Market analysis of instant fast food industry

Market abridgment of instant fast feed fabricationThe plan of non-consumer is vanishing at a faster rate and is be glide path al close non existent in the f humbled sequence of consumerism. Marketers atomic number 18 finding new ways and techniques to rope in new set of consumers previously not looked upon seriously. The trend followed till forthwith was that the housewives bought individual viands ingredients ranging from spices, vegetables, neverthelesster/ghee, etc. and mixed it in abstract proportions to prepargon a meal. The admiration of meal was primarily governed by calculates oftentimes(prenominal) as expertise of the cook, quality of the ingredients use, cooking time followed, etc. however still one placenot be sure of how will the meal taste. This was more(prenominal) difficult for bachelors, working men living away from family and working women. Marketers were undefeated to find this gap in naughtyly cluttered nutriment industry. The decide was Read y-to-eat.Ready-to-eat is defined as the status of the aliment existence ready for speedy consumption at the point of sale. It could be raw or cooked, tempestuous or chilled, and bear be consumed without further heat-treatment including re- h eating.11 Centre for viands refugety, regimen of Hong KongThese argon impact foods and no further processing is take. They atomic number 18 safe to eat and requires few legal proceeding to cook if it requires cooking. The basic principle posterior RTE foods is Convenience for normal consumers and Diet nutrition in causa of health conscious consumers. The health category of RTE foods is RTE cereals which are rich in vitamins, fibers and suck less scratch line content.INDUSTRY ANALYSISUnited States is one of the major(ip) countries of Ready-to-eat foods producers and consumers. All major RTE foods producers with an exception of nestle belong to US. Because of much(prenominal) a big market, advertisers gets quickly attracted. The television publicizing budget average for the food industry is 2-4 percent of sales , but the RTE foods segment attract near 13 percent of the sales as advertising budget.India is in any case rising market for these products. RTE foods in the normal practice are consumed in a short span of time. The advancement of promotion engineering science and introduction of retorting technology in India has made these items commercially viable and long lasting i.e. high shelf life-time.RTE market witnessed a go upth of 7% between the yr 2000 and 2005.In 2009, Indian RTE foods market was estimated to be around $33.5m, registering a CAGR of around 15% over the last five years.RTE segment is expected to grow to a Rs. 2900 cr (US$ 604.20 mn) industry by 2015. (Source Tata Strategic Management radical)RETORTING branchThe operating principle of retorting process is heating foods prone to microbial spoil in hermetically sealed containers to extend the shelf life.Three factors trusty are These factors must be taken into consideration slice conception a retorting process.Safety is the fore roughly concern. The retorting process involves inactivation of microorganism that can result in spoilage and in turn affect unexclusive health. For this, the F value is the measure followed. F value is the number of minutes to destroy the organism at 250 degree Fahrenheit. Under the food condom standard, different F value has been specified for each microorganism. Over heating also affects the finished product quality. So the product and process has to be designed carefully.Quality of Retort process is determined by dickens factorsFrom microorganism side, how much heat is requisite to inactivate the organism.From processing side, how much heat is reaching the product.The selection of specific retort style is by and large moved(p) by following factors Container shape and size easier in case of cylindrical shaped crossway type formulation , ingredients , etc.Throughput req uiredEnergy EfficiencyVARIOUS RTE BRANDS IN INDIASome other players are GitsMTRPriya foodsRajbhog pabulums Inc.Rainbow nutrients IndiaSatnam Overseas Ltd.Tasty Bite, etc.DIFFERENCE BETWEEN READY-TO-EAT (RTE) AND READY-TO-COOK (RTC)Most consumers often lacks clarity to differentiate between RTE and RTC, and often refer both as RTE. But they are different.RTC products are different type of outgoinges and consumer adds vegetables or core to prepare a meal/dish.On the other transcend, RTE products are fuck products which seldom require any preparation and are often in the frozen form/cans/packets.Out of the estimated current production of 20,000 T, about 80 percent is exported.CONSUMER BEHAVIOR ANALYSIS AND FACTORS AFECTING FOOD SELECTIONThere are several(a) factors influencing buying behavior and motivation among the consumers. In the broader sense, the most controlling factors in food selection are food availability and cultural factors.Societal ConsiderationsWith the increas e in environmental awareness in the past few years, the food product composition and encase has become a major determinant of the buying behavior.Health factor has become the basal concern for almost every consumer. This has given rise to the use of inborn ingredients (i.e. it contains no additives and no artificial ingredients) and environmentally friendly packaging.Safety and surround Quality are other food choice motivations by consumers. This is straightaway become the competitive weapon for food marketing.Other factors linked to societal considerations and in turn shape purchase motivations are Well existenceSocial relationshipsEnjoyment PleasurePersonal IdentityFood defines the consumer individualized identity and it also acts as a self-referent part. Diet pitch can trigger in redefining the self.Food habits change doneout the life cycle. Consumer in the adolescence stage will realize different food habits than in the later stages of life.Gender differences also defi ne the food selection habits. As per the normal understanding men are considered that they have more food than women. The figure conscious female counterpart highly influenced by the slimming industry often vary their food selection based the motivation they have to look good. Weight control (i.e. low in calories, fat and in turn control my pitch) is a determinant. Men are more provoke in Vitamin content and women are more concerned about the sugar content.Familiarity also kicks in while making food selection. Consumers carry these questions in mind while planning and shopping stuff Is what I ordinarily eatIs familiarIs like the food I ate when I was a childConvenienceAnother important factor in food selection is convenience. The stages of consumption process define the relevance of convenience.The most time and energy consuming step is Preparation. But the effort required in this step defines the consumer behavior and factors affecting the food selection.RTE foods producers look previous to this gap while defining their strategies.Sensory AppealIn this era of consumerism and competition, one of the main differentiator is Sensory Appeal. Every consumer want the food to smell and look nice, have a pleasant texture and should taste good.Packaging here plays an important role. In RTE foods, the physical evidence for the consumer is the jammed unit. The taste is bouncing to be as per the standards followed by the company change the product and is always in line with what consumer want. The difference is created in harm of the look of the packet.PricePrice is one of the major motivation factor in food selection. Price factor is always considered and monitored in coitus terms. Purchase motivation for RTE foods vary on the following factorsCost of eating out v/s cost of RTE foodEffort required to cook food v/s cost of convenience in RTE foodPrice of RTE food is determined by following factors growthBrand Value of the companyType of Packaging kingdom of lin ageShelf life of the productOther factors are followingProduct and marketing messageAvailability of the product in terms of uninterrupted stock replenishmentReachability to the retentiveness stocking the productEthical Concern Country of origin, politically approved country.MEDIUM OF INFORMATIONRetailers and food producers tap duple mediums to highlight the cracks present at the store or under the portfolio respectively.MediaRTE Food industrys advertising budget is 13% of sales which is second notwithstanding to the railcar industry. The average budget for other components of the food industry is 2-4% which is much dishonor in comparison to RTE. Marketers have always believed that RTE foods need more advertising efforts to tap the new customers and retain old ones.Source British Food Journal , Volume 105 , Issue 3Advertising has been the firsthand weapon. The use of media personalities and cartoons in the ads has always been welcomed by the consumers. Marketers have also tr y to rope in children through with(predicate) their ads. The basic principle behind it is to overhear their loyalty at a very young stage. Also it acts as a catalyst in Impulse buying at the store level.The only disadvantage of Advertising is high cost involved.Direct broadcast (DM)Direct mail (DM) is another method to provide information to the consumers to abet in their food purchase. It is also referred to as Direct market. Unlike Advertisements which are broadcasted and their reach is subject to the viewership ratings of the slot they were telecasted in, Direct commit is more modify and sent to individual consumers. Since each consumer receives a copy of the offer register customization is possible for a group of consumer with common interests. It also permits marketers to experiment with the mailers and its formats.These are generally used by hypermarkets and supermarkets to notify customers of daily, weekly or fortnightly offers.Through these direct mails the store als o sends coupons and schemes to the customers catering to a grumpy festive seasons which are believed to be higher sale period.The new concept in direct mail being followed these days is Targeting Mailing. Marketers define the goat group for the mails and then through database analysis send the mailers to only that group. This in turn has following advantages More Direct CommunicationSaves cost unless Potential customers are notified and other customers are not disturbed.Disadvantages of Direct Mail Often treated as junk or spam by the consumersStores can only differentiate on the basis of offers and the way it is communicated through DMInternetAmong the sources of information for food purchase this is the least used method because of low involvement characteristics in the food purchase. Very few consumers visit network websites such as store websites to obtain food information.Amazon.com offers the catalogue for the RTE products. Bundled packages are interchange in the combo off er.With the growth of internet and families turning to every single purchase, use of internet for food purchases is bound to grow in the coming year.Stores stacking other stuff also such as apparels and accessories, electronics, etc. along with food items, general format followed by the supermarkets and hypermarkets, use internet as a selling medium but not for food items. With the increase in competition and new strategies coming up, time is near when they start selling packed RTE foods also. Groceries or vegetables being sold as loose items will then be only food item left to stock. The benefits of e-commerce have been realized by most retailers.Illustrations from the RTE Food IndustryTo explain the process of Instant Food or Ready-to-eat food and the consumer conduct, two companies have been chosen from the Indian Market.MTR Foods Pvt. Ltd. vs ITCs Kitchens of IndiaMTR Foods Pvt. Ltd. is among the major processed food manufacturers in India and is owned by Norwegian Company M/s O rkla.Kitchens of India is an ITC brand which majorly exports various RTE food packages of specialty Indian cuisine.Marketing Mix abbreviationProductMTR Normal Day to day food varieties such as paneer, dal, etc.Portfolio comprises of 22 authentic Indian curries, gravies and rice. ascorbic acid% Vegetarian offerings100% subjective and no preservatives addedISO 22000 and HACCP Certified quality productRetorting and packaging technology from Defense Food Research Lab, Mysore.Kitchens of IndiaPrestigious offerings from the chefs of ITC Welcome Group Restaurants. E.g. Dal Bukhara from Bukhara Restaurant of ITC Maurya Shereton and Dal Dakshin from ITC Dakshin.Four layer packed to keep back the royal taste and smellStandards are monitored to compliancePriceMTR offering are normal day to day food and is less valuable than ITCs Kitchens of India which is more expensive in comparison.Also the offerings by ITC are positioned for the fag group which wants to experience the pleasure of royal palates at the comfort of their star sign.MTR Paneer cover Masala 300g pack is priced at MRP of Rs. 50On the same hand, Kitchens of India dishes start from Rs. 89PlaceBoth MTR and Kitchens of India mainly exports to other countries and sell through the retail setup in both India and other countries.Kitchens of India also services its customers through its website www.kitchensofindia.com . It also won the Best Website Award at the PC foundation Web Awards 2008.Website is the medium to promote the brand and display the recipes of various offerings. single-valued function of classical music has been seen prominent with both the websites to portray the Indian culture. processionKitchens of India promotion strategy circles around the product offering highlighting the warmheartedness Feast for the senses. The key message is bringing the royal tastes directly to consumers nursing home without having to visit ITC Welcome group hotel.Kitchens of India promote its brand through various food exhibitions such as Anuga in Germany. These are also displayed and sold at food festivals across the ITC group hotels.MTR promote its offering on the essence Freshly cooked home meal. It targets the price sensitive consumer.Brand Analysis on the basis of factors influencing buying behaviorHealthMTR has positioned itself as a freshly cooked home food with modest offerings. Kitchens of India on the other hand has positioned as brand offering the royal palates matched to the same standards at the ITC Restaurants. ground on the study done among Indian consumers by Datamonitor, 50% of the consumers considered low or lowers cholesterol and low or reduced fat as a motivator during food purchase.Both brand understand this fact and mentions the health contents of the dish on the packets.Sensory AppealMTR packaging is as per the standards do not attract the visual senses of the consumer. The product is also home cooked food offerings and smell factor is present as per the home cooked foo d.On the other hand Kitchens of India packaging is more munificent to entertain its image and price range. It has an outer paper bag like covering.Natural ContentBoth brand claim to be 100% innate(p) and contains no preservatives. This is possible only because of the retorting technology used and the packaging. Consumer choices are affected by these factors.Weight ControlKitchens of India offers meals or dishes which are more lavish and specialty dishes high in oil and butter content which is de-motivator for weight conscious people. These dishes are not preferred at the daily basis.On the other hand, MTR offerings are more close to the weight conscious people. climateMood factor plays an important role in defining the consumer behavior. This can be specified by the rebellious behavior at the junior age to eat things different from what others in the family are having.Kitchens of India offerings promotes itself on this behaviour to compel consumers to have that royal meal once a while without even visiting any ITC hotel.MTR is not seen utilizing this behaviour characteristic in its promotion or marketing communication.