Consumer Behaviour

Individual Assignment-2

‘How can RTE food be marketed better in India?’

Submitted by:

Abhishek Paul

FT201006

As far as precooked foods are concerned, RTE- Ready to Eat is the kind of food that

requires only to be heated and is ready to be served whereas in RTC- Ready to

Cook Food, there are some ingredients which are to be added.

Currently the RTE market in India is valued at INR 128 crores and is expected to go

up to INR 2900 Crores as per the report published by Tata Strategic Management

Group.

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Why RTE is becoming popular?

1. Rise in Dual Income Groups: This is one of the major drivers that has

increased the demand for RTE and RTC food in India as people are spending

more time in office than in households.

2. Availability of Different flavours and Dishes: RTE and RTC offers a variety of

flavours and dishes that cater to the tastes of the Indians in packaged form.

e.g. MTR idli and dosa mix, veg biryani, paneer butter masala. Nestle has

poha, upma etc, Gits Jalebi.

3. Easy to Cook: Ready to Eat foods are easy to cook and hardly take any time

and effort. Hence, this is very popular among households who are busy with

jobs and have less time for cooking.

4. Packaging – Calorie details: With the advent of the internet, consumers have

become very informative and make diet conscious decisions while purchasing

a food product. In RTE, calorie intake information is clearly printed on the

packets so consumers are able to make an informed decision.

5. Convenience in buying: Ready to Eat foods are available at almost all the

retail stores and its accessible in most of the neighbourhoods.

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Challenges faced by RTE and RTC in the market:

1. Low affordability: India being a price sensitive market, RTE is priced

significantly higher compared to what it takes to prepare the food at home or

hiring a domestic help to cook the food.

2. Preference for freshly cooked food: In a typical household, the mother feels

that it is her responsibility to take care of her family by providing them freshly

made home-cooked food.

3. Lack of control in preparing food: In Indian households, the housewife feels

empowered when she is in control of the recipe while cooking the food. RTE

with its pre-defined recipes and additives takes away the control, as it just

needs to be heated up and consumed.

4. Lack of Microwaves in middle-class homes: As we know in Indian household

most of the food is cooked in pressure cooker. On the other hand, Ready to

Eat foods require microwaves for heating. e.g.: a popcorn brand- Act2 has

gained in the market by projecting pressure cooker as ideal device.

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 5. Added preservatives and Carcinogenic: There is a very strong notion that

since the RTE and RTC food come in packets and are pre-processed, they

contain added preservatives which are injurious to health in long run and are

carcinogenic in nature.

How to better market in India?

RTE and RTC foods in India can be better marketed in India by addressing the

challenges as mentioned above:

1. Introduce health & freshness: RTE and RTC brands must make sure that the

food product is marketed as healthy and fresh with clear guidelines on

consumption as people have a preconceived notion of packaged food is not

fresh. A celebrity or a popular sportsperson should endorse the brand. E.g.:

Pillsbury introduced “Chaki Fresh Atta” from grandmother to market its

product as healthy and fresh.

2. Co-creation in food making: RTE and RTC must introduce nutrition blogs,

recipe blogs so that the customer feels that he/she is a part of the cooking

process. This can be achieved by letting the consumer add some ingredients

(like vegetables, spices etc.) to the mix during preparation of the food. It gives

a sense of achievement and gets him/her involved in the cooking process.

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3. Price competitiveness: RTE and RTC foods must be priced lower i.e. the per

plate cost must be lower than what it takes to order-in, hire domestic help to

prepare the food or prepare the food by oneself as India is a price-sensitive

market. Smaller packets in different sizes must also be introduced. E.g.:

Government has introduced 0% excise duty on RTE products and there is

100% tax waiver for first 10 units. This will enable the RTE brands to remain

price competitive and gain traction in the Indian market.

4. Increase the product range: As far as RTE foods are concerned, there are

limited options available catering to the regional tastes like vadas, daal baati,

missal pav, dahi puri and non-vegetarian options like fish and eggs.

5. Create relevance for RTE/RTC products – Cooking apart from a standard

practice in every household is also seen as a hobby by many individuals.

Brands must introduce campaigns and competitions for encouraging creation

of new recipes. This will lead to greater involvement and understanding of the

target market.

6. Strengthen Distribution Channels: Since, RTE and RTC is a FMCG product a

streamlined distribution channel and strengthen its presence in e-commerce

platform like amazon, grofers and big baskets as many consumers prefer to

buy online. Also, it must reach out to Tier-2 cities and rural areas.

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Source:

 https://www.researchgate.net/publication/46181825_Consumer_behavi

ors_towards_ready-to-eat_foods_based_on_food-related_lifestyles

 https://www.wsj.com/articles/its-ok-dont-cook-this-approach-is-just-as-

healthy-11559766063

 Ready –to-eat brands, not yet a palatable concept – Ambi

Parameswaran