Consumer Preference Towards RTE Foods Post COVID-19

Food Processing and Business Management (FPBM)

by
M. Meenakshi Sundaresan
Roll No. 04PGDM FPBM 17

Submitted to:
Dr. Ganeshkumar C
Assistant Professor
IIPM

INDIAN INSTITUTE OF PLANTATION MANAGEMENT,

BANGALORE
(An Autonomous Organization of the Ministry of Commerce and Industry –
Govt. of India)

Jnana Bharati Campus

Malathalli Post Bangalore
560 056
Abstract

The main focus of the study is to explore and study the market for Ready-to-eat/cook products
in Tier 1,2 and 3 cities post COVID in India. To find out what are the factors that influences
the buying behaviour of consumer in the market for such products. People age, income level,
occupation and brand preference is taken into consideration to arrive at the conclusion. Market
research will give us information about the current status of the segment and the people
preference to this type products. There is a lot of changes in the people perception and the life
style which changes their buying behaviour. The study follows the consumer preference theory.
Before them there are plenty of options and new entrepreneurs are also releasing their products
in the markets which gives them various ideas for purchase. Other than convenience there are
many other factors that determines market. This study gives us the insights of the consumer
perception and the attitude towards the RTE foods post COVID – 19.

Introduction

Ready-to-eat (RTE) is known for their convenience that can be ready within minutes and also
some of the RTE Products can be consumed at the point of sale. RTE foods can be raw or
cooked, hot or chilled, and can be consumed without further heat-treatment including re-
heating. RTE foods are foods that require no further processing which ensure their safety and
consumption, but some product needs post processing after purchase of the product which is
not as tougher compared to cooking but slight heating. They may or may not be cooked: i.e.
Noodles, Soups, Biscuits etc. As far the study I have take both RTE and RTC (Ready-to-Cook)
foods in the single category. The motivation for the study is the present scenario od COVID
which transforms everyone’s perspective towards the processed foods.

Objectives

The following are the Objectives for the study:

• To analyze the perception of the consumer towards the RTE foods

• To examine the buying behavior of the consumer in Tier1,2,3 cities.
• To examine the consumer perception towards RTE foods post COVID – 19.

Review of Literature

(Prasad 2018) studied the evolution, growth and the buying behavior of RTE products in
Anantapur district. They have used both primary and secondary data for the research purpose.
They have collected the primary data from 133 people. The study reveals that RTE food
products are preferred based on the lifestyle of the people is increasing and the market strategies
can be developed based on this strategy.

(Hawa et al. 2014) they studied the reasons for purchasing of RTE foods as a daily meal and
also the study targets the consumer perception towards RTE foods and their purchase
intensions. They have used both primary and secondary data as reference to their study. They
almost collected 550 response from the people in and around Ahmadabad. They use Chi-Square
technique to calculate the final result. And they found that most of the buyers’ main intensions
to the product are “Ease to Use” and “Saving of Time”.

(Srinivasan and Shende 2015) in this they have studied how RTE foods helps the working
women, how convenient, what type of convenient food they prefer after their heavy office
workload. They have collected primary data with the questionnaire which relate to the working
environment. They also used secondary data for their understanding purpose. They have almost
collected 100 respondents in and around Pune city. Their findings show that most of the
working women prefer to cook food in their house rather than RTE foods as they see there is
not much ingredient in those foods. Another major finding, they try to buys most of the bottled
foods rather than frozen one.

(M and N 2012) they studied what are the main factors that influence the RTE food in Tier one
cities of Southern India. They also studied the market potential for RTE food products and the
future potential. They also made the study with both primary and secondary data and the sample
size is 200 numbers. Their outcome in this study is, most of the middle-class people prefer this
type of foods and the changing lifestyles adapts RTE foods.

(Chaurasiya et al. 2020) This study is mainly based on the consumer perception to RTE foods
from MTR foods. The was conducted in India and Malaysia to see the perception of RTE foods.
They see some factors that influence the consumer perceptions are price, convenience, taste
and nutrition. It was both primary study and secondary data study and they collected samples
from almost 111 respondents. The result form the study shows that most of the Indians like
branded RTE foods than local labels. Their main concern are taste & nutrition, convenience
and pricing of the product which plays a majority of the role.

(Agyei-Amponsah, Owureku-Asare, and Katiyo 2020) In this study their main focus is on the
consumer food preference during COVID-19 in the minds of Ghanaian consumers. They also
undergone both primary and secondary data for references, the sample size is 181 respondents.
The outcome of the study is that most of the people tend to have food made in home during the
COVID period and these are much healthier than outside food. They have said that people in
Ghanaian usually prefer homemade food rather outside, so the study shows that people’s
preference to food does not change during the COVID also.

(Kumar and Kaur 2016), their observation mainly focuses on the consumer feedback towards
RTE product segments. It was mainly observed in the areas of Punjab. The sample size is 300
respondents. The customers in the study was mainly the younger people with high education
background. Most of the customer likes to adapt the RTE food products in their day-to-day life.
It is seen that maximum number of females tend to move towards this type of foods. These are
the results that was observed post research of the study.

(Chaudhury 2010) they have studied the motivation behind the consumer buying of RTE foods.
They have used statistical approach for the research process. They used both primary and
secondary data for their research purpose and the sample size is 93 respondents. From their
study it was found that the basic motive for purchasing the RTE foods are sensory appeal,
convenience, mood and price. They have found that brand also plays a major role in the
decision of the consumer.

(Laguna et al. 2020) this paper describes about the effect of COVID – 19 on food priorities
among consumers. They have used the primary data for their observation. The sample size is
362 Spanish people, who are responded to this survey through online mode as it was taken
during the lockdown period. The final result found that most of the people were using pasta
and vegetables, most of the commodities such as fish, seafoods are been avoided due to this
crisis. They have said that most of the people have changed their lifestyle in the course of time
which changes their food habits.

(Ben Hassen, El Bilali, and Allahyari 2020) this paper discusses the impact of COVID – 19 on
consumer consumption and behavior of food in Qatar. They have used primary data for the
research and the sample size is 579 respondents. The result declared on the study of the
consumer behavior and consumption of food has drastically changed towards the healthy side.
Most of the people tend to prefer local products than the imported one. Most of the people tend
to learn more culinary techniques in cooking the food during this period.
Research Methodology

A descriptive research has been done to study the preference of RTE foods post COVID
– 19 which determines the consumption behavior of the people after the series of lockdown
and their economic status. In this study we have used primary data for the whole research study
and secondary data for reference. The data are collected by using 25 questionnaire and it was
shared in WhatsApp and LinkedIn. Most of the respondents are employee and students. The
sample size is 141 people who actively responds to the questionnaire. In which 101 males and
39 females and 1 preferred not to say peoples. The data was collected through google forms
and then using MS Excel the further analysis were done. We have undergone descriptive
research methodology and analyzed using descriptive statistic method. Most of the response
are qualitative data and uses Likert scale to collect the preference of the consumers.

Results and Discussion

The answers obtained from the respondent through the questionnaire developed. And the
answer is imported to MS-Excel and then transformed it to the graphical representation and
interpreted successfully.

Fig: Purchase of RTE foods based on Gender

Most of the male respondents buy and use RTE foods regularly and some male
respondents are in the process of buying the RTE foods.
 Fig: Purchase of RTE foods based on Cities
From the chart it is seen that 38% of tier 1 city people tend to buy and consume RTE
products and nearly 34% of tier 2 city people are now changing to RTE foods and nearly less
30% of people tend to consume RTE foods in tier 3 city people.

Fig 3: Monthly expenditure for RTE based on Gender

Most of the male respondents (101) spent nearly Rs. 1255 per month on RTE foods.
Female respondents (39) spent nearly Rs. 1228 per month on RTE foods.

Fig 4: Frequency of purchase based on age and gender.

From the above observation, it is seen that people in the age group between 16-29
consume RTE foods much higher than the other group.
 Fig 5: Monthly Expenditure on RTE foods

As we can see from the graph that people spend between Rs. 1 to Rs. 2000 on RTE foods for
every month. At the same time nearly 27 people don’t buy RTE foods. But there are some
people who spend Rs. 18000 to Rs. 20000 on RTE foods per month.

Fig 7: Brands under RTE foods

Most of the people prefer ITC’s RTE foods. And in the line of brand preference the next is
Nestle, Britannia, MTR, etc.
 Fig 8: RTE Products

Most of the people tend to buy sweets and soups mix products that are easy to prepare and
consume within minutes.

Fig 6: Reasons for purchasing RTE foods products

The reason for consuming RTE foods is mainly for its convenient to use and it got the share of
59% in the overall respondents. And the next is easy to cook of the products which constitutes
45.3% with the overall respondents. In the coming order its all about taste and liked by
family/friends/family members.
 Fig 9: Place for purchasing RTE foods
As you can see from the above chart mostly the purchase occurs at supermarkets which
constitutes 81.9% from the total respondents.

Fig 10: RTE foods is healthy

Most of the people’s knowledge and their idea on RTE foods gives us that they believe that
these products are unhealthy and nearly 43.6% people are in neutral position which says that
they are unaware of the RTE products and they need to be addressed.

Fig 11: Reasons for not purchasing the RTE foods

From the above pie chart it is visible that people reject it because of its high price and they
dislike the product because of several reasons. They also said that due to lack of awareness and
low quality.

Fig 12: Source of Information

People said that they came to know the products mostly from television ad and from
newspaper/Magazine. And some of the people said that they get to know it from friends and
shopkeepers.

Fig 13 Frequency of purchase on weekly basis

Most of the people (52%) consider about their health and financial conditions, so they buy RTE
products occasionally.
 Fig 14: Alternative purchase plan

It is seen from the above chart, most of the people will got to buy other similar brand which
has same ingredients, if the preferred brand is not available.

Fig 15: Food Preference before COVID 19

Above chart shows us people like home made foods rather than other foods that has been
prepared in hostel and restaurants.
 Fig 16: Food Preference outside during COVID – 19

It was observed that 47% of people don’t prefer food outside during this pandemic period. And
they try to have food at home and prepared by themselves or their family members.

Fig 17: Preference of RTE foods post COVID – 19

It was observed that there is slight increase in consuming RTE foods after COVID – 19. And
it is nearing to 50%.
 Fig 18: RTE foods during COVID -19

It is seen that people are experiencing that RTE foods are more helpful and it is making little
bit changes in the consumption pattern of the people and which helps most of the bachelor
people during this COVID.

Descriptive Statistics

Monthly expenditure on Ready-to-

eat food items:

Mean 1238.858156
Standard Error 219.340228
Median 500
Mode 0
Standard
Deviation 2604.520901
Sample Variance 6783529.123
Kurtosis 25.84333802
Skewness 4.670184469
Range 20000
Minimum 0
Maximum 20000
Sum 174679
Count 141

From the response to the questionnaire both male and female spend Rs. 1238.85 on an average
for RTE foods.
Key Findings:

1. From the response, it is seen that most of the adult are using RTE foods in their fast-
moving life.
2. The spending on RTE foods is under Rs. 2000 per month, which is low as compared
with their monthly income.
3. Some of the people are not aware of the RTE foods in tier 3 cities which has the biggest
market potential and it should be targeted.
4. RTE foods are considered as the most convenient food type and easy to prepare with
short period of time.
5. People in the age group between 16 – 29 are having RTE foods at a greater extend, of
which most of them from tier 1 cities.
6. Most of the purchasing happens in supermarket which again gives us the complete
picture that tier 1 city people tend to have it more than other city people.
7. The major drawback in the study is that people are not aware whether the product is
healthy or not, as most of the people are confused.
8. Some people are not buying the RTE foods because of high price, lack of awareness,
dislike the product and low quality.
9. It is seen that half of the respondents are buying RTE foods occasionally which seems
that they are not trusting the RTE foods based on the health, value and quality factors.
10. It was also observed that most of the people in this pandemic period prefer RTE foods
because of lockdown and other factors.

Conclusion

RTE foods have large advantages than disadvantages in the aspects of convenience,
easy to cook. But they lack in marketing of the product in some of the cities which will generate
more revenue. RTE foods are mainly preferred by the working employees and students, which
eventually gives us the picture that younger generation people are not having time to prepare
food at home instead they go for RTE food type which is easier and more convenient to use in
the fast-moving world.
Recommendations and Suggestions

From the study it is found that most of the people lag awareness of the products that are
available in the market but at the same time companies are continuously doing their best to
reach the customer. Further the company has to involve in the various programs where most of
the rural people tend to participate and they have to publish their advertisement. They also have
to do some promotion of their products in the local markets.

Limitations and Future directions

1. The data was collected through non-random sampling method and the new research can
go for collecting samples through probability sampling method.
2. The samples are from various parts of the India. They can go for the research study in
tier 2 and tier 3 cities.
3. The study follows descriptive statistics and not the inferential statics is used.
4. Further study can go for focus group or one to one interview for better knowing of their
understanding about the products.
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