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Swagruha foods was started by middle class working individuals, as a family business They named it as Swagruha which means our home. The name reflected the motive of the promoters. Quality was the prime concern. This they ensured by getting all the work done manually and monitoring the production process.

Growing phase
A careful market study and market analysis was done through direct survey. Variety in sweets were introduced on the basis of demands which were based on season ,festival and occasion. Change in customers preferences was taken care of as with the increase of purchasing power, customer demanded expensive addition to the product. Care was taken for the convenience of the target customer, women and children

Growing Phase
Customer complains about monotony was resolved by request of trying other product and give a break to their regular products. Swagruha has already earned a brand image which was possible because of production of variety of products in small volume . Customer trust and loyalty was the main reason of success. Heterogeneity of the product was a prime concern as they brought variety and innovation in the product but maintained the standard.

Selection of Advertisement channel

Very careful in selection of advertisement channel. They started with local newspaper, local cable TV channels. With the growth of business they also advertised online .

They built a strategic relationship with their suppliers and customer ,all purchasing and selling were done on cash. Eighty percent sale was done to walk in customer and the business saw a huge sale .

Net profit generated before tax was 600000(30%)

Constant increase in revenue generation. Increase of 19 million from 1991 to 2007.

Challenges and problems

The main problem faced by the company is 1. Labor 2. Location of the outlet LABOUR : Getting the labor (managerial) who would help in infusing ideas to the company which was the most difficult task. Location of the outlet :centralized location model having relationship with quality Sales would have increased if the family would have compromised on quality.

Was facing huge competition from Haldiram , a better player in market. Haldiram used machine to get huge volume of production and reduce cost of production. Faced competition from new emerging rivals who imitated the product and brand name.

Future prospects
Had enough profit generated so can go for Expansion, however quality should be still be the prime concern Can open stores in cities like Hyderabad as Swagruha as a brand has already gained popularity as a quality. This could be utilized. They can launch new products like ice-creams targeting Children and youth as new product would be easily publicized. To break the monotony , they could change the packaging and also ensure more freshness(CFTRI could be contacted).

Future prospects
Must take care of new emerging competitors by ensuring that the patent of their products are not violated. They have already targeted and is performing good with walk in customer so they should now concentrate on taking bulk order from super bazaars.(20%). They are already doing a small percentage of sale to NRI customer through online shopping channel. This could globalize their business by opening stores in other countries.