Project Report

IMPACT OF CULTURE AND RELIGION ON THE PURCHASE OF READY TO EAT FOOD PRODUCTS IN NCR (GURGAON)

Presented by : Suresh raghav, Anshul sehra, Nitin singhal.

Introduction
Indias Food Processing industry is one of the largest industries in the country 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.

Background of study
The ready-to-eat (RTE) market in India, currently estimated at Rs. 128 crore (2006) is expected to expand and 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 and the need for convenience on the demand side. 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.

Motivation of study
According to ITC press release on March 2008, Indian RTE market is worth around Rs 80-100 crore. The market is somewhat in a stagnant state and the growth is minimal. According to reports by CNBC-TV18, despite gradual duty cuts on Ready to Eat and instant mixes the sector is not doing well and growth is minimal. The concept behind RTE is that urban families are strapped for time and will definitely buy RTE packs to save on cooking time however this doesnt seem to be so because in India people still prefer food cooked and served piping hot by someone else or themselves so people hire cooks instead of buying RTE packs.

Objectives of the Study

To study the market penetration of Ready-To Eat food. To study the consumer perception of ReadyTo-Eat foods. To study impact of culture and religion on purchase of ready to- eat food.

Limitations of the Study

For a generic study like this where the consumers are spread across a wide area of NCR and shortage of time, the sample size taken was very limited i.e. 80. Lack of firsthand knowledge of conducting research.

RESEARCH METHODOLOGY
The research design adopted here is descriptive. I have made use of secondary data collection and also primary data collection. Steps in the research: Collection of data pertaining to Ready to eat market and identifying the research problem; Collection of data from secondary data related to the research problem; Primary data collection using Questionnaire targeting a sample size of 80 people.

Data collection Methodology:

Primary data:-. Primary data was collected online as well as manually. A survey questionnaire was made and printouts of the questionnaire was distributed and the result was compiled. Secondary data:- Secondary data used in this study were collected from external sources like books, blogs, wiki etc. Some websites which were really helpful are www.slideshare.com, www.scribd.com.

Cont.
Sample design: The sampling technique used for survey was a non-probabilistic convenience sampling. The sample size was chosen keeping in mind the target market for RTE segment, Hostel/paying guest, Individuals working & living in nuclear families and bachelors between the age group of 18-60 which include student, serviceman, business man, housewife etc Tools & Techniques Data was collected with the help of questionnaire. The questions are of mixed type. For survey, questionnaire was prepared and sends to potential respondent and response was collected from each respondent. Sample Size The total number of respondents was 80. The age group in which the sample lied is 18-60. The occupation of this sample size was a healthy mix of self employed individuals, working people and students.

STATISTICAL TOOLS

Analyzing the primary and secondary data. The researcher has used the table, correlation, t- test, ANOVA, cluster analysis , factor analysis, and ranking method tools for analyzing the data.

conclusion
Price- Indian consumers are highly price sensitive. For any new product they judge the product based on their price and more or less the repeat purchases are impacted by price factor. Same is the case with Ready to Eat foods. Value proposition RTE foods should be perceived as a value proposition by customers. Value proposition means it should be able to save lot of time and money with sufficient quantity to act as a full meal. Value for money - Consumers should perceive RTE packs as Value for money i.e. they should feel the money they spent on it is well spent and not wasted. This is where repeat buying can be induced. If consumers see RTE as a Value for money option they wont look for other options like ordering from restaurant or going to a restaurant.

Cont.
Quantity and taste of food - Indians are voracious eaters and the family size is also large. And Indians are used to eating a 3 full course meal on any day. Hence the quantity packaged in the RTE packs should be sufficient. And that is where the buying decision will come into play if the quantity is insufficient to fulfill the entire family then defiantly they wont consider buying it again. The food should also tickle the taste buds of consumers. Easy availability - The biggest competitor for RTE foods are restaurants which are easily available geographically and accessible with the option of doorstep delivery. Hence RTE has to be made available in such way that it can be easily accessible by the consumers during normal shopping as well as during emergencies. Branding: Although almost respondents were aware of the RTE products, but when they were asked to recall some popular brands, they could not mention any other name except Maggie. So, branding and abundant awareness generating efforts should be taken by these companies to broaden their target market, Childrens Preference: When it comes to make the decision as to which brand should be bought, the decision rests upon the children and it was found that majority of households purchases the brand demanded by the children. And their demand is largely guided by catchy advertisements shown on the TV.

Recommendations
As is seen from the survey the major concern for consumers is the health aspect. They have a perception that these RTE meals are not manufactured under good conditions. Secondly, they also feel that Ready to eat meals is not good for health. Hence marketers have to touch upon this point. The advertising, communication and promotion should revolve around this point.. Indian Households are averse to outside food and they feel only home cooked food can provide the taste and quality. This is a big hurdle for the RTE industry and the efforts should be taken to improve the quality of the food by using better manufacturing, and packing methods. The ready to Eat marketers should bank upon its strengths i.e. time saving, effort saving and easily available option. The promotion, Packaging should revolve around these characteristics as we all know in the traditional Indian urban family time is less..