Introduction – An

understanding of Indian
consumers and their
consumption behavior
Consumers are irrational in their choices. They do not always
make choices based on utilitarian attributes. The strength of
hedonic attributes can be vividly seen as in the cases of
successful brands like SWATCH and Maggi.

SWATCH sold itself on the hedonic attributes like “product

design and style experience”. Maggi claims to be cooked in 2
minutes, but takes approximately 5-10 minutes to be cooked and
still consumers accept it as it has positioned itself as a food that
can immediately quench hunger – a marketing strategy that
helps Maggi to connect with mothers and children, for whom
food is very important and so quick delivery becomes essential.
This happens because consumers are irrational in their choices.
These examples thus bring forward to us the potential scope of
influencing consumer choice.

Food processing sector, particularly the Ready to Cook (RTC)

and the Ready to Eat (RTE) food segment is one the fastest
growing sectors in the Indian economy. The results come as a
positive response for the FMCG sector which has seen a
significant rise in the percentage of urban population. The trend
between urban growth and eating patterns becomes evident.
Globalization has had a strong influence in establishing
continual growth in the nuclear family structure. These changes
become important as they are not just an indication of a change
in social structure, they act as key inputs to influencing
consumer choice. Consumer behavior is influenced by cultural
factors, social factors, personal factors and psychological
factors. People who differ in these factors tend to have a
difference in the choices and consumption patterns. For
example, a college student or a working professional in an
urban area will have a greater proclivity towards products that
deliver similar results in lesser times when compared to a
farmer working in a rural area. RTE data indicates strong
potential in the consumption patterns and therefore an analysis
of how the RTE foods cab be marketed better in India becomes
essential.

Current challenges to
RTE industry:-
1. Cultural factors and association of food consumed with
emotions– Indian consumers have a lot of affection
associated with food they consume. Food consumption not
only appeals to most of the senses, it is also driven by the
people around us. Mothers put in a lot of love and care in
cooking food for children in India. Introducing a product
that is ready to eat and does not involve a hand of mother
will involve changing the personality of consumer. This
 will lead to alienation of values, emotions and culture with
food

1. Rise in health awareness has been a global phenomenon

since the last decade. More consumers have come forward
to take a call on their health. As such, one of the challenges
that ready to eat products bring for Indian customers is the
freshness of food. The traditional eating pattern of Indians
consists primarily of foods that are cooked and consumed
with in 1 or two meals. The freshness factor could be
attributed to the geographical structure of the country
where storage of food in not a consideration in minds of
consumers. RTE foods are also assumed to contain
chemicals and preservatives that is one of the factors that
keep true loyal from latent loyal.

1. Variety in consumption of food– The Indian subcontinent is

marked by presence of rich variety in fodo consumption
pattern. While in Punjab, consumption of “paratha and
butter” is very high, “idli and sambhar” wins the race in
Tamil Nadu. Similarly, rice is a staple cereal in the eastern
states like West Bengal and Assam where as in the western
states like Haryana and Delhi, wheat is the preferred
cereal. This introduces a tough call for the firms who fall
into the trap of variety.

1. Availability of RTE foods remains an important issue as

the concept needs to spread into the value chain. The foods
are primarily available in urban areas and that too, mostly
 in above average retail shops. RTE is new to industry and
consumer involvement across the value chain is low.

Solution and
recommendations:-
1. Increase consumer awareness for the product by creating
an enduring positive attitudinal change through use of
advertisements. The advertisements should cater to central
root processing by using message arguments in the
advertisements. A catchy tagline, colorful packaging and
relevant information displayed will be required. For
example, messages like “no added preservatives”, “healthy
food”, “0 % chemicals”, “mothers love now in a packet”
would reduce consumer dissonance and help in accepting a
product to move from attitude to intention to adoption.
Such messaging will work as ice breakers for consumers
who currently feel disconnected with the product.

1. Reduce dissonance with advertisements like “so many

others have also bought the product”. Ease the process of
brand recall by using advertisements with encodings.
Greater will be the ease to recall the brand , greater will be
the propensity to buy the brand.

1. Present an advertisement that solves “consumer’s

problems” for quick food keeping health factor intact.
Consumers in urban areas regularly need RTE foods due to time
constraints. Increase consumer involvement through
advertisements and promotional campaigns. Consumer should
be informed as to how can RTE food be their correct choice for
quick and healthy food. Create fun filled or humor filled
advertisements with relevant messages for promotion so that
brand retention for food products is present.

1. Marketing research to understand what is the driving force

behind low adoption of product by consumers. Is it their
attitude towards behavior or is it their subjective norms?
Which of these is significant? Use the results from research
to develop advertisements and promotion campaigns to
influence their behavior to increase adoption of RTE foods.

2. Increase variety in foods offered. Conduct a marketing

research to understand products that would be most
demanded by consumers in the RTE form. First produce
such products that do not have geographical limitations.
Production can then be taken ahead to increase variants
for consumers according to the demand.

1. Increase presence of RTE products in the value chain

through a strong distribution network. Involve the retailers
and distributors with good profit margins in order to
create a value chain. Increase accessibility and availability
of products as it has a direct impact on top lines.