A

COMPREHENSIVE PROJECT REPORT

(Research Proposal)
On
A Study on factor and effecting purchase decision Ready-To-Eat
Products
Submitted To:
L.J .Institute of Management Studies
Ahmedabad
In Partial Fulfillment Of The Requirement Of The Degree Of
Master Of Business Administration
Under the guidance of
Prof. Rinal Shah

Prepared By:
Chintan Shah (137960592091)
Pratik Zapada (137960592120)
(Batch: 2013-2015)
MBA SEMESTER III

CERTIFICATE
Certified that this comprehensive project research proposal titled " A study on
factor and effecting purchase decision Ready-To-Eat Products is the bonafied
work of Chintan Shah (137960592091) and Pratik Zapada (137960592120) who
prepared research under my supervision. I also certify further , that to the best of
my knowledge the work reported here in does not form part of any other project
or dissertation on the basis of which degree of award was conferred on an
earlier occasion on this or any other candidate

Signature of faculty guide

(Prof. Rinal Shah)

(Certificate is to be counter signed by the director/HOD)

PREFACE

The GUJARAT TECHNOLOGICAL UNIVERSITY maintains a reputation for up-to-date

curriculum, quality teaching, empirical research, consulting and publications. It brings
together talented youth and highly qualified and experienced teachers. It provides relevant
knowledge, skills, and motivation to succeed. The program of the L.J INSTITUTE OF
MANAGEMENT is highly regarded by employers both in India and overseas, as its
programs bland modern theory with current practice
The MASTER OF BUSINESS ADMINISTRATION (MBA) program is broad-based
management program providing in depth understanding to students in technical, human and
conceptual skills. For the same it imparts a unique, comprehensive project report to its
students, with helps them to get in the corporate culture and to step towards a brightening
career.
Comprehensive project report is helpful in having practical knowledge; the project report is
helpful to every student

ACKNOWLEDGEMENT

We are extremely thankful to our Director Dr. P.K.Mehta, Dean Dr. Siddharth Singh Bist and
Faculty guide Prof. Rinal Shah for their valuable guidance and the help they have provided us
throughout our project we have undertaken. They were always there to lend a helping hand
and directed us towards proper attitude to develop the project. They have always welcomed
our queries and doubts regarding the project work and also in the subjects they have taken
with the great interest to teach us. Without their help and right guidance the completion of the
project would have been very difficult.
The level of knowledge they possess has covered entire aspects of the management expertise
in the different field particularly in our project related to Marketing. We are also thankful to
our college L.J INSTITUTE OF MANAGEMENT STUDIES for offering us such a great
subject that binds all the knowledge we have gain through this comprehensive project.

ii

Table of Contents

Page no

TITLE PAGE

CERTIFICATE

PREFACE

ACKNOWLEDGEMENT

II

PART-I General Information

CHAPTER 1
1.1 OVERVIEW FOOD PROCESSING SECTOR

1.2 WORLD MARKET SCENARIO

1.3 INDIAN FOOD PROCESSING INDUSTRY

1.4 GROWTH FOOD PROCESSING INDUSTRY IN 8

INDIA
CHAPTER 2
MAJOR COPANIES IN FOOD PROCESSING

CHAPTER 3
PRODUCT PROFILE

12

PART-I PRIMARY STUDY

CHAPTER 4
4 INTRODUCTION TO STUDY

15

4.1 LITERATURE REVIEW

15

4.2 BACKGROUND OF THE STUDY

17

4.3 PROBLEM STATEMENT

19

4.4 OBJECTIVES OF THE STUDY

20

CHAPTER 5
iii

5 RESEARCH METHODOLOGY

21

5.1 RESEARCH DESIGN

22

5.2 DATA COLLECTION METHODOLOGY

22

5.3 TOOLS & TECHNIQUES

22

5.4 SAMPLE SIZE

22

BIBLIOGRAPHY

IV

ANNEXURE

iv

Part-I
General Information

Chapter 1:

1.1 Overview Food Processing Sector

Food processing sector is indispensable for overall development of an economy as it provides
a vital linkage and synergy between the agriculture and industry. It helps to diversify and
commercialise farming; enhance income of farmers; create markets for export of agro foods
as well as generate greater employment opportunities. Through the presence of such
industries, a wider range of food products could be sold and distributed to the distant
locations. The term 'food processing' is mainly defined as a process of value addition to the
agricultural or horticultural produce by various methods like grading, sorting and packaging.
In other words, it is a technique of manufacturing and preserving food substances in an
effective manner with a view to enhance their shelf life; improve quality as well as make
them functionally more useful. It covers spectrum of products from sub-sectors comprising
agriculture, horticulture, plantation, animal husbandry and fisheries.
The Indian food processing industry is one of the largest in the world in terms of production,
consumption, export and growth prospects. Earlier, food processing was largely confined to
the food preservation, packaging and transportation, which mainly involved salting, curdling,
drying, pickling, etc. However, over the years, with emerging new markets and technologies,
the sector has widened its scope. It has started producing many new items like ready-to-eat
food, beverages, processed and frozen fruit and vegetable products, marine and meat
products, etc. It also include establishment of post-harvest infrastructure for processing of
various food items like cold storage facilities, food parks, packaging centres, value added
centres, irradiation facilities and modernised abattoir.
The liberalisation of the Indian economy and world trade as well as rising consumer
prosperity has thrown up new opportunities for diversification in the food processing sector
and opened up new avenues for growth. Demand for processed and convenience food is
increasing constantly because of urbanisation, changing life-style and food habits of the
people. Accordingly, the Indian consumers are being offered newer high quality food
products made by using the latest state-of-the-art technology.
India has a strong agricultural production base with diverse agro-climatic conditions and
arable land of 184 million hectares. It is one of the major food producers in the world and has
abundant availability of wide variety of crops, fruits, vegetables, flowers, live-stock and
seafood. As per the available information, it produces annually 90 million tonnes of milk
(highest in the world); 150 million tonnes of fruits and vegetables (second largest); 485
million livestock (largest); 204 million tonnes of food grains (third largest); 6.3 million
tonnes of fish (third largest); 489 million poultry and 45,200 million eggs. As a result, Indian
food processing industry has become an attractive destination for investors the world over.
The total inflow of foreign direct investment (FDI), year-wise, in food processing sector
1

during the period 2000-01 to 2007-08 (upto November 2007) is as follows:

Year

Foreign Direct Investment (Rs. in Crores)

2000-01

0198.13

2001-02

1036.12

2002-03

0176.53

2003-04

0510.85

2004-05

0174.08

2005-06

0182.94

2006-07

0441.00

2007-08 (upto November 2007)

0061.63

Grand Total

2781.28

(Source: Annual Report 2007-08, Ministry of Food Processing Industries)

1.2 World Market Scenario:

Known as the fruit and vegetable basket of the world, India ranks second in fruits and
vegetables production in the world, after China. According to the National Horticulture
Board, during 2009-2010, India produced 71 million metric tonnes of fruits and 134 million
metric tonnes of vegetables. The area under cultivation for fruits is about 6 million hectares
while that of vegetables is 8 hectares. Amongst vegetables, India is the largest producer of
ginger and okra and ranks second in potatoes production (10%), onions, cauliflowers, brinjal,
cabbages, etc. Amongst fruits first is mango (39%) followed by bananas (28%). During
2010-11, India exported fruits and vegetables worth Rs.3856 crores which comprised of fruits
worth Rs. 2635 crores and vegetables worth Rs.1221 crores (MoFPI, 2011).
Food processing sector is one of the largest sectors in India in terms of production, growth,
consumption, and export. The turnover of the total food market is approximately Rs. 250,000
crores (US$ 69.4 billion) out of which value-added food products comprise Rs.80, 000 crores
(US$ 22.2 billion)
India annually produces 205 million tonnes of fruits and vegetables and is the second largest
country in farm production in the world. Only 2.2 % of this is processed. In contrast,
countries, like USA (65%), China (23%) and Philippines (78%) are far ahead of India in
reducing the wastage and enhancing the value addition and shelf life of the farm products.
This is an alarming signal for India as large volume of the agricultural produce is wasted.
About 35% of the fruits and vegetables are wasted annually, due to poor storage facility,
amounting to a revenue loss of Rs. 500 billion and 80% of the vegetables rot due to high
water content and lack of processing facility, resulting in revenue loss of Rs 125 billion. India
is very ambitious to increase the processing level to 20% by 2015! (MOFPI, 2011).
Between 1993 and 2006 the installed capacity of fruits and vegetables processing industry
has increased from 1.1 million tonnes to 2.1 million tonnes, a meagre 1 million tone increase
in 13 years!!
The fruits and vegetables processing industry is highly decentralized, and a large number of
units are in the cottage, household and small-scale sectors, having small capacities of up to
250 tonnes per annum. Since 2000, the food processing industry has seen large growth in
ready-to-serve beverages, fruit juices and pulps, dehydrated and frozen fruits and vegetable

products, pickles, mushrooms and ready-mix vegetables. These small scale units engaged in
these segments of processing are export oriented.
The major destinations for Indian fruits and vegetables are Russia, USA, Bangladesh, UAE,
Malaysia, Sri Lanka, UK, Nepal, Saudi Arabia, Pakistan and Indonesia. Between 2010-2011
India exported 2072015 MT processed vegetables (onions, vegetables, grapes etc) worth Rs.
385562 lacks. Out of this onions only accounted for 1163473 MT worth Rs. 174156 lacks!!
(APEDA, 2011, Agricultural and Processed food products Export Development Authority)
Russia is a major importer of processed fruits and vegetables from India and the country
imported 13477 million tonnes of dehydrated vegetables and fruits worth 5963 lacks in 20102011. The second major importer is USA with 11164 million tonnes of dehydrated fruits and
vegetables in 2010-2011
The consumption of processed fruits and vegetables are low in India compared to the primary
foods because they are available fresh in the market to the consumer. The demand for
processed foods is mostly lies in the urban market due to the lifestyle and purchasing power
of the urban population. Thus, there is a large demand for processed food in the export
market and India can capture this market by restructuring and strengthening its infrastructure.
Indias food processing sector covers fruits and vegetables, spices, meat and poultry, milk
and milk products, alcoholic beverages, fisheries, plantation, grain processing and other
consumer product groups like confectionery, chocolates and cocoa products, soya-based
products, mineral water, high protein foods etc. Since liberalization in Aug91 proposals for
projects have been proposed in various segments of the food and agro-processing industry.
Besides this, Govt. has also approved proposals for joint venture, foreign collaboration;
industrial licenses and 100% export oriented units envisaging an investment. Out of this,
foreign investment is over Rs.10, 000 crores
Indias exports of processed food was Rs.14925 crores in 2010-11, that includes several other
products like Mango Pulp (Rs.814 crores), processed fruits and vegetables (Rs. 1833 crores)
Foreign direct investment (FDI) in the countrys food sector is poised to hit the US$ 3-billion
mark in coming years. FDI approvals in food processing have doubled in last one year alone.
The cumulative FDI inflow in food processing reached US$ 2,804 million in the recent years
and is poised to double in the coming years.

Indis food sector vision 2015 aims at providing safe and quality food, providing dynamic
food processing industry, enhancing the competitiveness of food processing industry in
domestic and international markets, increasing the infrastructure facilities to enhance the
production of processed food, increasing the level of perishable agricultural produce from 6
to 20%, increasing the value addition from 20 to 35%, increasing the share in global trade
from 1.5 % to 3% by the year 2015. To achieve this vision, an estimated investment of Rs.
100,000 crores (1000 x 109) is required. Private sector is expected to invest about 45,000
crores and equal amount from financial sector and Rs 10,000 crores (100 x 109) from the
Government.
About 80% vegetables and fruits perish due to high water content. Due to lack of such
facilities, food worth 2.5 billion US$ is wasted annually.
Indian food sector uses about 13 % of the electricity (IEA, 2007) amounting to 63 x 106
MWhr (from coal fired thermal power plants). This amounts to emission of 11 x 107 kg of
CO2. By using conventional fossil fuel, as it is being practiced now, India can never compete
with the world food processing market. For example, 250 gm of dehydrated onions costs 0.5
US$ in the Indian market today while the price of 1 kg of raw onion from the producer costs
0.1 US$. India should learn a lesson from a small country like Guatemala in Central America
that uses geothermal for food processing and captured the European market in dehydrated
fruits and vegetables (Chandrasekharam, 2001). This industry requires about 6 billion US$ to
strengthen infrastructure by creating state or art storage and production facilities.
It is not difficult to create such infrastructure facilities to process the agricultural produce.
India has large geothermal resources in states like Maharashtra, Gujarat, Himachal Pradesh,
Chhattisgarh, J & K, West Bengal, Orissa, Madhya Pradesh and Andhra Pradesh where the
food processing industries are established supported by conventional energy sources. These
states also produce large volumes of fruits and vegetables. For example, Maharashtra is one
of the largest producers of onions. Nearly 20% of onions rot yearly due to lack of cold
storage facility or processing facility to dehydrate the onions to increase its shelf life. The
cost of onions in the farm is, as mentioned above is less than 10 US cents. By utilizing the
geothermal energy source, the cost of dehydrated onions can be brought down by several
factors there by making the product competitive in the international market. On one side the
export market will boom due to lower cost and the other side industry can earn carbon credits
since, carbon free energy source is being utilised to support the industry.
5

In terms of earnings through CDM, it will be about 88 x 107 at the current CER of 8 per
tCO2. Thus, India can very well exploit its geothermal energy sources for food processing
facility there by earning the required capital to build this state of art storage and processing
facilities and become the top trader in the world food processing sector. The agro products
from the farm can directly be transported to the geothermal sites where dehydration facility
can be established. The processed food (fruits and vegetables) can directly marketed to other
countries to earn foreign exchange.

1.3 Indias Food Processing Industry

Indias Food Processing industry is one of the largest industries in the country. It has been
ranked fifth in terms of production, consumption, export and expected growth. The Indian
food industry is estimated to be worth over US$ 200 billion and is expected to grow to US$
310 billion by 2015. India is one of the worlds major food producers but accounts for only
1.7 per cent (valued at US$ 7.5 billion) of world trade in this sector this share is slated to
increase to 3 per cent (US$ 20 billion) by 2015. The Indian food processing industry is
estimated at US$ 70 billion. The industry employs 1.6 million workers directly.

Food processing is a large sector that covers activities such as agriculture, horticulture,
plantation, animal husbandry and fisheries. The Ministry of Food Processing, Government of
India has defined the following segments within the Food Processing industry:

Dairy, fruits & vegetable processing

Grain processing
Meat & poultry processing
Fisheries
Consumer foods including packaged foods, beverages and packaged drinking water.

Although the industry is large in terms of size, it is still at a nascent stage in terms of
development. Out of the countrys total agriculture and food produce, only 2 per cent is
processed.
The highest share of processed food is in the Dairy sector, where 37 per cent of the total
produce is processed, of which 15 per cent is processed by the organized sector. Primary food
processing (packaged fruit and vegetables, milk, milled flour and rice, tea, spices, etc.)
constitutes around 60 per cent of processed foods. In comparison, the organized sector is
relatively small, with around 516 flour mills, 568 fish processing units, 5,293 fruit and
vegetable processing units, 171 meat processing units and numerous dairy processing units at
state and district levels.

1.4 Growth Food Processing Industry in India

During FY06-11, the food processing industry expanded at a CAGAR of 4.8 per cent;
in FY11 alone, the industry grew 7.1 per cent.

Food processing is an important segment in terms of contribution to GDP, and share

in agriculture and manufacturing sectors.

In FY11, India had as many as35,838 registered food processing units with total
capital investment of approximately $52.1 billion.

According to MOFPI in FY11, capital investment in Indias food processing sector e

have increased significant 28.6 percent over the last year.

Chapter 2: Major Companies in Food Processing: MTR :

MTR's wide range of products include ready-to-eat curries and rice, ready-to-eat
cook gravies, frozen food, ice-cream, instant mixes, spices and variety of pickles
& papads, and milk beverage drinks.

Kohinoor Foods:
Kohinoor Foods Ltd. embarked upon its journey in 1989. Since then it has been
treating every milestone achieved as a stepping stone to go past another one.
Today, in India and in over 60 countries, consumer's lives have been touched by
not only some of the finest basmati rice brands, but also a wide assortment of food
products that includes Basmati Rice, Wheat Flour, Ready to Eat Curries & Meals,
Simmer Sauces, Cooking Pastes to Spices, Seasonings and Frozen Food. We have
further expanded our product basket to Pure Ghee, Paneer (Indian Cottage
Cheese), Ready Mixes, Namkeens & Sweets. Its a feat that Kohinoor Foods Ltd.
pulled off by spreading the authentic India flavour across the globe. Thereby
becoming a well-known food giant with one of the most powerful brand in its
stable Kohinoor

ITC :
ITC's foray into the Foods business is an outstanding example of successfully
blending multiple internal competencies to create a new driver of business growth.
It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat
Indian gourmet dishes. In 2002, ITC entered the confectionery and staples
segments with the launch of the brands mint-o and Candyman confectionery and
Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the
Company entered the biscuits segment. ITC entered the fast growing branded
snacks category with Bingo! in 2007. In 2010, ITC launched Sunfeast Yippee! to
enter the Indian instant noodles market. In just over a decade, the Foods business
has grown to a significant size under seven distinctive brands, with an enviable
distribution reach, a rapidly growing market share and a solid market standing.

 Haldiram
Haldiram's Food International Limited today, is recognized as a Star Export
House, by the Directorate General of Foreign Trade, a department working under
the Ministry of Commerce, Government of India.

Haldiram's has its roots established in 1937 in the form of a small retail Sweet &
Namkeen shop in Bikaner, Rajasthan, a small but significant town in the Thar
Desert. Shri Shivkisan Agrawal, the founder of Haldiram's always cherished the
dream of building an empire, manufacture traditional sweets/namkeens, leave a
mark on every occasion and get close to the heart of the common man.

This dream was realized with shifting of its base to Nagpur in 1970. For the first
time people heard of a factory that was operating to manufacture Sweets &
Namkeens. A model plant of its times was set up at:- Haldiram's House; 880,
Small Factory Area, Wardhaman Nagar, Nagpur. In a very short span 'Haldiram'
developed into a brand and became an inseparable part of every occasion.

This was followed by a chain of retail outlets & showrooms. The product lines
were expanded to match the taste of various segments of the society. Sweets and
namkeens were presented in more durable and commercially viable packaging.
This fetched a overwhelming response and in 1997, Haldiram's forayed into milk
and milk product industry with products such as Khowa, Ghee & Butter Milk, the
manufacture of Extruded foods such as vermicelli and 3-D Snacks.

TYPES OF READY TO EAT FOOD

Veg Food

Non Veg Food

Alloo Matar

Chicken Curry

Palak paneer

Butter Chicken

Sarso Ka Saag

Karahi Chicken

Chana Masala

Mughalai Chicken

Kadi Pakora

Mutton Masala
10

Cheese Tomato

Mutton Korma

Dal Makhani

Karahi Mutton

Rajma Masala

Mutton Biryani

Deserts
Gajar Ka Haluaa/Sugi Ka Haluaa/Milk Kheer etc.

11

Chapter3: Product Profile

In July 2003, ITC made a foray into the biscuits market by launching the Sunfeast range of
biscuits. Since then, Sunfeast biscuits have always stood for quality and are known for
offering innovative and wholesome biscuits. Sunfeast connotes happiness, contentment,
satisfaction and pleasure. Within a span of 12 years, Sunfeast has well-established presence
in almost all categories of biscuits and is also a key player in the pasta and instant noodles
segments.
Sunfeast Pasta:

The Sunfeast product portfolio was expanded in early 2005 to include healthy snacking
options as well. Sunfeast Pasta Treat, a whole wheat based instant pasta was introduced as a
healthy snacking option for children and young adults. Sunfeast pasta is available in four
flavours - Masala, Tomato Cheese, Cheese and Sour Cream.

Sunfeast Pasta cheese

Sunfeast Pasta tomato cheese

Sunfeast Pasta sour cream onion

12

Sunfeast Pasta Masala

Sunfeast Yippe:

The portfolio has been further expanded with Sunfeast Yippee! instant noodles. Three years
of exhaustive developmental work has gone into the creation of Sunfeast Yippee! The
product has two intrinsic components - the noodle block and the masala mix. Wheat is a key
ingredient of the noodle block. The sourcing and blending expertise that has made
Aashirvaad India's No 1 branded Atta has been leveraged to make a truly delightful noodle
block. Sunfeast Yippee noodles do not lump even 30 minutes after cooking. Sunfeast
Yippee! is available in three lip smacking variants - Classic Masala, Magic Masala and
now the newly introduced Chinese Masala which is a unique combination of Chinese and
Masala flavours giving consumers tasty Chinese in minutes.

Sunfeast Yippee! Magic Masala

Sunfeast Yippee! Classic Masala

Sunfeast Yippee! Chinese Masala

Tricolor Pasta
Sunfeast Yippee! expanded its product portfolio with launch of Instant Pasta. Sunfeast
Yippee! Tricolor Pasta is a unique first to market product, with Instant Pasta in three exciting
colours. It is buttery smooth pasta in 2 mouth-watering flavours - Masala and Creamy Corn.
The unbeatable combination of wheat and tasty veggies makes it the complete snack.

Sunfeast Yippee! Creamy Corn

Sunfeast Yippee! Masala

13

Part-II
Primary Study

Chapter 4: Introduction to Study

4.1 Literature Review

Introduction
The ready to eat meal industry consists of two categories, frozen ready meals and canned
ready meals. The market for ready meals in India increased at a compound annual growth rate
of 13.7% between 2003 and 2008.The canned ready meals category led the ready meals
market in India, accounting for a share of 60.3%.
Leading players in Indian ready meals market include ITC Limited, Al Kabeer Group of
Companies and Orkla Foods.
The ready to eat foods have gained momentum in Urban India where even women are
working and there is time crunch to cook. The market for RTE industry is NRIs and
bachelors.
The Indian food processing industry has changed considerably in recent years to adapt to the
demands and lifestyles of domestic consumers, particularly the growing middle class. This is
also due to the rapid expansion of the retail distribution system replacing mall stores and wet
markets with modern supermarkets, superstores and convenience stores. Dairy products, deli
products, snack foods, ready-to-eat and ready-to-prepare meals are currently the most rapid
growth product categories in the domestic market.

The current scenario

The ready-to-eat (RTE) market in India, currently estimated at Rs. 128 crore (2006) is
expected to expand to reach Rs. 2,900 crore by 2015, according to an analysis done by Tata
Strategic Management Group (TSMG). The report also highlights that the RTE market in
India has remained under-penetrated owing to factors such as consumers penchant for
freshness, low affordability and the Indian housewifes preference for home-cooked food.
According to data in the reports, packaged foods in India have grown at about seven per cent
a year between 2000 and 2005, with RTE foods being the fastest-growing, at a CAGR of 73
per cent. The factors contributing to the growth would be changes like cold chain
development, disintermediation, streamlining of taxation, economies of scale on the supply
15

side, coupled with increasing disposable incomes, diminishing culinary skills and the need for
convenience on the demand side.

Market
There is a huge untapped market opportunity arising due to rapid demographic shifts in
income, urbanization, and proportion of urban working women in India. The industry needs
to concentrate on broadening the market and increasing penetration amongst Indian
consumers.
The analysis also pointed out that industry players would have to significantly improve their
price competitiveness with respect to other options such as domestic help, eating out and
ordering in, available to the Indian consumer. Besides price consideration, the product range
offered by industry players will have to be strengthened.

Under-serviced
At the moment, the regional cuisine and non-vegetarian cuisine markets are relatively underserviced with concentration on the vegetarian North Indian meals.
Pankaj Gupta, Practice Head-Consumer & Retail, Tata Strategic, said, According to our
analysis, India provides an attractive opportunity for both Indian and international players
with a mix of demand and supply side changes. If consumer demands of affordability,
availability and enhancing acceptability are met, the RTE foods market has the potential
market size of 2,900 crore by 2015 from its existing Rs. 128 crore.

Challenges
Most urban families are strapped for time. So we would conclude that the RTE foods would
be a necessity, however, this is not the case. The Rs 130 crore markets have stayed stagnant
over the past three years. That's because in India people still believe in cooking and serving
food. Additionally, The RTE foods have to compete with restaurants, cooks and consumers
penchant for cooking. Over and above, the pricing is higher range which has made it an
occasional purchase item rather than regular buying.

16

4.2 Background for the Study

India has made lot of progress in agriculture & food sectors since independence in terms of
growth in output, yields and processing. It has gone through a green revolution, a white
revolution, a yellow revolution and a blue revolution. Today, India is the largest producer of
milk, fruits, cashew nuts, coconuts and tea in the world, the second largest producer of wheat,
vegetables, sugar and fish and the third largest producer of tobacco and rice. Therefore,
Indian Government is providing more infrastructures for this sector. Excise duty is now
ZERO % on RTE and 100 % tax deduction for the first 10 years for new units. This allows
manufactures to bring down their prices & spreads its flavors to the world.
Now the time is to provide better food processing & its marketing infrastructure for Indian
industries to serve good quality & safest processed food like ready to eat food.
The ready-to-eat (RTE) market in India, currently estimated at Rs. 128 crore (2006) is
expected to expand to reach Rs. 2,900 crore by 2015, according to an analysis done by Tata
Strategic Management Group (TSMG). In its analysis, TSMG said that the factors
contributing to the growth would be changes like cold chain development, disintermediation,
streamlining of taxation, economies of scale on the supply side, coupled with increasing
disposable incomes, diminishing culinary skills and the need for convenience on the demand
side.
Concept
Ready to Eat Meals like already cooked or prepared lunch & dinner are relatively new
products are now sold through retail general stores in especially made sealed aluminum
laminates. When customer needs to eat, the food item pouch is either put in microwave oven
to warm it or keep in heated water for a few minutes and then serve to eat.
Such ready to eat meals have been especially given to soldiers in army of many countries
who require carrying their rations while on war front or while located far away from their
main unit.
The market for food is simply huge and as of January 2010 estimated to be Rs 5000 billion
annually. It is growing for two main reasons: population growth and improvement in
consumers spending ability. The ready-to-eat segment is small but growing. Corporate are
only now beginning to look at the huge potential this segment can offer. The market is
expected to grow five-fold in next 5 years.
17

Players in the Ready to Eat Segment

MTR

Kohinoor Foods

ITC

Haldiram

Some Features:

Globalization of Indian food and its culture are the core factors for popularization
of ready to eat foods.

Main motivation for these ready to eat foods is fast growing foreign market.

Retail outlet culture is now growing rapidly in India.

Shelf life of these foods is at least 12-18 months.

Quality, Taste and Flavor of these foods remains as good as fresh up to the expiry
date.

Women wanting to spend more time out of the kitchen.

More working bachelors staying away from homes.

Cost effective in comparison to the Indian cuisine served by the restaurants in

foreign countries.

18

4.3 Problem Statement

This Study deals with the Ready to eat Industry in India. The study also aims at
understanding the factors influencing buying decision making of the RTE packs. The factors
under consideration are advertising, price, Product, Value proposition etc.

Scope of the Study

The project is a study of what are the factors that is affecting consumer buying behaviour of
Ready to Eat Meals in India. The study is undertaken to understand all the negative and
positive perceptions about the Ready to Eat packs.
In the study I have highlighted the following points:

Percentage of people aware about RTE & have purchased it.

Percent bought an RTE on monthly basis vs. emergency basis.

How did the respondents come to know about RTE So that awareness could be
increased through those means?

Critical areas where communication is required to draw a change in the

perception/attitude of customers towards RTE segment.

Points people gave to prefer RTE as an option when needed.

Top of Mind brand recall (Unassisted) for Leading Brands.

Limitations of the Study

Lack of firsthand knowledge of conducting research.

19

4.4 Objectives of the Study

To study the market penetration of Ready-To Eat food.

To study the consumer perception of Ready-To-Eat foods.

To identify the buying pattern of Ready-To-Eat (RTE) packs.

To identify the factors influencing buyer behavior of RTE packs.

20

Chapter 5: Research Methodology

5.1 Research Design
A research design is the arrangement of conditions for collection and analysis of data Ina
manner that aims to combine relevance to research purpose with economy procedure.
Research design is the conceptual structure within which research is conducted.
There are three types of research design. The research design adopted here is descriptive. I
have made use of secondary data collection and also primary data collection. The project
started with sorting all the raw data and arranging them in perfect order. The research
problem was defined understanding the collected data. To fulfil the objectives of the study a
narrowed approach to secondary data collection was used and primary data collection was
done by using survey questionnaire.

21

5.2 Data Collection Method

The sources of data used in this project report are both primary and secondary data.
Primary data collection: Survey method.
Secondary data collection: Internet, News papers, Articles, Research Paper etc.

5.3 Tools & Techniques

Data was collected with the help of questionnaire and online forums.

5.4 Sample Size

Reference: http://www.surveysystem.com/sscalc.htm
Sample Size: 267

22

Bibliography

http://www.statusa.gov/mrd_a.nsf/vwNoteIDLookup/NT0003CA62/$File/X_413629.PDF?OpenElem
ent
http://www.tsmg.com/media-and-press-releases/219-ready-to-eat-foods-market-in-india.html
http://www.indianfoodindustry.net/
http://www.thehindu.com/2007/10/24/stories/2007102454651900.htm
http://www.oppapers.com/essays/Ready-To-Eat-Food-Industry/198352
http://www.hinduonnet.com/thehindu/mp/2004/06/10/stories/2004061000130300.htm
http://www.thehindubusinessline.com/2003/11/24/stories/2003112400740300.htm
http://www.marketresearch.com/product/display.asp?productid=2552630&SID=63229650463567436-409318558
www.marketresearch.com
www.hindubusinessline.com
www.marketingpractice.blogspot.com
www.garamchai.com

iv

Annexure
PLEASE FILL THE QUESTIONNAIRE AND REPLY HERE
Kindly tick the most appropriate box with a 'X' wherever applicable / fill the blanks.

1. Given a normal week, are meals (i.e lunch & dinner) cooked at home for

ALL DAYS
WEEK DAYS
WEEK ENDS
NEVER

2. On days when meals are not cooked at home, how do you manage?
(Select more than one If applicable)
We visit a Restaurant
We order food from a restaurant
We pick up a Ready To Eat Packet

YES

3. Have you heard of READY TO EAT meals?

4. Have you purchased READY TO EAT meals

YES

NO

NO

anytime?

5. Do you remember any of the READY TO EAT brands?

1. __________

2. __________

3. __________

4. __________

6. You picked up a READY TO EAT pack

While shopping for MONTHLY

Separately DURING

GROCERY items

EMERGENCY

7. How did you come to know about the Ready To Eat Packs? (choose more than one if
applicable)
TV COMMERCIALS
DISPLAY AT MALLS
WORD OF MOUTH
OTHER SOURCES (PLEASE SPECIFY) _____________

8. Kindly rate your opinion on the following parameters:NEITHER

STRONGLY
AGREE

AGREE

AGREE/NOR
DISAGREE

A Ready To Eat Pack

saves a lot of time and

(a) effort in cooking

A pack of Ready to eat

(b) has sufficient quantity

A Ready To Eat Pack is
easily available whenever

(c) I need it
I dont see any sort of
health problem due to the

(d) consumption of RTE

I think a RTE pack is

(e) value for money

I think the RTE meal is
not
as tasty as freshly cooked

(f) food
I know that the RTE
Packs are manufactured at

(g) best quality standards

I will surely use more
RTE Packs if ready to eat
rotis are also made

(h available

Any .suggestions or comments on Ready To Eat Meals:

vi

DISAGREE

STRONGLY
DISAGREE

The information below would be needed to build a consumer profile. I hereby assure you that all the
information will only be used for the purpose of the study.

1. Gender

MALE

FEMALE

2. Age
Group

18-25

26-40

41-55

Above 55

3. Marital
Status

4.

Occupation

SINGLE

MARRIED

SERVICE
SELF EMPLOYED
HOUSEWIFE
RETIRED/OTHER

5.

You belong to a

JOINT FAMILY

NUCLEAR FAMILY
WITH IN-LAWS
HOSTEL / PAYING GUEST / OTHER

6. Could you kindly tick your group as per Total Family Income per month
Less than 20,000
20,000 50,000
50,000-1,00,000
Above 1,00,000

vii