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READY-TO-EAT

SNACKS & NAMKEENS


Executive Summary
Indian snack food industry comprises of many Indian as well as MNCs.
The Indian snack market reached a value of $307.7 million in 2001. The Indian
snacks food market is of the order of 400,000 tones. This wide range of
products are categorized under Potato / Banana Chips, Namkeens & Fun-
Foods. The organized market for chips is estimated to be 6500 tons valued at
Rs.2 bn. The market for branded chips has been growing at a fast pace of
around 20-25 % annually.

Since the majority of MNC's entered their venture in Ready-To-Eat


Snacks & Namkeens. The project was conducted to study the overall industry
for Ready-To-Eat Snacks & Namkeens. The research was conducted to study
the actual buying behavior of the consumers and their preference for such a
category of food. Research methodology being exploratory research
Questionnaire method to interview consumers as well as retailers was adopted.
Retailers were surveyed to know the actual market behavior, whereas the
consumers were surveyed to know their preference and factors affecting their
purchase. Secondary data on industry is collected through Internet, magazines
& by visiting the people in the industry.

The Research was a good experience & the final conclusion is that the
consumers generally associate Ready-To-Eat Snacks & Namkeens with Time
Pass. Majority of them prefers wafers to be their first choice with Fraiams being
the second preference. Namkeens on other hand are usually preferred as
hunger quencher and are eaten whenever the consumers are hungry.

Ready-To-Eat Snacks & Namkeens are generally considered as take away


food and hence the consumers generally buy 1-2 packs and does not store
them. Through the research it was concluded that the consumers want even
POPCORN to be included in this category which is also an opportunity for the
manufacturers to launch a new product and extend their product width. Overall
the industry is grooming and has vast opportunity to be cashed for the
manufacturers.

Project Report On Trends Of Direct Selling In Mumbai 2


Table Of Contents

PARTICULARS PAGE NO.

 INTRODUCTION ______________________________________________02
 PROBLEM STATEMENT_________________________________________03
 RESEARCH OBJECTIVE_________________________________________03
 INDUSTRY OVERVIEW _________________________________________04
 CATEGORIES & PRODUCT OVERVIEW
__________________________05
 POTATO
CHIPS__________________________________________05
 BANANA CHIPS
_________________________________________06
 NAMKEENS____________________________________________
_07
 FUN-
FOODS____________________________________________09
 PACKAGING
______________________________________________10
 COSTING &
PRICING________________________________________11
 DISTRIBUTION
____________________________________________11
 CONSUMER
PROFILE________________________________________12
 SAMPLING DESIGN ___________________________________________15
 RESEARCH DESIGN ___________________________________________15
 DATA COLLECTION____________________________________________16
 DATA ANALYSIS______________________________________________16
 RETAILERS POINT OF VIEW
__________________________________17
 CONSUMERS POINT OF
VIEW_________________________________22
 MARKETING & ADVERTISING STRATEGY___________________________26
 FACTS & FIGURES ____________________________________________27
 CONCLUSION & RECOMMANDATION______________________________28
 APPENDIX___________________________________________________29
 QUESTIONAIRE FOR
RETAILERS_______________________________29
 QUESTIONAIRE FOR CONSUMERS
_____________________________30
 BIBLIOGRAPHY_______________________________________________31

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

READY-TO-EAT SNACKS & NAMKEENS

 INTRODUCTION:

India is one of the world’s major food producers but accounts for less than
1.5 per cent of international food trade. Food exports in 1998 stood at US$5.8
billion whereas the world total was US$438 billion. The Indian food industry’s sales
turnover is Rs. 140,000 crore annually as at the start of year 2000.

Exports of food products can become a valuable growth driver for the Indian
food industry, leveraging the historic base and new specialty categories where India
has great potential to emerge as a strong brand abroad, according to the latest
update on the industry by McKinsey

The report, released on Monday at Foodpro 2003, the exposition organized in


Chennai by the Confederation of Indian Industry, has identified emergence of an
organized retail sector, value additions and convenience driven by consumers,
India's growing acceptance as souring hub and continued deregulation of the food
sector as the four positive trends.

It pointed out that mass market of basic foods, value added foods and exotic
foods and their exports were the main opportunities for the Indian food industry
adding that there will also be a significant growth in terms of input providers,
logistics suppliers and retail.

Indian snack food industry comprises of many Indian as well as MNCs. The
Indian snack market reached a value of $307.7 million in 2001. It is one of the
largest snack markets in the Asia-Pacific region. Only Australia, China, Japan and
South Korea have won greater revenue from the sale of snacks. India contributes
three percent to the total Asia-Pacific snack market revenue.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

PROBLEM STATEMENT

To find out consumers buying behavior and purchase habits for Ready-To-
Eat Snacks & Namkeens.

RESEARCH OBJECTIVE

 Factors affecting the buying pattern of the consumer for Ready-To-Eat Snacks &
Namkeens.

 Find out the consumers buying habits.

 Find out the consumer's future requirements.

 To study the overall Ready-To-Eat Snacks & Namkeens industry.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

 INDUSTRY OVERVIEW:

The Indian snacks food market is of the order of 400,000 tonnes. At a low
average price of about Rs.35-60 a kg. Largest share of this Rs.14 bn market still
remains with unorganized sector comprising of local manufacturers. There is a wide
range of product categories differentiated based on taste. This wide range of
products are categorized under Potato / Banana Chips, Namkeens & Fun-Foods.

Chips market is largely dominated by the unorganized sector in India, which


manufactures potato chips with fat content ranging from 20% to 40% and moisture
content as high as 3-4%. These products are manufactured locally and sold loose or
in ordinary Polly-pouches. In the last 4-5 years, however, the organized market has
grown considerably catering to upper/ middle class consumers in the urban areas.

The organized market for chips is estimated to be 6500 tons valued at Rs.2 bn.
The market for branded chips has been growing at a fast pace of around 20-25 %
annually. Heavy promotions by branded chipmakers (like offering free gifts, toys etc
with these products), has led to a major shift from unbranded to branded products.

As per the views of MR. L.M AGARWAL (Executive Director of SM FOODS the
manufacturers of PEPPY/PIKNIK) today the trend is shifting from unorganised to
organised. So, the overall growth in the snacks food segment is happening between
10%-15% annually. However in the organized sector, the growth is happening at
50%-100% annually. The market is forecasted to reach a value of $459 million in
2006.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

 CATEGORIES & PRODUCTS OVERVIEW:

POTATO CHIPS:

 MARKET PLAYERS:

BRANDS PRODUCTS PRICE RANGE PACKAGE


Salted
Masala Rs. 5/-
(American Stride Per 16 Gm Packed in Aluminum
Crème & Onion) vacuumed Packs with pre-
Tangy Tomato Rs. 10/- printed Brand Name & Logo,
FRITO-LAY'S
(Australian Cilantro Per 32 Gm Item Name & Package
Surprise) Details and MRP and Expiry
Red Chili Chatka Rs. 20/- Date
Hot & Sweet Per 100 Gm

Packed in Polly Propane


Premium Salted Plastic Pouch with pre-
Premium Spicy Rs. 120 /- printed Brand Name & Logo,
GARDEN
Potato Salty Katli Per Kg Item Name & Package
Potato Spicy katli Details and MRP and Expiry
Date
Premium Salted
Packed in Polly Propane
Premium Spicy Rs. 100 /-
JANTA Plastic Bags With Brand
Potato Salty Katli Per Kg
Name and Price Tags.
Potato Spicy katli

There are many others in the local organized sectors like Chheda, Raghuvansi etc in
this category operating locally in a particular location.

Recently Haldirams has come-up with new range of potato chips in three
different tastes i.e. Paprika Chips, Pudina Treat and Classic Salted. Haldirams chips
are also available in 75 GM packs for Rs.10/- as an inaugural offer.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

 MARKET LEADERS:

Frito-Lay's is the market leader with a 53 % market share, followed by Uncle


Chips with 24 %. The balance market is divided among small local players.

 TARGET AUDIENCE:

Generally Potato Chips are targeted towards all age groups differentiated in
taste. For e.g. Premium Chips (Normal salty chips) are targeted towards Kids & Old
age group due to their softness, even further it is more specifically targeted based
on taste, like Premium Salted is targeted towards kids and Both Premium salted /
Spicy are targeted toward all age groups.

BANANA CHIPS:

 MARKET PLAYERS:

PRICE
BRANDS PRODUCT PACKAGE
RANGE
Packed in Polly Propane Plastic
Black Pepper Pouch with pre-printed Brand
Rs. 120 /-
GARDEN Salty Yellow Name & Logo, Item Name &
Per Kg
Spicy Red Package Details and MRP and
Expiry Date
Black Pepper Packed in Polly Propane Plastic
Rs. 100 /-
JANTA Salty Yellow Bags With Brand Name and Price
Per Kg
Spicy Red Tags.
Black Pepper
Rs. 80 /-
OTHERS Salty Yellow Packed loose in plastics bags
Per Kg
Spicy Red

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

There are no recognized brands in this category. The majority of the banana
chips sector is captured by local manufacturers distributing it loose to the retailers,
who then packs it in 150gm (Rs.12/-), 250gm (Rs. 20/-) & 500gm (Rs. 35/-) in a
normal plastic bags with only price stickers stuck to it. Tomato punch to this
category of chips has been a runaway success.

 MARKET LEADERS:

Majority of the market share i.e. 65% is divided amongst the unorganized
sector distributing it locally, Garden being the major player amongst the local
brands with 27% and the remaining is distributed amongst the other local brands
like Raghuvansi, Janta, Chedda, etc.

 TARGET AUDIENCE:

Banana Chips like potato chips are targeted towards all age groups; the
Spicy Red Flavor is generally targeted to young and middle age groups whereas the
tomato punch is targeted towards kids and old age groups.

NAMKEENS:

 MARKET LEADERS:

BRANDS PRODUCTS PRICE RANGE PACKAGES

Alu Bhujia Rs. 20/- Packed in Aluminum


FRITO'S-
Bikanari Bhujia Per 200Gm vacuumed Packs with
LEHAR Gujarati Khatta Metha pre-printed Brand
Navratna Mix Name, Item Name,
Natiyams Rs.20/150Gm MRP and Expiry Date
(Moong Dal Masala
Punch) Rs.5/30 Gm
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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

Alu Bhujia Packed in Aluminum


Rs.42/400 Gm
Bikanari Bhujia vacuumed Packs with
HALDIRAMS Rs.20/200 Gm
Mix Farsan pre-printed Brand
Chevada Rs.3/30 GM Name
Spicy / Salty Sev
SM FOODS- Bhujia
Packed in Aluminum
PEPPY Chevada Rs.5/50 Gm
vacuumed Packs
NAMKINS Sev
Nadyadi Chevada
Packed in Polly
Sev Rs.60/80
GARDENS Propane Packs With
Chevada Per Kg
Brand name & MRP.
Mix Farsan
Sev
Packed In plastic
OTHERS Chevada Rs.60 / Kg
Packs
Mix Farsan

There are many other local manufacturers with different varieties of namkeens
ranging from Rs.60 to Rs.80 per kg. Fried Cashews and other dry fruit items are
most costly ranging from Rs.200 to Rs.250 per kg and are generally available loose
as per the consumer's requirements.

 MARKET LEADER :

Haldirams Bhujia is a market leader in this category whereas Frito-Lehar


captures the majority of the market for the small packs ranging from Rs.2 to Rs.10.
Other players like Garden, Raghuvansi, Chedda etc hold a majority of the market
for Chevada & Sev. SM FOODS has been recently introduced Peppy Namkeens.

 TARGET AUDIENCE :

Namkeens are generally targeted towards all age groups and the target
differentiated is based on regional taste preference for e.g. Bhujia's are famous in
Rajasthan whereas Chevada's are famous in Gujarat & Fried Cashews is most
preferred in Goa.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

FUN-FOODS:

 MARKET PLAYERS :

BRANDS PRODUCTS PRICE RANGE PACKAGES

FRITO- Masala Rs.5/22 Gm


Packed in Aluminum
Twistys Rs.10/55 Gm
KURKURE vacuumed Packs
Red Chili Chatka Rs.20/140 Gm
Peppy Cheeseballs
SM FOODS Peppy Ringos
Rs.5/15 Gm Packed in Aluminum
Piknik Corn puffs
PEPPY Rs.10/33 Gm vacuumed Packs
Peppy Hi protein crispies
Peppy Minerette
Packed in Aluminum
BONKERS Cheeseballs Rs.5/30 Gm
vacuumed Packs
Salty FRAIAMS
OTHERS Rs.5/75 Gm Packed in Plastic Bags
Spicy FRAIAMS

There are many local players in this category that deal only in FRAIAMS and
others fried Fun-Foods. Generally Consumers are willing to purchase the branded
ones because they come in many different tastes like Red Chili Chatka, Cheseeballs
etc.

 MARKET LEADER :

Since they are very few players in this category, PEPPY Products holds
majorities of the market share especially Cheeseballs & FRAIAMS. Frito's-Kurkure is
new to the market but still is at the second place. Bonkers and others cover a small
segment.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

 TARGET AUDIENCE :

Fun-Foods is generally targeted to Kids & Youths who do majority of


purchase. Fun-Foods and less preferred by middle age and old age groups. But
Frito's-Kurkure is targeted in general as it can be also categorized under Namkeens.

 PACKAGING:

Leading players try to woo consumers with attractive packaging and designs.
Generally all branded companies uses the technology of packing the product with
nitrogen filled aluminum vacuumed pouches, which help to keep the product fresh
for a longer shelf life, but also increases the cost. Smaller manufacturers like
Garden Foods, Raghuvanshi Exports, Janta etc use Polly Propane plastic pouches for
packaging the products.

The pouches are pre-printed with Company Name, Brand Name, Product
Name, Ingredients, Mfg. Date & Best Before Date. MRP is then stamped by a
machine before packing the products.

Generally these packs are provided to the retailers in a series (Lar Form)
with a hanging stand. When the products are to be distributed outside the country
or in a bulk then the pouches are packed in Boxes with Company Name, Item Name
& Brand Name printed on it.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

 COSTING & PRICING:

Raw material and packaging are the two major cost components. The
organized players follow rigorous quality control of raw material and maintain high
hygiene standards at their manufacturing facilities. This results in a much higher
cost of production, thereby making them price uncompetetive in comparison to
there small scale unorganized counterparts.

Packaging is a major cost, accounting for half the price of the product.
Normal Polly propane plastic bags costs on an average Rs.2 per pack whereas the
aluminum packs costs around Rs.2 to Rs.4.5 approximately based on size. The
Boxes cost around RS.5 (Minimum) to Rs.32 (Maximum) based on size and quality.

Generally manufacturing companies have a profit margin of around 20% to


25%. Local Retailers are given 30% to 35% margin whereas in case where the
products are distributed through distributors the margin of 30% to 35% is
distributed amongst the Distributors, Super Stokers & Retailers.

For e.g. A 55gm pack of Frito's-Kurkure is pricing around Rs.10 of which Rs.3
is distributed amongst Distributors & local Retailers. Out of the remaining Rs.7
Companies profit is around Rs.1.75 to Rs.2. Packaging costs around Rs.2 and
distribution and manufacturing costs around Rs.3 to Rs.3.25.

 DISTRIBUTION:

Distribution is also one of the key parameters for expanding market share.
Frito-Lays has the advantage of access to Pepsi's a formidable distribution network
whereas products like Uncle Chipps is retailed through around 600000 outlets
across the country.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

Generally Companies are having their sales vehicles that are loaded on daily
basis and are distributed to local retailers. Some companies appoint Distributors.
Distributors have to give a proposal with a market research like storage facilities,
infrastructure, retail outlets in area, market leader, types of products available in
the market etc. In some companies the products are delivered to the retailer twice
a week (e.g. Frito India), while in some companies on daily basis (e.g. Garden).
The products are generally sent in Boxes on an average each box contains 80 packs
of 30 gm or 30 packs of 150 gm.

Distributors are solely responsible for the sales in the particular area he is
operating in. Every Distributor should have a specified number (varying from
company-to-company) of minimum shops in his area. Distributors generally have
small vans (rickshaws) and employ salesmen on commission basis who loads the
products from the distributors storage and distributes it amongst the retailers.

Companies nowadays have even started distribution through their websites.


For e.g. companies like SM FOODS have recently launched a website
Peppyland.Com, which, apart from being an interactive medium for kids, will also
deliver its brands at their doorstep. It services one-lakh retail counters across the
country by employing a total strength of 300 sales personnel and distributors
nationwide.

 CONSUMER'S PROFILE:

Snack foods are impulse purchase products, and there is an element of


indulgence associated with them. It does not figure very high on the shopping list.
A consumer buys it only if it catches his eye at the outlet or is accompanied by a
child who finds potato chips a fun snack. So leading players have stressed on

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

attractive packaging and promotions targeted at children to increase consumption.


As these products are general fun eat, brand loyalties are not strong and
consumers look for novelty and new flavors. There is no notable difference in
consumption pattern across various age groups.

Snacks like Wafers & Chevadas are generally preferred for the daily
consumption whereas fun-foods like Cheeseballs and Twistys are sold more in
schools, Colleges, Railway Platforms and Movie Theatres. Kids generally prefer Fun-
Foods whereas all age groups generally prefer Wafers and other snacks.

Taste varies widely across the regions. For instance in South, banana chips
are extremely popular which do not find many acceptances in other parts of the
country. In east, Paaprichaat is very successful whereas in Mumbai, tomato punch
has been a runaway success.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

 SAMPLING DESIGN:

 TARGET POPULATION

The respondents are classified in two categories i.e., Retailers & Consumers.
Retailers are surveyed to know the actual purchase of the consumers; whereas the
Consumers are surveyed to know their preference. All the respondents were above
the age of 18 and are residents of Mumbai city.

 SELECTING A SAMPLING TECHNIQUE

The sampling was done on a random basis whereby the respondents visited and
primary data is collected. The Respondents were selected as per convenience
sampling.

 RESEARCH DESIGN:

A research design expresses both the structure of the research problem and plan of
investigation used to obtain empirical evidence on relation s of the problems. The
research design was Exploratory in nature. The Exploratory research is done to
provide insights into, and an understanding of, the problem confronting the
researcher.

As Exploration research serves the other purposes like the area of investigation
may be so new or so vague that a researcher needs to do an exploration just to
learn something about the dilemma facing the manager.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

The Exploratory research benefits from the use of the following methods:

1. Survey of Experts.

2. Pilot Surveys.

3. Analysis of Data.

4. Qualitative Research.

Secondary Data and the Data from the Questionnaire were used to do the Analysis.

This Exploratory research was done to give the insights about Consumers buying
behavior. The factors affecting their purchase of Ready-To-Eat Snacks & Namkeens

 DATA COLLECTION:

The Primary data was collected through questionnaire administered to both


Retailers & Consumers.

The questionnaire method was selected because it translated the information


needed into a set of specific question that the respondents can and will answer. The
questionnaire motivates and encourages the respondents to become involved in the
interview to co-operate, and to complete the interview.

Another advantage of the questionnaire is that it minimizes the response error. The
Secondary Data was collected through Internet, Business journals.

The questionnaire was designed keeping the overall objectives and the information
required. The questionnaire given to Retailers was aimed to finding out the present
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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

purchasing pattern for Ready-To-Eat Snacks & Namkeens. The questionnaire


administered to the Consumers was aimed at finding out their preference & factors
affecting their purchase decision for Ready-To-Eat Snacks & Namkeens.

 DATA ANALYSIS :

Data Analysis is being done arranging the data in tabular forms. Graphical
Representation and using SPSS Software.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

 CONSUMERS BUYING BEHAVIOUR ANALYSIS:

 RETAILERS POINT OF VIEW

1. Generally preferred as Ready-To-Eat Snacks;

Out of the 50 retailers surveyed 26 of them feels that the consumers generally
prefer Wafers as the best form of Ready-To-Eat Snacks as they are available in
many flavours which gives them a variety to choose. Whereas 15 believe that
Namkeens are usually preferred & 9 has the opinion that Fraiams are mostly
preferred.

most preferred ready-to-eat snacks

Cumulative
Frequency Percent Valid Percent Percent
Valid Wafers 26 52.0 52.0 52.0
Namkeens 15 30.0 30.0 82.0
Fraiams 9 18.0 18.0 100.0
Total 50 100.0 100.0

S t a t is t ic s most preferred ready-to-eat snacks


60

m o s t p r e fe r r e d r e a d y - to - e a t s n a c k s
Percent most preferred ready-to-eat snacks

N V a lid 50 50 52

M is s in g 0
M ean 1 .6 6 0 0 40
S td . E r r o r o f M e a n .1 0 9 2
M e d ia n 1 .0 0 0 0 30
M ode 1 .0 0 30

S td . D e v ia tio n .7 7 2 2
20
M in im u m 1 .0 0 18

M a x im u m 3 .0 0 10
Wafers Namkeens Fraiams

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

2. Consumers Preference of brands vis-a-vis their acceptance;

30

Brand preference * consumer asks for Crosstabulation

Count
consumer asks for
20 21
yes, but
accepts noccepts

Count
yes they do anything anything Total
Brand branded 6 4 1510
preference Unbranded 21 21 consumer asks for
anyhing 10
4 15 19
yes they do ask for
Total 6 29 15 50
yes, but accepts any
6
Out of the 50 retailers surveyed 4 4 thing

20% of the retailer says that the 0 no accepts anything


branded Unbranded anyhing
consumers asks for a particular
brand of snacks. Of this 10 Brand preference

consumers 60% of them are brand loyal, whereas 40% of them prefer whatever is
available. 42% of consumers do initially asks for brand but they also fall in the
category of the 40% of the consumers who asked for brand i.e. they prefer
whatever is available. Remaining 38% of the consumers are not worried about
brand they just ask for particular product and buy branded if available or anything.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

3. Consumer's preference of pack vis-à-vis quantity of packs generally bought;


W HICHSIZEISPREFERRED* INW HATNUMBERSCrosstabulation
Symmetric Measures
Count
Asymp.
INW HATaNUMBERS b
Value Std. Error Approx. T Approx. Sig.
1-2 3-4 5-6 c
Total
Interval by Interval WHICPearson's
HSIZEISR 16 .283 .102 2.042 .047
18 18
Ordinal by Ordinal Spearman c
PREF ERRED Correlation 32 .319 22 .096 2.328
3 .024
1 26
N of Valid Cases 100 50 4 2 6
a. Not assuming the
Totanull
l hypothesis. 44 5 1 50
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation. 30

Out of the 50 retailer surveyed 18 of them


says that the consumers generally prefer 22
20
the pack of 16gms i.e. of Rs.10/-, whereas
18
Count
26 of them are of the opinion that pack of
32gms is more preferred by the
10 IN WHAT NUMBERS
consumers. Only 6 of the retailer feel that
1-2
the consumers prefer 100gms pack. Almost
3-4
4
88% of the retailers say that consumers 3
2
0 5-6
generally buy 1-2 packs, whereas only 16 32 100

10% say that they buy 3-4 packs. Only 2% WHICH SIZE IS PREFERRED

of the retailers say that they buy 5-6 packs. This clearly depicts that Ready-To-Eat
Snacks and Namkeens are generally considered as Time Pass Food and are not
generally stocked by the consumers.

4. Brands generally stored by the consumers;

WHICH BRAND STORED

Cumulative
Frequency Percent Valid Percent Percent
Valid RUFFLES 13 26.0 26.0 26.0
LAYS 11 22.0 22.0 48.0
HALDIRAM 15 30.0 30.0 78.0
GARDEN 6 12.0 12.0 90.0
PROJECT REPORT
JANTA ON READY-TO-EAT SNACKS
5 10.0 10.0 100.0 20
Total 50 100.0 100.0
N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH
Statistics WHICH BRAND STORED
WHICH BRAND STORED
JANTA
N Valid 50
10.0%
Missing 0 RUFFLES
Mean 2.5800 GARDEN 26.0%
Median 3.0000 12.0%

Mode 3.00

Out of 50 retailers surveyed


almost 100% of them generally

HALDIRAM LAYS
30.0% 22.0%

5. Consumers preference of Product Categories.

PRODUCTS / CONSUMERS CHILD YOUNG OLD TOTAL

WAFER 7 15 28 50

NAMKEENS 2 39 9 50

FRAIAMS 35

40
39
35
35
30
28
25
C H IL D
9 6 50
20
YOUNG
15 15 OLD
10
9 9
5 7 6
2
0
W AFER N A M K E E N S F R A IA M S

Out of the 50 Surveyed Retailers 28 of them feels that old age consumers prefer
Wafers. 15 of them feel that young age people prefer Wafers, whereas 7 feel that
children's prefer Wafers. As far as Namkeens are concerned 39 of them says Young

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

prefers Namkeens most, Whereas 9 feels old prefer Namkeens and only 2 feels that
children's prefer Namkeens. In case of Fraiams 70% of them agrees that Children's
are more interested in Fraiams i.e. Cheese Balls etc., whereas 18% of young &
12% of the old age consumers are interested in eating Fraiams as Ready-To-Eat
Snacks & Namkeens.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

 CONSUMERS POINT OF VIEW

1. Consumers Association of Ready-To-Eat Snacks & Namkeens

Product Association

Cumulative
Frequency Percent Valid Percent Percent
Valid Time Pass 21 42.0 42.0 42.0
Tasty Food 18 36.0 36.0 78.0
Hunger Quencher 11 22.0 22.0 100.0
Total 50 100.0 100.0

Product Association
30
Frequency

20 21
18

10 11

Std. Dev=.78
Mean=1.80

0 N=50.00
1.00 1.50 2.00 2.50 3.00

Product Association

Out of 50 consumers surveyed almost 42% of them generally associates Ready-To-


Eat Snacks & Namkeens with Time Pass. But given a specific option 36% of them
associates it with Tasty Food, 22% as Hunger Quencher.

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N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

2. Consumers prefer Ready-To-Eat Snacks & Namkeens during

Generally eats during

Cumulative
Frequency Percent Valid Percent Percent
Valid Whenever Feel Hungry. 28 56.0 56.0 56.0
During Movies or while
18 36.0 36.0 92.0
watching TV
Any Time of the day 4 8.0 8.0 100.0
Total 50 100.0 100.0

Statistics Generally eats during


Generally eats during
N Valid 50 Any Time of the day
Missing 0 8.00 / 8.0%
Mean 1.5200
Median 1.0000
Mode 1.00

Since Ready-To-Eat Snacks During Movies or whi

36.00 / 36.0% Whenever Feel Hungry


& Namkeens are associated 56.00 / 56.0%

with mostly Time Pass they


generally i.e. 36% of time
eaten when the consumer
are in entertaining mood.
Majority of the consumer's
i.e. 56 eats it whenever they feel hungry. Mostly Namkeens are more preferred as
hunger quencher. Only 8% of the consumers are ready to eat Ready-To-Eat Snacks
& Namkeens any time of the day. Fraiams are majorly eaten whenever the
consumers are watching movie or TV. Wafers on other hand are eaten any time of
the day; no specific time or mood is associated with eating of wafer.

PROJECT REPORT ON READY-TO-EAT SNACKS 24


N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

3. Consumers purchase vis-à-vis their storing habits

Symmetric Measures

Asymp.
a b
Value Std. Error Approx. T Approx. Sig.
Interval by Interval Pearson's R c
-.312 .148 -2.274 .027
Ordinal by Ordinal Spearman Correlation c
-.319 .145 -2.329 .024
N of Valid Cases 50
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

Stores * how often purchased Crosstabulation


30

Count 28
how often purchased
on regular
NO OF CONSUMERS

1-2 week 3-4 week 5-6 basis Total


20
Stores Yes 4 1 4 2 11
No 28 6 5 39
Total 32 7 4 7 50
how often purchased
Out of 50 consumer surveyed 78% of 10
1-2 week
them do not store Ready-To-Eat
3-4 week
Snacks & Namkeens. Of which 28 of 6
5 5-6
4 4
them buy 1-2 packs, 6 buy 3-4 packs 2
0 on regular basis
and 5 buy on regular basis. Yes No

Remaining 22% generally stores PRODUCT STORED

Ready-To-Eat Snacks & Namkeens. Of


which 4 buy 1-2 packs, 1 buys 3-4 packs, 4 buy 5-6 packs and 2 of them buy on
regular basis.

PROJECT REPORT ON READY-TO-EAT SNACKS 25


N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

4. Consumer rating of their Preference

PRODUCT/PREFERENCE WAFERS NAMKEENS FRAIAMS

MOST PREFERENCE 28 23 12

GENERALLY PREFERENCE 18 18 30

LEAST PREFERENE 4 9 8

TOTAL 50 50 50

Out of 50 surveyed
100% 4 consumers 28 of them
9 8
90%
80% prefer wafers, 23 of
18
70% 18 them prefer Namkeens
60% 30 LEAST PREF and only 12 of them has
50%
40% the Fraiams as there
30% 28 GENERALLY most preferred option.
23 PREF
20%
12 As far as the 2nd
10% M OST PREF
0% preference of the
NAMKEENS

FRAIAMS
WAFERS

consumer is concerned
18 of them prefers
Wafers, 18 prefer
Namkeens and 30
prefers Fraiams. With reference to the consumers least preference only 4 of the 50
surveyed consumers prefer wafers as their last option; whereas 9 of them has
Namkeens as their last option and 8 of the has Fraiams as their last option. Fraiams
as whole is generally been selected as substitute to Wafers & Namkeens.

PROJECT REPORT ON READY-TO-EAT SNACKS 26


N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

 MARKETING & ADVERTISING STRATEGIES:

 Market Research is been conducted amongst the retailers before


launching of any new product under any categories.

 Branded products are generally advertised through TV ads, which are


supported by POPs & other promotional materials hanging at the retail shops.

 Companies like Garden Foods have their distribution vehicles painted


with the product name and item names that move around the market, which
in a way is publicity for them. They even organize a snack fair once in a year
in Bandra Reclamation Club and invites other manufacturers to have their
stalls in the fair.

 Companies generally provide iron racks to be kept in the retail shops


for which the retailers are given a margin of 4% to 5% extra. Companies like
Frito-India on regular basis send some marketing tips to their distributors.

 SM Foods PEPPY has also launched certain promotions for both its
dealers (scratch and win contests) and consumers (Wheels and Wings, a do it
yourself toy) to make its brands more popular.

 Companies provide incentive schemes to their distributors on


achievements of certain targets. Some companies even distribute awards for
the highest sales amongst the distributors.

Normally local brands & small manufacturers do little advertising through


sales vans and POPs. Companies like SM Foods, Frito-India etc. uses Print and
Audio-Visual medium for advertising their products.

PROJECT REPORT ON READY-TO-EAT SNACKS 27


N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

Generally the company launches a new product in the market and then starts
advertising on media and the POPs and other promotional activities back these ads
by the companies.

 FACTS & FIGURES:

 The Growth rate of Fun-Foods Market is expected to grow by 8%


whereas market for Potato Chips is expected to grow by 9.3% by the end
2006-2007.

 Demand of Potato Chips/ Namkeens is expected to reach 790 thousand


Metric Tonnes whereas For Fun-Foods is expected to reach Rs. 50 bn by the
end of 2006-2007.

 SM Foods has grown from a sales turnover of Rs 5.96 crore in 1993-94


to Rs 29 crore during 1999-2000. This marks a growth of over 350 per cent
over a period of five years, a growth rate of 77 per cent each year.

 SM Foods has earmarked more money for marketing this year and is
spending close to Rs.5 crore on a media blitz.

 Uncle Chipps a Delhi based food products company has an annual


turnover of Rs600mn.

 Garden Foods has a daily sales turnover of around 8-10 thousand-kg.

 Britannia Industries Ltd has introduced a new range of traditional


Namkeens called Britannia Snax in Mumbai. Targeted at the youth segment,
the new range includes seven varieties of traditional Namkeens like `Bikaner

PROJECT REPORT ON READY-TO-EAT SNACKS 28


N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

ki Bhujia' and `Rajas-thani Alu Bhujia'. The new range is priced between Rs 5
and Rs 20.

(SOURCES: Market Indicators & Forecast 2002 edition)

 CONCLUSION & RECOMMANDATION:

Ready-to-eat snack food industry is quiet a potential market with consumers


not being brand loyal there is always a scope for new entrants with new innovative
products. Consumers generally like to try some new products emerging in the
markets.

There are no recognized brands in Banana Chips in India, which is a highly


potential market. Products like Popcorns have not yet touched the Indian market
i.e. there are no branded popcorn packs, which can be persevered for few days.
Small-unorganized local manufacturers capture the majority of the market share in
14-bn snacks food industry.

Branded players have attractive packaging to woo the consumers, which in


turn increases their prices in comparison with their regional counter-parts.
Companies keep on coming up with new schemes like a pack of 100Gm free with
2Kg etc. recently companies have also started given freebies along with the product
for e.g. the companies give free Tattoo with the packs to attract Kids.

Due to lack of brand loyalty product reach and availability is most important
for increasing the market share, so Distribution channel plays a major role.
Companies need to encourage their distributors with some incentives or gifts.
Companies should provide proper training on marketing and sales to their
Distributors as well as Sales Force.

Overall ready-to-eat snack food market is estimated at 350,000 ton, of which


the organized market for chips is estimated to be 6500 tons valued at Rs2bn. The
PROJECT REPORT ON READY-TO-EAT SNACKS 29
N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

market for branded chips has been growing at a fast pace of around 20 per cent.
Today the companies are entering more into Namkeens category as there are very
few players and the Namkeens are of regional tastes.

PROJECT REPORT ON READY-TO-EAT SNACKS 30


N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

 APPENDIX : (QUESTIONAIRE FOR RETAILERS)

1. Which of these Ready-To-Eat Snacks & Namkeens is most preferred by


consumers?

ο Wafers ο Namkeens ο Fraiams

2. Which of these do the consumers mostly prefer?

ο Branded Snacks ο Unbranded Snacks ο Any of These

3. Does the consumers asks for the particular flavour or they prefer any flavour?

ο Yes, they do ask for particular flavour.

ο Yes, they do ask for particular flavour but if not available prefer whichever is
available.

ο No, they accept whichever flavour is available.

4. What is generally preferred by whom?

ο Wafers preferred by _________________________________________.

ο Fraiams preferred by _________________________________________.

ο Namkeens preferred by _________________________________________.

5. Which size of pack do the consumers generally prefer?

ο 16 gms ο 32 gms ο 100 gms ο 500 gms ο 1kg

6. Which of this brand do you store?

ο Ruffles ο Lays ο Haldirams ο Garden ο Janta

7. What number of packs do the consumers generally buy?

ο 1-2 ο 3-4 ο 5-6


PROJECT REPORT ON READY-TO-EAT SNACKS 31
N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

(QUESTIONAIRE FOR CONSUMERS)

1. What do you prefer to have as Ready-To-Eat Snacks?

ο Wafers ο Namkeens ο Fraiams

2. With what do you associate Ready-To-Eat Snacks & Namkeens?

ο Time Pass ο Tasty Food ο Hunger Quencher ο Just like Other

3. When do you generally have Ready-To-Eat Snacks & Namkeens?

ο Whenever Feel Hungry.

ο During Movies or while watching TV.

ο Any Time of the day.

4. Do you store Ready-To-Eat Snacks & Namkeens?

ο Yes ο No

5. Rate the products from 1-3 among as per your preference (With 1-most
preferred 3-least Preferred)?

ο Wafers ο Namkeens ο Fraiams

6. Which of this brand do you store?

ο Ruffles ο Lays ο Haldirams ο Garden ο Janta

7. How often do you buy such Ready-To-Eat Snacks & Namkeens?

ο 1-2 a week ο 3-4 a week ο 5-6 a week ο On Regular Basis

PROJECT REPORT ON READY-TO-EAT SNACKS 32


N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

 BIBLIOGRAPHY:

I thank the following people for providing valuable information & guidance

 Mr. Rajeev (Marketing Executive, Garden Foods)

 Mr. Rajesh Gandhi (Sales Supervisor, SM FOODS)

 Mr. Rajesh Shah (Distributor, Frito-Lays)

 Local Retailers

 Consumer Respondent

PROJECT REPORT ON READY-TO-EAT SNACKS 33

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