ready to-cook food scenario
DESCRIPTION
RTC is primarily targeted the Busy Lifestyle, Convenient Seekers, Upwardly Mobile WomenTRANSCRIPT
Food Scenario in INDIA
Ready-To-Cook By: Akhilesh Sharma,SO Nestlé S.A.Balaji Institute Of modern management
Ready-to-cook Food• Foods that are processed and/or prepared to be ready to cook with very little
additional effort. Precooked or half cooked food, then frozen, 'ready to cook in an oven‘ or cooked, then frozen 'ready to microwave'
• New concept in India.
• Fastest Growing Sector.
• Immense potential.
Ready-to-cook Food: Key growth drivers• Huge Production Potential
• Rising Income level
• Change in food habit
• Growing Need for Convenience
Indian Food Industry
Ready-to-eat Ready-to-cook Dairy Fishries and Sea Food
0
2
4
6
8
10
12
14
2006-07 2010-11 2014-15
Source: Ministry of Food Processing Industries
(In ` 0000' crores): Size of Market
RTC food can be broadly classified into:• Low Moisture Food
• Medium Moisture Food
• High Moisture Food
Moisture Example
LOW 1-5% Instant Mix
Medium 6-20%Snacks,
sweetmeats
High 20-60%Freshly baked
products
Reasons for Market Penetration• Global Indians or NRIs
Indians look for traditional home cuisine abroad
• Urban Lifestyle
Busy Schedule Less time Western Influence
• More Income
Improved standard of living and Dual-incomes
Market
Type
• Consumer market Type.
Preferen
ce
• Consumer Preference
Need
• Consumer Need
Segmen
t
• Consumer Segment
Consumer Market Types:
Busy/Young
Price Conscious
Choosy/Old
1.Good for Health2.Easy to Digest3.Natural Ingredients4.Less on spices & Additives
Choosy/Old
1.Value for money2.Smaller packaging3.Long Storage Life4.No loss of flavor
Price conscious
1.Tasty 2.Variety of Flavors3.Trendy 4.Packaging5.Quick preparation
Young/ Busy
Consumer Need
• Tasty & Healthy
• Rapid Cooking
• Handy packaging
• Convenient
Consumer segmentsIndulgent homemakers &Traditional homemakers
Upmarket & Metro
Married WomenLarge Family
Setup
Consumer Segment
7%93%
Traditional
homemakers
100%
ConservativeSensitive towards Price & Health
Indulgenthomemakers
60% try Branded orPackaged foods
Spends ` 10K pm on grocery
Reluctant to try out Branded foods
Spends < ` 5K pm on grocery
7%Indulgenthomemakers
Marketers target this growing segment
Upmarket & Metro Married Women
Large Family Setup
60% try Branded orPackaged foods
Spends ` 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?
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
•Since 1970
MTR
•Since 2000
Knorr
•Since 1953
Parampara
•Since 1975
Kitchen Of India
About 100 Suppliers
Around 300 products
MTRAmong 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
KnorrVentured Into Processing Food Industry
Offers packaged Indian RTC & Soups
• 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 RTC sectorAnalysis: Perception of Ready to Cook Mixes .
Survey: Ready to Cook Food in Metropolitan CitiesEstimate: Market for RTC-mixes in India
Analysis: Perception of Ready to Cook Mixes
Factors contributing to growth
Cold chain development
Increasing disposable incomes
Diminishing culinary skills
Need for convenience on the demand side
2006 20150
500
1000
1500
2000
2500
3000
3500
128
2900
RTC Market In India
RTC Market In India
Source: Tata Strategic Management Group (TSMG)
Figu
res
in C
ores
Survey: Ready to Cook Food in Metropolitan Cities
Responses from 3000 representative households(10 metros in India)
With Children
Without Children
Nuclear Families
Bachelors
Study conducted By ASSOCHAM (Jan 2011)Associated Chambers of Commerce & Industry of India
86
14Households
Prefer RTC
72
28
Bachelors
Prefer RTC
67
33
Working Women
Prefer RTC
2009 2010 2011 2012
150196
280
400
Market for RTC-Mixes in India
Figures in Crores
Estimated growth
30% over the next few years
Convenience food sector
has grown 70% over the
past decade
Global Symposium on Ready-to-Cook (RTC) 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
Addressed food challenges:
Promoting RTC 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