A Report on

HOW CAN READY TO EAT

MIXES BE MARKETED BETTER?

Abhishek Singh

DM22204

20th August , 2021

Table of Content

1. Title

2. Overview

3. Personality & consumer Behaviour

4. Personality traits affecting consumer behaviour

a. Consumer innovativeness

b. Optimum Stimulation Level(OSL)

c. Need for Cognition(NFC)

d. Need for Closure(NFCL)

e. Technology Readiness

5. Personality does not matter to a Marketing Manager

a. In a B2B market, the consumer’s personality is irrelevant.

b. In a commodity Market, the buyer’s personality is irrelevant.

c. In a fully global firm, the buyer’s personality is irrelevant.

6. Personality matters to a Marketing Manager

a. The buyer’s personality determines the things’ worth.

b. A consumer’s lifestyle and personality factors influence his purchase decision.

c. Personality influences high involvement product purchases.

7. Conclusion

8. References

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 Executive Summary

Food is one of a person's most fundamental requirements. It is necessary for the proper

functioning of body parts as well as for healthy growth. Because of its convenience, value,

appealing appearance, flavour, and texture, consumers are becoming more interested in ready-to-

eat (RTE) snack foods. Price, convenience, taste, and nutrition are all elements that influence

customer behaviour. Ready to Eat (RTE) foods are pre-cleaned, pre-cooked, and processed foods

that can be heated and consumed immediately. The following are the primary products sold in

this market: - instant noodles, pasta, and rice meals, soups, snacks, ready to mix food.Rapidly

available and affordable instant noodles have the biggest growth potential. After instant noodles,

pasta and soup makers are exhibiting the best returns, and this is creating a new area of

competitiveness for FMCG companies.

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 Introduction

After a long day at work, you stumble in the home door at 9 p.m., and the last thing you want to

do is prepare for the family. In an ideal world, supper would always be prepared ahead of time,

and the ensuing mayhem at the dinner table would alleviate the day's tension rather than add to it.

RTE (Ready-To-Eat) foods are pre-cleaned, pre-cooked, mainly packaged, and ready for

consumption without prior preparation or cooking, such as cup noodles, concentrated curries,

and so on. RTC (Ready-To-Cook) foods are those that include all of the components but require

some preparation or cooking via a technique outlined on the packaging, such as cookie dough or

gulab jamun mix.

As an independent body, the (FSSAI) tests each consignment that comes in India, and the

evolving food safety criteria are expected to enable the manufacturing of high-quality ready-to-

mix food and customer safety, but from the point of view of manufacturers, these severe laws are

likely to hinder the expansion of their ready-to-mix food operations.

A compound annual growth rate (CAGR) of 16.24 percent (based on value) is predicted for the

ready-to-eat market in India from 2019 to 2024, resulting in revenues of INR 68.47 billion by

2024 Market leaders include MTR, ITC, Britannia Industries, Dabur India Limited, Godrej

Agrovet Limited, and Heritage Foods.

DRIVING FACTORS: WHY READY TO EAT FOOD (RTE)?

● Process of Indian food and its culture are the core factors for the popularization of being

able to eat foods.

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 ● Main motivation for those able to eat foods is the quickly growing foreign market.

● Retail outlet culture is currently growing quickly in Asian countries.

● Shell lifetime of these foods area unit a minimum of 12-18 months.

● Quality, style and flavor of those foods remains nearly as good as recent up to the

termination date.

● A lot of operating bachelors staying removed from homes.

Latest Trends:

● Favourable government initiative across the country for better healthy eating.

● Increased adaptation of new technologies are encouraging market growth.

● Increase demand from global consumers for Indian ready to eat food.

● Rising income & consumption levels of regional consumers.

● Increase dependence on Indian RTE food owing their nutritional content & taste.

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Segmentation:

The global Indian Ready to Eat Food market has been segmented based on factors such as

product type, distribution channel, and global geography. It is separated into two categories

based on product type: frozen ready-to-eat and shelf stable ready-to-eat. Retail Sales,

Supermarket, Hypermarket, Online, Tradition Retail Store, General Store, and Institutional Sales

are the distribution channels.

In 2018, the ready-to-eat breakfast cereals segment had the highest market share (34.8%),

followed by shelf-stable ready meals (21.97%) and shelf-stable fruits and vegetables (20.3%).

The increased awareness of the negative consequences of cholesterol among India's youth has

resulted in a significant demand for ready-to-eat morning cereals.

Among the various sectors of the Indian ready-to-eat market, ready-to-eat breakfast cereals are

predicted to increase at the quickest year-on-year rate (19.85 percent) between 2019 and 2024.

Baggry's, Kellogg's, and Nestle are some of the most popular ready-to-eat morning cereal brands

in India.

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 Marketing Strategies

1. Targeting: The initial goal is to achieve maximum penetration among the employed and

student parts of the urban middle class, as these groups are rising at a consistent rate.

According to recent research, the employed middle-class segment relies the most on RTE

meals due to the time restrictions that come with living their life with the increase in the

number of working women in the houses.

2. Positioning: The RTE segment as a whole is positioned as a dependable, trustworthy,

and delectable set of items that provide consumers with convenience through quick

cooking. It is regarded as the greatest option for supper by working adults who do not

want to devote a lot of time and effort to their preparation.

3. Distribution: Ready-to-eat foods are widely accessible in various supermarkets as well

as traditional grocery stores. They are now available on online grocery stores such as Big

Basket and Amazon. Nestle - Maggi Cup Noodles, for example, have been successful in

penetrating college canteens and cafeterias, as well as other Out-Of-Home (OOH).

4. Exploit Market Gaps: Ready-to-eat meals have been strategically positioned to meet the

growing need for easy and time-saving eating options. In this market, the category

competes with similarly fast-growing substitutes such as dining out or ordering from

restaurants. To maintain a competitive advantage, food giants have been careful to

advertise their products at a reasonable price. A normal vegetarian ready-to-eat dish for

one person costs between Rs. 25-50. Because of this cheap price, ready-to-eat meals can

be positioned as a more cost-effective alternative to the generally more expensive

restaurant or fast food meals.

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5. Affective advertising and celebrity appeal: The scarcity appeal and the comedy appeal

are two types of appeals that promote the impulse consumer. Humor appeal can be

advantageous for RTE products such as packaged snacks. Creating product variants such

as limited edition packaging and exotic new flavours can aid in market research by

gauging customer interest in the new variant as well as helping to generate buzz for the

product. This has shown to be effective for potato chip businesses such as Lays, Kurkure.

Creating effective advertising with celebrities as mothers for ready-to-cook meals would

be a great way to connect with Indian working mothers Example: Maggie.

6. Brand Diversification: To meet customers' desire for variety, businesses in the RTE

sector frequently experiment with packaging and flavours. It is also possible for them to

venture into better eating options such as protein bars, snack bars, cold pressed juices,

and so on. This has proven to be effective for ready-to-cook brands such as MTR, Nestle,

Haldirams, Knorr, and ID Fresh foods.

7. Hedonic Benefits: There are numerous examples of advertising that create an emotional

connection with consumers by providing a nostalgic sensation about the product. RTE

brands may also try similar initiatives that focus more on digital media to advertise,

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 which would not only save money but also reach out to the youth more effectively. MTR

has long exploited this in their promotions, such as advertising their gulab jamun mix

during the festive season and the iconic “Maa ke hath ka khana” advertisement, in which

the mother cooks a different breakfast for each member of the family.

8. Packaging: Taking into account the distinction between hedonic and utilitarian products,

it demonstrates how the colour of food packaging, as well as nutrition content claim

(NCC) labelling, can influence consumer perception of food healthiness and purchase

intention. Consumers have the impression that RTE products are overpriced, which could

be due to the packaging. These products can improve their packaging by supplying

compact, low-cost packs. It should be supplied more like a cup noodles pack, where

travelling clients can simply add hot water and enjoy the meal.

9. Strengthen ties with retailers: Companies such as Big Bazaar have been able to

achieve sales growth rates of 30-50% annually just by collaborating with suppliers. In

today's market, suppliers mostly provide training to retailers' sales staff and shelf

placement suggestions. Retailers believe that store-specific discounts and promotional

offers, as well as additional communication materials to put on the shelves, could help

improve sales in addition to this. A retailer's scale makes it impractical to absorb such

marketing costs for a relatively small segment. Ready to Eat manufacturers, on the other

hand, have every motivation to invest in this field as the market becomes increasingly

crowded. To do this, players must assist their retail channels in order to keep their brand

at the forefront of the Indian consumers' minds. Their customer base would grow and

their market share would increase as a result.

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 Success Story

ITC: Curry pastes, masala mixes and ready-to-eat meals have become increasingly popular in

India thanks to the efforts of ITC. It has been said that "we are a nation of foodies". ITC Foods

CEO Chittaranjan Dar says that not only do different states have their unique regional cuisines,

but each home adds its own secret subtleties when creating traditional foods.

It is true that women have always prepared their own food but urbanisation and an increase in

working women have led to a shift in food consumption habits. There's a large segment of the

white-collar middle class that is increasingly looking for convenience in their food. According to

the ITC, when people eat, one of the meals is a showpiece. ITC's “Kitchens of India” gourmet

cuisine may not be included in this lunch, but it does include a dal bukhara, a dish that requires

delicate cooking that is difficult to recreate. No matter what the food is, whether it's dal bukhara,

which is cooked overnight in traditional methods in a tomato-ginger-garlic sauce, or whether it's

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pindi chana, Hyderabadi korma, each dish has its own textures and spices, based in the region

where it's from.It has taken ITC 20 years to gain a 30% market share in this Rs 261 million

sector, thanks to the debut of its Kitchens of India range. The FMCG giant hopes that its gourmet

Indian cuisines, designed by ITC hotels' top chefs, would allow clients to enjoy good dining in

the comfort of their homes.

Conglomerate does not limit itself to the home market, but also to the international market. As

part of the diverse ITC Group, ITC Foods began exporting its prepared meals last year to non-

resident Indians and food enthusiasts around the world.

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 Conclusion

According to the consumers' behaviour, occupational, cultural, and taste aspects influence their

purchasing decisions. Spending time in the kitchen is not something they enjoy doing. As a result

of RTE food market segmentation based on food-related lifestyles, marketing strategies may be

developed to better match consumers' goals and needs, which results to higher consumer

satisfaction and increased sales of RTE foods.

References:

● https://www.researchandmarkets.com/reports/5017295/ready-to-eat-market-in-india-2020

● https://www.globenewswire.com/news-release/2020/05/01/2025982/0/en/Assessment-of-

India-s-Ready-to-Eat-RTE-Industry-to-2024-RTE-Breakfast-Cereals-Projected-to-

Experience-the-Fastest-YoY-Growth.html

● https://www.themarkes.com/post/how-can-ready-to-eat-and-ready-to-cook-mixes-be-

marketed-better

● https://aswathicherkkil.medium.com/marketing-ready-to-eat-products-17eb60e8e13b

● https://www.futuremarketinsights.com/reports/global-ready-to-eat-food-market

● https://www.kanvic.com/grey-matter/growing-indias-ready-to-eat-market

● https://www.alchemymarketresearch.com/food-beverages/indian-ready-to-eat-food-

market

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