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

THE MARKETING MIX

PRODUCTS

Haldiram's offered a wide range of products to its customers. The product range included namkeens, sweets, sharbats^[1] , bakery items, dairy products, papad^[2] and ice-creams . However, namkeens remained the main focus area for the group contributing close to 60% of its total revenues.

By specializing in the manufacturing of namkeens, the company seemed to have created a niche market. While the Nagpur unit manufactured 51 different varieties of namkeens, the Kolkata unit manufactured 37 and the Delhi unit 25. The raw materials used to prepare namkeens were of best quality and were sourced from all over India.

Haldiram's sought to customize its products to suit the tastes and preferences of customers from different parts of India. It launched products, which catered to the tastes of people belonging to specific regions. For example, it launched 'Murukkus,' a South Indian snack, and 'Chennai Mixture' for south Indian customers.

Similarly, Haldiram's launched 'Bhelpuri,' keeping in mind customers residing in western India. The company offered certain products such as 'Nazarana,' 'Panchratan,' and 'Premium' only during the festival season in gift packs. These measures helped Haldiram's compete effectively in a market that was flooded with a variety of snack items in different shapes, sizes and flavors..

PRICING

Haldiram's offered its products at competitive prices in order to penetrate the huge unorganized market of namkeens and sweets. The company's pricing strategy took into consideration the price conscious nature of consumers in India. Haldiram's 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 (Refer Table I).

TABLE I
PRICE RANGE OF 'NAMKEENS' OFFERED BY HALDIRAM'S

PACK WEIGHT	PRICE (in Rs)
30 gms	5
85 gms	10
180 gms - 250 gms	18-35
400 gms - 500 gms	40-70
1kg	95-200

Source: ICMR

The prices also varied on the basis of the type of namkeens and the raw materials used to manufacture it. The cost of metallized packing^[3] also had an impact on the price, especially in the case of snack foods. The company revised the prices of its products upwards only when there was a steep increase in the raw material costs or additional taxes were imposed.

More>> Page2

QUESTIONS FOR DISCUSSION

[1] Juice concentrates offered in different flavors.

[2] A flat, thin, dried roll of kneaded floor mixed with spicy ingredients. It has a reasonably long shelf life, can be toasted or fried in oil and served as a snack or taken along with food.

[3] Packing where in Aluminum was used which helps in preserving the freshness of the products being packed.