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PROJECT REPORT ON

MARKETING STRATEGIES OF LIJJAT PAPAD

IN

SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD (SMGULP)

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT


OF

MASTER OF MANAGEMENT STUDIES

BY

AMIT UMESH CHOUDHARY

ROLL NO 2019033

MMS-II (SEM III)

YEAR 2019- 2021

LALA LAJPATRAI INSTITUTE OF MANAGEMENT


MAHALAXMI, MUMBAI – 400034
PROJECT REPORT ON

MARKETING STRATEGIES OF LIJJAT PAPAD

IN

SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD (SMGULP)

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT


OF

MASTER OF MANAGEMENT STUDIES

BY

AMIT UMESH CHOUDHARY

ROLL NO 2019033

MMS-II (SEM III)

YEAR 2019- 2021

LALA LAJPATRAI INSTITUTE OF MANAGEMENT


MAHALAXMI, MUMBAI - 400034
SUMMER INTERNSHIP PROJECT

MARKETING STRATEGIES OF LIJJAT PAPAD

SUBMITTED BY

AMIT UMESH CHOUDHARY

ROLL NO – 2019033

MMS – II (SEM III)

YEAR 2019- 2021


Certificate

This is to certify that the project work titled “Marketing Strategies of Lijjat
Papad” is a summer internship work carried out by Mr. Amit Umesh
Choudhary.

The project was completed for “Shri Mahila Griha Udyog Lijjat Papad
(SMGULP) “, under the guidance of Dr. M. Gowri Shankar.

I further certify that the said work has not been submitted in the part or in full,
to any other University.

Date: 29th September, 2020

_____________________ __________________________

Dr. M. Gowri Shankar Dr V.B. Angadi


Project Guide Director
DECLARATION

I, Mr. Amit Umesh Choudhary, student of Lala Lajpatrai Institute of


Management of MMS II (Semester III) hereby declare that I have completed the
summer internship project on Marketing Strategies of Lijjat Papad (Shri
Mahila Griha Udyog Lijjat Papad (SMGULP)) in the Academic year 2019 -
2021. The information submitted is true & original to the best of my knowledge.

Mr. Amit Umesh Choudhary


ACKNOWLEDGEMENT

At the outset of this project, I would like to express my profound thanks to a


few people without whose help, completion of this project would not have been
possible.

I am very grateful to Dr. Angadi, Director of Lala Lajpatrai Institute of


Management, for giving me the opportunity to do this project.

I would also like to thank Dr. M. Gowri Shankar for being an excellent mentor
and helping me whenever I approached him.

Last but not the least; I take pride in thanking my parents (Mr. Umesh Hari
Choudhary & Mrs. Aarti Umesh Choudhary ), siblings and friends for their
much valued support.
EXECUTIVE SUMMARY

SHRI MAHILA GRIHA UDHYOG LIJJAT PAPAD (SMGULP), popularly known as


"Lijjat", needs no introduction. Lijjat is woman's organization manufacturing different
products of village industries, having its central office at Mumbai. Lijjat is spread all
over India. It has 69 centers and 31 divisions in different states. In 1959, From Girgaum
(Mumbai), Shri Mahila Griha Udyog Lijjat Papad made a beginning under the blessing of
Shri Chhanganlal Lkaramshi Parekh popularly known as 'Pujya Chhaganbapa' who
was a member of the servants of India society and a highly successful social worker. In 1996,
it was recognized by the khadi & village industries commission under the chairmanship of
Pujya Uchhangral N.Dhebar. A deeper insight by the report shows Lijjat's achievements and
services renders to the society and how it has help the Indian economy to grow tremendously
in the past few years and in the tears to come.

What is the reason for its success? The working of the organization, management future
plans. Lijjat is the story of a business house that has created wealth for a nation and the story
of pioneers like Pujya Chhaganbapa, Pujya Uchhangral N. Dhebar. Which Business Model is
following by organization? What are marketing strategies they follow? What is Market
position of Lijjat papad? How they started as small cap / small scale company and now they
are market leader in organized market of papad segments. They have started from a city
becomes international exporter. We will understand the business model, working,
organisation structure, complete operations of Shri Mahila Griha Udyog Lijjat Papad. Their
principle and working strategies how make them different, efficient body.

We will also see how they developed their brand & its value by their marketing strategies at
that time, when there is rare availability of media & marketing tools. It is also important that
how they create their demands and market shares with their brand awareness. Their
advertising with jingle makes strong remarkable brand importance in consumer mind. Also
do interpretation with data analysis for current scenario.

This will explain dynamic scenario of papad industry and its competition from internal
organized sector & external unorganized sector. It also identify the factors need to be
improved for survival and to maintain market share. As there is growing digitalization,
market is going bigger on one side via internet but there is another side which is increase in
competition by local as well as global manufacturers. For being as market leader and to be at
that position for long journey, organization needs to do continuous research & development
in product or pricing or packaging. They can also do some changes with marketing tools &
strategies as this is dynamic, continuously evolving era. This will show how organization
deals with all uncertainty to be consistent & progressive.
INDEX

SR. CONTENT PAGE NO.


NO.
1 INTRODUCTION 09

2 COMPANY PROFILE 22

3 PRODUCT PROFILE & PRICING 29

4 BUSINESS MODEL & ORGANISATION 34


STRUCTURE
5 MARKETING STRATEGIES 47

6 ENVIRONMENT ANALYSIS:EXTERNAL & 65


INTERNAL
7 DATA ANALYSIS 102

8 FINDINGS 108

9 CONCLUSION 109

10 RECOMMENDATION 110

11 APPENDIX 112

12 GLOSSARY 114

13 BIBLIOGRAPHY 115
Marketing Strategies of Lijjat Papad

CHAPTER 1
INTRODUCTION

[Shri Mahila Griha Udyog Lijjat Papad]

1.1 Introduction

Shri Mahila Griha Udyog Lijjat Papad is a Women's organisation manufacturing various
products from Papad, Appalam, Masala, Gehu Atta, Chapati, SASA Detergent Powder,
SASA Detergent Cake (Tikia), SASA Liquid Detergent. The organisation is wide-spread,
with it's Central Office at Mumbai and it's 81 Branches and 27 Divisions in different states all
over India.Membership has also expanded from an initial number of 7 sisters from one
building to over 43,000 sisters throughout India. The success of the organisation stems from
the efforts of it's member sisters who have withstood several hardships with unshakable belief
in 'the strength of a woman'. Shri Mahila Griha Udyog Lijjat Papad is a Women's
organisation manufacturing various products from Papad, Appalam, Masala, Gehu
Atta, Chapati, SASA Detergent Powder, SASA Detergent Cake (Tikia), SASA Liquid
Detergent. The organisation is wide-spread, with it's Central Office at Mumbai and it's 81
Branches and 27 Divisions in different states all over India. Membership has also expanded
from an initial number of 7 sisters from one building to over 43,000 sisters throughout India.
The success of the organisation stems from the efforts of it's member sisters who have
withstood several hardships with unshakable belief in 'the strength of a woman'.

1.1.1 The Beginning

It all began on 15th march 1959, which was a warm summer day with the sun shining
brightly in the cloudless sky. A majority of the women inhabitants of an old residential
building in Girgaum (a thickly populated area of South Bombay), were busy attending their
usual domestic chores. A few of them, seven to be exact gathered on the terrace of the

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Marketing Strategies of Lijjat Papad

building and started a small inconspicuous function. The function ended shortly, the result -
production of 4 packets of Papads and a firm resolves to continue production. This pioneer
batch of 7 ladies had set the ball rolling. As the days went by, the additions to this initial
group of 7 was ever-increasing. The institution began to grow. The early days were not easy.
The institution has its trials and tribulation. The faith and patience of the members were put
to test on several occasion - they had no money and started on a borrowed sum of Rs. 80/-.
Self-reliance was the policy and no monetary help was to be sought (not even voluntarily
offered donations). So work started on commercial footing. With quality consciousness as the
principle that guided production, Lijjat grew to be the flourishing and successful organisation
that it is today.

1.1.2 Core Value

Shri Mahila Griha Udyog Lijjat Papad is synthesis of three different concepts, namely

(1) The concept of Business

(2) The concept of family

(3) The concept of Devotion

These entire concepts are completely and uniformly followed in this institution. As a result of
this synthesis, a peculiar Lijjat way of thinking has developed therein. The institution has
adopted the concept of business from the very beginning. All its dealings are carried out on a
sound and pragmatic footing - Production of quality goods and at reasonable prices. It has
never and nor will it in the future, accept any charity, donation, gift or grant from any quarter.
On the contrary, the member sisters donate collectively for good causes from time to time
according to their capacity.

Besides the concept of business, the institution along with all its member sisters has adopted
the concept of mutual family affection, concern and trust. All affairs of the institution are
dealt in a manner similar to that of a family carrying out its own daily household chores. But
the most important concept adopted by the institution is the concept of devotion. For the
member sisters, employees and well-wishers, the institution is never merely a place to earn
one's livelihood - It is a place of worship to devote one's energy not for his or her own
benefits but for the benefit of all. In this institution work is worship. The institution is open
for everybody who has faith in its basis concepts.

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Marketing Strategies of Lijjat Papad

1.1.3 Diversification

Shri Mahila Griha Udyog has diversified its various activities. Besides its world famous
papads it also currently has –

 A Flour Division at Vashi (Mumbai) where flour is milled from Udad Dal and
Moong Dal.
 A Masala Division at Cottongreen (alongwith a Quality Control Laboratory) at the
same place where different kinds of spice powders like Turmeric, Chillies, Coriander
and ready mix masala and like Garam Masala, Tea Masala, Pav Bhaji Masala, Punjabi
Chole Masala etc. are prepared and packed in consumer packs.
 A Printing Division also at the same place.
 Lijjat Advertising Division at Bandra (Mumbai)
 Chapati Divisions at Bandra, Wadala, Mulund & Kandivali
 A Polypropylene set-up at Kashi-Mira Road.
 A Detergent Powder and Cakes manufacturing unit at Pune (Sanaswadi).

1.1.4 Management

 Current Office – Bearers

1. Smt. Swati R. Paradkar – President

2. Smt. Pratibha E. Sawant- Vice-President

3. Smt. Sharda D. Kubal- Secretary

4. Smt. Priyanka G. Redkar- Secretary

5. Smt. Namita N. Sakpal- Treasurer

6. Smt. Sakshi S. Palav- Treasurer

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Marketing Strategies of Lijjat Papad

1.1.5 Core Management structure

1.1.6 Quality Policies

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Marketing Strategies of Lijjat Papad

1.1.7 Brief Information:

Shri Mahila Griha Udyog Lijjat Papad (Recognised by Khadi & Village Industries
Commission) :This is a women's organisation of the women, by the women and for the
women. It was started in 1959 with 7 lady members with a borrowed sum of Rs. 80/- at
Girgaum in Mumbai. The turning point of Institution was in 1966 when it was registered
under the Bombay Public Trusts Act 1950 and also registered under Societies Registration
Act, 1860 and got recognition by Khadi & Village Industries Commission as a village
industry. The objective of the Institution is to provide self-employment to the ladies to enable
them to earn decent and dignified livelihood. Any women who can render physical work in
this Institution without distinction of caste, creed and colour and agrees to abide by the
objective of the Institution can become a member of the Institution from the date on which
she starts working. Papad production work starts at early hours in the morning i.e. 4.30 a.m.
We have mini bus which picks the members from the closest point of residence to the branch
and back home. Every branch is headed by a Sanchalika to see the production of the branch.
We have a Central Managing Committee, which consist of 21 members out of, which we
have 6 (Six) elected Office Bearers i.e. President, Vice - President, 2 (Two) Secretaries and 2
(Two) Treasurers. All the branches are autonomous units and the income or loss as the case
may be of such unit is borne by the owner sister members of that branch by increasing or
decreasing their rolling charges accordingly. The credit for rapid progress goes to the
constant vigilance on the part of sister members maintaining the quality of Lijjat Papad with
their hard work.

1.1.8 Achievements & Recognitions

 Besides Lijjat Papad the Institution has other products like Masala, Gehu Atta,
Chapaties, Appalam, Detergent Powder & Laundry Soap. At present it has 82
Branches & 27 Divisions and gives self-employment to about 45,000 sister members
all over India.
 Company’s exports are made through Merchant Exporters to countries like UK, USA,
Middle East Countries, Thailand, Singapore, Hongkong, Holland, Japan, Australia
and other Countries.
 'Lijjat' provides scholarships to the children of the papad roller sister members who
pass out in 10th and 12th standard every year so as to enable the Lady Members to
encourage their children for education.

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Marketing Strategies of Lijjat Papad

 The Institution has received an award from Khadi & Village Industries Commission
as a "Best Village Industry" for the period 1998-1999 to 2000-2001.
 A documentary film on 'Lijjat' featured on BBC World Channel on 13th and 18th
August 2002 in its programme 'Business Bizarre' covering the detail working of
Institution.
 On 6th September 2002, Institution has received the Economic Times Award of
"Businesswomen of the Year 2001-02 for Corporate Excellence".

 In March 2003 we received the award for 'Best Village Industries' at the hands of
Hon'ble Prime Minister Shri Atal Behari Vajpayee at New Delhi.

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Marketing Strategies of Lijjat Papad

 On 21st December 2005 , Institution has received the 'Brand Equity Award' at the
hands of Hon'ble President of India, Dr.A.P.J. Abdul Kalam being presented by
PHDCCI at Vigyan Bhavan, New Delhi.

 Lijjat Papad has been chosen as a Power Brand 2010-2011 by the Indian Consumer
and received the Award on 4th February 2011 in New Delhi.
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Marketing Strategies of Lijjat Papad

 Khambatta Lifetime Achievement Award for 2010 was conferred on Smt. Swati R.
Paradkar, President of Shri Mahila Griha Udyog Lijjat Papad by All India Food
Processor's Association, New Delhi. The Award was presented by Shri Harish Rawat,
Hon'ble Minister of State for Agriculture & Food Processing Industries, Government
of India on 16th December 2011 at New Delhi.
 'Outstanding Service Organisation Award-2012' was conferred on Smt. Swati R.
Paradkar, President of Shri Mahila Griha Udyog Lijjat papad, by National Institution
for Quality and Reliability (NIQR), Chennai. The Award was presented by His
Excellency the Governor of Tamil Nadu, Dr. K. Rosaiah on 21st April 2012.
 National Industrial Excellence Award conferred on Smt. Swati R. Paradkar on 28th
March 2013 received from National Education & Human Resouce Development
Organisation. Also received Quality Brands India Award for 2013-15 on behalf of
Institution from Quality Branch Times.
 Lijjat was conferred the National Award as 'Best Village Industries Institution for
2012-13' which was received by the President, Smt. Swati R. Paradkar on 1st March
2014 at Vigyan Bhavan, New Delhi by the hands of Hon'ble MSME Minister Shri
K.H. Muniyappa & Hon'ble Chairman of KVIC Shri Devendrakumar Desai.
 President Smt. Swati R. Paradkar of Lijjat Institution received the 'Entrepreneur
Award 2014' from Hon'ble Union Minister for Rural Development, Shri Chaudhary
Birender Singh on 17th November 2014 at New Delhi.

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Marketing Strategies of Lijjat Papad

 President of Lijjat’s Institution Smt. Swati R. Paradkar has been awarded the
Wockhardt Foundation Social Development Popular Award under the category
'Livelihood Facilitator of the Year' in recognition of her contribution to Society in the
field of Social Development activities with complete devotion and dedication.
 The Certificate of Honour was presented to Lijjat’s President by Wockhardt
Foundation on 20.02.2017.
 Smt. Swati R. Paradkar, President of Shri Mahila Griha Udyog Lijjat Papad was
presented the 'Mahila Vikas Award 2016-17' by the Hon'ble Prime Minister of India,
Shri Narendra Modi. The Award was received by Lijjat’s President at a function held
at Mahatma Mandir, Gandhinagar, Gujarat on 8th March 2017 during the Swachh
Shakti 2017 National Convention organised by the Government of India to celebrate
International Women's Day 2017.
 President of Shri Mahila Griha Udyog Lijjat Papad, Smt. Swati R. Paradkar was
presented the 'Global Economic Award' for outstanding contribution to Women
Empowerment and Self-reliance by Mrs. Nora K. Terrado, Hon'ble Minister for Trade
and Industry, Philippines in the Global Economic Summit 2017 which was organised
by World Trade Centre from 27th to 29th March 2017.
 A Documentary film on 'LIJJAT' was telecasted by National Geographic Channel on
3rd July 2017 at 9.00 p.m.. The film presented an Inspiring Story of Passion, Hope &
Enormity of Lijjat Papad Kitchen which has become a catalyst of Women's
Empowerment. The film was shown in the series 'India's Mega Kitchens' telecasted
on its worldwide channel.
 Institution was honoured with 'The Greatest Marketing Influencers Award 2018' for
exemplary marketing leadership which has contributed to the growth of the Institution
by World Federation of Marketing Professionals. The Award was presented to
Lijjat’s President, Smt. Swati R. Paradkar by Dr. Jai Madaan, Renowned Astrologer
& Numerologist at a function held at Taj Lands, Mumbai on 15th February 2018.
 President, Smt. Swati R. Paradkar was honoured by Yogrishi Swami Ramdevji
Maharaj for Outstanding Contribution to Society in the field of women empowerment
and welfare at a function helf on 18th March 2018 at Solapur which was organised by
Patanjali Yog Samitee, Bharat Swabhiman Trust, Haridwar.
 President of Lijjat’s Institution Smt. Swati R. Paradkar received the 'International
Women Empowerment Summit Award 2019 (IWES) at a function held at the Ashoka

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Marketing Strategies of Lijjat Papad

Hotel, New Delhi on 12th February 2019. The Award was presented to Smt. Swati R.
Paradkar by Hon'ble Union Minister of Petroleum & Natural Gas, Shri Dharmendra
Pradhan.
 Lijjat Institution received the Prestigious Brands of India 2019 Award from Herald
Global and Brand Advertising Research & Consulting (HGBARC) Asia at a function
held at Mumbai on 12th February 2019. The Award was received by Smt. Priyanka
G. Redkar, Secretary and Smt. Namita N. Sakpal, Treasurer which was presented by
Smt. Shweta Mehta Fitness Athlete.
 President of Lijjat’s Institution Smt. Swati R. Paradkar received the Prestigious Social
Work Excellence Award-2019 conferred by the University of Science & Technology,
Meghalaya on 19th March 2019.
 President of Lijjat’s Institution Smt. Swati R. Paradkar was conferred the 'Anita
Parikh Empowerment of Women Award' for the year 2018-2019 by The Rotary Club
of Mumbai at a function held at Taj Mahal Hotel, Mumbai on 18th June 2019. The
Award was presented by Shri Vijay Kumar Jatia, President of Rotary Club, Mumbai.

The Institution, over the years, has paved the way for women to become self-reliant and self-
confident. Lijjat has provided them the right platform to improve their status in society.

Main Office:

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Marketing Strategies of Lijjat Papad

1.2 OBJECTIVES OF THE STUDY

 To understand Overall SMGULP organisation & its Management


 To understand Branding & Marketing Strategies of SMGULP
 To study Brand Lijjat, brand values & its brand awareness
 To study working ,planning & execution of SMGULP

1.3 SCOPE OF THE STUDY

 This study used to understand the trends in market and to take action accordingly.
 This study tells us that where there is need of improvement for survival & market
growth.
 This study also helps us to understand the need of adaptability according to market
environment.
 This study also explain ups and downs of organization in past to make plans for
fruitful future.

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Marketing Strategies of Lijjat Papad

1.4 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may


understand as science of studying how research is done scientifically. Various steps &
techniques adopted for research are studied in research methodology.

1.4.1 Data to be collected -

a) Primary data: It is that data which is collected for the 1st time. Primary data I collected
was -
 Customer s view about various attributes of brand.
 Customer s actual experience of the brand.
 Customer s expectations & suggestions.
 Major competitors.
 Current market share of Lijjat Papad.
b) Secondary data: It is that data which is already assembled & need not to be collected. The
secondary data was -
 Company profile
 Product profile
It was collected from internet, company booklets & reports.
1.4.2 Data Collection Method-
For this project, the primary data which needed to collect for the 1st time was gathered
through survey technique which most effective & popular technique for data collection.
The survey was conducted with the use of questionnaire.
1.4.3 Research Instrument-
Questionnaire consists of following types of questions.
a) Closed ended: These are the questions that specify all the possible answers that are easy
to tabulate & interpret. Further sub-types used are
1. Dichotomous questions: These are the questions with only 2 possible answers.
2. Multiple choice questions: These are the questions with more than 3 or more answers.
3. Rating scale: It is a scale that rates some attribute from poor to excellent.
b) Open ended: These type questions allow respondents to answer in their own words &
often reveal about how people think. They are especially useful in exploratory research where
researcher is looking for insight into how people think rather than how many people think in
a certain way. The sub-types used are-

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Marketing Strategies of Lijjat Papad

1. Unstructured questions: Respondents can answer in unlimited no. of ways.

2. Word association: Respondents mention the which comes to their mind when they hear the
brand name.

1.4.4 Sampling

For Sample, small group of 50 consumers is taken under consideration from total customer
population. This small group represents the total population. In the project, I studied market
in Mumbai city. As it was impossible to approach all respondents of city, a sample was
selected which represent whole city.

1.4.5 Data Evaluation

All the data collected was not accepted as it was collected. It was filtered & only relative data
is introduced in the report which helped in achieving objective of the project.

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Marketing Strategies of Lijjat Papad

CHAPTER 2
COMPANY PROFILE

SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD

(For the women, by the women)

Shri Mahila Griha Udyog Lijjat Papad, popularly known as Lijjat papad, is an Indian
women’s cooperative which was started for the empowerment of women in 1959. It is an
organisation of the women, by the women and for the women. Starting as an urban cottage
industry it has now spread to rural areas as well. Lijjat, which started with a seed capital of
just Rs. 80, has an annual turnover of Rs. 6.50 Billion and provides employment to 43000
people. Lijjat believes in the philosophy of collective leadership making it one of the most
remarkable and unique organizations of today. Women, the working members in the
organization and are considered the owners and have an equal share in the profit and loss of
the organization. All the decisions in the organization are taken by consensus and any
member can veto a decision. This organization has transformed the image and status of
women in the country. It has not only provided them with employment but also with a
dignified way to earn livelihood. Another interesting facet of the organization is the role of
men in the organization. The men work in the organization as salaried employees only and
cannot be members or owners. Lijjat has diversified its product line and now makes spices
and detergents also. Papad, Masala, Vadi, Appalam, Khakra, Chapati, Gehu Atta and
detergents are some of its major products.

2.1 History

Shri Mahila Griha Udyog Lijjat Papad was formed in 1959 as a women’s organization
manufacturing papad. Lijjat is headquartered in Mumbai, India. In many Indian languages
Mahila means women, Griha means home and Udyog means industry. In Gujarati, Lijjat
means “tasty”. Lijjat started with an initial capital borrowed from Chhaganlal Karamsi
Parekh (Chhaganbapa), a member of the servants of the India society, and seven members
with primary focus on women empowerment by providing them employment. These seven
women who were the residents of Girgaum, a populated area in south Mumbai gathered on
the terrace of the building and produced 4 packets of papad. They also decided to produce
papad on regular basis. Lijjat group gathered word of mouth publicity and various articles in

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Marketing Strategies of Lijjat Papad

the newspaper. The members of the group increased with the demand and scale of operations
of Lijjat papad. In the first year, the annual sales of Lijjat papad were around Rs.6196. In the
year 1963, the annual sales of papad reached Rs.1.82 lakh. During the early years, women
were making two qualities of papad with the intention of selling the inferior quality at a lower
price. But, Chhaganbapa became their guide and taught them the importance of quality and
never to compromise that. In July 1966, Lijjat registered itself under Societies Registration
Act 1860. In September1966, Khadi development and Village Industries Commission
recognised Lijjat as an organization as a part of processing of cereals and pulses industry
group under the Khadi and Village Industries Act. It was also recognised as a village
industry. Lijjat started a flour mill in the year 1975, printing division in the year 1977 and
polypropylene packing division in the year 1978 to further expand and support their current
businesses. By the year 1980 Lijjat started exporting its products. Lijjat expanded as a
cooperative society and had an annual turnover of around Rs. 6.50 billion in the year
2010.Lijjat has 67 branches and 35 divisions all over India. Lijjat is primarily a cottage
industry and one of the most remarkable entrepreneurial initiatives by Indian women. In
2003, Lijjat received the "Best Village Industry Institution". It also received the PHDCCI
Brand Equity Award 2005. Lijjat marked its 50th year (golden jubilee celebration) of
existence on 15 March 2009.It also dominating in market of papad industry from last six
decades.

2.2 Scope and Future of Organization

Lijjat papad is a brand with a difference .This brand is a special one because it makes a
difference in the livelihood of thousands of poor women in India. Papad is a form of Indian
crispy bread. The food is taken as a snack and also along with lunch and dinner. Lijjat has
become an integral part of the Indian palette through sheer determination and hard work. The
most important factor that the made this brand a success was the careful operational planning
that goes behind the brand. The brand is having the strength of “Consistently Good Quality”
as its USP. Recently this brand is also facing competition from other players. Unlike other
social brands, Lijjat was serious about advertising. The brand communicated its Crispness
and quality through its ads. The ads features a Bunny (mascot) and a very popular jingle
‘Khurram Kharram”. The positive word of mouth, the advertisement, the consistent good
quality and the distribution made this brand highly successful. The company has also

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Marketing Strategies of Lijjat Papad

diversified into detergent branded SASA and other food products. The brand is a unique
success story. This story changed the life of more than 40000 poor women.

2.3 Empowerment of Women

Lijjat Papad Company has encouraged the housewives to use their cooking skills and become
the owner of an organization. These women started earning between Rs. 10,000-15,000,
which lead to the empowerment of women from a disadvantaged background. Lijjat has
provided respect to women. Some of the women of Lijjat were able to make their children
study in AIIMS and IIT. The women working in the Lijjat Papad Company are called Lijjat
sisters.

2.4 Built a Strong Channel

Every day, Lijjat sisters are picked up by a Lijjat Papad Company bus from their homes to the
Lijjat branch centre, which has three windows:

(i) Deposit Window: At this window, the Lijjat sisters deposit the Papad made by them. After
receiving the Papad, a quality check is done and the Lijjat sister receives a deposit slip.

(ii) Payment Window: Lijjat sisters show the deposit slip at the payment window and get
their daily wages.

(iii) Collection Window: At this window, Lijjat sisters get the kneaded dough to make more
Papad. After collecting the dough, the Lijjat sisters get back into the buses that drop them at
their homes.

2.5 Standardization

The Branch head of a Lijjat Papad Company center is called “Sanchalika”. She gets the full
training from the company and an aluminium rolling board. This rolling board is
standardized. It keeps the shape, size, weight, and thickness of a Papad standardized.
Standardization in the Papad is the reason why 4.8 Billion Papads made by 45,000 Lijjat
sisters all over India have similar tastes.

2.6 Network

The Cooperative Movement triggered by women entrepreneurs led Lijjat Papad Business to
spread their legs to 82 branches in 17 states of India. Today, they export papad worth Rs 80

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Marketing Strategies of Lijjat Papad

crores in 25 countries. They have a turnover of Rs. 1600 crores. They have also come up with
different products like masala, Mirchi, soap, detergent, and readymade chappati. They are
able to expand their business because of their stringent sourcing policies. They maintain
standardization in their raw materials like asafoetida (heeng), black pepper (kali mirch), and
urad dal by bringing them from specific places. They never use machines for making Papad.
Whenever they need to expand, they increase the number of Lijjat sisters. They distribute the
profit among the Lijjat sisters. They have a profit-sharing model. As a result, they are able to
bring unity among the Lijjat sisters and are ready to work extra for the company.

2.7 Maintain Transparency

Lijjat Papad Company has strong foundational policies. It has 0% gossips and 100%
transparency policy. In this policy, whispering and politics are not allowed and if someone
wants to say anything then they have to say it aloud. As a result, a common purpose and
vision are designed for the empowerment of women for poor communities to increase their
economic participation.

2.8 Strong Vision

Octogenarian Jaswantiben Jamnadas Popat is the co-founder of Lijjat Papad Company. If she
had wanted, she would have become the owner of the billion-dollar company. But, she
wanted to empower the women and give them respect so that they can make their children
study. From starting, the business model of Lijjat Papad Company is business-oriented
instead of NGO oriented. They have a sound foundation of accounts and finance. They have
focused on sales, marketing, branding, and promotion from starting. They have standardized
the sourcing and the quality, size, and shape of the Papad. They have never accepted
donations instead they have given donations. They want to keep their cash flow statement
positive. So, they keep their accounts and finance so strong that they have never taken
supplies on credit and they make the payment of suppliers instantly. Also, they have never
given goods on credit to their distributors. They take instant payment from the distributor.
They make daily payments to Lijjat sisters.

2.9 Maintains Career Growth

The growth of the Lijjat sisters is also very transparent. They join as a roller and then
gradually go through various departments to become the Branch head. After promotion, the

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Marketing Strategies of Lijjat Papad

Branch head is posted to the corporate office of Lijjat Papad Company in Mumbai where she
becomes a member of the committee. This committee has 21 members who govern the whole
business. Among these 21 members, some become the treasurers, some vice presidents, and
some presidents. This committee conducts weekly and monthly review meetings- branch
wise, department wise, division wise, and product-wise.

2.10 Quality Control

Lijjat Papad Company also has a quality control team branch wise. One member from the
quality team visits the home of Lijjat sisters to ensure that they are using all the quality
parameters while making the Papad.

2.11 Organizational belief and working pattern

Lijjat believes in the philosophy of sarvodaya and collective ownership. It accepts all its
working members as the owners and an equal partaker in both profit and loss. The members
are co-owners and fondly referred to as "sisters". All the decisions are based on consensus
and any member-sister has the right to veto a decision. Men can only be salaried employees
(accountants, drivers or security guards), and not the members of the organisation (i.e. they
are not the owners).

The running of the organisation is entrusted to a managing committee of twenty-one


members, including the President, the Vice-President, two secretaries, and two treasurers.
Sanchalikas are in-charge of various branches and divisions. The office bearers of the
managing committee and the sanchalikas are chosen from among the member-sisters on the
basis of consensus every three years. Each branch has a committee of eleven member-sisters,
again chosen by consensus.

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Marketing Strategies of Lijjat Papad

2.12 Lijjat Working & Functional Structure

Flowchart: Lijjat Collection Structure

Lijjat Collection Flowchart

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Marketing Strategies of Lijjat Papad

Flowchart: Lijjat Distribution Structure

Lijjat Distribution Flowchart

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Marketing Strategies of Lijjat Papad

CHAPTER 3
PRODUCT PROFILE & PRICING

3.1 Products and Division


A) Lijjat manufactures several products of which the papad is the most famous:
• Papad (Five Flavours: lassan, moong, mirchi, Panjabi and urad)
• Khakhra
• Appalam
• Masala
• Vadi
• Gehu Atta(wheat Flour)
• Bakery Products
• Chapati
• SASA Detergent powder
• SASA Detergent cake (Tikia)
• SASA Nilam Detergent powder
• SASA liquid Detergent
B) Lijjat has several division and manufacturing units:
• Dal and flour division (Nasik, Vashi, Pune)
• Masala Division and Quality control laboratory (Cotton Green)
• Printing Division (Cotton Green)
• Advertising Division Bandra
• Khakhra Division, (Buhari, vvalod district)
• Chapati Division at Wadala Borivali, Mulund, Kandivali, Govandi, Bandra and jui
nagar
• Polypropylene setup (Kashi-mira road)
• Vadi factory (Valod)
• Bakery Division (Valod)
• Detergent powder and cake Manufacturing unit (Dahisar) and office (Birivai, pune)
• Export Division
• Raw material Division (Hing powder, Mira Dal and Mira Fotra)

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Marketing Strategies of Lijjat Papad

3.2 Products and Pricing of Lijjat Papad [Consumer / Dealer Price


List]

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Marketing Strategies of Lijjat Papad

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Marketing Strategies of Lijjat Papad

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Marketing Strategies of Lijjat Papad

Chapati- Rs.15.00 per Packet (5 Chapaties)


Rs. 80.00 per Kg

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Marketing Strategies of Lijjat Papad

CHAPTER 4
BUSINESS MODEL & ORGANISATION STRUCTURE

4.1 Profit sharing model: Business Model

One of the important features of Lijjat Papad’s business model is collective ownership. It
accepts all „Sisters‟ as owners and follows profit-loss sharing model. Profit is shared equally
among branch members either in the form of gold coins or in cash. The decision whether to
share profit in the form of gold coins or in cash is taken at the branch level. Lijjat ensures
transparency by making accounting books accessible to every member of the organization.
This way each member is responsible for her own income. Also, bonus is given to the
members who have done good work. Bonus too can be given either as cash or as gold coins
like member sisters at Rajkot were given bonus of Rs.4000 each in 2002 whereas Mumbai
and Thane branch members received five gram gold coin as a bonus.

4.1.1 Overall process

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Marketing Strategies of Lijjat Papad

4.1.2 Lijjat Products Collections flowchart

To maintain the quality of Papad, the headquarter purchases all the raw materials. Raw
material which requires pre-processing (Urad, moong daal) is first sent to Vashi and Nashik
plants before sending it to various branches across India. Ready to use raw material like
spices and black pepper is directly sent to branches. It was observed that quality of Papad
varies because of water purity difference in various parts of country. To avoid inconsistency,
Papads are tested at Mumbai lab. In monthly meetings required modifications and quality
issues are discussed. Certified packets are then sent to depot of the area from where they are
sent to distributors and merchant exporters.

4.1.3 Competitors
Papads use to be made in good olden days in the household. Sometimes it was taken to be a
community work. The doyen of the SMGULP, late Changanbapa Parekh has taken this

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Marketing Strategies of Lijjat Papad

example and embedded the same in the minds of the 7 sister members collective
manufacturing of papads is main motto of the making quality products. And exercise in this
the profitability is never thought off and whatever profit was deriving from the manufacturing
of papads, the same are distributed among sister-members.
The other competitors in the business such as Bikaner Papad, Ganesh Papad and Suhana
Papad and many others and sundries have also been in the business of making papad and
marketing the same.
It has been observed that the gaps left by SMGULP while marketing lijjat papad are being
filled in by these papad producers. When questioned to the marketing, Dept. of SMGULP
about efforts for the marketing of lijjat papad being taken by them, it was revealed that there
are virtually no efforts of marketing since SMGULP works only on the principle of demand
and supply for the simple reason that papad is perishable product.
The competitor’s activities Sona Papad, Kamdhenu Papad, Prince Papad, Mona Papad,
Pravin Papad, Gujrathi Papad, Mamta Papad, Aarti Papad which are being carried out by the
section of the women in the vicinities of those of Lijjat Papad rolling women area, were
particularly interviewed since these women are competitors papad rolling women performing
the activity of papad rolling as labourers and not as owner of the organisation as the case is in
SMGULP.
In fact, while interviewing Sanchalika of the organisation of Shri Mahila Griha Udyog Lijjat
Papad (SMGULP), the researcher was verbally informed that it is easy to out these
competitors by increasing the production of lijjat papads but only because of its acceptance of
the principle of SARVODAYA and the policy of live and let live, they are restricting the
output of the supply thus leaving space for these small competitors.

As this is era of digitalization, there are many options for people (consumers/customers) in
local players as well as players in online market. Hence Survival is quite difficult as well as
very difficult to maintain dominant market share.

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Marketing Strategies of Lijjat Papad

4.2 Organisational Structure and Management

4.2.1 Core organization

The Organization consists of a 21 member Managing committee. All the members have equal
ownership. The people for the Management committee are chosen by consensus. The
committee also consisted of a President, a Vice President, two treasurers and two secretaries.
The regional branches are controlled by members known as Sanchalikas. All the branches
work as separate entities. Profits and losses are distributed as per the branch. The only central
process was the supply of raw materials from the central Mumbai office. Before taking any
strategic decision the branches take permission from the central office. All the work of the
branches is carried to the member’s home. It gives them the freedom to complete the work as
per their schedule.

Flowchart: Lijjat Organisation Structure

Lijjat Organisation Structure

The central office at Mumbai previously coordinated the activities of various branches. But,
as the organisation grew, the authority was decentralised in terms of work and sharing of
profits at the branch level. However, the sanchalikas still need the managing committee's
approval before they undertake any new project or activity.

All the branches follow the same set of instructions and have similar accounting system. To
co-ordinate various branches in a region or state, there are branch co-ordination committees

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Marketing Strategies of Lijjat Papad

and area meetings of the various branches in a state. The annual general meeting is attended
by member-sisters representing branches and divisions from all over India.

Currently, Lijjat has branches in seventeen Indian states – Andhra Pradesh, Bihar, Delhi,
Gujarat, Haryana, Jharkhand, Jammu and Kashmir, Karnataka, Kerala, Madhya Pradesh,
Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, and West Bengal.

4.2.2 Organizational Culture and Core Values

Core Values

Business was always the key factor kept in mind while establishing Lijjat papad. All the
sisters while joining the organization are made to take a pledge which consists of the values,
namely, self-dignity, respect and co-ownership. The Company also follows three golden
rules:

1. All the rights of the institution must belong to the members only.
2. There must be maintenance of quality of Lijjat at any cost.
3. There must be clean and time bounding accounting system.

Co-ownership

Each member sister is also the owner of the firm. The entire decision making is consensus
based. Every member has the right to veto. There is no bias on the basis of work role or
seniority. Every member earns his daily wage as per the work hours and the profits are shared
equally. The organization gives the member sisters autonomy i.e. to complete the work when
they like. This part was a major cause of success as it is difficult for the housewives to
maintain a fix work schedule.

Respect

The organization since its inception has not accepted any donations voluntarily or
involuntarily, even during losses. They wanted this business to be strictly professional and
not some charity based organization for women. That is why quality plays such an important
role in this industry because it is their USP (Unique Selling Proposition). The work place is
treated as a place of worship.

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Marketing Strategies of Lijjat Papad

Culture

Lijjat Patrika is the in house magazine of the organization. It is distributed at nominal rates
for those who are interested in the organization. It is published in many languages including
Hindi, Gujrati, English and Marathi. The magazine aims at publishing recent initiatives of the
company and articles related to empowerment of women. Member sisters across all the
branches recite an all-religion common prayer before beginning the work. Member sisters are
free to choose their work. Every work is given equal importance. Also there is no fixed
retirement age. Members are free to work till they prefer because the main purpose is to
provide daily wages and empowerment to women. With such a decentralized system, it
becomes important to reduce the time for decision making. For this purpose, each of the
centres managed their own accounting and the distribution orders were more or less fixed.
There is an environment of mutual trust in all the branches. Since every member is the owner,
nobody is expected to retain the raw materials for their own use. The members also invest in
the organization from time to time as per their capacity, whenever some need arises. It thus
forms a large family where each and every family member is responsible for the well-being
of every other member.

4.2.3 Impact of Organizational Culture on Employees

Inspite of the popular sentiment of not recruiting women employees, Lijjat Papad took the
bold step of being a women-only organization. Men are salaried employees like drivers,
electricians, etc. They cannot be counted as members of the organization. Growth of Lijjat
papad is seen as a flag bearer of women-empowerment. Along with the daily wages for the
papad making process, efforts are being taken to achieve overall development of the
employees:

Literacy

The organization has taken various efforts to promote literacy and computer education for the
employees and their families. Literacy campaign began with the literacy classes in Girgaum
in 1999. The initial goal of the program was to help the lady to read or write a letter, maintain
a bank account, pay bills, teach her children, assist her husband in his work, and live
independently. Later, the managing committee decided to start such classes in all its
branches. For the family of the employees, Chhaganbapa Smruti Scholarships are awarded
tothe daughters of the member-sisters so as to encourage better performance in studies. With

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Marketing Strategies of Lijjat Papad

such initiatives, the families of the member-sisters feel connected with the organization. This
creates a sense of belonging and prevents the member sisters from leaving the job owing to
family reasons. With the literacy programs, the employee satisfaction improves and the
overall capabilities of the sister-members also improve. These capabilities can be utilized in
times when new recruitments are to be made. The improved capabilities open up options for
internal sourcing of talent.

Inclusion/participation

The growing business and need of information dissemination has led to increased information
flow and communication amongst the member sisters at various branches. Inclusion is
achieved through monthly regional meetings, Annual General Meetings and All India
conventions of branches. These meetings aim to make the member sisters aware about the
organizational activities conducted across the branches and the new strategies to be
implemented in the future. These meetings are a forum to raise issues like quality
maintenance, production rates, the handling of accounts and everyday problems. Such
initiatives improve the participation of the member sisters and improve the work
environment. The members are encouraged to take part in activities like trade fairs and
exhibitions held across India. The management of such activities is ensured by the sister-
members. To be able to successfully manage these programs, members are trained through
training programs. Such activities serve the dual purpose of contributing to the popularity of
the Lijjat brand and also empowering the women with self-confidence and improved soft
skills. Also, the training programs add value to the resource pool by improving the skills of
the members which can be harnessed for other activities. It has been observed that such
trained members go on to significantly contribute to the functioning of the organization.

Devotion and sense of worship

The interests of all the women are treated equally. Their status is not just as an employee but
more of a sister member. This ensures fair and equal treatment for all the sisters. Also, the
single post – that of a member sister ensures least power difference among the members. The
rites of participation are strengthened by the signing of a pledge of devotion. This pledge is
an assurance of earning honest income through the cooperative work. It also elevates the
status of the workplace as a place of devotion. The members across the branches recite a
single all-religion prayer before the start of daily activities. This prayer is a way to nullify the
cultural differences among the members.

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Marketing Strategies of Lijjat Papad

Freedom

The members/ sisters can choose to do any activity they want from making the masala to
weighing and kneading the dough etc. Since these activities are given equal importance, there
is a sense of dignity as well as choice. Each time a new branch of Lijjat opens, a neighboring
branch takes up the responsibility of training all the members of the new branch. This aims at
making each branch a completely independent and decentralized unit with no dependence on
any other branch.

Leaving the organization

The organizations principles are sacrosanct and sisters can be asked to leave if they go
against the principles of the organization. Apart from this, sisters cannot be asked to leave the
organization. The process of leaving is completely voluntary. This goes well with Lijjat’s
principle of empowerment where the member’s job is secure from any kind of external
influences.

Loans

Financial help is available to any sister for any reason. Lower middle class find this a matter
of security as well as social independence.

Accountability

The managing committee comprises of member sisters elected by common consent. The
sisters can express their intent of being part of the managing committee and can be selected
through the due procedure. Any decision is taken openly and all the sisters present that day
have to give their consent. A veto from any one of them can nullify the decision made by the
others. This gives the organization an extreme form of 360 degree feedback where the
opinion of each of the co-workers is extremely important. This also prevents the formation of
power centres.

Financial Accountability

Each sister is paid on the basis of the number of papads she rolls. With razor thin margins
of0.5 rupee per 200 gram papad pack and the absence of a credit system, all the payments are
done on a daily basis. The profits from each branch are given to the sisters in the form of
either gold or cash depending on the branch. Adding to this profits and losses are shared

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Marketing Strategies of Lijjat Papad

equally among all the sisters of the branch making it imperative to maintain quality and
production. Advertising is borne by the branches depending on each branch’s production
levels.

Enhanced self-esteem

Lijjat does not accept charity in any form to maintain its dignity as well as freedom.
However, it contributes to the needy as well to any funds collected for natural calamities.
This gives the member sisters a heightened sense of self-esteem.

4.2.4 Human Resources Development at Lijjat


Training and development is subsystem of every organisation and it helps organisation to
sustain throughout every phase of business. It is considered as a competitive edge over rival
company. So it has a great importance today in the organisation. (Companies are investing
huge amount to make their employees competent to face every change in business and meet
the requirement.)
The status of the women in SMGULP being that of sister-members automatically the
principle of HRD cannot be applied to them. The question then arises as to how organisation
discipline can be implemented/injected in the minds of these women and that too when most
of the women are illiterates? The answer has been readily worked out by the women
themselves. The actions of these women are somewhat similar to that of Honeybees, that they
collect the drops of Honey from the flowers and uninterrupted carry it to the Honeycomb.
In Lijjat too there is no one superior; no one is inferior in discharging their duties to the
organisation.
The collective efforts of the women in SMGULP are aimed at making a quality product. The
HR stipulates a collective approach in making of any efforts towards smooth functioning of
the organisation which is inculcated.
It revolves only for the members of the staff and workmen. It does not however revolve
around the owners. It has been brought in the various chapters of this research work that
women’s role in SMGULP is as an owner and not worker or work women. In the
circumstances the various aspects of HRD does not apply to the women whose study is being
undertaken under this research work.
However, certain areas where the question of maintaining quality, punctuality and
deliverances of papad are also safety in terms of food and allied areas are concern. SMGULP
has taken support of HRD and taken massive in depth training of the women, since the

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Marketing Strategies of Lijjat Papad

organisation deals with women who are semi-literate or no literacy. One of the major aspect
of HRD which is in practice by the organisation is to adhere to fundamentals such as
monetary-wise, respect wise and there is no second thought of dealing with these women.

4.2.5 Environmental Factors that affects Lijjat

General Environment:

 Social
The organization was established by a group of seven Guajarati women residing in Mumbai.
The Guajarati people are known for their inclination towards business. This along with their
need to be self-reliant was the spark that led to the birth of this organization. With the
assistance from Chagganlal Karamsi Parekh, they purchased a loss-making papad business
and converted it into a profit making business.

 Demand
The large population of Mumbai and good quality papads at affordable price were the fuel
which lit this business. The educational background of the women was not that important as
their aim was to use the cooking skills they have and convert it into a sustainable business
model. The founder sisters were very clear about what they wanted to do. The quality of
homemade papad and increasing support from the women community led to the increase in
demand of Lijjat papad.

 Technological
Lijjat has achieved huge economies of scale in the papad industry but does not use any
machines or technology. It makes hand-made papads and relies on employees for expanding
business. This has helped in increasing women employment and provided them with a steady
flow of income. With the economies of scale, Lijjat achieved high bargaining power with the
suppliers of raw materials. They have been able to get raw materials at lesser costs locally
that helps them in saving on the manufacturing costs.

Specific Environment:

 Competitors
Lijjat is the largest brand in the papad industry in the organised sector. Its nearest competitor
is Bikaneri in the organised papad industry and local papad manufacturers. But, they don’t

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Marketing Strategies of Lijjat Papad

pose a major threat as papad is not their core business. Lijjat also faces competition from
MDH and Nirma in the spices division and the detergent division respectively.

 Government
Lijjat papad is registered with Khadi and Village Industries Commission which entitles it to
the interest subsidy given by the Central Government. This helped Lijjat in growing and
expanding its business by procuring low interest rate loans. Also, Lijjat is exempt from
paying sales tax on its products but some governments stopped giving this exemption on
detergents which made it liable to pay sales tax on its Sasa detergent powder. The exemption
from paying sales tax has helped Lijjat to remain competitive in terms of prices and quality
among its competitors whereas Lijjat members are trying to persuade the governments to
again give them sales tax subsidy on the detergents also.

 Suppliers and distributors


Lijjat papad imports raw materials from various places. This ensures uniform quality of
papads. Also to get the distributorship of Lijjat one cannot do business on credit as the
members are to be paid on a daily basis. After procuring from the Lijjat centres, the
distributor is free to distribute within the given area. This helped Lijjat in maintaining cash
flows for daily business.

4.2.6 Current Trends in Papad Industry

Papad plays an essential role in the Indian diet as a quick snack or an accompaniment to a
meal. The papad is versatile because it can be made from a variety of pulses, cereals,
processed cereals, fruits and tubers. This is because the papad can be made according to the
preference of consumers at the localized business level.

A report titled “Consumption pattern of papad at household level and its availability in the
local market” by Shwetha Kamat, Nirmala Yenagi and Shobha Naganur from College of
Rural Home Science at the University of Agricultural Sciences in Dharwad gives us a few
insights into the Household consumption of papad. Key insights gleaned from the study are:

 There are a couple of national players but local brands have an advantage since they
make papads suitable to the local consumer’s palate.

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Marketing Strategies of Lijjat Papad

 The study also found that close to 50% of the respondents procured papads from retail
shops and local entrepreneurs. Thus traditional papads made in households are also a
viable business model with its own set of loyal consumers.
 The consumption pattern in the area studied was as follows:

 The major national brands used were Lijjat and MTR. Apart from this, the regional
brands also held a sizeable chunk of the market. Lijjat was consumed by 50.4% of the
respondents. Wide publicity of these brands and the wide availability of these papads
were important factors influencing buying decisions.
 Quantity consumed per person in a year:

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Marketing Strategies of Lijjat Papad

With the growing health awareness, the high amounts of salt that are present in papads may
lead to an unhealthy image. Pickles and papad are being counted as causes of rising
hypertension. Another important factor affecting the papad industry is the absence of skilled
manpower because of the presence of alternate sources of employment available to women.
There is also a threat to the industry due to the non-uniformity of the raw-materials used.
Factors like the water used for kneading the dough matter in the quality of the end product,
therefore this often leads to variance in the quality of the papad produced in different cities.
The papad industry remains a cottage industry at heart and therefore it is difficult for it to
raise funds for the installation of new technology like machines that can seal the packets for
export by pouch or cardboard packing.

What’s New? Beware of fake Lijjat Papad!

Our valued Customers particularly from USA, U.K. & other countries are hereby cautioned
that fake Lijjat Papad packets are being circulated in the Market. Genuine Lijjat Papad
packets are being solely manufactured by its 62 authorised Branches all over India which has
Mumbai Head Office Address. Fake Lijjat Papad have no Mumbai Head Office Address and
that is sure proof of they are being fake. Hence people are cautioned to ask for only genuine
Lijjat Papad packets and check the original Lijjat Trademark and photograph of a boy 'Babla
- eating papad along with Bunny Rabbit with papad in hand' before buying to get value for
your money.

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Marketing Strategies of Lijjat Papad

CHAPTER 5
MARKETING STRATEGIES

5.1 Marketing P’S- The Marketing Mix

Marketer mainly come across with four aspects; product, price, place i.e. distribution and
promotion. These constitute the core of marketing and traditionally called 4 Ps of Marketing.

What is the 4 p's of marketing?

The 4 P's of marketing (also known as the Marketing Mix Model) can be used by marketers
as a tool to assist in defining the marketing strategy. Marketing managers use this method to
attempt to generate the optimal response in the target market by blending the variables in an
optimal way. It is important to understand that the Marketing Mix principles are controllable
variables. The Marketing Mix can be adjusted on a frequent basis to meet the changing needs
of the target group and the other dynamics of the marketing environment.

Product Historically, the thinking was: a good product Functionality;


will sell itself. However there are no bad
Quality;
products anymore in today's highly competitive
markets. Therefore the question on product has Appearance;
become: does the organization create what its
Packaging; Brand;
intended customers want? Define the
characteristics of your product or service that Service; Support;
meets the needs of your customers.
Warranty.

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Marketing Strategies of Lijjat Papad

Price How much are the intended customers willing to List Price;
pay? Here we decide on a pricing strategy - do
Discounts;
not let it just happen! Even if you decide not to
ask (enough) money for a product or service, Financing; Leasing
you must realize that this is a conscious decision
Options;
and forms part of the pricing strategy. Although
competing on price is as old as mankind, the Allowances.
consumer is often still sensitive for price
discounts and special offers. Price has also an
irrational side: something that is expensive must
be good. Permanently competing on price is for
many companies not a very sensible approach.

Place Available at the right place, at the right time, in Locations; Logistics;
the right quantities? Some of the recent major Channel members;;
changes in business have come about by Market Coverage;
changing Place. Think of the Internet and Service Levels
mobile telephones.

Promotion (How) are the chosen target groups informed or Advertising;


educated about the organization and its
Public Relations;
products? This includes all the weapons in the
marketing armory - advertising, selling, sales Message;
promotions, Direct Marketing, Public Relations,
Direct Sales;
etc. While the other three P's have lost much of
their meanings in today's markets, Promotion Sales; Media.
has become the most important P to focus on.

The function of the Marketing Mix is to help develop a package (mix) that will meet the
above-mentioned cardinal goals of satisfying the needs of the customers and maximising the
profit of the organization. The concept, strategies and application of these Ps of marketing
individually and in an overall manner will be dealt in following sessions.

5.1.1 PRODUCT

What is a product?

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Marketing Strategies of Lijjat Papad

Product is an important mix of marketing and this is something which entrepreneurs need to
have to do a business. A business exists because it has some product, service, or idea to offer
consumers, generally in exchange for money. A product is anything that can be marketed and
meets needs of customer. For many products strong symbolic features and social and
psychological meaning may be more important than functional utility. Advertising plays an
important role in developing and maintaining these brands.

Key Product Decisions

When placing a product within a market many factors and decisions have to be taken into
consideration. These include:

 Branding
 Packaging
 Labeling
 Product features

How will your product or service benefit the customer? Remember that benefits can be
intangible as well as tangible; for instance, a processed food, brainstorm as many benefits as
possible to begin with, and then choose to emphasize the benefits that your targeted
customers will most appreciate in your marketing plan.

Branding

Branding is major strategy in a product strategy. A brand is a name, term, sign, symbol, or a
design or the combination of them, intended to identify the products or services of one seller
or group of sellers and to differentiate them from those of competitors. Thus the brand
identifies the seller or marker. Under the trademark law the seller is granted exclusive rights
to use the brand name in perpetuity. Brand differs from others assets like patents and
copyrights, which have expiration dates. Ultimately the brand resides in the minds of the
consumers.

Packaging and Labeling

Packaging implies all the activities of designing and producing the package for a product.
Nowadays, many factors are contributing to the growing use of packaging: like Self-service,
company and brand images, innovation for consumers. Apart from branding, products need to
be labeled.
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Product Strategies

When an organisation introduces a product into a market they must ask themselves a number
of questions.

 Who is the product aimed at?


 What benefit will they expect?
 How do they plan to position the product within the market?
 What differential advantage will the product offer over their competitors?

We must remember that Marketing is fundamentally about providing the correct bundle of
benefits to the end user, hence the saying “Marketing is not about providing products or
services; it is essentially about providing changing benefits to the changing needs and
demands of the customer”.

Thus product planning involves decision not only about the item itself such as design and
quality but also aspects such as service and warranties, brand name and package design. All
the above aspects are coordinated to present an image or positioning of the product that
extends well beyond its physical attribute. Are not even mentioned most of the times yet the
information about the product is communicated effectively.

Lijjat Papad: Delivering Quality

Following is the quality system in Lijjat Papad as explained by Smt. Jyoti Naik, Former
President, Shri Mahila Griha Udyog Lijjat Papad (SMGULP).

We proudly claim 'consistently good quality' to be our USP. From the moment a new member
joins, she is repeatedly told to make quality her mantra. At the training session, BENS are
taught to make the 'perfect' Lijjat papad. And every member has absorbed the concept totally.
[Working lady in SMGULP organisation is denoted as ‘BENS’ or ‘BEN’. It means sister]

It is evident in the fact that even without modern machines, every consumer of Lijjat papad,
wherever she is, gets the same consistent quality of papad. How? Because every BEN rolls
the papad to the same specification and every lot of papad goes through testing.

If we find any BEN becoming careless about quality, we do not tolerate it. We give her a
warning, then the option to take up any other work like packaging, testing, etc. and if she still
displays a lack of concern for quality, we ask her to leave the organisation.

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Marketing Strategies of Lijjat Papad

Out of one kg dough, we must get at least 800 gm. (accounting for loss due to moisture, etc.),
otherwise we cut pay. We get papads for testing from all centres every day and if we find any
deviation from our quality, for example, if the salt is less or more, etc., we immediately
intimate that particular centre to destroy the entire lot, even if amounts to a million rupees
worth of production.

Out of this strong belief in quality delivered at an affordable price comes our act of ignoring
competitors. Lots of companies selling papads have come and gone. We don't consider them;
we only do our own thing. We do not take into consideration what the competition is doing.

We know that if our quality is good, consumers will buy. Our quality does not differ whether
it is for exports or for the local market. There is just one quality. And that's good quality.
Again and again and again!

5.1.2 PRICING

Price, the amount of money that an entrepreneur charges for a product or service, is a very
specific P of all marketing Ps for two important reasons. It is the most flexible P of all
marketing Ps and it is the only element in marketing mix that produces revenue; all other
elements represent costs

Importance of Pricing

1. For any enterprise, price is highly important in view of following aspects.

2. Price is a very important determinant of revenue.

3. This is generally the first aspect that consumer see in making a buying decision.

4. This is also the most important aspect of competitive advantage and dealing with
competition.

Price, Cost & Value

Along with price, cost and value are the two aspects that an entrepreneur generally comes
across. Even these three are interrelated, most of the times; entrepreneurs think one in place
for other of these three aspects and not differentiate them. So, it is utmost important that
entrepreneurs understand the meaning and differentiate among price, cost and value.

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Price, as mentioned above, is what an entrepreneur set to charge from customer. Obviously,
the price should at least cover all costs (fixed and variable; direct and indirect) i.e. breakeven
and start making profits.

Unit cost = VC+FC/unit sales = 16 [VC=Variable cost, FC=Fixed cost]

 Assuming that the business achieved breakeven volume of sales (i.e. all fixed costs
are covered), so as to have a profit margin of 20% and based on competition, the price
can be Rs.20.
 This generates an operating profit (profit before taxes, depreciation etc.) of Rs.4 per
unit sold.
 In fact, price means following for a seller and buyer involved in an exchange:

A) Buyers’ View – price refers to what money must be given up to obtain benefits (of
course, to fulfill a particular need)

B) Sellers’ View - price reflects the revenue generated for each unit of product sold and,
thus, is an important factor in determining profit (to fulfill the goal of the business).

 So, as far as the value is concerned (which most entrepreneurs are not
concerned!), it can be noted that only price by itself is not the key factor
customers consider when purchasing a product. This is because of the following
reasons.
 Customers compare the entire marketing offering and not just product’s price
 The perceived bundle of benefits that a product offer may also be different from
marketer’s point of view (refer to customer satisfaction and product utility from
previous sessions).
 Even if price is reasonable, the product may not be available in right time and
right place
 Advertising and product promotion greatly influence customers buying decisions.
 Remember, value is the perception of the consumer and not necessarily rational
and objective. In fact, most of the times, non-price factors like prestige,
psychological, celebrity etc. operate. Thus, the perceived value differ from
consumer segment to segment, from product to product and from time to time for
the same product. Sometimes, customers may value the product less than the set

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price also. Thus, while making pricing decisions, marketers should also consider
the value from customer’s point of view.

Thus, Value refers to the perception of benefits received for what consumer must give up.
Since price often reflects an important part of what someone gives up, a customer’s perceived
value of a product will be affected by a marketer’s pricing decision.

Value =

Just like marketers are profit maximisers, customers are value-maximisers. Particularly, in
this era of plethora of offerings, they choose those products, which offer them maximum
value.

Pricing Approaches

The price a business charge will be somewhere between one that is too low to produce a
profit and one that is too high to produce any demand.

Low price-No possible profit at this price – product costs – competitors’ prices and other
external and internal conditions – consumer perceptions of value – high price no possible
demand at this price.

Product cost set a floor to the price; consumer perceptions of the product’s value set the
ceiling. An enterprise must consider competitors prices and other external and internal factors
to find the best price between these two extremes.

Following are main approaches evolve for price setting:

 Cost-based
 Buyer-based (perceived-value pricing) and
 Competition based
 Cost-based Pricing

In this approach, cost is taken as basis for setting price. In this, one simple method is cost-
plus pricing i.e. adding standard markup to the cost of the product.

For example, if producers want 20% profit, then the unit cost has to be marked up by 20%.
Thus the price per unit will be

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Unit cost / (1-desired return on sales) = 16/1-.2= Rs. 20

Value-Based Pricing

This means setting price based on buyers’ perceptions of value rather than on the seller’s
cost. This is one of the most common methods for setting price, and the one that seems most
logical given marketing’s focus on satisfying customers.

In the above example, the producers may find by thorough market research that some
segments of consumers perceive higher value for the product (by reasons like quality, ready-
to-eat, availability etc.) and willing to pay Rs. 22 per pack (which is higher than the cost-plus
price of Rs.20).

Competition Based Pricing

Pricing Decisions, how competitors price their products can influence the marketer’s pricing
decision. Clearly when setting price it makes sense to look at the price of competitive
offerings. For some, competitor’s price serves as an important reference point from which
they set their price. The pricing strategy aim at competitive prices but still allow you to make
a reasonable profit.

When basing pricing decisions on how competitors are setting their price, firms may follow
one of the following approaches:

 Below Competition Pricing - A marketer attempting to reach objectives that require


high sales levels (e.g., market share objective) may monitor the market to insure their
price remains below competitors.
 Above Competition Pricing - Marketers using this approach are likely to be perceived
as market leaders in terms of product features, brand image or other characteristics
that support a price that is higher than what competitors offer.
 Parity Pricing - A simple method for setting the initial price is to price the product at
the same level that competitors price their product.
In the above case of unit, suppose there are two other similar units in the location, unit
A offering Rs. 20 per unit and unit B offering Rs. 21 per unit, then what price this unit
sets is an important marketing decision. This also depends on the kind of pricing
decision that the marketer adopts.

Pricing Strategies

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Another important consideration in pricing part of marketing is what pricing strategy to be


adopted. The level of price is also determined by the kind of pricing strategy. The strategies
vary as per context, competition, product stage etc. Following are some important strategies
regarding pricing.

Price-Quality Strategies

Price-quality relationship is an important aspect in any enterprise. What combination of price


and quality is an important marketing decision? One important point to keep in mind is that
quality involves cost. The idea is not to offer maximum possible quality for the consumer
rather the quality that the consumer can afford and at which the business generate profit.

Segmented Pricing

This strategy involves selling a product or service at two or more prices to different consumer
segments, even though the difference in prices is not based on the difference in costs. For
example, no charge for the poor (white card holders) and service charge for others in
government general hospitals.

Promotional Pricing

This is pricing products temporarily below the list price, and sometimes even below the cost,
to increase short-run sales.

5.1.3 PROMOTION & PLACE

Place & Promotion Strategies

Refers to how an organisation will distribute the product or service they are offering to the
end user. The organisation must distribute the product to the user at the right place at the right
time. Efficient and effective distribution is important if the organisation is to meet its overall
marketing objectives.

What channel of distribution will they use?

Two types of channel of distribution methods are available. Indirect distribution involves
distributing your product by the use of an intermediary. Direct distribution involves
distributing direct from a manufacturer to the consumer.

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5.1.4 LIJJAT PAPAD: DISTRIBUTION CYCLE

Smt. Jyoti Naik, Former President, Shri Mahila Griha Udyog Lijjat Papad explains how the
system works -

 The entire cycle starts with a simple recruitment process. Any woman who pledges to
adopt the institution's values and who has respect for quality can become a member
and co-owner of the organisation.
 In addition to that, those involved in the rolling of the papads also need to have a
clean house and space to dry the papads they roll every day. Those who do not have
this facility can take up any other responsibilities, like kneading dough or packaging
or testing for quality.
 Packed papads are sealed into a box (each box holds 13.6 kg) and the production from
each centre is transported to the depot for that area. Mumbai alone has sixteen
branches and six depots. Each depot stocks production from the nearby three to four
branches -- roughly about 400 boxes.
 In some smaller towns or villages, the branch itself serves as the depot. The depots are
our storage areas as well as pick up points for distributors.
 Our distributors pick up the quantity of papad they require and pay cash on delivery
because we pay our BENS (members are called BENS, or sisters) every day. Since we
have an estimate of the quantity each distributor takes, we produce accordingly. This
ensures that we neither stock inventory nor pay heavily for storage.
 We have about 32 distributors in Mumbai. Each distributor picks up an average of
100 boxes per day from the depot. This is where our job ends. We are not involved in

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how and where a distributor delivers as long as he stays within the area we have
marked for him.
 Generally each distributor has his three-wheeler and about eight to ten salesmen to
deliver to retail outlets within his territory.
 To select a distributor, we first give an advertisement in newspapers for the areas we
have marked. Members from our marketing division personally go and check the
godown facilities and only on their approval do we appoint distributors.
 A distributor pays us Rs 1,50,000 as deposit. We make it clear to them that they must
pay on delivery if they want our distributorship. This system is followed all over India
and it works well for us.
 When we discover that there is demand in a particular place, we open a new branch,
like the recently opened one in Jammu and Kashmir. Whether or not we have a centre
in an area, our goods reach there.
 For example, we do not have any centre in Goa, but we have appointed a distributor
for that area to ensure that Lijjat papads reach Goa. Our communication with
distributors is regular through monthly meetings where we discuss their problems and
also the issues that we may have about quality, price, reach, etc.
 We do not have individual door-to-door salesmen or women selling from homes --
only the appointed distributor for the area. The same system is followed for other
products, but we may have different distributors and depots for different products.

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5.2 ADVERTISING: Lijjat’s Popular “Karram Kurram” Ad Jingle

A jingle is a short song or tune used in advertising and for other commercial uses. The jingle
contains one or more hooks and meaning that explicitly promote the product or service being
advertised, usually through the use of one or more advertising slogans.

Memory is a very tricky thing. We may remember some things and no other, less pleasant
experiences. On the one hand, I know that what I remember is not exactly how life was in the
past. On the other hand, I cannot doubt the truth of this memory.

Everyone loves a great radio or TV commercial jingle. The best jingles become ear worms.
You just can’t get them out of your head. Advertising jingles are musical techniques
businesses use to establish a brand in a memorable, entertaining way. A jingle relays
information about a company or product through music and lyrics. Small businesses hire
jingle writers to create tunes, or they ask creative team members to produce a jingle.

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Ad jingle is really beneficial and most important thing for any company’s branding strategy.
You can Listen here Lijjat Papad”Karram..Kurram” Ad Jingle Tune for your Inspiration
.While your business may be extremely professional and important, choosing a musical
genre that your target audience can attract more attention. The message to music is
remembered easily, while Ad jingle that describe what your company does sound like all the
rest.

Featuring 2 huge rabbits munching pappads…

LIJJAT PAPAD…KARRAM KURRAM…KURRAM KARRAM…MAZEDAAR


LIJJATDAAR…SWAAD SWAAD MEIN LIJJAT PAPAD…HEHEHEHE….SRI MAHILA
GRIH UDYOG KA LIJJAT PAPAD.

5.2.1 Lijjat Papad’s Kharram Khurram ad is one of the most famous


advertisements on Indian television

Imagine you are in the late seventies in India. Commercial television ads are just beginning to
become popular. Indeed colour television itself is not in India (it went mainstream in 1982,
thanks to the Asian Games, remember?) And you are a part of this co-operative started by a
few Gujarati women in Mumbai with a loan of Rs 80. You want to advertise the most Indian
snack. Something that no one imagined could be a branded product, let alone advertised. You
are literally on a shoestring budget, ruling out celebrities and fancy sets. So what do you do?

You get a puppeteer and ventriloquist, head to a bungalow in Mumbai, and bring out the most
Indian, the most commercial, ad-like ad ever. And achieve the brand manager’s ultimate
dream – of making a regular product a brand. We are talking of perhaps one of the most
famous advertisements on Indian television – Lijjat Papad’s Kharram Khurram ad.

Some folks, some papad and…well, a puppet

The ad starts with a group of people in a setting that looks like a garden tea party, enjoying
some papad. Sitting with them is a rabbit puppet (which was then the mascot of the
company). The setting then changes, and shows a family devouring a pile of papad while
playing cards, and then shows how you can fry or roast papad, depending on your preference.
These clips are interspersed with shots of the product. And right through the ad, the rabbit
puppet keeps singing a jingle, interspersed with giggles and funny noises:

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Marketing Strategies of Lijjat Papad

“Chai coffee ke sang khaayein

Kharram khurrram

Khurram Kharram

Mehmaon ko khush kar jaye

Kharram Khurram

Mazedaar, lazzatdaar

Swaad swaad mein lijjat papad

Jab hi chahein

Shauk se khayein

Sek ke khayein

Tal ke khayein…

Khurram Kharram

Mazedaar, lazzatdaar

Swaad Swaad mein Lijjat papad…”

Translation:

(Eat it with tea and coffee

Kharram Khurram

It pleases the guests

Fun filled and full of taste

Delicious and taste filled Lijjat Papad

Eat it whenever you wish

Eat it fried

Eat if toasted

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Delicious and taste filled Lijjat Papad

Kharram Khurram…)

The ad ends with just the rabbit holding a papad in each of its paws, and repeating the main
lines of the jingle, along with what seems to be a very puppet-like giggle. The sets are very
basic as are the production values. There is no undercurrent or subtle messaging. It is just a
lot of people eating papad in different forms. Oh, and there is a rabbit puppet with them!

The settings are very Indian and very mainstream. There are no aspirational connotations.
The ad stresses how the product can be enjoyed by just about anyone, irrespective of gender
and age. It also shows you how to prepare the product. And the jingle is not just catchy but
also keeps stressing how crisp the product is – the words “kharram, Khurram” reflect the
crispy nature of the product.

The ad-dest ad ever

There are ads that sneak up on you, tip-toe and whisper the message in your ear “buy our
product, our product is amazing”. This Lijjat Papad ad is nothing like that. The ad strides up
loud and proud right in your face and tells you not only how good it is but also how you can
eat it and when you can eat it. This is advertising at its most raw and basic. There are no
fancy storylines, no celebrities, no subtle messaging, just a bunny with a bunch of very
normal looking people telling you to snack on papad all the time. All in about half a minute.

Unlike most TV commercials, where the jingle often plays second fiddle to the visuals (or at
the most is on par with it), here the “kharram khurram” jingle is actually the backbone of the
ad. The visuals would not speak to you if the jingle did not exist. On the other hand, the jingle
could exist independently even without the visuals – and it was actually used independently
on the radio (which was a big thing in those days, when televisions were not as omnipresent
as they are right now) as well, and made perfect sense.

The puppet factor

The puppet’s (some would call it a muppet) presence was interesting – it did not fit into any
of the scenarios naturally. No family has a human sized rabbit advocating papad! The ad
would have made perfect sense even without the bunny – it could have just very easily shown
different families enjoying Lijjat Papad and it would have seemed like the most natural thing
ever. And yet the puppet gave the ad a much required quirky touch. Without it, this could

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have very easily been just another ad. The amazing thing, however, is that the puppet just
seemed to fit in, seeming as much of a part of the ad as anything else, in spite of its funny
voice and giggles.

Having a celebrity or animation instead of the bunny would have made the ad glamorous or
upmarket which is not where the brand aimed to be. It wanted to be a part of Indian
household routine with this ad. Its aim was not to make the product look desirable, but to just
make it appear accessible, homely and delicious. And it succeeded in doing just that. The ad
made Lijjat synonymous with papad. It became iconic without trying to be so. It used the
most normal (almost “humble”) elements and still went on to become one of the most
effective advertisements of all time.

It was simple, direct and its use of the bunny allowed the brand to add an element that
grabbed attention even while not distracting people from the product. A key part of the ad
was just how utterly Indian it was – there was no animation, even the puppet and the way it
spoke sounded very Indian. The Kharram Khurram ad is about papad, a product that everyone
knew and was so much a part of everyone’s lives that no one could have associated a brand
with it. The ad, however, managed to do just that. Without spending too much, Or using a
fancy storyboard, Or celebrities. It did so by being utterly simple and direct. And with a little
help from a catchy jingle and a puppet.

A product of its time

Unlike the other ads in this series, we can safely say that the Lijjat Papad ad has not aged that
well. The jingle might make sense to a lot of people, simply because it pushes a nostalgia
button in their minds. But we do not think that the same ad would have struck a chord with
the audience of today. The visuals seem dated and the puppet would have inspired a million
memes and while the jingle is informative, it lacks the refinement and rhythm that are the rule
in ads these days.

Yes, the kharram khurram ad was a product of its times and very appropriate for them. It
came out at a time when audiences were not used to elaborate advertisements and jingles
were a big thing (they are not as popular right now). Would the same thing work today? We
are not too sure but then it did outstandingly well in its time and that too, on a totally
shoestring budget! And it did so by being simple and direct, and adding some levels of very
basic entertainment. The ad is a tribute to sheer simplicity – there is no nuance, just the

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message that papad is delicious, you can make it very easily and you can have it at any time –
whether when out with friends or just at home.

There are many Indian snacks. But few if any have been able to be associated as closely with
a brand as Lijjat has with papad (perhaps Haldiram with Bhujiya). You do not have a branded
samosa, kachori, fafda or a rasgulla. But say papad and you can be reasonably sure that
someone will mention “Lijjat”.

And Khurram Kharam too.

5.2.2 Ad-advantages: Key takeaways

Keep it simple

The biggest strength of the Kharram Khurram ad is its sheer simplicity. It is very direct, and
has a simple straightforward message. Some would find it almost too simple but we think that
is actually its strength. Yes, there is a bunny puppet singing in it but even its song is
incredibly simple and easy to understand – even if you do not know Hindi (the language in
which the original ad was shot).

Make the jingle count

The Kharram Khurram jingle of the ad is remembered to this day. Many people might not
remember the ad itself, but they do remember the jingle accompanying it. There are not too
many ads that have managed to be able to do that – the music and singing (if any) is often
relegated to the background.

Make the product the hero

There is no mistaking what the ad is about. From the beginning to the end, it is about papad,
papad and more papad. Everything else is secondary.

Keep space for quirkiness

It might be simple, but the ad has its quirky moments – the use of the words Kharram
Khurram, the strange sounds of the bunny puppet and of course the presence of the puppet
itself. These elements enabled the ad to stand out from the crowd even while not detracting
from its essential simplicity.

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5.2.3 Some Ad-additional facts

The man behind the puppet

The bunny puppet was managed and “voiced” by Ramdas Padhye, a ventriloquist in Bombay.
He was a well-known puppeteer. The story goes that Ramdas Padhye was performing a show
in a five star hotel, when he was spotted by a person associated with the Shri Mahila Griha
Udyog Lijjat Papad, which made Lijjat Papad. He asked Ramdas if he could work on an ad
for the product. Ramdas thought it was a small inconsequential ad. The rest as they say is
history!

The puppet was not supposed to be in it

The ad was initially supposed to feature members of a typical middle-class Maharashtrian


family. However, when it did not seem to be working out, Ramdas suggested that the ad
include a “cute” animal eating papad, and making funny noises. It worked!

The birth of Kharram Khurram

When Ramdas proposed that the puppet make funny noises, he was asked for a sample. He
evidently just said “Kharram Khurram” off the top of his head. Everyone loved it.

Who made the ad, where was it made

While we could find no official information on the agency behind the ad, soon after this story
was published we were informed that Appi (Appasaheb) Umarani, a freelance ad filmmaker,
was behind the ad. The film was shot at a Bungalow in Juhu, his family said in a mail sent to
Indianexpress.com. It was Umarani who discovered Padhye, the mail said.

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CHAPTER 6
ENVIRONMENT ANALYSIS:EXTERNAL & INTERNAL
 EXTERNAL ENVIRONMENT ANALYSIS

The external environment analysis is needed for the SMGULP to make sure that it actively
and proactively responds to the macro-environment. The macro-environment or the external
environment for the SMGULP need to analysed. This Business cannot influence these factors
in its favour, and in contrast, these factors directly affect the operations and workings of the
company.As a result, SMGULP must make sure to continually assess and review the external
environment to make sure that it responds to external factors, and take them into account,
during strategic decisions, and strategy devising. Businesses like Shri Mahila Griha Udyog
Lijjat Papad Business make use of strategic model tools continually to make sure that they
are aware of the external environment. These include tools like

I. Pestel Analysis

II. Porter’s Five Force Model

III. Pentagonal Analysis

IV. PLC Analysis

V. Strategic Group Analysis

The external analysis for the SMGULP will assess and will apply the strategic models and
tools to review the business environment for the company.

I. PESTEL Analysis:

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Marketing Strategies of Lijjat Papad

A. Political

Political factors and elements can have a direct and indirect impact on the business. This is
seen through:

 Policy Makings

Policymakers for the SMGULP are in all likelihood to intervene in the business surroundings.
Commercial restrictions and political stability are additionally integral factors that will
determine the success or failure of SMGULP.

 Taxation

Tax policy will influence the cost of doing business for SMGULP. An increase in
organization taxation (on business profits) has a similar impact as an expansion in expenses.
Organizations can pass a portion of this increase on to shoppers in more expensive rates, yet
it will likewise influence the bottom line of the business.

 Government Support

The government helps organizations in two primary ways: monetary help and regulatory.
SMGULP can use government assistance and grants for purposes of growing the business,
advancement, exporting, and innovative work. It can also be impacted by when Governments
modify regulations and laws.

 Political Stability

Lack of political stability in a country impacts business tasks. Political stability is particularly
essential for the organizations which work globally, such as SMGULP. A forceful takeover
could oust a legislature. The takeover could prompt mobs, plundering and general issue in
nature. These disturb business tasks. Purchasing political risk insurance is a way for
SMGULP to oversee political hazard. Organizations that have worldwide activities utilise
such as insurance to lessen their risk presentation. The soundness of a political framework
can influence the attractiveness of a specific nearby market for Lijjat Papad.

B. Economic

The economic factors are one of the most important of PESTEL factors and can influence
Shri Mahila Griha Udyog Lijjat Papad in several ways.

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 GDP

Economic components have the most evident effect on the profitability and overall appeal of
SMGULP. Even though GDP per capita is a useful economic factor, GDP per capita gives
just a fractional perspective on the economic factors that may influence SMGULP. Higher
GDP leads to higher disposable income and hence higher sales for SMGULP.

 Inflation

Higher inflation will disintegrate the purchasing power of the consumer and the shopper.
Higher inflation will also harm the costs of raw materials and other inputs that are utilised by
SMGULP.

 Interest Rates

Fluctuations in interest rates may translate into higher or lower costs for the purchase or sale
of items and administrations provided by SMGULP. Higher interest rates hurt the disposable
cash of consumers.

 Unemployment Rate

A high unemployment rate is also unadvisable as it dissolves dispensable income of


consumers, and will harm SMGULP position.The high unemployment rate will lead to lower
sales for SMGULP and impact its overall profitability and revenues.

 How can the SMGULP decrease the risk of economic instability?

SMGULP can work towards building economies of scale. Maintaining business costs and
controlling the final price of the product can also help SMGULP fight economic instability.
SMGULP can also work towards building a sustainably managed workforce.

C. Social

Social influences will stem from social components of the macro environment. Under the
PESTEL Analysis, they can influence SMGULP in several ways:

 Social patterns and consumer behaviour

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Social patterns affect work trends and patterns and are directly related to the behaviours of
consumers. Social patterns also have a direct influence on buyer tastes and inclinations, and
the specific kind, structure, and volume of interest for an item or service.

 Social patterns and changing consumer needs

The checking of social patterns will enable Shri Mahila Griha Udyog Lijjat Papad to
reposition its items or administrations to meet the changing desires and needs of consumers.

 Social trends in education

Social trends of higher education have allowed firms like Shri Mahila Griha Udyog Lijjat
Papad to have access to a pool of higher skilled talent – but at the same time, also face a more
criticising consumer base. Higher education has also made consumers more aware of
different product offerings by companies like SMGULP. Consumers are also more educated
and knowledgeable of different substitutes of a product, as well as become more readily
available at different touch points.

 Social patterns make companies more consumer-centric

Companies like Shri Mahila Griha Udyog Lijjat Papad are expected to become more
consumer-centric than product-centric. Similarly, Market segmentation and consumer
grouping are dynamically moving towards measures of psychographics and lifestyles to
understand the consumer more.

 How can Shri Mahila Griha Udyog Lijjat Papad use social aspects for growth?

Use consumer-centric means of segmentation and targeting. Use consumer-oriented and


consumer-based marketing – which use emotional appeals to influence consumers. Make
products more accessible at different touch points common to target consumers socially.

D. Technological

The technological factors can influence SMGULP in several ways:

 Innovation

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The quick pace of technological change at SMGULP may be driven through innovation.
Business leadership at Shri Mahila Griha Udyog Lijjat Papad tries to push the limits of
present limitations.

 The advent of the internet and online retailing

The expansion of the Internet and online business has discarded many intermediaries.
SMGULP can communicate and retail directly to the consumers now or through modern
intermediaries such as eBay, amazon as well, for example. SMGULP may also use current
social networks to retail and use e-commerce to boost sales.

 Social media and business growth

Shri Mahila Griha Udyog Lijjat Papad can make use of social media to interact and reach
with consumers. Social media can also be used to reach the target market audience more
effectively. Social media is cost-effective and strategically more influential for SMGULP.

 Improved value chain network

For SMGULP, technological innovation can be utilised to build on competitive advantage


through several different ways. SMGULP can incorporate less expensive production,
improved access to clients, improved marketing, improvement in product quality, and
increased levels of business intelligence than the competition.

 Managing technology and the future for SMGULP

To flourish in a business world that is quick paced and receptive to innovative change,
SMGULP must stay cautious. It must be always be updated on any technological
developments in the business and industry. SMGULP should weary of how the company are
probably going to influence its future attractiveness and profitability.

E. Environmental

For Shri Mahila Griha Udyog Lijjat Papad, the environmental aspects of the PESTEL
analysis may include:

 Environmental stability and business standards

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SMGULP may be expected to incorporate maintainability standards into their business


methodologies and to help resource allocation choices. SMGULP may also be subject to
environmental laws – which will impact and guide its operations to become more
environmentally friendly.

 Environmental stability and budget allocation

Leadership in the Shri Mahila Griha Udyog Lijjat Papad must measure the connection
between natural activities and budgetary execution. SMGULP also strategically decides and
assesses if the organization have been estimating the monetary effect of natural and social
activities.

 Environmental sustainability

Shri Mahila Griha Udyog Lijjat Papad also distinguishes and differentiates explicit zones of
concern and impediments to the coordination of environmental sustainability into corporate
performance and strategy. SMGULP also gives explicit direction concerning how
organizations can push toward a superior reconciliation of ecological and social activities in
their basic leadership procedures and tasks.

 Environmental sustainability and business growth

SMGULP may use environmental issues to adjust financial, natural and social performance.
Concerns towards the environment will enhance the business image for SMGULP.
Environmental sustainability within business goals and strategy will also reflect corporate
responsibility on the part of SMGULP.

 Environmental sustainability and improved consumer relations

Consumers will be more inclined towards the use of environmentally sustainable products.
Environmental sustainability in operations works towards improving the bottom line and
overall profitability for the business of SMGULP. Improvement of cost management and
operations will be observed in the business as well.

F. Legal

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Legal components can influence SMGULP directly, and can likewise influence the
instruments through which an organization buys its stock or connects with the client. The
SMGULP should be mindful, for example, of the following legal aspects:

 Labour law

Labour law refers to the guidelines in regulations that set up minimum and benchmark
conditions. These include identifying with the work of people. Labour laws include aspects of
minimum working age, least time-based compensation, etc. SMGULP must be mindful of
these laws in routine business tasks such as hiring, for example.

 Discrimination law

Under the discrimination law, SMGULP must ensure to avoid episodes of unequal or
uncalled for treatment based on an individual's age, inability, sex, national source, race,
religion, and sexual orientation. SMGULP should train its human resource management team
in ensuring that there is no:

Unequal hiring

Discrimination in recruitment

Internal discrimination in talent management

Bias in training opportunities

Unfair compensation systems

Prejudiced promotions and succession management

 Health and safety laws:

Under this, SMGULP is required to give a protected work environment to their workers.
Working environment security and wellbeing laws build up guidelines intended to dispense
with individual wounds and injuries from happening in the work environment. All operations
of SMGULP should be designed to physically and emotionally safeguard and protect the
employees and the labour force employed.

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II. Porter’s five forces:

The five forces identified in Porter's model can effect Shri Mahila Griha Udyog Lijjat
Papad’s ability to serve its clients and make a profit. A change in any of the five forces may
regularly require a business unit from SMGULP to reassess the market place given the
general change in industry data and dynamics. The general industry appeal and attractiveness.

SMGULP should apply and centre their skills, plan of action or business models to
accomplish profits above the business average. This may be done in multiple ways, each
distinguished in their application to the forces individually as is elaborated below:

A. The threat of new entrants

 Market and industry share

New entrants to an industry bring new potential and a choice to increase the market share and
overall share of the pie that puts pressure on price, costs, and the investment price essential to
compete. For SMGULP, particularly while new entrants are diversifying from different
markets into the chief industry, they will be able to leverage existing talents and cash flows to
shake up the opposition.

 Limitation on earning expectation and capability of firms in an industry

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The threat of entry in the industry, consequently, puts a cap at the earning capacity and profit
capability for SMGULP. While the threat of new entreaty is high, SMGULP should maintain
their prices or increase funding and investment to discourage new competition.

 The risk to new entrants because of high entry barriers

The risk of entry in an industry depends upon on the peak of entry barriers and limitations
that are a blessing for players such as SMGULP and on the response that new entrants can
count on from existing players. If entry barriers are low and novices count on little retaliation
from the entrenched competition, the chance of entry is high, and profitability for SMGULP
will be moderated. It is the danger of entry, not whether the entry of new players takes place
that holds down profitability.

 Some barriers to entry for new entrants in favour of SMGULP :

Capital requirements: a strong barrier to entry as new entrants will require strong financial
and resource cushioning for operations to take off and be sustained.

Economies of scale: a strong barrier to entry as existing players in the industry operates with
high economies of scale, which new entrants will take time to achieve.

Product differentiation: the strong barrier of entry if products within the industry have high
levels of differentiation on which they operate and approach customers.

Access to distribution: a standard barrier to entry since new entrants will have equal access to
the retailers and distributing agents within the industry.

Customer loyalty to established brands: a strong barrier to entry since customer loyalties and
perceptions are emotionally built and strongly enforced as long as the brand continues to
deliver on its core promise and quality.

 What can Shri Mahila Griha Udyog Lijjat Papad do to face this challenge?

Build and invest in marketing to distinctly establish a point of differentiation in customer


perception as well as strengthen customer loyalty. Invest in research and development to
make sure that it continues to have competitive differentiation from other players at all times.
Focus on building economies of scale in production and sales.

B. The threat of substitute products or services

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 Substitute form

There are always different alternatives or substitutes for various products that lead an
industry. These substitutes may be direct or indirect– the direct substitutes are the same
category products, produced by different players; indirect substitutes are the ones from
different product categories that can replace the product for SMGULP.

 Switching cost to substitutes for consumers

Switching costs for direct substitutes is not very high for consumers. The per-unit-volume
prices may be higher or lower. This makes the threat of substitute high.

 Substitute and product benefit

Alternatives to the product or substitutes may not be able to provide the same benefits. May
often lead to additional costs incurred. Switching costs towards alternatives becomes higher,
and consumers may not switch to substitutes. This, in turn, will make the threat of substitutes
low.

 Substitutes and consumer behaviour

From the point of view of the consumer, there are some differences between the ways
different products of the same or similar category are used, but many consumption decisions
are a matter of personal taste - this makes products vulnerable to the threat of other
substitutes. Overall, the threat of substitutes is assessed to be moderately high.

 How can SMGULP combat the threat from substitute products?

Focus on delivering consistently high quality. Focus on maintaining strong consumer


relationships. Integrate strategic marketing to form an emotional connection with the
consumers and strengthen consumer loyalty. Invest in pop up stores owned by the company
to stock the SMGULP brand exclusively, and integrate it with brand characteristics and
personality to attract consumers.

C. Bargaining Power of Buyers

 Who is the buyer?

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The buyer for SMGULP is not necessarily the group that consumes the product – but rather
refers to the group of customers that purchases the product from SMGULP to either distribute
further, retail it, or even consume it. Hypermarkets and supermarkets, as well as independent
retailers and distribution agents to end consumers, are the core buyers for SMGULP that
make up the market’s volume. Supermarkets and hypermarkets, along with many food chains
that are concentrated which increases the buyer power. Products are stocked with buyers and
retailers by SMGULP based on consumer demand.

 Buyer power and costs

SMGULP will not experience switching costs for switching buyers. Multiple product
offerings by buyers also increase buyer power.

 Retail product differentiation

Products offered by retailers are differentiated based on several characteristics – not only
reliant upon product characteristics but also consumer segment characteristics. Because of
this, retailers are expected to offer a wide range of the same product category. This works
towards negating and weakening the overall buyer power. Buyer power is assessed to be
moderate to high.

 What can SMGULP do to ensure risks against high buyer power?

SMGULP can focus on differentiating its product and increasing its demand with the end
consumers through different marketing tactics, this will increase the demand of the product
with different buyers, and will work towards moderating buyer power. SMGULP should
employ economies of scale to manage costs of production. If it offers products at moderate
prices to buyers, it will again be able to attract a large number of buyers for its product, and
in this way, will be able to break off the high bargaining power.

D. Bargaining Power of Suppliers

 Who is the supplier?

Supplier power refers to the power that is held by the suppliers in terms of pricing of the raw
materials and inputs used for the business.

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 Sources of production for SMGULP The main sources for production are the
following:

Supplies from vendors - sourcing from independent suppliers. Own manufactured equipment
and resources: this model is practised by companies that are well integrated backwards and
forwards.

 Independent suppliers

For SMGULP, there are numerous independent suppliers within the industry, and all
comprise of a few pretty small operations that lead to weakened overall supplier power.
Independent sellers and suppliers, however, can locate different opportunities and invest in
alternative markets – which can be a challenge for SMGULP.

 Supply quality and business dynamics

Suppliers can integrate forward into the decision making and business dynamics themselves
as well. Also, to the buyers, the quality of the supplies and the raw materials is of utmost
importance. However, in an industry with a high number of suppliers, SMGULP can switch
to different suppliers at any time without experiencing any costs of the business. Overall
bargaining power of suppliers is assessed to be moderate.

 How can SMGULP deal with the challenge?

Get contracts with multiple suppliers and get resources and raw materials from them
accordingly. Invest in manufacturer controlled production facility to maintain consistency in
quality.

E. Competitive Rivalry among Existing Firms.

 Nature of fragmentation

The market is highly fragmented, which makes it more competitive. The market is never too
concentrated, and as a result, it has players of varying size of operation – from very small to
big players.

 Brand management

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Producers have begun to make use of brand management techniques and contemporary
merchandising by launching bold brands, label designs and marketing campaigns, to become
more identifiable to the public.

 Diversification

Purchasers and buyers have a wide range of products to choose from, with relatively low
switching costs. These factors tend to intensify rivalry. Though players in the industry may
off niche or premium products, they also continue to operate in the mass markets at large,
which again lead to high competition.

 High business costs

The high fixed cost and the high bargaining power of the buyers, which can lead to the
lowering of the prices from manufacturers, add to the highly competitive nature of the
industry. The overall rivalry is assessed to be high.

 How can SMGULP combat rivalry and competitive forces of the industry?

Focus on research and development to identify market niche as well as to be able to add
differentiating factors to its products. This will increase its shield against influence from
competitive forces and their actions. Build a strong and loyal consumer base by focusing on
quality and marketing strategies. Focus on capturing new markets – in the same region as
well as new regions to avoid saturation of resources in one market only.

III. Pentagonal analysis

A. The threat of new entrants

 Restriction into industry

The ease of entry into the industry is restricted. There are high barriers to entry. These are
government policies, consumer loyalty, brand differentiation etc.

 Switching costs for consumers

The high numbers of direct and indirect alternatives available also make SMGULP
vulnerable to the high threat of substitutes. Low to negligible switching costs experienced on
the part of the consumers and buyers.

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 Profitability

New entrants are attracted to the industry because of high profitability. If there are high
barriers to industry, the industry will continue to maintain high profitability. Low barriers to
entry will result in a lower average of industry profits. Lower entry barriers will also lead to
higher operational costs because it will increase the intensity of competition within the
industry.

B. The threat of substitute products/services

 Increased competition

High threat of substitutes. This is because of higher competition. The higher competition
leads to imitation of products and systems. This imitation makes substitute products similar to
each other – as much as possible.

 The offering of similar benefits

Consumers readily adopt alternative and substitute products. They offer similar benefits.
They have similar functional benefits and features.

 Low costs of switching

Consumers often experience a low cost of switching between substitute products. Low
switching costs are also developed because competition often produces at lower operational
costs. Low switching cost results in lower overall product prices for the consumer. Industry
players, therefore, also start competing on aspects of price.

C. Bargaining power of buyers

 Market fragmentation

The industry in which SMGULP operates is highly fragmented. It has numerous local and
international players. It is not very likely for players in the industry to integrate forward into
on-trade or retail businesses. This results in the players experiencing high bargaining power
of the buyers from the market.

 The concentration of retailing agents

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It also results in a high concentration of individual retailing agents. Retailing is also done
through hypermarkets and supermarkets.

D. Bargaining power of suppliers

 Backward integration by producers

Backward integration from producers is more commonly observed and seen; many players in
the industry have their own production facilities for raw materials as well. The industry has
seen a large number of players needing to outsource resources and raw materials.

 Outsourcing raw materials

This outsourcing is done by third-party manufacturers. A large number of suppliers present


lower the bargaining power of suppliers. Players in the industry have low switching costs
between suppliers. Suppliers usually are contracted by producers. Producers may change
suppliers frequently.

E. Industry rivalry

 Intensity of competition

There are strong competition and rivalry in the industry. There is a high number of players.
All players provide similar products. Switching costs for consumers is low, which increases
competition.

 Differentiation

Platers try to differentiate products on different aspects. Functional aspects and appeals for all
products across the industry remain the same. Competitors and players use emotional appeals,
and modern brand management techniques for differentiation. Industry players try to gain
consumer loyalty by developing strong emotional bonds and ties.

IV. Product Life Cycle Analysis (PLC) of Lijjat Papad /


Placement of the business along the industry life cycle

A. Identifying where SMGULP is on the Industry Life Cycle Curve

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Identification of the place and placement on the industry lifecycle is important as it will help
Shri Mahila Griha Udyog Lijjat Papad make important decisions and strategies for the future.

 Strategic decision making: Expansionary plans and investment decisions. Decide on


various marketing strategies and tactics for targeting different consumer segments to
establish and establish the product. Selection of new geographic regions for expansion
and exploration of new consumer bases.
 Budget allocation: Resources and alternative routes for future growth and
establishment. Exploration of different diversification options.

B. Introductory stage

 Firm strength

The industry is in the infancy stage. Firms are generally small, entrepreneurial and compact
during this stage. SMGULP Business will be focused on research and development during
this phase.

 Financial Position : Looking for investment and funds for growth.


 Nature of product

Products offered during this stage re doubtful as success and life of the product is unproven
and not known. Shri Mahila Griha Udyog Lijjat Papad will use a focused strategy during this
phase to emphasize the uniqueness of the product. The product or the brand will have a small
market of consumers – known largely as early adopters. Marketing strategies adopted by the
company will focus on generating awareness of the product and therefore, will largely use a
functional appeal.

C. Growth stage

 Financial position

SMGULP will require high capital during this stage. SMGULP will need investment and
funds for launching strategic marketing campaigns. Funds will also be required for fuelling
physical growth of the company in the form of investment in equipment and property to
facilitate growth.

 Growth factors

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Companies may increasingly encourage economies of scale because of standardization


experienced during this stage. Consumer feedback from the introductory phase will be
incorporated, and research and development will be conducted to make appropriate changes
in the product design and offering. Success in this stage for SMGULP will lead to growing
demand, which in turn will fuel sales demand.

 Nature of Product

Products in this stage have high growth and high market share. There is also increasing
competition and rivalry in the market – new entrants will enter and compete looking at the
success of products during this stage.

D. Maturity stage

 Sales and growth

SMGULP will experience slowing growth during this stage of the industry life cycle. Sales
will be expanding, and earning will be growing – however, the rate will be slower than the
growth stage. Competition from late entrants will be present and obvious during this stage –
who will all try to fight for SMGULP’s share of the market.

 Strategic Marketing

The marketing strategies must now focus on building loyalty. Marketing tactics must be
strong and should focus on the uniqueness of the product. Increasingly emotional appeals
may be used.

 Firm size

Firm size is generally larger and is more dominant over players if successful- compared to
growth stage. Innovations continue but are stable and not radical.

E. Decline stage

 Industry changes

New technological changes and upgrades may make an industry obsolete. Players within an
industry may also fall back and lose on market share if they do not keep up with innovations,
and investment in research and development.

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 Sales and Competition

Sales during this phase are decreasing at a high rate. Competing players also exit the industry
because of the changes and low demand.

 Surviving in the decline cycle

Shri Mahila Griha Udyog Lijjat Papad may also experience mergers and acquisitions during
this phase. Diversifications are also most common during this phase as a means of survival.

V. Strategic Group Analysis

A. SMGULP and strategic group formation

 The strategic group analysis will look at an industry’s players' situations in focused
conditions and scenarios.
 It will assess different players competing with SMGULP through the basic strategic
factors that will decide an organization's profitability, similar to how the profitability
will also be impacted and influenced by the competitive nature of the industry.
 The strategic group analysis will describe the procedures of every single noteworthy
competitor of SMGULP along different strategic dimensions.
 These dimensions of comparison differentiate players into strategic groupings and
must be selected as the basis of comparison by taking into account industry structure,
productivity factors, and the venture issues being tended to.

B. Different aspects of strategic grouping

Key strategic groupings of players within an industry can be made based on numerous
different aspects, such as:

 Specialization
 Brand identification
 Push versus pull strategies
 Channel determination
 Product quality
 Technological position
 Vertical joining

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 Cost position
 Service
 Price strategy
 Financial or working influence
 Parent organization relationship
 Government relationship

Despite the various aspects available for comparison of competing players, it is often
important to differentiate strategic groupings of players of aspects of how they compete with
each other, and on aspects of where they compete as well.

C. Procedure for strategic group analysis for SMGULP

 Collect results of the player’s analysis.


 Determine aspects of comparison for strategic groupings.
a) Distinguish the players and pick the most important aspects that separate the
players into strategic groups comparing to the issues being tended to.
b) Dimensions may include price strategy and product quality.
 Group the players: position SMGULP and rivals along with the matrix.
 Evaluate group mobility and direction. Assess the key purpose of individual
organizations competing with SMGULP, similar to assessing industry patterns and
barriers to entry/exit to be able to decide potential developments inside and between
groupings.

D. How will strategic group planning help SMGULP?

For Shri Mahila Griha Udyog Lijjat Papad It s A Women-Only Business, strategic group
analysis is important because it will:

 Strategic industry dynamics

a) Help in reviewing the strategic dynamics and shifts in the industry.

b) Identify the closest competition and competing players for the business; help in
assessing the strategic direction of these competing players; and lastly, aid in
developing strategies to stay ahead of the competition.

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 Assessment of market position

a) The strategic group analysis is also important for SMGULP because it will assist in
analysing the current market position of players, as well as help in assessing future strategic
moves and directions of the competition in the market.

b) Assists in evaluating and identifying different underlying factors that will influence the
company’s profitability.

c) Makes use of standard comparison aspects between different players in an industry to


group them as per strategic directions as well as strategic dimensions.

 Identification of barriers to entry in an industry

a) Different strategic dimensions along the matrix of strategic groupings are often
characterized by barriers to entry and exit along the strategic groups’ dimensions, as well as
by mobility barriers.

b) These barriers make it difficult for companies to move along, and in between different
strategic dimensions – often forcing it to stay in place with the same competition.

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 INTERNAL ENVIRONMENT ANALYSIS

I. Porter’s Strategic Options

II. SWOT Analysis

III. TOWS Matrix

IV. ANSOFF Matrix

V. SAF Criteria

I. Porter’s Strategic Options

Leading organizations such as SMGULP have obtained sustainable competitive advantage


and have had the option to achieve the strategic position. There can be different sources of
sustainable competitive advantage for SMGULP. A firm can depend on innovation to
decrease its overall production costs and would then be able to pass this advantage on to its
clients. SMGULP can also concentrate on making a differentiated item or administration to
increase its overall share of the pie.

Shri Mahila Griha Udyog Lijjat Papad can generate considerable sustainable competitive
advantage utilizing these systems. This is done through means of traditional as well as
modern procedures embraced by SMGULP to competitive advantage hand and increases its
share of the pie.

A. Differentiation strategy

A 1. Organizational Leadership

SMGULP has made use of the differentiation factor to maintain higher leadership and
differentiation from industry competition. Differentiation of effective leadership may be
achieved through different forms and basis.

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A 2. Broad product portfolio

 Product Quality

Moreover, this differentiation can fluctuate from item to item, market to market and industry
to industry. Generally, the essential bases of differentiation are quality, durability, usefulness
and in a few consumer loyalty, and brand image. SMGULP has differentiated its items and
products dependent on the quality and set a completely different, and engaging consumer
experience. Brand image

 Brand Image

Aside from these things, it has developed a distinct and distinguished brand image which is
additionally a premise of differentiation and encourages SMGULP to advertise, promote and
market its products and brand better than the competing players in the local and international
markets.

B. Focus strategy

B 1. Overall Quality of product and service

The essential premise of differentiation for SMGULP is quality and premium taste. It serves
just premium quality products, which enables it to charge a top notch and a premium cost. It
has embraced the most astounding measures as far as the nature of its raw materials used for
producing its products. At each progression, SMGULP puts forth an admirable attempt to
guarantee that its product fulfills the most noteworthy quality guidelines.

B 2. Value addition at each step of the value chain

However, the account of value does not finish at getting incredible quality of raw materials. It
goes more remote from that point. A great deal of contrast originates from the readiness. Shri
SMGULP prepares its product diligently to draw out the quality.

B 3. Human resource management

Rest of the credit goes to the human resource and employees at SMGULP. The brand
carefully picks its raw materials - just when they in ideal condition. Products are tested from
each cluster in any event thrice before endorsement. This is how SMGULP makes the quality
that each client looks forward to, and is excited about.

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C. Leadership and differentiation through cost

Porter’s traditional methodologies are methods for increasing and developing a sustainable
competitive advantage for SMGULP - as it was, building up the "edge" that will get the
company the ideal position and differentiates it from the industry rivals. There are two
primary methods for accomplishing this inside a cost leadership methodology:

 Increasing profits by decreasing expenses, while charging industry-average prices and


costs from consumers
 Increasing share of the overall industry by charging lower costs, while at the same
time making a sensible profit on every trade since SMGULP has controlled and
reduced expenses.

The cost-based strategy and system are that – it includes SMGULP being the pioneer
regarding cost in the industry and market where it operates. Just being among the most
minimal cost producers isn't adequate, as the company leaves itself wide open to aggressive
attacks by other producers and players in the industry. These players may undermine
SMGULP’s costs and in this way hinder the company’s endeavours towards the expansion of
its share of the overall market pie.

C 1. Achieving cost differentiation

Based on this, SMGULP should be sure that it can accomplish and keep up the leading
position before deciding on choosing the cost leadership strategy. SMGULP will be able to
become effective in accomplishing cost differentiation by having:

 Access to the capital expected to put resources into innovation that will cut expenses
down.
 Very proficient coordination’s.
 A minimal effort base (work, materials, offices), and a method for economically
cutting expenses beneath those of different competing players.

C 2. Achieving cost leadership

However, Shri Mahila Griha Udyog Lijjat Papad should ensure contingency for imitation by
competition, as well as be prepared for competing payers to imitate its cost-effectiveness
strategy to decrease and control their costs, and increase the overall share of the pie for their

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Marketing Strategies of Lijjat Papad

products as well. It is therefore important that SMGULP does not only settle for one means of
cost leadership but continually improves. This can be done through several different methods:

 Engaging and applying the Japanese technique of kaizen


 High efficiency
 High limit use
 Use of dealing capacity to arrange the least costs for generation inputs
 Lean production techniques (for example JIT)
 Effective creation process
 Effective dissemination channels

C 2.1. Overall Cost Effectiveness through Cost Leadership and Cost Differentiation

Cost differentiation and leadership strategy for SMGULP will be based on the nitty-gritty.
Cost initiative endeavours towards slicing expenses to a base to give clients lower costs and
in this manner will help the company of SMGULP to reserve funds. Cost leadership strategy
requirements regularly identify with high specialized abilities and access to capital. The
company should also resource into innovation and guarantee economies of scale.

II. SWOT Analysis

Shri Mahila Griha Udyog Lijjat Papad maintains its competitiveness as one of the best and
the most premium locally and internationally through inventive systems that use business
strengths in overcoming the weaknesses present in the business inherently. Also, they make
use of these internal strengths and weaknesses to make use of opportunities and ward off
potential threats, for example, the dangers in the business condition and market. These factors
can be distinguished, assessed, and analysed through the strategic SWOT tool.

The SWOT analysis and review for SMGULP talk about the strengths and weaknesses
(internal core strategic components) intrinsic in tasks in the business, and for the SMGULP
organization.

The assessment and analysis of SWOT likewise look at the opportunities and threats (external
key variables) identified with the nature of competitiveness in the market and industry, which
is mostly founded based on the level and intensity of competition and rivalry – as may be
gauged through Porter's Five Forces analysis of SMGULP.

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Marketing Strategies of Lijjat Papad

The need for SWOT because of expanded operations of SMGULP

SMGULP is present and operational in different markets, and each of the markets poses
unique yet various difficulties in developing the business. SMGULP and its portfolio in these
many markets have expanded over time and as the organization grows, more items are added
to its portfolio in addition to its pioneer product.

With regards to the SWOT analysis model, these circumstances of multiple operations and
multiple presences in various markets make a difficult business situation where the
organization needs to utilize various arrangements of skills that match different markets.

Core elements of different nature – both internal and external to the organization, can help
increment SMGULP’s accomplishment in contending with different companies and other
businesses – both locally and internationally.

The SWOT analysis for Shri SMGULP is presented below:

A. SMGULP Strengths (Internal Strategic Factors)

This section of the SWOT analysis model works with the inner variables that the organization
can use as competencies and strengths to address shortcomings and ensure the business
against rivalry. For this situation, Shri Mahila Griha Udyog Lijjat Papad ‘primary qualities
are:

A 1. Strong brand image

SMGULP is one of the world's most premium, well known and most famous brands. The
organization has a developing populace of steadfast clients, which adds to the soundness of
the business.

A 2. International distribution network

In the SWOT analysis model, the global distribution network through directly owned
subsidiaries, or contracts with third-party agents further strengths SMGULP by supporting
activities.

For instance, the organization has a worldwide system of providers that are deliberately
chosen dependent on criteria relating to quality, for example, of raw materials as has been
discussed in the value chain - primary and supporting activities.

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Marketing Strategies of Lijjat Papad

A 3. Strong investment in research and development, and high focus on innovation

The focus on innovation not only keeps the company apart but also facilitates its industry
leadership. The internal core strengths and competent variables recognized in this section of
the SWOT analysis of SMGULP demonstrates that the business has qualities that advance
strength through expansion and a worldwide production network.

A 4. Focus on market research

Additionally, the organization steadily expands its business. This is done through contracts
with offshore agents and licenses. Also, the company continues to broaden its portfolio by
adding new products based on market research and consumer data.

B. SMGULP Weaknesses (Internal Strategic Factors)

Business weaknesses or shortcomings are recognized in this part of the SWOT analysis.
Shortcomings are inward factors that diminish or cut off business capabilities and strengths.
SMGULP shortcomings are as per the following:

B 1. Premium prices for most portfolio products

SMGULP has a premium brand image attached, and thus all its products in the portfolio are
priced highly this expands overall revenues yet decrease the affordability of its items. This
internal key factor is a shortcoming since it confines the organization's share of the overall
industry, particularly in territories with generally lower disposable earnings

B 2. Standard and benchmarked regulations and business procedures for all portfolio
items

 Generalization

Likewise, this SWOT analysis highlights that generalized standards for all portfolio products
may be a weakness because it restrains the adaptability of these products and items in the
business.

 Imitability

What's more, numerous SMGULP items are imitable. Several items in the portfolio have
been imitated by completion, and are also being provided by them at different price points.
Though the quality is unique to SMGULP, the competing players have also developed close
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enough and acceptable products. This business condition engages competition, as has been
highlighted already.

 Fighting the challenge of imitation

The internal factors in this section of the SWOT analysis of SMGULP demonstrate that the
business must create qualities to diminish the unfavourable impacts of impersonation and the
impact of high value focuses on the organization's share of the overall industry in the
international and local business.

C. Opportunities for SMGULP (External Strategic Factors)

This section of the SWOT analysis and strategic model focuses on external components that
opportunities for business development and advancement. For this situation, the key
opportunities accessible to SMGULP are:

C 1. Green business products

With an increased focus and awareness of health and wellness lifestyles by consumers, it is
important that SMGULP recognizes this as a viable business opportunity. Increased numbers
of consumers are shifting to the green lifestyle of consuming environmentally friendly and
organic products. SMGULP should focus on the expansion of the product portfolio: inclusion
of green products and environmentally sustainable services are suggested.

C 2. Expansion in emerging markets

SMGULP can expand its income streams through expansion and developing presence in
emerging markets – such as Brazil. This opportunity draws consideration far from the U.S.
region, where the majority of the organization's incomes are created.

C 3. Business enhancement

Likewise noteworthy in this SWOT analysis of opportunities is the opportunity of business


enhancement and further business development. This can help improve the long term position
of SMGULP. For instance, through higher diversification of the portfolio and the overall
business, the SMGULP organization can diminish its reliance on its present enterprises, and
along these lines work towards improving its general income development.

C 4. Partnerships with different firms

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Marketing Strategies of Lijjat Papad

 Diversification through Partnerships

Diversification is right now a minor strategy as can be observed from SMGULP’s


competitive strategy and its overall directive strategy as well. The business environments
likewise display the chance to enhance the organization's competencies and strengths. This
will also increase its share of the overall industry through the association’s s with different
firms. For example, a partnership with real retailers improves dispersion.

 Development of corporate clientele

The company can also formulate new B2B relations and contracts with other companies and
corporate entities. The external key factors in this section of the SWOT analysis demonstrate
that SMGULP can improve its industry position by building up its activities to make use of
the opportunities in the international business markets.

D. Threats facing SMGULP (External Strategic Factors)

Threats against the Shri Mahila Griha Udyog Lijjat Papad business are distinguished in this
piece of the SWOT analysis. Threats are external components that decrease or breaking point
of business execution. In this case of SMGULP, the following section looks at, and assesses
threats that apply to the organization in question:

D 1. Price wars by competition

SMGULP competes with a wide assortment of firms in the local as well as the international
market. For instance, the organization competes against significant premium companies as
well as against cheaper companies that offer cheap priced items and products. This external
but important factor in the SWOT assessment undermines SMGULP because such competing
players can lessen the organization's share of the overall industry by competing based on low
prices and overall low costs of production.

D 2. Increased competition

Additionally, this SWOT assessment also analyses increased competition as a noteworthy


threat against the business. In light of the organization's shortcomings, the risk of imitation
includes firms that attempt to duplicate the taste, look and feel of SMGULP items. Saturated
market place and industry can also lower sales of the organization and shrink its share of the
overall pie. Increased competition can also lead to the increased cost of doing business for the

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organization if they bring innovative processes, and implement novice systems to control
costs

D 3. Independent players

The industry environment and profitability are liable to invite independent developments, and
small-scale players. These players may not have high levels of integration and may be
retailers and marketers for items produced during backward integration. Strategic marketing
techniques and promotional communications are expected to neutralize the impacts of these
patterns.

This section of the SWOT analysis of SMGULP recognizes external key factors that force
difficulties to international expansion and growth of the company as well as highlight market
infiltration.

III. TOWS Matrix

TOWS analysis will allow Shri Mahila Griha Udyog Lijjat Papad to identify and understand
the strategic choices and future strategic options and directions available to the company. The
TOWS matrix and analysis will help SMGULP to look at various possible future and long
term situations, and ill force SMGULP to look at these options by questioning strategic
directives such as:

 How will SMGULP make the most of its strengths and core competencies?
 How will SMGULP Circumvent its weaknesses and shortcomings?
 How will SMGULP capitalize on the various opportunities present in the business
environment?
 How will SMGULP ward off, and manage the threats that are present in the external
business environment?

The analysis of the SWOT and the subsequent assessment and development of the TOWS
matrix will allow the SMGULP to be able to identify the following answers:

 Strengths and Opportunities (SO) – How would SMGULP be able to utilize on its
strengths to exploit the opportunities?
 Strengths and Threats (ST) – How would SMGULP be able to exploit its strengths
and core competencies to keep away from genuine and potential threats?

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Marketing Strategies of Lijjat Papad

 Weaknesses and Opportunities (WO) – How would SMGULP be able to capitalize on


its opportunities to overcome the weaknesses that SMGULP is encountering?
 Weaknesses and Threats (WT) – How would SMGULP be able to limit its
weaknesses and evade threats?

TWOS matrix visual presentation

Table - TWOS matrix for SMGULP

TWOS Matrix Strengths Weakness

1. Leading premium 1. Major dependence on the


company that operates market as the country of
internationally origin market

2. Leading presence across 2. Despite being in operation


countries for decades, has standard
procedures and regulations
3. Reasonable control over
for all portfolio items
production and distribution
due to backward and forward 3. Imitability possible by
integration competition

Opportunities SO strategies WO Strategies

1. New South Asian and 1. Expanding into Asia 1. Increasing more stores
Asia Pacific regions available Pacific region and stabilizing outside the country of origin,
for expansion – emerging emerging markets by and in other parts of the
markets opening new stores and world – especially emerging
developing new products markets such as India, China
2. Acquisition of medium-
and Brazil
sized similar companies and
shops in developing countries

Threats ST strategies WT strategies

1. Increased marketing from 1. Improving the ambience of 1. Increase budget for


competing players, which service, focusing on marketing communications,
augmented service levels and strategic promotions and

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Marketing Strategies of Lijjat Papad

might affect sales negatively when providing products and pursue a moderate expansion
adapting to local culture. strategy
2. An increasing number of
independent producers and
marketers

3. Increased and saturating


competition

 The TOWS Matrix is a moderately basic strategic tool used by SMGULP for
producing key alternatives and identifying key strategic alternatives that may be
pursued by SMGULP.
 By utilizing it, SMGULP can take a look towards understanding that it can best
exploit the opportunities present, while at the same time also limit the effect of
shortcomings and ensure it against threats.

IV. ANSOFF Matrix

Shri Mahila Griha Udyog Lijjat Papad has viably utilized this instrument to develop a
procedure for accomplishing competitive advantage in the industry and various markets it
operates in.

Recently, SMGULP has made use of the four strategies of Ansoff matric to maintain
competitive advantage and leadership position. These strategies are

 Market development
 Market penetration
 Product development
 Product penetration

The following section highlights the various strategies that may be used through the Ansoff
matrix. These strategies have been highlighted and identified through vigorous research
methodologies, as well as through expert analyst data and opinion.

A. Market development strategies

A 1. Advertising and promotion of products

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Marketing Strategies of Lijjat Papad

One of the most popular means of developing a market is to use marketing strategically. By
making use of advertising and marketing communications, the company will be able to
disseminate information about its product, and the various benefits of consumption to its
target market easily. Also, the use of social media for marketing will, at the same time allows
the company to communicate directly with the consumers, and answer their queries.

A 2. Education about product consumption.

The company can make use of widespread marketing campaigns using traditional means as
well as means of social media to increase awareness of their product amongst the target
market. This task of educating the markets will give the company a first-mover advantage, as
well as develop important functional appeals for the product.

B. Market penetration strategies

B 1. Geographical expansion

The company can expand into other markets through its previous experience, as well as
through partnerships and contracts with other agents and parties. The company can also
develop subsidiaries, as well as offer its products through franchising as well as licensing.
The geographical expansion is suggested into emerging economies because of the favourable
income levels of the consumers, as well as the growing infrastructure.

B 2. Increased number of retail outlets and retail presence

The company can penetrate existing markets by offering more shops or making its product
more widely available. This may be done through increasing the accessibility of the product
at places where the target consumers are expected to purchase from, as well as improving the
interaction of the product with consumers at different touchpoints.

B 3. Online retailing

Another means of improving market penetration is through online retailing. SMGULP can
stock its products on online retailing sites locally and internationally. This would help the
company improve sales, accessibility, as well as reach higher levels of target consumers. All
of this, in turn, would increase market penetration. Besides, it would also help the company
maintain and control costs for SMGULP, and thereby help it achieve cost leadership in the
industry

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Marketing Strategies of Lijjat Papad

C. Product development strategies

C 1. Research and development

To be able to develop new products, the company should have a focused interest and budget
sending allocated to new product research and development. This research would take a basis
in the consumer market and the overall market trends, to identify the gap in consumer
demands, and market availability of different products. The new product would then
generally be aimed towards fulfilling this gap.

C 2. New product development labs

The company should have dedicated incubation labs for the development of new products.
This means that this development should be a focused and separate entity that should focus
on the company’s innovation. The company should also hire the right talent for business
development and innovation to be able to achieve targets and goals accordingly.

C 3. Market testing

New products should follow PD cycles for testing before launching in a market. This will
ensure that the company can fix any loopholes present in the product, as well as incorporate
positive feedback.

C 4. Strategic Marketing

The company should also have a focused and strategic budget for marketing and
communications allocated for new product development. This is because the company will
need to increase the appeal, as well as develop functional and emotional appeals and
characteristics of the new product. Communicate with the consumers to enhance sales as well
as increase likeability and rate of consumption and trial.

D. Product Penetration Strategies

D 1. Acquiring personally owned retail to strengthen its presence.

One way of increasing product penetration is that the company directly manages and controls
sales operation through owned retail. This will give the campy leverage over communication,
as well as product stocking and placement.

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Marketing Strategies of Lijjat Papad

D 2. Diversification of portfolio

The company can further expand its portfolio as a means of product penetration. The
expansion of the portfolio will allow the company to reach a different and diverse target
group, thereby increasing the overall share of the pie for the company. This will also increase
SMGULP’s products’ accessibility to different consumers.

V. SAF Criteria

How SMGULP can strengthen its strategic position using SAF criteria

 When SMGULP is deciding upon a certain strategic direction for the future, it will
face challenges.
 Choosing the right strategy at the right time can be a daunting task for managers.
 It is therefore important that managers look at the strategy from aspects of its value
and viability.
 The principal thing the managers of SMGULP will have to do is settle on a
foundation by which to evaluate the different strategic alternatives.
 They will also need to choose a viable methodology is to assess the different
strategies independently.
 Strategies can be evaluated and assessed using criteria of suitability, acceptability and
feasibility (SAF).
 The following section weighs different strategies and possible future directives for
SMGULP based on the SAF criteria.

1. Creation of a menu for high-income groups

A. Suitability

 New market development

This strategy is suitable because it will allow SMGULP to develop new markets by tapping
into new consumer groups. At the same time, it will allow the company to penetrate higher
into existing markets. Both these possibilities can be realized because SMGULP invests in
consumer research and has a strong financial standing.

B. Acceptability

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Marketing Strategies of Lijjat Papad

 Alignment with organizational goals

The strategy is acceptable because it is in line with the company’s goals and mission. Also, it
is also in line with the internal marketing and culture of the organization.

 Financial risk

As such, the strategy does not pose any risk – financially and otherwise and is also palatable
for stakeholder reactions. Lastly, the strategy promises to give high returns. Overall, the
strategy appears to be highly acceptable.

C. Feasibility

 Market research and financial cushioning

This strategy is highly feasible. This is because the company already operates along with this
mission, and has high levels of market research and information regarding high-income
groups. This information could be utilized for creating a suitable menu for high-income
groups. At the same time, the company also has the financial power to introduce premium
menu items for the higher class – to expand its menu accordingly.

2. Creation of a healthy menu for existing target consumer groups

A. Suitability

 Diversification of product portfolio

This strategy would require a high diversification of the product portfolio. This is suitable
because the company has the resources and the information to make strategic decisions about
diversification.

 Innovation

Moreover, the company also innovates regularly, which can be an added benefit for the
suitability of the strategy.

B. Acceptability

 Risk of financial investment

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Marketing Strategies of Lijjat Papad

This strategy appears to be moderately acceptable. This is because it poses a risk through
diversification with high levels of finances invested, the company can never be too sure of the
consumer reactions.

 Risk of new product development

Therefore, the risk of new product development and consumer reaction would be there. Also,
the acceptability is also low because of stakeholder reaction – who might not all agree with
the expansion of the portfolio horizontally – i.e. the broadening of the portfolio away from
the core offerings. Lastly, if the strategy works, it promises high returns, which make sit low
to moderately acceptable.

C. Feasibility

 Market research and financial cushioning

This strategy is also feasible for the company. This is because of the company’s strong
financial position, as well as its ability to researching into different market trends and
patterns. The identification of these trends and patterns is important for being able to decide
which market and industry to diversify into for the company.

3. Increasing existing advertising expenditure

A. Suitability

 Focused budgeting

This strategy is suitable because the company has high and focused budgeting for marketing
and communications. This would also allow SMGULP to withdraw from failing markets or
markets that have a weak share, and gain access to rising markets.

 Strategic marketing

The company will be able to exploit its research and development for strategic marketing.
Shri Mahila Griha Udyog Lijjat Papad It s A Women-Only Business will also make use of
existing systems and products to reach new consumer groups through marketing.

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Marketing Strategies of Lijjat Papad

B. Acceptability

 Return on investment

The strategy is acceptable because it poses a low risk in terms of investment in strategic
marketing. Also, it promises high returns on investment in marketing through the promise of
increased awareness, increased penetration, increased brand recall and brand recognition – all
of which will translate into higher sales. Lastly, stakeholders will also not frown upon this
strategy, which makes it more acceptable to implement.

C. Feasibility

 Market research and financial cushioning

The strategy is highly feasible because the company has a strong financial standing. This
means that the company can afford to increases budget for marketing purposes. However, for
the stagey to be successful, it is important that the company aces sure that all promotional
campaigns developed are in sync with consumer needs, demands and behaviour. This is again
possible for the company because of its investment in research and development.

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Marketing Strategies of Lijjat Papad

CHAPTER 7
DATA ANALYSIS
Questionnaire & their response:

[Number of responses: 116 responses.]


1. Gender of respondents:

Interpretation: This shows equal participation of male and female participants for research
analysis.

2. Brand Awareness

Interpretation: This organization has good brand awareness in market.

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Marketing Strategies of Lijjat Papad

3. Lijjat is well-known for:

Interpretation: This brand is most popular for its papad products. Approximately 97% of
respondents know this brand for papad production.

4. Effective Branding /Marketing tools for Lijjat:

Interpretation: Lijjat’s branding is mostly done by Television advertising. But their other
marketing way are also effective such as mouth publicity.

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Marketing Strategies of Lijjat Papad

5. General preference of brand by consumer for product papad:

Interpretation: This chart shows that More than 80% of consumer likes Lijjat’s papad and
they are market leader in organized sector of papad industry.

6. Uniqueness of Lijjat papad:

Interpretation: Approximately 61% of Lijjat papad Consumer are loyal for its unique taste
and 31% rely on its quality factor.

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Marketing Strategies of Lijjat Papad

7. Brand loyalty of Lijjat papad:

Interpretation: This analysis shows that 44% of loyal customer are prefering lijjat from 10
years ago and 16% of customer are from category 3 to 5 years which says some good
numbers are getting added in loyal customer list.

8. Percentage –wise Ranking factors of Lijjat papad:

Interpretation: Overall ranking factors analysis says that Respondents are giving top rank
rating to taste , quality and brand name whereas customer are not very happy with packaging
& availabilities.

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Marketing Strategies of Lijjat Papad

9. Percentage –wise customer satisfaction of Lijjat papad out of 10 scales.

Interpretation: This graph shows very large number of respondents (which is 41%) has
given 8 out of 10.Less than 2% of respondent have given less than 6 rating out of 10. This
survey says customers are very much satisfied with this brand.

10. Reasons /factors to choose other brands, rather than Lijjat:

Interpretation: This chart says customer selects other brand mostly due to unavailability
which is said by majority of respondents (41% of respondents).

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Marketing Strategies of Lijjat Papad

11. Improvement can be done by Lijjat to grow market share:

Interpretation: This diagram tells us which are the area and factors can be improve for
increment of market share. Approximately 55% of responses suggest to introduce more
varieties & flavour, 33% of respondents says to do improvement in packaging ,28% of
response says there is need to do more advertising and to apply latest marketing methods.

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Marketing Strategies of Lijjat Papad

CHAPTER 8

FINDINGS

 Mostly everyone (97%) knows brand Lijjat for its papad product. Very less stake of
consumer know about their other product such as detergent, flour, chapati, & spices.
 Approximately 41% of customer gets aware about papad product of Lijjat brand due
to Television advertising, 17% due to shopping centers advertising and 34% due to
mouth publicity.
 More than 80% of papad consumer prefers Lijjat brand among all brands in organized
sector and approximately 13% of papad industry is run by local or regional papad
makers.
 Among Lijjat papad customer base, 61% of consumers prefer Lijjat brand for its
unique taste, 31% for its quality & 2.6% for its varieties.
 Among Lijjat papad customer base, 44% of customers are loyal from 10 years & 18%
from more than 6 years.
 Approximately 41% customer faced unavailability problem while shopping, which
sometimes leads to loss of customer stake (Market Share).
 More than 39% of Lijjat’s customers are highly satisfied & 58% of customers are
satisfied with this brand.
 Approximately 13% of customers prefer switching of brand from Lijjat to another due
to discount offers.
 More than 28% customers suggest doing more marketing & advertising for increase
the customer base or market share.

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Marketing Strategies of Lijjat Papad

CHAPTER 9

CONCLUSION

Lijjat papad is a story of an organisation that has grown from rags to riches. Today, Lijjat is
more than just a brand of papad; it is a synonymous with papad in India. It has succeeded in
providing employment to thousands of women and has made them independent. It makes
equal money for its entire people. Decentralised organisation with co-ownership model
provided the base for the development of its sister members. The high demand for good
quality home-made papad in Mumbai led to the growth of the organisation. Social welfare
schemes and scholarships for the sister member’s families led to high organisational
commitment in the employees. Lijjat has successfully established an organisation which is
like one big family in true sense.

As a summer internship project, I would like to conclude my project work on Marketing


Strategies of Lijjat Papad. It was really very interesting interacting with customers & have an
insight into brand image in their minds. The main aim was to know the factors & attributes of
brand which customer look when he/she goes to buy Papad. From the survey, it all concluded
that people are quite satisfied with the brand, especially due to its taste. The organized
market of papad industry is growing, because more & more women are getting employed,
income levels have increased & most of the women don’t get time to roll papad at home. So
Lijjat Papad as major player in organized market has even better opportunities in future.
Some customers have complained about packaging & prices where company has to improve.
But in all it can be concluded that most of the customers are satisfied about the brand, & are
well aware of various attributes of the brand. I would like to suggest some points:

 Forecast market trends & try to adjust supply accordingly so as increase market share
& take advantage of established brand image.
 Try to bring more innovations like more varieties, sizes & their different
combinations.
 Company should improve its packaging. Time to time market survey should be
conducted.

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Marketing Strategies of Lijjat Papad

CHAPTER 10

RECOMMENDATION
Based on the overall internal and external analysis done for SMGULP, this section will offer
recommendations which will help the company take on strategic directions that will enhance
its core competencies and capabilities, as well as reduce its chances for risks and threats. The
following recommendations are thus made for SMGULP:

9.1. Strengthen distribution network

 Control

This is an important strategic recommendation as it will allow higher control to the company
over its products in different markets. The company will be able to control where its products
are placed, and thereby, will also be able to enhance the accessibility and easy availability of
its products.

 Stronger relation with consumers

At the same time, the strengthening of the distribution network will allow the company to
work more closely with end consumers by being able to reach them with the same high
quality of products across different markets.

9.2. Develop unique marketing tactics

 Higher penetration

This strategic recommendation will help the company reach a higher number of consumers
and penetrate deeper into target consumer groups. Also, this strategy will allow the company
to increase trial and consumption and sales of its products.

 Forming a partnership with consumers

Unique marketing tactics will involve new and informed strategic means of communicating
with the consumers and engaging them with the brand. One way that this can be done is by
making consumer co-producers for the brand. Another way that SMGULP can do this is

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through co-branding with other similar, yet dissimilar brands and companies to enjoy higher
market visibility amongst target consumers.

9.3. Adapt to different cultural aspects of different markets

 Identify different consumer group characteristics

Each market and target group has distinct characteristics. This recommendation is suggested
so that the company can connect better with different target groups in different markets.

 Adapt to and respond to characteristics

By adapting to different cultural and regional characteristics, the company will be able to
present itself better to target consumers – who would then feel a greater affinity, and more
likeliness of consuming the product and the service.

9.4. Expand into new regions

 Market expansion

Another strategic recommendation for SMGULP is to expand into newer regions and
markets. This can be done by expanding into new markets, firstly. This expansion will give
the company exposure to new consumer groups. Increase the overall consumption rate, as
well as diversify income streams. Also, it will give the company related expansion exposure
regionally as well as internationally.

 Product diversification

Another means of expansion is through product diversification. By adding new products, the
company will be Abe to penetrate deeper into existing markets bye exploring new consumer
groups, and new target consumer groups. This will also diversify income streams for the
company, and increase its overall share of the market.

9.5. Strengthen value network

By strengthening the value network further, and by adding quality and enhanced elements at
different stages, the company will be able to maintain competitive advantage, as well as put
off new players from the industry by increasing barriers to entry. This will allow the company
to maintain sustainable competitiveness over other players, as well as maintain a possible
leadership position in the local and international markets and industry.

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Marketing Strategies of Lijjat Papad

APPENDIX

Questionnaire for Survey:

1. Name of Respondent:____________
2. Gender : Male / Female / other
3. Do you know Lijjat brand? : Yes / no
4. According to you, Lijjat brand is known for?
a) Papad b) Detergent powder & soap c) Masala d) Atta (flour) &chapatti e) others
5. How do you know about Lijjat brand?
a) Television advertising b) Newspapers / pamphlets c) hoarding /poles display
d) mouth publicity e) social sites f) shopping centers g) others
6. Which brand of papad do you use?
a) Lijjat b) Bikaner c) appalam d) marwar e) ganesh f) local or other
7. What do you find unique in Lijjat papad?
a) Taste b) Quality c) Variety d) other
8. From how many years your family preferring Lijjat papad?
a) 0-2 years b) 3-5 years c) 6-8 years d) 8-10 years
e) 10 & more years
9. Rank Lijjat papad according to following factor:

Best Very Good Good Not Good

Taste

Packaging

Quality

Availability

Brand value

10. How much you are satisfied with Lijjat papad?


Scale score: ___ out of 10.

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Marketing Strategies of Lijjat Papad

11. In case, you buy other brand papad, so what was the reason?

a) Non availability b) discounts c) attractive packaging d) new flavour e) advertising f) other


reason

12. What improvement can make Lijjat expand or grow more market share?

a) Attractive packaging b) more discounts & offers c) more varieties & flavours d) more
advertising e) innovation in product f) other

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Marketing Strategies of Lijjat Papad

GLOSSARY

 NIQR - National Institution for Quality and Reliability


 IWES - International Women Empowerment Summit
 HGBARC - Herald Global and Brand Advertising Research & Consulting
 SMGULP – Shri Mahila Griha Udyog Lijjat Papad

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Marketing Strategies of Lijjat Papad

BIBLIOGRAPHY

Websites:

 https://brandyuva.in/2016/12/lijjats-popular-karram-kurram-ad-jingle.html
 https://indianexpress.com/article/entertainment/entertainment-others/indian-ad-age-lijjat-
papad-ad-6112576/
 https://www.essay48.com/case/30151-Shri-Mahila-Griha-Udyog-Lijjat-Papad-It-s-A-Women-
Only-Business-Case-Solution
 https://www.badabusiness.com/articles/lijjat-papad-company-a-story-of-women-
empowerment/
 http://www.icmr.icfai.org/casestudies/Women%20and%20Entrepreneurship9.htm
 http://www.lijjat.com
 https://en.wikipedia.org/wiki/Shri_Mahila_Griha_Udyog_Lijjat_Papad
 http://news.bbc.co.uk/2/hi/south_asia/7932979.stm
 http://in.rediff.com/money/2005/apr/15spec.htm
 https://www.thebetterindia.com/232694/make-in-india-manufacturing-favourite-brands-
90s-lijjat-papad-women-empowerment-history-inspiring-gop94/

Books:

 Lijjat Patrika, Vol. 1, Issue 3, March 1979


 Lijjat Patrika, Vol.6, Issue 12, February 1985
 Lijjat Patrika, Vol. 17, Issue 4, April 1996
 Lijjat Patrika, Vol. 18, Issue 3, March 1997

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