A Dissertation Report

On

“CONSUMER BUYING BEHAVIOUR TOWARDS

ITC READY-TO-EAT FOOD PRODUCTS”

Submitted to

Jagannath International Management School

As Partial Fulfillment of the Requirements for the

Post Graduate Diploma in Management

Under the Guidance of:

Mrs. Jyoti kukreja

Submitted by:
Sumit kohli

Roll No. – 52
 Declaration by the Student

I hereby declare that this Dissertation report titled “Consumer Buying Behavior towards
ITC Ready-To-Eat Food Products” has been submitted by me for the award of the degree
of Post Graduate Diploma in Management, as partial fulfillment of the requirements for the
Post Graduate Diploma in Management.

This is the result of original work carried out by me. This report has not been submitted
anywhere else for award of any other degree/diploma.

( )
Sumit kohli
Date:
 Certificate by the Guide

This is to certify that Sumit Kohli has carried out this Dissertation titled “Consumer Buying
Behavior towards ITC Ready-To-Eat Food Products”, as partial fulfillment of the
requirements for PGDM, under my guidance. While working on this Dissertation, the student
consulted me many times and I am satisfied with the manner in which he made use of my
guidance.

It is also certified that the report presented embodies the original work of the student.

Signature:
(Mrs. Jyoti Kukreja)

Date:
 ACKNOWLEDGEMENT

The making of any report calls for contribution and cooperation from many others,
besides the individual alone. I duly acknowledge my sincere gratitude to each one of them.

Above all I would like to thank the divine intervention that backed me at all the time and provided me enough
motivation to accomplish this voyage. Every mature individual in professional life is keenly aware
of his/her intellectual development. Ordinarily, this feeling is expressed in customary gesture
of acknowledgement. As a student of JAGANNATH INTERNATIONAL
MANAGEMENT SCHOOL, it seems as a right to acknowledge my gratitude with sense of
veneration to various people who helped me during the course of the project.

I would like to extend my sincere gratitude and appreciation to my project guide

for extending valuable guidance andencouragement from time to time,
w i t h o u t w h i c h i t w o u l d n o t h a v e b e e n possible to undertake and complete this
project. The Project was an enriching experience and taught me various critical
factors. Additionally, this project helped me in understanding that how actual research is
conducted and the various challenges that researches face while conducting a
research.

However, I accept the sole responsibility for any possible error of omission and would be
extremely grateful to the readers of this project report if they bring such mistakes to my
notice.

Sumit kohli

TABLE OF CONTENTS
PRELIMINARY PAGE No.
Declaration by the Student
Declaration by the Guide
Acknowledgement
Executives Summary

Chapter 1: Introduction
1. Background of the Study……………………………………………. 1
2. Need/Rationale of the Study……………………………………….... 2
3. Objectives……………………………………………………………. 3
4. Section details………………………………………………………... 3

Chapter 2: Literature Review ………………………………… 4-8

Chapter 3: Methodology
1. Research design -- Research Techniques; Research Tools………….. 9
2. Source & Type of data – Qualitative; Quantitative…………………. 9
3. Constraints of the Study…………………………………………….. 9

Chapter 4: Analysis and Discussion……………………………………10-21

Chapter 5: Summary and Conclusion……………………………… 22-24

References ……………………………………………………………….. 25

Annexure ………………………………………………………………….. 26-28

EXECUTIVE SUMMARY
The purpose of this study is to explore and study the market for Ready-to-eat products. To
find out what are the influential factors determine the market for such products. People
attitude, income level, life style changes, product availability are taken into consideration to
arrive at the conclusion. The main aim for this study is to explore market potential for ready-
to-eat products and the major forces determining such segment to grow and the future
potential of the same. Market research will give us insights about the ongoing potential of the
segment and the people preference to such products. There is a tremendous change in the
consumption habits of individuals in the last ten years in our country. The choices before
them are plenty and proliferation of micro entrepreneurs will also be influencing factors for
this product segment. Other than convenience there are many hidden forces and upcoming
forces determine this market. Yet there is no specific boundary for this market since this
segment has to be growing and need to mature. Rather than availability of western eatables
products, our own products are come into packaged items for sales in this market. This study
will throw some light on market boundary and its potential of ready-to-eat products now the
time is to provide better food processing and its marketing infrastructure for Indian industries
to serve good quality and safest processed food like ready to eat food.

The current project is aimed at gaining a deeper insight of consumer buying behavior towards
ITC Ready-to-eat food products and all the issues and problems faced by the company for
branding and popularizing its products. The project is also concerned with to generate and
secure consumer awareness and to find out the issues related to the buying behavior of the
consumer.

Along with it, I consider this project work as the best medium to communicate and share my
learning experiences & constraints faced during this unforgettable journey. The project
included as a part of PGDM program and the project is done in March 2018.
 Chapter- 1

INTRODUCTION

1.1 Background of the study

There is nobody in the world that is left out of the class of consumers. The consumer hood
continues till one’s last breath in the world. The consumer purchases a variety of goods and
services to satisfy his wants and he is always influenced in his purchasing activities by some
considerations which lead him to select a particular commodity or a particular retail store in
preference to others. So, consumer buying is more complex. Consumer purchases are likely
to be influenced by physiological, psychological and sociological factors. The commodities
and services are brought by the consumer to satisfy his basic needs, for comfort, pleasure,
recreation and happiness. Every individual has physiological need such as hunger, shelter,
thirst, etc., which have to be satisfied for survival. The psychological factors like status
prestige and social factors like friends, neighbours, job and relatives influence their
purchasing activities.
People bear certain beliefs and attitudes towards certain types of goods, brands of
commodities and retail outlets based on their previous experience. When there is a need, they
are able to discover some new commodities capable of satisfying their needs. Before the
commodities and brands are selected, these commodities must compete successfully against
alternatives in the market. The selection of a particular commodity becomes important for
consumer since there are wide varieties of consumer goods in the market. Again selection of
a particular commodity depends on income of the consumer and necessity of the product to
the individual. Before the selection of the commodity purchased, an individual requires
information regarding the various sources of supply of the commodity, its brands, relative
merits and demerits, uses and value of their characteristic features and services offered. The
common sources through which individual gathers information are from advertising media
(television, radio and news papers), friends, retailers in the locality, displays in shops and
food labels.
1.2 Need of the study
India is one of the largest food producers of the world with the organised sector accounting
for food output worth US $34827 million; only a small percentage of its farm produce is
processed into value-added products. For instance, even though the country is the second
largest producer of fruits and vegetables, hardly two per cent of the production is processed.
This underlines the enormous scope for investing in the processed food sector in the areas of
infrastructure, packaging and machinery. India, in fact, needs US $28 billion of investment to
raise its food processing levels by 8-10 per cent. Over the past five decades, India has taken
giant steps in producing food grains, milk, fruits and vegetables. The production of raw food
materials is estimated to worth over Rs.60, 000 crore. After primary, secondary and tertiary
processing, the total size of the industry is estimated to be as high as Rs. 1, 10,000 crore. This
cost overrun reflects the opportunities that food processing industry offers to the economy as
a whole and entrepreneurs in individual.
Big opportunities lie in up gradation from commodities to packaged and branded products
and convenient foods, which offer value for money, products focused towards children and
young adults and products catering to those who lead a fast modern day life. Realizing the
potential and in order to provide further boost, the government has exempted from excise
duty for condensed milk, ice cream, preparations of meat, fish and poultry, pectin, pasta and
yeast.
Unlike olden days where man used to have his food lavishly and slowly, the present trend
changed the habits of foods, which are simple and easy to digest. Hence, the existence of
these foods fulfilled all the needs of modern human being. Canned foods, convenience foods,
fast foods, frozen foods, instant products, dried foods, preserved foods, etc. all comes under
ready-to-eat foods. The food habits in India have changed due to the western influence and
the usage of these foods is also on the rise.
In India, majority of food consumption is still at home. Nevertheless, out of home food
consumption is increasing due to increase in urbanization, breaking up of the traditional joint
family system, desire for quality, time which translates into an increased need for
convenience, increasing number of working women, rise in per capita income, changing
lifestyles and increasing level of affluence in the middle income group had brought about
changes in food habits.
1.3 Objectives of the study

The main objective of the project can be listed as follows:

1) To study the market penetration of ready-to-eat products

2) To study the consumer perception towards ready-to-eat products
3) To identify the buying pattern of Ready-to-eat packs
4) To identify the factors influencing buyer behavior of RTE packs
5) To identify the key determinants of ready-to-eat/cook products
6) To study the growing demand of these products

1.4 Sectional details

The whole of the dissertation report is divided into four chapters.

Chapter 1: The first chapter consists of the Introduction portion in which its background,

Need, objectives and section details are mentioned.

Chapter 2: The second chapter consists of Literature Review in which the theoretical part of

the study is explained.

Chapter 3: Deals with Methodology followed with the Study, Description of Research Tools
and Techniques, Method for the study and also Constraints of the Study.

Chapter 4: The third chapter consists of the analysis part and discussion part.

Chapter 5: The fourth chapter presents the summary and the conclusion of the research work

with some recommendations.

 Chapter -2

LITERATURE REVIEW

The ready-to-eat (RTE) market in India, currently estimated at Rs. 128 crore (2006) is
expected to expand to reach Rs. 2,900 crore by 2015, according to an analysis done by Tata
Strategic Management Group (TSMG). In its analysis, TSMG said that the 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.
The report also highlights that the RTE market in India has remained under-penetrated owing
to factors such as consumers’ penchant for freshness, low affordability and the Indian
housewife’s preference for home-cooked food. According to data in the reports, packaged
foods in India have grown at about seven per cent a year between 2000 and 2005, with RTE
foods being the fastest-growing, at a CAGR of 73 per cent. The Indian RTE foods market,
canned/preserved segment is more popular, contributing about 90 per cent of the market and
growing at a Compound Annual Growth Rate (CAGR) of 63 per cent between 2001 and 2006
while the chilled and dried ready meal segments are non-existent. There is a huge untapped
market opportunity arising due to rapid demographic shifts in income, urbanization, and
proportion of urban working women in India.
The industry needs to concentrate on broadening the market and increasing penetration
amongst Indian consumers.” The analysis also pointed out that industry players would have
to significantly improve their price competitiveness with respect to other options such as
domestic help, eating out and ordering in, available to the Indian consumer. Besides price
consideration, the product range offered by industry players will have to be strengthened. At
the moment, the regional cuisine and non-vegetarian cuisine markets are relatively under-
serviced with concentration on the vegetarian North Indian meals. The Indian consumer
market, which is primarily dominated by young generation, is becoming increasingly
sophisticated and brand conscious.
A typical upper middle class young consumer is beginning to look beyond the utility aspect
of a product to seek intangibles like brand and lifestyle statement associated with the product.
This modern consumer wants his purchases to reflect his lifestyle or at least the one he
aspires for. As a result of this brand consciousness, the food and beverage segment of the
FMCG sector is already witnessing a significant shift in demand from loose to branded
products. The Indian affluent class has always had a penchant for premium branded goods
and this fetish will continue. A recent luxury brands survey conducted by The Nielsen
Company, a global information and media research company, has ranked India third after
Greece and Hong Kong in the list of most brand conscious countries in the world. Over 35%
of Indian respondents said they spend money on luxury brands.
India provides an attractive opportunity for both Indian and international players with a mix
of demand and supply side changes. If consumer demands of affordability, availability and
enhancing acceptability are met, the RTE foods market has the potential market size of 2,900
crore by 2015 from its existing Rs. 128 crore.”
There is a marked difference in consumption between urban and rural consumers. Urban
consumers represent 70% of the vitamin and dietary supplement market, versus 30%
attributed to rural consumers. Indian consumers are spending more on nutritional
supplements to combat the effects of stress. Protein supplements and items relating to muscle
building are popular, due to the increasing fitness and bodybuilding activity among the urban
elite. India consumes the largest quantity of tea in the world. Tea makes up 94% of out-of-
home, per capita, hot drink consumption, and almost 70% of in-home consumption. Sales of
coffee, tea and cocoa in India increased by 14% from 1995 to 2007.The availability of
imported tea on retail shelves has increased and there has been growth in sales of tea bag and
flavoured teas.
However, young, urban adults are increasingly attracted to adventure sports, and this has led
to growth in the popularity of river rafting, rock climbing and mountaineering clubs. This
trend may lead to more market interest in reasonably priced sports nutrition products. Sport
drinks comprise a niche category in India, with consumption largely centered in urban areas.
High prices, however, discourage the average consumer from purchasing them. Energy-
boosting drinks that are glucose-based (such as Glucon-D) are more traditionally used in
India for rehydration.
Binkley(2006)in his research titled “ The effect of demographic, economic and nutrition
factors on frequency of food away from home” has used a model explaining visits to table
service and Ready-to-eat restaurants that are estimated with nutrition variables added to
standard demographic measures ,wherein nutrition factors have less impact on table service.
However the frequency of consumers very conscious of nutrition factors is significantly very
less to table service and Ready-to-eat restaurants.

Jackson and McDaniel(1985)in their research, titled “food shopping and preparation:
psychographic differences of working wives and housewives” explores various
psychographic characteristics exhibited by working wives as opposed to housewives in food
shopping and food preparation by comparing responses of 246 working wives and 181
housewives to several food shopping and preparation related psychographic statements.
Results have revealed that working wives have a greater dislike for food shopping and
cooking and also exhibited a tendency to be less concerned with the impact of their food
shopping and preparation activities on other family members vis a vis non working wives.

Generally speaking consumer awareness of fortified/functional products is low. A recent

survey shows 80% of Indians agree that health considerations significantly influence their
choice of food and drinks. Approximately 48% of these respondents feel that functional food
claims play a significant role in their purchasing decisions for food and beverage products.

As a result changes in tastes and lifestyles backed by urban living will significantly impact
food demand and consumption patterns the young Indian consumer has passion for visiting
Ready-to-eat outlets for fun and change but they feel that homemade food is better than
convenience Ready-to-eat .Their findings have revealed that consumer acceptability for
Ready-to-eat in the future would be decided only by the quality of food and customer service.

Food is a means of life but it has become meaningful investment for business. There is huge
gap in food and health related research in Indian context despite obesity almost being an
epidemic in metropolitan cities like Delhi, Mumbai, Bangalore, Kolkata and gradually rising
in other urban areas too. It is an attempt of mine to analyze in Indian context the determinants
and implications of consumers food choice particularly towards Ready-to-eat
 Chapter -3

RESEARCH METHODOLOGY

3.1 Research design

The nature of this report is Exploratory. Exploratory research often relies on secondary
research such as reviewing available literature and/or data, or qualitative approaches such as
informal discussions with consumers, employees, management or competitors, and more
formal approaches through in-depth interviews, focus groups, projective methods, case
studies or pilot studies. The Internet allows for research methods that are more interactive in
nature.

3.2 Research Instrument

The research instrument used in the project was questionnaire to analyze the secondary data
collected.

3.3 Sources of data

Secondary data

Secondary data was collected from different websites. This secondary data formed
the conceptual background for the project.

Type of data is both Qualitative as well as Quantitative as the analysis is done through a
questionnaire which has been taken from the website itself.

3.4 Research constraints

 This study is exploratory and has some limitations that however does not liquidate the
purpose of study
 The major limitation of the study is that it is based on secondary data.
 The data available may differ from the present scenario.
 Even the interpretation done may vary from person to person.
  Another limitation was time factor.

Chapter -4
ANALYSIS AND DISCUSSION

4.1 Organizational Profile

ITC is one of India's foremost private sector companies with a market capitalization of US $
45 billion and a turnover of US $ 7 billion. ITC is rated among the World's Best Big
Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine
and among India's Most Valuable Companies by Business Today. ITC ranks among India's
'10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published
by the Economic Times. ITC also ranks among Asia's 50 best performing companies
compiled by Business Week.
Multiple Drivers of Growth

ITC’s aspiration to create enduring value for the nation and its stakeholders is manifest in its
robust portfolio of traditional and Greenfield businesses encompassing Fast Moving
Consumer Goods (FMCG), Hotels, Paperboards & Specialty Papers, Packaging, Agri-
Business, and Information Technology. This diversified presence in the businesses of
tomorrow is powered by a strategy to pursue multiple drivers of growth based on its proven
competencies, enterprise strengths and strong synergies between its businesses.

The competitiveness of ITC’s diverse businesses rest on the strong foundations of

institutional strengths derived from its deep consumer insights, cutting-edge Research &
Development, differentiated product development capacity, brand-building capability,
world-class manufacturing infrastructure, extensive rural linkages, efficient trade
marketing and distribution network and dedicated human resources. ITC’s ability to
leverage internal synergies residing across its diverse businesses lends a unique source of
competitive advantage to its products and services.
Within a relatively short span of time, ITC has established vital brands like Aashirvaad,
Sunfeast, Dark Fantasy, Delishus, Bingo!, Yippee!, Candyman, mint-o, Kitchens of
India in the Branded Foods space; Essenza Di Wills, Fiama Di Wills, Vivel, Vivel Cell
Renew, Engage and Superia in the Personal Care products segment; Classmate and
Paperkraft in Education & Stationery products; Wills Lifestyle and John Players in the
Lifestyle Apparel business; Mangaldeep in Agarbattis and Aim in the Safety Matches
segment. This growth has been rated by a Nielsen Report to be the fastest among the
consumer goods companies operating in India.

4.2 Creating Enduring Value

Today ITC is the country's leading FMCG marketer, the clear market leader in the Indian
Paperboard and Packaging industry, a globally acknowledged pioneer in farmer
empowerment through its wide-reaching Agri Business, the second largest Hotel Chain in
India and a trailblazer in 'green hoteliering'. ITC InfoTech, a wholly-owned subsidiary, is one
of India's fast-growing IT companies in the mid-tier segment. This portfolio of rapidly
growing businesses considerably enhances ITC's capacity to generate growing value for the
Indian economy.

ITC's Agri-Business is one of India's largest exporters of agricultural products. The ITC
group's contribution to foreign exchange earnings over the last ten years amounted to nearly
US$ 5.4 billion, of which agri exports constituted 56%. The Company's 'e-Choupal' initiative
has enabled Indian agriculture significantly enhance its competitiveness by empowering
Indian farmers through the power of the Internet. This transformational strategy has already
become the subject matter of a case study at Harvard Business School apart from receiving
widespread global acclaim.

As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a
commitment beyond the market". In his own words: "ITC believes that its aspiration to
create enduring value for the nation provides the motive force to sustain growing
shareholder value. ITC practices this philosophy by not only driving each of its businesses
towards international competitiveness but by also consciously contributing to enhancing the
competitiveness of the larger value chain of which it is a part." ITC group directly employs
more than 31,000 people and the Company's Businesses and their value-chains generate over
5 million sustainable livelihoods many of whom live at the margin in rural India.

4.3 Global Exemplar in Sustainability

Acknowledged as a global exemplar in sustainability, ITC is the only enterprise in the

world, of comparable dimensions to be carbon-positive, water-positive, and solid waste
recycling positive. A testimony to its commitment to a low carbon growth path - over 41 %
of the total energy requirements of ITC is met from renewable sources. All ITC's premium
luxury hotels are LEED (Leadership in Energy and Environmental Design) Platinum certified
making it the "greenest luxury hotel chain" in the world. ITC's Paperboards and Paper
business is an icon of environmental stewardship.

ITC's production facilities and hotels have won numerous national and international awards
for quality, productivity, safety and environment management systems. ITC was the first
company in India to voluntarily seek a corporate governance rating.

The Company continuously endeavours to enhance its wealth generating capabilities in a

globalising environment to consistently reward more than 4,62,000 shareholders, fulfill the
aspirations of its stakeholders and meet societal expectations.

Core Values

ITC's Core Values are aimed at developing a customer-focused, high-performance

organisation which creates value for all its stakeholders:

Trusteeship

As professional managers, we are conscious that ITC has been given to us in "trust" by all our
stakeholders. We will actualise stakeholder value and interest on a long term sustainable
basis.

Customer Focus

We are always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.
Respect for People

We are result oriented, setting high performance standards for ourselves as individuals and
teams.

We will simultaneously respect and value people and uphold humanness and human dignity.

We acknowledge that every individual brings different perspectives and capabilities to the
team and that a strong team is founded on a variety of perspectives.

We want individuals to dream, value differences, create and experiment in pursuit of

opportunities and achieve leadership through teamwork.

Excellence

We do what is right, do it well and win. We will strive for excellence in whatever we do.

Innovation

We will constantly pursue newer and better processes, products, services and management
practices.

Nation Orientation

We are aware of our responsibility to generate economic value for the Nation. In pursuit of
our goals, we will make no compromise in complying with applicable laws and regulations at
all levels.

ITC's Branded Packaged Foods business is one of the fastest growing foods businesses in
India, driven by the market standing and consumer franchise of its seven popular brands -
Aashirvaad, Sunfeast, Bingo!, Kitchens of India, mint-o, Candyman and Yippee! The Foods
business is today represented in 4 categories in the market - Staples, Snack Foods, Ready To
Eat Foods and Confectionery.

ITC's uncompromising commitment to the health and safety of its consumers ensures
adherence to the highest levels of quality, safety and hygiene standards in manufacturing
processes and in the supply chain. All ITC-owned manufacturing units are Hazard Analysis
and Critical Control Point (HACCP) certified. The quality performance of all manufacturing
units is monitored continuously online. Going beyond process control, ITC ensures that
quality standards are scrupulously adhered to while choosing ingredients that go into the
preparation of its food products. (Know more about ITC's Food Policy)

ITC's Foods brands delight millions of households with a wide range of differentiated, value-
added products developed by leveraging ITC's in-house R&D capabilities, relevant
consumer insights, a deep understanding of the Indian palate gained from its Hotels business,
its agri-sourcing & packaging strengths, exciting, innovative communication and an
unmatched distribution network.

The business continues to invest in every aspect of manufacturing, distribution and

marketing to ensure that it can leverage emerging opportunities and fulfil its aspiration of
being the most trusted provider of Branded Packaged Foods in the country. ITC's Foods
business also exports its products to the key geographies of North America, Africa, Middle
East and Australia.

4.4 ITC Food Products Policy

It is ITC's policy that its food products should provide nutritious, tasty, hygienic and
convenient options to the consuming public.

ITC will offer food products across multiple categories, price points, delivery formats and
segments as dictated by the needs of the consumer.

ITC's portfolio of food products will be continuously improved and modified to -

 Offer new products that meet the aspiration of the changing consumer,
 Offer food products with affordable and appropriate nutrition,
 Offer food products with micronutrient fortification,
 Drive reduction of sodium, sugar and fat in products,
 Offer trans-fat free products,
 Offer functional food products with focus on india specific metabolic disorders,
 Follow a strict code for making product functional claims,
  Follow the highest standards in nutrition labeling and reporting,
 Follow responsible marketing and consumer communications practices,
 Create and sustain r&dâ focus in development of new products and processes,
 Follow the highest standards of hygiene and manufacturing practices in all delivery
formats,
 Collaborate with experts and institutions and
 Ensure widespread accessibility to healthy products through appropriate pricing and
wide distribution.

Policy Framework and Strategies

ITC's Food products will adhere to all legal and regulatory requirements as prescribed from
time to time.

 To offer new products that meet the aspiration of the changing consumer
As the aspiration of the consumer changes, new products will be developed and
launched to meet the taste, nutrition and convenience expectations of future
consumers.

 To offer products with affordable and appropriate nutrition

Recommendations of the National Institute of Nutrition (NIN), India, will be referred

to, to assess nutritional appropriateness of ITC's food products. Efforts will be made
to offer products with appropriate nutrient density for mass consumption, including
catering to the needs of those sections of the society who are economically
disadvantaged.

 To offer products with micro-nutrient fortification.

ITC's food products will be suitably fortified with micro-nutrients (iron, calcium,
zinc, iodine, folic acid, other vitamins and minerals) wherever feasible. ITC's R&D
will continue to carry out suitable research programmers to make fortified nutrients
more biologically available and functional.
 To drive reduction of sodium, sugar and fat in products.

ITC's R&D will endeavor to find solutions aimed at reducing fat, sugar and sodium
("FSS") in food products, without impacting the taste profile of the product. In
addition to scientific solutions, ITC will also adopt the Adaptation Methodology to
reduce these ingredients in a gradual manner. Guidelines will be made and tangible
targets will be set for the new product development teams to reduce the above
ingredients in the new products. ITC will endeavor to introduce such Reduced FSS
products in the market by year 2013.

 To offer Trans Fat Free Products

To disclose added trans-fats, if any, in all food products. To work towards not using
any hydrogenated oil in all food products by the year 2015.

 To offer functional food products with focus on India-specific metabolic

disorders
ITC, with well-researched functional ingredients, will endeavor to make functional
food products suitable for consumption by Indians who suffer from metabolic
disorders. ITC will release such functional products to the consumer, only after fully
understanding the mechanism of action of the functional ingredients at the molecular
level. Integrative biology approaches will be employed to study these ingredients'
efficacy.

 To follow a strict code for making product functional claim.

ITC will conduct clinical trials in India by using Indian subjects to study the efficacy
of its functional foods. Experts' opinion will be taken to design the clinical studies and
suitable statistical methods will be employed to interpret the clinical study data.
Indian Council of Medical Research (ICMR) guidelines will be referred to and
followed in all clinical studies. Functional claims will be made only after statistical
significance is observed.
 To follow the highest standards in nutrition labeling and reporting.

ITC's packaged food products' labeling will be comprehensive with good clarity on
the contents of all macro and micro-nutrients. The nutrient content will be compared
with the NIN recommended Daily Value (DV) and the percentage in the product will
be reported.

 To follow responsible marketing and consumer communication practices

Apart from complying with all local laws and regulations, advertisements of ITC's
food products will also adhere to the ASCI Code. All product communication to the
consumer will appropriately represent the products. Internal audits will be done on
marketing practices and, if needed, corrective action will be taken. Efforts will be
made to promote nutritious foods and educate the rural consumer in food hygiene.

 To create and sustain R&D focus in development of new products and processes.

ITC's R&D organization is structured to research exploratory subjects and applied

research subjects. ITC's R&D infrastructure is of international standards, and has been
certified with ISO 14001-2004 for EHS and ISO 17025 NABL for analytical
processes. There are more than 100 scientists conducting R&D on several food related
platforms. ITC will continuously strive to contemporize its R&D infrastructure to
meet changing nutrition needs.

 To follow the highest standards of hygiene and manufacturing practices in all

delivery format.

ITC Hotels R&D endeavors to practice GHP & GMP (Good Hygiene Practices &
Good Manufacturing Practices) along with ISO 22000 food safety management
system implementation with PAS 220 relevant applications. ITC hotels will
stringently follow all applicable regulatory requirements, with particular focus on risk
minimization and elimination.
 To collaborate with experts and institutions

ITC believes in collaborating with outside experts to upgrade the knowledge of its
personnel with a view to guiding the food business in developing products with
balanced nutrition and functional ingredients. ITC will continue to collaborate with
national and international institutions for scientific research and specific projects. ITC
believes in using an Open Innovation policy in developing its R&D for food products.

 To ensure widespread accessibility of healthy products through pricing and

distribution:
ITC will ensure the widest accessibility to its healthy food products through ensuring
national geographic distribution across both urban and rural centre, using its FMCG
distribution infrastructure and its e-choupal related rural distribution reach. ITC will
also ensure accessibility across demographics through adopting a portfolio approach
across all relevant price segments
Analysis of consumer behavior on ready to eat products through the
reviews on website

 Major key determinants forcing the consumers to buy the product

Many respondents prefer to buy ready to eat packets because of the long working hours.
Consumers didn’t find time to prepare traditional foods in home and find it difficult to
organize spices to prepare that masala. From the study it is arrived that complete life style
changes are the major factors in going for these foods. the taste is not a influencing
factors in determining these products for the consumers.

Seeing huge opportunities in the changing preferences of the women, marketers are all
out to woo this growing segment. On top of the list for the indulgent homemaker are
branded ready-to-eat food, frozen food and ready-to-fry non-veg products. Other
convenience foods like packet pasta, instant noodles and snack mixes are also finding
huge traction among this group.

 Study of the growing demand of these products

Ready to eat products are growing demand for these segment foods. In the vegetarian
food category the products falls may are Alloo Matar, Palak paneer, Sarso Ka Saag,
Chana Masala, Kadi Pakora, Cheese Tomato, Dal Makhani, Rajma Masala and some of
the Non-veg categories are Chicken Curry, Butter Chicken, Kadahi Chicken, Mughalai
Chicken, Mutton Masala, Mutton Korma, Kadahi Mutton, Mutton Biryani.

There are many factors influencing this sector and as of today there is not particular
prediction which talks about growing demand for these products. Now days buyers
kitchen is dumped with many packed foods. Before 1980’s there is no choices in these
segment but today there is a major availability of products which consumer can choose
and ready to buy the products. More than regional players there are notable MNC’s
targeting India to sell their processed foods.
Homemakers have added to their list of purchases new categories like hand sanitizers,
facial wipes, probiotic drinks and fabric softners, which are considered premium when
 compared saturated segments like toilet soaps. The true business potential of this segment
lies in the ability of marketers to create relevance for their products -- be it cooking aids
that ease the process of preparation or providing ready solutions that save her time.
Targeting this segment needs both, a deep understanding of their need and high degree of
creativity in product design.

 Analysis regarding the major sources of attraction for these products

Good packaging plays a important role in deciding this product. There are other factors
taken into consideration are aroma & taste, easy to cook, healthy, information on calories,
rare ingredients, convenience in buying, quick turnaround time in cooking. In the
nutshell, we can’t freeze one of the major factors is the source of attraction for these
FMCG products, because all of these other factors contributing to the growth of these
products or the major sources of attraction for these products.
Consumers prefer the packaged food because they are healthy over the cover and the
ingredients and calories level are printed properly and so they can make decision based on
these factors.
Convenience in buying are also the another factor. Some of the ingredients are not
available nowadays and people are finding it difficult to access it, so foods combined with
rare ingredients are one of the major factors in deciding these products. Most of the
consumers are knowledgeable and used to buy these products only after carefully reading
the ingredients in proper way. The younger couples are convenient in buying these
products and they are all having secondary information about products that they eat so
they will make decision based on these ingredients printed over the label.
The aroma will be last in many of the packages so that is not the good factor in actually
going for buying this product. Rare ingredients given in the package and some of the
dishes can be prepared only by catering specialist will also be a major factor in buying
some of the products.
On the whole, it’s difficult to arrive at a conclusion at a particular factor but all the
possible influential factor contributing success to these category products are mentioned
in the study above.
Discussion

This study shows that there is a greater demand for ready-to-eat food segments and the
major attraction for these products are convenience, availability and less time
consumption to cook.
Due to life style changes and long working hour’s people are choosing these products and
ready to go with it. The availability of raw material to prepare certain spices is one of the
fewer factors in deciding these products. Availability at door step and convenience
buying are the major sources of influence in buying these products. However, there is no
specific result that how much demand will be there for these products, because we have
not included tier-II & tier III cities for this study. These products tend to mushroom
because of influence by regional and MNC players. Most of the well known brand wants
to sell their products by changing our lifestyle and finding pitfalls in the existing eating
habits.
 SUMMARY AND CONCLUSION

SUMMARY

India is the world’s second largest producer of food next to China and has the potential of
being biggest industry with food and agricultural sector. Food accounts for the largest share
of consumer spending. In India, majority of food consumption is still at home. Nevertheless,
out of home food consumption is increasing due to increase in urbanization, breaking up of
the traditional joint family system, desire for quality, time which translates into an increased
need for convenience, increasing number of working women, rise in per capita income,
changing lifestyles and increasing level of affluence in the middle income group had brought
about changes in food habits.

“Ready-to-eat food is food offered or exposed for sale without additional cooking or
preparation, which is packed on the premises where sold and is ready for consumption”.
Unlike olden days where man used to have his food lavishly and slowly, the present trend
changed the habits of foods, which are simple and easy to digest. Hence, the existence of
these foods fulfilled all the needs of modern human being. Canned foods, convenience foods,
fast foods, frozen foods, dried foods, preserved foods, etc. all comes under ready-to-eat
foods.

Ready-to-eat foods are widely used in catering industries as well as at homes. There are
varieties of ready-to-eat foods available in the market to choose from. Now-a-days they have
become a part of everyday life. As double income nuclear families have become the norm in
urban India, everyone who is in the food business has been eyeing on the ready-to-eat food
sector with considerable hunger. Several firms are engaged in production and marketing of
ready-to-eat food products.
Hence, the consumers have greater option to choose from. In this context, a study on
consumer behaviour was seemed to be important to understand the buying behaviour and
preferences of different consumers. Understanding the consumer behaviour would help the
firms in formulating strategies to cater to the needs of the consumer and thereby increase
their market share. Consumer’s taste and preference were found to change rapidly especially
in a dynamic environment. Keeping in view the importance of consumer behaviour and
consumption pattern, an attempt was made to study the buying behaviour of consumers
towards ready-to-eat food products, brand preference of the consumers, factors influencing
brand preference and alternative purchase plans of the consumers.

Due to Change in lifestyle and FII investment there is a drastic change in Indian culture and
food habits. Most of the family members don’t have time to cook the food in traditional way
and most of the families are living in separate environment. Despite modern cooking devices,
consumers still need ready-to-eat/cook food because it consumes very less time. The change
in lifestyle and dual income consumers prefer these types of products. The products may vary
from noodles, pasta, masala packages, stuffed paratha, etc. and many more. Other than ITC
other national player like Nestle, PepsiCo, Haldirams, Cavinkare, there are many regional
players who is making foray into ready-to-eat segment. Rapid urbanization is also one of the
reasons for people to buy such products. Nowadays people are also health conscious.
Findings

 The results have shown that ready-to-eat market segment is defined by high growth in
middle class section
 Peoples and their life style changes due to job factors.
 Some sections of the people agreed, availability of product choices is also deciding
them to buy such products impulsively.
 Even some small section of the people agreed that most of the youngster don’t want to
spend much time.

CONCLUSION

This study shows that there is a greater demand for ready-to-eat food segments and the major
attraction for these products are convenience, availability and less time consumption to cook.
Due to life style changes and long working hour’s people are choosing these products and
ready to go with it. The availability of raw material to prepare certain spices is one of the
fewer factors in deciding these products. Availability at door step and convenience buying are
the major sources of influence in buying these products. However, there is no specific result
that how much demand will be there for these products, because we have not included tier-II
& tier III cities for this study. These products tend to mushroom because of influence by
regional and MNC players. Most of the well known brand wants to sell their products by
changing our lifestyle and finding pitfalls in the existing eating habits.
 REFERENCES

 ITC Food Products.

http://www.scribd.com/doc/34804404/ITC-FOOD-PRODUCTS

 Ready to Eat Snacks & Food.

Ready-to-eat-snacks-food

 ITC. ITC Brands Booklet. .

http://www.itcportal.com/businesses/fmcg/foods/kitchens-of-india.aspx
 ANNEXURE

GRAPHS TAKEN FROM WEBSITE SHOWING THE CONSUMER BUYING

BEHAVIOUR:
Pictures of ITC ready to eat products