GROUP-A08 1

Symbiosis Institute of Business Management, Hyderabad

Name of the Faculty Dr. Ramakrishna Dikkatwar

Course Marketing Management

Semester – I Batch of 2020-22

Assignment Date 15-10-2020

Submission Date 30-10-2020

Topic: - Marketing Management Assignment

Group or Individual

Sl.
PRN Name Remarks
No.

1. 20021141065 Nishka Agarwal

2. 20021141046 Kaustov Maji

3. 20021141038 Indrajit Pandey

4. 20021141050 M Veera Mahesh

5. 20021141047 Kavya Jayaprakash

6.
7.

8.
9.

10.
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SEGMENTATION

Definition:
Segmentation means to divide the marketplace into parts, or segments, which are definable, accessible,
actionable, and profitable and have a growth potential. In other words, a company would find it impossible
to target the entire market, because of time, cost and effort restrictions. It needs to have a 'definable' segment
- a mass of people who can be identified and targeted with reasonable effort, cost and time.
It the process through which we identify and profile distinct groups of buyers who differ in their needs and
wants.

It’s a two-fold process:

 To identify and classify people into homogenous groups.
 To decide which of these groups are a viable target audience for the product.

Objective:
 To allow an organization to understand its target audience and learn the ways to serve them.
 To decide and reduce the risk of serving- What, When, Whom, Why, Where and How.
 To make the marketing efficient and effective in accordance to the targeted segment.

Segmentation can be classified into:

M Measurable

S Sustainability

A Accessibility

D Differentiating

A Actionable
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Types of Market Segmentation:

Demographic: One of the most common type of segmentation, which is exclusively concentrate upon
identifying who is the target audience for the company. One can segment according to the nature of its
product. Demographic segmentation can differ from B2B to B2C and also from necessity good to luxury
goods. Traits such as age, gender, occupation, income, family status, company size, position, education, and
many more can be identified through this segmentation. A company can understand the number of females
attracted towards their brand among the target audience by dividing them on the basis of gender.
Behavioral: This type of segmentation concentrates on a consumer’s behavior or attitude towards the
company or brand on the basis of their previous experiences. Used to understand the consumers’ action and
the pattern they interact or relate with the company or brand. Traits like- Purchasing and Spending habits,
User status, Brand knowledge, Brand interactions can be identified. A classic example of this can be a
company can divide according to purchasing behaviors like young people would go for trendier stuff while
older generation would go for durable products.

Psychological: According to this segmentation a company can segregate its consumers on the basis of their
personalities and characteristics. This type of segmentation is crucial while forming a marketing strategy as
it allows you to understand the perspectives of varied customers on varied factors. Some of the traits are-
Lifestyle, Motivation, priorities, interests, Values and more. For example a fitness brand can divide the
people according to the ones who are fitness conscious and ones who are foodies and do not like to exercise.
Geographical: As the name suggests, this segmentation allows you to divide your target audience on the
basis of where they are located. It segregates according to the geographical boundaries and helps to
understand the wants and needs of consumers on the basis of traits like city, district, and climate, urban or
rural. An example can be a luxury car company dividing its customers on the basis of tropical and Arctic
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region- customers in winter and snowy region would require different tools for cars then consumers in the
tropical climate.

Marketer Description:
 Marketer: We the students of group A08, are currently conducting a consumer research about the
perception of Indian consumers over ready to eat food. We have designed the segmentation based on
demographic aspects as age group, life style, family size etc. and also about the types of ready to eat
foods available in the market, we have put our focus on the nutrient components, the frequency of
consumption and also the awareness of its health aspects. The study is done to understand the
behavior and understanding about the food you consume and the areas which can be looked on to
develop an ideal marketing strategy to incorporate ready to eat meals in your daily life to a greater
extent.
 Industry : Ready To Cook Food
 Study Matter: Primary Data collection through questionnaire and secondary data collection through
CMIE, Research paper and case studies.
Ready to Cook Food industry is one of the fastest growing sector in India due to increasing consumer
demands towards convenience food. With a rapid growth in urbanization and modernization consumers
taste and preference are shifting towards simpler and easier cooking techniques and methods.
Product Types:
 Curries and meals – like Poha and Upma
 Batters and Paste- Like Dosa Mix
 Instant noodles / pasta- Like Maggi
 Desserts- Like Pancakes, Gulab Jamun
 Snacks- Fries and nuggets
 Meat Snacks- Chicken, mutton, prawns.
Market Indicators:
 Population
 Business cycle
 Household income
 Consumer spending
 Consumer price index
 Tax rates
 Health
 International trade
 Finance
 GDP- exchange rates
 Price level
Future Insights:
 Revenue: $ 2,506,387 million
 Expected grow annually- 5.9% (2020-2025)
 Expected growth rate - CAGR- 15.7%
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 Expected valuation – US$ 284.4 million by the end of 2020.

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Identification on Basis of segments:

Consumer behavior in ready to cook food category:

According to a study to understand the consumer behavior towards the ready to cook food category, it is an
emerging market. A primary data study was done on 112 respondents from Urban India belonging to diverse
backgrounds.
Observations:
 Overall attitude towards ready to eat food was 2.5 out 7 on a scale.
 However, the intention to purchase ready to eat was low at 2.9 out of 7 on a scale.
Findings:
 Traditional and health oriented individuals have a negative attitude towards ready to cook food while
for the ones who are convenience and taste oriented prefer ready to cook food more.
 Breakfast category items like Poha and Upma along with snacks like Fries are preferred for
occasional purpose.
 Lunch and dinner meals like Ready to Cook curries are consumed more and purchased more as
compared to other product type.
 The decision making towards in Ready to cook food is
i. Planned – when it comes to lunch and dinner meals.
ii. Impulsive- when it comes to snacking like fries and instant noodles.
 Males and females up to the age of 25, have similar behavior characteristics and attitude towards
ready to cook food. However, it was found that females above the 25 years of age start to shift
towards health oriented food, leading to a negative impact on buying ready to cook food.
A demographic assessment of the consumption pattern for the ready to cook food.
According to a study conducted around the Delhi and NCR region in the year 2020,
Observations:
 Due to shift in social scenarios for both males and females, the time to spend on cooking has
decreased due to professional commitments.
 With an increase in economic resources, disposable income among the younger generation with an
average age of 28 years- are the ones who do mind spending higher amount on ready to cook food
till it satisfies their taste and preferences.
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Findings:
 Based on Anova testing Hypothesis.
 Impact of various Demographic factors like- age, gender, occupation, income and education.
 People less than age of 28 years of age don’t mind spending high on ready to cook food in
comparison to the traditional home cooked food.
Feasibility of multilevel marketing (MLM):
A multilevel marketing is a distribution channel where a person when makes a purchase of a product he/she
contributes towards the earning of the salesperson. The salesperson earns incentives or commissions for
making the sales of that product.
Multilevel Marketing acts as a factor of trust or the word of mouth among the consumers.
Visualizing market segments and analyzing attractiveness:
Analysis:

The “Volume” box shows the apparent consumption of the selected product (market segment, region) in
millions for each year. MGI study prediction on the effect of economic growth on different classes, Middle
class, defined as households with disposable incomes from Rs 200,000 to 1,000,000 a year comprises about
50 million people, roughly 5% of the population at present. By 2025 the size of middle class will increase to
about 583 million people, or 41% of the population. In foods, the change is taking place from home-made to
ready-to-eat. The evidence lies in how quickly the market for packaged breakfast has doubled in three years
to Rs 400 Crore growing at 30% annually.
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The Revenue shows the forecasted revenue development of the selected market (market segment, region) in
million for each year.
The Revenue Growth box shows the year-over-year revenue development of the selected market (market
segment, region) in percentage terms.
According to data in the reports of Statista, RTE foods being the fastest-growing, at a CAGR of 73% from
the year 2006. Revenue in the Ready-to-Eat Meals segment amounts to around $508 million in 2020. The
market is expected to grow annually by 0.5% (CAGR 2020-2025).

Segmentation according to the Ready to cook food industry:

 Demographic Segmentation:
The affluence of the working population and increasing millennial consumption are the key segments
driving the ready to cook market.
According to 2019 data, Age distribution in India (2009-2019) –
i. 0-14 Years- 26.62%
ii. 45-64 Years- 67%
iii. >65 years- 6.38%
Moreover, the median age of Indian population is 26.8 years old. This makes the youth and working
population of India suitable segment for the Ready to Cook food sector. As the consumers in this
segment have higher disposable incomes and ready to pay extra amount in order to save time and
experience better taste and satisfaction.

 Behavioral Segmentation: Unless and until the behavior patterns of the consumers are studied, they
cannot be provided with better experiences and increased satisfaction. Consumer behavior is
determined by the cultural, social, personal and psychological factors. Individuals who differ in these
factors tend to have a difference in the selections and consumption patterns. In case of RTE
consumers, they show variety seeking buying behavior rather than looking for the benefits from the
product. With regard to the present scenario, consumers mostly seem to be medium users. Studying
the buying behavior further helps to develop the marketing strategies accordingly and expand the
existing customer base by bringing in new customers and increasing their customer loyalty.
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TARGETING
Through the process of targeting a company can evaluate the attractiveness of the consumer segment and
determine the methods and techniques to attract consumers. A firm’s choice of segment should intersect
with its vision and mission. Along with that a segment largely depends on the offerings given by the
company and the marketing strategy employed by them.

Survey:
Observations:
We (Group-A08) conducted an online survey with 125 participants belonging to different age groups and
different categories namely working class, students and home makers. Among the population, 72% belong
to the age group of 18-25 which are mostly students.
It was found that only less than one-fourth of the population are non-users of ready to cook food items as
they feel that these are not healthy enough due to the preservatives content added to it. But more than three-
fourth of the population who are consumers of ready to cook food products, uses them mainly for two
reasons-
 Time-saving (43%)
 Taste (27%)

Though around 43.2% of the population consumed ready to cook food rarely, the other 56.8% part
consumed them on a daily (6.4%), weekly (28%) and monthly (22.4%) basis. Among these consumers,
around 68% preferred instant noodles and pasta followed by another 48% preferring snacks.
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In order to understand the perception of respondents to the nutritional aspects in ready to cook food, we set
the parameter of nutrition values on a scale of 1-5 with 1 being ‘very unhealthy’, 2 – somewhat healthy, 3 –
neutral, 4 – healthy and 5 – very unhealthy. The findings showed that nearly 35% of them were quite neutral
about the nutritional values associated with ready to cook food.

Another point is that, upon throwing some light on the NCBI guidelines regarding the eight nutritional
components, 76% of the population feel that the Ready to Cook food products they consume contains only a
few nutritious elements.
Findings:
As such the main inferences that can be drawn from the above findings are that:
 Either consumers cannot associate Ready to Cook food with nutrition.
 For them, time saving and taste are the major consideration
 Major chunk of the sample feels that ready to cook food have very few nutritional components.
The respondents were also asked whether they would be willing to consume the ready to cook food products
if the ideal nutritional composition is included in it to which 45% responded with a yes whereas another
45% commented that they were not sure about their decision.
This ambiguity in decision making may be because of-
 Lack of awareness of the consumers
 Believe that Nutrition factor cannot be aligned with ready to cook food.
Seeing the present scenario where:
 Health
 Safety
 Cleanliness
 Hygiene
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Have become the factors every consumer is shifting towards and considering them before making a
purchase.
Thus we believe if Ready to Cook food industry wants to grow then it has to keep in consideration
the required factors like:
 To include nutrition in the element of marketing both in terms of visibility and noise.
 Brands that want to increase the product line both by length and width should consider nutrition
factor.
 A shift towards nutrition would bring a change in existing consumer’s attitude and even attract
the health conscious consumers.
 A food industry famous for taste and time saving, Nutrition can be the best addition to the game.

POSITIONING:
Positioning is the process by which a company can create a favorable and distinct image in the minds of the
existing and potential consumers. Through a positioning strategy a brand allows its consumers to perceive
the brand in a certain way.
Positioning is often responsible for establishing the Marketing Mix of a product. The Product, Price,
Promotion and Place can be well-defined and well-targeted through proper positioning.

Test your
marketing
Positioning
in Ads Position
Develop
Unique
Find
Position
Current
Competitor Position
Analysis
Simplify
and Tagline
Create
positioning
statement

To develop a conducive market positioning a brand requires either a POP or a POD, which is, a Points of
Parity and Points of Difference respectively.
POP:
Points of parity are those attributes which are not unique for a brand but instead are somewhat similar to the
offerings given by the competitors.
POD:
Points of Difference are those attributes that are relatively distinct or completely unique from the offerings
given by competitors.
Therefore, to change the perception of people for the Ready to Cook food industry, They should
follow the POP.
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Below, is a Market strategy proposal we would like to present:

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An advertisement for market strategy, to spread awareness about nutrition content in Ready to Eat food
among the potential and existing consumers.