haldirams compete effectively in a market that was flooded with a

variety of snack items in different shapes, sizes, and flavors.

Haldirams offered its products at competitive prices. The companys pricing strategy

took into consideration the price conscious nature of consumers in India. Haldirams

launched namkeens in small packets of 30 grams, priced as low as Rs 5. The

company also launched namkeens in five different packs with prices varying

according to their weights.

Apart from the exclusive showrooms owned by Haldirams, the company offered itsproducts through retail outlets such as supermarkets, sweet shops, provision stores,

bakeries, and ice cream parlors. The products were also available in public places

such as railway stations and bus stations that accounted for a sizeable amount of

its sales.

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Haldiram's: The No: 1 Choice of Consumers

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Haldirams products enjoyed phenomenal goodwill and stockists competed with each

other to stock them. Moreover, sweet shops and bakeries stocked Haldirams products

despite the fact that the companys products were competing with their own products.

Haldirams also offered its products through the Internet. In order to sell its products

over the Internet, the company had arrangements with portals like indiatimes.com,

giftstoindia.com, giftssmashhits.com, tohfatoindia.com, indiamart.com,

mumbaiflowersgifts.com, chennaiflowersgifts.com and channelindia.com.

Haldiram also used attractive posters, brochures, and mailers to enhance the visibility

of its brand. Different varieties of posters were designed to appeal to the masses. The

punch line for Haldirams products was, Always in good taste. Advertisements

depicting the entire range of Haldirams sweets and namkeens were published in the

print media (magazines and newspapers). These advertisements had captions such as

millions of tongues cant go wrong, What are you waiting for, Diwali? and

Keeping your taste buds on their toes.

To increase the visibility of the Haldirams brand, the company placed its hoardings

in high traffic areas such as train stations and bus stations. Posters were designed fordisplay on public transport vehicles such as buses, and hoardings. Captions such as

yeh corn hain (this is corn), chota samosa big mazaa (small samosa big

entertainment), yeh Kashmiri mix khoob jamega(this namkeen item will gel well)

and oozing with taste (for Rasgollas) promoted individual products. For those

customers who wanted to know more about Haldirams products, special brochures

were designed which described the products and gave information about the

ingredients used to make them. Mailers were also sent to loyal customers and

important corporate clients as a token of appreciation for their patronage.

Packaging was an important aspect of Haldirams product promotion. Since

namkeens were impulse purchase items, attractive packaging in different colors was

used to influence purchases. Haldirams 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 Haldirams

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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

the festival season, Haldirams products were sold in attractive looking special

gift packs.

The showrooms and retail outlets of Haldirams gave importance to point of purchase

(POP) displays. Haldirams snacks were displayed on special racks, usually outside

retail outlets. The showrooms had sign boards displaying mouth-watering delicacieswith captions such as Chinese Delight, Simply South, and The King of all Chats.

Posters containing a brief account of the history of Haldirams, along with pictures of

its products, were also on display at these showrooms.

Questions for Discussion:

1. What were the ways in which Haldirams influenced the decision making of theconsumers?

2. What were the marketing strategies followed by Haldirams to ensure that itsproducts became the No 1 choice among the consumers?

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Additional Readings & References:

1. Haldiram launches summer sip, www.financialexpress.com, April 22, 2000.2. About competition and their strategies, www.blonnet.com, June 15, 2000.3. Chatterjee, Purvita, All pep and picnic, www.blonnet.com, January 4, 2001.4. Kumar, Ramesh, Selling smartly against the odds, www.blonnet.com,

December 27, 2001.

5. Mother dairy, Bikanerwala tie up to launch namkeens,www.financialexpress.com, January 2, 2002.

6. Unorganized markets and marketing mix elements (FMCG),www.blonnet.com, March 22, 2002.

7. Its snack time folks! www.blonet.com, June 15, 2002.8. Bhushan, Ratna, Snacking gets cracking, www.blonnet.com, November

14, 2002.

9. Kukreja, Shalini, It all snacks up, Brand Equity, Economic Times, December11, 2002.

10. www.haldiramsusa.com.11. www.haldiram.com.12. www.chennaiflowersgifts.com.13. www.mumbaiflowersgifts.com.14. www.indiamart.com.DoNo

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