Can Ready- to-eat mixes be

marketed differently?

Allen Sanders

Prathyusha Raviprolu

Rohit Rakshit

Ridhima Arora

Sarvagya Nayak

Pankaj

Industry Overview

• Ready to Eat (RTE) food was introduced in India originally in 1987, but the concept failed initially

• However, recently it started gaining popularity among the Indian consumers due to various factors such as increasing income levels and hectic lifestyle among others

• In comparison to domestic market, demand for Indian RTE food products is more in the global market and players earn a significant share of their revenue via exports

• During 2013, Indian ready to eat market was valued at around INR 225 Cr.

Industry Overview

Drivers

• Growing Income and Consumption

• Rapid Urbanization

• Increasing Working Women Population

• Convenience Factor

• Growing Retail Market

• Marketing Campaigns

Challenges

• Poor Supply Chain and Distribution Facility

• Consumer Behavior and Perception

• Rise in Packaging Costs

• Health Concerns

Major Players

• MTR

• Gits

• ITC

• Bambino

• Kohinoor Foods

65%

35%

MTR Market Share

MTR Others

Market

• Indian ready to eat market was valued at INR 225 Cr. In 2013

• Expected to grow at 25-30% over the period of next five years

• According to Tata Strategic Management Group, the RTE market is expected to grow to INR 2900 crore by 2015.

Trends

• Exhibitions and Events

• High Focus on Export

• Adaptation of New Technologies

• Innovative Promotional Techniques

• Gaining Special Attention in Retail Format Stores

• Retailers Going for Private Label RTE Meals

• Launching Innovative and Region Specific Products

• Frozen RTE Products Gaining Popularity

128 225

2900

0

500

1000

1500

2000

2500

3000

3500

2006 2013 2015

TSMG RTE Growth Forecast

(Figures in Crores)

Industry Overview

• Quality of food- Video

• Just like mother’s cooking- Video

• Convenience- Video

• Engagement- Culture- Video

• Convenience

• Quick fix for hunger

Current Scenario-trends

Limitations of current advertising

• Removing the skepticism surrounding the

freshness of RTE foods.

• Providing correct and detailed nutritional

information to consumers

• High fat and cholesterol content in RTE mixes

• Mostly vegetarian meals available

Target Groups

• Bachelor

• Working Women

• Children

Category of ready to eat mixes

Breakfast mixes- Oats upma from MTR, oats

idli, multigrain dosa etc

Main- course mixes- Dal makhani, paneer butter

masala, vegetable pulao, sambhar rice

Sweet mixes- kulfi kesar badam, gulab jamun,

etc

Snack mixes- includes khaman dhokla, muruku

etc

How to target different class of

customers?

Current positioning of ready to

eat mixes

• Convenience of consumption

• Rapid preparation

• Taste

• Handy packing

• Long shelf life

Reasons for low buying

behaviour

• Health concerns

• Continous comparison with restauraunts

• Limited number of modern retail outlets

• Price

Required positioning

• Bringing in cheap but nutritional materials like

vegetable pieces, coarse cereals.

• Packing should represent the nutritional

attributes and scientifically driven health

benefits.

• Micro wave versus cooker

• Positioned for males of the family- success of

act -2 popcorn.

Recommendations

• Limited to mostly Indian recipes

• Lack of Non-Vegetarian options in the product range

Expand the product range

• Current product is targeted towards the Indian house wife

• Working population is at large ignored

Target working population

• Customers have a negative perception about how healthy these products are.

• Focusing on these aspects would appeal to the analytic personality type

Focus on the health aspect

Prices- Compared to restaurants

• The price of the product is a huge concern for the customer.

• Shift the comparison from ready to eat and home cooked meals to read to eat and restaurant food, in particular the home delivery segment.

Thank you!!!