rte scenario in india
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food scenario in India
Outline
• What are RTE foods• Reasons for RTE foods to enter Indian Market• Consumer Types• Consumer Preferences• Growth in the RTE segment
Ready to eat foods
Semi-cooked/Processed
Require little/No preparation
RTE market - New concept in India
- Fastest growing sector
- Immense potential
Inception
• India – Defense Food Research for Indian army
• US – Meal, Ready-to-Eat (MRE) for soldiers
• NASA – RTE foods for astronauts
Reasons for Market Penetration
Global Indians NRIs
Urban Lifestyle
Improved standard of living Dual-incomes
Busy Schedule Less time Western Influence
More Income
Migrant working population
Indians look for traditional home cuisine abroad
Need for on-the-go productsConvenience is priority
CONSUMER MARKET
Types of ConsumersConsumer NeedsConsumer Preferences
Consumer Market types
Price Conscious
Busy/Young
Choosy/Old
Health Conscious
Consumer Preferences
Choosy/Old
• Good for Health• Easy to Digest• Natural
Ingredients• Less on spices
& Additives
Consumer Preferences
Price Conscious
• Value for money• Smaller packaging• Long Storage Life• No loss of flavor
Consumer Preferences
Busy/Young
• Tasty • Variety of Flavors• Trendy Packaging• Quick preparation
Consumer Needs
• Tasty & Healthy
• Rapid Cooking
• Handy packaging
• Convenient
CONSUMER SEGMENTS
Indulgent homemakers &Traditional homemakers
Consumer Segments
93 %7%Indulgenthomemakers
Upmarket & Metro Married Women
Large Family Setup
ConservativeSensitive towards Price & Health
Traditionalhomemakers
93 %7%Indulgenthomemakers
Upmarket & Metro Married Women
Large Family Setup
60% try Branded orPackaged foods
Spends Rs. 10K pm on grocery
ConservativeSensitive towards Price & Health
Reluctant to try out Branded foods
Spends < Rs. 5K pm on grocery
Traditionalhomemakers
Consumer Segments
7%Indulgenthomemakers
Marketers target this growing segment
Upmarket & Metro Married Women
Large Family Setup
60% try Branded orPackaged foods
Spends Rs. 10K pm on grocery
Consumer Segments
Prefer
Need
Concern
Foods
7%Indulgenthomemakers
Marketers target this growing segment
New Innovative Products
Wider Food Choice
Freshness & Availability
Free Of Spoilage/Contamination
Consumer Segments
93 % Traditionalhomemakers
Why are they reluctant to try out Packaged foods?
Consumer Segments
93 % Traditionalhomemakers
Why are they reluctant to try out Packaged foods?
Prefer
Need
Concern
Foods
Home Cooked Food To Others
Nutritious/Healthy Food
GM Foods/Preservatives
Less Fat/Calories
Consumer Segments
POPULAR BRANDS & MARKETING STRATEGIES
Popular Indian ProductsStrategies adopted by Indian players
Popular Indian Products
• MTR Foods• ITC• Haldirams• Nestle• Kellogg India
About 100 Suppliers
Around 300 products
MTR• Among Top 5 processed food manufacturers in India
• 22 delicious Indian curries, Gravies, Rice
• 6 new breakfast mixes
• Focus on Traditional Indian foods
• Extensive local advertisements
• Convenient pricing
ITC
Two Brands - Kitchens of India & Ashirvaad
Markets Indian food in US, UK, Europe & Australia
Indian cuisine: Biryanis, Curry Pastes and dishes
• Focus on selling Indian cuisine abroad
• Targets Global Indians
Britannia Healthy Start Britannia – Pioneer Fast moving consumer goods (FMCGs)
Launched Britannia Healthy Start, Jan 2011
Ready-to-cook breakfast mixes: Upmas, Pohas, Porridges & Oats
• Packed with Multi-grains, Vegetables, Pulses & Nuts
• 5 minutes cook time
• Rs 33 - 45 price
• (150 -170 gm packets)
Sundrop Yummy meals
AgroTech Foods - Largest Premium Brand-refinedoil segmentLaunched Sundrop Yummy meals, Jul 2011
Ready to eat rice-based breakfast
• Aimed at students/working professionals
• Quick, affordable and healthy food alternatives
• Innovative products: Peanut Butter, Act II Popcorn
Haldirams
Traditional Indian Sweet-maker
Ventured Into Processing Food Industry
Now Exports Indian Snacks - Western World
Offers packaged Indian Snacks: Chana Masala, Samosa, Pakoras
• Focus on Packaging
• No compromise on Taste/Quality
Marketing Strategies
• Easily Digestible – Cereals, Veggies, Atta Vitamins/Nutrients
• Add Flavors – Vegetables, Cheese, Masala, International flavor
• Nutrient info/Health Benefit – Display on packaging
• Promotion/Free trails
• Competitive Price/Quantity than rivals
• Traditional Food alternatives
• Target Diet Conscious – Less cholesterol/Calories
GROWTH OF RTE SECTOR
Analysis: Tata Strategic Management Group (TSMG)Survey: Ready to Eat Food in Metropolitan Cities
Estimate: Market for Breakfast-mixes in India
Analysis: Tata Strategic Management Group (TSMG)
2006 20150
500
1000
1500
2000
2500
3000
3500
128
2900
RTE Market In India
RTE Market In India
(Fig
ures
in C
rore
s)
• TSMG leading management consultancy firm in South Asia
• Factors contributing to
growth – Cold chain development
– Increasing disposable incomes
– Diminishing culinary skills
– Need for convenience on the demand side
Survey: Ready to Eat Food in Metropolitan Cities
86
14
Households
Prefer RTE
67
33
Working Women
Prefer RTE
Responses from 3000 representative households(10 metros in India)
With Children
Without Children
Nuclear Families
Bachelors
72
28
Bachelors
Prefer RTE
Study conducted By ASSOCHAM (Jan 2011)Associated Chambers of Commerce & Industry of India
2008 2009 2010 2011
150196
280
400
Market for Breakfast-mixes in India
Figures in Crores
Convenience food sector has grown
70% over the past decade
Estimated growth
30% over the next few years
Global Symposium on Ready-to-Eat (RTE) Foods: Opportunities for R&D, Entrepreneurship and Markets
• The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT)
• Associated Chambers of Commerce and Industry of India (ASSOCHAM India)
• Ministry of Food Processing, Government of India
• Hyderabad (April 25-27, 2011)
Global Symposium on Ready-to-Eat (RTE) Foods: Opportunities for R&D, Entrepreneurship and Markets
• Addressed food challenges:
– Promoting RTE foods to wider market
– Meeting the demands for innovative, healthy & safe meal
solutions for a busy lifestyle
– Empowering Entrepreneurs
– Introducing innovations in Manufacturing/Packaging
– Increasing role of micro/small/medium scale enterprises
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