HALDIRAM'S GROUP - SEEKING THE 'RIGHT'
MARKETING MIX
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THE MARKETING MIX
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 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. |
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Haldiram's also offered its products through the Internet. The company tied up
with indiatimes.com, a website owned by the Times of India group[1] to sell its
products over the Internet. Haldiram's products could be ordered through a host
of other websites in India and abroad. Giftstoindia.com, giftssmashhits.com,
tohfatoindia.com and channelindia.com enabled people residing abroad to send
Haldiram's gift packs to specified locations in India.
Region-specific websites
enabled people to send gifts to specified regions. These include indiamart.com
(Delhi and surrounding areas), mumbaiflowersgifts.com (Mumbai), and
chennaiflowersgifts.com (Chennai and other parts of Tamilnadu). These websites
competed on issues such as delivery time, which varied between 48 hrs to one
week, delivery charges (some websites offered free delivery of products) and
value added services (like sending personal messages along with the gift packs).
More>>
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QUESTIONS FOR DISCUSSION
[1] The Times of India group is owned by Bennett, Coleman & Company Ltd. It is India's leading publishers of newspapers and magazines catering to a wide cross section of customers. The newspapers published by the group include Times of India, Economic Times, Nav Bharat Times and Sandhya Times (Hindi). The magazines published include Femina and Filmfare. Times FM, a music channel owned by the group, broadcasts programs in five cities in India.
2003, ICMR (IBS Center for Management Research).All rights reserved. No part of this publication may be
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