A Report On Amiras foray into the Indian snacks market

By Vidhi Choraria 11BSPHH010942

IBS Hyderabad
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A Report On Amiras foray into the Indian snacks market

Submitted byVidhi Choraria 11BSPHH010942

A report submitted in the partial fulfillment of the requirement of MBA Program of IBS Hyderabad Distribution list Company guide: Mr. Yogesh Arora General Manager- Sales Amira Foods India Ltd. Faculty guide: Dr. Sridhar Vaithianathan Asst. Prof. (Operations) IBS Hyderabad

Amira Foods India Ltd., Delhi

Date of submission- 4th June, 2012

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ACKNOWLEDGEMENT
I take this opportunity to gratefully acknowledge the assistance and contribution of the people who had faith in this project. I would begin by extending my sincere gratitude to Mr. Karan A. Chanana, Chairman, for giving me a chance to work with Amira Foods India Ltd. I feel privileged to have worked with and enjoyed the support of my Company guide, Mr. Yogesh Arora, General Manager (sales). I am deeply indebted to him for all the help I received, without which this project could not have come to pass. He made available all the resources that came handy in completion of this project. He took special interest in ensuring that I get ample field exposure so that I could understand the intricacies of the business. I am extremely thankful to my faculty guide, Dr. Sridhar Vaithianathan, Asst. Prof, IBS Hyderabad. His constant guidance helped me overcome many barriers in the course of my study. I am fortunate to have got such an encouraging guide who made me push my limits and strive for bigger accomplishments. Last but not the least; I would like to give my sincere thanks to Mr. Rajiv Verma, Vice-President, Amira Foods. India Ltd. Regular discussions with him regarding the progress of my project made sure that I was on the right track. His guidance motivated me to give this project my best effort.

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Table of Contents
Cover page.01 Title page...02 Internship certificate..03 Acknowledgement.04 5. Table of contents05 6. Executive summary06 7. Introduction07 7.1 Background..11 7.2 Kellers model..12 7.3 Objective..13 7.4 Methodology14 7.5 Scope & limitations..15 8. Economy industry analysis16 8.1 Introduction to snacks industry....17 8.2 Growth in the snacks industry..19 8.3 Competitive analysis29 8.4 SWOT analysis................................30 8.5 Porters five force model.................................31 9. Company analysis..32 9.1 About the company..34 9.2 Product portfolio......42 9.3 Award and recognitions..............................43 9.4 Market segmentation45 9.5 Promotion.46 10. Project specific analysis.48 10.1 Market analysis (Phase 1).....70 10.2 Customer preference (Phase 2)......73 11. Conclusion & Recommendation74 11.1 Conclusion....77 11.2 Recommendation.......78 12. Outcome/ Contribution.80 13. Learning from SIP..82 14. References..84 15. Appendix...87
1. 2. 3. 4.

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EXECUTIVE SUMMARY
This project will bring to the fore the competition that exists in the Indian snacks market. The project has been done for Amira Foods India ltd. which is one of the largest privately owned rice companies of India. By introducing snacks to its portfolio it has forayed into an industry that is replete with competition, both from the organized as well as the unorganized market. Therefore, it became imperative to first study the competition and the various offerings by different companies. This project has been divided into two phases. In the first phase, I undertook a study of the snacks market by visiting retail shops all over Delhi to get an idea of the snacks offered by various companies, their promotion tactics, and their placement in the shops among other things. A list of questions was prepared and by way of interacting with shopkeepers information was sought. For this purpose, I divided Delhi into 5 zones namely- North, South, East, West and Central. The rationale behind this division was to ascertain if there was any brand that was being sold better in a particular region than the other. After having completed this study, I got a fair idea of what all does a customer look for when he/she makes a purchase. This led me to conduct the second phase of my project where a structured questionnaire was given to customers who rated various variables on a 7 point Likert scale. A factor analysis was run on the data generated to find out the correlation among the variables and also to find out which factor emerged as the most important one. Before starting the first phase of the project, I did a market analysis wherein I went to retail shops and simply listed down the products offered by different companies. A comprehensive list was generated where the following information was gathered- name of the company, pricing, number of brand offerings, different sizes available, form of packaging and promotional schemes. This was solely done on the basis of observation. When I started the first phase of the project, I was already well aware of the different offerings in the market. The task now was to find out which player generated maximum sales, which variant was sold most and related questions. This information was sought by way interacting with the shopkeepers as well as customers who visited these shops and were looking to buy snacks. In order to make the findings from the project cogent, I decided to include customers too in my area of study. Therefore, the second phase was only targeted to the customers. The questionnaire covering 11 variables emerged from the discussions with the retailers and customers in the first phase. On the basis of the interpretations, Amira foods India ltd. will be able to Understand the buying behavior of consumers in all parts of Delhi. Decide which variant they should add to their current portfolio of 4 variants. Get an idea as to which variables like price, promotion and place among others; affect the buying decision of consumers.
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INTRODUCTION

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BACKGROUND
Amira Foods India Ltd. is predominantly a manufacturer and exporter of rice. Looking at the growth in the FMCG sector, the company decided to diversify its brand portfolio, the result of which was Amiras foray into the Indian snacks market. The snacks are slat ed to be launched this year. Amira has planned to launch 4 variants namely; Aloo bhujia, Bikaneri bhujia, Navratna mix and Zabardast slims. The various snacks had a soft launch in the metro cities of the country excepting New Delhi. The leads from the soft launch indicated that consumers will accept this brand. In the initial days of test marketing, when the consumers were asked a few things that they would like to change about Haldirams snacks, three points came up which Amira cashed on. Consumers felt th at Haldirams snacks were too spicy and that they left a mint like taste on the tongue. Apart from this, Haldirams snacks when taken in the hand leave behind oil. Amira tried to overcome all these negative points and created less spicy and cholesterol free snacks. In a market where Haldirams is almost synonymous with snacks, it is difficult to create a niche for a lesser known company. Amira has outsourced its manufacturing to Chatarpur enterprises. They buy each packet from chatarpur enterprises at Rs 19. The first appearance that Amira snacks made in New Delhi was at the Ahaar Food Festival, of which I was a part. The snacks were put up for sale at the exhibition. What the company wanted to get were customer insights, sales was just a by product of the exhibition. I had the opportunity to interact with customers and ask them how they liked or disliked the newly introduced snacks. While most of them appreciated the taste some had minor issues regarding the taste. For some of the customers, the decision whether to taste the namkeens or not depended on how spicy the snacks were. Most people across India like their food to be spicy in moderate limits. Gujaratis prefer it to be less spicy, whereas Rajasthanis prefer their food be very spicy. Among the retailers that visited the exhibition, Walmart, Vishal Megamart and Big Bazaar expressed their willingness to stock the snacks. However the price that these retailers charge to stock the snacks could be a cause of cause. For instance, Spencers is charging 4L per SKU, which is deemed to be too high. All the snacks are priced at Rs 39 and the quantity offered is 150 grams. Compared to the other brands available in the market, this price is high. Amira will have to go for regional pricing in order to induce sales. Haldirams has a stronghold in North India, as such the prices in this part of the country will have to be brought down. Also, the tax structure will have to be taken into cognizance before setting out the price. Places that charge a tax of 13% or more can sell the namkeens at Rs 39, and the ones than charge a tax of less than 13% can sell the namkeens at say Rs 35. As such, for the namkeens to sell at Rs 39, South India should be targeted. Amira is relaying on word-of-mouth publicity for its snacks. Advertisement in trade magazines is being considered. Advertisement on televisions is not being considered due to the high costs involved.
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85% of the snacks are potato based and Amiras 4 variants are also potato based. This shows that their products have huge potential. The idea was to focus on traditional Indian taste. Amira wanted its snacks to be tasty and crunchy and more importantly, healthy. The snacks promise to be zero trans fat and calories. They want to target those men and women, who work during late night shifts, students who stay in hostels or paying guest accommodation. The snacks can serve the purpose of mid break meals. The other purpose that the company sees is of these snacks to be used while traveling distances. Amira Rice is available pan India with about 122 distributors all over. As such, it has a strong presence in both general and modern trade. The plan is to club namkeens with rice and create a grocery combo to induce sales. It is also considering BTL activation for promotion. Following are the 4 variants launched by Amira- Zabardast slims, Navratna mix, Aloo bhujia and Bikaneri bhujia.

Understanding that the customers in especially Delhi are price sensitive and also the fact that a wide range of choices are available in the market, my company guide, Mr. Yogesh Arora (General Manager- Sales) handed this project to me where my study was related to understanding the competition and also making recommendations to the company as regards customer preferences. All data collected for the study is first hand (primary). An all rounded analysis from both the retailers as well as consumers perspective was needed; therefore this project has been divided into two phases. In the first phase, I visited retail outlets all over Delhi and questioned retailers as well as customers. The information was sought with the help of a disguised structured questionnaire. For this phase, I divided Delhi in 5 zones. The rationale behind this segregation was to find the presence of regional brands, say something that was sold only in the Eastern part of Delhi and not in the Northern part. Following 5 zones were covered1. North Delhi - Timarpur, Model Town, Kamla Nagar, GTB Nagar, Pratapnagar 2. West Delhi - Punjabi Bagh, Paschim Vihar, Rajendra Nagar, Patel Nagar, Tilak Nagar 3. East Delhi Bhajanpura, Yamuna Vihar, Preet Vihar, Gandhi Nagar
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4. South Delhi INA Market, Malviya Nagar, New Friends Colony Market, Saket, Kailash Colony 5. Central Delhi Bengali Market, Shankar Market, Darya Ganj Effort was made to keep a right blend of modern trade stores and general trade stores in the study, to get as accurate results as possible. The questionnaire was designed on the following attributes1. 2. 3. 4. Most selling brand Most selling variant Best selling size Sales team performance

While seeking answers to these questions, I made sure that I allow the respondents to have a free flowing conversation with me. That helped as some retailers gave me more information than I demanded. This came in form of recommendations to the company I was conducting the survey for and also loopholes in the present brands that dominated the market. Interaction with them helped me get a good hold of the Snacks market. Apart from this, I included consumers too in this study. When I went to big retails stores like Reliance Select, Spar, Big bazaar and the like; I tried to overhear the conversations that customers had between themselves while making a purchase decision related to namkeens. This helped me to get a stronghold of consumer preference. I got an insight into the considerations that lead consumers into choosing one brand over another. But simply observing them was not enough to get an all-round idea of customer preference. This was the idea that led me to move to the second phase of the project. In the second phase, my interviewing population consisted of only end-consumers - housewives who buy namkeens for the entire family, kids who buy it as impulsive purchase, working people who consume it while working late night and people who team up their drinks with snacks. An online questionnaire was posted and responses were automatically recorded. Some questionnaires were filled in hard copy too. The responses were then transferred to a software called SPSS, and a factor analysis was run on the same. The attributes that were covered in the questionnaire emerged from the interaction with retailers and consumers in the first phase. Following attributes were covered 1. 2. 3. 4. 5. 6. 7. 8. Price Promotion Size Flavours Target group Convincing power of the shopkeeper Shelf life Health
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9. Purchase 10. Availability 11. Packaging

On the basis of the final interpretations and outcome of this project, Amira Foods India Ltd. will be able to Analyze which is the best selling brand Analyze which is the best selling size How often should the companys sales team visit the retail outlets What factors affect consumer purchase the most Which variant should they launch next

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Kellers Model of brand equity

Brand equity is a phrase used in the marketing industry to try to describe the value of having a well-known brand name, based on the idea that the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well known name, as consumers believe that a product with a well-known name is better than products with less well known names. Kellers model shows the different levels of relationship that consumers share with a brand. Every brand unquestionably strives to reach the equity stage. Following analysis has been done with respect to Amira snacks-

Who are you - Amiras a manufacturer supplier and exporter of Rice. It recently diversified its product portfolio by foraying into the snacks segment What are you - A new entrant in the snacks food business. Offers 4 variants namely- Zabardast Slims, Aloo bhujia, Bikaneri bhujia, Navratna mix. These snacks are available at a price of Rs 39 in 150 grams attractive packages. What about you - Unlike other snacks that taste too spicy and and leave oil in the hand, Amira has taken special care to ensure that their snacks dont taste too spicy. Also the snacks are cholesterol free. What about you and me - This is the stage that every brand wants to reach. At this stage customers have formed an emotional relation with the brand. As such they are willing to pay that extra price if the need be because they are completely satisfied with the performance of the brand. To reach this stage, every brand will have to establish itself strongly at the bottom three stages of- salience, performance & imagery and judgements & feelings.

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OBJECTIVE
The aim of the project is to fulfil the following objectives To find out which is the best selling brand and its unique selling point To find out which are the best selling variants To find out what is it that customers keep in mind while buying a pack of namkeens To find out what way can Amiras snacks have an edge over other players To find out which is the best selling size To find out the presence of regional brands To find out how often should the sales team of a company visit a retail store To find out whether customers are price sensitive or not? This is essential because this will help The company take a decision regarding its pricing. At present the snacks are priced at Rs 39 which is deemed high by the company itself.

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METHODOLOGY
Type of research design Exploratory research design will be followed to find out all the information related to snacks. Only retailers based in Delhi have been considered for the study Information needed The data that I need for this project will be collected through primary sources. Data collection from Primary sources Disguised structured questionnaire will be used to sought data from the retailers and customers in the first phase. In the second phase structured questionnaires will be used to gather information from the end consumer. Instrument for collecting data The instrument used to collecting data is questionnaire. Population For phase one, the population consists of retailers all over Delhi. For the second phase, public at large has been included to conduct the survey. Sample size For phase one, a sample size of 100 retailers is taken. For phase two, a sample size of 120 respondents is taken. Statistical tool used SPSS Analysis Factor analysis along with pie-charts and column graphs.

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SCOPE AND LIMITATIONS

The study has been accomplished under the following limitations The research is completely driven by the responses of retailers and consumers. Incomplete information by them may have skewed the analysis a fair bit. While most retailers co-operated in answering the questions, some indulge din giving blanket answers. In that situation I may have asked leading questions and that could have affected the analysis. Lack of secondary data regarding the competing brands might have given a not so satisfactory picture of certain brands. This study is limited only to Delhi. All findings, competitive analysis have been derived by visiting retail outlets in Delhi alone. Only a certain number of retail stores could have been covered owing to the time constraint of 3 months.

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ECONOMY INDUSTRY ANALYSIS

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Introduction to the snacks industry

Snacks are a part of consumer convenience or packaged food segment. According to an APEDA survey, the Indian snacks market offers 1000 snack items and 300 types of savouries. Namkeen 1 as an ethnic food category is fast growing in India and the global world. The snacks industry has been growing at 10% for the last three years. India is one of the largest snacks market in Asia Pacific and contributes 3% of the total market. Snacks are described as the small quantity of food that is eaten between proper meals. Savory snacks have been part of Indian food habits for years now. Consumers associate snacks with time -pass. There is no particular time for snacks; consumers generally have it at tea-time. Namkeens are seen as hunger quencher, take-away items which are consumed fast without being stored much. They are almost a must have item on the snack platter on family occasions. The Indian market is replete with a plethora of snacks players. The snacks market is divided between branded and non- branded players. The branded market constitutes 40% of the market share whereas non-branded market (regional players) constitutes the remaining 60%. Also, branded snacks are available at 25% higher price than non-branded ones. The branded sector is growing at 25% annually. The consumer today has a wide array of snacks to choose from. Not only are these snacks available in myraid flavours, they come in different sizes too, to suit the needs of different customers. When a customer buys a pack of snacks for its family, a size of 400 gm or 1 kg is likely to be bought. If a customer buys a pack for individual consumption, he/she is more likely to buy a size of 22gm/ 48gm/ 200gm. Of the wide range of snacks available, potato based snacks constitute a sizeable segment of the snacks industry- a whooping 85%. Customer has a choice to make between branded and non-branded snacks. Non-branded snacks are mostly regional, in Delhi itself certain local brands will be found only in East Delhi whereas some others will be found in say, North Delhi.

Namkeen is a Hindi word used to describe the savory flavor. It is derived from the word namak, meaning salt. In this project, namkeens and snacks will be used interchangeably.

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Growth in the snacks industry

India has a relatively young population with 55% of its population in the age group of 20-59 years. This group is also high in consumption, therefore this trend will provide a boost to the snacks industry. The demand for snacks is growing due to other reasons as well like, the growing multiplex culture, snacking at home while watching TV, and pubs & bars (where they are served for free). There is also a stark change in lifestyle, leading to a growth in this sector. Increase in the number of working women and nuclear double income families is leading to more demand for processesed, ready-to-eat and ready-to-cook food. According to Euromonitor2 money spent by Indians on outside home meals has more than doubled in the past decade to about $5 billion a year, and is expected to further double in the next 5 years. Along with this, the disposable income of the Indians is increasing too, and is expected to grow even further in the years to come. Following is an extract from Mckinsey Global Institute which throws light on the changing income trends:-

Euromonitor is a marketing intelligence firm, providing market research and business intelligence reports and data to industry

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Buying behaviour

TARGET CUSTOMER

Males

Females

Working women
Easy snacks with cocktails, smaller SKUs & mixtures

Housewives

Larger SKUs for storage and guests. Brand focus nil, for the purpose of time-pass

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Competitive analysis
The Snacks market is dominated by the non-branded sector, which holds a 60% market share. Perhaps the reason behind this market share is that these snacks are available at a price cheaper than their branded counterparts. Also the margin on local brands is higher than that on branded items. As such the shopkeeper may play a role in pushing the brand which brings him/her more benefit. Following comparison will validate the same-

Item Boondi Mixture Aloo bhujia Navratna mix

Brand Best bakers, 190 gm for Rs 41 Garden, 150 gm for Rs 30 Em-dees, 150 gm for Rs 42 Haldirams, 48 gm for Rs 10

Non-brand Grace, 120 gm for Rs 22 Shyam, 150 gm for Rs 25 Dhirjee, 100 gm for Rs 32 A-one, 70 gm for Rs 11

Among the branded players, Haldirams is the market leader. Bikano, Lehar, Em-dees, Kaleva, Garden are some other brands that constitute the branded market.

Haldirams started as a small shop in Bikaner, Rajasthan in 1937. By 1982 Haldirams had set up a shop in Delhi and the capital had begun to stop by and take note of the savouries and sweets. It was word of mouth that grew the business manifold over the next decade, till Haldirams came to stand for a food company that was synonymous with taste, hygiene and innovation. USA was the first market they started exporting to. What began as a small-town enterprise in India is today a global phenomenon. Haldirams product portfolio consists of namkeens, sweets, cookies, sherbets, papads and chips. Out of the 27 namkeens; Aloo bhujia, bhujia, navratna mix, khatta meetha are the best selling. Following is the distribution system of Haldirams Companys manufacturing unit

Carrying and forward agents

Distributor

Retailer

Consumer

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Value Proposition
Functional benefits- Taste hygiene, great quality, attractive packaging, extensive product range. Emotional benefits- Smart buyer, association with Indian roots. Credibility- Makes tasty and hygienic ready-to-eat food.

What makes Haldirams the market leader

There are 3 As which bolster the sales of any product. In the absence of any of the 3 As, the sales of the product is most likely to get affected. In case of Haldirams all the three conditions are sufficiently met, thereby making it a force to reckon with. 1. Awareness- Unless the buyer is aware of the product, he/she will not help boost the sales of that product. The simple first step for any company to do is to position the brand in the mind of the target audience. Haldirams with its promotions via hoardings ensures that the target audience is aware of the brand. The result of the promotion is such that Haldirams is almost synonymous with namkeens in the whole of North India. Whether a person has namkeens or not, he/she is definitely aware that Haldirams is a brand that sells namkeens of good quality. 2. Affordability- Haldirams follows competitive pricing. It seldom comes out with promotional schemes like buy 1 get 1 free or a certain amount of free quantity, that is because the brand is widely accepted as being affordable. No matter how good the quality is of a product, if it is not considered worth the money, its sales get affected. With the smallest offering priced at Rs 5, Haldirams is a brand that most people consider value for money. 3. Availability- Haldirams enjoys easy availability. With about 1035 distributors and presence in almost all general stores and all modern trade stores, Haldirams scores highly on the availability criteria. Apart from the retail outlets, it has restaurants at 18 locations in Delhi and the NCR. The restaurants are located at places that expect a lot of crowd like- Saket, IGI Airport, Connaught Place among others. Rs 5 and Rs 10 packs which offer 22 grams and 48 grams respectively are available at most pan kiosks.

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Product offerings 3 (namkeens)

Item Aloo bhujia Bhujia Khatta meetha Navratna Moong dal Punjabi Tadka Panchratna Mint lacha Kaju mixture Cornflakes mixture Nut cracker All in 1 Teekha sev Gujarati mix Chilli pataka Boondi Kashmiri mix Kabuli chana Chana cracker Chana jor Long sev Dal biji Nimbu masala Shahi mix Bombay mix Hara chiwda Chana dal Heeng jeera Chilli chatak Karodpati Karanchy mix Size/s 200gm/ 400gm/ 22gm/ 48gm 1kg/ 400gm/ 22gm/ 48gm 1kg/ 400gm 1kg/ 400gm/ 200gm/ 48gm/ 22gm 1 kg/ 400gm/ 200gm/ 20gm/ 43gm 200gm/ 22gm 400gm/ 200 gm 80gm 400gm/ 200gm 400gm 400gm/ 48gm 400gm/ 200gm 200gm 200gm 200gm 200gm 200gm 200gm 200gm 200gm 200gm 200gm/ 400gm 200gm 200gm 200gm 200gm 200gm/ 48gm 200gm 80gm 200gm 200gm Price (in Rs) 38, 75, 5, 10 183, 75, 5, 10 173, 71 173, 71, 36, 10, 5 203, 83, 42, 5, 10 40, 5 133, 67 20 115, 58 105 73, 10 83, 42 36 36 38 36 53 37 36 36 36 36, 71 38 77 36 39 36, 10 37 20 38 36

Table has been filled based on the analysis done prior to phase 1 of the project. As such, only those items have been put in that are available in retail outlets in Delhi.

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SWOT analysis of Haldirams

STRENGTH First mover advantage Original namkeens makers hailing from the city of Bikaner. Strong distribution network- 50 C&F agents and 1035 distributors. Excellent brand awareness High quality standards. Available in most stores including modern trade and general trade Has restaurants of its own, creating a great brand image. Offers a wide variety of namkeens. Customizes its products, Murukkus for south Indian customers. Excellent packaging stressing hygiene Uses hoardings and signage for promotion. OPPORTUNITY Rising income levels and changing consumption patterns. Opening of global markets WEAKNESS Offers low margins to retailers as compared to other brands. Does not run any promotional scheme, due to which customers sometimes prefer other brands.

THREAT Threat from non-branded sector Threat from other branded players. Due to the western influx, Haldirams may not be able to cash on the change in tastes owing to its image of a traditional Indian food maker.

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Kaleva is a manufacturer and exporter of traditional Indian sweets and namkeens. It is located in the Delhi and stocks over 1000 sweets, namkeens and other traditional eatables. Its product portfolio includes sweets, namkeens, sharbats(syrups), pickles and papad. It has a wide distribution network in the domestic market and caters to five star deluxe hotels like- Ashoka hotel, Maurya Sheraton, Taj group among others. The company is keen on expanding its exports to the Middle East, America and Europe. Following is a table listing out the various snacks 4 offered by KalevaItem Khatta meetha Aloo bhujia Moong dal Navratna Nimbu chatka Crispy strips Bikaneri bhujia Chabeni Tasty Bhel puri Size/s 150gm 150gm 150gm 150gm 150gm 150gm 150gm 150gm 150gm 150gm Price 44 44 44 44 44 44 44 44 44 44

Bikanervala is one of India's most prominent families in the business of traditional hospitality products like Sweets and Namkeens. Today, Bikanervala Foods Pvt. Ltd. is an ISO 9001:2000, HACCP and SQF 2000cm certified company with four modern manufacturing units in the National Capital Region and a chain of 88 outlets in India and abroad, serving vegetarian North Indian, South Indian, Continental, Chinese cuisine and Fast food along with a vast variety of traditional Indian sweets and snacks. Bikano is Bikanervalas international brand of packaged sweets, namkeens, papad and sherbets, manufactured to the world standards of hygiene and quality. Bikanos packaged products have always been a big hit with customers both in India and
4

The data has been compiled by visiting retail outlets all over Delhi.

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abroad. Bikanos concept of constant innovation through the use of modern technology for packaging retains its original flavour for maximum time period. The Quality Assurance Department has world class testing facilities for Colorimetric, Chromatographic, Chemical, Bacteriological and Physical analyses thereby ensuring quality of raw material, packaging material, packing material and finished goods. The quality standards are at par with the requirements of FDA, and Australian and New Zealand regulations. The demand for their products is a testament to the quality standard set by Bikanervala. Bikano prides itself in successfully integrating ultra modern technology to manufacture its traditional food products in their 5 factories across India. Their products are quite well known for being healthier than the oily snacks that are found outside since they are fried in machines which are programmed by Programmable Logic Controllers (PLC). It has always been in the forefront in adopting new technology for its products. Their state of the art canning and packaging technology ensures that the products have a longer shelf life without losing their freshness. The 3-ply laminate packaging extends the shelf life up to a year.

Product offering5
Item Moong dal Crunchy munchy Navratna Aloo bhujia Bikaneri Bhujia Khatta meetha Tasty Cornflakes mixture Aloo lacha Size/s 200gm, 1 kg 52gm 200gm+50gm extra, 1 kg 200gm+50gm extra, 1 kg 200gm+50gm extra, 1 kg 1Kg 1 kg 400gm 150gm Price (in Rs) 43, 178 15 36, 168 38, 168 38, 129 168 178 105 38

The data has been compiled by visiting retail outlets all over Delhi.

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A product of Pepsico India, Lehar was launched in 1996. The brand positioned itself by emphasizing its irresistible taste and using modern imagery. Lehar was re-launched in 2006 and positioned itself using the plank Taste zyaada kyunki oil taza. It promised to deliver good taste through the use of fresh oil in the manufacturing process. Unlike other players in the business that seldom invest in TVC (television commercial), Lehars famous tagline, Kya karein control hi nahi hota grabbed the attention of many. Also, Lehar snacks are available for purchase online. The internet has revolutionised shopping experience for many people. Lehar has joined the league by making available its snacks online for purchase. Unlike potato chips, namkeens have generally been associated with the family unit, not as a snack meant for individuals. And in the absence of small, easily disposable pack sizes, namkeens never really appealed to a lone consumer looking for a snack. If you bought a big packet of chips, you are likely to finish the whole lot but this is not the case in namkeens. Thus the chota pack came into picture. Lehar was the first to get into small pack sizes of 35 gm.

Product offering6
Item Bikaneri bhujia Moong dal Nut cracker Navratna Aloo bhujia Aloo bhujia pudina twist Shahi mixture Chatpata mix Size/s 200gm, 1 kg, 22gm 200gm 160gm 200gm 200gm/ 400gm/ 1 kg 1 kg 1 kg 200gm Price (In Rs) 35, 183, 5 44 25 35 59, 73, 129 178 178 35

The list has been compiled by visiting retail outlets in Delhi.

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Garden Namkeens Pvt. Ltd. is based in the Indian state of Maharashtra. It manufactures exports and supplies namkeens. It has been in business for the last 18 years. In all the processes, Garden adheres to highest quality control measures. Its plants are equipped with latest machinery facilitated by cutting edge technology. It has set up a huge site where 12 semi automatic machines are installed to manufacture Namkeens. Its site has an automatic temperature control system fitted on all the manufacturing machines to preserve the quality and taste of the products round the year. The packaging system involves use of automatic packaging machines in air conditioned plant, eliminating the possibility of human contact. The unique selling point of Garden snacks is that it has provided the consumers with something new, something other than regular snacks that are already available in the market. The retailers stocking this brand consider it a good SKU because it has created something unique. It has brought the taste of Bombay to Delhi.

Product offering7
Item Diet Chidva Diet Bhel Crispy murukku Yellow banana chips Cornflakes mixture Pepper banana chips Raita boondi Size/s 180gm 180gm 180gm 100gm 150gm 110gm 180gm Price (In Rs) 32 32 32 32 30 32 32

Em-dees is the snack food range of Chandpur Enterprises Ltd. VFD and PLC systems are involved in the preparation process, which have a high level of automation. The food products are packed through nitrogen flushing and imported weight control systems. This ensures safety, hygiene and freshness of incredible standards. Em-dees is known for running promotional schemes like, Buy 1 get 1 free. According to some retailers this brands unique selling point is that customers generally get lured into buying Emdees because of the promotional schemes it runs.

The list has been compiled by visiting retail outlets in Delhi.

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Product offering8
Item Navratna Khatta meetha Navratna Bhujia Moong dal Aloo bhujia Nimbu sev Chidwa Size/s 150gm 150gm 150gm 150gm 110gm 150gm 150gm 150gm Price (In Rs.) 42 42 42 42 42 42 42 42

Bikaji foods International Ltd. was established in 1987. It is based in Bikanner, Rajasthan. All bikaji snacks are made on fully automated machines, completely untouched by human hand. Bikaji snacks are well known throughout India. They export to USA, UK, Middle East and parts of Africa. The company was rewarded with the National award for Industrial Excellence in the year 1991-92, thereby becoming the first company to receive such an award in the category of food products. The company manufactures sweets, namkeens and papad.

Product offering
Item All in one Kuch Kuch Bhujia Moong dal Goldy Navratan Sab kuch Khatta meetha tana-bana Cornflakes mixture zordar Cornflakes with dry fruits mastkeen Chana jor garam Tasty Gup Shup Size/s 200gm 200gm 200gm 200gm 200gm 200gm 200gm 200gm 200gm Price (in Rs.) 40 40 40 40 40 40 40 40 40

The list has been compiled by visiting retail outlets in Delhi.

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Apart from these brands which are available at most stores, there are a handful of brands that do not enjoy too much of the market share, yet they have been in the market for some time now.

Store brands
A store brand (or private brand) is a brand created and owned by a reseller of a product or serve. Easy day, is a franchise model between Bharti group and Walmart. It has launched a brand of snacks under the private label of Great Value. Great Value private label offers wholesome choice and value to customers through its range of products, including flours, dry fruits, spices, cereals, tea, cold beverages, jams, ketchups, Indian snacks, toilet cleaners, floor and glass cleaners at very reasonable, competitive prices. The snacks are available at a competitive price of Rs 34 for a quantity of 200gms. Reliance Fresh has an in-house brand by the name of Reliance Select. This brand runs promotions like- Rs 7 off thereby selling a 150gm packet at Rs 23. Price sensitive consumers get lured by such schemes. Also, the stores get more margins on these products. As such the shopkeepers are likely to push these brands to the customer. This was evident with the placement of these snacks. Reliance select was kept in a different basket away from the other brands of snacks. The intention was clear; they wanted their brand to catch the eye of customers.

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SWOT Analysis
STRENGTH Established brand names, likeHaldirams, Bikano, Lehar among others. Extensive distribution network, likeHaldirams has 1035 distributors all over India. Abundant availability of raw materials Vast domestic market It offers a plethora of choices - 1000 snack items and 300 types of savouries. WEAKNESS Lack of adequate quality control & testing methods as per international standards. Even though the shelf life of namkeens is generally said to be 6 months, most of them show signs of stagnation before the end of 6 months. Inefficient supply chain due to large number of intermediaries Packaging facilities are inefficient. No uniform standard for packaging is followed as is the case in USA or developed countires. THREAT Competition between branded and local (regional) players. Preference for fresh food. High inventory carrying cost.

OPPORTUNITY Rising income levels and changing consumption patterns Changing demographics- 55% of Indias population is in the age group of 20-59 years. Younger people are more receptive to trying new snacks. Growth of retail sector augurs well for the snacks industry. Their reach can be made more extensive Opening up of gobal markets.

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Porters First Five Model

It is a framework for industry analysis and business strategy development formed by Michael E. Porter. The following five forces determine the competitive intensity and therefore attractiveness of the industry. This model has been applied to the Indian snacks industry-

ENTRY BARRIERS (HIGH)

Capital intensive Strong distribution network Low operating margins.

SUPPLIER POWER (LOW)

Conditions of supply are mutually agreed upon; as such supplier power is low.

COMPETITIVE PRESSURE (HIGH)

Haldirams dominates more than half the market share

BUYER POWER (HIGH)

Due to the wide brand choice available in the market, buyer power is high. As such, consumers can easily switch brands.

THREAT OF SUBSITUTES (HIGH)

Presence of a plethora of non-brands

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COMPANY ANALYSIS

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About the company

The Amira group was founded in 1915. It was founded by Shri B.D. Chanana as a trading house. Shri Karam Chand Chanana handled the reins of the group thereafter. The third generation headed by Anil Chanana steered the group to newer heights. The fourth generation scion, Karan A Chanana is at the helm of Amira group today. A passion for food for began almost a century ago, continues even today with an unflagging spirit of achievement and enterprise under the dynamic leadership of Mr Karan A Chanana. He enabled the company to realise its potential in the global arena and established the organisation with the prime focus on exports. The business has evolved from trading to processing, branding and distribution of agro commodities to become Indias largest privately held rice company. It is headquartered at New Delhi, while the manufacturing facility is located at Gurgaon, Haryana. Its international offices are located at the following places Amira C Foods International DMCC, UAE Amira Foods (Malaysia) Sdn. Bhd. Malaysia Amira Foods Pte. Ltd. Singapore Amira G Foods Limited, UK Amira Foods. Inc. USA

Vision
At Amira Foods, the vision goes well beyond commodities sales. The idea is to bond people and cultures across the world through the common language of food. Such is the power of Food Connect which enables Amira Foods to leverage its position as a leading producer and exporter of rice. Karan A. Chanana

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Timeline
Originally founded as an agro-commodities trading business by the Chanana family. Established foundation for international business through private label retail sales. Began to import food grain from China and Southeast Asia.

1928 11tretn

1915
1915
Karan A Chanana continues the rapid transformation of Amira from a family-run-business to a professionally managed global company. 1 Established Indias first fully integrated and automated Rice milling factory, incorporating best in class Buhlor technology, in Gurgaon, India .

2006 1993

Launched Amira branded strategy, today present in 24 international markets. Started exporting to the middle east and Russia. Established subsidiary in Singapore.

Established subsidiary in Malaysia. Established fully-automated consumer packaging technology installation at Gurgaon plant.

2007
2008
Established subsidiary in the UK.

2008

2007
Established presence in the US market by launching international marketing office. Established subsidiary in Dubai.

Enhancing strategic focus on increasing geographic penetration.

2009
2009 2011

2011

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Product portfolio
Amira exports a wide range of Basmati, Non basmati and speciality rice along with a wide variety of agro commodities to more than 20 countries worldwide. A category focus on rice is well rounded through commitment to other agro-commodities and bulk commodity trading in pulses, sesame seeds, sugar, onion, potato, maize, soya bean extract, edible oil, palm oil, wheat, wheat flour, rapeseed, millets and spices. Its business is divided into two types

BUSINESS

BRANDED BUSINESS

PRIVATE LABELLING

Branded Business
Brand Portfolio: Rice Brand Amira Pure Traditional Basmati Rice Amira Indigo Extra Long Grain Basmati Rice Amira Good length Basmati Rice Amira Good Health Brown Basmati Rice Amira Sameena Basmati Rice Amira Thai Jasmine Aromatic Rice Amira Long Grain Rice Amira Sharbati Aromatic Long Grain Rice A description of its different brands of Rice Amira top Basmati brands 1. Amira Pure Basmati- It is renowned for its pearly-white texture and delightfully long scimitar shape. Its tantalizing fragrance arouses the senses, inviting one to indulge in rice nirvana. Its special characteristic is that is doubles in size when cooked. Cooking benefits: The finest grains of pure traditional basmati. Grains that have been matured for 18 months.
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Category Traditional Basmati 1121 Basmati Extra Long Grain Rice Pusa Basmati Long Grain Rice Brown Basmati White Pakistani Basmati Rice Thai Jasmine Long Grain Rice Sharbati

Doubles in size when cooked, making for an ample portion size. Rich in taste, with tantalising aroma. Ideally recommended for white rice preparations, or lightly garnished rice dish.

2. Amira Indigo Basmati Rice- This rice is known for its extraordinary length and slender shape. The grain is firm, fluffy in texture and is matured for a period of 18 months. It is ideally recommended for rich traditional Hyderabad biryanis and contemporary pilafs. This particular variety has extended the pride if Indian basmati to global horizons. Cooking benefits A basmati variety that has been specially developed to offer superlative cooking properties. It has a grain length that is almost 2.5 times longer than pure basmati. The grain results in a perfect shape even when prepared in strong stream (Dum pukht). The long slender grains stay separate, without sticking to each other.

3. Amira Good Length Basmati Rice- It has an aroma that is sweet and appetizing. Also, an appearance that is sleek and slender. Upon cooking, the long and healthy grains turn pure white and fluffy in appearance. It is also very light. Cooking benefits When cooked, its long and slender grains turn dazzling white and fluffy. The cooked rice has a very pleasing texture as the grains stand distinct and stay separate. Its the perfect combination of fragrance and flavour. A strong and firm grain thats ideal for home-made biryanis and pilafs.

4. Amira Good Health Brown Basmati- It is the perfect choice for those looking for nutritional benefits, without compromising on great taste. It has a mild nutty flavour which is rich in vitamin B. The grain absorbs more water, which keeps one full and satisfied for longer periods. Clinical studies indicate that people who regularly consume whole grains weigh less than those who eat less of such fibre-rich foods. Just one cup of Amira Brown Basmati provides up to 88% of the daily requirement for manganese; and the grain is rich in nutrients including vitamins and minerals. Cooking benefits It is a whole grain cereal that is naturally low in fat. It has higher fibre content than white rice. There is uniformity in every grain.

5. Amira Khichdi Rice- This rice is rich in proteins and carbohydrates. This is special purpose rice used for particular meals like rice pudding. It can also be used as infant and toddler food.
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6. Amira Kheer Rice- Like Amira Khichdi rice this too is special purpose rice formulated for particular meals like rice puddings. It can also be used as infant and toddler food. Amiras value for money Basmati range1. Amira Daily Fresh Basmati Rice- This rice serves up a great value meal. It is known for its flavour and texture. It is hygienically packed to the highest quality standards to ensure its goodness is retained. 2. Sameena Basmati Rice- This Basmati offers unmatched quality and superlative length. It is conventional in taste with great sensory delight. 3. Guru Extra Long Grain Basmati- It is popularly known as Guru ka Guru Basmati. It is a perfect example of king size Basmati. This extra long grain Rice has great elongation on cooking; it is smooth in texture and fine in taste. Guru extra long grain basmati is popular for steamed cooking and Biryani cooking. 4. Sativa Basmati Rice- This variety is ideal for both everyday family meals as well as exotic dishes. With its pearly finish and separate grains it makes for a soft delicious mouth-watering meal. 5. Pashmina Sella Basmati Rice- Finest quality Sella Basmati is expertly milled and packed to retain its goodness. This rice makes an excellent accompaniment to all the favourites cuisines. Amiras non basmati range1. Amira Long Grain Rice- Amira long grain is the all-purpose rice that is appreciated for its perfect texture and taste. It is a good alternative to non-basmati varieties. It extends culinary advantages to cuisines where aromatic rice is not required. Cooking benefits Everyday cooking rice. Subtle flavour. Recommended for Chinese dishes including veg fried rice; it also blends very well with continental rice cuisines.

2. Amira Sharbati Aromatic Long Grain Rice- This rice is carefully sifted to ensure there are no stones and no husks. The sticky characteristic of this rice delivers a distinct culinary advantage to the diverse Indian and global cuisines.

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Cooking benefits Everyday cooking rice. Subtle flavour Moderate aroma Slightly sticky in nature Recommended for sticky rice preparations including sushi, Indian deserts and puddings.

3. Amira Thai Jasmine- This particular variety is a culinary mosaic of rich aroma and fine taste. From the origins of rice farms of Thailand, this rice grain is truly a wonder grain. It is popularly used for Asian cuisines. When cooked, this rice fluffs up and retains the fullness of wonderful fragrant aroma. It has a chewy texture. This variety is recommended for Chinese fried rice. 4. Amira Sona Masoori- This variety is considered the pride of Southern culinary palette of India. It is reed thin and richly nutty. Packaging formats Available in 1 Kg, 2 Kg and 5 Kg laminated poly pouches 1 Kg, 2 Kg, 3 Kg and 5 Kg pet jars 10 Kg HDPE bags. 5 Kg, 10 Kg, 20 Kg and 25 Kg DuPont bags. Conventional jute and polypropylene bags.

Brand portfolio: Oils The company has a rich repertoire of expertise in the procurement, processing and trade of palm oil products. Prime quality palm products are marketed by Amira Foods (Malaysia) Sdn. Bhd. Key markets for palm products include the African and Gulf regions. Stringent quality standards are maintained at each stage of operation. A wide variety of commercial and industrial packaging formats are available. These products cater to the specific needs of the global food processing industry.

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Amira palmoelin edible oil Oil Pure Vegetable cooking oil Brief note 100% vegetable oil, rich in antioxidants, vitamins A & D and cholesterol free made from finest quality of redefined, bleached and deodorised Palm Olein. Wide range and quality of Vegetable Ghee are available based on customer requirements. It is used widely for cooking ingredients. It is made from pure Palm Oil and its product. Vegetable based shortening are widely used for making breads, cakes, pastries, creams and sweets. Vegetable based Margarine is suitable for making cakes, creams, breads, cookies and pastries. It is made from pure and finest quality of Palm Oil.

Vegetable Ghee

Shortening

Margarine

Private Labelling
The second kind of business that Amira Foods India limited carries out is in form of private labelling9. It caters to private label segment in over 40 countries. Business is conducted through subsidiaries that are located through 4 continents. This sector has shown a consistent growth of 20% per annum. Top markets include Indonesia, Kuwait and Bangladesh. Following is a brief description of its products1. Rice Commodity Sella Basmati Rice Varieties Indian traditional, Pusa and 1121 Sella Basmati. Sharbati, IR-64, PR-106, PR-11, 1R-36, Panth-4, Sona Masoori and 1001 Sharbati, IR-64, PR-106, PR-11, 1R-36, Panth-4, Speciality Creamy and golden form Packaging Consumer and Bulk packs. Offerings Biryanis and contemporary pilafs. Southern delight and signature rice dishes

Long Grain and Medium Grain Rice

Raw and parboiled form

Attractive 50 Kg PP bags

Average Grain Length

Raw and parboiled form

Attractive 50 Kg PP bags

Private label products are those that are manufactured by one company for offer under another companys brand.

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Sona Masoori and 1001

2. Onions Product Red Onions Remarks Free from moulds, sprouts, diseases, decay and pest infestations. Packaging Netlon bags of 7, 10, 20 and 25 Kg capacities. Countries Indonesia, Malaysia, Mauritius, Seychelles, Pakistan, Bangladesh and Middle East.

3. Potatoes Product Potatoes Remarks Free from moulds, sprouts, diseases, decay and pest infestations. Packaging Netlon bags of 7, 10, 20 and 25 Kg capacities. Countries Indonesia, Malaysia, Mauritius, Seychelles, Pakistan, Bangladesh and Middle East.

4. Soyabean milk extraction Specifications Protein Moisture Sand & silica Fibre Urease activity Oils Percentage 48 % max 11 % min 2 % max 6 % max .30 units max 1.50 max Packaging Countries Pakistan, Bangladesh, Kuwait, Indonesia, Vietnam and China

50 Kg PP bags

5. Rapeseed meal Specifications Oil & Albuminoids combined Moisture Sand & silica Fibre Free from Percentage 38 % max 10 % min 2.5 % max 12 % max Castor weeds, Husk, Weevils, Moulds, Lumps Packaging Countries

50 Kg Pp bags

Bangladesh, Indonesia and China

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6. Maize Specifications Moisture Damage, immature, discolour Max weevilled Foreign matter Other colour grain Admixture Afloxotin Broken Percentage 14.00 % max 4.00 % 1.00 % max 1.00 % max 5.00 % max 1.00 % max 30 Ppb max 3.00 % max Packaging Countries

50 Kg PP bags

Pakistan and Bangladesh

7. Indian white crystal sugar Specifications Grade Polarisation Moisture ASH Icumza Percentage S30- S-2, S-1 Sugar 99.80 % min 0.04 % max 0.04 % max Below 100 (basis method 10) solubility 100% dry and free flowing. Fine to medium (800-1200 micron) 1 mg/ kg max 2 mg/ kg max In 50 Kg PP bags Countries

Bangladesh, Yemen, Africa and Sri lanka

Granulation AS CU PB 8. Millets Specifications Purity Admixture 9. Palm oil Products RDB Palm olein RDB Palm oil RDB Palm stearin PFAD vegetable ghee Margarine

Percentage 99 % min 1 % max

Packaging 50 Kg PP bags

Packaging

1,3,5,10,15,20,25 Jerry can/ bulk

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Shorening Cocoa butter substitute Ice cream dough Creaming Coating & other specialty fats

New product development

Amira is shortly going to launch the following Amira Pure Desi Ghee (Milk fat) Indian snacks in 4 variantsNavratna Mix Zabardast Slims Aloo Bhujia Bikaneri Bhujia These snacks will be available in 150 gram packs at rate of Rs. 39.

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Awards and Recognitions

Over the years Amira has earned recognition not just as an industry leader but also for its contribution to the countrys growth and economic stability. Amira was bestowed with the following awards The APEDA certificate of merit for outstanding contribution to Rice exports (1995-96) APEDA export award (1998-99) The Federation of Indian export organisation (FIE0) has given the FIEO AWARD for the years 1997-98 and 1998-99. Canara Bank presented the The best exporters award (1994 -95 & 1995-96) Rashtriya Udyog Ratan by the India International council for Industries and trade Amira Foods has set up yet another benchmark in the industry with brand Amira being honoured with the prestigious title The Indian Power Brands; the Global Super Power Edition chosen by the Indian consumer. INC magazine- certificate of excellence for exemplary growth and sustainable success in the year 2010.

Quality certifications
Quality is the touchstone that forms the reputation of the Amira brand. Their facilities conform to world-class standards. Regular audits by accredited organisations ensure that they only deliver the best to the customers ISO 9001:2000 Safe quality food certificate (which includes HACCP) BRC (British Retail Consortium) certified US FDA approved plant and facilities.

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Market segmentation
Market segmentation is defined as dividing the market into distinct group of buyers who have different needs, characteristics, or behaviours, and who might require separate products or marketing programs.

RICE BUSINESS

GENERAL TRADE/ETHINIC STREAM

Traditional shops Wholesalers Mom & Pops store

MODERN TRADE/MULTIPLES

HORECA/ FOOD SERVICE Hotels Restaurants Caterers Institutions

National chains
Regional chains Standalone stores

Horeca presence (in India) Pride group of Hotel Radisson- Pune DLF city club- Gurgaon Barbeque Nation- Delhi Seasons catering- Delhi Lemon Tree- Aurangabad Hotel Mayfair- Bhubaneswar Lotus family- Guntur Hotel welcome- Chennai Taj group

In pipeline Jaypee group

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Presence in retail (INDIA)

Key International partners Country Angola Mauritius Store Alimenta cash and carry, Greenway supermarket Winners, Jumbo, Shoprite, Spar, GSR, King savers, Super, Kaddy plus Fatima stores, Al Manama, world mart, Al wafa, Spinneys, Geant east, K.M Trading, world market, Lulu, Lamcy plaza, J. Mart, Costco, Sprouts, smart & final, Jetro, Restaurant depot.

UAE

USA

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Promotional events
The company runs a plethora of events to build a brand recall. Following is a list of events conducted by Amira Hotelympia 2012 Gulf food 2012 Food forum 2012 Aahar 2012 IFE, London Gulf food, Duba Ethnic foods, Brussels Winter fancy food show, USA Good food and wine show, Durban 2010 LE Mauritius Turf club SIAL Paris Walmart buyer seller meet 2010 Saudi Agro meet 2010 Yemen fair 2010 Sial china 2010 FHA- Singapore 2010 Oman Fair 2010 Gulfood Dubai 2010 Aahar Fair Delhi 2010 Poland Fair 2009 Oman fair 2009 Indo Africa meet 2009 Ethiopia fair 2009 Germany fair 2009 Aahar fair 2009

Consumer promotion Following events were meant for public at large Amira & IFB promotion Dec 10 and Jan 11 Rampuri Food festival at DLF City club, Gurgaon Amira at IITF, Delhi 2010 Amira wet sampling at Bharti Walmart, Kota, Nov 2010
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Best price, Aug 2010 More Hyper store launch, Hyderabad, 2010

Advertisement
ADVERTISEMENT

TVC

RADIO

PRINT ADVERTISEMENT

Delhi Times QTR adv 2011 ad

Agri business Ad July

My world Amira recipe

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PROJECT SPECIFIC ANALYSIS

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Market analysis (Phase 1)

I. Sample area: West Delhi Sample size: 20 Type of data: Primary Type of research: Qualitative and quantitative a) Stock that various retailers keep- The survey conducted in the West Delhi region shows that 60% stores keep both branded and non-branded snacks, whereas 40% keep only branded snacks.

Stock
Branded Branded & Non-branded

40% 60%

b) Most sold brand- The results indicate that Haldirams is the most sold brand followed by Bikano.

Most Sold Brand

Haldiram's 10% Bikano 5% 5% Narula (NB) A-one (NB)

80%

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c) Most sold size- The results indicate that 200 gram packs sell most followed by 48 gram and 22 gram.

Most Sold Size

200gm 48 gm 22gm 150gm

15% 15%

10%

60%

d) Sales team visit- Most of the retailers get regular visits by the distributors. Sales team from these companies visit seldom. Most of the distributors visit on a weekly basis followed by bimonthly visits.

Sales Team Visit

Weekly Bimonthly 5% Twice in a month Monthly Twice in a week

5%
10% 20%

60%

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e) Most sold variant of snacks- The results of the survey indicate that Bhujia (both Bikaneri and Aloo) are the favourites, followed by peanuts.

Most Sold Variant

Bhujia Punjabi Tadka 5% 5% Peanuts Khatta Meetha 5% Navratna

15%
70%

f) Lead time- Lead time taken to replenish the stock is generally observed to be 1 day. Usually the retailers arrange the required stock from the wholesaler.

Lead time
1 day 2 days 4-5 days

5%

10%

85%

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g) Best promotional schemes- Haldirams being the market leader does not run promotional schemes. There are a few brands that come up with schemes every now and then and get more sales due to the attractiveness of the offer. The results of the survey conducted show that Emdees has the most attractive promotional schemes followed by Lehar.

Best Promotional Schemes

Em-dees Lehar Godavari Reliance Select Bikano

15%

10%
5% 20%

50%

h) Best margin- A common complain that retailers have with Haldirams is that it doesnt offer good margins. The results show that Narula, a non brand offers the best margin followed by Haldirams and Lehar.

Best Margin
Narula A-one Lehar Haldiram's

20% 50% 20% 10%

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II. Sample area- East Delhi Sample size- 20 Type of data- Primary Type of research- Qualitative and Quantitative a) Stock- 70% of the stores keep both branded & non branded snacks, whereas only 30% stores keep branded snacks.

Stock
Branded and non-branded Branded

30%

70%

b) Most sold brand- Most sold brand remains to be Haldirams while the second best is a local brand called Nanaji.

Most Sold Brand

Haldiram's Nanaji 5% 5% 15% 50% 25% Bikano Garden Kaleva

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c) Most sold size- The most sold size is 200 gram pack followed by 22 gram pack. It could be attributed to the Rs 5 pricing of the 22 gram pack that it is sold second best.

Most Sold Size

200 gm 22 gm 250 gm 1 kg 150 gm

10% 15%

5% 45%

25%

d) Sales team visit- Most stores get visited by the sales team on weekly basis, followed by monthly and biweekly visits.

Sales Team Visit

Bimonthly Biweekly Weekly Monthly Yearly

10% 20%

15% 20%

35%

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e) Most sold variant- The most sold variant remains to be Bhujia followed by nut cracker.

Most Sold Variant

Navrata mix Bhujia Moong Dal Boondi Peanuts

30%

10%

50% 5% 5%

f) Lead time- Most retailers say that the stock gets replenished in a span of 1 day. This is followed by a time span of 2-4 days.

Lead Time
1 week 1 day 3 days 2-4 days

25%

10%

40% 25%

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g) Best promotional schemes- Lehars offer of 1 kg pack @ 129 made it most attractive, followed by Em-dees offer of buy one get one free.

Best Promotional Schemes

Lehar Em-dees 5% 5% Bikano Kaleva

25% 65%

h) Best margin- The best margin is offered by Nanaji, a local brand. This is followed by Bikano.

Best Margin
Bikano Nanaji Lehar Em-dee's

15%

5%

20%

60%

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III. Sample area- South Delhi Sample size- 20 Type of data- Primary Type of research- Quantitative and qualitative a) Stock- 80% of the stores keep both branded & non-branded snacks while only 20% stores keep just branded snacks.

Stock
Branded Branded and non-branded

20%

80%

b) Most sold brand- The most sold brand remains to be Haldirams. The next best is diet foods, for the health conscious people.

Most Sold Brand

Haldiram's Diet food 10% 20% 30% 5% 35% Garden Lehar Em-dees

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c) Most sold size- The results indicate that the best selling size is 200 grams because of its convenience. 400 grams is the second in line.

Most Sold Size

200gm 5% 25% 70% 400gm 48 gm

d) Sales team visit- As is the case with other regions, here too the results indicate that most stores get weekly visits. This is followed by monthly visits.

Sales Team Visit

Weekly Monthly 5% 10% 15% 60% Two times a week Quarterly Bimonthly

10%

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e) Most sold variant- The results indicate that diet products like- diet chidwa, diet murmura are sold the most. It could be attributed to the rise in the number of health conscious people. The second most sold variant is Boondi, this particular variant has seasonal demand and is most wanted in Summers.

Most Sold Variant

Diet products Boondi Moong Dal

Bhujia

Khatta meetha
5% 10% 10%

Navratna

40%

15% 20%

f) Lead time- Most retailers said that they keep enough stock in order to avoid stock-out situation. Most of them also said that they place the order with the distributor who usually comes to pay a weekly visit. This is followed by a 2-3 day lead time.

Lead Time
1 day 2-3 days 1 week

20%

5%

75%

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g) Best promotional schemes- Lehars offer of 2 packs @ 59 instead of 74 and 1 kg pack @ 129 is found attractive hence it is considered to be the brand that runs the best promotional schemes. Next best is Godavari which has offered a sachet of Cremica ketchup inside the pack to go with its potato shell snacks.

Best Promotional Schemes

Lehar Godavari Kaleva Bikano

10% 5% 20% 65%

g) Best margin- Bikaji is offering a margin of 30%. Local players like healthy foods offer higher margins. Margins as high as 50% can be availed on local namkeens.

Best Margin
Bikaji Lehar Healthy foods Haldiram's Diet foods

10% 15%

30%

20% 25%

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IV. Sample area- Central Delhi Sample size- 20 Type of data- Primary Type of research- Quantitative and qualitative a) Stock- 85% of the stores keep both branded as well as non-branded snacks. 15% of the stores keep only branded snacks.

Stock
Branded Branded and non-branded

15%

85%

b) Most sold brand- Haldirams dominates the market here as well. However retailers say that Bikano is good competition to Haldirams as is reflected in the results too.

Most Sold Brand

Haldiram's Bikano Shyam's

Lehar
5% 5%

Em-dee's
5% 5%

Kaleva

25%

55%

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c) Most sold size- Most sold size is observed to be 48 gram pack which is priced at Rs 10. Because of the presence of small shops in market areas like CP, this size seems to be doing well. Next best is 200 gm.

Most Sold Size

48 gm 22 gm 200 gm 1 kg

10% 20% 55% 15%

d) Sales team visit- The results indicate that mostly the distributors from the company pay weekly visits. This is followed by monthly visits.

Sales Team Visit

Weekly Monthly Twice in a week

15% 20% 65%

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e) Most sold variant- The results indicate that the most sold variant is Bhujia and this is followed by peanuts.

Most Sold Variant

Bhujia Peanut 5% 5% 15% 55% 20% Moong Dal Boondi Khatta meetha

f) Lead time- Most of the retailers said that the sales team visit is combined with replenishing the stock. Most said that they keep a weeks stock extra. The results indicate that 75% of the retailers say that it takes only a day to replenish the stock. While the remaining 25% say that it takes about 2-3 days to replenish the stock.

Lead Time
1 day 2-3 days

25%

75%

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g) Best Promotional Schemes- The best promotional schemes are offered by Lehar. This is followed by Em-dees offer of buy one get one free.

Best Promotional Offers

Lehar Em-dees Kaleva

15% 20% 65%

h) Best margin- The best margin is offered by a local brand called Shyams which sells in a 150 gm pack for Rs 25. The next best is offered by Bikano.

Best Margin
Bikano Shyam's Lehar Haldiram's

15% 15%

30%

40%

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V. Sample area- North Delhi Sample size- 20 Type of data- Primary Type of research- Qualitative and quantitative a) Stock- The results indicate that 75 % of the stores keep both branded and non-branded snacks while 25 % stores keep only branded snacks.

Stock
Branded Branded and non-branded

25%

75%

b) Most sold brand- Results show that the best selling brand is Haldiramss. Garden and Bikano also share piece of the pie. Wimpys and Sagar are local brands.

Most Sold Brand

Wimpy's Sagar Haldiram's Bikano 5% 10% 15% 15% 5% Garden Kaleva

50%

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c) Most sold size- Most retailers said that size depended upon consumption. If a family wants to eat then a 400gm/ 1kg size is seen to be appropriate. 400 gm pack is considered value for money by a lot of buyers. The results show that 400 gm is the preferred size followed by 200 gm.

Most Sold Size

400 gm 200 gm 22gm 1 kg 48 gm

15% 15%

10%

35%

25%

d) Sales team visit- The results show that mostly the visits are made on a weekly basis followed by a monthly visits.

Sales Team Visit

Weekly Monthly Twice in a week Yearly

10% 15%

5%

70%

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e) Best sold variant- Most sold variant is bhujia followed by khatta meetha.

Most Sold Variant

Bhujia Boondi Navrtana Khatta meetha

15% 10% 10% 65%

f) Lead time- Most retailers said that it takes only about a day to replenish the stock. 25% said that it takes about 2 days to replenish the stock.

Lead Time
1 day 2 days

25%

75%

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g) Best promotional schemes- Bikanos schemes of 4 packs of 250 gm @ Rs129 seems to be the most attractive followed by Lehar.

Best Promotional Schemes

Bikano Lehar Reliance select Em-dees

15% 15% 45%

25%

h) Best margin- The highest margin is offered by Shyams which is a local brand , but Bikano is the brand that most retailers stock, as such most retailers said that Bikano offers the best margin.

Best Margin
Shyam's Sagar Bikano 5% 30% Garden

5%

60%

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Compiled results
Sample area- Delhi Sample size- 100 MOST SOLD BRAND
60 50 40 30 20 10 0

MOST SOLD VARIANT

60
50 40 30 20 10 0

Bhujia

Boondi Navratna Khatta Peanut meetha

Moong Diet Punjabi dal products Tadka

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MOST SOLD SIZE

50 45 40 35 30 25 20 15 10 5 0 200 gm 48 gm 22 gm 150 gm 250 gm 1 kg 400 gm

BEST PROMOTIONAL SCHEMES

60

50

40

30

20

10

0 Bikano Lehar Reliance 'select' Em-dee's Kaleva Godavari

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Customer preference (Phase 2)

Sample size- 120 Type of data- Primary Type of research- Qualitative Results from Factor Analysis are as followsKMO is a measure of sampling adequacy. A KMO value which is greater than .5 indicates that the sampling is adequate and that the factor analysis can be run. Kaiser- meyer- olkin measure of sampling adequacy Bartletts test of sphericity Approx chi sq df sig Initial Eigen Values Eigen values show the internal consistency between various variables. Component 1 2 3 4 5 6 Total 2.944 1.921 1.802 1.331 1.223 1.030 % of variance 17.316 11.300 10.597 7.829 7.195 6.058 Cumulative % 17.316 28.616 39.213 47.042 54.237 60.295 343.058 136 .000 .614

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Rotated Component matrix Rotated component matrix shows how the different variables get loaded under various factors. In our case 6 factors have emerged.

Variables Price Comparative price Different Sizes Small size Schemes Buy more on discount Expiry date Availability Placement Spice Different flavours Convenient packing Attractive packing Target audience Shopkeepers suggestion Persuasion by shopkeeper Ingredients

Factor 1

Factor 2

Factor 3

Factor 4

Factor 5

Factor 6 .723

.613

.797

.818 .810 .668

.520 .706 .731 .581 .481

.509

.579

.712

.560

.426

.811

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Factor naming
Factor 1 has been named as convenience. This is so because easy availability in all stores, makes it convenient for buyers to be loyal to a particular brand. Next variable in this factor is placement. If the snacks are placed at easy-to-locate locations in the stores, it makes it convenient for buyers, at the same time it induces impulsive purchase. Spice and different flavours fall under this factor too. The more the choices to choose from, the better it is to make a purchase decision. Also, most Indians except Rajasthanis like their snacks to be moderately spicy. The last variable is convenient packaging, which undoubtedly adds to the ease of eating. Factor 2 has been named as Competitiveness. Comparative price falls under this factor. Price plays a vital role in shaping a purchase decision. Competitive pricing provides the product an edge. Next variable included in this factor is attractive packaging. Sometimes buyers buy a particular product solely on the basis of how well it has been packed. Without knowing about the taste of the product, people are willing to try it because its packaging appeals to them more than the packaging offered by competitors. The last variable loaded in this factor is target audience. An integral part of competition is the market segment that a particular brand offers to serve. As such, target audience falls under this factor. Factor 3 has been named as Size. Small size and different sizes are two variables which explain why this factor has been named so. Persuasion by shopkeeper falls under this category too. Sometimes a brand can be sold better with the help of a shopkeepers persuasive power. This way he/she can help to push a particular size of snacks too. Factor 4 has been named as Promotional offers. The variables under this factor are buy more on discount and schemes whic h explain why the factor has been named so. Factor 5 has been named as Health. Ingredients and expiry date link directly to health concerns. Another variable in the factor is shopkeeper suggestion. Sometimes shopkeepers push a particular brand citing it s zero cholesterol attribute or health aspect. Factor 6 has been named as Price. Price is the only variable under this factor.
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CONCLUSION & RECOMMENDATION

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CONCLUSION

Following analysis is for phase 1. The study was conducted to find out various details about the snacks market in the Delhi region. The results obtained were as per expectations. It was no surprise to know that Haldirams dominates the market or that 200 gm pack sells most or that Bhujia is the most favoured snack variant. This study was important in terms of which variants and sizes are followed by the most preferred ones. Therein lies the potential for the company to make changes. The results from phase 1 indicate the following Most sold brand- Haldirams, Bikano Most sold variant- Bhujia, Peanuts Most sold size- 200gm, 48gm Best promotional schemes- Lehar, Em-dees Lead time- 1 day Sales visit- weekly Best margin- Non branded players offer great margins. Amongst the branded ones Bikano offers the best margin to retailers.

While interacting with various retailers and customers, I was able to get more information than what I had expected to receive. Many factors surfaced which could not have been brought to the fore if it was not for the knowledge that the retailers shared with me. Following insights were generated through my interaction with retailers and customers in phase 11. In East Delhi, I went to a retail shop called Om Sai store where almost all brands of snacks were available. The most selling brand was undoubtedly Haldirams. This was followed by Garden and Kakaji. The retailer suggested that for a company to foray in the Indian snacks market that is replete with a plethora of players, it is important that the company brings in some kind of innovativeness. Merely launching the same variants like Bhujia, Navratna and Punjabi tadka will not be enough. I was told that customers usually go for those brands that offer a range of varieties. Hence, Amira will have expand its brand offerings in order to carve out a place for itself. As regards the innovation which is necessary for a relatively unknown company in this sector, Amira will probably have to follow the strategy of Garden. Garden is a brand from Mumbai which has brought new flavours in the market. Diet Bhel and yellow banana chips are some of the new flavours that Garden has introduced in the market and their success can be attributed to their innovation.

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2. While conducting the survey in the North Delhi, I visited a shop called Raj Bhujia Bhandar. The shop had most of the brands and a wide range of local brands too. The retailer said that the shelf life of most branded products is said to be 6 months. However, this is misleading. Despite the quality control measures, most snacks get stale after 2-3 months and start smelling. Even the market leader- Haldirams products have been victim of this anomaly. Thus extra care should be taken to ensure that the shelf life of the snacks is maintained. 3. Most retailers and customers said that there is no one preferred size of pack. It is largely a decision based on consumption. A lot of people consider 400 gm pack to be cost effective. But they will not buy it for individual consumption. The schemes that run on 1 kg packs make them an appropriate buy for a family. Therefore the size will by and large depend upon the number of people consuming the snacks. 4. In West Delhi, some retailers brought to the fore a common suggestion for the company. Amira being a new player in the market will have launch Rs 5/ Rs 10 packs in order to induce people to try a new brand. There is a less likely chance of people buying it if the pack continues to be available only the current 150 gm size. 5. Most retailers in South Delhi said that there is a growing preference for healthy food. Whether or not those products actually have any impact on ones health remains to be seen, but surely customers get attracted to buy a product that promises to be a diet product. The Garden Fresh and Honey Money Top are two modern trade stores located in New Friends Colony, South Delhi. Both the retailers threw light on how diet products were selling most. There is a brand by the name of Diet foods which sells well due to its value positioning. Haldirams has two products, Diet chidwa and Diet murmura which sell well because of their value positioning. 6. While conducting the survey in Darya Ganj (Central Delhi), some retailers said that Bikano is the second favourite after Haldirams. As such when Haldirams is unavailable, people usually prefer Bikano. The same has been reflected in the results all over Delhi. They also pointed out that customers for some reason prefer to buy Haldirams in lar ge sizes while Bikano is preferred when smaller sizes have to be purchased. They also said that for the last couple of weeks the sales team from Haldirams wasnt visiting the stores as there is some rumour about Haldirams increasing their rates.

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7. While conducting the survey in South Delhi, some retailers suggested that Boondi is a seasonal snack which is highly preferred in the summer seasons. People usually have Raita10 in summers, for which Boondi is a must. Following analysis is for phase 2 A questionnaire was made and 120 responses were used for analysis and interpretation. 17 variables got classified under 6 factors. Following are the resultsFactor Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6 Variables Availability, Placement, Spice, Different flavours, Convenient packaging. Comparative price, Attractive packaging, Target audience Different sizes, small sizes, persuasion by shopkeeper Schemes, Buy more on discount Expiry date, Shopkeepers suggestions, Ingredients Price

Factor 1 has the highest Eigen value of 2.944 while Factor 2 has the next highest Eigen value of 1.921. Eigen values indicate the internal consistency between variables. The following conclusion can be drawn from the results of phase 21. Availability of snacks in all stores is preferred by customers. As such Amira foods will have to ensure that they have a strong distribution network. 2. Customers do not like namkeens to be very spicy, spice element in moderation works just fine for most people. 3. Customers generally prefer a brand that offers a good number of variants. 4. Convenient packing with say, a zip lock facility is something that customers prefer.

10

Raita is an Indian condiment made with yoghurt and used as a sauce or dip.

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RECOMMENDATION

1. Amira Foods. should expand their product offerings. The next best snack after Bhujia is observed to be Peanuts. 2. Along with expanding into already available snacks in the market, Amira Foods should bring out something innovative. Just as Garden did, it brought to Delhi the taste of Mumbai. If the company is able to offer to the market something that has not previously existed, it will be successful in creating a niche for itself. 3. Owing to the fact that most people have Raita in summers, Boondi can be considered as another snack that the company should add to its portfolio. Most people like to have their Raita with Boondi. 4. Amira Foods should launch their snacks in smaller sizes that are priced at Rs 5 or Rs 10 to induce first time purchase. 5. Owing to the rise in the number of health conscious people, Amira Foods should launch snacks that are diet based. Haldirams Diet bhel and Diet murmura can be taken as examples. 6. Customers prefer to buy snacks that are easily available in all stores. Amira Foods. already has a strong distributor network with 122+ distributors. They should use their strong presence in the Rice sector to ensure that their snacks are easily available in most stores. 7. Convenient packaging is yet another variable that has been identified in the results of Factor analysis. Zip lock packages can be considered after working out the logistics.

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OUTCOME/CONTRIBUTION

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OUTCOME

The project was given to me with the intention of finding out what Amira Foods should do to make their brand portfolio of snacks attractive. The main purpose was to find out which variants should they launch next. After having interviewed about 100 retailers from all parts of Delhi, I was able to suggest to the company what they should add to their current portfolio of 4 variants. As regards packaging, the results from Factor analysis indicate that zip-lock packaging is highly preferred by customers. My organization wanted me to find out the best form of packaging, which I was able to accomplish. Apart from the above mentioned points, what I was able to bring to the organization is an array of insights from various retailers. Their suggestions might help Amira Foods to take an informed decision regarding their brand portfolio. By way of interacting with the retailers, I somewhere made them aware that Amira Foods is soon going to launch their own range of snacks. Some retailers in fact started cracking deals to stock the snacks. As such, the init ial buzz that was created at the exhibition about Amira Foods new product line, was recreated by informing the retailers about the latest developments.

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LEARNING FROM SIP

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LEARNING FROM SIP

I take this 12 week long internship as a great learning experience. I got a good exposure to the actual work environment. Every single person in the organization taught me something or the other. In the initial days of the SIP I interacted with various members of the Marketing dept. There was something to learn from each one of them. Their experience in this industry and with the company reflected in every discussion that I had with them. There was knowledge to be gained from everywhere; it all depended on how much I wanted to learn. After having decided the area of my project, I was almost clueless about how to go about it and achieve the desired results. The Vice-President of the organization, Mr. Rajesh Verma took special interest in my project and guided me through. My company guide, Mr. Yogesh Arora helped me understand the intricacies of the trade by answering all my doubts without ever losing his patience. On realizing that my analysis will have to be done based on the data that I generate by visiting retail outlets, I thought the task will be an onerous one. I wasnt quite sure whether I would be taken seriously. As I started with the market visits, the realization dawned upon me that asking questions is an art. With each passing day, I emerged as a more confident person who could get all the information from unknown people. Every part of the analysis is completely driven by customer/retailer responses. As such, I understand that the purpose of undertaking the project has been successfully achieved. An allrounded perspective was needed, which is why both retailers and consumers were included in the study. Having done just that, I feel confident that the conclusions and recommendations drawn from the analysis will help the organization.

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REFERENCES

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REFRENCES

Books Principles of Marketing- 13th edition. Authored by Philip Kotler, Gary Armstrong, Prafulla Y. Agnihotri and Ehsaan ul Haque. Marketing Research- India edition. Authored by Churchill, Lacobucci, Israel

Websites www.bikano.com www.haliram.com www.kalevaindia.com www.gardensnacks.com www.emdees.net www.pepsicoindia.co.in www.bikaji.in

www.amirafoods.com

Research papers by Euromonitor McKinsey global institute

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APPENDIX

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Questionnaire for phase 1

Following questionnaire was filled by retailers and customers.

1. Do you keep non-branded snacks? YES NO 2. Which brand is sold the most? Haldirams Garden Em-dees

Bikano

Kaleva

Lehar

Others..

3. Which is the most sold variant? Bhujia Navratna Moong dal Boondi

Khatta meetha

Peanuts

Others

4. Which is the most sold size? 200 gm 48 gm 400 gm 5. How often does the sales team visit? Weekly Biweekly Any other.. 6. What is the average lead time? 1 day 2-3 days Any other..

1 kg

22 gm

Monthly

Yearly

1 week

7. Which brand runs the best promotional schemes? Bikano Haldirams Kaleva

Lehar

Em-dees

Others.

8. Which brand gives the best margin to the retailers? Haldirams Lehar Bikano

Kaleva
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Questionnaire used in phase 2

Question The first thing I look at when I buy a pack of namkeens is its price. I will try a new brand of snacks even if it is priced higher than the normal price. I usually buy snacks that are offered in various sizes, like 50gm / 200gm. I am more likely to buy snacks that are available in smaller sizes. I buy snacks that run promotional schemes like discounts. I buy more number of packets than required, if they are available at a discount. I look for the expiry date on the packet before buying it. I prefer to buy snacks that are easily available in all stores. I think snacks are displayed in the stores in such a way that they can be easily located. I like snacks that taste very spicy. I prefer to buy snacks that are available in different flavours. I think snacks should be available in convenient packets like zip pouches. I buy snacks that are available in attractive packages. Everyone in my family eats snacks. I have bought snacks based on the suggestions made by the shopkeeper. A new brand of snacks can be sold better if the shopkeeper plays an active role in persuading the customer to buy it. I check the ingredients of the snacks before making a purchase. I will buy a pack of snacks on recommendation by my friends/relatives. I purchase snacks frequently. I recommend snacks to my friends/relatives.

Strongly agree

Agree

Somewhat agree

Neutral

Somewhat disagree

Disagree

Strongly disagree

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