CHAPTER- 1

INTRODUCTION

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1.1 INTRODUCTION
“With the retail boom, change in modern lifestyle, and emergence of nuclear families,
the Indian food industry is expected to grow exponentially. There is no impact of the
slowdown on this sector. Convenience foods is catching on fast and becoming more
relevant.” - Aayushman Gupta, CEO, Veetee Fine Foods. August 2009.

The food processing industry in India is one of the largest in terms of production,
consumption, export and growth prospects. Buoyed by a favourable policy
environment and demand push impact of a young consuming class with growing
disposable incomes, India offers significant investment opportunities in the food and
agro- business sector and is likely to become a world player in this business. By 2017,
the Indian food industry is expected to reach USD258 billion from the current level of
USD181 billion. This growth is expected to be sustained till 2020, where the industry
size is expected to touch USD318 billion. India is making an important mark in the
global food arena — both as a large producer and exporter of agriculture products and
as a very large and growing market for processed foods. Considering the growth
witnessed by the sector in the last decade, and further improvement in growth rates in
the years to come, this sector presents varied opportunities for investment across the
entire agro-value chain. I am confident that this joint effort by FICCI and Ernst &
Young will be instrumental by in further strengthening the global ties between India
and global food business, by highlighting the investment attractiveness and business
potential in the agri-food business. - Mr. Shrijeet Mishra. Chairman, FICCI Food
Processing Committee

The Indian food industry is a significant part of the Indian economy with food
constituting about 30% of the consumer wallet. With a vast consumer base that is
growing and with a strong base for food production, the sector presents a good
opportunity for all players. If we look at the food sector, there are some clear
opportunities for growth in the future:
• An increase in per capita disposable income by 8% over the last five years which
has led to an increase in per capita consumption expenditure on food by 20% over the
same period. A large part of the increase in income will go towards expenditure on
food as the data clearly suggests. The current per capita expenditure on food is 1/6 th

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that of China and 1/16th that of US with a significant opportunity for growth in the
future.
• Growth in the size of the middle to upper classes which is projected to increase at
more than 300% between 2005 and 2015. During the same period the youth
population (age group 15 – 25) in India is expected to grow by 11%. This will lead to
an increasing demand for food products to meet demands of convenience, variety,
health and a changing palate.

“Marketing is a basic that, it can’t be considered a separate function. It is the whole

business seen from the point of view of its final result that is the consumer point of
view”. - Peter Drucker

Sixty six years after independence, Indian lifestyle has undergone many changes.
Food and taste habits are no exception to this. Indian households today welcome food
with convenience in cooking and purchase. The food corporate have been very
successful in replacing fresh and healthy food from consumer’s diet with Ready-to-eat
or processed food. According to the English Dictionary “Ready-to-eat is a type of
meal that is often prepared and served quickly. According to Merriam-Webster online
dictionary Ready-to-eat is “designed for ready availability, use, or consumption and
with little consideration given to quality or significance”. In data Monitor’s (2005)
survey the Ready-to-eat market is defined as the sale of food and drinks for immediate
consumption either in packed form or cup model. Ready-to-eat has become one of the
fastest growing industries in world as well in India over the years. However, with
rising global obesity, there has been a gradual demand for the food that is neither
processed nor produced using genetically modified organisms.

Indian cooking and lifestyle have undergone tremendous changes in the last 15 years.
There are many major factors impacts this change are include, liberalization policy,
dual income, separate living of couples, Innovative kitchen applications, Media
proliferation etc. The cooking style and eating habits in India varies drastically from
southern part of India to northern part of India. Due to lifestyle pressure nowadays
people prefer easy short way of cooking food rather spending too much time on
spending in cooking. Non-availability of raw materials to prepare masala and tedious

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process involved in doing so, has influenced people to choose such products. There is
no specific category and market potential for these products.
The product portfolio varies from noodles, pasta, chips, dairy products, fish & meat
products, ready cooking dosa, parota items, masala dishes, pre cooked dishes etc.
There are peoples, who are migrating to cities for job and education and these people
have find the Ready-to-eat products are comfortable to eat rather than depending on
restaurants. Most of the dual income (both husband and wife are office goers) families
want to spend much less time on cooking because of less availability of time. During
weekends they want to spend time with their kids and outing, whereas in weekdays
the office duration is large and these factors forced them to go for buying such
products. Other factors influences this products is availability of different flavors and
dishes. Consumers who are looking for different dishes and flavors now depend on
these products. This products brings variety to their eating’s and palatable too.

There is no conclusion which one precedes-whether the availability or taste or time

constraint, all these factors complement each other in driving these products. When
India becomes the hub of many Multinationals and there is a rapid change in people
lifestyles. Modernization, majority of young population, knowledge able consumers,
will make an impact on these products. Due to raise in literary levels, proliferation of
communication technology, consumers are becoming more aware of the foods they
intake and they take decision based on the wealth of resources available. There are
data’s available like India is becoming capital for heart patients and diabetic, there is a
much stress given on lifestyle and food habits of peoples. Health conscious consumers
are mostly well educated and can access to different information available on the
internet, magazines, TV shows, and word-of-mouth information by their society
people.

More than male, the female consumers shown much interest in knowing the level of
calories, ingredients and certain product approval certificates in choosing the
products. Females are also weight conscious and they decide the products based on
their consciousness. Often, house wives become the major influential factors in
deciding the food products for the whole family.Advertisements about these products
are also becomes a major factor in deciding these products. Level of obesity is on the
rise of Indian population and on one side consumers are becoming awareness of the
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food they intake and on the other side consumers are carried away by advertisements
information and packaging stylings.

1.1.1 The Ready-To-Eat Industry in India and Consumers Food Choice

Indian Ready-to-eat industry has been divided into two main segments-regional
Indian Ready-to-eat and the MNC Ready-to-eat.The entry of multinational Ready-to-
eat giants such as McDonald’s, Pizza Huts, Domino’s, US Pizza, Kentucky Fried
Chicken (KFC),etc. have brought a concept of burgers, pizzas, milkshakes and
softdrinks which have been been launched into the Indian markets as “Fusion
cuisines” and Companies like HUL, ITC, Dabur, Godrej, Pepsico, Amul have
pioneered processed food segments.

In the society with food combining lifestyle, trend for eating out and food away from
home concept has emerged with Indian economy and culture going global in early
90s. Over the years global food giants like McDonald’s, KFC, Pizza Huts and many
more have been able to construct a huge consumer base in urban India. People now-a-
days are cooking less at home and members of the family are often eating out and
depending on processed foods for their daily intake due to lifestyle changes.

Moreover, the frequency of eating out and intake of processed food has been rising
with relative importance of more snacks,sandwiches,burgers and American–style
Ready-to-eat and a relative decline in traditional food and eating habits. This trend is
more visible in young consumer. There has also been an increase in take-aways and
home deliveries. Consumers are switching towards modern eating habits. Over 70%
of the urban Indians consume food from take-away restaurants once a month or
frequently.24% of the Indians use quality of service as a decision criteria to eat
Ready-to-eat and 22% does consider the health hazards associated with Ready to- eat
eating.
The promotion strategies of the companies are infact targeting children, youngsters
and small families in urban areas. As per ACNielsen’s Informal Eating Out (IEO)
survey of branded food chains in India, McDonald’s was found to be the leader in
Ready-to-eat chains.There are food chains like Haldirams,Bengali Sweets and many
more in Delhi gradually expanding and competing with multinational Ready-to-eat
chains. The local brands developed in India are also gaining a lot of ground such as
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Baristas and Pizza Corner. Some of the major homegrown Ready-to-eat brands who
have successfully adopted western Ready-to-eat model in Indian markets have been
HLL, ITC, Dabur, godrej, Pepsico, Amul atterjee’s mainline China group, Hot Breads,
Sarvana Bhavan and many more. Some of the new entrants in the Ready-to-eat
industry being influenced by western Ready-to-eat model have been Amul, Mother
Dairy, Nilgiri and many more in the process.

1.1.2 Ready-To-Eat (RTE) Foods Market in India

Ready-To-Eat (RTE) foods market in India is currently worth Rs. 130Cr. And it is
expected to further expand to Rs 2900 Cr. by 2015. The factors contributing to this
growth would be changes like cold chain development, disintermediation,
streamlining of taxation, economies of scale on the supply side, coupled with
increasing disposable incomes, diminishing culinary skills and the rising need for
convenience on the demand side. Emerging brands in the Ready to eat category are:
Amul, Gits, Haldirams, Ethinc Kitchens , Kitchens of India ,ITC, MTR, Priya Foods,
Rajbhog Foods Inc, Rainbow Foods India, Satnam Overseas Ltd, Shana Tasty
Bite,Veekay Impex.com, Ashoka Ready to Eat and Vimal Agro Products.

According to data in the reports, packaged foods in India have grown at about seven
per cent a year between 2000 and 2005, with RTE foods being the fastest-growing, at
a CAGR of 73 per cent. Though the success of this category is a big success in the
foreign markets (especially with the NRIs), the success of these items in India is still
on a growing stage. Thus it requires an in-depth analysis to understand the
expectations of the consumers towards the Ready-To-Eat food.

A study was conducted to identify the important factors that determine the buying
behaviour of Ready-To-Eat food. When it comes to buying Ready –To-Eat food
products customers may be quality conscious because it affects their health. It is well
known that Indian customers are price sensitive and therefore customer perceptions
that Ready-To-Eat food category are priced low may influence buyer decisions.

The Indian RTE foods market, canned/preserved segment is more popular,

contributing about 90 per cent of the market and growing at a Compound Annual
Growth Rate (CAGR) of 63 per cent between 2001 and 2006 while the chilled and
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dried ready meal segments are non-existent.There is a huge untapped market
opportunity arising due to rapid demographic shifts in income, urbanisation, and
proportion of urban working women in India. The industry needs to concentrate on
broadening the market and increasing penetration amongst Indian consumers.”

The analysis also pointed out that industry players would have to significantly
improve their price competitiveness with respect to other options such as domestic
help, eating out and ordering in, available to the Indian consumer. Besides price
consideration, the product range offered by industry players will have to be
strengthened. At the moment, the regional cuisine and non-vegetarian cuisine markets
are relatively under-serviced with concentration on the vegetarian North Indian meals.

India provides an attractive opportunity for both Indian and international players with
a mix of demand and supply side changes. If consumer demands of affordability,
availability and enhancing acceptability are met, the RTE foods market has the
potential market size of 2,900 crore by 2015 from its existing Rs. 128 crore.”

India has made lot of progress in agriculture & food sectors since independence in
terms of growth in output, yields and processing. It has gone through a green
revolution, a white revolution, a yellow revolution and a blue revolution. Today, India
is the largest producer of milk, fruits, cashew nuts, coconuts and tea in the world, the
second largest producer of wheat, vegetables, sugar and fish and the third largest
producer of tobacco and rice.

Now the time is to provide better food processing & its marketing infrastructure for
Indian industries to serve good quality & safest processed food like ready to eat food.
It is opening a new window in world scenario as far as taste & acceptance is
concerned. Therefore, Indian Government is providing more infrastructure for this
sector. Excise duty is now ZERO % on RTE and 100 % tax deduction for the first 10
years for new units. This allows manufactures to bring down their prices & spreads its
flavors to the world.
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
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2025 the size of middle class will increase to about 583 million people, or 41% of the
population.

Extreme rural poverty has declined from 94% in 1985 to 61% in 2005 and is projected
to drop to 26% by 2025.Affluent class, defined as earnings above Rs 1,000,000 a year
will increase from 0.2% of the population at present to 2% of the population by 2025.
Affluent class’s share of national private consumption will increase from 7% at
present to 20% in 2025.

The Indian consumer market, which is primarily dominated by young generation, is

becoming increasingly sophisticated and brand conscious. A typical upper middle
class young consumer is beginning to look beyond the utility aspect of a product to
seek intangibles like brand and lifestyle statement associated with the product. This
modern consumer wants his purchases to reflect his lifestyle or at least the one he
aspires
for. As a result of this brand consciousness, the food and beverage segment of the
FMCG sector is already witnessing a significant shift in demand from loose to
branded products.

The Indian affluent class has always had a penchant for premium branded goods and
this fetish will continue. A recent luxury brands survey conducted by The Nielsen
Company, a global information and media research company, has ranked India third
after Greece and Hong Kong in the list of most brand conscious countries in the
world. Over 35% of Indian respondents said they spend money on luxury brands.

Generally speaking consumer awareness of fortified/functional products is low. A

recent survey shows 80% of Indians agree that health considerations significantly
influence their choice of food and drinks. Approximately 48% of these respondents
feel that functional food claims play a significant role in their purchasing decisions for
food and beverage products. Products that reduce stress, prevent aging, help the heart
and fight diabetes are all on a positive growth curve in India.
Dairy-based beverages such as reduced-fat flavoured milk drinks and sour milk drinks
are expected to witness double-digit value growth over the forecast period of 2007to
2015. India, the world's largest malt-based drink market, accounts for 22% of the

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world's retail volume sales, as they are traditionally consumed as milk substitutes.
These drinks are marketed as nutritious and are mainly consumed by the old, the
young and those who are ill. Sales got a boost by improved retail and distribution in
recent years.

Cereal bars, digestive biscuits, and functional bread products have also found
acceptance among Indian consumers. Cereals and cereal substitutes account for 38%
of rural consumers’ monthly household food spend-ing.Wheat is the main cereal eaten
in northern and western Indian states. Rice cereal is preferred in the south-ern and
eastern states.

Vitamin and dietary supplement retail sales have doubled since 2001 totaling US$563
million in 2008, and are expected to reach US$749.4 million by 2013.In response to
declining health and increased awareness of good health, India’s over-the-counter
(OTC) vitamins & minerals supplement market is growing rapidly. Nutraceutical sales
in India for 2009 reached US$1,323.2 million.

There is a marked difference in consumption between urban and rural consumers.

Urban consumers represent 70% of the vitamin and dietary supplement market, versus
30% attributed to rural consumers. Indian consumers are spending more on nutritional
supplements to combat the effects of stress. Protein supplements and items relating to
muscle building are popular, due to the increasing fitness and body building activity
among the urban elite. India consumes the largest quantity of tea in the world. Tea
makes up 94% of out-of-home, per capita, hot drink consumption, and almost 70% of
in-home consumption. Sales of coffee, tea and cocoa in India increased by 14% from
1995 to 2007.The availability of imported tea on retail shelves has increased and there
has been growth in sales of tea bag and flavoured teas.

Dieting is more prevalent than walking or cycling for weight-loss. Rising obesity
levels and hypertension in India means that health will become an increasingly
important focus for consumers, who will therefore seek out products that aid weight
loss. In comparison to Western or European countries, sports do not play a dominant
role in the Indian culture,which is traditionaly male dominated. However, young,
urban adults are increasingly attracted to adventure sports, and this has led to growth
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in the popularity of river rafting, rock climbing and mountaineering clubs. This trend
may lead to more market interest in reasonably priced sports nutrition products. Sport
drinks comprise a niche category in India, with consumption largely centered in urban
areas. High prices, however, discourage the average consumer from purchasing them.
Energy-boosting drinks that are glucose-based (such as Glucon-D) are more
traditionally used in India for rehydration.

1.2 INTRODUCTION TO CONSUMER ATTITUDES

"It is difficult to imagine a psychological world without attitudes. [...] Our
environment would make little sense to us; the world would be a cacophony of
meaningless blessings and curses. Existence would be truly chaotic and probably
quite short" (Fazio & Olson, 2003, p. 139) Using dramatic words, the authors paint
the picture of how the world would look if mankind were spared of its attitudes
towards everything. This makes it easy to see the importance of understanding how
and why people feel and act in a certain manner to a situation, object or anything that
surrounds them.
Attitude research has been popular beginning in the 1900s. One of the main reasons
for this, as described by Wicker (1969), is that theorists have believed and have seen a
real connection between attitudes and behavior. The idea is strengthened also by
recent authors (Jansson, 2010) who affirm that attitude explains consumer behavior,
even better than other factors (e.g. age, income, etc.).
The interest of this chapter is to try to understand the concept of attitudes and see the
underlying connection between attitudes and behavior. As Fishbein & Ajzen (1975)
put it, attitude is a concept that is believed to guide or influence behavior. So, first of
all, it is important to understand what attitudes are.

Definition of Attitudes
Early conceptions of attitude were largely restricted to specific predispositions or
mental sets. (Fishbein & Ajzen, 1975) Today, attitude occupies a central role in the
theories and research regarding consumer behavior. (Ajzen, 2008) As some
researchers would put it - it is not only important, it is essential. (Faris, 1928)
"In fact, the term 'attitude ' was introduced in social psychology as an explanatory
device in an attempt to understand human behavior." (Fishbein & Ajzen, 1975, p. 336)

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A fairly easy to understand definition is that attitudes represent what one likes and
dislikes (Blackwell et. al, 2001), or the amount of positive and negative feelings one
has towards an object. (Schlenker, 1978) A consistent number of authors (Schlenker,
1978; Fishbein & Ajzen, 1975; Insko & Schopler, 1967; Peabody, 1967) expand and
define attitudes as learned tendencies when responding to an object in a
consistently favorable or unfavorable manner. Ajzen & Fishbein (1977), Peter &
Olson (1999) add to the main idea behind attitudes by defining the notion as a
person's overall evaluation of a concept. Recent studies of Ajzen (2008) place the
evaluation at the core of a person's attitude.
In a more scientific manner, Thurstone (1928) affirms that attitude denotes "the total
sum of a man's inclinations and feelings, prejudice or bias, pre-conceived notions,
ideas, fears, threats, and convictions about any specified topic." (p. 531) One of the
most extensive researches made on the specific concept of attitude is done by Doob
(1947), who takes defining attitude seriously, especially for the fact that so few do in
their papers - as he acknowledges. He defines attitude in a more complex way, " as an
implicit, drive-producing response considered socially significant in the individual's
society. " (p. 136)
Not surprisingly, with so many understandings of the same concept, it can become a
confusing process to clearly see a straightforward definition of what an attitude really
is. Fishbein & Ajzen (1975) discuss in their work that it becomes an ambiguous
concept, even more when analyzing the individual terms in the definition.
Besides the meaning of the concept, there is also a very interesting psychological
implication that has to be explained, and useful to acknowledge in the context of
attitude definition. "Attitude expressions communicate aspects of the person's social
identity and world view." (p. 352) Attitudes carry a diagnostic value and reflect the
image of the person holding them. Since they can and will associate a person to
specific groups of people, attitudes will reveal one's personality, will show the
person's positive or negative orientation, and also can be used to gain approval or
avoid disapproval. (Schlenker, 1978)
It can be seen that the attitude is not a stand-alone concept, as it is directly connected
and dependant on other concepts. The following chapter offers the reader a better
understanding of the main aspects that interconnect with attitudes to create a clear
view of the process that an individual goes through until he/she reaches a specific
behavior regarding a product, situation, etc.
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1.2.1 Belief Formation
"In trying to understand attitudes, beliefs play a crucial role, because it has been
shown that attitudes are measured by assessing a person's beliefs. " (Fishbein &
Ajzen, 1975, p. 131)

Definition and Concept

"By the means of direct observation or information received from outside sources, or
by various inference processes, a person learns or forms beliefs about an object by
associating attributes to the given object. (p. 14) Beliefs relate to the subjective
judgment of a person of himself and his environment." (p. 131) As opposed to
attitudes, a person's favorable or unfavorable evaluation of an object, beliefs represent
the information he/she has about the object. (Fishbein & Ajzen, 1975) The
relationship can be very easily understood (See Figure 1). It shows that the consumer
gets information about something (e.g. an object) and he/she automatically transforms
it into a belief.
Figure 1.1: Formation of Beliefs

Information Belief
In the above figure, another element can be added, and that is the strength of beliefs.
Beliefs that have a high degree of strength about a given object are called salient
beliefs, and they are directly connected to attitude formation. (See Figure 2) This
figure gives a wider understanding of the whole process that an individual takes from
the information stage all the way to attitude formation. The difference in comparison
to figure 1 is that it shows that only the salient beliefs are those that are significant in
the process of developing a certain attitude. It also claims that not all beliefs are
correlated to attitude formation.

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 Figure 1.2: Formation of Beliefs and of Attitudes

Information Belief Salient Attitude

Belief

Not
Silent

Salient Beliefs
Several authors (Blythe, 1997; Peter & Olson, 1999), when talking about salient
beliefs, start with the consideration that the cognitive capacity of people is limited, and
because of this, only a few of the beliefs can be considered at once. The activated
beliefs are in fact the salient beliefs, and they will be the ones that the consumer holds
as most important, but they can also be the ones that have been most recently
acknowledged. Fishbein & Ajzen (1975) add to this understanding by saying that only a
small number of beliefs are considered toward an attitude at a given moment. Because
only the salient beliefs about an object create a person's attitude, it can be argued that it
is important to identify and understand these beliefs.
Ajzen & Fishbein (2000) define the belief saliency as the "subjective probability of a
link between the attitude object and an attribute." (p. 4) Thus, if the subjective
probability is relevant, the stronger the belief will be. The causality relationship defined
by the authors is that if the beliefs are accessible in the memory, then they will
constitute the foundation for attitudes to be created.

Processes of Belief Formation

Beliefs are formed by establishing a link between direct observation and inference
processes by which the individual creates beliefs about a given object. There are three
ways to form a belief (Fishbein & Ajzen, 1975):
Observational. By observation, a person will perceive attributes of a product, which
will then be translated into descriptive beliefs. Inferential. These beliefs are, at their
core, observational. After the observation process, the individual uses his/her
observations to make certain inferences about a given object. Informational. The person
is being provided with the information from an external source such as someone else.

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Attitude formation
The totality of a person's beliefs serves as the informational base that ultimately
determines his/her attitudes, intentions and behaviors. "An attitude represents a person's
general feeling offavorableness or unfavorableness toward some stimulus object, and
[...] as a person forms beliefs about an object, he automatically and simultaneously
acquires an attitude toward that object." (Fishbein & Ajzen, 1975, p. 216) Attitudes are
learnt and not instinctive, which means that a customer develops his/her attitudes from
experience. Blythe (1997) writes that the formation of attitude can be based either on
direct experience with the product (e.g. driving a car), or indirect experience - where
the consumer forms his/her attitudes from other's recommendations and communicated
experiences.

Beliefs may be present for a long time. Some may be forgotten and leave room for
others to be formed. However, the beliefs that are the most critical in relation to attitude
formation toward behavior are the salient ones. In the course of a person's life, his/her
experiences lead to the formation of many different beliefs about various objects,
actions, and events. "Some beliefs may persist over time, others may be forgotten, and
new beliefs may be formed. At any point in time, however, a person's attitude toward an
object may be viewed as determined by his salient set of beliefs about the object. "
(Fishbein & Ajzen, 1975, p. 218)

Formation of Intentions
A person's attitude toward an object can be measured by considering his/her intentions
with respect to that object. The more favorable a person's attitude is, the higher the
chances he/she will have intentions to perform positive behaviors. Intentions involve
four different elements: the behavior, the target object at which the behavior is directed,
the situation in which the behavior is to be performed, and the time at which the
behavior is to be performed. (Fishbein & Ajzen, 1975) For example,
a person may intend to buy (behavior) a car (target) in a dealership (situation) after
work (time). Literature has agreed that attitudes determine the favorability of a person's
intentions but not a given intention. (Fishbein & Ajzen, 1975) For example, two people
may hold the same attitude towards a product, but they may hold different intentions
concerning their behaviors towards it. Later, Fishbein & Ajzen (1975) add to their idea

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and state that they see no relationship, or one that is low and insignificant between
attitudes and intentions, because there is no empirical evidence to prove otherwise.

Figure 1.3: The formation of Beliefs, Attitudes and Intention

As in the case of the relationship between attitudes and behavior or attitudes and beliefs
earlier discussed in the paper, it also can be said that there is a relationship between
attitudes and intentions. However, it will not necessarily determine a causal connection.
Thus, a favorable attitude will not necessarily mean a person will hold a buying
intention.

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 CHAPTER-2
REVIEW OF LITERATURE

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 REVIEW OF LITERATURE

The Ready-to-Eat (RTE) market in India, currently estimated at Rs. 128 crore (2006) is
expected to expand to reach Rs. 2,900 crore by 2015, according to an analysis done by
Tata Strategic Management Group (TSMG). In its analysis, TSMG said that the factors
contributing to the growth would be changes like cold chain development,
disintermediation, streamlining of taxation, economies of scale on the supply side,
coupled with increasing disposable incomes, diminishing culinary skills and the need
for convenience on the demand side.
The report also highlights that the RTE market in India has remained under-penetrated
owing to factors such as consumers’ penchant for freshness, low affordability and the
Indian housewife’s preference for home-cooked food.

Capps (2011) stated that determinants of Food away From Home Consumption: An
Update identified several socio economic and demographic characteristics of
individuals who have consumed food away from home using 1987-1988 national food
consumption survey. The analysis was performed using logit analysis. The significant
characteristics have been race, ethnicity, employment status, food stamp participation,
seasonality, household size, age, income and frequency of consumption.

Nelson (2012) stated that a model of factors affecting consumer decision making
regarding food products: A case study of United States and Japan examined there are
many factors like values, eating habits, family structure, tastes and preferences
affecting consumer food choice decision making between the countries and even within
countries. Multiple regression model has been developed using meet expenditure and
cereal expenditure as independent variables and age, average number of earners, female
participation as dependent variables. Results have indicated that age is not a significant
factor in predicting meat or cereal expenditure in United States. Average number of
earners is not significant in predicting meat expenditure in japan, but was significant in
cereal expenditures. Female participation in labor force (US) was marginally significant
in predicting meat and cereal expenditures.

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Cullen (2013) attemted to brings time,tastes and technology, the economic evolution of
eating out interpreted that the increasing Americanisation of eating out has traced a
culture of Ready-to-eat and snacking, giving more importance to convenience and
eating out behaviour.

Pollard and Wardle (2013) stated that ,titled Development of a Measure of the
Motives underlying the selection of food: the Food Choice Questionnaire have
developed a food choice questionnaire using Factor Analysis of responses from a
sample of 358 adults ranging in age from 18-87 years. The authors have determined
Health, mood, convenience, sensory appeal, natural content, price, weight control,
familiarity and ethical concern as the prime motives of food choice and have also
evaluated the differences in these motives with respect to sex, age and income.

Veeck (2014) stated that changing Tastes, Purchase Choice in Urban China has
investigated food purchase behaviour on the basis of ten-month period of field study in
Nanjing, China wherein the adoption of time related food purchase behaviour was
studied including use of processed food, restaurant use and frequency of food shopping
trips. The objectives of the study was to examine why and how food purchase choice
changes in rapidly growing economy. Food purchase behaviour are examined as part of
a “cultural ideology,” which ,while influenced by material and social needs, relies more
on history, habit, inertia, and an aesthetic sensibility to shape consumption patterns.

Brian (2014) said that, titled The taste of tomorrow: Globalisation is coming home to
dinner has indicated that the food of tomorrow will include international dishes and
fusion cuisines, blending many national cuisines. Kitchens will disappear from many
homes in the future and the concept of purchasing food, with no wish to cook food at
all will come. Altenative theories of globalization are examined to determine how food
choices are influenced by global forces.

Comfort and Lowell (2015) stated that Return to traditional values? A case study of
slow food outlines the origin of slow food and the challenges involved in pointing a
finger at deeply rooted Ready-to-eat industry for global obesity. According to the report
of Euromonitor Internantional IMIS database “The Changing Face of Eating Habits”
Obesity has become a major global problem with changing food and eating habits and

18
therefore a trend towards vegetarianism and organic food has come seen more in
western countries. Ethical consumerism has become an issue in developed countries, as
the media increasingly highlights issues of exploitation,food safety and environmental
concerns
According to the WHO, India has been dubbed as Diabetic capital of the world with 37
million diabetics out of 150 million diabetics in the world.

Raghavan (2015) stated that food in a Globalised World has concluded that food is a
means of life but it has become meaningful investment for business. There is huge gap
in food and health related research in Indian context despite obesity almost being an
epidemic in metropolitan cities like Delhi, Mumbai, Bangalore, Kolkata and gradually
rising in other urban areas too. It is an attempt of mine to analyse in Indian context the
determinants and implications of consumers food choice particularly towards Ready-to-
eat and discussing policy implications for the same

Lowell (2015) stated that, the food industry and its impact on increasing global obesity:
A case study has looked at the current crisis which is set to engulf both the developed
and developing world using a variety of reliable sources like WHO (World health
organization) and IOTF( International obesity task force). The author has plotted the
global increase in obesity over the last two decades and points out the problems
associated with childhood, adolescent and adult obesity with growing liking for Ready-
to-eat and snacking. The author has also pointed a finger at the food industry
particulary the “fast-food industry”,which over the few decades has perfected various
marketing techniques which have been designed to make us eat more food
(supersizing) and targeting more on schools and children.

Nichanj (2016) stated that urbanities in India junk health, turn Ready-to-eat describes
how changing lifestyle and work habits decides consumers food choice for Ready-to-
eat .India has become one of the most promising markets for the international food
manufacturing and retailing sector. According to Delhi Diabetes Research center, there
are 33 million people with diabetes and India is forecast to have 75 million people with
diabetes by 2025.

19
Goyal and Singh (2016) stated that consumer Perceptions about Ready-to-eat in India:
an exploratory study have explored that the young Indian consumer has passion for
visiting Ready-to-eat outlets for fun and change but they feel that home made food is
better than convenience Ready-to-eat .Their findings have revealed that consumer
acceptability for Ready-to-eat in the future would be decided only by the quality of
food and customer service.

In above mentioned studies researchers mainly focus on factors affecting consumer

decision making regarding food products that are values, eating habits, family structure,
tastes and preferences. The young Indian consumer has passion for visiting Ready-to-
eat outlets for fun and change but they have not formulated marketing strategies to
make Ready-To-Eat food items Successful in the Indian market. It is an attempt of mine
to analyse in Indian context the determinants and implications of consumers food
choice particularly towards Ready-to-eat and discussing policy implications for the
same. This research is being done to understand it and to fill this gap.

20
 CHAPTER-3
NEED, SCOPE AND
OBJECTIVES OF THE STUDY

21
3.1 NEED OF THE STUDY
The brief study on review of literature revealed the fact that number of studies have
been carried out in the area of the consumer attitude towards ready to eat food but in
Indian context, still a wide gap exist in the research field with particular stress on the
same aspect. In order to fill the research gap the need aroused to identify consumer
attitude towards ready to eat food.

3.2 SCOPE OF THE STUDY

The scope of study was limited to Jalandhar City.

3.1 OBJECTIVE OF THE STUDY

The project is about to know the Growth trend of Ready-To-Eat food in India. In view
of changing food and eating habits in India and its implications on health and healthy
eating among the consumers, the key objectives of my study are:
1. To Study the Awareness level of Customers towards RTE foods.
2. To Find out the Acceptability of Ready- to- Eat food items in the Local Market.
3. To Identify & Analyse the factors responsible for the Purchase of Ready-To-Eat
food items.

22
 CHAPTER-4
RESEARCH METHODOLOGY

23
 RESEARCH METHODOLOGY

4.1 RESEARCH DESIGN

This study is totally a survey based model. The consumers are in the age group of
between 25 to 60 are given questionnaire to get the feedback and some of them were
interviewed personally. Based on their input the analyses were done and results arrived.
The literature reviews are done based on the secondary information’s available in the
well- known articles from good publishers and internet sources.

The study is basically an Exploratory Research to give an insight into the

determinants of consumer food choices for Ready-to-eat. An empirical investigation
has been done to study the implications of Ready-to-eat consumption on health and
healthy eating habits of the consumers using reliable data sources. The research has
been carried out in two stages. In stage I, literature review has been done to study
variables impacting consumers food choice world- wide, more precisely in India.
Indepth interviews have been done using demographic variables like age, income,
education, profession, gender, stage in family life cycle and psychographic variables
like changing lifestyles and activities. An exploratory questionnaire has been designed
on parameters concerning food choice and a consumer survey has been conducted to
study the extent to which consumer demographics and consumer psychographics has an
impact on Ready-to-eat choice. Data obtained from the convenience sample and
literature reviews has been generalized for inferring consumption patterns of Indian
consumers (population).Young consumers in the age group of 20-40 from Jalandhar’,
Punjab frequently buying the Ready-to-eat products, like MTR, Nestle, ITC,
Haldirams, Pepsico, Amul and many others represent the population of interest. This
segment of population has been collected keeping in view the difference in food choice
behaviour exhibited by school and college going children and families with and without
dual incomes towards eating ready-to-cook food from home according to the amount of
work pressure and adoption of western life-styles. The criteria of stratification is
demographic variables-age, income, education gender and stage in family life cycle and
psychographic variables-sedentary lifestyles, activities, interest and opinion have also
been used. Sample of size 100 has been used.

24
4.2 SAMPLING DESIGN
4.2.1 Universe of the study: Universe comprised of two parts as Theoretical universe
and Accessible universe.
Theoretical Universe: It includes consumers of Ready to Eat products all over world.
Accessible Universe: It includes consumers of Ready to Eat products in India.
4.2.2 Sample Size: Sample size refers to the total number of items about which the
information is desired. The sample size of the study was 100.
4.2.3 Sampling Unit: Sampling unit refers to the target population. Sampling unit of
the study was all the Jalandhar cantt and other area also .
4.2.4 Sampling Technique: The sampling techniques used was non- probability. The
researcher has to decide whether the information was to be obtained from every unit of
population under study or only a portion of population will be used. In this study
convenience sampling had been used. Convenient sampling was least expensive and
time consuming of all sampling techniques. In this type of sampling where the
researcher selects the sample according to his or her convenience.

4.3 DATA COLLECTION AND ANALYSIS:

Information has been collected from primary and secondary data.
(a) Secondary Data:-These types of data were known as published data. Data which
were not originally collected was called secondary data. The first step in any research
was the collection of secondary data. In this project, data was collected from company
records, newspapers, magazines, internet and journals.
(b) Primary Data:-Primary Data was the one which is of employee's importance and
backbone of any study. It was obtained from respondents with the help of widely used
and well known method of survey. In this study primary data is collected through
questionnaire. In this structured questionnaire was used. Questionnaire was a list of
questions given to number of persons for them to answer. It secures standardized results
that can be tabulated and treated statistically. Structured questionnaire were those
questionnaire in which there are definite, concrete and predetermined questions. In this
questions were presented with exactly the same wordings and the same form to all the
respondents.

25
4.3.1 Data Collection and Analysis
4.3.1.1 Tools of Presentation: In the study, data has been presented through figures and
tables.
4.3.1.2 Tools of Analysis: After collecting data, the analysis of data requires a number
of closely related operations such as establishments of categories, the applications of
these categories to raw data through coding, tabulation and then drawing statistical
inferences.

4.4 LIMITATION OF THE STUDY

● This research is conducted with various limitations. Firstly, the sample size is
restricted to only 100 people. The small sample size could have affected the findings of
the research. The findings could be more generalized and better explanatory by
extending the number of sample size.
● Secondly, the research could have been better by applying both quantitative and
qualitative research as this could have helped in understanding the deeper and wider
perspective of consumers’ attitude and behavior.
●Thirdly, the samples were reached through the E-mails and personally as well, and the
responses are allowed being returned through E-mail or by post and so it also had a
high refusal rate.

26
 CHAPTER-5
DATA ANALYSIS AND
INTERPRETATION

27
 DATA ANALYSIS AND INTERPRETATION

The data has been processed and analyzed by tabulation interpretation so that findings
can be communicated and can be easily understood. The findings are presented in the
best possible way. Tables and graphs had been used for illustration of findings of the
research.

Table 5.1: Demographic Profile of Customers

Demographics No. of Respondents Percentage of Respondents

Age
25-35 years 20 20
35-45 years 40 30
45-55 years 20 20
Above 55 years 20 20
Total 100 100
Gender
Male 60 60
Female 40 40
Total 100 100
Occupation
Govt. Employees 60 60
Private Employees 30 30
Businessman 10 10
Others please specify 0 0
Total 100 100
Income (Rs.)/month
Below10,000 30 30
10,000-30,000 40 40
30,000-50,000 20 20
Above 50,000 10 10
Total 100 100

28
Statement 5.1: Awareness level on RTE Foods in which they are Making Decision
On these Products
Table 5.1 : Awareness Level on Ready To Eat Food Products
Awareness No. of Respondents Percentage
Yes 73 73
No 27 27
Total 100 100

Figure 5.1: Awareness Level on Ready To Eat Food Products

Analysis and Interpretation

Chart above clearly indicates that the 73% consumers are very well aware of the
decision making process. There is another interpretation by seeing the above chart, like
the communication reach is also very high because of modern technological
advancement. There is a lot of improvement in cold chain network, processing food and
packaging. It have the capacity to replace the existing kitchen set ups of Indian families
and on the other hand it improves the hygienic condition of foods. Dairy products
become the epitome of processed foods in India. All the dairy products are hygienically
packed and by products are processed properly and it is reaching the many distant
places from the procurement area. When is the leading country for Dairy products and
cattle field, processing the products and keeping it hygienic is a good sign that the food
processing sectors are in healthy stage.

29
Statement 5.2: Do You Purchase Ready- To- Eat Food Products?

Table 5.2: Do You Purchase RTE Products?

Purchase No. of Respondents Percentage
Yes 65 65
No 35 35
Total 100 100

Figure 5.2: Do You Purchase RTE Products?

Analysis and Interpretation

65% of respondents purchase Ready to Eat products because they know how to cook
and enjoy trying new form of read meal. Respondents also belive that RTE products
save the time also.Remaining 35% donot purchase ready-to-eat food as they prefer
more homemade food.

30
Statement 5.3 : Key determinants forcing the Consumers to Buy the Product

Table 5.3: Major Key Determinants Forcing the Consumers to Buy the
Product
Factors No. of Respondents Percentage

Life style changes 20 20

Couples working 35 35
Non- availability of spices 5 5
Easy to cook 30 30
Taste factors 10 10
Total 100 100

Figure 5.3: Major Key Determinants Forcing the Consumers to Buy the Product

Analysis and Interpretation

The above graph shows that 20% lifestyle changes will be the key determinants of
choosing this product. Other factors taken into consideration are couples working, non-
availability of spices (to prepare masala), convenience and taste factors. Most of the
respondents agreed the ready to eat packets are being brought because of the long
working hours.Consumers didn’t find time to prepare traditional foods in home and
find it difficult to organise spices to prepare that masalas. From the result it is arrived
that complete life style changes are the major factors in going for these foods. Some of
the respondents agreed the taste is not a influencing factors in determining these
products.

31
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.On top of the list for the indulgent homemaker are
branded ready-to-eat food, frozen food and ready-to-fry non-veg products.Other
convenience foods like packet pasta, instant noodles and snack mixes are also finding
huge attraction among this group.

32
Statement 5.4: To Find Growing Demand for these Ready-To-Eat/Cook Products

Table 5.4: Growing Demand for these Ready-To-Eat/Cook Products

Reasons No. of Respondents Percentage
Life Style Changes 20 20
Lack of Time 40 40
Easy To Cook 30 30
Others 10 10
Total 100 100

Figure 5.4 Growing Demand for these Ready-to-Eat/Cook Products

Analysis and Interpretation

80% Respondents which is the under age of 45 are agreed that there is a growing
demand for these segment foods. In the Veg Food category the products falls may are
Alloo Matar, Palak paneer, Sarso Ka Saag, Chana Masala, Kadi Pakora, Cheese
Tomato, Dal Makhani, Rajma Masala and some of the Non-veg categories are Chicken
Curry, Butter Chicken, Karahi Chicken, Mughalai Chicken, Mutton Masala, Mutton
Korma, Karahi Mutton, Mutton Biryani .
There are many factors influencing this sector and as of today there is not particular
prediction which talks about growing demand for these products. All of the buyers
agreed there kitchen is dumped with many packed foods. Before 1980’s there is no

33
choices in these segment but today there is a major availability of products which
consumer can choose and ready to buy the products. More than regional players there
are notable MNC’s targeting India to sell their processed foods.

34
Statement 5.5: To Find Out The Major Sources Of Attraction for Buying these
Products.

Table 5.5: Major Sources of Attraction for Buying these Products.

Sources of Attraction No. of Respondents Percentage
Packaging 10 10
Aroma & Taste 10 10
Easy to Cook 30 30
Healthy 17 17
Calories 8 8
Convenience in Buying 13 13
Rare Ingredients 12 12
Total 100 100

Figure 5.5: Major Sources of Attraction for Buying these Products.

Data Analysis and Interpretation

Good packaging plays a important role in deciding this product. There are other factors
taken into consideration are aroma & taste,easy to cook, healthy, information on
calories, rare ingredients, convenience in buying, quick turn around time in cooking. In
the nut shell, we cant freeze one of the major factors is the source of attraction for these
FMCG products, because all of these other factors contributing to the growth of these
products or the major sources of attraction for these products. Most of the respondents
feel the packaged food are healthy because over the cover the ingredients and calories
level are printed properly and so they can make decision based on these factors.

35
Convenience in buying are also the another factor. Some of the ingredients are not
available nowadays and people are finding it difficult to access it, so foods combined
with rare ingredients are one of the major factors in deciding these products. Most of
the consumers are knowledgeable and used to buy these products only after carefully
reading the ingredients in a proper way. The younger couples are convenient in buying
these products and they are all having secondary information about products that they
eat so they will make decision based on these ingredients printed over the label. The
aroma will be last in many of the packages so that is not the good factor in actually
going for buying this product. Rare ingredients given in the package and some of the
dishes can be prepared only by catering specialist will also be a major factor in buying
some of the products. On the whole, it’s difficult to arrive at a conclusion at a particular
factor but all the possible influential factor contributing success to these category
products.

Statement 5.6: Media Which Gets Your Attention about RTE.

36
 Table 5.6: Media Which Gets Your Attention

Media No. of Respondents Percentage

Internet 45 45
Talk show 10 10
Magazins 15 15
Mobile Alerts 5 5
Billboards 25 25
Total 100 100

Figure 5.6: Media Which Gets Your Attention

Data Analysis and Interpretation

With increasing affordability of PCs and internet penetration, India is all set to have
121 million internet users by December 2011, a study by internet and Mobile
Association of India (IAMAI).With this internet use in India is expected to enter a
critical period of growth with the possibility of becoming the largest internet using
country in the world in this decade," the study said. Internet resources are used widely
to get information and most of the people are relying on this information to take
decision on any products or services.45% of respondents gets attention by internet. The
people we have targeted are highly educated and they are all well aware of new
technologies. All the resources are accessed by these people have shown that there is a
tremendous Influence of technology in making decision in buying processed foods.

37
Statement 5.7: Factors listed by consumers who Purchase Ready To Eat Products.

Table 5.7: Factors Listed by Consumers who Purchase Ready Meal

Factors No. of Respondents Percentage

Cost saving factor 10 10

Prefer the taste 15 15

Have good quality 20 20

Purchase to avoid the hassle of 18 18

cooking

Time saving factors due to long 15 15

working hours
Hectic life style 15 15
Perishability of food 7 7
Total 100 100

Figure 5.7: Factors Listed by Consumers who Purchase Ready Meal

38
Analysis and Interpretation
The most important observation related to the factors influencing the purchase of ready
meals within all age group is “Purchase to avoid the hassle of cooking”. The next factor
for all the age groups again comes out to ‘Time saving factor due to long working
hours’ followed by ‘Hectic lifestyle’. Besides this, the household penetration of
microwaves and preference of leisure activities over cooking are also influential
factors. Essentially, factors impacting growth of RTE foods in India are cold chain
development, disintermediation, economies of scale on supply side & rising disposable
incomes.
With better packaging technologies that are already available in the west and improved
logistics in terms of cold chain development, the category can be enlarged significantly.
However, the product range in this category remains fairly limited at this point in time
in India,” In years to come, India will provide an attractive opportunity for both Indian
and international players with a mix of demand and supply side changes.

39
Statement 5.8: Are You Brand Conscious While Buying RTE Products.

Table 5.8: Response Towards Brand Conscious While Buying RTE Products
Response No. of Respondents Percentage

Yes 70 70

No 20 20

Sometimes 10 10

Total 100 100

Figure 5.8: Response Towards Brand Conscious While Buying RTE Products

Analysis and Interpretation

The above charts and graph it is quite clear that the majority of respondents i.e.70% are
brand conscious while buying ready to eat products,20% are not conscious and
sometimes i.e. 10% are conscious.

40
Statement 5.9: Where do you purchase these ready to eat food from?

Table 5.9: Where do you purchase these ready to eat food from?

Particulars No. of Respondents Percentage

Retail store like:- Easy 65 65

Day, More
Small Retail Shop 25 25

Kiryana Store 10 10

Total 100 100

Figure 5.8: From Where You Purchase Ready To Eat

Analysis and Interpretation

From the above table it is found that 65% of consumers buy or purchase from the Retail
Store like easy day,more and 25% of respondents buy from the small retail shops and
the remaining 10% buy from the kiryana stores.

41
Statement 5.10: Nature of Purchase Decision

Table 5.10: Nature of Purchase Decision

Decision No. of Respondents Percentage

Impulsive Buying 55 55

Planned Purchase 45 45

Total 100 100

Figure 5.10: Nature of Purchase Decision

Analysis and Interpretation

From the above chart and figure it is quite clear that 55% of the consumers buy
impulsively. They go for shopping and take the products on the spot. They do not have
any plan to buy. And rest 45% planned to buy the product.

42
 CHAPTER-6
FINDINGS OF THE STUDY

43
 FINDINGS OF THE STUDY

 The results have shown the ready-to-eat market segment is defined by high growth
in middle class section peoples and their life style changes due to job factors.
 Some sections of the people agreed, availability of product choices is also deciding
them to buy such products impulsively. Even some small section of the people
agreed that most of the youngster don’t want to spend much time.
 Also the results have shown the health conscious consumers buying these products
mainly due to ingredients, brand awareness, calories content and package styling.
 The literature surveys have indicated there is a major shift in the eating habits of
Indian’s and there are many factors influence these changes.
 Information available in handy and media proliferation brings more awareness on
the food products and this will give the knowledge to make decision in buying these
products by the health conscious consumers.
 The Initial marketing strategy was focused on the brand name in India. Ready to eat
food manufacturing companies must bring an awareness of its presence, of the
arrival in India.
 Indian Market is very good platform for growth of ready-to-eat food items and they
are acceptable as an alternative to the home meal in the Indian food industry.
 The change in lifestyle and dual income consumers preferring, these types of
products.
 Rapid urbanisation is also one of the reasons for people to buy such products.
Nowadays people are also health conscious

44
CHAPTER-7 CONCLUSION
AND RECOMMENDATIONS

45
7.1 CONCLUSION OF THE STUDY
Ready meals are one of the fastest growing areas of the food market in developing, as
well as developed countries. Over time, change in consumer behavior has lead to an
increase in demand of ready meals. These changes may be due to varying aspects in
their life. The most important amongst these are an increase in personal disposable
income, consumer expenditure, number of working women, and above all the increase
of two or one person households. These shifts in socio-economic trends provide
consumers with an opportunity of saving time in terms of cooking chores, and utilizing
it in various other work or leisure activities. Consumers are spending more time on
shopping and less on preparing food. This is because various factors such as a rise in
productivity and wage rise, leave less free time and put pressure on people to utilize
their time for economic growth and with family, instead of being in the kitchen. In
terms of target consumers, older or retired people are considered to be the growing
segment to be targeted. The next growing segment is the younger generation mainly
working and constituting of one or two person households. The results show that
changing lifestyle i.e. more stressful and hectic lives due to long working hours is a
significant contributing factor in the growth of ready meals sector. The reasons
provided by the respondents, mainly working women, were that they purchase ready
meals to avoid the hassles of cooking in their busy schedule to conclude, with the
changing pattern of the consumers’ lifestyles, quick and easy to prepare food has
become more of a necessity than a luxury, hence making the ready meals industry one
of the major sectors in India.

46
7.2 RECOMMENDATIONS OF THE STUDY
The current findings demonstrate that there is a huge potential in ready meals market to
grow further. The survey provided an opportunity to interact with the consumers’ of
ready meals and collect their viewpoint towards the important characteristics, which are
missing. This will help the sellers of ready meals to reap the benefits of selling ready
meals by being in growth stage for long. It has been noticed that most of the
consumers’ have a positive attitude towards ready meals and therefore it will be
worthwhile to focus more on the recommendations or suggestions provided by them to
stimulate consumers’ buying behavior towards ready meals.
● Price Reduction: It is noticed that ready meals is purchased by majority of students
and young generation living alone. Their need is to save time and if this is satisfied at
affordable price, the ready meal sector can overshadow the take-away joints thereby
increasing their target market. By doing this the companies can also give a tough
competition to fresh food market as the consumers’ willing to save time and a lesser
price will definitely be attracted by the ready meals provided the quality remains intact.
● Increase availability: The major recommendation given or the Indian companies as
the consumers’ have taste and knowledge about Indian products 85 but due to short in
supply of their products, the consumers’ are seen shifting to next best alternative.
●Increase Indian food range/variety: Lack of variety in ready meals is believed to be
another failure in attracting large number of customers towards ready meals purchase.
Although, Indian brands are working on it and providing the consumers’ with more
variety, they should therefore make it more easily available as suggested above.
●Changes in the ingredient:Tthe companies must reduce the salt and oil content in
various ready meals due to being aware of various complications they can lead to. They
also suggested that along with no preservative food, ready meal companies may
introduce the range of ready meals, which are low fat also.
● Increase the quantity: The respondents, who form a part of smaller households,
suggested increasing the quantity of food per packet, as various ready meals are not
sufficient for one person also.
● Improve the taste: It is also suggested to improve the taste by making it taste more
like home cooked meals, as they rarely ever do.

47
Therefore, in order to encourage potential Indian consumers to buy ready meals, it is
necessary to develop a strategic marketing plan by considering the above behavioral
information provided.

48
REFERENCES

49
 REFERENCES

 Brian et al. (2014). .The Organic Food Industry: A Turning Point in the Food Trade,
Sardana, G.D and that chenkery, Enhancing Organizational Performance through
Strategic Initiatives, Handbook of Management Cases, Macmillan Publishers India
Ltd., pp.167-177.
 Capps P. (2011). The taste of tomorrow: Globalization is coming home to dinner,
The Futurist, Washington, Vol.34, Iss.6, pp.41-46.
 Comfort et al. and Lowell K. (2015). The effect of Demographic, Economic and
Nutrition factors on the frequency of Food away from home, The Journal of
Consumer Affairs, Madison,Vol.40,Iss.2,pp.372-391.
 Cullen P. (2013). Time, Tastes and Technology: the economic revolution of eating
out, British Food Journal, Vol.96, Iss.10, pp.4-6.Christopher, Wolf (1994).A taste of
tomorrow’s foods, The Futurist, Vol.28, Iss.3, pp.16-20
 Goyal and Singh et al. (2016). Food shopping and preparation: psychographic
differences of working wives and housewives, Journal of consumer research,
Vol.12, Iss.1, pp.110-113.
 Lowell et al. (2015). Growth Opportunities in an Emerging Sector-The Case of
Nirulas, Journal of Services Research, Vol.3, Iss.2, Institute for International
management and Technology.
 Nelson et al. (2012).The food industry and its impact upon increasing global
obesity: a case study, British Food Journal,Vol.106,Iss.2/3,pp.238-248.
 Nichanj et al. (2016). Marketing eating out: The influence of social culture and
innovation, British Food Journal,Vol.96,Iss.10;pp.15-18.
 Pollard and Wardle et al. (2013).What motivates consumers to buy organic food in
the UK? Results from a qualitative study, British Food Journal, Vol.104,Iss.3/4/5,
pp.345-352.
 Ragavan P. (2015). Food in a Globalised world-A cultural perspective, Journal of
International University Centre, I.I.A.S.Shimla, Vol.10, Iss.1, Summer, pp.143-156.
 Veeck et al. (2002). Consumers’ acceptability of organic food in Spain, British
Food Journal, Vol. 104, iss.8/9,pp. 670-687.

50
ANNEXURES

51
 QUESTIONNAIRE
Dear Sir/Mam,
I, am a student of MBA final year student, am doing a project on
“Consumer Attitude Towards Ready to Eat Food Products”. For the purpose of
completing the task, I have prepared a questionnaire. Therefore , I would be highly
obliged if you spare a few minutes to fill it up.
Thank you

Demographic Information:

Name: …………………………………………………………

Gender: Male Female

Age: 0-20 21-30

31-50 Above 51

Occupation: ……………………………………………………

Income: Less than 10,000 10,000-20,000

20,000-30,000 30,000 and Above

1. Are you aware of ready to eat foods?

Yes
No

2. Do you purchase ready-to-eat food products ?

Yes

No

3. What are the reasons for purchasing ready-to-eat food products ?

Life Style Changes

Couples Working

52
 Non- Availability of Spices

Easy to Cook

Taste Factor

4. What are the reasons for growing demand of ready-to-eat food products?

Life style changes Others

Lack of time
Easy to cook

5. What are the source of attraction for buying rte products?

Packaging
Aroma and taste
Easy to cook
Healthy
Calories
Convenience in buying
Rare ingredients

6. Media which gets your attention towards ready to eat food?

Internet
Talk show
Magazine
Mobile alerts
Billboards

7. Factors listed by consumers who purchase ready to eat food?

Cost saving factor

Prefer the taste
Have good quality
Time saving factor
Perishability of product

53
8. are you brand conscious while buying ready to eat food product?

Yes
No
Sometime

9. Where do you purchase these ready to eat food from?

Retail store like: Big Bazaar, Reliance Fresh
Small Retail Shop
Kiryana Store

10. Nature of purchase decision.

Impulsive buying
Planned purchase

54