TOPIC- HOW RTE CAN BE MARKETED BETTER?

According to a report by market research firm RedSeer Consulting, the ready-to-cook market

in India which stood at Rs 2,100 crore in 2019, is expected to grow at a CAGR of 18% to

reach Rs 4,800 crore by 2024. There has been an increase in the product consumption only

after Covid pandemic. Though the COVID-19 lockdown has deprived many of business, it

has created an opportunity and chances to grab the growth for few industries. However this

lockdown have been made an opportunity to the ready to eat food owing to their demand

because of high shelf life and time saving and attractive availability of products.

**Even though retort processing is the best and most acceptable method for preserving Indian

cuisine and foods in their original state without the use of preservatives, the market

acceptance levels in India can only be described as very poor to average. Today, only

bachelor males, working single women, and working couples purchase RTE meals, and they

only do so to use in emergency situations when they don't want to cook or have unannounced

guests or visits. Even in households where both parents work, families with children never

purchase it. It is well known that when families don't prepare meals at home, they eat out

most of the time.

RTE meals suffer the following major misconceptions in the minds of the average

Indian Consumers which are the challenges that needs to be addressed by the industry:

 The most unexpected thing about RTE meals is that the Indian consumers were not

ready for the product; as a result, the export market has seen the majority of sales.
  Cognitive dissonance:

As consumers' attention to their health increases, they are concerned about the food

they consume. They feel bad about eating junk food and consuming manufactured foo

d.They search for healthier options in packaged and ready-to-eat foods to lessen their

dissonance. If we look at cities, we find more people preferring supermarket packed

salads and fruit bowls. It is quicker and healthier alternative.

There is a rising demand for packaged fresh foods that are ready to eat at many super

markets and retail chains. Due to the internet's and the explosion of data, there is

information overload nowadays, and as a result, people are becoming more and more

aware of the health risks associated with consuming packaged foods and the

preservatives used in them. It is true to state that there is a changing preference since

people are now dissatisfied or resistant to the flavour of packaged food. People have

come to appreciate food that is not packed. Manufacturers of ready-to-eat food in

India are extremely concerned about this issue. They will lose the customer's

mindshare if they don't take initiative and innovate on this issue.

 The housewives were unable to accept a fully prepared product until recently.

 RTE foods have preservatives.

 Compared to fresh food, not nutritional.

 Some of the RTE foods are quite expensive to an average Indian when compared with

restaurant prices.

 Availability is severely constrained at Modern format retailers. ( tier1 and tier2 cities )

The RTE foods can have a tremendous growth opportunity in the near future due to the

following reasons:
  Growing number of nuclear families.

 Increased urbanization.

 Due to time constraints

 There is a growing number of Indian women who are unable to regularly prepare

traditional meals due to a lack of time or knowledge.

 Indians have become more experimental with their food and drink choices as there is

need for variety.

 Significant rise in the number of working women.

 Growing youth population such as bachelors and students who don't have the time or

skills to prepare meals.

 Food as convenience and novelty: The variety of ‘ready to cook’ and ready to eat

food is growing.

 More consumers choose hygienically packed food over loosely offered foods as

Indian cooking techniques have shifted in preference of healthier and more practical

solutions.

Marketing Strategies:

Focusing on product differentiation and consumers' preference for variety are two effective

marketing strategies that businesses can apply. Can introduce new product sizes, flavors, and

packaging.

Elaboration likelihood model:

To maintain the viability of the product, customers' attitudes toward RTE items must be

changed.
 1. Reference Point: Earlier the reference point was home food. To compete with the

emerging brands, the reference point has to be shifted to fast foods. Comparing fast

foods with packaged foods, shows that packaged food is better than fast food.

2. Fun Appeal: Including fun factor like limited editions and in variety of packaging.

3. Educating people about the packaging precautions.

4. Brand Extension: To satisfy the variety seeking behaviour of customers in the RTE

category manufacturers often play with packaging, flavours.

5. Consumer Involvement: It is necessary to boost the consumer engagement in the

product and its consumption through celebrity endorsing the products, as well as by

sponsoring and taking part in cooking competitions, TV shows, social media

challenges, and content. Resulting in and attracting customers who are highly

involved, highly motivated. This will help the brand obtain more market share by

raising its brand awareness.

Diffusion: Rate of penetration of a product in a market.

Influencing factors for Diffusion:

1) Compatibility: Home-cooked meals are highly preferable in the Indian market.

However, as effectively proved by MTR, Haldirams, etc., when you introduce Indian

spices and meals into the RTE category. In addition to flavor, the majority of Indian

households do not have microwaves. As mentioned in the article "Ready-to-eat

brands, not yet a palatable concept," companies like Pillsbury and act-II popcorn have

been successful in encouraging Indian mothers and wives to make cakes and popcorn

in pressure cookers. Today, the RTE foods do not even require microwave, shows that

RTE foods are higher compatible.

 2) Observability: For ready to eat products observability is a key factor and this is so

even for some categories of ready to cook products which require only adding hot

water or reheating, could be made available in office pantries. This would increase

customer awareness. Advertising through social media and Televisions works better.

3) Relative advantage: Ready to eat products have a relative advantage when it comes to

cooking. They are convenient and quick options for people who lack time.

4) Trialability: Manufacturers can facilitate diffusion by introducing smaller packets to

increase ‘trialability’. Also make products available in semi- urban areas, This would

increase sales.

5) Simplicity: Ready to eat and ready to cook products win the game when it comes to

simplicity as these require little or no preparation time and effort.

**The RTE will have a better future in the Indian market if the manufacturers focus on the

changing attitude of the consumers and their needs in taste and extension into various flavors

and compatibility.