The document provides an overview of the packaged food industry and ready-to-eat (RTE) food segment in India. It notes that the packaged food industry in India could reach $30 billion by 2015. The RTE food market is a new concept that is growing rapidly due to increasing disposable incomes, changing lifestyles, and a need for convenience. Popular brands like Haldiram's and ITC have entered the RTE market with a variety of products. Their marketing strategies include segmentation, targeting, product development, pricing, placement, and promotion tactics. Both companies face opportunities and threats from increasing competition in the growing Indian RTE food industry.
2. Table Of Contents
1. Introduction
2. Industry Highlights
3. Popular Brands & Its Products
4. Haldiram
STP
4P’s
SWOT Analysis
5. ITC
STP
4P’s
SWOT Analysis
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3. Introduction
India has become one of the fastest-
growing markets for packaged food in the
world.
Sales of Packaged Food in India by
Region in 2011:
East and Northeast: 21%
North: 39%
South: 18%
West: 22%
India's packaged food industry could
touch $30 billion by 2015.
The most promising sub-sectors includes
– Beverages, Frozen Foods, Nutrition
Staples, RTE meals, etc.
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4. Industry Highlights
What are RTE foods
Reasons for RTE foods to enter Indian Market
Consumer Types
Consumer Preferences
Growth in the RTE segment
OUTLINE
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5. Ready To Eat Food
Processed
Require little/No preparation
RTE market - New concept in
India
Immense potential
Fastest growing sector
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6. Reasons For Market Penetration
Global Indians Migrant Working
NRIs Population
Indian look for traditional Need for on-the-go products
Home cuisine abroad Convenience is priority
Busy Schedule Less time Improved standard of living
Western Influence Dual Incomes
Urban More
Lifestyle Income
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7. Types of Consumers
Consumers Needs
Consumer Preferences
CONSUMER MARKET
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9. Consumer Preferences
Good for health
Easy To Digest
Natural Ingredients
Less on Spices
and Additives
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10. Consumer Preferences
Value for Money
Smaller Packaging
Long Storage Life
No Loss of flavor
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11. Consumer Preferences
Tasty
Variety of flavors
Trendy Packaging
Quick Preparation
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12. Consumer Needs
Tasty and Healthy
Rapid Cooking
Handy Packaging
Convenient
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13. Tata Strategic Management Group (TSMG)
Survey: Ready to Eat Food in Metropolitan Cities Estimate
Market for Breakfast-mixes in India
GROWTH OF RTE SECTOR
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14. Analysis: Tata Strategic Management Group (TSMG)
TSMG leading management
consultancy firm in South Asia.
RTE Market in India
3000
2900 Factors Contributing to growth
2500 RTE Market in
India
Cold chain development
2000
Figures in Crore
1500 Increasing disposable incomes
1000
Diminishing culinary skills
500
128
0 Need for convenience on the
2006 2015 demand side
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15. Survey: Ready To Eat Food In Metropolitan Cities
Responses from 3000 Bachelors
representatives households
(10 metros in INDIA)
14 Households 28
With Children Prefer
RTE
Without Children 72
Prefer
RTE
Nuclear Families 86
Working
Women
Bachelors
33
Prefer
Study conducted by ASSOCHAM (Jan 2011) RTE
Associated Chambers of Commerce & Industry of India 67
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16. Market For Breakfast Mixes In India
2008 2009 2010 2011
-Figures in Crores
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19. HALDIRAM’S
Business started : 1937 in Bikaner
Brand Value : $4 million
Share in organised : 20%
market
Export : USA(1993)
Current Exports : $6 million
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22. Market Segmentation
DEMOGRAPHIC SEGMENTATION
AGE AND LIFE CYCLE STAGE
INCOME
BEHAVIOURISTIC SEGMENTATION GEOGRAPHIC SEGMENTATION
BENEFIT SOUGHT ZONES
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30. SWOT Analysis
STRENGTH WEAKNESSES
EXCELLENT BRAND AWARENESS MANUFACTURING PROCESS NOT
COMPLETELY AUTOMATIC
TRUST OF CONSUMER INVOLVED ONLY IN INDIAN
SNACKS
PRODUCT VARIETY
HIGH MARKET SHARE
STRONG DISTRIBUTION CHANNEL
ATTRACTIVE PACKING
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31. SWOT Analysis
OPPORTUNITY THREAT
SOUTH INDIAN FOOD SEGMENT INCREASING COMPETITION
BAKED SNACKS CHANGE IN CONSUMER TASTES
HOME DELIVERY
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32. ITC
ITC was established on August 24, 1910
as Imperial Tobacco Company of
India Limited in Kolkata.
The name of the Company was changed
from Imperial Tobacco Company of India
Ltd. to India Tobacco Company Ltd. in
1970 and then to I.T.C. Ltd. in 1974
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33. Introduction
READY TO EAT & SNACKS
Kitchen of India brand launched
in 2001.
Bingo! was launched in March
2007.
In July 2003, ITC forayed into the
Biscuits market with
the Sunfeast range of
Glucose, Marie and Cream
Biscuits.
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34. Segmentation
GEOGRAPHIC (ITC PRODUCTS ARE AVAILABLE
ALL OVER THE WORLD)
RURAL
URBAN
DEMOGRAPHIC ( ITCS PRODUCTS ARE MADE
FOR EVERYONE)
AGE
GENDER
OCCUPATION
PSYCBOGRAPHIC ( SUITS ALL LIFESTYLE)
LIFESTYLE
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34
35. Targeting
Betting big on the farm sector, ITC is
planning to increase its penetration in
the rural areas like Uttar
Pradesh, Madhya Pradesh, Rajasthan
and Maharashtra to get better return
for their produce.
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35
36. Positioning
In 70’s ITC has positioned itself by saying
For the gracious people
A touch of gold
It is still differentiating itself on purity and
quality of its experience
The brand stands for celebratory
attitude, celebrate the feeling is the
new message .
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40. Place Mix
ITC already had a well-established
distribution network.
Dealers are part of Marketing Team.
Attractive incentive linked with high
volume are given to the dealers.
E-chouppal
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45. SWOT Analysis
Established Family Brand Growing package and canned food market in
Strong Global Corporate Brand ( NIL ) India by 15% annually.
Specialization in food processing category High brand awareness of Indian consumer
marketing and distribution in Urban market Other product category like Biscuits, Chips
Presence of other product segments of food and Ready to Eat Market still unexplored.
category : Dairy Products, Chocolate, Infant foods Opportunity to be substitute to other snacks
category of food products
Category Internationally
Single product focused competitors like
Generic brand in India
haldiram.
Low rural market presence constraints
Less Entry Barriers in the Market segment for
Uniform Brand for all food category
product category
Brand Proliferation
ITC strong base in Indian Market
Substitute Product to Product Segment.
competitors with long history in product
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46. ITC
Haldiram has a simple ITC already had a well-
distribution channel. established distribution
network.
They have started dealing in
frozen food. No frozen food
Advertisement through word Incurs high advertisement
of mouth only. costs.
Traditional sweets are present Presence of traditional items
in there product line. is absent.
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Introduction of the Food IndustryEstimated to be nearly worth Rs 75,000 crore (US$ 13.56 billion) and is growing at a healthy CAGR of 17 per cent. The food services sector in India is expected to reach Rs 1,370 billion (US$ 24.77 billion) by 2015.The most promising sub-sectors includes ready-to-eat food, beverages, processed and frozen fruit and vegetableproducts, marine and meat products,
1.Ready to eat food includes food items that are processed and does not require any effort. At most, they require heating as in the case of frozen food items.Ready to eat meal is a new concept for India . RTE market in india has remained under penetrated going to the factors such as consumer’s penchant for freshness, low affordability and the indian housewife’s preference for home cooked food.IMMENSE POTENTIALChange in indian cooking and lifestyleDual incomeInnovative kitchen appliances4. Media
FASTEST GROWING SECTORThe factors contributing to the growth would be changes like cold chain development, disintermediation, streamlining of taxation, economies of scale on the supply side, coupled with increasing disposable incomes, diminishing culinary skills and the need for convenience on the demand side.
Any company in the pre packed food has to deal with four types of consumers which are as following:-1.Old 2.Price conscious3. Health conscious4.Young
On the screen are the consumer needs that packed fool fulfillNutritionTasteTime savingConvenient
Breakfast Market Has drastically increased in INDIA due to the change in lifestyle and more no. of working population so they prefer to have convenient meal as their breakfast rather than skipping their breakfast.
Pictures for the cover page.
Started its business in 1937 in Bikaner .The first company they started exporting to was USA way back in 1993It is a $4 million brand now in uk,usa,and middle eastExports have rised from $1.7mn in 2001 to $6 mnThe hope to sustain a 40% growth in exports over the next 5 years.Presently company has 8% share in organised market.
Frozen food,namkeens,minutekhaana,chips,bhelpoori,panipori,whoopies, taka tak
AGE : Haldiram provides with traditional mixes for the middle aged and the elderly. They have options like takatak and whoopies for the kids. Then they cater to the needs of the students or bachelors staying away from home through its ready to eat food .Halidram is offering different package size on the basis of affordability of different consumers(small and big packs of namkeens etc)BENEFITS SOUGHT: haldiram caters to the needs of both health conscious and non health conscious customers. It has got chips etc for first category and sugar free packaged sweets for the health conscious.ZONES: halidirams has different variants of its snacks for north indian snacks and different for south indian states.
1.WOMEN : as they are the buyers for household needs ond deciding factor on what to be served to the guests. Haldiram targets them for their namkeens.also, it targets working women its ready to eat meals.NOT SURE PART BELOWKIDS( not sure) through takatak and whoopies.The main customers of the savory snacks are age group 30-60 and the range of the income is around $ us 100 per month and above.
It is positioning itself as time saving, easily available, tasty , real and authentic indian food option.
the product profile consist of whole range of varities from sweets to namkeens ,from chips to minute khana and frozen food. The namkeen business contributes to 70% of haldiram’s total sales.. Here the north Indian food category dominates with the south indian category having little or no presence.DISTRIBUTION:they have defined their distribution network with respect to the weight and price of their various products. this is because they have defined their retail outlets in terms of the kind of product they keep. Eg: a 10 gm bhujiya packet is generally opted by the “ paanwala’s” and very small retailers. Thus , they have a diff distribution channel .Similarly, a parallel channel of disributor is for the “ kirana stores” in various colonies and localities here our middle class housewife visits and who prefers the less than ½ kg packets but maore than the small chillar of 10 gms. This segment of consumers is supplies through a different set of disributors who stock the 200gm and 400gm packets.Thirdly., the big modern stores like spencer’s , vishal mega mart , reliance fresh etc generally prefer keeping the 500 gm to 1 kg packets.
PRICE:competitive price to penetrate the unorganised markets. Prices vary according to the weights and types of snacks and ready to eat meals.PROMOTION:attractive posters, brochures and mailers have been designed to appeal the masses. The punchline for haldiram’s products was ,’ always in good taste’. Advertisements depicting the entire range of Haldiram's sweets and namkeens were published in the print media (magazines and newspapers) and hoardings in high traffic areas. These advertisements had captions such as 'millions of tongues can't go wrong,' 'What are you waiting for, Diwali?' and 'Keeping your taste buds on their toes.'
Introduction of the Food IndustryEstimated to be nearly worth Rs 75,000 crore (US$ 13.56 billion) and is growing at a healthy CAGR of 17 per cent. The food services sector in India is expected to reach Rs 1,370 billion (US$ 24.77 billion) by 2015.The most promising sub-sectors includes ready-to-eat food, beverages, processed and frozen fruit and vegetableproducts, marine and meat products,
EXCELLENT BRAND AWARENESS: Hladiram is not spending huge amount on advertisement. It depends on the word of mouth for its consumer awareness.TRUST OF CONSUMER: over the years haldiram has delivered high quality food to consumers and has managed to gain consumer’s trust in the brand.PRODUCT VARIETY: At present , Haldiram is the only player in the market that is producing all types of ready to eat meals ranging from biscuits, chips to frozen food.HIGH market share: Haldiram enjoys a large consumer base .STRONG DISTRIBUTION CHANNEL : THE brand is available in almost all outlets be it a panvala next door or supermarkets like spencer’s. ATTRACTIVE PACKING: The packaging of the products makes its consumption even more easier and gives the option of storing the product for future use. Eg: the zip up option in case of namkeens.Invoved only in indian snacks
Though haldiram produces packaged south indian snacks, they focus more on north indian cuisine. Therefore, they can increase the number of products in south indian category.BAKED SNACKS: can go for fat free and low calory options like baked snacks.ChANGE IN CONSUMER TASTES: nowadays people are becoming more inclined to western snacks and are not interested in Indian snacks.INCREASING COMPETITION: THERE is increased competition from brands and local players( unorganised sector)
Sub-brands Bukhara, Dum Pukht and Dakshin as premium brands. v Aashirvad brand extended in ready-meals as low price product.
Introduction of the Food IndustryEstimated to be nearly worth Rs 75,000 crore (US$ 13.56 billion) and is growing at a healthy CAGR of 17 per cent. The food services sector in India is expected to reach Rs 1,370 billion (US$ 24.77 billion) by 2015.The most promising sub-sectors includes ready-to-eat food, beverages, processed and frozen fruit and vegetableproducts, marine and meat products,
Introduction of the Food IndustryEstimated to be nearly worth Rs 75,000 crore (US$ 13.56 billion) and is growing at a healthy CAGR of 17 per cent. The food services sector in India is expected to reach Rs 1,370 billion (US$ 24.77 billion) by 2015.The most promising sub-sectors includes ready-to-eat food, beverages, processed and frozen fruit and vegetableproducts, marine and meat products,
Introduction of the Food IndustryEstimated to be nearly worth Rs 75,000 crore (US$ 13.56 billion) and is growing at a healthy CAGR of 17 per cent. The food services sector in India is expected to reach Rs 1,370 billion (US$ 24.77 billion) by 2015.The most promising sub-sectors includes ready-to-eat food, beverages, processed and frozen fruit and vegetableproducts, marine and meat products,