Ready to Eat Foods

Topics: Factor analysis, Marketing, Principal component analysis Pages: 8 (2264 words) Published: September 27, 2012
2011 International Conference on E-business, Management and Economics IPEDR Vol.25 (2011) © (2011) IACSIT Press, Singapore

Managing the Diffusion of innovation in Ready-To-Eat Food Products in India T.Sarathy1 and Shilpa Gopal2+
2 1

Periyar Institute of Management Studies, Periyar University, Salem University Research Fellow, Periyar Institute of Management Studies, PeriyarUniversity,Salem

Abstract: Food occupies a major purchase amount of the normal consumer. Food consumers have moved up Maslow's hierarchy of needs pyramid from satisfying basic physiological needs. Rapid demographic and socioeconomic changes, such as the massive entrance of women into the workforce and increasing multiethnicity, are fundamental drivers of food- buying and dietary patterns. This has led to the entry of Ready -To-Eat category of Food products. Ready to use food products are those which are prepared in advance and that which can be consumed as it is purchased. The shelf life of such products will be less than 18 months. The present study tries to identify the important factors that determine the buying behavior of Ready-To-Eat food. This study also analyses how the behavior of the customers is getting diffused from an innovative product like Ready-To-Eat Food. The results of the study shows that the consumers are more positively inclined towards Ready-To-Eat Food Products and this is mainly due to the convenience factor and changes in the lifestyle of the people.

Keywords: Brand loyalty, Brand switcher, Food Consumer behavior, Novelty, Organized retail

1. Introduction:
Ready-To-Eat (RTE) foods market in India is currently worth Rs. 130Cr. And it is expected to further expand to Rs 2900 Cr. by 2015. The factors contributing to this 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 rising need for convenience on the demand side. Emerging brands in the Ready to eat category are: Amul, Gits, Haldirams, Ethinc Kitchens ,Kitchens of India ,ITC, MTR, Priya Foods, Rajbhog Foods Inc, Rainbow Foods India, Satnam Overseas Ltd, Shana ,Tasty Bite,Veekay, Ashoka Ready to Eat and Vimal Agro Products. Though the success of this category is a big success in the foreign markets (especially with the NRIs), the success of these items in India is still on a growing stage. Thus it requires an in-depth analysis to understand the expectations of the consumers towards the Ready-To-Eat food. A study was conducted to identify the important factors that determine the buying behaviour of ReadyTo-Eat food. When it comes to buying Ready –To-Eat food products customers may be quality conscious because it affects their health. It is well known that Indian customers are price sensitive and therefore customer perceptions that Ready-To-Eat food category are priced low may influence buyer decisions positively.

2. Research Methodology 2.1.

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• The primary objective is to identify the factors that favorably influence and expedite or slow down diffusion of innovation in the case of Ready-To-Eat in food. • To study whether or not price is an important factor that favors purchase of Ready-To-Eat food. • To study whether or not consumers look for quality in food brands and whether that influences their purchase behavior. • To study the risk perceptions that consumers have in buying Ready-To-Eat in food. A questionnaire was designed for the purpose of the study and the questionnaire included questions relating to the different variables which affects the consumers behavior .


Statistical tools used

Factor analysis was used to analyse the data collected from the consumer survey on perception of consumers. The data fed for factor analysis consisted of the data obtained from a sample of 506 on different...
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