HALDIRAM'S GROUP - SEEKING THE 'RIGHT'
MARKETING MIX

continued from : THE MARKETING MIX

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."^[1]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^[2], Spain for having maintained high standards in quality and hygiene, at its manufacturing unit.

The Delhi unit was awarded the Keshalkar Memorial Award by the All India Food Preservers Association in the mid 1980s in recognition of its efforts for popularizing ethnic Indian foods in India and abroad. In 1994, the unit was awarded the International Award for Food & Beverages by the Trade Leaders Club in Barcelona, Spain. The unit also received the Brand Equity Award^[3] in 1998. Manoharlal Agarwal, who played a key role in the success of the Delhi unit, was included in the eighth edition of Distinguished Leadership by the Board of Registrars of The American Biographical Institute^[4] . Haldiram's was also admitted as the member of Snack Food Association, US^[5] .

THE ROAD AHEAD

In the financial year 2001-2002, the combined turnover of all three units of Haldiram's was estimated at Rs. 4 billion. The company targeted a growth of 15% for the financial year 2002-2003. Analysts felt that, given the competition in the industry, Haldiram's needed to develop new initiatives achieve this growth.

The competition in the ready-to-eat snack foods market in India was intensifying. Frito Lay India Ltd. (Frito Lay), one of Haldiram's major competitors, was expanding its market share. Instead of directly competing with the market leader Haldiram's, the company launched innovative products in the market and backed them with heavy publicity. Frito Lay's product range consisted of a mixture of traditional Indian and western flavors which appealed to younger and older generations. Its products included Leher Namkeens, Leher Kurkure (snack sticks), Lays (flavored Chips), Cheetos (snack balls), Uncle Chips and Nutyumz (nut snacks). Frito-Lay was the first company to launch small 35 gm packs namkeens priced at Rs. 5 and also the first company in the organized sector to launch Aloo Bhujia^[6] .

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QUESTIONS FOR DISCUSSION

[1] In an article titled 'Brands and Bollywood,' on the website www.indiainfoline.com.

[2] It is an international organization in the food processing industry.

[3] An award given by "Brand Equity," a publication of the Times of India Group, to companies that are successful in their respective fields.

[4] Based in the US, the American Biographical Institute is a publisher of biographical reference works collected from all over the world.

[5] An international trade association of the snack food industry, representing snack food manufacturers and suppliers.

[6] Paste of mashed potatoes and gram flour, fried and added with salt and spices.