The ready to eat industry is a highly competitive one. To be successful, Company must be able to project the right image as well as meet the need of the customers. Marketing strategies must be formulated to attract customers. This report looks at some aspects of the Ready-to-eat market in India. It examines the buying behaviour of Indian ladies and gauges their perception of marketing variables.

Process of conversion of Management problem into Measurement Question

MANAGEMENT PROBLEMTo find out behaviour and purchase habits of Indian ladies for ready-to-eat snacks

RESEARCH PROBLEMTo identify the factors affecting the overall demand of Ready-to-eat snacks despite being the convenience product. Market penetration of the Ready-to-eat snacks Indian ladies perception about Ready-to-eat snacks Buying pattern of Ready-to-eat snacks Factors affecting repeat purchase of Ready-to-eat snacks

DEFINING THE VARIABLESIndependent variable: Ready-to-Eat marketDependent variable: Buying Behaviour of Indian ladies.

DATA COLLECTION METHODResearch tool: QuestionnaireSurvey method: To obtain a better insight of the Ready-to-eat market, survey was conducted and data was collected through Personal survey method. A questionnaire was designed to answer the following questions:Design of questionnaire:It is composed of four segments in this investigation.The first part contains information of: What are the preference of the consumer regarding brands Belief about Ready-to-eat snacks When do they buy Ready-to-eat snacks Which brand of Ready-to-eat snacks they heard ofThe second part contains: Price which the customers are to pay for the Ready-to-eat snacks Role of retailers in promoting Ready-to-eat brand From where customers get information about Ready-to-eat products and brands fromThe third part consists: Comparison of Ready-to-eat snacks with homemade food Importance of Brand ambassador in promoting product Whether customer is satisfied with the range being provided by Ready-to-eat brands.The fourth part consists of: Name Age Marital status Occupation Which is necessary to predict the lifestyle of the respondent and to know the family background, this will help in relating how consumers preference varies with varying parameters.

In brief, Management problemResearch problemInvestigation questionMeasurement question

To find out behaviour and purchase habits of Indian ladies for ready-to-eat snacks

Understand the factors influencing buying decision making of Ready-to-eat snacks. The factors under consideration are advertising, price, product, etc. Which products they prefer?

From where they like to purchase?

When do they purchase?

From where they get reference?

Do they consider child preference?

Which brand is the market leader?

What is the frequency of their purchase?

What is the size of pack they like to purchase?

Are they satisfied from the range of product available?

QUESTIONNAIRERespected madam,I, YOGESH TEKWANI, a student of TYBBA from BRCM College of Business Administration, am doing a survey on the topic Study of Behaviour of Indian Ladies while buying Ready-To-Eat (RTE) Snacks as per the requirement of the BBA curriculum. Kindly give me your support by providing the needed data. Information given by you will be strictly confidential and will be used for academic purpose only.

Q1. Do you buy ready to eat snacks? Yes NoQ2. Which of these do you mostly prefer? Branded snacks Unbranded snacks Any of theseQ3. When do you buy ready to eat snacks? While shopping for monthly grocery items Separately during emergencyQ4. How often do you buy ready to eat snacks? Once in 1-2 weeks Once in 3-4 weeks Once in 5-6 weeks On regular basisQ5. When do you generally have ready to eat snacks? Whenever feel hungry During movies or while watching TV Anytime of the day

Q6. Rate the product from 1-3 as per your preference (with 1-most preferred and 3-least preferred)PRODUCTSRANK

Chips

Namkeens

Fun foods (Fraiams, cheese-balls, etc)

Q7. Which brands amongst given below you heard of?PRODUCTSBRANDS

Chips Fritos-Lays ITCs-Bingo Garden Janta Balaji Other, specify _____

Namkeens Haldiram Garden S M Foods-Peppy Namkin Aritos-Lehar Other, specify _____

Fun foods Fritos-Kurkure S M foods-Peppy Bonker ITCs-Bingo Other, specify _____

Q8. Do you store ready to eat snacks? Yes NoQ9. Which size of pack do you prefer? 16 gm /32 gm 100 gm 500 gm 1 kg

Q10. Kindly rate your opinion on the following parametersSTRONGLY AGREEAGREENEITHER AGREE OR DISAGREEDISAGREESTRONGLY DISAGREE

RTE snacks are easily available whenever I need

I dont see any sort of health problem due to consumption of RTE snacks

I think a ready to eat snacks is value of money

I think RTE snacks is not tasty as freshly cooked home food

I know that RTE packs are manufactured at the best of quality concern

Q11. Are you influenced to buy RTE snacks due to large quantity of RTE placed at retailers? Yes No May beQ12. How do you respond if the desired brand is not available? Take another Visit next shop Postpone your purchaseQ13. Do you consider your children preference? Yes NoQ14. Do you think brand ambassador play an important role in endorsing RTE snacks? Yes NoQ15. What is the source from where you get information regarding ready to eat snacks? Print Ads TV Hoardings Magazines Newspaper RetailersQ16. Are you satisfied with the range of RTE snacks available? Yes No

PERSONAL DETAILS

NAME: ______________________________________________________________________AGE: 18-25 20-40 41-55 55 aboveMARITAL STATUS: SINGLE MARRIEDOCCUPATION: Service Self employed Housewife Retire/othersThank you.ANALYSIS OF DATA & INTERPRETATIONQ1. Do you buy ready to eat snacks? Yes NoOBJECTIVE: This question is designed to know whether respondent is aware about ready-to-eat snacks and have purchased it and to check the market penetration of Ready-to-eat snacks.ANALYSIS: This can be analyzed using percentage method and can be represented using Bar chart.Percent

Yes100%

No-

It is clear from the above chart that 100% of the respondent has purchased and used the ready to eat snacks and have given their rating based on their experience. From this we can conclude that Ready to eat snacks has penetrated sufficiently in the Indian market.

Q2. Which of these do you mostly prefer? Branded snacks Unbranded snacks Any of theseOBJECTIVE: This question is to determine the preference of the respondent (branded vs. unbranded). ANALYSIS: This can be analyzed using percentage method and can be represented using Pie chart.Percent

Branded snacks72.5%

Unbranded snacks5%

Both22.5%

Out of 40 ladies surveyed, 72.5% of them prefers to have branded snacks, whereas 5% of them prefer to have both branded and unbranded snacks.

Q3. When do you buy ready to eat snacks? While shopping for monthly grocery items Separately during emergencyOBJECTIVE: This question is to determine on what occasion the respondent is buying ready to eat snacks.ANALYSIS: This can be analyzed using percentage method and can be represented using Pie chart.Percent

While shopping for monthly grocery items55%

Separately during emergency45%

55% of the respondent said that the RTE snacks are the part of their monthly grocery shopping and not emergency purchase.

Q4. How often do you buy ready to eat snacks? Once in 1-2 weeks Once in 3-4 weeks Once in 5-6 weeks On regular basisOBJECTIVE: This question helps us to know the frequency by which respondent is buying Ready to eat snacks.ANALYSIS: This can be analyzed using statistical tool MODE as Mode tells the result which is occurring for the most times.Percent

Once in 1-2 weeks45%

Once in 3-4 weeks42.5%

Once in 5-6 weeks2.5%

On regular basis10%

It is clear that most of the respondent prefers to buy ready to eat snacks once in 1-2 weeks.

Q5. When do you generally have ready to eat snacks? Whenever feel hungry During movies or while watching TV Anytime of the dayOBJECTIVE: This question is to determine when respondent prefers to consume ready to eat snacks.ANALYSIS: This can be analyzed using weighted average mean method.Percent

Whenever feel hungry50%

During movies or while watching TV17.5%

Any time of the day32.5%

Out of 40 surveyed ladies, 20 of them prefer to have RTE snacks whenever they feel hungry, 7 of them prefer to RTE snacks during movies or while watching TV; whereas 13 of them prefer to have RTE at any time of the day. From this we can conclude that ready to eat snacks act as convenience food which can be consumed whenever you feel hungry.

Q6. Rate the product from 1-3 as per your preference (with 1-most preferred and 3-least preferred)PRODUCTSRANK

Chips

Namkeens

Fun foods (fraiams, cheese-balls, etc)

OBJECTIVE: This question is designed to know about the most preferred snackANALYSIS: This can be analyzed using weighted average rank method.Product/preferenceChipsNamkeensFun foods

Most preference22108

General preference17914

Least preference12118

Total404040

Out of 40 surveyed ladies, 22 prefer chips, 10 prefer Namkeens and only 8 prefer fun foods as their most preferred option. As far as 2nd preference is concerned, 17 prefer chips, 9 prefer Namkeens and 14 prefer fun foods. With the reference to the last option only 1 out of 40 surveyed ladies prefers Chips as the last option; whereas 21 of them has Namkeens as the last option and 18 of them has fun foods as their last option. Fun foods as whole is generally been selected as the substitute to wafers and Namkeens.Q7. Which brands amongst given below you heard of?PRODUCTSBRANDS

Chips Fritos lays ITCs Bingo Garden Janta Balaji Other, specify _____

Namkeens Haldiram Garden S M Foods Peppy Namkeens Aritos - Lehar Other, specify _____

Fun foods Fritos Kurkure S M Foods Peppy Bonker ITCs - Bingo Other, specify _____

OBJECTIVE: This question is asked to know the market leaders of ready to eat snacks as per customers and their first preference of choiceANALYSIS: This can be analyzed using statistical tool MEANProduct: ChipsCHIPSPERCENT

Fritos lays50%

ITCs- Bingo28%

Garden30%

Janta7.5%

Balaji67.5%

Others-

It is clear from the above chart that maximum respondent know about Balaji, Lays and Bingo and these brands have maximum market share.Product: NamkeensNAMKEENSPERCENT

Haldiram77.5%

Garden42.5%

S M Foods-Peppy Namkeens25%

Aritos -Lehar25%

others-

It is clear from the above chart that maximum respondent know about Haldiram and Garden and these brands have maximum market share.

Product: Fun foodsFUN FOODSPERCENT

Fritos - Kurkure62.5%

S m foods peppy30%

Bonker12.5%

ITCs - bingo52.5%

others-

It is clear from the above chart that maximum respondent know about Kurkure, Bingo and Peppy and these brands have maximum market share.

Q8. Do you store ready to eat snacks? Yes NoOBJECTIVE: This question is to know whether the respondent stores ready to eat snacks or not ANALYSIS: This can be analyzed using Percentage method.Percent

Yes92.5%

No7.5%

Out of 40 ladies surveyed, 92.5% of them store ready to eat snacks.

Q9. Which size of pack do you prefer? 16 gm /32 gm 100 gm 500 gm 1 kgOBJECTIVE: This question is asked to determine the preference of the respondent regarding quantity of purchase.ANALYSIS: This can be analyzed using statistical tool MODEPACKPERCENT

16 gm/ 32 gm10%

100 gm52.5%

500 gm35%

1 kg2.5%

Out of 40 respondents, 4 of them prefer pack of 16/32 gm, 21 of them prefer pack of 100 gm and 14 of them prefer pack of 500 gm. Only 1 of them prefers pack of 1 kg. This clearly depicts rte snacks are considered as time pass food.Q10. Kindly rate your opinion on the following parametersSTRONGLY AGREEAGREENEITHER AGREE OR DISAGREEDISAGREESTRONGLY DISAGREE

RTE snacks are easily available whenever I need

I dont see any sort of health problem due to consumption of RTE snacks

I think a ready to eat snacks is value of money

I think RTE snacks is not tasty as freshly cooked home food

I know that RTE packs are manufactured at the best of quality concern

OBJECTIVE: This question is to determine the consumer perception (belief) regarding ready to eat snacks.ANALYSIS: This can be analyzed using Percentage method. RTE snacks are easily available whenever I need: This question is set up in order to check the consumer feedback regarding easy availability of ready to eat snacks.Percent

Strongly agree50%

Agree42.5%

Neither agree or disagree7.5%

Disagree-

Strongly disagree-

Almost 92.5% of the respondents feel that RTE snacks are easily available whenever required. This shows the commendable distribution network established by RTE marketers.

I dont see any sort of health problem due to consumption of RTE snacks: This question is set up in order to check the consumer feedback regarding health problem related to ready to eat snacks.Percent

Strongly agree10%

Agree32.5%

Neither agree or disagree40%

Disagree15%

Strongly disagree2.5%

15% respondents feel that RTE snacks are not good for health while 40% respondents neither agree nor disagree with the above fact which is concerning statistics for the RTE companies. When a product is considered harmful for health its reliability decreases and brand value loses. Same is the case for RTE. This could be one of the reasons why in spite of efforts taken by companies the growth in RTE segment is stagnant. This is very critical factors affecting the behaviour of consumers.

I think a ready to eat snacks is value of money: This question respond to value of money for ready to eat snacks.Percent

Strongly agree7.5%

Agree47.5%

Neither agree or disagree20%

Disagree25%

Strongly disagree-

55% respondents feel that RTE packs are value for money while only 25 % respondent feel they are not while the rest 20% respondents did not agree on either. Thus it is clear that people think RTE snacks are value of money.

I think RTE snack is not tasty as freshly cooked home food: This question is designed in order to check the consumer feedback regarding the taste between ready to eat snacks and homemade food.Percent

Strongly agree10%

Agree32.5%

Neither agree or disagree22.5%

Disagree32.5%

Strongly disagree2.5%

42.5% respondents feel that RTE snacks are not tasty as homemade food and only 34%respondent feel otherwise. This depicts unique characteristics of Indian household which always believes that homemade foods are more tasty and nutritious.

I know that RTE packs are manufactured at the best of quality concern: This question is set up in order to check the consumer feedback regarding quality of ready to eat snacks.Percent

Strongly agree17.5%

Agree42.5%

Neither agree or disagree25%

Disagree7.5%

Strongly disagree7.5%

As the result suggest 25% respondent are not sure whether ready to eat meals are manufactured under best quality standards. If the manufacturers can repose confidence by eliminating all doubts in the consumers' minds and assure them that these products are not a health hazard, then the consumption may increase.

Q11. Are you influenced to buy RTE snacks due to large quantity of RTE placed at retailers? Yes No May beOBJECTIVE: This question identifies the role of retailer display in consumer purchase.ANALYSIS: This can be analyzed using Percentage method.Percent

Yes30%

No35%

May be35%

It is clear that customer is just not influenced by retailer display but also considers other factors before purchase.

Q12. How do you respond if the desired brand is not available? Take another Visit next shop Postpone your purchaseOBJECTIVE: This question is designed to check brand loyalty of the respondents.ANALYSIS: This can be analyzed using Percentage method.Percent

Take another brand35%

Visit next shop55%

Postpone your purchase10%

55% respondent says that they will next shop and 10% respondent says that they will post pone their purchase if the desired brand is not available which shows the brand loyalty on the part of the consumers.

Q13. Do you consider your children preference? Yes NoOBJECTIVE: This question is design to know whether ladies consider their child preference for purchase of Ready to eat snacks or not. ANALYSIS: This can be analyzed using Percentage method.Percent

Consider75%

Do not consider25%

It is clear that most of the ladies do consider their child preference for the purchase of RTE snacks.

Q14. Do you think brand ambassador play an important role in endorsing RTE snacks? Yes NoOBJECTIVE: we know the role of brand ambassador plays an important role for success of product but Ready to eat snack is something that can be accepted once the customer tries it. So this question is made to check their response.ANALYSIS: This can be analyzed using Percentage method.Percent

Yes55%

No45%

It is clear that respondent still think that quality and taste matters more than brand ambassadors.

Q15. What is the source from where you get information regarding ready to eat snacks? Print Ads TV Hoardings Magazines Newspaper RetailersOBJECTIVE: This question is designed to check about the promotion schemes that should be used by the companies and what media channel.ANALYSIS: This can be analyzed using weighted average mean method.Percent

Print Ads20%

TV85%

Hoardings10%

Magazines12.5%

Newspaper22.5%

Retailers22.5%

As seen from the above chart the ready to eat snacks have the highest visibility in TV commercial and then Retailers and Newspaper. The companies should leverage this option to increase the visibility and the penetration of the Ready to eat snacks. Q16. Are you satisfied with the range of RTE snacks available? Yes NoOBJECTIVE: it is the open ended question to check whether respondent is comfortable with range of RTE snacks available in the market.ANALYSIS: This can be analyzed using Percentage method.Percent

Yes85%

No15%

Around 85% of the respondent were comfortable with the range of rte available but rest still feel that rte has much more potential and can capture more market.

CONCLUSION & RECOMMENDATION

Lays, Haldiram, Kurkure and Balaji has the maximum market share in the market.

Ready to eat snacks are cost effective.

The major concern for consumers is the health aspect. They have a perception that these Ready to eat snacks are not good for health. Hence marketers have to touch upon this point. The advertising, communication and promotion should revolve around this point.

Indian Households are averse to outside food and they feel only home cooked food can provide the taste and quality. This is a big hurdle for the RTE industry and the efforts should be taken to improve the quality of the snacks by using better manufacturing, and packing methods.

As it is seen that the consumers came to know about RTE snacks from Television Ads and display at malls. This proves that two promotion methodologies were very effective. The third and the most important as far is food products is concerned word of mouth is where marketers should work on. This can only happen if the consumers are satisfied with their experience and will they give a positive word of mouth feedback to their relatives and friends. This is the most effective form of communication when it comes to something edible as consumers tend to trust people who have already used it rather than advertisement.

BRCM COLLEGE OF BUSINESS ADMINISTRATION

RESEARCH METHODOLOGY PROJECT

TOPIC:STUDY OF BEHAVIOUR OF INDIAN LADIES WHILE BUYING READY TO EAT SNACKS

SUBMITTED BY: YOGESH TEKWANI ROLL NO: 236 TY BBA DIV-3

SUBMITTED TO: MR OJAS DESAI

SUBMITTED ON: 23 AUGUST, 2010