Balaji Wafers: A chip of the new block

A quick glance at any shop tells us a lot about consumer insights: about brands that have fought and survived, brands that have perished. The ones that do manage to stay, surely, they have a story to tell.

So, this week, in the Luxury of Poverty series on CNBC-TV18, there is a story of a company that is rooted in local flavours and is yet giving some serious competition to its MNC counterparts. It’s a brand most of us are familiar with and one that is found in the swankiest shops to the humble kirana stores. The brand we are referring to is Balaji wafers. In the age of cut throat competition, Balaji Wafers has stood the test of time, as it emerges a popular winner to its fancier competition of Lays. In a span of three decades plus this company has earned the unofficial title 'Sultan Of Wafers' from the trade. That's a huge compliment, considering that it doesn’t have celebrity endorsements. It’s advertising and marketing spent is negligible compared to 7-8% spend by its competitors.

Tickling the local palates seems to be Balaji Wafer’s home spun philosophy. For instance, in Gujarat it offers masala wafers and ‘ganthiya’ to cater to appeal to local palate. In Maharashtra it offers ‘chaat masala’ wafers, in Rajasthan, it offers spicy snacks. But sets it apart from its competitors and helped it gain huge market share is its attractive pricing strategy. For instance, a Rs 10 pack of Balaji Wafers contains 45 grams of chips while Lays has just 25 grams.

With a bouquet of 8 varieties of chips and over 25 varieties of namkeens, Balaji Wafers holds a dominant position in five states in the country. It has captured 60-70% market share in Gujarat, Maharashtra and Rajasthan. In Goa it commands over 50% market share while in Madhya Pradesh it is close to 50%. This strong reach has been possible because of its strong distribution and retail network. Through a network of 700 loyal dealers it makes its products available to over 8 lakh retailers in the country.