A STUDY

ON
CONSUMER PERCEPTION TOWARDS READY TO EAT (RTE) FOOD
PRODUCTS OF MODERN FOODS INDIA LIMITED (MFIL), IN (BBSR)
MARKET.
A Project Report submitted to the Department of Business Management,
Central University, Koraput in partial fulfilment for the award of Master of
Business Administration

Submitted by
K Ganesh Kumar
Roll No. 17/06/DBM/16
Regd. No. 2385

Under the guidance of

Dr. Giridhari Mohanta

Department of Business Management

CENTRAL UNIVERSITY OF ORISSA
KORAPUT
SESSION-2017-19
 CONTENT
Declaration ii
Certificate iii
Acknowledgement iv
List of Abbreviations(if any) v
List of Tables vi
List of Figures vii
Content viii

Chapter
Particulars Page No.
No.
I Introduction
1.1 Background of the study 1-7
1.2 Significance and Scope of the study 8
1.3 Research Problem 9
1.4 Sequence of the study 9

II Conceptual Framework
2.1 Introduction 10
2.2 Definition 10-12
2.3 Techniques ……. 12-21

III Literature Review

3.1 Introduction 22
3.2 Literature 22-27
3.3 Research Gap 27

IV Research methodology
4.1 Introduction 28
4.2 Research Design 28-29
4.3 Research Objectives 29
4.4 Hypothesis of the study 29-30
4.5 Period of the study 30
4.6 Sampling Design 30
4.7 Sources & Methods of Data collection 31
4.8 Tools & Techniques used for Data analysis 31-33

V Company Profile 34-48

VI Data Analysis 49-67

 CONTENT
VII Summary & Conclusion
7.1 Introduction 68-69
7.2 Summary of major findings 69-71
7.3 Conclusion 71
7.4 Suggestion 71-72
7.5 Limitation & Further Research Avenue 72-73

Bibliography ix-xi
Annexure xii-xv
 DECLARATION

I Mr K Ganesh Kumar, Enrolment No:17/06/DBM/16 student of MBA department of

Central University of Orissa and I do here by declare that the present study was undertaken
by me under the guidance of Dr. A Mohan Murlidhar and the project report entitle "
CONSUMER PERCEPTION TOWARDS READY TO EAT (RTE) FOOD PRODUCTS OF
MODERN FOODS INDIA LIMITED (MFIL), IN (BBSR) MARKET " at MODERN
FOODS INDIA LIMITED (MFIL), is my own and neither has been submitted to any other
institution any beforehand.

Date: K Ganesh Kumar

17/06/DBM/16
 BONAFIDE CERTIFICATE
This is to certify that this piece of project report -" CONSUMER PERCEPTION TOWARDS
READY TO EAT (RTE) FOOD PRODUCTS OF MODERN FOODS, a case study at
MODERN FOODS INDIA LIMITED (MFIL) in Bhubaneswar has been prepared by K
Ganesh Kumar under my supervision and guidance. This report is an outcome of extensive of
study and is for the partial fulfilment of MBA programme and their field work is
satisfactory.

I wish him all success in life.

Dr. A Mohan Murlidhar

Central University of Orissa
Koraput
 ACKNOWLEDGEMENT
It is my proud privilege to release the feelings of my gratitude of several
persons who helped me directly or indirectly to conduct this project work on
" CONSUMER PERCEPTION TOWARDS READY TO EAT (RTE) FOOD
PRODUCTS OF MODERN FOODS INDIA LIMITED (MFIL)". I express my
deep thanks of gratitude to my H.O.D i/c Dr. A Mohan Murlidhar of Central
University of Orissa for his kind approval of this project work in MODERN
FOODS INDIA LIMITED (MFIL)..

I am extremely thankful to Mr. ASHWINI MAHAKUR

,(AREA SALES MANAGER) for allowing me to conduct the study in the
organization and extending co-operation to me during my training period.
I offer my special thanks to all the employees of MODERN FOODS INDIA
LIMITED (MFIL) (BBSR) for their kind and affectionate co-operation to me
during my training period.
I take this opportunity to express my deep sense of gratitude to my parents for
their constant support and inspiration in every walk of life. I express my heartful
thanks to my friends for their kind co-operation in completing the project.
I am very much thankful to my H.O.D i/c Dr.A Mohan Murlidhar of Central
University of Orissa for his kind help and suggestions as well as his effort
which made it possible for me to present the hardcopy in front of you.
 Executive Summary:
Varanasi city has a population of 3,682,194 (census 2011), its literacy rate is 77.05
percent as well as one the largest commercial centre in the U.P. The food habits in Varanasi
have changed due to the upliftment of lower class to middle class and middle class to higher
class as well as higher income level and rise in dual income level, standards of living, nuclear
family and more important is influence of westernization, due to this number of customers in
Varanasi city consuming ready to eat (RTE) foods have increased.
The majority of working class also mentioned that RTE food is a boon to save time,
energy, as well as prevent old age traditional method of long preparation of cooking and
money. In Varanasi city most of the housewives, bachelors, civil servants, business owners
and specially students prefer the RTE foods due to the less cost, time, energy saving as well
as convenience in preparation in the busy and hectic life as well as assures the hygiene and
convenient to eat.
Therefore the purpose of study was to know the preferences of consumers for
selection of RTE foods in their food habits of the households with children or without
children, nuclear family and bachelors mainly because many consumers in Varanasi city lead
time pressured lifestyles and have less time available for formal meals, as a result of which
demand remains high for products which can be eaten on the go.
The study will be helpful in assuming the demand of the RTE foods products in the
Varanasi city as well as also give some basic idea for the business opportunities which
provide the scope of local companies and local entrepreneurs on focusing the RTE foods by
keeping in mind the consumer preferences.
 CHAPTER NO. 1
INTRODUCTION

1.1 Introduction
1.2 Background of the study
1.3 Significance and Scope of the study
1.4 Research Problem
1.5 Sequence of the study
1.1 Background
There is nobody in the world that is left out of the class of consumers. 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 retail
store in preference to others, so consumer buying is 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, comfort, pleasure,
recreation and happiness. Every individual has physiological needs such as hunger, shelter,
thirst, etc., which has to be satisfied for survival. The psychological factors like status,
prestige and social factors like friends, neighbours, job and relatives influence their
purchasing activities.
India has made lot of progress in agriculture & food sectors since independence in
terms of growth in output, yields and processing. It has gone through a green revolution, a
white revolution, a yellow revolution and a blue revolution. Today, India is the largest
producer of milk, fruits, cashew nuts, coconuts and tea in the world, the second largest
producer of wheat, vegetables, sugar and fish and the third largest producer of tobacco and
rice. Now the time is to provide better food processing & its marketing infrastructure for
Indian industries to serve good quality & safest processed food like ready to eat food.
It is opening a new window in world scenario as far as taste & acceptance is concerned.
Therefore, Indian Government is providing more infrastructure for this sector. Excise duty is
now ZERO % on RTE and 100 % tax deduction for the first 10 years for new units. This
allows manufactures to bring down their prices & spreads its flavors to the world. The
processed foods do not require rehydration or cooking and can be consumed straight from the
pouch with or without pre-warming, depending upon the requirement of the users and the
weather conditions. These foods meet the specific needs of convenience, nutritional
adequacy, shelf stability, storage, distribution to the centres and have become very popular
after the Year 2002. Some of the mouth-watering dishes in retort pouches include sooji
Page | 2
Introduction
halwa, upma, chicken curry, mutton curry, fish curry, chicken madras, chicken kurma, rajma
masala, palak paneer, dal makhnil, mutter paneer, potato-peas, mutter mushroom, vegetable
pulav chicken pulav, and mutton pulav, etc. The pioneer introduction of retorting technology
has made the sale of ‘Ready-to-Eat’ food products commercially viable with great taste.
India is one of the largest food producers of the world with the organised sector
accounting for food output worth US $34827 billion (Source: www.weikipedia.com), only a
small percentage of its farm produce is processed. This underlines the enormous scope for
investing in the processed food sector in the areas of infrastructure, packaging and
machinery. The potential for investment in this sector is further accentuated by the following
factors:
A huge and exponentially growing demand represented by a market of one billion
people spending on an average about 50 percent of household expenditures on food
coupled by a scenario of rapid urbanization and changing lifestyles.
Increase in per capita income and purchasing power.
Well developed infrastructure and distribution network.
Large pool of scientific, technical and skilled manpower.
Introduction of a number of liberal policy initiatives by the Government to boost food
processing activities.
Considering the greater potential for food processing industry in India, government had
committed to encourage various activities for the development of this sector. Indian
government had been giving importance to the food processing sector, by way of fiscal
incentives to encourage commercialization and value addition of agricultural produce, for
minimizing pre/post harvest wastage, generating employment and export growth.
1.2 Ready-to-eat Food Products : Overview
Food has always been an integral part of the society. Over the period, India has been
witnessed to be influenced by the Western Culture and so does creeps in Ready-to-Eat (RTE);
Food Packages which provide any person an ability to wear an apron to be a master chef in
Page | 3
Introduction
no time. With the changing style of food consumption and the benefits availed through the
use of Ready-to-Eat food has resulted in a subsequent rise in the RTE market.
Ready-to-Eat dates back to 1970’s and gained popularity since then. In 1975, when
the state of emergency was declared, MTR had to shut down its business unit as it was
running into losses. However at that time, the son of the owner of MTR employed his former
employees to work for packaged food products. The total value of Indian food processing
industry is expected to touch US$ 194 billion by 2015, according to Mr. Swapan Dutta,
Deputy Director General, and Indian Council of Agricultural Research (ICAR).The food
processing industry is one of the largest industries in India and it is ranked fifth in terms of
Production, Consumption, Export and Expected growth. Demand for Ready-to-Eat meals has
captured a large amount of the food retail market in India. Thus, the emerging change in
consumer’s perception, socio-economic-political factors has led to change in consumers
purchase intention toward Ready-To-Eat Food Products and thus providing a huge business
opportunity against some of the major established players in the market like MTR, Amul,
Vadilal Kitchen Express and many more. (Foundation, Indian Brand Loyalty, 2013), RTE is
highly growing industry with the changing lifestyle of the people but not much has been
researched on it in India.
Ready-to-Eat food is food that is offered or exposed for sale without additional cooking
or preparation, which is packaged on the premises where they are being sold and are ready
for consumption. Canned foods, convenience foods, fast foods, frozen foods, instant
products, dried foods, preserved foods, etc. all come under Ready-to-Eat foods.
Demographic variables and socio-economic characteristics of the consumers are also
important variables, which decide the consumption pattern of food products in the family.
Factors influencing the consumers choice of RTE food are flavour, texture, appearance,
advertising, a reduction traditional cooking, fragmentation of family, other factors positively
influencing Ready to Eat food demand are rising income level, influence of western
countries, more global trade, travelling, convenience in preparation due to lack of time and
cost effectiveness. Demographic variables and socio-economic characteristics of the
consumers are also important variables, which decide the consumption pattern of food
products in the family.
Page | 4
Introduction
Factors influencing the consumers choice of RTE food are flavour, texture,
appearance, advertising, a reduction in traditional cooking, fragmentation of family. Other
factors positively influencing Ready to Eat food demand are rising income level, influence of
western countries, more global trade, travelling, convenience in preparation due to lack of
time and cost effectiveness.
Development of the metropolitan cities due to increase in population, emergence of
industries, evolution of various new factors, time factor, etc., created the need for Ready-to
Eat foods in the market. Due to industrialization, the labour category is getting attracted to it
because of better emoluments and hence there is shortage of home maid-servants. Due to this,
the housewives, in order to save time started using Ready-to-Eat foods.
Earlier times, a single family consisted of many people i.e., a group of several nuclear
families were living in a single place. Hence, larger quantities of the food were used to be
prepared. But as these joint families started disappearing due to various reasons, each single
family started using these Ready-to Eat foods in order to save time and energy. Ready-to-Eat
meal offerings have developed to meet the need for ease of use and convenience, consumers
focus on fresh, healthier eating options due to which they might not want to consume
Readyto-
Eat food. Ready-to-Eat food products are the delicacy of lower age groups as compared to
the old age people.
Non-preference for Ready-to-Eat food was due to various reasons like low cost of
home preparation, differences in taste, non-preference of Ready-to-Eat food by other family
members, higher prices, lack of awareness of the products that are available in the market and
non-availability of Ready-to-Eat food. Difference in taste between homemade food and
purchased Ready-to-Eat product was found to be one of the most important reasons for not
using Ready-to-Eat food. Whereas, the reasons for not purchasing Ready-to-Eat food
products were the lack of awareness of the products, disliking towards the products, relatively
high price and health consciousness of the people.
Indian cooking and lifestyle have undergone tremendous changes for the last 15 years.
There are many major factors impacts this change are include, liberalization policy, dual
Page | 5
Introduction
income, separate living of couples, Innovative kitchen applications, Media proliferation etc.
The cooking style and eating habits in India varies drastically from southern part of India to
northern part of India. Due to lifestyle pressure nowadays people prefer easy short way of
cooking food rather spending too much time on spending in cooking. Non-availability of raw
materials to prepare masala and tedious process involved in doing so, has influenced people
to choose such products. There is no specific category and market potential for these
products. The product portfolio varies from noodles, pasta, chips, dairy products, fish & meat
products, ready cooking dosa, parota items, masala dishes, pre cooked dishes etc. There are
peoples, who are migrating to cities for job and education and these people have find the
Ready-to-eat products are comfortable to eat rather than depending on restaurants.
Most of the dual income (both husband and wife are office goers) families want to
spend much less time on cooking because of less availability of time. During weekends they
want to spend time with their kids and outing, whereas in weekdays the office duration is
large and these factors forced them to go for buying such products. Other factors influences
this products is availability of different flavours and dishes. Consumers who are looking for
different dishes and flavours now depend on these products. This products brings variety to
their eating’s and palatable too. There is no conclusion which one precedes-whether the
availability or taste or time constraint, all these factors complement each other in driving
these products.
When India becomes the hub of many multinationals and there is a rapid change in
people lifestyles. Modernization, majority of young population, Knowledgeable consumers,
will make an impact on these products. Due to raise in literary levels, proliferation of
communication technology, consumers are becoming more aware of the foods they intake
and they take decision based on the wealth of resources available. There are datas available
like India is becoming capital for heart patients and diabetic, there is a much stress given on
lifestyle and food habits of peoples. Health conscious consumers are mostly well educated
and can access to different information available on the internet, magazines, TV shows, and
word-of-mouth information by their society people. More than male, the female consumers
shown much interest in knowing the level of calories, ingredients and certain product
approval certificates in choosing the products. This shows a good sign of healthy generation
in India, especially in the age group of 20-40. Females are also weight conscious and they
Page | 6
Introduction
decide the products based on their consciousness. Often, house wives become the major
influential factors in deciding the food products for the whole family. They now going for
purchasing high fibre, low calories and nutrition rich products for their family protection.
Advertisements about these products are also becomes a major factor in deciding these
products. Level of obesity is on the rise of Indian population and on one side consumers are
becoming awareness of the food they intake and on the other side consumers are carried away
by advertisements information and packaging styling.
The research focused on finding the reasons for purchase and non purchase of Readyto-
Eat food as a substitute to a daily meal (i.e. Indian breads, Rice and curries) taking into
consideration the changes in socio-economic conditions prevalent today. It thus focuses on
knowing the perception of the consumers towards Ready-to-Eat food and the impact of
factors on their purchase intention. There existed an ambiguity of what Ready-to-Food is, as
different sources provided with different meanings. In order to derive a niche expertise of
derived findings, the research was restricted to only branded Ready-to-Eat products and to
consumers who were aware about RTE food products.
To further narrow down the scope of research and retain the accuracy of the results,
the research focused on respondents belonging to Lanka area, BHU campus, Bhagwanpur
area and Bhelupur area of Varanasi district. Various Intrinsic factors, Extrinsic factors and
Socio-economic factors were studied to understand consumer perception and purchase
intention. In order to analyze and interpret the data, various statistical techniques including
Likert Scale were applied. Findings suggest that ‘Ease of Use’ and ‘Saving of Time’ were the
two most important factors that affect buyers and potential buyers of RTE food. The research
further states as to how people look for the value they pay for when it comes to RTE food
unlike any other food related purchase. And so comes with it a strong favourability to Health,
Quality, Brand Image and Availability. Purchase intention was found to be dependent on
Age, Income, Marital status, Education status. Research findings where recommended and
verified by the prominent market players.
(Source: www.wikipedia.com,www.rte.ie/lifestyle/food)
Page | 7
Introduction
1.3 Ready to Eat Food: Product Classification
Bakery Products – Biscuits, Cake etc.
Snacks – Chips, Namkeen, wafers etc.
Dairy Products –Ice cream,sweets,Lassi etc.
Canned and packaged food.
Candy and Chocolates.
Fruit juices
Soft drinks and beverages
Others
Ready-to-eat foods provide excellent quality and price value to food service
operations. The consumers consider them healthy and hygienic. These foods are
processed and require little or no preparation to serve. It is a new concept in Indian
market which is having immense potential to grow.
1.4 Advantages and disadvantages of ready to eat food products
The major advantages of RTE food products are:
-These foods never run out of stock as lot of companies have ensured efficient supply
line for good business.
- They are convenient when you don't have a lot of time and are handy on the go. RTE
Cereals are Healthy alternative breakfasts.
- RTE food is safe enough to be consumed as the companies manufacture these
foodservice products under well protected conditions and they are processed under the
rules and regulations laid down by the government.
- The RTE frozen fruits and vegetables can be carried to any place even where these
fruits and vegetables do not grow at all. And as these fruits and vegetables are frozen,
Introduction
Page | 8
they do not lose their nutrition value.
As the norm of a two sided coin, RTE products such as processed foods and prepackaged
meals with their advantages also have disadvantages like:
- They are full of chemical preservatives that keep them fresh and make them
convenience foods.
- They are full of salt, which isn't good for anyone if not moderated.
- As per health studies, they contribute to health conditions such as heart problems
high blood pressure, kidney and liver problems.
RTE meals are useful for many people in different ways. For sick, old people who are
unable to make food and travellers the RTE meal is a boon. Backpackers/Hikers travelling
around remote area find these meals a convenient method of storing, packing and consuming
nutrient rich food.
The fact remains that on a planet of six billion where majority of the people have less
time on their hands RTE foods are here to stay and hence accepted by a large number of
people ignoring its few demerits.

1.4 Objectives of the Study

The objectives of this study are to identify market opportunities in the context of
consumer preferences in the RTE food domain and to coin strategies to capture market share
in Varanasi city of Uttar Pradesh as well as in India. Varanasi city has a vast potential of
growing and exporting RTE foods. However, this requires a lot of effort in terms of product
quality and infrastructure also to know about the demand of the RTE food products in the as
well as also give some basic idea for the business opportunities and scope. So in the coming
year due to higher demand of RTE foods provide the scope of local companies and local
entrepreneurs.
Introduction
Page | 9
The specific objectives of the study were:
1. To study the consumption pattern of ready to eat products in the study area.
2. To identify the factors influencing brand preference and purchase behaviour.
3. To analyse the response of consumers with respect to quality, price , variety,
packaging and freshness parameters.
4. To examine the influence of media to create brand awareness.
5. To study the alternative purchase plans for RTE foods.
1.1 Sequence of the Study

The entire project work is divided into into 7 chapters. The first chapter deals with the
introduction about the importance of clean, healthy and safe drinking water ,background of
study, significance and scope of study, research problem and sequence of study.
The second chapter deals with conceptual frame work which includes conceptual frame work
which includes introduction ,definitions, tools, techniques and measures associated with the
research work. similarly the third chapter deals with literature review which includes
previous literature studies as well as research gap.

Whereas the fourth chapter deals with research methodology which includes research design,
research objectives, hypothesis of the study, period of study, sampling design, sources and
method of data collection, tools& techniques used for data analysis.

The fifth chapter deals with company profile which includes the company profile with
mission and vision statement, swot analysis and board members of Panasonic India Pvt Ltd.

The sixth chapter deals with data analysis and interpretation.

Finally the seventh chapter deals with the summary of major findings, conclusion,
suggestions and limitations of the study followed up with bibliography and annexure.
 CONCEPTUAL FRAMEWORK

2.1 Introduction

2.2 Definition

2.3 Consumer Buying Process

Introduction

Every research work is based on a conceptual base that provides the researcher basic and
foundational knowledge about the topic related to the Research.
This chapter will give information about all the basic concepts and theory which has been a
base to this research and which is essential to know before carrying out research in this
specific topic. It also provides information regarding all the techniques and tools used in this
research.

REVIEW OF LITERATURE
In this chapter, research works done in the past regarding factors influencing the
buying behaviour and consumption, brand loyalty ,brand composition ,awareness of
consumer and demand estimation has been reviewed and presented as under.
2.1 Factors influencing buying behaviour and consumption
2.2 Brand loyalty
2.3 Brand composition
2.4 Awareness of consumers
2.5 Estimation of demand
2.1 Factors influencing buying behaviour and consumption
Gluckman (1986) has studied the factors influencing the consumer preference of
wine. The explicit factors identified were, the familiarity with brand name, the price of wine,
quality or the mouth feel of the liquid, taste with regard to its sweetness or dryness and the
suitability of all tastes. Some of the implicit factors identified through extensive questioning
were, colour and appearance of wine. Most of the consumers preferred white wine to red.
Packaging, appearance, colour, use of foreign language and graphics were taken as important
clues for quality and price. The study revealed that consumers prefer French or German made
wines to Spanish or Yugoslavian wines.
Venkateshwaralu et al. (1987) conducted a study to analyze the buyer behaviour
towards biscuits. They have concluded that consumers generally prefer packed biscuits when
compared to unpacked ones. It was also found that children are the major influencers in
decision making while purchasing biscuits, though parents are equally involved. Besides, the
study revealed that 76 percent of the respondents purchase biscuits at least once in a week. It
was concluded that that the marketers have to give considerable importance to taste, freshness
and brand name of biscuits as they largely affect the decision making process of consumers.
Page | 11
Review of Literature
Rees (1992) in his study observed that the factors influencing the consumers’ choice
of food are flavour, appearance and advertising. Demographic and household role changes
and the introduction of microwave ovens have produced changes in eating habits. Vigorous
sale of chilled and other prepared foods is because of the attitude of large number of working
wives and single people who prefer convenience. Development in retailing with
concentration of eighty percent of food sales in Supermarkets is also considered to be an
important factor. Consumers are highly responding to messages regarding safety and health.
They are highly concerned about the way in which food are produced and want safe, natural
and high quality food at a reasonable price.
Srinivasan (2000) reported that consumers with high educational qualification highly
prefer to buy processed products. Besides, processed fruits and vegetables are highly
preferred by consumers belonging to high-income group. The tolerable limit of price increase
identified is less than five percent and any change in price above this limit, would result in
discontinuance of the use of processed product. Majority of the consumers prefer processed
products because of their ready- to- eat form.
Foret (2006) has studied the factors that influence the behaviour and decision making
of consumers when buying beverages. The analysis was based on data on consumer
behaviour obtained within the period during 1993–2004. Based on the results obtained, it was
concluded that hypermarkets were dominating not only as a place of purchasing foodstuffs in
general but also as a leading outlet for sale of beverages. It indicates a change in consumption
habits and reflects an interest in a healthier lifestyle. It can be concluded that hypermarkets
are dominating not only as a place of buying foodstuffs sale in general but also as a leading
outlet for the sale of beverages. It is also of interest that Czech consumers prefer Czech
brands of beverages.
Renuka (2008) made an attempt to analyze the buying behaviour of ready-to-eat food
products by consumers of Hubli and Dharwad. A sample of 200 respondents were selected
for the study. Majority of the respondents were aware of Parle-G, Lays, Frooti and Amul
brands in case of biscuits, chips, fruit juice and ice creams accordingly. Television was the
major source for getting information about various brands in
Page | 12
Review of Literature
all the four products. Biscuits were consumed by all the respondents because of their
convenience to use it as snacks. About 92 per cent, 93 per cent and 94 per cent of the
respondents consumed chips, fruit juice and ice-creams respectively. Taste was the main
driving force for purchasing of chips, fruit juice and ice creams. Health consciousness was
the main factor for consumers not purchasing chips. Majority of the respondents were not
purchasing fruit juice because they preferred home made products. Dislike towards the
product was the main reason for not purchasing ice creams. The average monthly expenditure
on ready-to-eat food products was found to be highest in case of high income group. Planned
purchase was common among majority of the consumers for biscuits and fruit juice.
However, most of the respondents did impulsive buying for chips and ice creams. Parle-G,
Lays, Maaza and Amul brands were highly preferred brands of biscuits, chips, fruit juice and
ice creams respectively. The main factors influencing brand preference of biscuits, chips,
fruit juice and ice-creams were quality, taste and reasonable price. If the preferred brands are
not available in a particular shop, the consumers intend to visit other shops Thus, the study
revealed that young generation highly prefer ready-to-eat food products than the older
groups. Besides the consumer behaviour also varies from product to product.
Venugopalan et al. (2013) examined the impact of rural consumer purchase behaviour
towards Ready to eat Food market, paper focuses on Ready to eat food potentials in rural
market, reasons for improvement of business in rural area, rural RTE Market contribution to
All India Market, factors influencing buying behaviour of rural market, rural marketing
strategy thus, highlighting the faith, belief and buying behaviour of rural market.
2.2 Brand loyalty
Singh and Singh (1981) found that consumers had single or multi brand loyalty based
on the nature of product, like necessities or luxuries. Brand choice and store loyalty were
found to affect the brand loyalty of the consumer. The factors that influence and strengthen
loyalty to brand were quality of product, habit of use and ready and regular availability.
Shanmugasundaram (1990) studied about soft drink preference in Vellore town of
north Arcot district in Tamil Nadu. The study revealed that, the most preferred soft drink
Page | 13
Review of Literature
among respondents as Gold Spot (26%), followed by Limca (24.80%).It was found that taste
was the main factor for preference of particular brand and among the media; television played
a vital role in influencing consumer to go for particular brand. Because of convenience in
carrying, tetra pack was most preferred one.
Ali (1992) studied the brand loyalty and switching pattern of processed fruit and
vegetable products in Bangalore city by using Markov Chain analysis. The result of study
revealed that Kissan brand of jam had a maximum brand loyalty among consumers and less
amount of brand switching occurred for this brand.
Hans et al. (1996) revealed that, the brand switching of consumer was based on
variety seeking behaviour, motivations, curiosity and price motive.
Kamenidou et al. (1998) concluded study on consumers want in order to have brand
loyalty towards food brand. The study investigates which brand characteristics considered
important by consumers in order to have brand loyalty are good taste, standard quality.
Padmanabhan (1999) conducted study on brand loyalty, which revealed that the price
of the preferred brand, efficiency of the preferred brand and influence of advertisement
significantly influenced the brand loyalty. Only when the price of a particular brand is
comparatively low, the farmers would naturally prefer to low priced brand. Otherwise
farmers would naturally continue to purchase the same brand.
Burke (2001) created a brand equity index comprising of three components, best
described as brand equity molecule. This is overarching device of retaining and attracting
customers. The three atoms, which embedded to molecule, were image, value and loyalty.
Image and value perceptions pull in new customers, while loyalty retains customers.
White (2001) examined the factors motivating US specialty food and beverage buyers
to make purchases through Internet. More than half (55.6 percent) of the respondents
purchased items available locally and 39 percent of the respondents purchased items that
were not available locally. Nearly one-third of the respondents indicated that their purchase
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Review of Literature
was motivated by product-related factors such as, brand loyalty, previous experience with
retailers, product selection, perceived quality and/product experimentation. Price was
relatively of little importance to respondents, with 22 percent citing it as a purchase
motivator.
Kamenidou (2002) presented the findings on the purchasing and consumption
behaviour of Greek households towards three processed peach products : canned peaches in
syrup, juice and peach jam. The results revealed that 47.5% of the households purchased
canned peaches in syrup, 67.4% purchased peach juice and 42.6% purchased peach jam.
Reasons for such purchase were satisfactory taste and qualities and households’ perception
that they are healthy products. The results also indicated that the consumption quantities were
considered low, while households usually purchased the same brand name, meaning that
there is a tendency for brand loyalty.
Price and Connor (2003) identified the determinants of coupon values at the brand
level within the context of a complex marketing programme. The results revealed that, higher
brand prices caused coupon values to rise, supporting the price discrimination hypothesis.
Coupon values fall within store displays and more intense advertising, but rise when
couponed products are featured in store flyers. Discount levels are positively related to brand
market share and the size of discounts redeemed for rival cereals. Coupon values fall with
increasing brand loyalty among RTE cereal purchasers. Cereal prices are positively affected
by coupon values, advertising expenditures, input costs and the prices of competing brands.
Sampathkumar (2003) studied the brand preference of consumers in Telangana region
of Andhra Pradesh in purchasing soft drinks. He found that in rural market about 37.5 per
cent of consumers preferred Thumbs-up (urban 30 percent), followed by Coco cola 28.5
percent (urban 37.5 percent), Pepsi 12.5 percent (urban 9 percent) and Limca 4 percent
(urban 8.5 percent). Most of the urban consumers (67 per cent) purchased soft drinks in
nearest Kirani Stores (rural 73 percent), followed by Super Bazaar 27 per cent (rural 26
percent) and others 6 percent (rural 1percent). The method of physical distribution plays a
vital role in a company’s success and failure in the market. Transportation is among the major
functions of physical distribution. Transport adds time and place utility for the product.
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Review of Literature
Nick Wreden (2004) in his book entitled “Fusion branding : how to forge your brand
or the future”, reveals that ,branding has a little secret; it doesn’t know how to count. But the
author mentioned the measure of brand is a pseudo –measurement, i.e. brand equity. It can be
used to overcome the inability of traditional accounting to measure intangible strategic
assets, like perceived quality, brand and channel quantify intuitive recognition about the
value of the brands. It incorporate two brand strengths- it’s standing with purchases and
perception among prospects and customers. Brand strength provides a means to rank winners
and losers in branding wars.
Rajarashmi and Sudarsana (2004) revealed that, almost all the sample respondents
preferred branded products and if their favourite brand is not available in the retail shop, they
will go for another store and their favourite brand. If it is not available in the market, the
respondents are ready to postpone their decision.
Al-Weqaiyan (2005) using15 the attitude behaviour model, conducted a cross national
study of purchase intentions of fast-food meals in Kuwait, where creating and maintaining a
strong brand loyalty is essential for long-term marketing success. He reported that,
repurchase intent is a function of four sets of independent factors such as:
(i) Attitude that results mainly from earlier experiences with the brand
(ii) Perceived barriers to switching from the present brand
(iii) Tendency to seek variety to break the boredom resulting from engaging in consistent
brand choices
(iv) Cultural differences represented in some traits of the national character.
The results revealed that factors affecting repurchase intents vary across the two cultures.
Kim-Hyunah et al. (2005) analyzed the relationship among brand equity factors
(brand awareness, brand image, brand preference and brand loyalty) and suggested a strategy
for brand management in contract food service management companies. He concluded that
brand awareness has positive effect on brand image and brand preference and recommended
that the contract food service companies should focus on improving brand awareness as a
brand strategy. In addition, brand preference and brand image have significant positive
effects on brand loyalty. Thus, the companies should strive to strengthen brand loyalty
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Review of Literature
through building brand preference and brand image. Brand loyalty promotes more customer
visits, which is directly related to profitability of contract food service management
companies, the author concluded.
Banumathy et al., (2006) in their study suggested that, the local companies
manufacturing soft drinks must manufacture high quality soft drinks in order to compete with
multinational companies. The multinational companies promote demand by effective
advertising and improve quality by keeping a check on the taste and price. They adopt
innovative improvements in the production and marketing of soft drinks in order to compete
with the international brands. The study also revealed that there is no association between
age, education, occupation and choice of brands but there is association between monthly
income and brand preference and also there is close relationship between price and
satisfaction level in purchasing soft drinks.
Narang (2006) opined that, a buyer does not stick to one brand in case of food
purchasing. They should be able to recall different brand names when they go for purchase.
Repetitive advertising can be used to promote brand recall. The product should be associated
with style and trend, so that it appeals to the youth and the brand name should be developed
as a fashion statement. Promotional schemes such as discount and free offers with purchase
are suggested to increase rates.
Ekinci and Whyatt (2011) investigated the mediating effects of consumer satisfaction
on the relationship between consumer based brand equity and brand loyalty in the hotel and
restaurant industry. The findings of the study suggest that consumer satisfaction partially
mediates the effects of staff behaviour, ideal self congruence and brand identification on
brand loyalty. The effects of physical quality and lifestyle congruence on brand loyalty are
fully mediated by consumer satisfaction.
Bruwer et al. (2014) adds to the knowledge base on the level of product involvement,
and brand loyalty of Japanese consumers. High involvement consumers show a strong
preference for Ready-to-eat food products mainly from France and Itay.
Page | 17
Review of Literature
2.3 Brand composition
Sabeson (1992) in his study stated that high quality, price and taste of the product
were the major criteria based on which the consumers selected a brand of processed fruits and
vegetable products.
Low and Lamb (2000) came out with an interesting conclusion that well known
brands tend to exhibit multi- dimensional brand associations, consistent with the idea that
consumers have more developed memory structures for more familiar brands. Consumers
might be willing to expend more energy in processing information regarding familiar brands
compared to unfamiliar brands.
Sanjaya Gaur, et al. (2002) in their study on buyer behaviour for branded fine rice,
selected 200 households from Chennai City and 250 households from Coimbatore City by
simple random sampling method. They used percentage analysis and Garrett's ranking
techniques, with the objective of knowing the factors influencing brand and level of
satisfaction in purchasing branded fine rice. The study showed that quality and brand image
were the major factors influencing brand preference regarding rice. The decision for
purchasing branded fine rice was mostly made by the female members of the family. The
retailers are ranked as the prime source of information about branded fine rice. Monthly
purchase is the most preferred frequency of purchase, which might be due to the fact that
most of the respondents are of monthly salaried class and they would have planned their
purchase accordingly along with other provision items.
In a study conducted by Sarwade (2002) it has been observed that the price is the
factor, which influences the purchasing decision as against the quality of the product. It is
very interesting to find out that the company image and brand image were not totally
considered by the households.
Sampathkumar (2003) studied the brand preference of consumers in Telangana region
of Andhra Pradesh in purchasing soft drinks. He found that in rural market about 37.5 per
cent of consumers preferred Thumbs-up (urban 30 percent), followed by Coco cola 28.5
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Review of Literature
percent (urban 37.5 percent), Pepsi 12.5 percent (urban 9 percent) and Limca 4 percent
(urban 8.5 percent). Most of the urban consumers (67 per cent) purchased soft drinks in
nearest Kirana Stores (rural 73 percent), followed by Super Bazaar 27 per cent (rural 26
percent) and others 6 percent (rural 1percent). The method of physical distribution plays a
vital role in a company’s success and failure in the market. Transportation is among the major
functions of physical distribution. Transport adds time and place utility for the product.
Vincent (2006) elicited18 that quality is an important factor that draws consumers
towards branded products. Branded products are accepted as good quality products.People do
not mind paying extra for branded products, as they get value for money. Media is a key
constituent in promoting and influencing a brand. A child’s insistence affects family’s buying
behaviour. Children are highly aware and conscious of branded items. Although unbranded
products sometimes give same satisfaction as branded products, customers would still prefer
to purchase a branded product.
Skorepa and Picha (2011) studied preferences for regional brands of products and
deals with results of several marketing surveys related to the promotion of Czech products in
the regional food market as well as to the consumers’ awareness of regional brands. An
important part of consumers prefers regional food and food products, is interested in the
ingredients and their health impact. Food quality and safety and support to regional producers
become important factors in consumers’ decision making. Results exploring consumer
preferences in the regional food market as well as promotion opportunities of these products
in the market.
Droog et al. (2011) conducted experiment to investigate whether brand characters can
enhance children’s liking of and purchase request intent for fruit compared to candy. Results
showed that brand characters can increase children’s liking of and purchase request for fruit
up to a level similar to candy. However, the effects on liking and purchase request intent did
not differ between familiar and unfamiliar characters. These results may be helpful for future
marketing campaigns to promote children’s consumption of healthy foods.
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Review of Literature
2.4 Awareness of consumers
Venkateshwaralu et al. (1987) conducted a study to analyze the buyer behaviour
towards biscuits. They have concluded that consumers generally prefer packed biscuits when
compared to unpacked ones. It was also found that children are the major influencers in
decision making while purchasing biscuits, though parents are equally involved. Besides, the
study revealed that 76 percent of the respondents purchase biscuits at least once in a week. It
was concluded that that the marketers have to give considerable importance to taste, freshness
and brand name of biscuits as they largely affect the decision making process of consumers.
Ravi et al. (1998) reported consumer awareness and organic agriculture quality
standards. Organic agriculture standards and consumer awareness in India are discussed. The
salient aspects of production and inspection requirements are enumerated. Noting that
consumer awareness of organic food is negligible in the domestic market, it is argued that the
government and non-governmental organizations have a vital role to play in the production of
organic food.
Brown et al. (2000) reported that the need for effective nutritional education for
young consumers has become increasingly apparent, given their general food habits and
behaviour, particularly during adolescence and analyzed that the interaction between young
consumers' food preferences and their nutritional awareness behaviour, within three
environments (home, school and social). The results indicated that the perceived dominance
of home, school and social interaction appears to be somewhat overshadowed by the young
consumers, while developing an 'independence' trait, particularly during the adolescent years.
The authors suggested that food preferences of young consumers are often of a 'fast food'
type and consequently their food habits may fuel the consumption of food with poor
nutrition. While young consumers are aware of healthy eating, their food preference
behaviour did not always appear to reflect such knowledge, particularly within the school and
social environments.
Srinivasan (2000) reported that consumers with high educational qualification highly
prefer to buy processed products. Besides, processed fruits and vegetables are highly
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Review of Literature
preferred by consumers belonging to high-income group. The tolerable limit of price increase
identified is less than five percent and any change in price above this.
Beverland (2001) analyzed the level of brand awareness within the New Zealand
market for ZESPRI kiwi fruit. The effectiveness of this branding strategy employed by kiwi
fruit, New Zealand was studied. The implications of the findings for agribusiness in general
using the data collected from surveys of kiwi fruit consumers (n=106) outside three major
super market chains in Auckland, New Zealand, the results suggested that the level of brand
awareness for ZESPRI is low among consumers. It is indicated that brand awareness could be
increased through a relationship making program involving targeted marketing and supply
chain management.
Chen (2001) expressed a different thought on brand awareness that it was a necessary
asset but not sufficient for building strong brand equity. In his view, a brand could be well
known because it had bad quality.
Yee and Young (2001) aimed to create awareness of high fat contents of pies, and
studied the consumer and producer awareness regarding nutrition labeling on packaging. For
this, seven leading pie brands were analyzed for fat contents and are ranged from 7.1 to 19.2
percent fat. Most pies did not display nutritional labeling on packaging. More than half of the
respondents (52 percent) who responded to the survey were aware of the campaign.The study
was successful at raising consumer awareness about the high fat content of pies and
influencing the food environment with a greater availability of lower fat pies. It is possible to
produce acceptable lower fat pies and food companies should be encouraged to make small
changes to the fat content of food products like pies. The study suggests that regular pie
eaters could be encouraged to select a lower fat option.
Ramasamy et al. (2005) indicated that, the buying behaviour is vastly influenced by
awareness and attitude towards the product. Commercial advertisements over television was
said to be the most important source of information, followed by displays in retail outlets.
Baruah (2009) analyzed the awareness of women consumers regarding food safety.
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Review of Literature
The study was conducted by selecting 120 women consumers of Jorhat to find out the
awareness of women consumers regarding food safety. It was found that 46% of women
consumers had low level of awareness, 42% had high level of awareness and only 12% had
medium level of awareness.
Hicks et al. (2009) consumer awareness and willingness to pay for high pressure
processing of Ready to eat food. Commercial, non thermal processing of food, such as high
hydrostatic pressure processing (HPP), has increased. The safety and quality of foods
produced by HPP has not been well communicated to the public. An online, nationwide
consumer survey was implemented to assess awareness of alternative food processing
technologies, consumer willingness to pay for HPP products.
Nasser et al. (2009) show consumer perceptions of trans fats and awareness of
negative effects but limited concern regarding use in snack foods. Respondents were asked if
they looked for information on food packages while grocery shopping, none of the
respondents indicated that they looked for trans fat on the food label.
Sahingoz and Sachin (2009) analyzed consumer awareness on food poisoning. This
study aims to determine the level of knowledge of consumers on types of food poisoning and
whether or not they have had food poisoning in the past. The research sample consisted of
232 people.The research data were collected using a questionnaire, face- to- face interviews
and observation. The data were analyzed using SPSS 13.0 for windows. Chi- square test was
applied in order to determine whether a statistical difference between the participants existed
or not, by taking their education levels as the variable.
Sharma and Gambhir (2009) analysed the Consumer awareness about quality and
safety of packaged foods in Chandigarh. This study showed that the packaged foods are more
popular in urban areas but popularity of packaged foods is also increasing in suburban areas
and rural sectors. Low price, small packs, convenience and taste were reported to be the
major factors contributing to the popularity of packaged foods among the respondents in both
rural and urban areas.
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Review of Literature
Bektas et al. (2011) analyzed Consumer awareness for food safety in Turkey. The
main objective of the study is to determine the level of consumer awareness about food safety
in Izmir, one of the biggest provinces in Turkey. They concluded that, increased awareness of
food safety pass through informative campaigns targeting especially low and middle income
groups and masses with low education levels, and through endeavours of improving the
levels of education and welfare.
Consumers do build opinion about a brand on the basis of which various product
features play an important role in decision making process. A large number of respondents
laid emphasis on quality and felt that price is an important factor while the others attached
importance to image of manufacturer.
2.5 Estimation of demand
Alderman (1987) attempted to estimate the demand for milk supplied by the
cooperative sector, taking into consideration the socio-economic status of the producers and
consumers. It was estimated the socio economic status of the producers and consumers. It
was estimated the average expenditure on milk by the sample consumers was 9 percent and
the elasticity was 0.0113. It was also observed that the demand for milk products, especially
ghee, yoghurt and butter, were rapidly increasing compared to that of milk.
Mergos and Donatos (1989) applied the “Almost Ideal Demand System” model for
annual food expenditure in Greece for the period from 1950-1986. The empirical results
showed that the milk had an income elasticity of 0.76, which was the highest. The demand
for milk, diary products and eggs was high and had a rather stable food budget share. Meat
had acquired a dominant position as indicated by its fourfold increase in quantity, but had low
price elasticity.
Durga and Murthy (1995) attempted to estimate demand for food in urban and rural
areas using NSS data. The popular “Almost Ideal Demand System” was used for this
purpose. Demand projections were made under than the two alternative income growth
scenarios for the period from 1988-89 to 1992-93. The two model variant was found to
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Review of literature
forecast the demand differently. It was concluded that the cereal consumption declined over
the years in urban India, signalling shift in consumers taste and preference away from cereals.
Selvaraj and Sundavaradarajan (1999) undertook a study of demand for and supply of
fruits and vegetables in Tamil Nadu, using time series data with the assumption of 1.30
percent growth in population for 2000 and based on minimum per capita requirement of
32.85 kg/year of fruits and 103.66 kg/year of vegetables. These were estimated at 20.40 lakh
tonnes, respectively for 2000 AD. Nearly 10.50 percent of annual production as waste due to
lack of preservation , one percent of annual production for processing, 20 percent for
postharvest losses and one percent for industrial processing were included in estimating the
total requirement. The study suggested that, increasing the possible area through wasteland
management for growing fruit trees and vegetables could arrest the low production. The
horticultural farms could be made to stabilize productivity through technological
breakthrough.
Paroda et al. (2000) projected household and domestic demand for food products
between the years 2000 and 2030 in different south Asian countries. It was observed that the
consumption of cereals would decline with the increasing share of fruits, vegetables, milk,
meat, eggs and fish in the diet. The household and domestic demand for food grains was
projected to grow by 1.2 percent, by 2030. In view of the vast agricultural potential remaining
under-realized, the study suggested production enhancing strategies.
Hermann et al. (2001) aimed at explaining theoretical aspects of pricing consumer
behaviour and to analyze them with reference to groups of breakfast products and results
indicated that, demand was greatest for products with a long storage life. It appears likely that
consumers bought some items only during special offer periods. He found there was very
strong consumer reaction to price changes for jams and breakfast cereals. An active pricing
policy, thus, represents a central marketing instrument in food retailing. This is consistent
with strong consumer reaction to price changes.
Banumathy and Hemameena (2015) in their study suggested that, the companies
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Review of literature
manufacturing soft drinks must manufacture high quality soft drinks in order to compete with
soft drinks of multinational companies (MNC). The MNCs can promote demand by effective
advertising, improving quality by keeping a check on the taste and price. They can adopt
innovative improvements in the production and marketing of soft drinks in order to compete
with the international brands. Study also revealed that there is no association between age,
education, occupation and choice of brands but there is association between monthly incomes
and brand preference and also there is close relationship between price and satisfaction level.
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CHAPTER III METHODOLOGY
3.1 Background
Present study was undertaken to know the consumption pattern towards ready to eat
food items, purchase behaviour of Ready to eat food products, brand preference of the
consumers and factors influencing brand preferences. This includes selection of the study
area, selection of respondents, sampling technique used for the collection of primary and
secondary data and statistical tools used for analyzing data with respect of objectives of
present study. These aspects have been described along with the relevant details.
3.2 Sample Selection
The total sample selected for the study were 50 respondents. In the first phase
Varanasi city is selected purposively. In the next phase, 50 samples were selected through
convenient sampling irrespective of age, education and income level.
3.3 Sample Selection Procedure
Since it is the survey of customer to obtain an unbiased result in customers sample
from population were interviewed on the basis of convenient sampling. Varanasi city was
selected for the purpose of research. Consumers are selected on the basis of convenient
sampling from different stores, bakeries and shopping malls.
The store and shopping malls from where data has been collected are listed in the next page -
Methodology
Page | 26
Table No. 3.1 : List of stores and shopping malls
S.No. Name of Stores / Shopping Malls Place No.of
respondents
Selected
1 Kashi Provisional Store Lanka , Varanasi 3
2 Mohan Lal and Sons General Store Lanka , Varanasi 3
3 Bhagwan Das General Store Lanka , Varanasi 2
4 Dhanuka General Store Bhagwanpur, Varanasi 2
5 Deepak General Store Bhagwanpur, Varanasi 2
6 Varista Bakery Lanka , Varanasi 2
7 Aroma Bakery Lanka , Varanasi 1
8 IP Vijaya Shopping Mall Bhelupur, Varanasi 7
9 Spencer’s Retail Shop Bhelupur, Varanasi 5
10 Bikanerwala Bhelupur, Varanasi 3
3.4 Collection of Data
To study the objectives, required data were collected from primary as well as
secondary sources. The data required for the study were collected from the respondents by
with the help of pre –structured questionnaire and schedule. The respondents were
interviewed at different stores, bakeries and shopping mall.
Primary Data
The data required for the study were collected from the respondents of BHU hostel
with the help of questionnaire. The respondents were interviewed at different retail outlets,
departmental stores and bakeries of the Varanasi City.
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Methodology
30 respondents were selected from different retail outlets, departmental stores and
bakeries in the city by process of convenient sampling.
20 respondents were selected from Triveni hostel of BHU purposively.
During the filling of questionnaires all the details were provided related to ready to eat
food items.
Secondary Data
The secondary data were collected from the internet, journals and research paper.
3.5 Analytical Tools Used
The data collected for the study were processed and analyzed by using statistical
techniques and Likert Scale.
Limitations
The study suffers from following limitations:
The biggest constraint for the preparation of this report was the time
constraint.
Sample size was small
Accuracy of data depends upon the willingness and ability of respondent.
Secondary data were available in scattered manner due to which problems arises in
summarization of data.
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CHAPTER IV DESCRIPTION OF STUDY AREA
4.1 History
Varanasi, also called Benares, Banaras, or Kashi, city, southeastern Uttar Pradesh
state, northern India. It is located on the left bank of the Ganges (Ganga) River and is one of
the seven sacred cities of Hinduism. The land of Varanasi (Kashi) has been the ultimate
pilgrimage spot for Hindus for ages. Often referred to as Benares, Varanasi is the oldest
living city in the world.
These few lines by Mark Twain say it all: "Benaras is older than history, older than
tradition, older even than legend and looks twice as old as all of them put together". Hindus
believe that one who is graced to die on the land of Varanasi would attain salvation and
freedom from the cycle of birth and re-birth. Abode of Lord Shiva and Parvati, the origins of
Varanasi are yet unknown. Ganges in Varanasi is believed to have the power to wash away
the sins of mortals.
Ganges is said to have its origins in the tresses of Lord Shiva and in Varanasi, it
expands to the mighty river that we know of. The city is a center of learning and civilization
for over 3000 years. With Sarnath, the place where Buddha preached his first sermon after
enlightenment, just 10 km away, Varanasi has been a symbol of Hindu renaissance.
Knowledge, philosophy, culture, devotion to Gods, Indian arts and crafts have all flourished
here for centuries. Also a pilgrimage place for Jains, Varanasi is believed to be the birthplace
of Parsvanath, the twenty-third Tirthankar.
With a number of temples, Mrs. Annie Besant chose Varanasi as the home for her
'Theosophical Society' and Pandit Madan Mohan Malviya, to institute 'Benares Hindu
University, the biggest University in Asia. Ayurveda is said to be originated at Varanasi and
is believed to be the basis of modern medical sciences such as Plastic surgery, Cataract and
Calculus operations. Maharshi Patanjali, the preceptor of Ayurveda and Yoga, was also
affiliated with Varanasi, the holy city. Varanasi is also famous for its trade and commerce,
especially for the finest silks and gold and silver brocades, since the early days.
Varanasi has also been a great center of learning for ages. Varanasi is associated with
promotion of spiritualism, mysticism, Sanskrit, yoga and Hindi language and honored authors
Page | 29
Description of Study Area
such as the ever-famous novelist Prem Chand and Tulsi Das, the famous saint-poet who
wrote Ram Charit Manas. Aptly called as the cultural capital of India, Varanasi has provided
the right platform for all cultural activities to flourish. Many exponents of dance and music
have come from Varanasi. Ravi Shankar, the internationally renowned Sitar maestro and
Ustad Bismillah Khan, (the famous Shehnai player) are all sons of the blessed city or have
lived here for major part of their lives.
4.2 Geography
Varanasi is located at an elevation of 80.71 metres (264.8 ft) in the centre of the
Ganges valley of North India, in the Eastern part of the state of Uttar Pradesh, along the left
crescent-shaped bank of the Ganges, averaging between 15 metres (50 ft) and 21 metres
(70 ft) above the river.
4.3 Climate
Varanasi experiences a humid subtropical climate with large variations between
summer and winter temperatures.The dry summer starts in April and lasts until June,
followed by the monsoon season from July to October. The temperature ranges between 22
and 46 °C in the summers. Winters in Varanasi see very large diurnal variations, with warm
days and downright cold nights.. The average annual rainfall is 1,110 mm (44 in).
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Description of Study Area
Source:-www.mapsofindia.com/maps/uttarpradesh/varanasi.htm
Page | 31
CHAPTER V RESULTS AND DISCUSSION
Data was collected from the Varanasi city. The collection of data were done by the
filling of Questionnaires and personal interview as well as on the basis of demographic
features.
The results of the study are presented under the following headlines.
5.1 To study the consumption pattern of ready to eat products in the study area.
5.2 To identify the factors influencing brand preference and purchase behaviour.
5.3 To analyse the response of consumers with respect to quality, price, variety,
packaging and freshness parameters.
5.4 To examine the influence of media to create brand awareness.
5.5 To study the alternative purchase plans for RTE foods.
5.1 THE CONSUMPTION PATTERN OF READY TO EAT (RTE) FOOD
PRODUCTS IN THE STUDY AREA
As per the requirement of the study and analysis, primary data collection was
conducted from the consumers in the Varanasi city. A questionnaire was prepared which was
filled during actual conversion with customers. The questionnaire was filled during actual
conversation with customers. The questionnaire was based on the consumer preference for
RTE foods. After the data were collected in specific format ,they were analyzed and
generated from the study.
The data which were gathered till then basically concern with certain issues with the
consumer preference towards RTE foods.
This survey and data generated thereof had given us some really interesting findings
regarding the consumer preference for RTE foods.
Page | 32
Results and Discussion
Table 5.1(a) : Consumer preference towards RTE food products
Total No. of respondents 50
No. Of respondents preferring RTE Foods 40 (80%)
No. of respondents not preferring RTE food 10 (20%)

Fig.5.1(a) reveals that 80 percent respondent liked RTE food products and 20 percent
respondents did not like RTE food products

Fig. 5.1(a) : Consumer preference towards RTE food products

SUMMARY AND CONCLUSION

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.
Ready meals are one of the fastest growing areas of the food market in developing, as
well as developed countries. “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”. Over time, change in consumer behaviour has lead to an increase in
demand of ready meals. These changes may be due to varying aspects in their life. The most
important amongst these are an increase in personal disposable income, consumer
expenditure, number of working women, and above all the increase of two or one person
households. These shifts in socio-economic trends provide consumers with an opportunity of
saving time in terms of cooking chores, and utilizing it in various other work or leisure
activities. Consumers are spending more time on shopping and less on preparing food. This is
because various factors such as a rise in productivity and wage rise, leave less free time and
put pressure on people to utilize their time for economic growth and with family, instead of
being in the kitchen.
In terms of target consumers, older or retired people are considered to be the growing
segment to be targeted. The next growing segment is the younger generation mainly working
and constituting of one or two person households.
The results show that changing lifestyle i.e. more stressful and hectic lives due to long
working hours is a significant contributing factor in the growth of ready meals sector. The
reasons provided by the respondents, mainly working women, were that they purchase ready
meals to avoid the hassles of cooking in their busy schedule. To conclude, with the changing
pattern of the consumers’ lifestyles, quick and easy to prepare food has become more of a
necessity than a luxury, hence making the ready meals industry one of the major sectors in
India.
Page | 48
Summary and Conclusion
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 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.
The specific objectives of the study were:
1. To study the consumption pattern of ready to eat products in the study area.
2. To identify the factors influencing brand preference and purchase behaviour.
3. To analyse the response of consumers with respect to quality, price , variety,
packaging and freshness parameters.
4. To examine the influence of media to create brand awareness.
5. To study the alternative purchase plans for RTE foods.
The study was carried out in the Varanasi city (U.P). 50 sample respondents were
selected randomly. Required data were collected from the respondents with the help
of pre- structured and pre- tested schedules through personal interview method. Data
were coded, tabulated, analysed and interpreted using suitable statistical techniques.
Findings of the study:
Most of the respondents preferred the RTE foods i.e. 80% respondents were aware of
RTE foods.
The frequency of RTE foods purchasing was generally 2to 4 times in a week,
therefore these findings were not occasionally consumed but frequently consumed,
Page | 49
Summary and Conclusion
which also shows the continuous demand of the RTE foods.
Most of the respondents preferred RTE foods to save time.
Most of the respondents purchased RTE food because maximum of the respondents
were fond of the taste of RTE foods.
Survey revealed most of the consumers of Varanasi city preferred RTE food to save
time and its convenient use as well as its easily availability.
On the basis of consumer preferences according to the given parameters in the
questionnaire, data were analyzed and the finding revealed most of the consumers
preferred RTE foods in Varanasi city because of suitably packaged, availability,
hygiene, and quality, advertisement of the product, reliability, price as well as
freshness and diversity.
On the basis of demographic survey higher respondents were under 26 to 35 age
group which comes under the younger generation.
During the survey most of the respondents were female and among them housewives
preferred more RTE foods as compared to others.
SUGGESTIONS
The current findings demonstrate that there is a huge potential in ready meals market
to grow further. The survey provided an opportunity to interact with the consumers’ of ready
meals and collect their viewpoint towards the important characteristics, which are missing.
This will help the sellers of ready meals to reap the benefits of selling ready meals by being
in growth stage for long. It has been noticed that most of the consumers’ have a positive
attitude towards ready meals and therefore it will be worthwhile to focus more on
recommendations or suggestions provided by them to stimulate consumers’ buying behavior
towards ready meals.
1. Price Reduction: It is noticed that ready meals is purchased by majority of students and
young generation living alone. Their need is to save time and if this is satisfied at affordable
price, the ready meal sector can overshadow the take-away joints thereby increasing their
target market. By doing this the companies can also give a tough competition to fresh food
market as the consumers’ willing to save time and a lesser price will definitely be attracted by
the ready meals provided the quality remains intact.
Page | 50
Summary and Conclusion
2. Increase availability: The major recommendation given or the Indian companies as the
consumers’ have taste and knowledge about Indian products but due to short in supply of
their products, the consumers’ are seen shifting to next best alternative.
3. Increase Indian food range/variety: lack of variety in ready meals is believed to be
another failure in attracting large number of customers towards ready meals purchase.
Although, Indian brands are working on it and providing the consumers’ with more variety,
they should therefore make it more easily available as suggested above.
4. Changes in the ingredient: the companies must reduce the salt and oil content in
various
ready meals due to being aware of various complications they can lead to. They also
suggested that along with no preservative food, ready meal companies may introduce the
range of ready meals, which are low fat also.
5. Increase the quantity: The respondents, who form a part of smaller households,
suggested increasing the quantity of food per packet, as various ready meals are not sufficient
for one person also.
6. Improve the taste: It is also suggested to improve the taste by making it taste more like
home cooked meals, as they rarely ever do. Therefore, in order to encourage potential Indian
consumers to buy ready meals, it is necessary to develop a strategic marketing plan by
considering the above behavioural information provided.
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Weblinks
www.indianngos.com/districts/varanasi
Wikipedia.org/wiki/Varanasi_district
www.nnvns.org
www.google.com
www.srinifoodpark.com
www.mapsofindia.com
www.rte.ie/lifestyle/food
APPENDIX
“CONSUMER PERCEPTION TOWARDS READY TO EAT FOOD PRODUCTS”
QUESTIONNAIRE FOR CONSUMERS
(The data will be used for research purpose only)
PERSONAL DETAILS
Name - ...........................................
Age - 15-25 26-35 36-45 46-above
Gender - Male Female
Occupation - Student Housewife Govt. Services
Business Owner Others
Education - College/University School Going Others
Marital Status - Married Single Others
Monthly Income(Rs.) - 15,000 and below 15,001-30,000
30,000-45,000 Above 45,000
CONSUMER PREFERENCES FOR RTE FOODS
1) Do you like RTE foods?
Yes No
2) Frequency of consumption of RTE foods in a week?
Daily 2-4 times More than 4 times Once in a week
3) On what occasions, do you often consume the RTE foods?
Feeling Hungry Without any reason (just like that)
Parties/ Celebrations To save time
4) What induces you to buy RTE foods?
Price with quantity Health Food Status symbol
Taste Variety Advertisement
5) Do advertisements affect your purchase?
Strongly agree Agree Undecided
Appendix
Disagree Strongly disagree
6) How do you rate RTE foods on Quality Basis?
Strongly agree Agree Undecided
Disagree Strongly disagree
7) How do you rate RTE foods on Low price Basis?
Strongly agree Agree Undecided
Disagree Strongly disagree
8) How do you rate RTE foods on Reliable brand basis?
Strongly agree Agree Undecided
Disagree Strongly disagree
9) How do you rate RTE foods on Attractive display of product basis?
Strongly agree Agree Undecided
Disagree Strongly disagree
10) How do you rate RTE foods on suitable packaging Basis?
Strongly agree Agree Undecided
Disagree Strongly disagree
11) How do you rate RTE foods on more hygienic food basis?
Strongly agree Agree Undecided
Disagree Strongly disagree
12) How do you rate RTE foods on Quality basis?
Strongly agree Agree Undecided
Disagree Strongly disagree
13) How do you rate RTE foods on Availability basis?
Strongly agree Agree Undecided
Disagree Strongly disagree
14) How do you rate RTE foods on freshness basis?
Strongly agree Agree Undecided
Disagree Strongly disagree
15) How do you rate RTE foods on highly advertisement basis?
Strongly agree Agree Undecided
Disagree Strongly disagree
Appendix
16) Reasons for purchasing Rte foods (Tick the suitable reason)
Easily Available
Taste
Liked by family members
Influenced by others
Convenient for use
Save time for preparation
Any other
17) Reasons for not purchasing RTE foods (Tick the suitable reason)
Lack of awareness of products available in the market
Dislike the product
High Price
Low quality
Not available in the shops
Health conscious
Any other
18) Source of information for brand awareness (Tick the answer)
Television
Radio
Newspaper
Magazine
Window display
Shopkeepers/ Retailers
Other
19) What are the alternative purchase plan if your preferred brand is not available? (Tick)
Go to other shop
Postpone the purchase
Will buy other brand
Place order to get required brand