A Study on Indian ‘Ready-to-Eat’ Food Industry

A study on Indian ‘Ready-to-Eat’ Food Industry 1. Problem Identified 1. 1Problem Definition Indian lifestyle is undergoing a massive socio-economic change, which is also being reflected in food habits. Owing to this fact, India is experiencing a significant growth in the ‘Ready-to-Eat’ Food industry. The Indian ‘Ready-to-Eat’ industry is making a huge progress and Ready-to-eat foods market in India is expected to reach Rs 2900 Cr by 2015. The popularity of ready-to-eat packed food now is no longer marks a special occasion. People want value for time, money in terms of quality and variety. The food processing industry is one of the largest industries in India and it is the ranked fifth in terms of Production, Consumption, Export and Expected growth. Processed food market in India accounts for 32% that is Rs. 1280 billion or 29. 4 billion US $ in a total estimated market of Rs. 3990 billion or 91. 66 US $. The demand for this industry comes from the global Indians as well. NRI’s and others are looking for convenient food, (almost) authentic dishes and entree on the go. This demand for ready-to-eat meals has captured a large amount of the food retail market in India and around the world. Walk in into any desi grocery shop in North America and one can find a wide assortment of emerging desi brands. Also Euromonitor International, a market research company says that amount of money Indian spend on ready to eat snacks & food is 5 billion US $ in a year while on abroad Indian or Indian subcontinents spend 30 billion US $ in a year. The factors contributing to this 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 rising need for convenience on the demand side. The new technologies and techniques like retorting or sterilization process, which are developed to store the ready to eat food products and increase there shelf life is also an important factor adding to the fast growth of this industry. Some of the reasons for the market growth are listed as follows †¢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 lives of these foods are at least 12-18 months. †¢Quality, Taste and Flavour 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. 1. 2Problem Statement: A study on Indian ‘Ready-To-Eatâ €™ food industry Market 1. 3Research Objectives: 1. To study the market of Indian Ready to Eat food. 2. To determine the factors affecting the purchase decision of Ready to Eat Food. . To identify market potential of ready to eat market segment in India 4. To understand the consumption pattern of Ready to Eat Food. 5. To identify the target market segment for RTE 6. To analyse the competition among different brands. 7. To develop marketing strategies for RTE products 2. Proposed Methodology: 2. 1Type of Data Research Methodology: The research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary & secondary. A well-structured questionnaire will be prepared to collect the primary data through the questionnaire Sampling Process: Non probability of Sampling 2. 2Tools for data collection: †¢Primary Data ?Questionnaire ?Personal Interview †¢Secondary Data ? Internet ? Magazines ? Companies’ Brochure †¢Sample size – 100 †¢Sampling Technique – Convenience Sampling. 2. 3Framework for data analysis Analytical tools to be used: ?Percentage analysis ?Chi-square test ?Rank Correlation ?H test ?U test ?ANOVA 2. 4Expected deliverables: This study is used to understand the market of Indian ‘Ready-To-Eat’ Food Industry, its growth potential, consumer behaviour and to develop suitable marketing strategies.