1. OVERVIEW OF CASE FRAMEWORK
Market Analysis-
Porter 5 forces model
Generation and
Evaluation of
Alternatives- Marketing
Mix
Decision
Company analysis-
SWOT analysis
2. COMPANY PROFILE
Company :- Aakash Namkeen Private Limited
Year of Establishment :- Aakash namkeen since 1992
Legal status of the firm:-Individual
Turn over :-Upto 5 Crore
Nature of Business:- Wholesale And Retail
Major Market:-Madhya Pradesh, losses in Delhi, Mumbai, Jaipur
Product Range:-Snacks offered include:-Khatta Meetha Mixture,
NamkeenMixture,cornflex,charka mixture,All in one,lajawab,Gujrati
Mixture,Ratlami Mixture,Long Sev,Aloo bhujiya, Ujjaini Sev.( 90%)
Sweets(15%):- son papdi (5%) gajak:- date and sugar
Gift packs
Infrastructure
Semi automated production unit
Warehousing unit
Processing unit
Staff van and tempos for physical distribution
Competitors:- organised sector:-Haldiram,Pepsi
Lehar, unorganised sector
4. Competitive Rivalry
High Competition – Branded Players involved in cut-throat
competition to increase market share, entice new consumers,
find new market.
Quality difference between branded and unbranded
offerings is offset by low price offered by unbranded players
Brand Loyalty is high for branded players
Industry Attractiveness (Porter’s 5 forces)
Bargaining power of supplier
Suppliers provide raw materials such as gram flour,dry
fruits, spices and other ingredients. Their ability to raise input
costs is high
Higher cost of input commodities leads to lower margins,
making the market unattractive for distributors and retailers
Shortage of any input material may also affect production
and thereby impact distribution.
Veteran players like Haldiram and Pepsi already have a
well-established network of suppliers
Threat of competitive rivalry and bargaining power of supplier
is high.
5. Industry Attractiveness (Porter’s 5 forces)
Threat of new entry:
Namkeen market- 2000crore As the market is growing at 30
percent annually, new entrants may consider it a profitable venture
As branded players are priced similarly, new players might
penetrate by adopting a lower price or by offering more grams at the
same price
New players with a distinct USP and marketing strategy may
find it easier to enter the market (Om Nmakeen)
Unorganized players still account for half of the total segment,
thereby discouraging market entry
Veteran players such as Haldiram etc enjoy economies of scale,
well-established distribution and good distributor relations.
Threat of new entry is moderate to high
6. Bargaining power of consumers
Haldiram enjoys a healthy lead with a 45 percent market share for
it’s portfolio of products, Lehar- 40%
Ability to substitute is high as brands are priced similarly and
distribution problems for one brand promote sales for the other.
Price Sensitive, taste conscious consumers are high. An increase
in the price of aakash may promote a switch to Haldiram or lehar for
most buyers (except for loyalists)
Quality and taste conscious consumers who buy brands
High demand during festival season and low during monsoon
Industry Attractiveness (Porter’s 5 forces)
Hence, bargaining power of consumers and threat of
substitutes is high.
Threat of substitutes.
Indian Snack Segment is high-volume, low-involvement driven
(thrives on impulse buy)
All snacks are considered to be substitutes of each other
Biscuits, Wafers and local snacks like Chakli, banana chips, farsan
etc are all substitutes of one another
7. • Haldiram
Market
Leader
• Pepsi snacks and Food Mktg co:-Lehar
namkeen
Market
Challenger
• Aakash, local players such Yes Namkeen(
kothari product), Yumkeens. Also included
are unorganized offerings, aimed at the
price-sensitive, less loyal audience.
Market
Follower
• Om Namkeen which has identified itself a
niche of the more health conscious section
of the audience
Market
Nicher
MARKET STRUCTURE
8. SWOT ANALYSIS
Strengths:-
Good product mix with High nutritional value( 27 varieties outside MP and 50 in MP)
Aromatic and delicious
Different sizes(200gm, 400gm, 1kg)
Colorful packaging
Made from high quality ingredients and Good quality oil
Fresh, Less calories, Rich in fibrous content
Exclusive outlets
Weakness:-
o Lack of goodwill among middlemen
o Marginally higher priced than local players
o Lack of promotional activities
o Less profit margin
o Weak Distribution System:- lack of commitment and honesty, large volume of
replacement by middlemen
Opportunities:-
Innovation:-Baked items, Turmeric (Haldi) : Blood purifier, improves liver function, Ginger
(Adrak) : Improve digestion, lowers cholesterol, controls blood.
Silver foil packaging like haldiram ( increase shelf life)
Home delivery
Schemes for retailers, se ll in big outlets
Children or youth product
Threat:-
o Competitors
9. COMPETITIVE ADVANATGE
To become Market Leader:- redesign
o Product strategy:- in terms of benefits, line extension,
market segmentation, product positioning
o Price strategy:- raw materials(e-choupal),Payment
mode,
o Promotion strategy:- Trade Fair,AIDA model, point of
purchase strategy, brand ambassador, brand loyalty
through reminder promotions
o Place:- concentrate on rural areas, intensive distribution-
hotels,cafes,tea stalls, wine shops, kitty parties
o Packaging:- change logo, color contrast, jingle
o Distribution strategy:-increase product shelf life, Direct
marketing:- eliminating middlemen
10. Final Verdict
The market is unattractive for players who:
Aim to be a me-too product with no significant
differentiation
Do not have a well-established distribution network
Do not have good supplier and dealer
relationships(goodwill)
Pull strategy/ Competitive Advantage
Editor's Notes
Manufactured using the most advance machines, and under the most hygienic conditions, the parameters of quality for Aakash products begin with the usage of the Choicest ingredients including high quality edible oil, obtained from the mostreliable sources. Starting from the picking, the sorting, cleaning and grindingprocesses of various pulses and spices are carried out in-house so as to followthe strictest measures of quality control.Aaksh Namkeens anre packed using nitrogen in the attractive metalised threelayers pruches to maintain the best of freshness and taste and a longer shelf life
(in an already low-margin, high-volume market)
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