A Dissertation Report On CONSUMER BUYING BEHAVIOUR TOWARDS ITC READY-TO-EAT FOOD PRODUCTS

Submitted to

Jagannath International Management School

As Partial Fulfillment of the Requirements for the Post Graduate Diploma in Management [March 2014]

Under the Guidance of: Dr Akshat Dubey

Submitted by: Himanshu Chopra Roll No. 119 Batch: 2012-14

Declaration by the Student

I hereby declare that this Dissertation report titled Consumer Buying Behavior towards ITC Ready-To-Eat Food Products has been submitted by me for the award of the degree of Post Graduate Diploma in Management, as partial fulfillment of the requirements for the Post Graduate Diploma in Management (2012-14). This is the result of original work carried out by me. This report has not been submitted anywhere else for award of any other degree/diploma.

HIMANSHU CHOPRA

Date:

Certificate by the Guide

This is to certify that HIMANSHU CHOPRA has carried out this Dissertation titled Consumer Buying Behavior towards ITC Ready-To-Eat Food Products, as partial fulfillment of the requirements for PGDM (2012- 14), under my guidance. While working on this Dissertation, the student consulted me many times and I am satisfied with the manner in which he made use of my guidance.

It is also certified that the report presented embodies the original work of the student.

Signature: ( Dr Akshat Dubey ) Date:

ACKNOWLEDGEMENT

The making of any report calls for contribution and cooperation from many others, besides the individual alone. I duly acknowledge my sincere gratitude to each one of them.

Above all I would like to thank the divine intervention that backed me at all the time and provided me enough motivation to accomplish this voyage. Every mature individual in professional life is keenly aware of his/her intellectual development. Ordinarily, this feeling is expressed in customary gesture of acknowledgement. As a student of JAGANNATH INTERNATIONAL

MANAGEMENT SCHOOL, it seems as a right to acknowledge my gratitude with sense of veneration to various people who helped me during the course of the project.

I would like to extend my sincere gratitude and appreciation to my project guide for extending valuable guidance andencouragement from time to time, w i t h o u t w h i c h i t w o u l d n o t h a v e b e e n possible to undertake and complete this project. The Project was an enriching experience and taught me various critical factors. Additionally, this project helped me in understanding that how actual research is conducted and the various challenges that res earches face while conducting a research.

However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

HIMANSHU CHOPRA

TABLE OF CONTENTS

PRELIMINARY
Declaration by the Student Declaration by the Guide Acknowledgement Executives Summary

PAGE No.

Chapter 1: Introduction
1. 2. 3. 4. Background of the Study. Need/Rationale of the Study.... Objectives. Section details... 1 2 3 3

Chapter 2: Literature Review

4-8

Chapter 3: Methodology
1. Research design -- Research Techniques; Research Tools.. 2. Source & Type of data Qualitative; Quantitative. 3. Constraints of the Study.. 9 9 9

Chapter 4: Analysis and Discussion10-21 Chapter 5: Summary and Conclusion References ..

22-24 25

Annexure .. 26-28

EXECUTIVE SUMMARY

The purpose of this study is to explore and study the market for Ready-to-eat products. To find out what are the influential factors determine the market for such products. People attitude, income level, life style changes, product availability are taken into consideration to arrive at the conclusion. The main aim for this study is to explore market potential for readyto-eat products and the major forces determining such segment to grow and the future potential of the same. Market research will give us insights about the ongoing potential of the segment and the people preference to such products. There is a tremendous change in the consumption habits of individuals in the last ten years in our country. The choices before them are plenty and proliferation of micro entrepreneurs will also be influencing factors for this product segment. Other than convenience there are many hidden forces and upcoming forces determine this market. Yet there is no specific boundary for this market since this segment has to be growing and need to mature. Rather than availability of western eatables products, our own products are come into packaged items for sales in this market. This study will throw some light on market boundary and its potential of ready-to-eat products now the time is to provide better food processing and its marketing infrastructure for Indian industries to serve good quality and safest processed food like ready to eat food. The current project is aimed at gaining a deeper insight of consumer buying behavior towards ITC Ready-to-eat food products and all the issues and problems faced by the company for branding and popularizing its products. The project is also concerned with to generate and secure consumer awareness and to find out the issues related to the buying behavior of the consumer. Along with it, I consider this project work as the best medium to communicate and share my learning experiences & constraints faced during this unforgettable journey. The project included as a part of PGDM program and the project is done in March 2014.

Chapter- 1 INTRODUCTION
1.1 Background of the study
There is nobody in the world that is left out of the class of consumers. The consumer hood continues till ones last breath in the world. The consumer purchases a variety of goods and services to satisfy his wants and he is always influenced in his purchasing activities by some considerations which lead him to select a particular commodity or a particular retail store in preference to others. So, consumer buying is more complex. Consumer purchases are likely to be influenced by physiological, psychological and sociological factors. The commodities and services are brought by the consumer to satisfy his basic needs, for comfort, pleasure, recreation and happiness. Every individual has physiological need such as hunger, shelter, thirst, etc., which have to be satisfied for survival. The psychological factors like status prestige and social factors like friends, neighbours, job and relatives influence their purchasing activities. People bear certain beliefs and attitudes towards certain types of goods, brands of commodities and retail outlets based on their previous experience. When there is a need, they are able to discover some new commodities capable of satisfying their needs. Before the commodities and brands are selected, these commodities must compete successfully against alternatives in the market. The selection of a particular commodity becomes important for consumer since there are wide varieties of consumer goods in the market. Again selection of a particular commodity depends on income of the consumer and necessity of the product to the individual. Before the selection of the commodity purchased, an individual requires information regarding the various sources of supply of the commodity, its brands, relative merits and demerits, uses and value of their characteristic features and services offered. The common sources through which individual gathers information are from advertising media (television, radio and news papers), friends, retailers in the locality, displays in shops and food labels.

1.2 Need of the study

India is one of the largest food producers of the world with the organised sector accounting for food output worth US $34827 million; only a small percentage of its farm produce is processed into value-added products. For instance, even though the country is the second largest producer of fruits and vegetables, hardly two per cent of the production is processed. This underlines the enormous scope for investing in the processed food sector in the areas of infrastructure, packaging and machinery. India, in fact, needs US $28 billion of investment to raise its food processing levels by 8-10 per cent. Over the past five decades, India has taken giant steps in producing food grains, milk, fruits and vegetables. The production of raw food materials is estimated to worth over Rs.60, 000 crore. After primary, secondary and tertiary processing, the total size of the industry is estimated to be as high as Rs. 1, 10,000 crore. This cost overrun reflects the opportunities that food processing industry offers to the economy as a whole and entrepreneurs in individual. Big opportunities lie in up gradation from commodities to packaged and branded products and convenient foods, which offer value for money, products focused towards children and young adults and products catering to those who lead a fast modern day life. Realizing the potential and in order to provide further boost, the government has exempted from excise duty for condensed milk, ice cream, preparations of meat, fish and poultry, pectin, pasta and yeast. Unlike olden days where man used to have his food lavishly and slowly, the present trend changed the habits of foods, which are simple and easy to digest. Hence, the existence of these foods fulfilled all the needs of modern human being. Canned foods, convenience foods, fast foods, frozen foods, instant products, dried foods, preserved foods, etc. all comes under ready-to-eat foods. The food habits in India have changed due to the western influence and the usage of these foods is also on the rise. In India, majority of food consumption is still at home. Nevertheless, out of home food consumption is increasing due to increase in urbanization, breaking up of the traditional joint family system, desire for quality, time which translates into an increased need for convenience, increasing number of working women, rise in per capita income, changing lifestyles and increasing level of affluence in the middle income group had brought about changes in food habits.

1.3 Objectives of the study

The main objective of the project can be listed as follows: 1) To study the market penetration of ready-to-eat products 2) To study the consumer perception towards ready-to-eat products
3) To identify the buying pattern of Ready-to-eat packs

4) To identify the factors influencing buyer behavior of RTE packs 5) To identify the key determinants of ready-to-eat/cook products 6) To study the growing demand of these products

1.4 Sectional details

The whole of the dissertation report is divided into four chapters. Chapter 1: The first chapter consists of the Introduction portion in which its background, Need, objectives and section details are mentioned. Chapter 2: The second chapter consists of Literature Review in which the theoretical part of the study is explained. Chapter 3: Deals with Methodology followed with the Study, Description of Research Tools and Techniques, Method for the study and also Constraints of the Study. Chapter 4: The third chapter consists of the analysis part and discussion part. Chapter 5: The fourth chapter presents the summary and the conclusion of the research work with some recommendations.

Chapter -2 LITERATURE REVIEW

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. 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 Indian RTE foods market, canned/preserved segment is more popular, contributing about 90 per cent of the market and growing at a Compound Annual Growth Rate (CAGR) of 63 per cent between 2001 and 2006 while the chilled and dried ready meal segments are non-existent. 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. At the moment, the regional cuisine and non-vegetarian cuisine markets are relatively underserviced with concentration on the vegetarian North Indian meals. The Indian consumer market, which is primarily dominated by young generation, is becoming increasingly sophisticated and brand conscious.

A typical upper middle class young consumer is beginning to look beyond the utility aspect of a product to seek intangibles like brand and lifestyle statement associated with the product. This modern consumer wants his purchases to reflect his lifestyle or at least the one he aspires for. As a result of this brand consciousness, the food and beverage segment of the FMCG sector is already witnessing a significant shift in demand from loose to branded products. The Indian affluent class has always had a penchant for premium branded goods and this fetish will continue. A recent luxury brands survey conducted by The Nielsen Company, a global information and media research company, has ranked India third after Greece and Hong Kong in the list of most brand conscious countries in the world. Over 35% of Indian respondents said they spend money on luxury brands. 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. There is a marked difference in consumption between urban and rural consumers. Urban consumers represent 70% of the vitamin and dietary supplement market, versus 30% attributed to rural consumers. Indian consumers are spending more on nutritional supplements to combat the effects of stress. Protein supplements and items relating to muscle building are popular, due to the increasing fitness and bodybuilding activity among the urban elite. India consumes the largest quantity of tea in the world. Tea makes up 94% of out-ofhome, per capita, hot drink consumption, and almost 70% of in-home consumption. Sales of coffee, tea and cocoa in India increased by 14% from 1995 to 2007.The availability of imported tea on retail shelves has increased and there has been growth in sales of tea bag and flavoured teas. However, young, urban adults are increasingly attracted to adventure sports, and this has led to growth in the popularity of river rafting, rock climbing and mountaineering clubs. This trend may lead to more market interest in reasonably priced sports nutrition products. Sport drinks comprise a niche category in India, with consumption largely centered in urban areas. High prices, however, discourage the average consumer from purchasing them. Energyboosting drinks that are glucose-based (such as Glucon-D) are more traditionally used in India for rehydration.

Binkley(2006)in his research titled The effect of demographic, economic and nutrition factors on frequency of food away from home has used a model explaining visits to table service and Ready-to-eat restaurants that are estimated with nutrition variables added to standard demographic measures ,wherein nutrition factors have less impact on table service. However the frequency of consumers very conscious of nutrition factors is significantly very less to table service and Ready-to-eat restaurants. Jackson and McDaniel(1985)in their research, titled food shopping and preparation: psychographic differences of working wives and housewives explores various psychographic characteristics exhibited by working wives as opposed to housewives in food shopping and food preparation by comparing responses of 246 working wives and 181 housewives to several food shopping and preparation related psychographic statements. Results have revealed that working wives have a greater dislike for food shopping and cooking and also exhibited a tendency to be less concerned with the impact of their food shopping and preparation activities on other family members vis a vis non working wives.

Generally speaking consumer awareness of fortified/functional products is low. A recent survey shows 80% of Indians agree that health considerations significantly influence their choice of food and drinks. Approximately 48% of these respondents feel that functional food claims play a significant role in their purchasing decisions for food and beverage products.

As a result changes in tastes and lifestyles backed by urban living will significantly impact food demand and consumption patterns the young Indian consumer has passion for visiting Ready-to-eat outlets for fun and change but they feel that homemade food is better than convenience Ready-to-eat .Their findings have revealed that consumer acceptability for Ready-to-eat in the future would be decided only by the quality of food and customer service.

Food is a means of life but it has become meaningful investment for business. There is huge gap in food and health related research in Indian context despite obesity almost being an epidemic in metropolitan cities like Delhi, Mumbai, Bangalore, Kolkata and gradually rising in other urban areas too. It is an attempt of mine to analyze in Indian context the determinants and implications of consumers food choice particularly towards Ready-to-eat

Chapter -3 RESEARCH METHODOLOGY

3.1 Research design

The nature of this report is Exploratory. Exploratory research often relies on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors, and more formal approaches through in-depth interviews, focus groups, projective methods, case studies or pilot studies. The Internet allows for research methods that are more interactive in nature.

3.2 Research Instrument

The research instrument used in the project was questionnaire to analyze the secondary data collected.

3.3 Sources of data

Secondary data Secondary data was collected from different websites. This secondary data formed the conceptual background for the project. Type of data is both Qualitative as well as Quantitative as the analysis is done through a questionnaire which has been taken from the website itself.

3.4 Research constraints

This study is exploratory and has some limitations that however does not liquidate the purpose of study The major limitation of the study is that it is based on secondary data. The data available may differ from the present scenario. Even the interpretation done may vary from person to person.

Another limitation was time factor.

Chapter -4 ANALYSIS AND DISCUSSION

4.1 Organizational Profile

ITC is one of India's foremost private sector companies with a market capitalization of US $ 45 billion and a turnover of US $ 7 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine and among India's Most Valuable Companies by Business Today. ITC ranks among India's '10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.
Multiple Drivers of Growth

ITCs aspiration to create enduring value for the nation and its stakeholders is manifest in its robust portfolio of traditional and Greenfield businesses encompassing Fast Moving Consumer Goods (FMCG), Hotels, Paperboards & Specialty Papers, Packaging, AgriBusiness, and Information Technology. This diversified presence in the businesses of tomorrow is powered by a strategy to pursue multiple drivers of growth based on its proven competencies, enterprise strengths and strong synergies between its businesses. The competitiveness of ITCs diverse businesses rest on the strong foundations of institutional strengths derived from its deep consumer insights, cutting-edge Research & Development, differentiated product development capacity, brand-building capability, world-class manufacturing infrastructure, extensive rural linkages, efficient trade marketing and distribution network and dedicated human resources . ITCs ability to leverage internal synergies residing across its diverse businesses lends a unique source of competitive advantage to its products and services.

Within a relatively short span of time, ITC has established vital brands like Aashirvaad, Sunfeast, Dark Fantasy, Delishus, Bingo!, Yippee!, Candyman, mint-o, Kitchens of India in the Branded Foods space; Essenza Di Wills, Fiama Di Wills, Vivel, Vivel Cell Renew, Engage and Superia in the Personal Care products segment; Classmate and Paperkraft in Education & Stationery products; Wills Lifestyle and John Players in the Lifestyle Apparel business; Mangaldeep in Agarbattis and Aim in the Safety Matches segment. This growth has been rated by a Nielsen Report to be the fastest among the consumer goods companies operating in India.

4.2 Creating Enduring Value

Today ITC is the country's leading FMCG marketer, the clear market leader in the Indian Paperboard and Packaging industry, a globally acknowledged pioneer in farmer empowerment through its wide-reaching Agri Business, the second largest Hotel Chain in India and a trailblazer in 'green hoteliering'. ITC InfoTech, a wholly-owned subsidiary, is one of India's fast-growing IT companies in the mid-tier segment. This portfolio of rapidly growing businesses considerably enhances ITC's capacity to generate growing value for the Indian economy. ITC's Agri-Business is one of India's largest exporters of agricultural products. The ITC group's contribution to foreign exchange earnings over the last ten years amounted to nearly US$ 5.4 billion, of which agri exports constituted 56%. The Company's 'e-Choupal' initiative has enabled Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy has already become the subject matter of a case study at Harvard Business School apart from receiving widespread global acclaim. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC group directly employs

more than 31,000 people and the Company's Businesses and their value-chains generate over 5 million sustainable livelihoods many of whom live at the margin in rural India.

4.3 Global Exemplar in Sustainability

Acknowledged as a global exemplar in sustainability, ITC is the only enterprise in the world, of comparable dimensions to be carbon-positive, water-positive, and solid waste recycling positive. A testimony to its commitment to a low carbon growth path - over 41 % of the total energy requirements of ITC is met from renewable sources. All ITC's premium luxury hotels are LEED (Leadership in Energy and Environmental Design) Platinum certified making it the "greenest luxury hotel chain" in the world. ITC's Paperboards and Paper business is an icon of environmental stewardship. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. The Company continuously endeavours to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 4,62,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. Core Values ITC's Core Values are aimed at developing a customer-focused, high-performance organisation which creates value for all its stakeholders:

Trusteeship
As professional managers, we are conscious that ITC has been given to us in "trust" by all our stakeholders. We will actualise stakeholder value and interest on a long term sustainable basis.

Customer Focus
We are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction.

Respect for People

We are result oriented, setting high performance standards for ourselves as individuals and teams. We will simultaneously respect and value people and uphold humanness and human dignity. We acknowledge that every individual brings different perspectives and capabilities to the team and that a strong team is founded on a variety of perspectives. We want individuals to dream, value differences, create and experiment in pursuit of opportunities and achieve leadership through teamwork.

Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.

Innovation
We will constantly pursue newer and better processes, products, services and management practices.

Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we will make no compromise in complying with applicable laws and regulations at all levels. ITC's Branded Packaged Foods business is one of the fastest growing foods businesses in India, driven by the market standing and consumer franchise of its seven popular brands Aashirvaad, Sunfeast, Bingo!, Kitchens of India, mint-o, Candyman and Yippee! The Foods business is today represented in 4 categories in the market - Staples, Snack Foods, Ready To Eat Foods and Confectionery. ITC's uncompromising commitment to the health and safety of its consumers ensures adherence to the highest levels of quality, safety and hygiene standards in manufacturing

processes and in the supply chain. All ITC-owned manufacturing units are Hazard Analysis and Critical Control Point (HACCP) certified. The quality performance of all manufacturing units is monitored continuously online. Going beyond process control, ITC ensures that quality standards are scrupulously adhered to while choosing ingredients that go into the preparation of its food products. (Know more about ITC's Food Policy) ITC's Foods brands delight millions of households with a wide range of differentiated, valueadded products developed by leveraging ITC's in-house R&D capabilities, relevant consumer insights, a deep understanding of the Indian palate gained from its Hotels business, its agri-sourcing & packaging strengths, exciting, innovative communication and an unmatched distribution network. The business continues to invest in every aspect of manufacturing, distribution and marketing to ensure that it can leverage emerging opportunities and fulfil its aspiration of being the most trusted provider of Branded Packaged Foods in the country. ITC's Foods business also exports its products to the key geographies of North America, Africa, Middle East and Australia.

4.4 ITC Food Products Policy

It is ITC's policy that its food products should provide nutritious, tasty, hygienic and convenient options to the consuming public. ITC will offer food products across multiple categories, price points, delivery formats and segments as dictated by the needs of the consumer. ITC's portfolio of food products will be continuously improved and modified to Offer new products that meet the aspiration of the changing consumer, Offer food products with affordable and appropriate nutrition, Offer food products with micronutrient fortification, Drive reduction of sodium, sugar and fat in products, Offer trans-fat free products, Offer functional food products with focus on india specific metabolic disorders, Follow a strict code for making product functional claims,

Follow the highest standards in nutrition labeling and reporting, Follow responsible marketing and consumer communications practices, Create and sustain r&d focus in development of new products and processes, Follow the highest standards of hygiene and manufacturing practices in all delivery formats, Collaborate with experts and institutions and Ensure widespread accessibility to healthy products through appropriate pricing and wide distribution.

Policy Framework and Strategies

ITC's Food products will adhere to all legal and regulatory requirements as prescribed from time to time. To offer new products that meet the aspiration of the changing consumer As the aspiration of the consumer changes, new products will be developed and launched to meet the taste, nutrition and convenience expectations of future consumers. To offer products with affordable and appropriate nutrition Recommendations of the National Institute of Nutrition (NIN), India, will be referred to, to assess nutritional appropriateness of ITC's food products. Efforts will be made to offer products with appropriate nutrient density for mass consumption, including catering to the needs of those sections of the society who are economically disadvantaged. To offer products with micro-nutrient fortification. ITC's food products will be suitably fortified with micro-nutrients (iron, calcium, zinc, iodine, folic acid, other vitamins and minerals) wherever feasible. ITC's R&D will continue to carry out suitable research programmers to make fortified nutrients more biologically available and functional.

To drive reduction of sodium, sugar and fat in products. ITC's R&D will endeavor to find solutions aimed at reducing fat, sugar and sodium ("FSS") in food products, without impacting the taste profile of the product. In addition to scientific solutions, ITC will also adopt the Adaptation Methodology to reduce these ingredients in a gradual manner. Guidelines will be made and tangible targets will be set for the new product development teams to reduce the above ingredients in the new products. ITC will endeavor to introduce such Reduced FSS products in the market by year 2013.

To offer Trans Fat Free Products To disclose added trans-fats, if any, in all food products. To work towards not using any hydrogenated oil in all food products by the year 2015.

To offer functional food products with focus on India-specific metabolic disorders ITC, with well-researched functional ingredients, will endeavor to make functional food products suitable for consumption by Indians who suffer from metabolic disorders. ITC will release such functional products to the consumer, only after fully understanding the mechanism of action of the functional ingredients at the molecular level. Integrative biology approaches will be employed to study these ingredients' efficacy.

To follow a strict code for making product functional claim. ITC will conduct clinical trials in India by using Indian subjects to study the efficacy of its functional foods. Experts' opinion will be taken to design the clinical studies and suitable statistical methods will be employed to interpret the clinical study data. Indian Council of Medical Research (ICMR) guidelines will be referred to and followed in all clinical studies. Functional claims will be made only after statistical significance is observed.

To follow the highest standards in nutrition labeling and reporting. ITC's packaged food products' labeling will be comprehensive with good clarity on the contents of all macro and micro-nutrients. The nutrient content will be compared with the NIN recommended Daily Value (DV) and the percentage in the product will be reported.

To follow responsible marketing and consumer communication practices Apart from complying with all local laws and regulations, advertisements of ITC's food products will also adhere to the ASCI Code. All product communication to the consumer will appropriately represent the products. Internal audits will be done on marketing practices and, if needed, corrective action will be taken. Efforts will be made to promote nutritious foods and educate the rural consumer in food hygiene.

To create and sustain R&D focus in development of new products and processes. ITC's R&D organization is structured to research exploratory subjects and applied research subjects. ITC's R&D infrastructure is of international standards, and has been certified with ISO 14001-2004 for EHS and ISO 17025 NABL for analytical processes. There are more than 100 scientists conducting R&D on several food related platforms. ITC will continuously strive to contemporize its R&D infrastructure to meet changing nutrition needs.

To follow the highest standards of hygiene and manufacturing practices in all delivery format. ITC Hotels R&D endeavors to practice GHP & GMP (Good Hygiene Practices & Good Manufacturing Practices) along with ISO 22000 food safety management system implementation with PAS 220 relevant applications. ITC hotels will stringently follow all applicable regulatory requirements, with particular focus on risk minimization and elimination.

To collaborate with experts and institutions ITC believes in collaborating with outside experts to upgrade the knowledge of its personnel with a view to guiding the food business in developing products with balanced nutrition and functional ingredients. ITC will continue to collaborate with national and international institutions for scientific research and specific projects. ITC believes in using an Open Innovation policy in developing its R&D for food products.

To ensure widespread accessibility of healthy products through pricing and distribution: ITC will ensure the widest accessibility to its healthy food products through ensuring national geographic distribution across both urban and rural centre, using its FMCG distribution infrastructure and its e-choupal related rural distribution reach. ITC will also ensure accessibility across demographics through adopting a portfolio approach across all relevant price segments

Analysis of consumer behavior on ready to eat products through the reviews on website

Major key determinants forcing the consumers to buy the product Many respondents prefer to buy ready to eat packets because of the long working hours. Consumers didnt find time to prepare traditional foods in home and find it difficult to organize spices to prepare that masala. From the study it is arrived that complete life style changes are the major factors in going for these foods. the taste is not a influencing factors in determining these products for the consumers. Seeing huge opportunities in the changing preferences of the women, marketers are all out to woo this growing segment. On top of the list for the indulgent homemaker are branded ready-to-eat food, frozen food and ready-to-fry non-veg products. Other convenience foods like packet pasta, instant noodles and snack mixes are also finding huge traction among this group.

Study of the growing demand of these products

Ready to eat products are growing demand for these segment foods. In the vegetarian food category the products falls may are Alloo Matar, Palak paneer, Sarso Ka Saag, Chana Masala, Kadi Pakora, Cheese Tomato, Dal Makhani, Rajma Masala and some of the Non-veg categories are Chicken Curry, Butter Chicken, Kadahi Chicken, Mughalai Chicken, Mutton Masala, Mutton Korma, Kadahi Mutton, Mutton Biryani.

There are many factors influencing this sector and as of today there is not particular prediction which talks about growing demand for these products. Now days buyers kitchen is dumped with many packed foods. Before 1980s there is no choices in these segment but today there is a major availability of products which consumer can choose and ready to buy the products. More than regional players there are notable MNCs targeting India to sell their processed foods. Homemakers have added to their list of purchases new categories like hand sanitizers, facial wipes, probiotic drinks and fabric softners, which are considered premium when

compared saturated segments like toilet soaps. The true business potential of this segment lies in the ability of marketers to create relevance for their products -- be it cooking aids that ease the process of preparation or providing ready solutions that save her time. Targeting this segment needs both, a deep understanding of their need and high degree of creativity in product design.

Analysis regarding the major sources of attraction for these products Good packaging plays a important role in deciding this product. There are other factors taken into consideration are aroma & taste, easy to cook, healthy, information on calories, rare ingredients, convenience in buying, quick turnaround time in cooking. In the nutshell, we cant freeze one of the major factors is the source of attraction for these FMCG products, because all of these other factors contributing to the growth of these products or the major sources of attraction for these products. Consumers prefer the packaged food because they are healthy over the cover and the ingredients and calories level are printed properly and so they can make decision based on these factors. Convenience in buying are also the another factor. Some of the ingredients are not available nowadays and people are finding it difficult to access it, so foods combined with rare ingredients are one of the major factors in deciding these products. Most of the consumers are knowledgeable and used to buy these products only after carefully reading the ingredients in proper way. The younger couples are convenient in buying these products and they are all having secondary information about products that they eat so they will make decision based on these ingredients printed over the label. The aroma will be last in many of the packages so that is not the good factor in actually going for buying this product. Rare ingredients given in the package and some of the dishes can be prepared only by catering specialist will also be a major factor in buying some of the products. On the whole, its difficult to arrive at a conclusion at a particular factor but all the possible influential factor contributing success to these category products are mentioned in the study above.

Discussion
This study shows that there is a greater demand for ready-to-eat food segments and the major attraction for these products are convenience, availability and less time consumption to cook. Due to life style changes and long working hours people are choosing these products and ready to go with it. The availability of raw material to prepare certain spices is one of the fewer factors in deciding these products. Availability at door step and convenience buying are the major sources of influence in buying these products. However, there is no specific result that how much demand will be there for these products, because we have not included tier-II & tier III cities for this study. These products tend to mushroom because of influence by regional and MNC players. Most of the well known brand wants to sell their products by changing our lifestyle and finding pitfalls in the existing eating habits.

SUMMARY AND CONCLUSION

SUMMARY
India is the worlds second largest producer of food next to China and has the potential of being biggest industry with food and agricultural sector. Food accounts for the largest share of consumer spending. In India, majority of food consumption is still at home. Nevertheless, out of home food consumption is increasing due to increase in urbanization, breaking up of the traditional joint family system, desire for quality, time which translates into an increased need for convenience, increasing number of working women, rise in per capita income, changing lifestyles and increasing level of affluence in the middle income group had brought about changes in food habits. Ready-to-eat food is food offered or exposed for sale without additional cooking or preparation, which is packed on the premises where sold and is ready for consumption. Unlike olden days where man used to have his food lavishly and slowly, the present trend changed the habits of foods, which are simple and easy to digest. Hence, the existence of these foods fulfilled all the needs of modern human being. Canned foods, convenience foods, fast foods, frozen foods, dried foods, preserved foods, etc. all comes under ready-to-eat foods.

Ready-to-eat foods are widely used in catering industries as well as at homes. There are varieties of ready-to-eat foods available in the market to choose from. Now-a-days they have become a part of everyday life. As double income nuclear families have become the norm in urban India, everyone who is in the food business has been eyeing on the ready-to-eat food sector with considerable hunger. Several firms are engaged in production and marketing of ready-to-eat food products.

Hence, the consumers have greater option to choose from. In this context, a study on consumer behaviour was seemed to be important to understand the buying behaviour and preferences of different consumers. Understanding the consumer behaviour would help the firms in formulating strategies to cater to the needs of the consumer and thereby increase their market share. Consumers taste and preference were found to change rapidly especially in a dynamic environment. Keeping in view the importance of consumer behaviour and consumption pattern, an attempt was made to study the buying behaviour of consumers towards ready-to-eat food products, brand preference of the consumers, factors influencing brand preference and alternative purchase plans of the consumers.

Due to Change in lifestyle and FII investment there is a drastic change in Indian culture and food habits. Most of the family members dont have time to cook the food in traditional way and most of the families are living in separate environment. Despite modern cooking devices, consumers still need ready-to-eat/cook food because it consumes very less time. The change in lifestyle and dual income consumers prefer these types of products. The products may vary from noodles, pasta, masala packages, stuffed paratha, etc. and many more. Other than ITC other national player like Nestle, PepsiCo, Haldirams, Cavinkare, there are many regional players who is making foray into ready-to-eat segment. Rapid urbanization is also one of the reasons for people to buy such products. Nowadays people are also health conscious.

Findings
The results have shown that ready-to-eat market segment is defined by high growth in middle class section Peoples and their life style changes due to job factors. Some sections of the people agreed, availability of product choices is also deciding them to buy such products impulsively. Even some small section of the people agreed that most of the youngster dont want to spend much time.

CONCLUSION
This study shows that there is a greater demand for ready-to-eat food segments and the major attraction for these products are convenience, availability and less time consumption to cook. Due to life style changes and long working hours people are choosing these products and ready to go with it. The availability of raw material to prepare certain spices is one of the fewer factors in deciding these products. Availability at door step and convenience buying are the major sources of influence in buying these products. However, there is no specific result that how much demand will be there for these products, because we have not included tier-II & tier III cities for this study. These products tend to mushroom because of influence by regional and MNC players. Most of the well known brand wants to sell their products by changing our lifestyle and finding pitfalls in the existing eating habits.

REFERENCES
Saha, Niladri. ITC Food Products. 24 July 2010. 2 March 2014 http://www.scribd.com/doc/34804404/ITC-FOOD-PRODUCTS

Jain, Arihant. Ready to Eat Snacks & Food. 29 Nov 2012. 2 March 2014 http://www.slideshare.net/Arihant87/ready-to-eat-snacks-food-15412042

ITC. ITC Brands Booklet. . 3 March 2014 http://www.itcportal.com/businesses/fmcg/foods/kitchens-of-india.aspx

ANNEXURE

GRAPHS TAKEN FROM WEBSITE SHOWING THE CONSUMER BUYING BEHAVIOUR:

Pictures of ITC ready to eat products