Consumer Behaviour

Individual Assignment - 2

How can RTE Foods be marketed better in

INDIA
Introduction

India is land with diverse culture, food habits and tastes. The concept of RTE in INDIA is

introduced by a Pune based company named “Tasty bites Eatables” in 1987. This concept was

failed initially. Today, preferences of the consumer segment are transforming and are becoming

extremely diversified. Also, food demand with traditional Indian tastes across different parts of

India as well as abroad is growing. Developed interest in different types of food such as Punjabi

or South Indian dishes or Western India or Bengali or Chinese dishes is also increasing. Many

companies started manufacturing all these types of cuisines of Ready-to-Cook (RTC) or Ready-

to-Eat (RTE) foods, to easily provide different taste of Indian or western culture. Other reasons

which also contributed are lack of time, diminishing skills to make some traditional Indian food,

shifting roles of women and growth in globalization and food. ITC and MTR are providing

traditional varieties to fulfill consumer demand such as Bhel, Puri, poha instant mix, etc.

The 4 Ps are as follows:

Product: Product of all variety traditional (Poha, Upma etc.), as well as western (Noodles, Pasta,

etc.) are available.

Price: Varying prices for different quality, quantity and uses.

Place: Easily available at all local Kirana stores and supermarkets.

Promotion: Rigorously, RTE products are advertised on TV and newspaper

Current Scenario

Currently, RTE products are one of the largest segments of the food industry. India’s RTE market

is $ 261 million in 2017 and it is projected that it will grow at a CAGR of more than 16% during

2018-2023 and it will reach $647 million by 2023.

Some years back, the homemakers took pride in cooking dishes for their family by reducing the

preparation time of cooking by means of cut & peeled vegetables and ready-to-use masala and

batters.

Shift from RTC to RTE

A transformation in lifestyle with increasing disposable incomes, shrinking culinary skills, nuclear

families and many food delivery applications has started a change from the RTC to the RTE

products demand. This paved the way to the ready-to-eat (RTE) products in the market in a great

way, with many brands focusing on ease to consumers RTE products who grew up seeing their

mothers use RTC (ready to cook) products but do not want hands-on culinary skills. They want

even more easy and convenient ready-to-eat (RTE) products

Recent innovations in RTE

 For developing novel healthy RTE food, the food sector utilizes the many traditional

technologies like fermentation, fat replacement, extraction, and enzyme technology,

encapsulation etc.

 A recent innovation is biotechnology makes possible to change the food ingredients and

make food healthier and cheaper. Which will lead to less costly and better quality RTE

products
 Reason for success of RTE food in India

1. Availability: All nearby Kirana store and supermarket made it possible the easy

availability of RTC product

2. Less time consuming: RTE is less time consuming product. So people adapt easily and

carry with them

3. Convenience: RTE required minimal effort and due to time constraint people attracted

easily towards it

4. Taste: Introducing the traditional variety under this segment increases the adaptability of

RTE products

Problems with RTE:

1. Unhealthy product: Earlier companies are selling unhealthy Products in RTE segments.

But now people are more health conscious.

2. Price: The most important challenge is providing healthy food at lowest possible price.

3. Freshness is a big problem, if a brand wants to increase market.

4. Packaging is a big challenge. A lot of problems are faced by companies in making Ready

to eat food looks natural.

How can RTE foods be better marketed:

Ikea effect: Engage customer in making product delicious like instead of mixing masala’s in

product give the masala with the product and tell customers mix masala according to their taste

and choice.

Attitude Change: for nutrition and healthiness, RTC food is always compared with traditional

food. So inform consumers about the healthy ingredients through campaign and advertisement.

Emotional Connect: Through affect-based advertisement, RTE companies try to connect

consumer emotionally. Ads should be more towards the value driven not the features driven.

Impulse buying: RTE companies try to encourage irrational buying. Ex:- placing the product near

the billing counter.

Reference point: RTE companies should portray their product as a hygiene product and show

their health factors for the health conscious consumers in comparison with the roadside foods

Virtue product: Some RTE food item which is not healthy for them scarcity appeal works better.

Try to introduce a new variant in the market for a limited period.

Introduce Fun element: Introduce the fun element like running a campaign” Selfie with product”

and post them on social media etc.

References

1. https://www.businesswire.com/news/home/20190718005453/en/Global-Ready-to-Eat-RTE-

Food-Market-Size-Forecast

2. https://www.indiaretailing.com/2019/01/30/food/food-grocery/ready-to-eat-food-millennials-

new-favourite/

3. http://www.fnbnews.com/FB-Specials/innovations-and-opportunities-for-rte-food-market-

44979

4. https://www.marketingmind.in/analysis-ready-eat-rte-products-market-india/

5. https://economictimes.indiatimes.com/industry/cons-products/food/millennials-push-

companies-to-serve-ready-to-eat/articleshow/59433986.cms?from=mdr