CHAPTER 1

1
 INTRODUCTION
This project is done under the title “Sales Promotion”.

Preparing this project I went to each and every distributors & retailers because I was doing market
research for sales promotion of “Haldirams”. It included, total market volume that is being sold in
grocery shop, small shops and from distributors and retailers shopping malls like big bazaar, and
others were chips and namkeens are sold.

I went to the retailers and saw the chips and Namkeens there I observe the following things:

 Whether haldiram product is available or not at that shops.

 If not then i saw of which company product is available.
 How much sale is of that particular product?
 What is the strength of that particular product?
 Did that shop had so many brands of chips and namkeens?

And if i get haldiram product, i used to ask the sales volume, response and thus came to know
interest of retailers & consumers.

If i didn’t get haldiram product, I used to ask about the other products margin, what’s the margin of
sales promotion difference between Haldiram and other brands, and then comparing the competitors
product and margin provided by them.

After all I prepared a survey report and then analyses the data which was
collected from market. And then come to a conclusion on the basis of that analyzed data and
information. Thus, after all these only it was possible to make a meaningful and useful project
report.

2
 OBJECTIVES

The objective of the project is

 To study the sales promotion concept of Haldiram’s.

 To study the marketing mix of Haldiram’s.

 To study the behaviour of the consumer with respect to attributes such as

Brand advertisements and come up with recommendations as to what all
needs to be considered keeping the consumer in mind.

 To analyze Haldiram’s competitor and compare their sales promotion

strategies with recommendations for any problem being faced by it.

 To study the marketing strategies of Haldiram’s.

 To study the promotion knowledge of Haldiram’s.

 To analyze the market structure of Halidram’s.

3
 METOHDOLOGY
The study is an exercise involving estimation of parameters as regard to
organizational requirements- Research was designed so as to get the relevant
information that can be used for various organizational purposes.

DATA SOURCE:

DATA SOURCE

PRIMARY SECONDARY
DATA DATA

Research included collecting both primary and secondary data.

PRIMARY DATA is the first hand data, new data gathered to help solve the
problem at hand. Data is collected personally for the specific project through research.
Questionnaire was prepared to gather information on the company marketing and
services.

SECONDARY DATA is the is the second hand data collected by someone else with
is gathered through internet, publications, articles, company books, etc.

DATA COLLECTION:

The data collection method used was none other than survey method which is usually
incorporated for collection of raw information. The survey method is advantageous
because it helps to collect a great deal of information about an individual respondent.

DATA
COLLECTION

STATISTICAL
SURVEY SAMPLING
TOOL

4
 Survey:

The type of survey undertaken was that of sample type keeping in consideration the
time constraint and paraphemalic, besides the viability of census survey. The sample
survey thus being taken to the right path to reach the desired destination was carefully
planed to convert of the operation by using selected samples.

Statistical Tool:

The tool for obtaining the information was questionnaire. A structured questionnaire
was administered. The questionnaire was designed in the view both major and minor
objective of study.

Sampling:

With the customer being unknown and given the time and resource constraints
random sample was obtained from different people.

Data completion and analysis:

After the data was collected, it was tabulated and findings of the project were
presented followed by analysis and interpretation to reach certain conclusions.

5
 CHAPTERISATION

The entire research work will run into five chapters. The first chapter is on introduction which
brings out the importance of the study, and states its objectives. It also include methodology.
Chapter 2 will contain company profile – (a)General profile and (b)Functional profile. A quick look
on subjective well-being will also be carried out in conceptual profile in chapter 4-finding and
analysis and discussion will be done in chapter 4-suggestions for further research will be presented
in chapter 5. Followed by Annexure and Bibliography.

6
 Chapter 2

7
 GENRAL PROFILE

 BACKGROUND
 MISSION
 COMPANY PROFILE
 SWOT ANALYSIS
 AWARDS AND ACHIEVEMENTS
 FUTURE PLANS

8
9
 BACKGROUND

HALDIRAM – is a name associated with consumers for sweets and namkeens for the
past six decades in India and abroad. It made its modest start in the beginning 1941 in
Bikaner in the State of Rajas than. Today the company has diversified into snack
food, sweets, syrups, biscuits and fast food. It is the leader in the Namkeens segment
with a 70% of that total share in the market.

Haldiram’s is a huge brand and has diversified its activities into various industries.
The one industry where it is the king right now is the “namkeens” industry. Hence the
project mainly focuses on studying Haldiram’s namkeen division, though other areas
have been briefly mentioned.

Haldiram’s offers a wide range of products to its customers. The product range
includes namkeens, sweets sharbats, bakery items, dairy products, chips, pappad and
ice creams. However namkeens remain the main area of focus for the group as it
contributes close to 60% of its total revenues. By specializing in the manufacturing in
the namkeen market the company has created a niche market. The raw materials used
to prepare namkeens are of best of quality and are sourced from all over India.

The food industry in India is forever changing to suit their consumers’ palate,
preference and pocket. All the players in the industry thus, have to constantly adapt to
the ever-changing trends and invent and re-invent themselves to stay in the league.

Haldiram’s competes on the basis of numerous factors including brand recognition

due to distinct packaging, product quality, traditional taste and authentic Indian
flavour.

10
 Mission

HALDIRAM’S mission is to:

• make available authentic, tasty and quality vegetarian food products

made as per global standards at reasonable cost, in India or abroad;
• remain ahead of competitors through product-innovation, adopting
new technologies and achieve optimum cost of production;
• always abide by law and care environment;
• provide a friendly working environment that attracts best talent and
offers opportunity to our employees to excel and build career;
• provide growth opportunity to all stakeholders including Stockists,
distributors, retailers, suppliers, etc.;
• be a debt free company, as far as possible;
• Enhance shareholders net worth; and
• Contribute for social causes (Return to society).

11
 COMPANY PROFILE
HaldiRam’s Corporate Success Story – Dreams Blooming into Reality

The man behind the success…

Mr. Manohar Lal Agarwal

HaldiRam’s : The Company which is today synonymous with Indian snacks and sweet food
market started the first chapter of the saga, as a small sweet shop in Bikaner, Rajasthan in 1935 . By
1982, the company had set up its business in Kolkata, Nagpur & the bustling Chandni-Chowk in
Delhi.

An important diversification was inroads into the restaurant business with Haldiram having 11
restaurants cum showrooms at premium locations of Delhi & NCR with plan to open various outlets
in Northern India.

Promoted by two 1st generation entrepreneurs Mr. M.L. Agarwal & Mr. M. S. Agarwal and backed
by Board of Directors ( Mr. Pankaj, Anand, Amit, Ashish & Umesh Agarwal) and Management
Team (Dr. A.K Tyagi (Pres), P.K. Agarwal (Consultant) , Rahul Kathuria , VK Gupta, Mr. A.K.
Tyagi) , today, the Vision and Mission of the company is to have global presence as Food &
beverage company through:

 Innovation
 Professionalization
 Expansion
 Strategic Approach
 and, Business Acquisition

Haldiram is on the way of its vision as today it is an ISO 9001 & HACCP certified company and has
presence all over India, 62 countries (UK, US , Germany, Australia, UAE- to name a few) in world
and top supermarkets of the world like TESCO, SOMMERFIELD, SPINNEYS, CARREFOUR.
The fact that today HaldiRam exports 60 mn dollars goods and has registered 40% growth over last
5 years itself tells its success story

Haldiram’s success saga is because of the pro-active thinking of making access into the traditional ,
fresh homemade food and skillfully converting itinto a product line extension.
With it they have busted the myth that Indian consumers will not payextra for western
concept of packaged food and that two of the Indian Household kitchen category.

12
 Haldiram’s ingredients of success recipe includes a diversified product portfolio, stringent quality
controls, good raw material, storage, production and packaging processes which has resulted in
unparallel taste and extended shelf life, Also Haldiram’s sensitivity to catering to the local palates
(30 – 40% of Haldiram flavours are sensitized to suit local taste) has resulted in creating a loyal
consumer base . Also no Modern trade is complete without stocking HaldiRam’s products.

Also the Supply Chain which is broken down into two categories of retail and institutional sales is
managed well by strong network of C&F, Distributors, Wholesalers and Retailers to make the
product available at remotest town of the country.

Haldiram has managed details of right technology, packaging standardizations, consumer

affordability, quality tasty products, and volume deliverables extremely well to weave the magical
success saga.

Last but not the least, the People behind the product – the local talent needs mentioning as they have
helped Haldiram grow big.

Today, Haldiram can proudly claim that what began as a small-time enterprise in India is a global
phenomenon now and HALDIRAM’S IS WAY OF LIFE FOR INDIANS NO MATTER
WHICH COUNTRY THEY LIVE IN.

13
 HALDIRAM SWOT ANALYSIS
Strength

Oppurtunities
SWOT weaknesses

Threats

Introduction

A. Strengths

 Haldiram’s has a large product basket for the customers to choose from. One
of the biggest reasons for their namkeen segment succeeding is the continuous
updation of their product range.

 Their brand is associated with tradition and quality.

 Their products are known among the most hygienic products available in
this segment.

 Their packaging is attractive and innovative which makes for easy

discernment of their products on the shelves, is safe and keeps contents fresh for
long.

14
  Their production processes are semi-automated and by using state of the
art technology they have been able to increase the shelf life of their products from
one week to six months.

 They are the undisputed market leaders in the namkeen segment.

 Haldiram’s has been able to build its brand today on the basis of word of
mouth publicity, which has actually taken a lot of people by surprise.

 Approval by FDA-HACCP, ISO 9002 and SPA stand testimony to the

emphasis that Haldiram’s lays on the high quality for its products.

 Haldiram’s is aggressively trying to capture the international markets by

customizing its products and packaging according to foreign tastes.

 Though a large percentage of their consumers are middle-aged customers

who are fond of namkeens, yet they are successfully catering to all age groups and
sections of society.

 By launching small packets of their diverse namkeen products, they have

successfully penetrated the rural markets.

 Online selling of their products through indiatimes.com

B. Weaknesses

 Haldiram’s doesn’t lay emphasis on the need to carry out market surveys
either to know the consumer needs or their feedback.

 Haldiram’s started advertising its products too late, as it is not a firm

believer in big marketing budgets and lavish promos because of which they might
have lost the initial advantage.

 The Company has no policies on Corporate Social Responsibility and

environmental norms, which may affect their Goodwill in the long run.

15
  The Haldiram’s group consists of three concerns that are independent of
each other and also there is a lack of collaboration between the three concerns,
which affects the reputation of the company and is a hindrance in its growth.

 The company is not as cash rich as its competitors, which gives its
competitors an edge.

 Company portfolio does not include western snack foods

C. Opportunities

 Though till now, Haldiram's presence in the western snack foods segment is
restricted to potato chips. It has plans to market convenience food products in the
ready-to-eat format, such as paneer, pulao, dal and vegetables.



 If the company starts associating itself with other brands, it will help
strengthen the brand image and bring in larger profits.

 Haldiram’s doesn’t have any special namkeen for the kids and teenagers
segment, which is a huge potential target market.

 Diversifying the namkeen product line further through constant innovation.

 Greater scope to increase market share and profits as they have just started
advertising. Opportunity to go into radio advertising leading to greater rural
penetration.

 To cut into the unbranded sector by reducing prices to capture value conscious
customers.

 Having a premium product line to capture high-end consumers.

16
 Threats


 A large number of competitors have started entering this segment which might
erode the market share of Haldiram’s. For example companies like Frito Lay’s,
ITC, etc, which is cash rich companies, can actually undercut Haldiram’s profits
as they can afford to reduce their prices.

\

 As there are three concerns under the Haldiram’s group, the quality standards
differ substantially and any irresponsibility on the part of any one concern will
have a negative impact on all the three as they share the same brand name.

 Competitors such as MTR, Tasty Bites and ITC have already entered the
western snack food market and taken the initial advantage whereas except for
potato chips, Haldiram’s is still considering entering this segment.

 If Haldiram’s doesn’t realize the importance of aggressive advertising, its

competitors will cut into its market share as they do advertise on a large scale.

 Competition from local restaurants cum sweet shops.

 High market presence and share of the unorganized sector.

17
 Awards & Achievements

Haldiram’s is an ISO 9002 and HACCP recognized company with several awards under its belt.

 International Award for Food & Beverages awarded by Trade Leaders Club in Barcelona, Spain
in 1994.

 Kashalkar Memorial Award presented by All India Food Preservers Association in 1996 at its
Golden Jubilee Celebration for manufacturing the best quality food products.

 Hind Ratan Award.97 given by NRI Welfare Society of India

 Brand Equity Award 1998 was awarded by Progress Harmony Development Chamber of
Commerce & Industry in recognition of creating a successful Indian brand.

 APEDA Export Award 2001-2002 was awarded by Agricultural & Processed Food Products
Export Development Authority for outstanding contribution to the promotion of Agricultural &
Processed Food Products during the year 2001-2002.

 MERA Delhi Award was awarded by Agricultural & Processed Food Products Export
Development Authority in the year 2004.

 AMITY LEADERSHIP AWARD -2008 was awarded by Amity Business School, Amity
University for best H R practices (Retail) in the year 2008.

18
 FUNCTIONAL PROFILE

 PRODUCTION PORTFOLIO
 FINANCE PORTFOLIO
 PERSONAL PORTFOLIO
 MARKET PORTFOLIO

19
 PRODUCTION PORTFOLIO
The production units of HALIDRAM is situated in different areas which totally depends
upon the particular product. Haldiram has divided the production on thee basis of product.
Following tables shows the different product produce at different manufacturing units :

Namkeens ( Items & Products in this category )

Namkeens :: Produced at Haldiram Manufacturing Mathura road

BOMBAY HALKA FULKA

ALL IN ONE CHANA CHANA DAL MIXTURE

BOMBAY CHANA JOR

ALOO BHUJIA MIXTURE GARAM HARA CHIDWA

BOONDI
BHUJIA
BANANA CHIPS MIXTURE CHIDWA PLAIN KABLI CHANA

BANANA CHIPS BOONDI CORN FLAKE

MASALA MASALA MIXTURE KAJU DAL BIJI

BANANA CHIPS
SALTED BOONDI PLAIN DAL BIJI KAJU MASALA

BANANA CHIPS
TANGY
TOMATO BOONDI RAITA GHATIA KAJU MIXTURE

FALAHARI
BHELPURI CHAIPURI MIXTURE KAJU SALTED

FALAHARI KANPURI
BHUJIA CHAKOLI WAFFER MIXTURE

CHANA GUJRATI KARANCHI

BHUJIA PLAIN CRACKER MIXTURE MIXTURE

20
Namkeens: Produced at Haldiram Manufacturing – Gurgaon

MOONG DAL MASALA

BHELPURI

BHUJIA

MOONG DAL MAST MASALA

BHUJIA PLAIN

MOONG DAL

MOONG DAL CHATAK PANIPURI

MASALA

Namkeens:: Produced at Haldiram Snacks Pvt Ltd – B1 Noida

Bhujia Aloo bhujia Khatta mitha

Navrattan Moong dal Panjabi tadka

All in one Dal biji Bombay mix

Kashmiri mixture Shahi mixture Kaju mixture

Chana dal Chana cracker Chana jor gram

Bombay chana Kabuli chana Long sev

Methi sev Karodpati Teekha sev

Chilli pataka Bikaneri malai sev Chatpata matar

Nimbu masala Hara chidwa Halka fulka mixture

Gujarati mixture Mini bhakhar badi chakoli

Madrasi mixture Murukku Cornflakes mixture

21
Snacks ( Items & Products in this category )

Snacks :: Produced at Haldiram Snacks Pvt Ltd – B1 Noida

Pudina Treat Takatak

Aloo Masala
(Chips) Masala

NATKHAT
Classic Salted Sour & Cream
TOMATO
(Chips) Onion
(Takatak)

Mast Masala Cheezi Balls

Boletos
(Chips) (Whoopies)

Tangy Tomato Chatpata Stix

Ringos
(Chips) (Whoopies)

Papri chaat Heart Beat

Aloo masala
(Chips) (Whoopies)

Sweets ( Items & Products in this category )

Sweets :: Produced at Haldiram Snacks- Noida

Rasgulla Chamcham Kalam petha

Rasmalai Rajbhog White Rasbhari

Gulab jamun Kesar Rasbhari Kesar Gandheri

Soan papdi desi ghee Soan papdi vegetable Soan papdi chocolate
ghee

Soan papdi coconut Soan papdi orange Soan cake

Dry petha Patisa Soan halwa

22
 FINANCE PORTFOLIO

VALUATION OF COMPANY’S BONDS

Bond 1:
12,00,000-15% secured non-convertible debentures of Rs 100 each were issued at par as
rights in the proportion four debentures for every equity share held. The debentures would
be redeemed at a premium of Rs 5 per share on the expiry of 7 years from the date of
allotment or in three equal instalments of Rs 35 each at the end of 7th, 8th and 9th year from
the date of allotment. The Company allotted additional 1,93,742 debentures to retain over
subscription.

Bond 2:
18000 13.5% Secured Redeemable Non-Convertible Debentures ofRs.1,00,000 each
privately placed with ICICI Bank Ltd. on 10th January2000. Debentures are redeemable at
par in three equal annual instalmentsonthe expiry of 5th year from the date of subscription.

Bond 3:
6,00,000-15% secured redeemable non-convertible debentures of Rs 100 each were
privately placed with LIC, GIC & its subsidiaries to be redeemed in 5 equal instalments
commencing from the end of 5th year & ending with the 9th year from the date of allotment
at a premium of 5% at the end of 7th year.

23
SALES TURNOVER OF HALDIRAM (2010-11 TO 2015-16)

The table and graph shows the sales turnover of Haldiram for last 6 years:

Sales Turnover Rs (crores)

2010-11 774
2011-12 920
2012-13 834
2013-14 1177
2014-15 1040
2015-16 1347

Sales Turnover
1400
T
u 1200
r
1000
n
o 800
v
600
e
r 400
(

c 200
r
)

0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
years

24
 Blancesheet of Haldiram Company Pvt. Ltd.

(Graphical Representation of b/s for the last four financial years)

(in cr.)

From the above graphical representation we can determine the financial position for last
four subsequent years of Haldiram Company Pvt. Ltd.

25
 PERSONAL PORTFOLIO

PROMOTERS

 Mr. Manohal Lal Agarwal (Chairman)

 Mr. Anand Agarwal (MD)

 Mr. Ashish Agarwal (Executive Director)

Board of director’s

Managing director

President

Accounts & Sales and Gm-

R&d marketing
finance operation
manager s

26
 DISTRIBUTION FLOW CHART
Haldiram’s transacts on an advance RTGS basis from its wholesale dealers instead of the cheque or cash
system adopted by other major FMCG companies. This practice is consistent with Haldiram’s philosophy
of maintaining cash transactions throughout the supply chain and it also minimizes dumping.

Distributers carry inventory that is just adequate to take care of the transit time from the branch warehouse
(C&F) to their premises. This just-in-time inventory strategy improves dealers return on investment (ROI).
All Haldiram’s branches engage in route scheduling and have dedicated vehicle operations.

A. Distribution Channel Structure

INDUSTRY DISTRIBUTION NETWORK

FACTORY

C&F INSTITUTIONAL SALES

DISTRIBUTORS

WHOLESALERS RETAILERS

RETAILERS

CONSUMERS

27
 B. Functions Performed by the Channel Member

 The main functions of different channel members are to supply goods, to

achieve targets and to increase sales.

 One of the main functions of C&F agents is to achieve the targets assigned to
them. They are responsible for all the activities of their areas.

 Maximum sale of the Haldiram’s products comes from the Nankeens and
other packed products which is nearly Rs.250 crore yearly.

 The sale of other goods including the sales of its entire outlet is around Rs.150
crore.

C. Selection of Channel members

Channels members are selected if the following facilities are available: -

 Warehouse Facilities

 Experience sale persons.

 Van, truck, three-wheelers for transportation.

 Registered office.

 Proper computer facility for maintaining accounts.

 Financially strong

Operational States: Delhi, Haryana, Punjab, J&K , Rajasthan, Uttaranchal, Uttar Pradesh, Bihar,
Jharkhand, North East.

28
 MARKETING PORTFOLIO
/

Over a period spanning six and a half decades, the Haldiram's Group (Haldiram's) had emerged as a
household name for ready-to-eat snack foods in India. It had come a long way since its relatively humble
beginning in 1937 as a small time sweet shop in Bikaner, in the Rajasthan state of India. In 2001, the
turnover of the Haldiram's was Rs 4 billion. The group had presence not only in India but in several
countries all over the world.

Till the early 1990s, Haldiram's comprised of three units, one each in Kolkata, Nagpur and New Delhi. The
Agarwals family that owned Haldiram'swere always conscious of the need to satisfy customers in order to
grow their business. The company offered a wide variety of traditional Indian sweets and snacks at
competitive prices that appealed to people belonging to different age groups.

Haldiram's had many 'firsts' to its credit. It was the first company in India to brand 'namkecns2,. The group
also pioneered new ways of packaging namkeens. Its packaging techniques increased the shelf life of
namkeens from less than a week to more than six months. It was also one of the first companies in India to
open a restaurant in New Delhi offering traditional Indian snack food items such as "panipuri," "chatpapri,"
and so on, which catered to the needs of hygiene conscious non-resident Indians and other foreign
customers.

Since the very beginning, the brand 'Haldiram's' had been renowned for its quality products. The company
employed the best available technology in all its manufacturing facilities in India. Given the increasing
popularity of Haldiram' s products, the group planned to expand its operations.However, some analysts felt
that Haldiram's still had to overcome some hurdles. The company faced tough competition not only from
sweets and snack food vendors in the unorganized market but also from domestic and international
competitors like SM Foods, Bakeman's Industries Ltd,Frito Lay India Ltd.(Frito Lay) and Britannia
Industries Ltd.

29
 A LITTLE GLANCE AT PRODUCT
VARIANTS OF HALDIRAM’S

30
 CHAPTER 3

31
 Theoretical aspects of the “SALES PROMOTION Concept”

HALDIRAM - a “Brand”

What is a Brand ?

A brand is a product, service, or concept that is publicly distinguished from other products, services, or
concepts so that it can be easily communicated and usually marketed. A brand name is the name of the
distinctive product, service, or concept. Branding is the process of creating and disseminating the brand
name. Branding can be applied to the entire corporate identity as well as to individual product and
service names.

Brands are often expressed in the form of logos, graphic representations of the brand. A company's
brands and the public's awareness of them is often used as a factor in evaluating a company.
Corporations sometimes hire market research firms to study public recognition of brand names as well
as attitudes toward the brands.

What is SALES PROMOTION?

It includes managing the tangible and intangible characteristics of brand. In case of product brand, like
“Haldiram’s” include the packaging and advertising strategies. While the intangible includes emotional
connections with the product or service.

Sales promotion is a type of Pull marketing technique. If you have a product which is new in the
market or which is not receiving a lot of attention, then you can promote this product to customers via
sales promotions. You can use various techniques like giving discounts on the product, offering 1 + 1
free schemes, etc etc.

There are two types of Sales promotions

a) Consumer sales promotions

Any sales promotion activity that you do keeping the end consumer in mind is known as consumer
sales promotions. Example – if an E-commerce website gives 10% discount on its products, then it
wants the consumers to make the best of this deal. This is a consumer focused promotional activity and
hence can be called as consumer sales promotions.

The objective of Consumer sales promotions might be various. A consumer might be asked to test a
sample of a completely new perfume in the market and rate it. An existing customer might be asked to
use a Scratch card so that he receives a gift.

At the end, the result should be an action from the consumer. Either the consumer should purchase the
product right away, or he should come to know about the product so that further awareness is created
for the brand.

32
 b) Trade Sales promotions

If your promotional activities are focused on Dealers, distributors or agents, then it is known as trade
promotions. There is a lot of competition in any field. And in channel sales, to get the products moving
and to motivate the dealer to perform better, trade discounts are given.

Example – You are a dealer for Televisions. Now Sony comes and tells you, you will be given 5%
discount if you cross a sale of 100 televisions. Naturally, you will be very motivated because 5% in
television sales is huge. Plus selling Sony TV’s is easy because it is already a brand. Thus, you divert
all potential customers to Sony Televisions so that you can achieve the target.

Similarly, there are other types of trade sales promotions which can be used to motivate the dealer and
distributor. More such techniques of sales promotions are discussed below.

As the noise of competitors rises, you will find more and more companies using sales promotions
techniques. The advantage of sales promotion is that they are not too expensive for the company when
compared with ATL advertising mediums like Television or newspaper. Hence, even small businesses
use it quite effectively.

Objectives of a Sales Promotion

Sales promotion is one of the many tools used in a retailer’s promotional mix. Sales promotional tactics
include contests, coupons, freebies, loss leaders, point-of-purchase displays, premiums, prizes, product
samples, and rebates. Sales promotion may be referred to as “below the line” or “point of sale. ” For
example, price reductions at the cash register or complimentary gifts with purchases all fall under sales
promotional tactics. The objectives of a sales promotion is to increase consumer demand, stimulate market
demand, to get potential buyers to heed a call to action, increase the size of purchases and improve product
availability using media and non-media marketing communications.

33
Types of Sales promotions – Sales promotion techniques.
Below are some of the most common type of sales promotion techniques used across all industries. Some
industries, like FMCG, see a lot of these techniques being implemented simultaneously mainly because of
the sheer volume of business as well as because of the competition in FMCG. Other businesses, like
Consumer durable, furniture etc also use a combination of these sales promotion techniques.

Let us know deeper into each of these types of sales promotions.

1) Discounts – Trade / consumer

The most common type of sales promotions is consumer discounts or trade discounts. I don’t even need to
to explain this to everyone because we are bombarded with discount offers everyday. Be it E-
commerce stores, retail stores or anything else. The reason discount is most used is because it actually
works!

If there is a 10% discount on the product for the consumer, then it is known as consumer discount.
However, if there is a 10% discount to the dealer when he is purchasing from the company, it is known as
trade discount.

2) Gifting

One of the most common ways to promote your store during festival time or when there is a huge walk in
expected is Gifting. It is also a way to increase the sales of the products because customers have an
anticipation that they might win a gift from the store.

34
Another popular way to use gifting is to advertise “Assured gifts”. Basically, you have different gifts on
offer like a mixer grinder or a steam iron. A customer who purchases a set amount of products will get .

“Assured gift” from you. This creates excitement in the mind of the customer and he received something
for “free”. He might visit again and again.

3) Coupons
Quite commonly used to motivate people to purchase when they think the price is high or it can be
incentive to buy your product above the competitors. Domino’s, Pizza hut and McDonalds very
prominently use coupons in their marketing. If you have their coupon in hand, you get a discount of X
amount on the purchase. What the coupon does is, it instigates you to take action. If today i get a coupon
saying i will get 10% off on whatever i purchase from an XYZ store, then i will surely get off my butt and
go purchasing. I will purchase all those products anyways. But the coupon got me purchasing from the
XYZ showroom. That’s the objective of the coupon which it has accomplished.

4) Contests
There are different forms of contests which can be run to gather more customer information or to motivate
the customer to try the product or to create awareness about the new retail place. Contests can be as simple
as winning a gift through a scratch card, or it can be an in house game in a retail showroom or it can be an
online contest for which users have to enter their information.

Due to the phenomenal rise of the internet, online contests have become very easy and important. They also
penetrate faster and reach a lot of customers.

35
5) Email Marketing
Email marketing was, is and is touted to always be one of the best ways to promote your business. It is one
of the most commonly used types of sales promotions across the world because of its ease of
implementation and because of its penetration. Each and every one of us has an email account which we
access regularly. Thus, an Email is personal to us when received in our phone and we are bound to check it
out. Chances are email marketing bundled with an exciting and irresistible offer can really entice the
customer in purchasing your product. As a result, Email marketing is actually widely used, be it online
industry or offline.

6) Quantity Discount
The more quantity of the product you buy, the more is the discount. So for example, a single soap may cost
Re1 but a combined package of 5 units of soap might cost you Rs4, giving you a 20% discount on the
purchase. Such type of quantity discount is common for customers.

However, the quantity discount is not applicable only to consumers. It is also applicable in trade where a
dealer or distributor might be given a discount of 5-10% if he purchases a higher quantity of product. So, a
kitchen appliance distributor might be given a discount if he buys higher number of units in the festive
season. The higher he sells and the more aggressive he is, the better he will earn.

36
 Applications of the “Sales Promotion Concept” in the company

HALDIRAM as a “Brand”

Introduction

The food industry in India is forever changing to suit their consumers’ palate,
preference and pocket. All the players in the industry thus, have to constantly adapt to
the ever-changing trends and invent and re-invent themselves to stay in the league.

Haldiram’s competes on the basis of numerous factors including brand recognition

due to distinct sales promotion which includes packaging, product quality, traditional taste and
authentic Indian flavour. The company’s timely introduction of new products and line extension
has played a major part in the buying behaviour of consumers as well.

A word of caution for the company though is that it should concentrate on its
Sales promotion activities, which will be its saving grace in the future. As the competition
toughens the only thing to see a company through would be its ability to adapt to
change, share of space and share of voice in the market.

37
 SALES PROMOTION OF “HALDIRAM”

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. Attractive posters, brochures and mailers are designed to enhance the
visibility of the Haldiram’s brand.

 Different varieties of posters are designed to appeal to the masses. The punch

line for Haldiram’s products was ‘Always in good taste’. Advertising 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 has placed its
hoardings in high traffic areas such as train stations and bus stations. Posters are
designed for display on public transport vehicles such as buses and hoardings.

 Captions are developed that focus on individual products such as ‘yeh corn
hai’ (this is corn), ‘chota samosa – big mazaa’ (small samosa- big entertainment)
‘yeh kashmiri mix khoob jamega’ and ‘oozing with taste’ (for Rasgoolas)
promoted individual products .

 Special brochures are designed for those customers who want to know more
about Haldiram’s products. The brochures describe the products and give
information about the ingredients used to make those products. Mailers are also
sent to loyal customers and important corporate clients as a token of appreciation
for their patronage.

 Packaging is an important aspect of Haldiram’s product promotion. Since

namkeens are impulse purchase items, attractive packaging in different colors
influences purchases. Haldiram’s uses 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 a similar product is under a week, the shelf life Haldiram’s

product is about six months. The company projects the shelf life of its products as

38
 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 are sold in attractive looking

special gift packs.

 The showrooms and retail outlets of Haldiram’s give importance to the point
of purchase (POP) displays. Haldiram’s snacks are displayed on special racks,
usually outside retail outlets. The showrooms has sign boards displaying
mouthwatering delicacies with captions such as ‘Chinese Delight’, ‘Simply
South’, ‘The king of all chats.’ Posters containing a brief account of the history of
Haldiram’s along with pictures of its products are also displayed at these
showrooms.

 Haldiram’s has also diversified into the restaurant business to cash on its brand
image. The company has established 6 restaurants overall in India. The restaurant
at Nagpur devised an innovative strategy to increase its business. It facilitated
people who were traveling by train to order food from places where stockists of
Haldiram’s, Nagpur unit were located. The customer could order for lunch/dinner
by sending a demand draft or a 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 same name of the
train, its likely time of arrival at Nagpur, their names and coach and seat numbers.

 Haldiram’s restaurants in Delhi also use innovative ways to attract customers.

The restaurants located at Mathura and Lajpat Nagar have special play area for
children.

 To cater to NRI’s and foreign tourists, who hesitate to consume snack foods
sold by the roadside vendors since they do not prepare the foods in a hygienic
manner, Haldiram’s restaurant uses specially purified water to make snack foods
including ‘pani puri’ & ‘chat paapri’.

These promotional strategies have helped Haldiram’s to compete effectively with the
local restaurant chains such as Nathu’s, Bikanerwala and Aggarwal’s and with
western fast food chains such as Mc Donald’s and Pizza Hut.

39
 Advertising Strategy

Haldiram’s advertisements have traditionally been copy heavy for various reasons and
do not have any face, known or otherwise, attached to them. They are graphic heavy
as well with extremely vibrant use of colour. Its advertisements earlier had a mature
approach with the base line “Always in good taste”, but of late due to a shift in target
audience the base line of the advertisements too has been changed to “Every zuban
pe”. This year, an otherwise conservative company, it has upped ad budgets by more
than 60% to Rs 1 crore - still a far cry though from Lays which spends over Rs 30
crore annually. But these ads were for what it calls its `new generation products' -
chips, funchees, masala balls and Taka-tak.

a) Visual (Typography, Layout)

Haldiram’s typography contains a very stylized and sophisticated font style, which
conveys the image and the personality of the brand.

The layout is picture heavy with extensive use of colour so as to make the
advertisement attractive and tempting, which is true of any food advertisement.

(b) Verbal (Copy Style)

Initial advertising of the brand contained long copy but this phenomenon has recently
changed as the company is now going in for a very precise and clear form of
communication in an informal manner.

40
 (c) Attitudinal

“Hinglish” style advertising

Haldiram’s advertisements are not attitudinal in nature but are rather formal and
mature. This trend is steadily converting into a more informal, relaxed and ‘Hinglish’
style.

Some Haldiram’s Promotional offers :

41
Sales Promotion Techniques of Haldiram’s

Promotion through organising various types of contests

Promotion through Products Demonstration

42
Promotion through Gifting Technique

Promotion through Print Media

43
 Chapter 4

44
 ANALYSIS

COMPETITION ANALYSIS

Introduction

To retain and expand its market share for higher profitability a company must
understand it’s competitive environment. It must know its competitors, their
strategies, the strengths and their weaknesses.

The major objectives of this comparison are to:

Analyze Haldiram’s competition (in Namkeens Segment) from an industry

and marketing point of view.

Formulation of competitive strategies.

Study the designing of competitive strategies.

Competitors of Haldiram’s

Namkeen Segment

The following are the major competitors of Haldiram’s:

 Garden

 Bikano

 Frito lays

 Unorganized Sector

However the comparison is restricted to Frito Lays, as this is the closest competitor of
Haldiram’s.

45
 Snacks
 Bingo

 lays,

 kurkure,

 oye oye,

 Diamond

 Some local regional players

Papad

 Lijjat

 Bikaji

 Some local regional players

Sweets

 Bikaner wala

 Bengali sweets

 Bikaner

 Some local regional players ( sudha ,paras)

Syrups

 Roohafza

 Kisan

 Dabur

 Some local regional players

Ready To Eat (RET)

 milk maid

 nestle

 Some local regional players

46
 Levels of Competition

This analysis covers all four levels of competition for Haldiram’s: Brand, Industry,
Form and Generic.

Table: Levels of Competition

Brand Bikano, Frito Lays, Lehar, Unorganized

Sector

Industry Differentiated Oligopoly

Form Traditional snacks like Samosa, Kachori, etc.,

Burgers, Pizzas, Salty Biscuits, Bakery Items

Generic Any product competing for the same of amount

consumer money

A. Brand Competition

Brand Competition includes other companies offering similar products and services to
the same customers at similar prices. Here, the brand competition would be all the
companies selling Namkeens along the same lines as Haldiram’s. Because of this
brands like Bikano, Frito Lays, etc… and the unorganized sector are considered as
brand competitors.

B. Industry Competition:

The namkeens industry is essentially made up of a few players producing the same
product partially differentiated along the lines of quality, styling and services. This
means that the namkeens industry follows the pattern of ‘Differentiated Oligopoly’.

C. Form Competition:

Form competition essentially means that competitors who produce products that
supply the same service. In case of Haldiram’s Namkeens, it faces stiff competition
from traditional snacks like samosas, kachoris etc. and others like salty biscuits,
pizzas, burger and bakery items as people tend to substitute namkeens very easily with
these products.

47
 D. Generic competition

Generic competition essentially includes those companies competing for the same
amount consumer money. In case of Haldiram’s, it includes all edible products in the
same price range.

48
 CUSTOMER VALUE ANALYSIS

A. Haldiram’s

Haldiram’s being the market leader offers enormous benefits to its customers. On the
basis of the consumer behavior survey, the highest benefit that Haldiram’s offers is by
way of hygiene and taste. Another big strength of Haldiram’s, which a factor rated
pretty high by the consumers, was Packaging. By providing fresh and tight packaging
Haldiram’s ensures that their consumers can use it for a longer period of time.
Another benefit that Haldiram’s offers is the immense variety in their product line. In
fact in the namkeens segment itself Haldiram’s offers about 40+ varieties and ensures
that this benefit stays on by constantly innovating and coming out with new types of
namkeens. The best part is that they offer traditional snacks rather than modern
snacks, which go down very well with the Indian consumer.

B. Frito Lays

According to the consumer behavior survey, the consumers rated packaging the
highest thereby signifying that this is one of the best benefits that the consumers get
from Frito Lays. Apart from that price and quality were the other benefits that the
consumers got from Frito Lays. The biggest benefit is the availability of the product
as it is a product is of Pepsi Foods and hence is backed up by a string distribution
network. However it’s on the variety factor that they actually pale in comparison with
Haldiram’s.

Types of Competitive Strategies

From the information based on the consumer survey, out of 32 people 28 consumed
Haldiram’s products. Since 91% of responses indicate consumption of Haldiram’s
products, we conclude that Haldiram’s is the market leader in the namkeens
segment. In the consumer survey that we had done, hygiene and taste had come out as
the highest priority factors that influence the buying behavior. Haldiram’s adopts the
following market leader strategies.

49
 A. Market leader strategies adopted by Haldiram’s

a) Increasing the total market share

Being a market leader, one of Haldiram’s strategies has been to solicit new users for
their products. They have done this by targeting the NRI’s living abroad and
exporting their namkeens there. This in turn has also helped create awareness about
their product among the non-NRI’s abroad. Its foray into the foreign markets has been
carefully strategised as in the customization of its products. Apart from this, they have
also penetrated the rural markets quiet effectively by bringing out their products in
small, affordable packets. All these new markets have helped consolidate Haldiram’s
position as a market leader.

b) Defending Market Share:

To protect its position as market leader, Haldiram’s makes use of two defense
strategies: Position Defense and Mobile Defense.

1) Position Defense

Haldiram’s has built for itself quite a superior brand image, making it extremely
difficult for its competitors to break this image. Thus the competitors have to put
in extra efforts to create a brand much more superior than Haldiram’s.

2) Mobile Defense

This involves the leader stretching its domain over new territories that can serve
as future centers for defense and offense. Under this defense, Haldiram’s follows
the ‘Market Broadening’ mobile defense. The recent establishment of their
Nagpur plant shows that they are now concentrating on the Southern region. Also
their foray into the international market and their deeper penetration into the rural
market coupled with the introduction of their new product range like syrups,
pickles, etc.

3) Counteroffensive Defense:

When Haldiram’s had started its business there were very few other players in the
market. That brought in complacency in Haldiram’s as far as advertising of its
products was concerned. The popularity of Haldiram’s has till date spread through
the word of mouth. Now with new competitors coming in and advertising their

50
 products aggressively Haldiram’s has realized the need to advertise its own
products and has lately forayed into TV advertisement. Thus Haldiram’s has
followed counter offensive defense as in it has responded to the competitors
attack.

c) Expanding Market Share

1) Haldiram’s

Over the years, Haldiram’s has been diversifying its product line and entering
newer markets. This has resulted in considerably expanding the market share of
Haldiram’s, thus also substantially increasing their products.

2) Frito Lays

With regard to the namkeens segment, Frito Lays is a relatively new player when
compared to Haldiram’s. In fact according to the consumer behavior survey that
we had carried out, out of the 32 respondents, 29 of them consumed Haldiram’s
while only 21 of them consumed Haldiram’s. This shows that Lays still has to go
a long way if it wants to be the market leader. Haldiram’s has a very strong brand
loyalty. Hence the strategy currently being adopted by Lays is that of a ‘Market
Challenger’.

B. Market Challenger Strategy adopted by Frito Lays

Flank Attack

The strategy being adopted by Lays currently is that of a flank attack. One of the main
points of a flank attack is that the enemy’s weak points are a natural target. One of the
biggest weaknesses of Haldiram’s has been advertising. Most of the publicity has
been word of mouth for Haldiram’s. But Lays, being a product of Pepsi Foods, didn’t
have any problem on this front and in fact has a strong advertising campaign to back it
up. Also with an extensive distribution network, it has been able to penetrate the
Indian market in areas that probably even Haldiram’s has not been able too.

51
 Share of Market, Mind and Heart

Haldiram’s has got the biggest share of mind market because generally it is the first
name that comes to the mind of the consumers when namkeens are mentioned. This is
re-iterated by the fact that in the consumer behavior survey, 91% of the respondents
actually consumed Haldiram’s as compared to the other brands. Thus the market share
of Haldiram’s coincides with the mind share mainly because of the high level of
market penetration and the word of mouth publicity that the brand enjoys. Haldiram’s
has become a household name today because of the variety of products it offers, the
taste and the good quality of the products, innovative and packaging has also helped
in building the brand image. Haldiram’s has also got the biggest share of heart
because most of the people prefer consuming Haldiram’s products. A large share of
heart predicts a high market share in the future. Thus Haldiram’s enjoys a good share
of heart and mind along with the biggest market share. This would help Haldiram’s in
retaining its share in the market in the future.

52
 INTERPRETATION

Q1.Do you consume haldiram’s ?


 25

20

 15
 10


5
0
YES NO

Q2.What other brands you consume other than haldiram’s?

14
12
10
8
6
4
2
0
Lays Behar Bikaner MTR others

Q3. Have been consuming haldiram’s since ?

53
 Q4. What is the factor which influences you to buy haldiram’s product ?

14

12

10

0
Price Taste Quantity Packaging

Q5. Do you find Haldiram’s Discount Offer worth ?

25

20

15

10

0
YES NO

54
 Q6. Have you Ever used Haldiram’s Gift coupon ?

16
14
12
10
8
6
4
2
0
Yes No

Q7. Do you like Haldiram’s promotional activities ?

Sales

Yes

No

55
 Q8. Do you find haldiram’s price ?

Very Low
Low
Reasonable
High
very high

Q9. You find Haldiram’s Nutritional value as ?

Minimal
Adequate
Healthy

56
 Q10. Do you buy haldiram’s Gift packages ?

25

20

15

10

0
Yes No

Q11. Is ther any significance difference between Haldiram’s advertisements and other
Brands ?

Sales

Yes

No

57
 FINDINGS

‘Consumer Behaviour Analysis’

 Consumers have started increasing their consumption of other brand items

is evident from the fact that 29 of the 32 respondents eat Haldiram’s Namkeens
while a close 21 each eat products of Lays and Lehar. However local snacks seem
to be losing their hold on the consumers mainly because of their lack of stress on
hygiene and quality. However, consumers seem to be very loyal towards the brand
called Haldiram’s primarily because of the high priority they give to taste, quality
and hygiene as is evident from the statistics mentioned above.

 Another interesting finding that is that in the absence of the role of the
‘Influencer’, the roles of the ‘Decider’ and ‘User’ seem to be shared by the same
person.

 The consumers have given top priority to ‘Food taste and Quality’ and ‘Hygiene’.
Haldiram’s needs to be appreciated for having pioneered these factors in the
packaged namkeens segment. However, to retain their stronghold on existing
consumers and attract new consumers, Haldiram’s needs to maintain and even
improve these standards.

 One aspect, however, that Haldiram’s needs to focus on is their price. 41% found
it to be ‘High’. Haldiram’s needs to focus on this factor as any reduction in the
price cut by it’s competitors may influence the buyer to drift towards another
brand.

 Overall, Haldiram’s is undoubtedly the most favored namkeen of the consumers

and this is established by one of the findings whereby 91% of the total
respondents actually consume Haldiram’s.

58
 ‘Competition Analysis’
 There are no two ways about the fact that when it comes to the namkeens segment
Haldiram’s is way ahead of its competitors. It has a very strong brand
loyalty, which is what makes the task of its competitors even more difficult.
However with the entry of Lays into this segment and the prior presence of
Bikano in this segment the competition has really heated up and the market share
is gradually being grabbed by various players. Hence its important for Haldiram’s
to keep innovating and concentrating on its strengths – quality and taste in order to
further consolidate its position as a market leader in the namkeens segment.

 There are no two ways about the fact that when it comes to the namkeens segment
Haldiram’s is way ahead of its competitors. It has a very strong brand
loyalty, which is what makes the task of its competitors even more difficult.
However with the entry of Lays into this segment and the prior presence of
Bikano in this segment the competition has really heated up and the market share
is gradually being grabbed by various players. Hence its important for Haldiram’s
to keep innovating and concentrating on its strengths – quality and taste in order to
further consolidate its position as a market leader in the namkeens segment.

 Another plus for Haldiram’s is that it has started targeting the international
market. It now doesn’t face any major competition in this market and can hence
make the best of it. This long-term strategy of Haldiram’s has already started
yielding results.

 Haldiram’s is a specialist when it comes to the namkeens segment, whereas for most of it
competitors like Frito Lays and GARDENS namkeens is a very small
segment and they are not looking to specialize in this segment. This factor will
always help Haldiram’s to consolidate its position as a market leader.

Overall, the best part about this segment is that neither Haldiram’s nor its competitors
indulge in situations that disturb the market equilibrium. Hence this segment is such
that everyone plays their role in maintaining the market equilibrium and in the long
run this shall work out to be favorable for Haldiram’s and this segment

59
60
 CHAPTER 5

61
 Suggestion

 Company should consider the problems of retailers and canteen’s owner.

 Company should problems of distributors.

 Resettlement of dispute like non payments and wrong commitment problems is

necessary by another executive.

 Stand should be provided to needy retailers because another company’s

executive creates problem.

 Company should give the stands and racks to each and every counters where its

product is sold.

 Company should prevent the interference of distributor in each others areas.

 Company should prevent the undercutting in market.

 Company should prevent the wholesale disturbance.

 Company should give the incentives to its executives as extra benefits after

salary.

 Company should listen and care of sales executive.

 Company should recognize the problems in market.

 The very necessary work is market screening and recognizing the strength and

weaknesses of competitors.

 Company should spend some amount on advertisement of its products because

the competitors are using celebrities as their promoter in ads. For Kurkure

Juhi Chawla and for Lays Saif Ali Khan.

62
 ANNEXURES

Q1.Do you consume haldiram’s ?

Ans Yes
No

Q2.What other brands you consume other than haldiram’s?

Ans.Lays
Lehar
Bikaner
MTR
Others

Q3. Have been consuming haldiram’s since ?

Ans. Less than 6 months
6months-1year
1year-3years
Greater than three years

Q4. What is the factor which influences you to buy haldiram’s product ?
Ans. Pice
Quantity
Taste
Packaging

63
 Q5. Do you find Haldiram’s Discount Offer worth ?
Ans. Yes
No

Q6. Have you Ever used Haldiram’s Gift coupon ?

Ans.Yes
No

Q7. Do you like Haldiram’s promotional activities ?

Ans.Yes
No

Q8. Do you find haldiram’s price ?

Ans very low
Low
Reasonable
High
Very high

Q9. You find Haldiram’s Nutritional value as ?

Ans. Minimal
Adequate
Healthy

64
 Q10. Do you buy haldiram’s Gift packages ?
Ans. Yes
No

Q11. Is ther any significance difference between Haldiram’s and other Brands ?
Ans. Yes
No

65
 BIBLIOGRAPHY
Books-

 PHILIP KOTLER, GARY ARMSTRONG, PRAFULLA Y. AGNIHOTRI, ESHAN

UL Haque 2010. A South Asian Perspective, 13th Edition.

 Pallant, Julie (2007). SPSS Survival Manual, 3rd edition, Open University Press, The
McGraw-Hill Companies

 Malhotra, N. K. (2004). Marketing research: an applied orientation, 4th edition,

Prentice-Hall International, London

 William G Zikmund, Barry J Babin, Jon C Carr(2009). Business Research Methods,

8th Edition, South Western Educational Publishing, United States.
Websites-

 http://www.haldiram.com

 http://en.wikipedia.org/wiki/Sampling

 http://www.emeraldinsight.com/

 Dr. Pankaj Madan, Gurukul Kangri, Retail industry: Next growth engine for Indian
Economy. Available from : http://www.scribd.com/doc/18286308/Retail-Industry
 http://www.indiainbusiness.nic.in/

 http://www.slideshare.com/

 http://en.wikipedia.org/wiki/Retailing_in_India

 http://www.bizmove.com/general/m6j.htm

 http://www.business-standard.com/india/news/modern-format-stores-growing-
strongly-acnielsen/262342/

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