A

REPORT ON
Expanding Haldiram Products
To the Russian Market

SUBMITTED TO:

M.E.S. COLLEGE OF ARTS & COMMERCE

DEPARTMENT OF BUSINESS ADMINISTRATION
LAKSHYA XII
HUMAN INTELLIGENCE

SUBMITTED BY:
Aditya Shetti

TEAM:
KINESTHETIC
 DECLARATION

I, the undersigned hereby declare that the project report entitled ‘Expanding Haldiram Products
to Russian Market’ is an independent work carried out by me during the management fest
organized by MES college Goa on the 8th and 9th of the January 2018.

This project was fully prepared by my own effort and has not been published elsewhere until
now. I also declare that this project report has not been submitted to any other university or for
award of any degree or diploma.

Place: Belgaum Aditya Shetti

Date:6/1/2018
 TABLE OF CONTENTS

S. No Contents Page No.

1. Executive Summary 6
2.
 Introduction
 Russian culture, sub culture and Prefrence
 Russian income and spending pattern
 Population analysis
 Packaging
 Tagline
 Sales Promotion
 Market Objectives
 Advertising
 SWOT Analysis

3. Print ads 63
4. Conclusion 64
 Executive Summary

Haldiram is one of the most famious Indian snack and sweet brand .In contemporary times,
Haldiram's products are exported to several countries worldwide, including Sri Lanka, United
Kingdom, United States, Canada, United Arab Emirates, Australia, New Zealand, Japan,
Thailand and others.

Which was founded in the year 1937 and since then is one of the most famous company. famous
in the company's first manufacturing plant was located in Calcutta. In 1970 a larger
manufacturing plant was established in Nagpur manufacturing plant was established in New
Delhi, the capital of India, in the early 1990s, which also had retail store2008 the company in
which the Nagpur manager Nagpur branch was Shivkishan Agarwal. It was ranked 55 among the
India's most trusted brands according to the Brand Trust Report, a study conducted by Trust
Research Advisory. products are available across 50 countries & are even present in
supermarkets like Tesco, Carrefour, Spinney's & Somerfield. It later exported in US

Marketing was done at various retail locations such as bakeries and stores, and also on various
commercial websites the price is inexpensive compared to similar products made by other
companies. Prior and up to August 2003 in the United States market, the company's products
were limited to potato chips. The company's products are carried by some Indian supermarkets in
the U.S. In the U.S., Hardiram's products are popular with South Asian Americans.

The main thing is when it was established that is 1937 in the form of a small retail Sweet &
Namkeen shop in Bikaner, Rajasthan, a small but significant town in the Thar Desert. S Agrawal,
the founder of Haldiram's always cherished the dream of building an empire, manufacture
traditional sweets/nankeens, leave a mark on every occasion and get close to the heart of the
common man.

It was later followed by chain of restaurnent . it later diversified its product lineand were
expanded to match the taste of various segments of the society. Sweets and nankeens were
presented in more durable and commercially viable packaging. These then were response and in
1997, Haldiram's forayed into milk and milk product industry with products such as, Ghee &
Butter Milk, the manufacture of Extruded foods such as vermicelli and 3-D Snacks.

, Haldiram's started producing high quality, ready-to-eat snacks, savories & Sweets. From
sourcing raw materials to their conversion into finished products, every process confirms to the
International norms (HACCP) of Quality & Safety. Human touch is avoided to ensure superior
hygiene. Every care is taken to ensure that our products retain Freshness and Flavour.

exclusive and innovative recipes, exotic presentation and high quality products 'Variety' is the
key reason behind Haldiram's popularity. Be it Sweets or Namkeens, the Haldiram's touch makes
it more tastier while the hi-tech machinery ensures that the packaging is done in a attractive way
maintaining international standards of hygiene.

with its Branch Offices in capitals like Mumbai, Bangalore & Chennai, owes its success to the
relentless efforts of our founder Chairman Mr. Shivkisan Agrawal, a visionary, dynamic leader
and a successful entrepreneur. No wonder, today, Haldiram's Nagpur is one of the leading
players in the snack food industry and a proud recipient of the 'International Food Award'.
Haldiram's has carved its way to the top despite stiff competition from the global food giants and
is earning valuable foreign Exchange for our country.
INTERNATIONAL MEMBERSHIPS

1. SNACK FOOD ASSOCIATION (SFA), VIRGINIA, (USA)

2. EUROPEAN SNACK ASSOCIATION (ESA), LONDON (UK)
3. INTERNATIONAL ASSOCIATION OF AMUSEMENT PARK ATTRACTIONS,
ALEXANDRIA, UA (USA).

The full and then it foods market has for long had both home-grown and multinational players
salivating for a piece of the action. But while a few brands such as Nestle’s Maggi, hul Knorr
and ITC’s Bingo have nibbled at the edges of the market, they’ve all struggled to get to the
centre of the plate — the desi staples that are devoured by the masses.

That’s why the story of snacks and sweets maker Haldiram’s, which has fought off both
multinationals and regional favourites to acquire a pan-India presence in packaged snacks, is
worth telling.

Author Pavitra Kumar does tell a highly readable tale in Bhujia Barons, which chronicles how
Ganga Bhishen Agarwal (aka Haldiram) built a ₹5,000 crore empire starting out with a humble
snack stall in the back alleys of Bikaner. The story, which traverses four generations of Agarwals
from 1918 to the present day, features many colourful personalities, the occasional black sheep
and a good dose of family feuds reminiscent of primetime television soaps.

The author often lavishes fulsome praise on various Agarwal family members for their vision,
acumen and ambition and strays into emotional digressions. But she does present a biography
that has the ring of authenticity. She does not paper over the unsavory aspects of some of the
Bhujia Barons.
 INTRODUCTION

here the story goes on , whe at 12 years age, with a wife to support, joins the family business —
one of the many snack stalls at Bhujia Bazar in Bikaner. He was master the art of skimming the
boiling oil with his bare hands to scoop up bhujias in quick time, but also ushers in innovations
— thinner bhujias made with finer mesh and the addition of moth dal (a kind of lentil) to
chickpea flour for unique taste.

It was very will diferenciated and his bhujias thus, he also gave them an aspirational quality by
naming them ‘Dungar’ sev after the popular Maharaja of Bikaner — Dungar Singh! But soon his
wife’s desire to move out of the joint family prompted him to strike out on his own, parting ways
from his grandfather’s business.

How they scaled up

it was a big struggle for them in the bigning as they bwere from the small town then later they
started expending them and later became successful. small-time stall to a business that churns out
100-200 kilos of bhujias a week by the 1940s and 50s, with the prices shooting up from 2 paise a
kilo to a handsome 25 paisethey got a chance to visit kolkatta weeding. Haldiram to branch out
into that foodie city. There was a lot of pressure and they had faced them a lot.(a sister in
distress) rather than strategic vision that nudges grandson Shiv Kishan to set up shop in Nagpur,
where Haldiram’s expands its snacks and sweets menu and also branches out into quick service
restaurants.

In the first and second generation Haldirams were clearly content with running small operations,
two grandsons from the third generation– Manoharlal and Shiv Kishan showed driving ambition.
Then tend to play a good role in the brand’s foray into national capital, by surreptitiously
acquiring a stall at Chandni Chowk. After the shop is burnt to the ground during the Sikh riots of
1984, the brothers re-built the business brick by brick. In delhi branch they eventually
transforms into the largest revenue driver, serving as a springboard not only to national
expansion, but also to markets abroad.
The whole Familly

\these is regardin their whole family how they came to know about the ideas and certainly how
they generated those ideas , share tales of how difficult it was to convince their placid father to
make any change in the business. Whether it was a move from messy ink printing to flexo
printing, grinding their own besan or setting up shop at a promising new location, Moolchand
would inevitably stonewall the idea with — ‘the tensions were not only taken by them and they
were quite free upset the gentle waves in the ocean of life?then later they got a new contract
between the patriarch and the brash fourth generation Prabhu Shankar Agarwal, whose credo was
clearly ‘my way or the highway’. It was very curious for the haldiram that he used to request his
cashier for fifty paise everyday to meet his personal expenses!

But then, a whole chapter is also devoted to the black sheep of the family, Prabhu Shankar, who
literally bulldozes his way through Kolkata and is sentenced to jail after an alleged attempt to
take out a ‘supari’ on a tea stall owner.

All about the trouble

they were facing a lot of trouble and then later they faced those problems eye view of what
makes family businesses tick, and come unstuck as well. It will tell you how haldiram works
Haldiram is forced to repeatedly divide up his empire on a territorial basis, so that family
factions don’t skirmish over use of the brand name.

It is very important for them and is very much to be patient and waiting too long to
professionalize can severely impede growth. The concept was not that clear on the brand
eventually led the family into Court battles, with this lack of clarity keeping Haldiram’s from
making an IPO.

Then they designed the book which had a lot of interest and was helpful , it lacks true insights
into what went into building a pan-India food business of this scale.

The main thing was how did they build their image what all things did they do shelf space in new
markets such as South India, without getting into face-offs with the MNCs How do the Bhujia
Barons maintain such good product quality while dealing with erratic Indian supply chains and
unpredictable sales cycleshow and what they did to manage their society of ingredients in the
fragmented farm markets?

One good news is that India is having a very good relation with Russia. As these two countries
have a major deal in various sectors and is very much important for them to look after them.
These is very important as these will definitely help you to understand the overall market and
would always be accusable for them to sell their products in the market. So the Haldiram is on
the safer side to sell its products in the overall market of Russia.

Russia Culture, subculture and preference.

Russia is a very diversified country and is very much important for the countries to understand
how it functions and performs .Russia has a very rich history of people and will tell about the
richness and they as the haldiram is very old and traditional Indian snack food so it will
definitely help them. So the people of Russia will certainly love the Indian product. As those
people have a good relationship with India, when they visit to India they usually go with the
tradition of drinking tea and it will definitely help them. So it will give them first importance to
be kind.

The second point is of the strong tradition as these will certainly help you to have a great start
and will be able to look after your overall product. So it is very much important for toes people
to look and always be cool and look after the over all tradition.

They have a good influential arts as they believe in traditional things like the classical music and
the cinemas so it will help them to easily accept those fast food.

Their subculture is divided from punks freestylers, ravers hackers as these aere the types of
people who are usually staying in there and is very much important for them.

Russian Food Taste and Preferences

When you talk about their taste and their preference it is vey different from that of the other
countries and they usually prefer much of boiled food, as they feel boiled food would generally
keep them health and they would always be fit from it. Then the even prefer on the cooked and
the fried one as they do not eat anything unbaked or un boiled so it is very important for them to
look so. They even prefer more of potatoes as it is very much important for them and the
production of potatoes is also more as compared to them and is very much important. So it gives
an equal chance and opportunity for haldiram to introduce their potato products in the overall
market and would generally be acceptable and will certainly be much important.

Each and every citizen of Russia love to eat cream as the sour cream is very much famous as
they dip all the things and usually they eat and they like as all the things that they like they mix
with the cream and they usually eat. So it will give the haldiram equal chance to establish a new
product that is cream added with different spices and flavors and introduce in the Russian market
and it will generally help you. They usually prefer sweet and sour substance and is very much
and is always help you to be . so the people in Russia will always prefer the stable sweet and
sour food so the haldiram will help you to. They can be used as certain toppings so that they can
be eaten easily . Then the even prefer on the cooked and the fried one as they do not eat anything
unbaked or un boiled so it is very important for them to look so. They even prefer more of
potatoes as it is very much important for them and the production of potatoes is also more as
compared to them and is very much important. So it gives an equal chance and opportunity for
haldiram to introduce their potato products in the overall market and would generally be
acceptable and will certainly be much important.

The Income of Russia

The main thing for the Indian market is to find out the income that the Russians usually
generated and how it would help them so it is very important for them to find out the income
level and the overall spending behavior of the people in Russia and even they can come to know
the overall population of what all things were required.

The overall income of the people in Russia matters as they slump, spending on foodstuffs is
taking up a larger and larger part of the average citizen’s budget.
During the time of febrery in the year 2016 it wwas a good outcome as food and alcohol, along
with tobacco products, were the main part they had 50 percentage of them.

Month wise -economic situation and wellbeing prepared by the Institute of Social Analysis and
Forecasts at the Russian Presidential Academy of National Economy and wer of the public
attentation

They had a previous year record when they consumed the most that reached 49.6 percent of retail
turnover.

"it is know as the population that is spending food the most so it is the right time to introduce the
product, which logically reflects the fact that real income has decreased and poverty has
increased. It is known that the poorer the household, the higher the part of the budget that it
spends on food," say the report's authors.

They said that in the year 2016 of the month February Russians' real income in comparison to
the same period in 2015 had declined by 6.9 percent and real salaries had declined by 2.6
percent. Then later the poverty level also increased so majority of the people in Russia were not
able to afford the products.

When you check the overall report there is fifty percentage of the population have experienced a
decrease in living standards, which has consequently resulted in a reduction of consumer
activity. They are thinking on a better side as they are now wisely spending

By March 2016 the number of poor Russians who had begun economizing on goods and services
had increased to 89 percent and the number of people from the middle class who were cutting
back their spending had grown to 79.3 percent.

Of the Russians surveyed, 55.8 percent said that they were ready to cut out non-essential goods
they were used to buying.

Rusians usually make a monthly payment while purchasing the food and they usually have a
credit system. A lot of Russians either stop buying cars, expensive electronics, furniture, etc., or
don’t buy them at all," said Natalya Kolupayeva, a senior analyst at Raiffeisen Bank.

The author again wants to say is, Maria Ivanova, in the course of the year the share of Russians'
budgets occupied by food products may increase.

These are the following things that was considerd and it is very much important and should be
followed.

• INCOME:-

• 43560 rubles to 63440 rubles

• 40.7% (food)

• 9.2%(clothing, footwear)

• 8.3%( alcohol and tobacco)

So it clearly says that the average income of the Russian people is 43560 rubles to 63440 rubles.
And there is a great news that 40.7% of the people love to eat food so the majority of the
consumers usually spend their whole money on food. The rest comes in clothing and footwear.

• Poverty increased by 13.4%

• Real income has declined by 6.9%
• 48% of population have decreased their food standards.

So according to the survey we can come to know that since the p[overty in Russia has increased
by 13.4% and the real income has decreased by 6.9% and 48% of the population have decreased
their food standerds these will give us strong opportunity to introduce out haldiram products in
the Russian market and it would be beneficial

Population Analysis:-.

 Demographic :- 15 to 59 years (60% of population) (29% are regular fast food consumers).
Decent income level generally divides a population based on variables. Thus demographic
segmentation too has its own variables such as Age, gender, family size, income,
occupation, religion, race and nationality. Age
 Life cycle stage
 Gender
 income
 Religion race and nationality

Each of the above variable is discussed in detail below. Demographic segmentation is one of the
most commonly used forms of segmentation amongst the 4 types of segmentation. The variables
used for Demographic segmentation help divide a large population into specific customer
groups.
All the individual over here has an age, gender, income etc. Thus for mass marketing, this
becomes one of the best ways to diversify individuals. This also helps in analyzing lots of data in
shorter time for market research as well as for promotions

Psychographic:- Lifestyle and interest it is how you divide your market. It will tell you how
important it is you to better develop and market your products because there will be a more
precise match between the product and each segment's needs and wants.

Conceptual Framework

All the people have different concept and intrest. For example, some people really care about the
environment, while other people don't. Some people are very fitness and health conscious while
others are foodies. Some people take sports very seriously, while some just want to have some
fun on the weekend sit will definitely occur when your market down along these interests and
attitudes so you can market the appropriate product to each its better to segment

• Geographic:- marketing is dividing the market on the basis of regions or geographies. It

will basically tell you wont tell you , it is on you villages, urban / rural, climatic
conditions, density of population. This type of segmentation helps to reach out to
customers living in a similar region or area and have identical needs.they are very much
specifically for a purpose best suited to needs of the people living in a certain region. So
make sure that you those set of customers who are living in a particular region or area or
place and also have similar features like weather, climate etc.

Behavioral:- Experience. Lets take a simple example of behavioral segmentation. I am writing

this article in the month of December which is Christmas time. Christmas is on the 25th of
December. So it is on you ow your are going to keep it You will probably
start planning and targeting that segment from 1st December itself.

After Christmas we have new year. Thus both of the occasions are so close that companies
would have to finalize which consumer behavior they want to target. They wanted to have a
targeted group whom they targeted type consumers or indoor types. They cannot target both as it
leaves only 6 days for the marketing of New Year.

Example – when you take hotels and restaurnents will target new year as they will have more
customers over the new year which is a moment of outdoor celebration whereas “gifts” will
market themselves heavily during this time. If there is a company (such as a chocolate company),
then they can strategically target “Christmas and new year

• Target market:- Russia (Phase wise) youths, families. All income levels. Indian
Community in Russia so basically the Russia will be the target market as completely we
are targeting the is important and the way you target is essential and one more important
thing is that you must even target the Indian community that is staying in Russia so there
will even be a good preference in it and your sales will also get increased.
• Positioning:- snack of India with Russian touch. as it is the first thing that comes in our
mind when we hear haldiram and is certainly very essential and will basically help you
and will be informed and thus you should have a very clear message and to know what
are the important things that you must be of..
Potato Bhujia Chum Chum cake Corn Mixture Sour spice cream Soup

Brown Bread Porridge Cheese cream Dark Coffee Black Tea.

(dry fruit & grain paste) (added flavor)

French Fries Milk Cake Potato Masala Orange juice

Packaging

It is a very important thing as it will help you for distribution, storage, sell, and use. It is also the
process of evaluating and producing packages. Packaging can be described as a coordinated
system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging
contains, protects, preserves you check the countries into government, business, institutional,
industrial, and personal use. Paper bored

Polythene

Aluminium foil

PFC’s

The materials that is required and certainly which is very muc important and will be used for any
packaging industry aluminium foil should be used to judge the product and to know what is right
and to the food to be safe. It is very much important and PFC is used to kown what exactly the
market.

Tagline

Where the taste meets the tradition

As the tagline where the taste meets the tradition is kept in such a way because you can easily
come to know that the haldiram is the ancient taste of india as it is collaborating in the Russian
market it will certainly follow its own tradition and will definitely stick with the things that it is
doing.

Sales Promotion:-

• Partner with others (chosen bun)

• Discounts
• Free gifts (combo pack) Tradition
• B2B Allowance
• Free Samples
• Coupons
Here bare the different sales promotion techniques that can be used the first and the important
thing is partnering with other as it is very much important since the haldiram is newly entering
the Russian market so it will basically need certain assistance to come to know about the market
so at the initial stage or the initial phase we would generally have a collaboration with the chosen
bun which would generally sell our products and we can come to know more about those
products.

The next important thing is giving the discounts as it will definitely help the people to buy the
product and will certainly come to know what all things are important as giving discounts in the
initial phase will help you learn more knowledge and the products will be sold easier

Along with the discount start giving the free gifts and you will get a good result of it and will
help you. Then as it is the first phase start with b2b that is business to business as it will help you
for direct selling and will help you for development.

Distribute free sample as it is very much important and the Russian people can come to know the
taste of it. Even start giving them the coupons it will help them.

Marketing Objective:-

• Increase Market share

• Diversified Product line
• Increase sales by 50% in the next 5 months
• Create awareness amongst target audience

The marketing objective is very much important that is at the start you must increase the market
share and major thing is to diversify the product line then make sure that you can increase your
sales which will help you. and always creating.

USP:-
Wide range of hygienic, tasty and authentic Indian savories and sweet

SWOT Analysis

1. Brand awareness and recall

2. Variety of products like papads, nankeens, cookies, chips, sweets,
sherbets, dry fruits, etc
3. Trusted for quality and hygiene
4. Attractive and efficient packaging

5. Good supply chain ensuring availability of products

6. Aptly priced for the customers

7.Loved for its taste

Strengths 8. Exported to many countries

1.Less advertising is done compared to other food brands

2.Involved only in Indian snacks
Weaknesses 3.Outlets are limited only to mainly North India

1.Increase its reach in India and abroad

2.Expand the hotel business
3.Increase the number of outlets

4.Agrresively advertise and promote the brand

5.Introduce healthy snacks like fat free, low calories and baked

Opportunities 6.Innovate by introducing snacks catering to the youth

1.Customers are inclined towards western ways, and are not interested in
Indian snacks
Threats 2.Indian snacks are considered unhealthy
 3.Increased competition from other brands and local players

Advertising Strategies:-

• News papers &Television(RTR-Planeta, Disney, news channel)

• TV series ( Kitchen)
• Bill boards & hoardings.
• Social media (46.6 million users)
• Famous bloggers (NASTASYA SAMBURSKAYA, ANYUTA RAI

There are a lot of unique way of advertising since these is a important product you have to start
advertisng in the Russian newspapers and television since there are many people who read the
newspapers and there are many people who watch the television and is important for them to
know and understand the whole market. Your product can be utilized in the television series such
as kitchen when those people can highlite nyour product and your product will be more
consumable. Then come the bill bords and the hordings which is the out of home advertisements
which will help people to identify the products directly from the given advertisements and is
very much important for them.the you can even use the social media as the social media will help
you to identify the overall message and will tell you how important it is, then you can take an
assist of the famous bloggers as in Russia there are lots of prople who have a blooging website
and is very much important for them.

Marketing Budget

Pirticulars Amount 10 60 Total

Television (RTR) 8500 85000 51,00,000 6,12,00,000
Disney channel 6,800 68,000 40,80,000 4,89,60,000
Tv series (kitchen) 35,000 35,000 10,50,000 31,50,000
News papers 284 68,160 68,160 6,81,600
bill bords 3,00,000 7 21,00,000
social media 40 4,000 45800 6,22,000
Bloogers 5,00,000 2 10,00,000
Misclenious 2,00,000 2,00,000

Total 11,79,13,600

So the total fund required for a year to advertise the product in the market is rupees eleven crore
seventy nine lakhs thirteen thousand and six hundred .. as it a some of amount that is required to
advertise and is very much important for them.

These are the various costing that is required befor you place any advertisements off

• Newspapers:- 284 *240 = 68,160 *10days

• Television:- 8500p/s*10=85,000*60(1 months twice a day)*12=6,12,00000
• Bill boards:- 3,00,000*7months = 21,00,000
• Youtube:- .3*10=3*15videos a day*5months

These are the various important thing that you have to find out. As these will help you to set a
budget that is required by your firm and is very useful.

Print ads
 The print ad is designed in such a way that a hand is sprinkling certain spices over
Russia. So it will give a message that the Indian tradition and the taste is now ready and
coming to Russia so it is very much important message that the haldiram wants to portrait
to the Russian market and to everyone.

Conclusion:-

Since there is a lot of chance of establishing the market in Russia it will give haldiram an chance
to start producing their products to the Russian market , since haldiram has diversified its
business according to the Russian taste it will be more easier for them to sell their products in
Russia. So it will be fair enough for the Russian people to buy the Indian product and in Russia
there is a small group of Indian community and will certainly help them to be focused. And by
the advertisement you will generally have a very strong impact and will help the targeted
customer to come and know what exactly you are selling and how important it is nfor you and
the amount that will generally be produced and will be in the outlock of the overall brand so it is
very much important to have a decent advertising plan so that the advertisements will remain
successful.