Consumer Behaviour

Individual Assignment - 2:

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

Submitted By:

Arun Mehndiratta

FT201106

RTE food market has really never taken off in India. Not just in India, even in evolved

markets like America, companies don’t dare to become chefs themselves. There

also they follow a methodology called ‘co-creation’.

RTE stands for ‘Ready-to-eat’ food and the producer companies of these products

are in trouble because the growth is really not there. Even big companies like HUL,

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ITCM MTR and US-based Heinz are not clear about their future plans on launching

or even continuing RTE segment.

There are some key problems which are existing between the RTE food products

and success in India:

1. Nutrition Value:

In India, the belief that anything coming out of fancy packets is unhealthy is

very prominent. More than that, people doubt the quality maintenance of the

product during the transportation. Because these products should always be

refrigerated but during transportation and distribution might not be maintained.

Hence, the quality of the product comes under question and people hesitate

to buy the product. Especially, in the rural part of the country, eating packaged

food is considered to be extremely unhealthy.

2. Indian Woman:

I really don’t want to make a biased statement here but it is very difficult to

take the position of chef in the Indian homes. Because of the love and care,

women have for their family they always want to give the family freshly

cooked food. And if the companies try to become the chef by their self, then

women just discard the product.

3. Target Segment:

Another problem which is existing in the targeting of the product where the

ready to eat food is to be heated up in the microwave. But only a limited

percentage of the population own a microwave. On the other hand, the people

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 who can afford microwave usually have a cook to make the food. So, the

whole targeting of the product type is not really focused.

Now, the question arises that how can the RTE product be marketed better to

improve the overall market for Ready-To-Eat food:

1. Enhance ‘co-creation’ factor:

Everyone understands that in this modern lifestyle, both men and women are

working and no one really gets the time to cook. But still, there is the desire to

control the final end product and serve the family fresh food. This can be done

by making the customer involved in the serving process. It can be as simple

as mixing the ingredient packets with the product or adding fresh veggies or

adding an egg. By doing this we can provide the customer, the freedom to

customize the final serving according to them.

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2. Add the fun factor in the making process:

RTC product companies can make people try and cook as per their wish by

giving different ideas of consuming the product. By providing different sauces,

masalas and recipes to make use these ingredients. People will get involved

in the cooking process and will become fun to try different flavours.

3. Move to smaller packet:

As the majority of Indian customers are price sensitive and do a lot of

comparison before purchasing. Companies should launch smaller packs to

understand the pulse of customers and accordingly make changes in the

product if required.

3. Promote the health and nutrition factor innovatively in the advertisement:

As Indian customers doubt the nutrition of the packaged food, RTE food

products should promote health and nutrition extremely well in their

advertisements. May be involving a sportsperson or an extremely fit actor will

work.

4. Focus on ‘Bharat’:

According to many companies annual reports, they have seen better results of

packaged food in tier 2 cities and rural parts of the country. Even the

eCommerce platforms confirm that the demand is constantly increasing from

these parts of the country. In other words, instead of focusing too much on

urban markets where they haven’t got much success till now. Companies

should also consider the B and C tier cities of the country.

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Reference :

https://www.livemint.com/Companies/vsR1wpFJsCQx2QXqLlz1EP/Readytoeat-meals-fail-

to-taste-success.html

https://economictimes.indiatimes.com/industry/cons-products/food/packaged-breakfast-

and-ready-to-eat-products-find-takers-in-bharat/articleshow/69224454.cms?from=mdr

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