Comperative Analysis
This shop is famous for its special local sweets (Ladoo) and for its unique style of campaigning.
Mysterious campaigning slogans based on the national issues attract people to visit the shop. Initially the slogan was ” Neta bazaar Ka Ladoo – Dekhne mein kuch aur khane mein kuch” and now it is ” Aisa koi saga nahi jisko hamne thaga nahi”. The shop is quite famous and the extent of it can understood by famous lyricist Gulzar using this slogan in the film “Bunty aur Bubli” in its title song. Thaggu ke laddu is basically a partnership firm with four company owned shops.
To maintain similar quality standards across all four shops the basic material (generic product) is prepared in one central workshop and distributed to all the outlets and at the outlets standard operating procedures are followed to convert it into finished goods. Annual Turnover: 30 Million.
Marketing Strategy: All marketing strategies are based on Segmentation, Targeting & Positioning. Based on these guidelines the strategies of the two companies are as follows: Haldiram Segmentation: The company focuses on buyer’s primarily seeking good quality sweets.
Targeting: Further the company sees different characteristics associated with each consumer response segment on which it is rated. These are: Income groups Region City (Tier-1, Tier-2 etc. ) Occasion Based on this two types of sub-segments have been targeted: (i)High income group seeking fresh prepared sweets. This is handled by opening company owned outlets in Tier-1 cities where there is huge demand.
(ii)High ; upper middle income group seeking branded sweets at lower cost. This is handled by channel in Tier – 1,2 ;3 cities. The pattern selected for target market selection is:
Market Specialization (for high income group): The firm concentrates on serving many needs of a particular customer group. Product specialization (for upper middle income group): The firm makes a certain product (Sohan papdi, gulabjamun ; rosogulla) that it sells to several market segments. Positioning: The company created a customer focused value proposition of “Quality & trust”. The initiatives which helped haldiram to uniquely position its brand are: Products: Offering wide variety of fresh sweets ; packed sweets.
Adding new varieties which are preferred by target market.
Pricing: The strategy is two levels: One for fresh prepared sweets for higher income group. These are the most profitable customers. Second for packed sweets for price conscious high ; upper middle income group customers. Offering its products at competitive prices in order to penetrate the huge unorganized market of sweets. Place: The strategy is two levels: Company outlets in Tier-1 cities for fresh perishable sweets ; for packed sweets.
For packed sweets strong distribution network to ensure the widest possible reach for its products in India as well as overseas.
The company has C;F agents in all states, 700 distributors in domestic market almost in all the towns, 35 buyers in international market. The retailers for this product are almost all multi brand outlets (hyper market, super market, confectioners etc). Distribution channel of Haldiram is as follows: Promotion Haldiram product promotion in sweets had been low key. The company has tied up with an advertising firm ‘Profile Advertising’ for promoting its products. Attractive posters, brochures and mailers are designed to enhance the visibility of the Haldiram brand.
Marketing is clearly trying to classify its product category in South East corner (i. e. ) High uncertainty of untried brands ; High difference between brands as for the target market it is always a part of the consideration set, neither information nor evaluation is required. The buying behaviour has been sub contracted (to Haldiram) due to very strong brand equity. Thaggu Ke Laddu: Segmentation: The company focuses on buyer’s seeking, high quality special type of local sweet. Targeting: Further the company sees different characteristics associated with each consumer response segment on which it is rated.
These are: Income groups
Occasion Based on this the company following sub-segments have been targeted: (i)High & middle income group seeking fresh prepared sweets. The pattern selected for target market selection is: Market Specialization: The firm concentrates on serving many needs of a particular customer group. In this case it is the population of Kanpur. It gains a strong reputation in serving the customer group and becomes a channel for additional products the customer group can use. Positioning: The company uses mysterious campaigning slogans but just to attract the customer but once inside the shop it is all together different.
The company creates a customer focused value proposition of “Fresh & Honest”. The initiatives which helped the company to uniquely position its brand are: Products: Offering fresh sweets to the target market. The company prepares daily fresh sweets to handle immediate requirements. Alternatively the customized sweets can be prepared as per the requirement of customer in front of him in 20 to 25 minutes. In this case the sweets are kept in generic form (ready to mix). The variants used are: Dry fruit (Almonds, Cashew, Pistachio, Mixed) Mawa Ratio (50% or 100%) Suji Ratio (25% or 50%)
Wheat Ratio (25% or 50%) Pricing: The pricing is based on the variants used and hence fits in every ones pocket.
Details are as follows: Plain Ladoo (Mawa, wheat or ladoo): Rs 180. 00 Addition of Almond: Rs 40. 00 Addition of Cashew: Rs 60. 00 Addition of Pistachio: Rs 60. 00 Place: Four company owned outlets are strategic located so as each point of Kanpur lies in 7-10 Km radius of the shop. The company offers home delivery as well for the sweets with a minimum order value of Rs.
250. 00. Promotion:The product promotion is almost negligible as each person of Kanpur is aware of this shop.
In case some new product is introduced promotion is done by putting big banners on the shop itself & advertising in local news paper. Marketing is clearly trying to classify its product category in North East corner (i. e.
) High uncertainty of untried brands & Low difference between brands as for the target market it is always a part of the consideration set, no information is required & products can be evaluated during preparation in front of them. The buyer is a habitual buyer. Selling Strategy: Haldiram: From the historical era sweets has been a part of the Indian culture & hence need for good quality sweets has always been present.
Due to demand & supply gap of raw material in the past years a lot of cases related to use of adulterated goods, not following government norms have come up in the recent years and this need was very well understood by the management of Haldiram who through their Unique Selling Proposition against the unorganized sector on level of hygiene and sustained product quality without any compromise in taste has resulted in a shift of the consumers getting higher level of satisfaction, by consuming products from a bigger brand.
The brand image has been made over a period of time by continuously providing expected quality sweets to the customer, maintaining manufacturing hygiene & quality standards, and most important of all “Word of mouth” by their customer’s. Keeping in view long term business presence, pull strategy is adapted by the company.
Consumer schemes in the form of gift packs come up during festival season when there is a huge demand of sweets. The company uses this opportunity for promoting its new products by bundling new products in the gift pack. This is the only evidence of push strategy.
No promotional offers to customer or to channel members are given by the company. Company understands the importance of unit service level not only in terms of sales loss but also in terms of buyer’s decision being altered by the retailer offering other brand. To improve service level good margin are given to distributor (appx.
5%) and retailer (appx. 11%). The high cost of products is traded off by the high quality of sweet. Till few years back the brand has been able to sustain its leadership in the industry & was classified in South East corner (i. .
) High uncertainty of untried brands & High difference between brands. But, in the recent years new companies like Bikanervala who are following the same business model are giving tough competition & shifting industry classification to South West corner (i. e. ) Low uncertainty of untried brands & High difference between brands. Hence , the role of sales force & channel members have become very crucial not only to ensure maintain original classification but also to counter its competitor strategy of shifting it.
The roles which the company is emphasizing upon are: Ensure the all products are displayed.
Ensure readily availability of the product. Help customer in the decision process understanding his requirements which may vary depending on: Budget Own use or for gift purpose Consumer age Consumer taste Shelf life Recommend packaging based on the usage: Gift Own use Gap between buying & using Thaggu Ke Laddu: The need for special local sweets is present. The company is known for its special sweets & quality being served for decades and is always a part of the consideration set of the local people of Kanpur.
Clearly the pull strategy exists which generate the demand. Their Unique Selling Proposition is preparing sweets in front of the customer and all the information is visible. The customer can actually feel the freshness & purity of the sweets.
Since it is a reputed sweets shop of a small town it is not possible to compete in the market without consumer schemes. The company offers 10% discount on single purchase of more than 10 Kgs. In cases of marriage if the order book is more than 100 Kgs besides 10% discount the company on its behalf offer 01 silver coin of 10 gms.
Pricing is slightly higher than its local competitors Mithas, Banarasi, Shantiniketan but it is traded off by quality it provides to the customer. The industry classification to North East corner (i.
e. ) High uncertainty of untried brands & Low difference between brands. Customers are aware of the product & come to its shops with a clear mind set as to what they wish to buy. Hence, the role of sales force in minimal as they are not involved in the decision process. However, the sales force focus on: Ensuring personal attention to each customer.
Ensuring customer satisfaction.
Ensuring timely delivery of sweets to the customer. Lately two more focus areas have been added: Informing customer about new upcoming products. Getting customer feedback about the products & new choice of products Impact of selling activities on the attributes: Haldiram: Strong customer relationship Customer trust High involvement of sales force in the decision making process Thaggu Ke Ladoo: Customer loyalty Customer awareness Gaps in achieving the marketing goals Haldiram 1. Company owned outlets are at very few locations due to which a huge target segment for fresh prepared sweets remains untapped.
