Developed marketing strategy for ready to eat (RTE) food product line in India which still has untapped market potential from a consumer behavior prospective

1. Can Ready- to-eat mixes be
marketed differently?
Allen Sanders
Prathyusha Raviprolu
Rohit Rakshit
Ridhima Arora
Sarvagya Nayak
Pankaj

2. 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.

3. 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
MTR Market Share
65%
35%
MTR Others

4. Industry Overview
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 PromotionalTechniques
• 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
TSMG RTE Growth
Forecast
(Figures in Crores)
128 225
2900
3500
3000
2500
2000
1500
1000
500
0
2006 2013 2015

5. Current Scenario-trends
• Quality of food- Video
• Just like mother’s cooking- Video
• Convenience- Video
• Engagement- Culture- Video
• Convenience
• Quick fix for hunger

6. 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

7. Target Groups
• Bachelor
• Working Women
• Children

8. 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

9. How to target different class of
customers?

14. Current positioning of ready to
eat mixes
• Convenience of consumption
• Rapid preparation
• Taste
• Handy packing
• Long shelf life

15. Reasons for low buying
behaviour
• Health concerns
• Continous comparison with restauraunts
• Limited number of modern retail outlets
• Price

16. 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.

17. 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.

18. Thank you!!!

19. • Videos which we can show-
• http://www.youtube.com/watch?v=1m1uiSkPzK0(v
ariety)
• http://www.youtube.com/watch?v=nsL5kOr0FVA
• (talks abt mtr brand image change)
• http://www.youtube.com/watch?v=AiZmzMdQfiQ-
(adventure)
• http://www.youtube.com/watch?v=Rw-LHDov2lA-variety