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THE MOST COMMON NAMKEEN CHIPS

REPORT ON COMPARATIVE STUDY OF FRITOLAYS AND HALDIRAMS AT

(RIMT IMCT)
RESEARCH METHODOLOGY REPORT
Submitted To

RIMT IMCT, Mandi Gobindgarh

(Affiliated to P.T.U. Jalandhar)
In partial fulfillment of requirements for the degree of MBA (2005-07)

Submitted By:
XYZ

TO WHOM SO EVER IT MAY CONCERN

This is to certify that research on CHIPS carried out by Mr. Vinay Bhalla is an original research work has not been published or conducted before. It is based on primary data and due care has been taken to ensure that all the sources of secondary data and references either from published or unpublished literature or from interest have been dully acknowledged.

SUBMITTED TO: Mr. Sanjeev Kumar Faculty of RM

SUBMITTED BY: Mr. Vinay Bhalla MBA 2nd SEM 584221735

ACKNOWLEDGEMENT

I am sincerely thankful to all the students of RIMT who co operated with me in carrying out this research. I am also heartily thankful to all my friends at RIMT for their encouragement and valuable suggestions throughout my research period. However, I accept the sole responsibility of any possible errors or omission.

Vinay Bhalla

PREFACE

MBA is a stepping stone to management carrier. It helps to realize the situations existing outside the classroom. To develop effective potential managers, it is necessary that the theoretical knowledge must be supplemented with exposure to the practical training so that the measuring of management it self is realized. The basic aim of my research was to know the satisfaction level of CHIPS consumers, to know general preference of people regarding taste, packaging and price. This research work gave me opportunity to reach out and communicate with different categories of students.

SUMMARY OF THE REPORT

1. In the initial part of the research I learnt about the two most prominent selling chips brand. 2. Understanding the different flavours offered by FRITOLAYS and HALDIRAMS. This includes the studying in dept the satisfaction given to customers by both of the brands. 3. This survey has been carried on the customers between the age group of 20 25. 4. Necessary information regarding both of the brands has been carried out with the help of their sites. 5. Studying the products offered by both of the brands, the research has been carried on FRITOYLAYS and HALDIRAMS chips, drawing out the various benefits provided by them to different customers. 6. This research has been carried out successfully with the set pattern of a questionnaire.

INDEX
TOPICS
1. INTRODUCTION TO RESEARCH

PAGE NO.
7 - 13 8 9 10 14 - 21 15 20 24 36 37 38

Objectives Limitations Research Methodology

2. INTRODUCTION TO THE PRODUCTS

Fritolays Haldirams

3. DATA ANALYSIS 4. COMPARATIVE STUDY 5. CONCLUSIONS 6. REFERENCES AND FINDINGS

INTRODUCTION TO RESEARCH
OBJECTIVES LIMITATION RESEARCH METHODOLOGY

OBJECTIVES

1. To know the general preferences of people To make a comparative study of both the brands. To study the popularity of various flavours among customers. To study the factors that act as physical evidence to the customers. 2. To study the satisfaction level of existing customers. To study the awareness about the flavours to customers. To study the drawbacks of brands 3. To determine the potential customers at RIMT IMCT. 4. To compare the products of market segmentation of different products.

LIMITATIONS

1. The biggest limitation in carrying out this survey is Shortage of Time. 2. As the size of the sample is small, so findings can not be generalized. 3. Probability of some biased opinions is also there. 4. While conducting the survey it was difficult to get information from people.
5. Another limitation was carrying out this survey was difficult

because of unavailability of some data.

RESEARCH METHODOLOGY

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RM is a systematic way to sought out a problem. The methodology adopted in the study is explained below. RESEARCH DESIGN It is a procedure for conducting and controlling the research projects. PROBLEM DEFINATION It is a competitive survey in the market. It is necessary to know about the preferences of the people. It is to know consumer perception regarding different brands in chips. TYPES OF RESEARCH The research is descriptive in nature and the researcher has no control over variables. RESEARCH PLAN Research planning is a process of developing the most efficient plan for gathering the necessary information DATA COLLECTION Data has been selected from primary as well as secondary sources for this questionnaire was structured. PRIMARY SOURCES The primary source of the research was the questionnaire. This data is the real backbone of my survey.

QUESTIONNAIRE

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1. Name 2. Age

: . : . : . Yes : Haldirams Chips : No

3. Occupation

4. Do you like chips?

5. Which of these would you prefer? Fritolays Chips

6. Which flavor of chips do you prefer the most? Classic salted Lays Chat Street Haldirams pudina treat 7. What makes you prefer it? Taste Price Flavor Packing :

Spanish tomato tango Haldirams taka tak other (specify)

Any other (specify) :

8. How frequently do you go chips consumption? Daily often

Sometimes Rarely 9. Rate the following: 5 Very Good 4 Good 3 Satisfactory 2 Poor 1 Very Poor Price: .. Taste: ..

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Flavor: . Quality: . Quantity: . Packaging: . Availability: . :

10. Are your favorite chips easily available to you? Yes No

11. What alternative do you go for when you dont find your favorite Chips? : .. 12. What rating would you give regarding the effect on consumer of the extra benefits like Free Pokemon with each pack? : 1 2 3 4 5

13. Your favorite chips would be the most demanding in the future? Strongly Agree Agree Neither Agree nor disagree Disagree Strongly disagree

14. Does your demand for the chips get affected by the presence of any celebrity in the advertisements? : Yes No 15. What suggestions would you like to give so that the company could increase its sales?

Thank you for your co operation for carrying out this research

SECONDARY SOURCES

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The secondary sources my research were the web sites of FRITOLAYS and HALDIRAMS. SAMPLE SIZE The sample size for the survey was 30 SAMPLING TECHNIQUE The research will be based on Judgment sample and Deliberate sample. And THE RESEARCH PROCESS Define the research problems and its objectives Review concepts and theories Research design including Sample design Collection of survey Analysis of data Interpretation and report Writing

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INTRODUCTION TO THE PRODUCTS

FRITOLAYS History Contacts HALDIRAMS History Contacts

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COMPANY HISTORY In 1932, two young entrepreneurs independently started two separate companies that were thousands of miles apart. Both men had the same objective in mind, and both shared the same basic business philosophy: "Provide the customer with a product of the highest quality and value; sell it for a fair profit; and make service a fundamental part of doing business." Elmer Doolin of San Antonio, Texas started his company by purchasing the rights to a then unknown corn chip product that he would make famous. Herman W. Lay of Nashville, Tennessee developed his business by selling a product that was familiar to people in his region, but later would become America's favorite potato chip. These two savvy businessmen, who transformed a small, fragmented portion of the food business into the large, flourishing world of snack foods, created an industry based on unrivaled customer service and superior products. The Frito Company In 1932, Elmer Doolin entered a small San Antonio cafe and purchased a bag of corn chips to eat with his sandwich. Little did he dream this savory chip would become one of the nation's most popular snack foods. Mr. Doolin, who was the operator of the Highland Park Confectionery, was looking for another investment to add to his ice cream and snack business, which was caught in a price war and showing little promise. He learned that the manufacturer of the corn chips was eager to sell his small business and return home to Mexico. For $100, Mr. Doolin purchased the recipe, 19 retail accounts, and the manufacturing equipment, which was a converted hand-operated potato ricer. Mr. Doolin established his new business venture in his mother's kitchen. Since there was no money for hiring

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employees, Mr. Doolin, his mother, Daisy Dean Doolin, and his brother, Earl Doolin, made the Fritos at night by hand-rolling the stiff masa dough and thinning it with water, cooking the corn chips (Mrs. Doolin was the first Frito cook), then packing the Fritos in 5 bags, which was the only size marketed at that time; the family's production capacity was about 10 pounds per hour. Mr. Doolin's days were spent distributing Fritos to his accounts from his Model T Ford, seeking new accounts, looking for reliable sources for quality corn, and washing and grinding the corn by hand. Total sales ran from $8 to $10 a day; profits averaged about $2 per day. Within months, the company experienced phenomenal growth. The "factory" was moved from Mrs. Doolin's kitchen to the garage, then to a duplex next door. In 1933, the brothers increased Fritos production from 10 pounds to nearly 100 pounds an hour after designing a "hammer" press, in which the cutter was hit with a hammer to cut off the Fritos at the appropriate length. The accelerated growth in production resulted in lines operating in Houston and Dallas by year-end, and the moving of The Frito Company headquarters from San Antonio to Dallas due to the city's central location and better availability of raw materials. In 1937, a The Frito Company opened its Research and Development lab the first of its kind in the industry as a result of Mr. Doolin's search for reliable sources of higher grade corn. Other products were added; Fritatos Potato Chips (later simplified to Ta-Tos) were introduced in 1935, followed by Fritos Peanut Butter Sandwiches and Fritos Peanuts in 1937. Mr. Doolin's and his brother's ideas and mechanical engineering talents were shared once more as they designed and constructed automatic presses and better cooking vats as the company, which now employed hundreds of people by the late 1930's, rapidly expanded. In 1941, the company opened its Western Division in Los Angeles with two sales routes; these routes, which grew to 20 by year-end, became the prototype for The Frito Company's "store-to-door" distribution system. During World War II, The Frito Company, as did other companies, experienced shortages, rationing, and loss of man-power. Throughout the war, however, tastes of home were remembered as Fritos were eaten by hungry G.I.'s., and every Frito employee called to service was guaranteed a job after the war by Mr. Doolin. In 1945, as American returned to peace-time, the country experienced a booming population, a new-found prosperity, and a large consumer demand for products. To meet this demand, The Frito Sales Company was established, which separated sales from production activities. The Frito Sales Company was formed to convert product distribution to company-owned routes, and its Sales Engineering Division was charged

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with analyzing the sales potential of different trade areas and designing the routes accordingly. This outstanding distribution system, which is still in use today, allowed each truck to service a route and deliver Fritos directly to customers. Expansion by the Frito National Company continued with the issue of six franchises in 1945. The first of the FRITOS franchises was offered to The H.W. Lay Company of Atlanta, GA., and would be the start of a partnership that would change the shape of American consumer goods marketing. When Hawaii was issued a FRITOS franchise in 1947 along with six additional U.S. franchises, national expansion and international distribution - Mr. Doolin's bold vision of global marketing for his company was realized. Three years later, in 1950, FRITOS were sold in all 48 states, and, by 1962, they were sold in 48 countries. Under his imagination and leadership, Mr. Doolin changed a small, kitchen-operated business into a multi-million dollar company. At the time of his death in 1959, The Frito Company produced over forty products, had plants in eighteen cities, employed over 3,000 people, and had sales in 1958 in excess of $50 million. Today, FRITOS Corn Chips rank among the top 10 salty snacks in the United States. The Lay Company In 1932, Herman W. Lay began his potato chip business in Nashville by delivering snack foods from his Model A Ford touring car. Like Mr. Doolin, he also had tried his luck in the ice cream business. Mr. Lay and a friend had planned to sell ice cream along the parade route at the 1928 Democratic National Convention in Houston, Texas. Their business venture failed when the parade was rerouted and their ice cream stand was left on a deserted street. After a variety of jobs, the then 24-year-old Mr. Lay was hired as an extra route salesman to sell and make deliveries for the Barrett Food Products Company, an Atlanta, Georgia manufacturer of Gardner's Potato Chips. Later that year, he took over Barrett's small Nashville warehouse as a distributor, using his Model A car as a delivery truck and $100 in capital. Mr. Lay received a weekly allotment of potato chips and a cash allowance; the job paid no salary, just an advance against his commission on sales. He now had a job, his own territory, and a business to independently run. As his territory expanded, his profits rose. He hired his first salesman in 1934, the same year that his H.W. Lay Distributing Company became a major distributor for the Barrett Food Products Company. Three years

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later, Mr. Lay had 25 employees and had moved into a larger manufacturing facility where he produced popcorn and peanut butter sandwich crackers. A representative of the Barrett Food Company contacted him in 1938 with an offer to sell Mr. Lay the company's plants in Atlanta and Memphis for $60,000. Unable to raise but $5,000 from investors and associates, he borrowed $30,000 from a bank and persuaded the Barrett Company to take the difference in preferred stock. Mr. Lay moved his headquarters to Atlanta, replaced the Barrett signs with "H.W. Lay Co., Inc." signs on October 2, 1939, and remained as president and chairman of the board until 1961. When he formed the H.W. Lay corporation in 1939, Mr. Lay had fourteen trucks covering the Nashville - Chattanooga area. Expansion was also a vision for Mr. Lay, who, over the next few years, purchased the Barrett manufacturing plant in Jacksonville, Florida, and additional plants in Jackson, Mississippi, Louisville, Kentucky, and Greensboro, North Carolina. He retained the Gardner trademark of Barrett Food Products until 1944, when he changed the product name to Lay's Potato Chips and introduced "Oscar the Happy Potato" as its advertising symbol. In 1945, Mr. Lay signed an exclusive franchise agreement with The Frito Company to manufacture and distribute FRITOS in most of the sales territory covered by The H.W. Lay Company. In 1949, the company established a research lab to develop new products. The purchase of two other snack food companies, the Richmond (Virginia) Potato Chip Company and the Capitol Frito Corp., increased his product line and distribution area in the 1950's. By 1956, H.W. Lay & Company, now publicly-owned, was the largest manufacturer of potato chips and snack foods in the United States; it had more than 1,000 employees, plants in eight cities, and branches or warehouses in thirteen others. Its primary product, LAY'S Potato Chips, is America's favorite potato chip. Frito-Lay, Inc. Is Formed In 1945, the Frito Company granted H.W. Lay & Company an exclusive franchise to manufacture and distribute FRITOS Corn Chips in the Southeast. As the two companies worked toward national distribution, a close business affiliation developed which eventually resulted in a merger. In September 1961, just 29 years after the founding of both companies, The Frito Company and H.W. Lay & Company merged to become Frito-Lay, Inc., the largest snack selling company in the United States.

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PRODUCTS Frito-Lay offers a wide variety of fun foods and sensible snacks to satisfy your snacking needs. From mouth-watering potato chips and corn chips, to hardy pretzels, and savory cookies, Frito-Lay has a snack for you! Baked! Products Cheetos brand Cheese Flavored Snacks Cracker Jack brand Snacks Lay's brand Potato Chips Ruffles brand Potato Chips Salsas and Dips CONTACTS U.S. Residents Call Us: 1-800-352-4477 Monday - Friday 9:00 A.M. to 4:30 P.M. Central Standard Time Write To Us:Frito-Lay P.O. Box 660634 Dallas, TX 75266-0634 Canadian Residents Call Us: 1-800-376-2257 Monday - Friday 9:00 A.M. to 4:30 P.M. Central Standard Time Write To Us:Frito Lay Canada P.O. Box 40

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COMPANY HISTORY HALDIRAM" a name associated with discerning consumers for sweets and namkeens for the past six decades in India and abroad. It made its modest start in the beginning of way back in 1941 in Bikaner in the State of Rajasthan. The brand name "HALDIRAM BHUJIAWALA" was introduced during pre-partition era-1941 and never looked back and ventured first major step in this direction by opening up a shop in 1983 in Chandni Chowk, the main hub of commercial centre in Delhi. The prime focus was to serve sweets and namkeens amongst direct consumers and the trade. Encouraged by the tremendous response of Consumers, "HALDIRAM" decided to go in for up-gradation in technology, packing, production etc. with the installation of plant and machinery of the order of best available state-of-the-art technology and sophistication. Through dint of hard work, complete dedication, uncompromising quality, - "HALDIRAM" became a part of each family and no house left without having product of "HALDIRAM" Our perpetual consistent quality, best packing strategy, vast market coverage and the number of years of experience have given us a cutting edge vis--vis our competitors. Our natural ilk to improve our performance and quality with each passing year has taken us way ahead of our nearest competitor. The people at Haldirams are very sensitive and customer friendly about the complaints, which infect is a rare occurrence from the customers and dealers.

PRODUCTS

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CONTACTS Contact Person: Mr. Brij Mohan Sharma/Mr. K. K. Goyal Haldirams Manufacturing Co. Ltd. B-1 /F-12, Mohan Co-operative Ind. Estate, Main Mathura Road, New Delhi-110044 India Tel: 6959386, 6959893, 6959672 Showroom: 6959765 Fax: 91-11-6959085 E-Mail: haldirams@vsnl.com

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TO STUDY THE GENERAL HABITS

DATA ANALYSIS CONCLUSIONS

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TO STUDY THE GENERAL HABITS OF THE CONSUMERS

This survey was to know the general preferences of people like which brand attracts them most? What are the factors that influence them more? And last but not the least what are difficulties faced by them for buying their brands? In the survey most of the people are between the age group 20 25. And this survey was carried out in RIMT IMCT itself.

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DATA ANALYSIS
1. Do you like chips? YES NO 28 2

YES NO

Interpretation 93% of the people have there preferences regarding chips. On the contrary only 7% have no preferences for chips, which mean that majority of the people do like chips.

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2. Which of these would you prefer? FRITOLAY'S HALDIRAM'S 21 7

FRITOLAY'S HALDIRAM'S

Interpretation From the diagram it is clear that people prefer FRITOLAYS chips more than HALDIRAMS chips.

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3. Which flavor of chips you like the most? Classic salted Spanish tomato tango Lay's chat street Haldiram's pudina treat Haldirams taka-tak others 6 13 4 0 3 2

14 12 10 8 6 4 2 0 Haldiram's pudina haldiram's taka-tak Classic salted Lay's chat street spanish tomato others

Series1

Interpretation Spanish tomato tango chips of Lays is the most demanded chips from the given list of various chips offered by FRITOLAYS and HALDIRAMS. Out of 30 samples taken, 13 people like Spanish tomato tango, after it the most preferred chips are classic salted by lays. So Haldirams chips are not like by many people.

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4. What makes you to prefer it? Taste Flavour price packing Other(specify)
25 20 15 10 5 0
e Fl av ou r e g Ta st ki n ic pa c ec i pr fy )

20 8 0 1 0

Series1

Interpretation From the table and the chart it is quite clear that most of the people go for their preferred product because of its taste. Out of the 30 samples taken, 20 people like the taste of their preferred product. After the taste people like flavour, more than anything else.

O th

er (

sp

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5. How often do you go for chips consumption? Daily Often Sometimes Rarely 1 9 13 5

14 12 10 8 6 4 2 0
ai ly n et im es O f te D ar e ly

Series1

Interpretation The consumption of the chips by a single person is not very frequent. People do not consume chips on daily basis. Either the chips are consumed by the sometimes or rarely.

So m

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6. Are your favorite chips easily available? YES NO 28 0

YES NO

Interpretation The availability of the product is one of the biggest factor in the consumption of the particular product. From the table and the chart it is very clear that people get their preferred chips quite easily from the market. These chips are available in most of the food products shops.

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7. What ratings will you give regarding the effect on consumer of the extra benefits like free pokemon with each pack? 1 2 3 4 5 2 8 12 5 1

1 2 3 4 5

Interpretation Now a day in order to remain in the competition every company is giving some kind of extra benefits along with their products. These extra benefits may or may not increase the sale of the product. Most of the people gave rating 3 to these benefits, so we can say that it does affect the sale but not a great deal.

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8. Your favourite chips would be most demanding in the future? Strongly agree Agree Neither Agree Nor Disagree Disagree Strongly disagree 4 21 2 1 0

Strongly disagree Neither Agree Nor Disagree Strongly agree 0 5 10 15 20 25

Series1

Interpretation To reach the top is one thing and to be there is the other. So to keep on having the demand of a particular product is one of the keenest aspect for the company. From the table it is clear that the people thing that their preferred chips will remain in demand in the future.

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9. Does your demand for the chips get affected by the presence of any celebrity in the advertisement? YES NO 17 11

YES NO

Interpretation Advertisements play a big role in the sale promotion of a product Brand ambassadors of a brand are a part of it. So while choosing the product the brand ambassador comes in the mind of the consumer. Most of the people think that their demand get affected by the celebrity assigned in the ad.

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10. What alternatives do you go for, when you dont find your favourite chips? Uncle Chips Kurkure Taka tak Lay's Chat Street Lay's Latino Salsa Lay's Magic masaala No Comments Leave the shop 5 8 3 4 3 2 1 2

Uncle Chips Kurkure Taka tak Lay's Chat Street Lay's Latino Salsa Lay's Magic masaala No Comments

Interpretation When the consumers do not find its preferred product he goes for some other one. Here in the absence of the desired chips, most of the consumers go for KURKURE.

11. What suggestions would you like to give so that company can

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increase its sale? Increase the Quantity Reduce the Price Improve Packing Change Brand Ambassador New Products and Flavours Increase in Advertisements No Comments

10 3 4 3 3 2 3

Increase the Quantity Reduce the Price Inprove Packing Change Brand Ambassador New Products and Flavours Increase in Advertisements No Comments

Interpretation To increase the quantity is the suggestion given by most of the consumers as it is quite clear from the table and the chart. Rest all are supplementary points for increase of sales.

12. RATE THE FOLLOWING ACCORDING TO SATISFACTION

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LEVEL
VERY POOR

PARTICULARS

VERY GOOD

GOOD

SATISFACTORY

POOR

PRICE TASTE FLAVOUR QUANTITY QUALITY PACKAGING AVAILABILITY

2 11 9 2 1 2 8

4 14 10 18 3 17 11

20 2 5 6 14 6 7

1 0 3 1 7 2 1

1 1 1 1 3 1 1

Interpretation For each of the feature separate interpretation is done: Price according to consumers the price of their preferred product is satisfactory. Taste the most of the consumers say that the taste is good. Flavour the ranking given to the flavour is in between good and very good. Quality quality of the product is ranked as good. Quantity quantity given by the manufacturers has been rated as satisfactory. Packaging the coloured selection for packaging selected by the manufacturer are good. Availability according to the consumer the product is easily available so the availability is good. .

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COMPARATIVE STUDY BETWEEN FRITOLAYS AND HALDIRAMS

The comparisons have been made by taking in the consideration the average of the points given by the consumers for the different features mentioned in the questionnaire.

PARTICULARS PREFERENCE PRICE TASTE FLAVOUR QUANTITY QUALITY PACKAGING AVAILABILITY

FRITOLAY'S

HALDIRAM'S

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CONCLUSIONS
The conclusion which is drawn out after going through the collected sample data from the students of RIMT-IMCT is that consumers of FRITOLAYS as well as of HALDIRAMS are well satisfied with the TASTE, QUALITY,AVALIABILITY,PACKAGING,FLAVOUR but where both of the brands lack is in QUANTITY and PRICE . The price which the consumer wants to pay is less and wants good amount of chips for that amount .So both of the brand competitors should go for some sales promotion schemes keeping a keen eye on PRICE and QUANTITY And another conclusion that can be easily drawn out from the survey is that HALDIRAMS chips have problem of availability as compared to FRITOLAYS chips.

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REFERENCES
www.google.co.in www.fritolay.com www.haldiram.com primary data from the students

FINDINGS
During the research discussions were held with a wide range of students. This offered an excellent opportunity to explore specific and examine different brand issues.