Question One
The current scenario is characterized by increased competition, where innovation has become a competitive tool among Haldiram’s competitors. While Haldiram has concentrated on serving the traditional Indian market, competitors have realized the existence of a new an untapped market, composed of younger people. The generational change has led to the shrinking of the traditional market while the younger generation has embraced new and exciting products. The effects of the poor public image created by the arrest of the Kolkata unit may be lingering in the minds of customers even today. This image may give competitors a chance to snatch customers and market share from Haldiram since customers do not like associating with companies with a scandalous history (Arnell, Kettmann and Martha 78) The court ruling that authorized the splitting of the three units has reduced the competitiveness of the Haldiram’s because each of the units is aggressive towards each other. Such wrangles have diverted their attention from the value creating activities that initially made the brand name shine. Competitor traders have diluted the Haldiram’s brand image by offering sub-standard products using Haldiram’s brand name. Such a move is likely to discredit the company’s reputation and lead to customers shying away from its products.
Question Two
The road ahead of Haldiram is tough, given the current competition and factors affecting the performance of the business. Moreover, new competitors are rising, using innovative models of competition. Haldiram is no longer the leading competitor in its industry and has been bypassed by competitors. This means that the road ahead will require the company to concentrate its effort on searching for means to regain its competitiveness. The focus of the firm has been the traditional Indian market. However, this market does not seem to have promising prospects since there is a new generation of people who want to try novel products. The company will, therefore, be forced to diversify its market segments to include emerging ones since that is where chances of market growth are (McDonald and Ian 32). The economies of scale that the company used to have before the split has been lost. This means that the cost of production may go up, forcing the company to change its pricing strategies, which may affect its customers adversely. Every aspect in the market seems to spell tough times for Haldiram, unless the company innovate new ways to conduct its business. For a company to remain competitive over time, it must constantly improve its service and product quality. Failure to search for new ways of improving performance is likely to lead to loss of competitive advantage.
Question Three
Haldiram adopted marketing strategies were diversified to reach all market segments, especially in terms of geographical locations. When the company adopted the marketing strategies, brochures, posters, showrooms and packaging could be very effective. The designs of brochures and posters appealed to the eyes of the readers. Since the company operates in the food and snack’s market, maximizing on the number of senses appealed to by the promotion was crucial. One critical sense that influence consumers in their decision making is sight. When a product is attractive to the eyes, the customer gets curious and decides to evaluate the product using other senses such as touch. Therefore, the posters, brochures and mailers were efficient ways of promoting the company’s products. The use of mails to the current customers is a strategy that could increase customer loyalty. When personalized care is given to the customers, they feel valued and respected (Kotler and Gary 56). Organizations that value and respect their customers have a prolonged relationship, which translate to repeat business. Therefore, the personalized promotion used by Haldiram was a well thought of strategy. A company can differentiate its products by providing extra services to the customers at no extra cost. Haldiram seems to have realized the benefit of this promotional strategy and initiated the children play areas in its Delhi unit. Such a strategy was attractive to customers with children who would have otherwise chosen not to eat out because of the problem of controlling the children. Providing them with a chance to have a wonderful meal experience while knowing their children are safe was an essential tool. It broadened the market segments attracted by the promotion strategies.
Currently, there are popular means through which the company must promote its products. Television advertisement, social media such as Facebook and YouTube can help the company to reach out to more customers (Boone 23) Since the organization aims to target the young people, social media are essential to achieve this objective.
Question Four
Namkeens represent Haldiram’s main product through which the highest revenue is earned. This product has commendable reception in the market, but competition has increased. Failure to improve the product may render it obsolete, given that competitors are continually improving their products so that they can gain more market share than Haldiram. One crucial step that the company can take is to increase the features of the product or diversify it through altering ingredients. However, such a move must be supported by facts from the market. These facts can only be obtained through market research so that the company can identify any changes in the needs and preferences of the customers. Market research can help the organization to identify a new market segment that can be served by a modification of the existing product (Han 32). Such a move can provide the firm with a basis upon which to base decisions relating to products and the market. Another option would be creating a new product with features that can compete with the competitors’ products. This does not mean that the company should relax on the performance of its core product.
Question Five
Since the Indian market is the primary marketing within which the company operates, satisfying the different segments is essential. Different customers have varied needs which might be influenced by culture and other factors George and James 12). Haldiram realized the importance of customizing products to meet the individualized needs of various customers. To meet these needs, the organization made products that focused on the taste preferences of people residing on different sides of India. For instance, a product known as Murukkus was manufactured for customers living on the southern side of India. Another product that was exclusively produced for the people residing on the western side of India is Bhelpuri. These products were made to suit the needs of people living in these two regions. Since the market was full of snack items, the market had to target customers by appealing to their preferred tastes. This strategy makes customers feel special and are likely to become loyal the brand making the products. In addition to the geographical segmentation, the company also made snacks depending on the festive seasons by offering special products such as Nazarana, Premium and Panchratan.
Works Cited
Boone, Louis. Contemporary marketing, 2013 update. London: Cengage learning, 2012. Print.
Han, Jung H. Innovations in food packaging. San Diego, Calif.: Elsevier Academic, 2005. Print.
