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    Packaged food Packaged food Presentation Transcript

    • Packaged food - Triggers for innovation Apurb Sinha Mita Tanna Executive PGDM (2010-11)
    • History
      • Anything that is ready to be consumed is called ready to eat
      • It would be a good thought to refer to history books to see what people eat during the wars of Ramayana and Mahabharata
      • RTE food theory is ancient solution for today’s modern world
    • History
      • After world war II in US. Problem of not able to carry enough food to feed the soldiers
      • Introduction of canned goods with whole food.
      • Canned meats were replaced with lightweight preserved meats to save weight and allow more rations to be carried by soldiers carrying their supplies on foot
      • In 1963, the Department of Defense began developing the Ready-to-Eat with modern food preparation and packaging technology along with outsourcing it to commercial companies
      • Post war, many commercial food companies were left with surplus manufacturing facilities
      • developed new lines of canned and freeze dried foods that were designed for use in the home
      • TV dinner from aluminum to microwaveable materials usually plastics
    • Key features
      • Convenience
      • Time saving
      • Energy saving
        • During preparation
        • During consumption
      • Effort saving
    • Need
      • Increase in urbanization and change in lifestyle
      • Shortage of time
      • Increasing price of energy
      • Lack of cooking skills
      • Improved ability of cooking gadgets
      • Increased demand of new taste
      • Convenience
      • Food safety and hygiene condition
      • Technology advances
      • Changing social and economic parameters
    • Need continued
      • Social Changes
        • Split and nuclear families
        • Larger working women class
        • Migrants
        • Sense of freedom and independence amongst teenagers and young adults
        • Changing priories
      • Cultural exposure
        • Media
        • Oversea travel
        • Increased exposure to west
    • Need contd.
      • Income
        • Improved standard of living
        • Increased disposable income
        • Education
        • Modern thinking
      • Change in life style
        • Concept of breakfast at home is fading
        • Carrying lunch from home
    • Need contd.
        • Working couple
        • Lack of time in morning hours
        • Availability of food next door
        • Change in corporate culture. Meeting and eating are not mutually exclusive activities now
    • Commonly used phrases
      • Ready-to-eat
      • Ready-to-fry
      • Ready-to-serve
      • Ready-to-cook
    • Types
      • Military MRE
      • Kid’s Meals
      • Survival kits
      • Special needs
      • Care packages
    • Primary stake holders Primary Stake Holder Military Working couples Working Men/Women Students Bachelors Tourists Nomadics/Mavericks
    • Secondary stake holder
      • Market researchers
      • Product designers
      • Product manufactures
      • Package designer
      • Cover designers
      • Policy makers
      • Transporters
      • Warehouses – cold storages
    • Secondary stake holders
      • Cold shelf manufacturers
      • Store managers
      • AC manufacturers
      • AC operators
      • Stock keeper
      • Buyers
    • Classification
      • Ready-to-eat & Ready-to-Serve
        • Idlis, dosas, pav bhaji, meat
        • pre-cooked sausages, ham, chicken products, curries, chapattis, rice,
        • vegetables like aloo chole, navratan kurma, channa masala
    • Classification
      • Ready-to-cook
        • instant mixes like cake mixes, gulab-jamun mix, falooda mix, ice-cream mix, jelly mix, pudding mix etc.,
        • pasta products like noodles, macaroni, vermicelli etc
    • Factors affecting packaging
      • Product characteristics
        • The type of food and its composition, moisture, fat, protein, flavour etc
        • Form and shape of the product – smooth, regular, irregular, with sharp edges etc.
        • Nature of the product – crisp, brittle, sticky etc.
        • major ingredients – oil based, fat rich,dry
    • Packaging contd.
      • Spoilage
        • Biological spoilage due to micro-organisms
        • Abiotic spoilage due to chemical reactions like oxidation, hydrolysis and enzymatic reactions.
      • Environmental factors
        • like light, humidity and temperature.
    • Value parameters
      • Time to cook
      • Time to consume
      • Standalone product
      • Use of energy (heating, cooking etc)
      • Requirement of cooking skills
      • Variety in taste
      • Regional variety
      • Convenience
      • Food safety & hygiene
      • Calories consumed
    • Value parameters contd.
      • Shelf life - packaging
      • Cost
      • Preservatives
      • Taste and quality
      • Easy to carry
      • Last touch (mother/wife)
    • Value parameter mapping
    • Distribution chain for small retailer Consumer Source :Friend from HUL
    • Distribution chain for Big retailer Consumer Source :Friend from HUL
    • Markups/Pricing
    • Process Buy Plant Buy Raw material Manufacture Supply Plant manufacturers Wholesalers
    • Manufacturing- corn curls
    • Equipments required Ref: Labh group of companies Flour mixer To mix corn meal with water to prepare the flour for Kurkure Rotary dry extruder To cook the corn meal and extrude the Kurkure from the die. The Rotary Die twists and curls the meal before extruding giving a uniform texture Automatic Frying Machine To fry the Kurkure in hot cooking oil. The uniform frying introduces the crunchy taste to the Kurkure Cooling Conveyor To cool the fried Kurkure and reduce the temperature before packing Automatic Seasoning System To add required seasoning to the fried and cooled Kurkure to give the different flavors to them Pouch Packing Machine To pack the Kurkure into attractive printed pouches with gas flushing
    • Equipments/Land Cost Equipments Description Qty Unit price cost Plant combo 500 kgs per 8 hr shift 1 1200000 1200000 Working table 1 5000 5000 weighing Machine To weigh raw material and finished products 2 10000 20000 Big containers to do any intermediate processing if required 1 2000 2000 Equipment cost 1227000 Facility Rent area 5000 sq ft(MIDC Turbhe) source: magic bricks 10000 Label & Packing material 750000
    • Raw material Raw material required Qty Required Per KG cost Wheat flour 30 Salt 10 Seasoning powder Edible oil 50 preservatives
    • Human resource Human resource requirement manager 1 Production/technical specialist 1 machine operators 3 labours/helpers 6
    • Food act - Generally
      • if the article sold by a vendor is not of the nature, substance or quality demanded by the purchaser and is to his prejudice, or is not of the nature, substance or quality which it purports or represented to be;
      • if the article contains any other substance which affects, or if the article is so processed as to affect, injuriously the nature, substance or quality thereof;
      • if any inferior or cheaper substance has been substituted wholly or in part for the article so as to affect injuriously the nature, substance or quality thereof;
      • if any constituent of the article has been wholly or in part abstracted so as to affect injuriously the nature, substance or quality thereof;
      • if the article had been prepared, packed or kept under insanitary conditions whereby it has become contaminated or injurious to health ;
      • if the article consists wholly or in part of any filthy, putrid, rotten, decomposed or diseased animal or vegetable substance or is insect-infested or is otherwise unfit for human Consumption;
    • International Laws
      • India - Prevention of food adulteration act, 1954 of India
      • FDA – USA 1938
      • The Food Standards Act 1999 – UK
      • The EU integrated approach to food safety - European Food Safety Authority (EFSA)
      • Food Safety standards- ANZ
    • Packaged Food – Laws India
      • Food Safety  and Standards  Act , 2006
      • Prevention of Food Adulteration Act (PFA) 1954 and Rules
      • The Standards of Weights and Measures Act, 1976
      • Standards of Weights and Measures (Packaged Commodities) Rules, 1977
      • Meat Food Products Order, 1973 (MFPO).
    • Clearances
      • Factories Act
      • Labour Laws
      • NOC from fire angle from Fire Dept.
      • Approval of Building plan from industrial centre corporation / local administration.
      • Power Release Certificate
      • Consent to Establish under Environment Act
    • Recent trends
      • Health conscious
      • No trans-fat
      • No sugar
      • High grain foods
      • Wellness food
      • No preservatives
      • Organic food
      • Natural
    • Govt. Policies
      • Automatic approval of foreign equity participation up to 51%
      • Income tax rebate of 100% of profit for five years and 25% of profits for the next years for packaging of foods
      • The National Policy aims to increase the level of food processing from 2% to 10% in 2010 and to 25% in 2025
    • Govt. Policies
      • The level of institutional credit to be provided by banks and financial institutions has been increased from US$ 17.41 billion during 2003-04 to about US$ 23.76 billion in 2005-06
      • Automatic approvals for foreign investment up to 100%, except in few cases, and also technology transfer
      • The government has decided to give a boost to research and development in this sector with its decision to set up the National Institute for Food Technology and Management in collaboration with Cornell University of the US.
      • Zero import duty on capital goods and raw material for 100 per cent export-oriented units. Custom duty on packaging machines reduced. Central excise duty on meat, poultry and fish reduced to 8%
    • Govt. Policies
      • Income tax rebate allowed (100% of profits for 5 years and 25% of profits for the next 5 years) for new industries in fruits and vegetables besides institutional and credit support.
      • Government - developing 30 mega food parks which would cover the entire food processing cycle 'from the farm gate to the retail outlet'.
      • Government would provide a grant of US$ 12.53 million for each one, private investment to the tune of US$ 75.21 million would be encouraged in these parks.
      • The first five such parks would be set up in Punjab, Maharashtra, Andhra Pradesh, Jharkhand and the North-East region in the first phases.
    • Osterwalder Business Models Customer Acquisition Wholesaler C&F Agent Retailer big small Tasteing joints
      • VALUE
      • Taste
      • Quality
      • Quantity
      • Safe packaging
      • Nutrition
      • CHANNELS
      • Procurement
      • Manufacturing
      • Distribution
      • Retailing
      • RELATIONSHIPS
      • Supplier
      • Vendor
      • Retailer
      • Distributor
      • C & F agent
      CLIENTS
        • REVENUE STREAMS
        • Retailers
        • Big
        • Small
        • COST CENTRES
        • Raw Materials procurement, Manufacturing,
        • (Outsourcing), SG & A, Marketing, Advertising
      • KEY
      • PARTNER
      • Raw material suppliers
      • Machine supplier
      • Packet printer
      • Dealer
      • Retailer
      • C& F agent
      • KEY
      • RESOURCES
      • Raw Materials
      • Machines
      • Labour
      • Packagin g
      • KEY
      • ACTIVITIES
      • Procurement of raw material
      • Mixing of raw material
      • Manufacturing
      • Packaging
      • Weighing
      • Checking the standards
    • Primary Survey
    • Customer Segmentation
      • Young and busy
        • New flavors, products, quality, attractive packaging
      • Old and choosy
        • Easy to digest, less spicy, natural flavor
      • Price conscious
        • Value for money, smaller packs
    • Preference of each segment
      • Taste
      • Handy packaging
      • Long shelf life
      • Safe packaging
      • Cost
    • Strategy
      • Three product range based on segmentation
      • Old & Choosy
        • Food based on Atta, vegetable and cereals
        • Decent packaging that highlights nutrition values
        • Promotion near community stalls, temple
    • Strategy contd.
      • Young & busy
        • New flavors like Italian, cheesy..
        • Attractive and colorful packaging
        • Taste trails at the malls and meeting joints
      • Price conscious
        • Smaller packs
        • Less price as compared to rivals
        • Decent quantity
    • Health conscious
      • Participation – invite recipes
      • Promotions as healthy foods
      • Use of natural ingredients like vegetable
      • Packaging - focus on nutrition
    • Customer expectation
      • Price is no longer a deciding factor for most of the consumers
      • Consumer delight
      • Ready to try more variations