INSTANT FOODS MARKET IN

INDIA AND ABROAD

 DESCRIPTION
• Currently, in the market is available various
types of fast food packaging in the form of an
instant. This will save time for women who
wanted to provide a wide menu of food to
children. But some things need to be
considered related to instant foods.
• 1.Ready to cook.
• 2.Time saving.
• Demand of this type of instant foods are
increasing day by day.
• In India this might be the new trend. So there
are lots of opportunities that one can unveil.
• So to explore the opportunities many big
FMCG giants(HUL,KNOOR) are investing a
huge amount of money in this sector.
• Not only the big players but also small players
like VITS FOOD PRODUCTION PRIVATE
LIMITED are also try to capture this market.
• But there are some issues that needs to be
resolved for successful marketing of this
instant foods such as health aspects and buyer
behavior(psychological , social aspect).
 Success Story Of VITS.
• Founder A. K.Virani had started the business in 1962
only with a capital of 4 lakhs INR. Within 20 yrs net
sales of the company had triggered 310.5 lakhs INR.
This is no doubt a very big achievement where
business giants like HUL is compelled to withdraw
there instant food vertical within couple of years of its
launching.
• In 1951 he started first with biscuits which he used to
make at his home and deliver from door-to-door.
• Till 1961 the business was run mostly on Mr. Virani’s
own savings.
 The structure of the company
1977-78 1978-79

Net Sales 290.7 310.5

Net profits 14.4 18.6

Total capital employed 16.0 16.0

Net worth 45.0 51.0

Fixed assets

1.land and building 14.0 14.0

2.plant & machinery 12.0 14.7

 Product/Price List
Item Name Weight Unit retail price

1.Dosa Mix 225 3.50

2.Jalebi Mix 100 4.10

3.Vada Mix 225 3.25

4.Vegetable Soup 60 3.25

5.Chicken soup 60 5.00

6.Chicken and gravy 350 8.50

7. Mutton and gravy 350 7.60

 Business model of the company
• Product mix: Above listed items along with
some other related foods are available in
different and attractive packet size.
• Price mix: The price list for different products
are as per the table . the retailers are given a
commissions of 20%.
• Promotion mix : the company utilises all forms
of promo tools starting from paper Ad to TV
Ad.
• Place mix: The products are sold through a
Large no of retail outlets. The company’s
salesmen call on retailers in different towns
and book the orders which are supplied
directly from factory.
– Exports: 80% of the total sales are contributed by
the exports. People mostly of Indian origin who
settled in all corners of the world are the main
consumer of our product.
 Reasons for Lack of popularity for
“instant foods” in India
1.Prejudicious :people of India still think that
huge amount of pesticides and harmful
chemicals are being used in these “Instant
Food” industry.
2.Hygine:we are still belief that if we can not
wash the fruits or vegetables by using water
It’s not clean but this is not the case for these
food industries.
3.Lack of unique test: Simple Dal in Kolkata will
tests dramatically different from that of the
Chennai. Reasons are quite obvious and
understandable—food habit and technique of
using spices. But when we use “instant food”
we are lagging from this regional test because
it has an universal approach.
4. Promotion: The rural class people mainly are
not aware of this type of good that is available
in the market. Lack of awareness is there so
mass participation is needed .
5.Place:Indians are still not addicted towards
this so called mall culture so we need to chose
places from where we usually buy such as
green vegetable shops in local market.
6.pricing:pricing should be more attractive so
that buyers should fell that the are getting
more perceived customer value.
7.Product:Company should understand the fact
that no one will buy packaged rice or roti.
They should concentrate more on side dishes.
 Prepare A strategy for VITS so that
they gain more market share in India?
• Current situation: we think they are in
question mark zone. Market growth rate is
high(as 30% of vegetables &fruit production is
wasted in India and only way out is packaged
food)and there market share in domestic is
low low. They
should invest
• more to become as
• stars.
• They should done a SWOT analysis which we
reveal that opportunity is huge if they can
plan it properly. There strength is the have the
technology by which they can preserve the
green vegetables which normally rotten after
some point of time. But there weakness is that
they are not popular in domestic market.
• To became popular in domestic market they
need to do a STP(segmentation , targeting,
promotion).There target market should be
unmarried and old people who does not have
a very good scope of conventional cooking.
 Complete Marketing Mix for VITS
• At first the main thing that the company
needs to do is to get clear knowledge of what
type of products the consumers need for their
use. This can be done by taking opinions from
them or keeping a close eye on their daily life
style. After that the company can accordingly
design the product and put it into the market.
Now for this the company has to take care of
the 4P’s of Marketing Mix i.e. Product, Price
,Place, Promotion.
 Product
• They should go through different the product
development stages.
1.Idea generation : side dishes ,high food
values , breakfast items and so on.
2.Idea screening :with due respects to the errors
like GO ERROR and DROP ERROR we will opt
for side dishes and breakfast items.
3.Concept development and testing: keeping the
criterions such as gap level ,perceived value,
user targets ,we will develop the product
accordingly.
4.Marketing strategy : measure the target
market size, structure , behaviors of the
consumer.
5.Business analysis: we will prepare a sales cost
and profit projection and build the plant
accordingly so that situation of overwhelmed
demand will not happen.
6.Product development: try to reduce the fixed
cost(rent,electricity) and variable
cost(wastage of raw material in this case
vegetables) as much as possible.
7.commercialization: where, when,whom and
how strategy.
 Price
1.Select the pricing objective : basically the
maximum market share and product quality
leadership objective should be taken.
2.Determining demand: find whether the
market is price sensitive or not? ans in this
case is yes. Here the competitor is the green
vegetables that we get in the market.
3.Estimating cost:we can go for differentiated
marketing offerings for different target
segment using the ABC(activity based cost)
tools.
4. Analyzing competitors’ costs,price,offers
5.Selecting a pricing method: we will go for
simple mark up price.
6.Select the final price
7.Adapting the price: we will follow some basic
rules ----
(a) Geographical pricing (b) price discounts and
allowances (c)promotional pricing and (d)
discounted pricing.
 place
1. It should be available within the reach of
people whom we are targeting .
2. We want to sell this items in the green
vegetable shops from where we usually buy
daily green vegetables. we can offer bigger
cut to the shopkeeper so that they promote
our product.
3. Keep the product in a cool and hygienic place
so no “-ve” sentiment will spread about the
product.
 promotion
1.Macromodel of the communication: consumer
should able to encode properly what he wants
say about our product and we should able to
decode it properly.
2.Micromodel of communication: here our
customer will follow learn-do-feel technique.
So we should give extra care about the
product awareness.
3.Identify the target audience :free sample
distribution in malls in form of quiz so
awareness about product will also increase.