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

2006 2013 20150

500

1000

1500

2000

2500

3000

3500

128 225

2900

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!!!

• Videos which we can show-• http://www.youtube.com/watch?v=1m1uiSkPzK0

(variety)• 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