Dissertation Report

On

STUDY ON “IMPACT OF CONVENIENCE/PACKAGED

FOODS ON CONSUMER BUYING BEHAVIOUR.”

In partial fulfillment of Master of Business Administration

UNDER THE ESTEEM GUIDANCE OF

Ms. GARIMA MALIK
Faculty ABS, AU
Noida

Presented By:
Ashish Bangia
A0101906063
MBA (G) – 2008

Date:
2nd May 2008

AMITY UNIVERSITY
-------- UTTAR PRADESH --------
AMITY BUSINESS SCHOOL – AU
Sector – 125, Noida, UP

1
 CERTIFICATE

“Impact of convenience/packaged foods on Consumer Buying

Behaviour” submitted by me for the Dissertation in ABS, AU is based
upon my own work carried out under the guidance of Ms. Garima Malik
and that neither this report nor any part of it has been copied from any
other report published anywhere public/elsewhere

This project report is prepared in partial fulfillment of MBA to be

awarded by Amity University, Uttar Pradesh.

To the best of my knowledge, this piece of work is original and no part of

this report has been submitted by the student to any other
Institute/University earlier.

……………………………… ….………………....
Countersign by Faculty Guide Candidate

Date: Date:

2
 ACKNOWLEDGEMENT

The Project Title Study on “Impact of convenience/packaged foods on

Consumer Buying Behaviour” has been conducted by me. I have
completed this project, based on the Primary research, under the guidance
of Ms. Garima Malik.

I owe enormous intellectual debt towards my guide Ms Garima Malik

who has augmented my knowledge in the field of Marketing and
Marketing Research. She has helped me learn about the process and
giving me a valuable insight into the convenience food and consumer
buying behaviour and pattern.

My increased spectrum of knowledge in this field is the result of her

constant supervision and direction that has helped me to absorb relevant
and high quality information.

I would like to thank Mr. Sanjeev Bansal for his guidance and enriching
my thoughts in this field from different perspectives.

I would like to thank all the respondents with out whose cooperation my
study would not have been possible.

Last but not the least, I feel indebted to all those persons and
organizations who have provided helped directly or indirectly in
successful completion of this study.

Date 2nd May 2008 Ashish Bangia

A0101906063

3
 EXECUTIVE SUMMARY

The objective of the project was to find the sales potential of Convenience/Packaged
foods in Faridabad region. Also to know which convenience food is preferred by the
consumers and the frequency of purchase of the convenience foods.

The following parameters were to be estimated:

• Determine the type of convenience foods preferred by the consumers.

• Identify the important and attractive attributes of convenience foods attracting
the customers.
• Determination of the frequency of purchase of convenience food by the
consumer.
• Identify the different groups of people among the population that regularly use
convenience food.

For this purpose a primary research and secondary research was conducted in the
region of Faridabad. The target consumers were of various ages –group, sex, monthly
income and occupation. The total field work was done for 15-20 days in which a total
sample size of 100 consumers was covered. The questions cover a wide range of
issues including:
• Identifying the types of convenience/packaged food preferred by a
consumer and whether he or she is happy with it.
• Determine how much and how quickly a consumer purchases the packaged
food.
• Analyzing the various information of the respondents related to Age,
Income, Profession, and even the expenditure.
• Analyzing the behavior towards convenience food of the respondents.

For the purpose of this research it was absolutely imperative to find out what the
consumers want from the packaged food. Finding out the consumer’s profile, i.e. his
age, monthly income, occupation and sex and also whether is she or he using the
packaged food or not currently was also necessary. This required getting a detailed
questionnaire filled by the concerned person. All the analysis in the report is drawn
out of these questionnaires. For carrying out the analysis further help was taken from
websites and journals.
4
 CONTENTS

Certificate from the Faculty Guide

Acknowledgment
Executive Summary

Chapter One – Introduction to Consumer Behaviour ………………………………….… 08

Chapter Two – Literature Review

2.1 Food’s History ……………………………………………………………. 12
2.2 Overview of Food Industry ………………………………………………. 13
2.3 Food Processing ………………………………………………………….... 15
2.4 Global Processed Food Industry ………………………………………..... 16
2.5 Indian Food processing Industry ………………………………………… 18
2.6 Food Retail in India…………………………………………………..…… 21
2.7 Convenience Food …………………………………………………………. 24
2.8 F&V based processed food ………………………………………………… 28
2.9 Present Status ………………………………………………………………. 29

Chapter Three - Objectives of the Project ………………………………………………….. 32

Chapter Four – Research Methodology

 Research Design ……………………………………………………………. 33
 Sample Size …………………………………………………………………. 34
 Research Tools & Questionnaire ………………………………………….. 35

Chapter Five – Analysis of Data …………………………………………………………….. 37

Chapter Six – Limitations ……………………………………………………………..……… 56

Chapter Seven – Conclusion …………………………………………………………..……… 58

Appendix

Bibliography

Questionnaire

5
 LIST OF TABLES
1. Global Trends in Food Processing
…………………………………………………………..17
2. Segments offering potential for Investment and growth
…………………………………… 17
3. Key Players in RTE Category
……………………………………………………………… 27
4. Fresh Packed F&V
………………………………………………………………………… 28

LIST OF FIGURES
1. Market Segmentation of Processed Food Industry
…………………………………………16
2. India’s Food Processing Industry
…………………………………………………………. 18
3. Segments of India’s food Processing Industry
……………………………………………. 19
4. Growth of Indian Retail
…………………………………………………………………… 21
5. Total Retail Market Size in India
……………………………………………………….… 21
6. Organized Retail Market Size in India
……………………………………………………. 22
7. Usage of Convenience food
………………………………………………………………. 37
8. Usage of types of Convenience Food
…………………………………………………….. 38
9. Purchase of Convenience food
…………………………………………………………… 39
10. Usage of ready to eat food
………………………………………………………………. 40
11. Usage of ready to cook food
……………………………………………………………… 41
6
12. Average monthly expenditure on convenience food
……………………………………….42
13. Reasons for using Convenience food
……………………………………………………. 43
14. Frequency of purchase of RTE
……………………………………………………………. 44
15. Frequency of purchase of RTC
……………………………………………………………. 45
16. Preference for convenience food
…………………………………………………………. 46
17. Reasons for non-preference of convenience food
………………………………………… 47
18. Reasons for preference of convenience food
……………………………………………… 48
19. Preference for convenience food among diff age groups
…………………………………. 49
20. Preference for convenience food among diff professions
………………………………… 50
21. Preference for convenience food among diff income groups
…………………………….. 51
22. Expenses incurred for convenience food
…………………………………………………. 52
23. Single outlet preference
…………………………………………………………………… 53
24. Factors responsible for outlet selection
…………………………………………………… 54

7
 INTRODUCTION

1.1 CONSUMER BEHAVIOUR –

AN INTRODUCTION1

The most unique feature of the Indian market which differentiates it from the rest of
the world is the cultural diversity and variety found here. The lifestyle of people
1
Biyani, Kishore and Baishya, Dipayan, “It Happened in India – The story of Pantaloons, Big
Bazaar, Central and the great Indian consumer”, Published by Rupa & Co., 2007, pp 17.

8
living here changes every hundreds of kilometers. It is the addition to the dimensions
of Indian consumer market.

The behaviour of consumers is influenced by a heap of emotions and thoughts. It is

very difficult to draw a strong reason for the difference between “What the consumers
SAY?” and “What the consumers ACTUALLY DO?” Why there exists a difference
between these two it is hard to find out. Only the conclusions can be drawn on the
basis of assumptions.

Also, the youngest population profile is in India. There are a lot of young people in
different income segment and locations, which are influencing their parent’s spending
and spend their own money as well.

CONSUMER BUYING BEHAVIOR IS THE BUYING

BEHAVIOR OF THE ULTIMATE CONSUMER.

1.2 STAGES OF THE CONSUMER

BUYING PROCESS

9
1.3 CATEGORIES OF CONSUMERS 2

2
Kotler, Philip “Marketing Management – Analysis, Planning, Implementation and Control”,
9th Edition, Published by Prentice-Hall India, 1998, pp 190

10
 Buyer – A buyer is a person who approaches the seller and purchases the product or
service required. The buyer may or may not be a consumer of that particular product or
service.

 Influencer – The influencer is a person who influences the buying decision. He or

she is a person whose view or advice influences the decision. The influencer may be a
buyer or a consumer or a decision-maker.

 Decision-maker – The decision maker is the person who decides what to purchase,
when to purchase and how to purchase. He or she may be a buyer, influencer as well as a
consumer. Generally, for purchase of day to day items needed for cooking at home, the
housewives decide on their own. Here she acts as a decision-maker, buyer, influencer as
well as the consumer. Her decision may or may not be influenced by her past experience,
servants at home, preferences of family, advertisement, etc.

 Consumer – A consumer is the person who finally uses or consumes the goods or
services purchased.

11
 LITERATURE
REVIEW

2.1 Food’s History3

The genesis of Indian Cuisine lies with the ancient Indian civilizations of Harappa and
Mohenjodaro. The huge granaries were used to store grain, houses with a drainage
system, pathways or roads and public baths. The seed of Ayurveda, or Life Sciences,
which is the foundation of Indian cuisine, was sowed. After studying the physical
3
http://indianfood.indianetzone.com/1/history.htm
12
needs, mental needs and needs of our psychology and spirituality the system was
derived

The invasion of the Aryans who came from Europe or Asia Minor pushed the people
of Mohenjodaro and harrapa to the South part of India. The origination of Aryans is
not very clear and was to be found in Europe, Persia and India. The Ayurveda was
further developed by Aryans. There were many texts written in the Aryan Period.

The Growth of Vegetarianism

The Harappans probably ate mainly wheat

and rice and lentils, and occasionally
cows, pigs, sheep, goats, and chicken.
From Thailand rice and chicken came and
from West Asia wheat and sheep came.
The stews and soups were made of wheat
and also the chapatis were formed. The
Indian eating habits was not changed by
the arrival of the Aryans.

Hindus stopped eating beef in Gupta

period, around 650 AD as Hindus began
worshipping cows as a Mother Goddess.

Most people in India stopped eating pork

as well around 1100 AD in northern India, because it is forbidden by the Koran. The
vegetarism grew in the Hindus.
The yogurt, sauce and flatbread were being mostly eaten by the Indians. Or rice, with
yogurt and vegetables were eaten. At that time spicy pepper in India was grown full-
fledged.

2.2 Food Industry – A Brief Overview

13
Food industry is not a formally defined term; however, it is usually used in a broadly
inclusive way to cover all aspects of food production and sale. The Food Standards
Agency, a government body in the UK, describes it thus:
"...the whole food industry – from farming and food production, packaging
and distribution, to retail and catering."4

The Economic Research Service of the USDA5 uses the term food system to describe
the same thing:
"The U.S. food system is a complex network of farmers and the industries that
link to them. Those links include makers of farm equipment and chemicals as
well as firms that provide services to agribusinesses, such as providers of
transportation and financial services. The system also includes the food
marketing industries that link farms to consumers, and which include food and
fiber processors, wholesalers, retailers, and foodservice establishments.

INTRODUCTION

The food industry involves the commercial movement of food from field to fork.
After a long evolution the modern food industry has comea Traditionally, over
thousands of years, food production was centered around two activities:

1. Labor-intensive agricultural activities, the farming of grain,

produce and livestock;

4
http://www.food.gov.uk/
5
http://www.ers.usda.gov/Browse/FoodSector/
14
 2. Personal food preparation, where individuals and families
acquire raw and minimally processed ingredients, and prepare them for
their own consumption.

The farming was the only business at that time and many people get involved in it.
The modern food industry is dependent on technology, particularly on mechanization
and biochemistry, than on human and animal labor. The food industry has been the
result of manipulation, preservation of the food. The food and the related sources
travels the great distance. Also the fragmentation of the point where food is gathered
has also been done. This causes the assembly of the food for the consumption
purposes.

The technology, transportation, management and logistics for physical fulfillment,

and on marketing and government regulation for maintaining an efficient consumer
market is needed to maintain the food industry. A wide range of businesses and
individuals are employed by and profit from all aspects of this huge and complex
system. Also without the help of governmental regulation and administration this
continual flow of materials, food products, and related information can’t be achieved.

2.3 Food Processing

History6
Food processing dates back to the prehistoric ages when crude processing
incorporated slaughtering, fermenting, sun drying, preserving with salt, and various
types of cooking (such as roasting, smoking, steaming, and oven baking). Salt-
preservation was especially common for foods that constituted warrior and sailors'

6
http://en.wikipedia.org/wiki/Processed_food
15
diets, up until the introduction of canning methods. These crude processing
techniques remained essentially the same until the advent of the industrial revolution.

Preserved food
Modern food processing technology in the 19th and 20th century was largely
developed to serve military needs. In 1809 Nicolas Appert invented a vacuum bottling
technique that would supply food for French troops, and this contributed to the
development of tinning and then canning by Peter Durand in 1810. Although initially
expensive and somewhat hazardous due to the lead used in cans, canned goods would
later become a staple around the world. Pasteurization, discovered by Louis Pasteur in
1862, was a significant advance in ensuring the micro-biological safety of food.

In the 20th century, World War II, the space race and the rising consumer society in
developed countries (including the United States) contributed to the growth of food
processing with such advances as spray drying, juice concentrates, freeze drying and
the introduction of artificial sweeteners, colorants, and preservatives such as sodium
benzoate and saccharine. The products such as dried instant soups, reconstituted fruits
and juices, and self cooking meals were developed in the late 20th century.

The working class and mothers were targetted by the marketers at this point of time.
The convenience food usage was high on demand. The success in sales of juice
concentrates and Swanson's "TV dinners" were found in frozen vegetables. After the
post war, population favoured the processors and this appeal contributes to the
success of convenience foods today.7

2.4 Global Processed Food Industry8

7
Levenstein, H, “Paradox of Plenty”, University of California, 2003, pp 106-107
8
“Processed Food & Agribusiness”, Opportunities for Investment in India, a Knowledge
Paper, by KPMG & FICCI, 2007
16
The shape of the global food industry is constantly changing and evolving thereby
reinforcing the key themes of health, convenience and value. The global processed
food industry is estimated to be valued around EUR 2.5 trillion and accounts for
three-fourth of the global food sales. Despite the large size of the industry, only 6
percent of processed foods are traded across borders compared to 16 percent of major
bulk agricultural commodities. The U.S., EU and Japan together account for over 60
percent of total retail processed food sales in the world.

Trade liberalization policies through multi-lateral and regional trade agreements have
led to a rapid growth in this field. In the Asian region Japan is the largest food
processing market, but India as well as China are likely to grow at a faster rate. Japan
and South Korea, are the leading meat importing countries in the world and
consumption of meat is high in these countries. The most technically advanced
processed food industry is of Australia in the world as it produces products of
international standards at comparatively lower prices. U.S. is called as the
“breadbasket to the world”. The additional revenues come from the foreign land for
more than one-third of U.S. Food & beverage (F&B) Manufacturers. Countries in the
Sub-Sahara African region, Latin America and parts of Asia continue to be on the
lower-end of technology prowess in food items are inclined to their staple diets,
whereas, those in Europe, North America, and Japan are on the higher-end of
technology, with a sharper shift towards convenience and diet foods.

Global Trends in Food Processing

17
These trends have created immense opportunities for both manufacturers and retailers.
The consumer's requirement for healthy and convenient products must be addressed
and fulfilled. The global food market has become more competitive and all are
looking to grow beyond their own local market.9 Also consumer is willing to pay
more for the quality products.

2.5 Indian Processed Food Industry

9
“What’s Hot around the Globe in F&B 2006”, Survey by AC Nielsen
18
With rapidly rising per capita income levels and renewed corporate interest in the
organised retail market, the Indian food industry looks set for a big leap. From an
estimated size of US$ 200 billion, this industry is likely to grow to over US$ 310
billion by 2015, estimates the Confederation of Indian Industry (CII)10.

India is endowed with a large production base for a variety of raw materials covering
food crops, commercial crops and fibres due to its varied agro-climatic conditions. In
fact, this has helped India become the largest producer of a host of agricultural crops.
After China, India’s the second largest producer of food. It is also the world's largest
producer of cereals and milk, second largest producer of rice, wheat, sugar, fruit and
vegetables and inland fish and third largest producer of cotton and seventh largest
producer of fish (which includes both inland and marine fish production).

Despite its raw material base, India accounts for only 1.5 per cent of the international
food trade. There is a huge potential existing for both investors and exporters in this
sector. 11

Food Processing

10
http://www.ciionline.org/
11
“Food Processing”, a knowledge paper by IBEF, Oct 2007
19
The food processing industry is a dominant segment of the food industry with a 32 per
cent share. While India has abundant food supply, the processed food industry is still
in its nascent stages--only 2 per cent of fruits and vegetables and 15 per cent of milk
is processed. It is composed of six key segments12

All the key segments offer potential for investment and growth13

Despite this, the food processing industry ranks fifth in size, contributing 6.3 per cent
to GDP, 19 per cent to India's industrial force and 13 per cent to exports. Processed

12
“Food Processing”, a knowledge paper by IBEF, Oct 2007
13
“Food Processing”, a knowledge paper by IBEF, Oct 2007
20
food exports have, in fact, increased from US$ 6.98 billion in 2002-03 to US$ 20.51
billion in 2006-07, recording a whopping 193.83 per cent growth rate.

To realize India's potential in this industry, the Government has set an investment
target of US$ 25.07 billion by 2015 to double India's share in global food trade from
1.6 per cent to 3 per cent, increase processing of perishable food from 6 per cent to 20
per cent and value addition from 20 per cent to 35 per cent.

The food processing industry, which has been growing at 7 per cent, is likely to
register a growth rate of over 10 per cent in the near future, on the back of a step-up in
investments and increase in consumer demand.

Indian Food Brands go Abroad

While many foreign companies are coming into India lured by the huge expanding
domestic market, many Indian brands have begun finding prime shelf-space in the
retail chains of the US and Europe. These include Cobra Beer, Bikanervala Foods,
MTR Foods' ready-to-eat food stuff, ITC's Kitchens of India and Satnam Overseas'
Basmati rice.

Simultaneously, domestic players in the food industry are also acquiring companies
abroad. For example, Tata Tea has acquired two Polish tea brands Vitax and Flosana
from Premium Foods SA, and UB Group has acquired Glasgow-based Scotch giant
Whyte & Mackay.14

2.6 Food Retail in India

Indian retail is gradually inching its way toward becoming the next boom industry. Over time
it has emerged as one of the most dynamic and fast paced industries. Retail industry is

14
http://www.ibef.org/industry/foodindustry.aspx
21
growing at a rate of 5% with total revenues of USD 321 billion and is expected to be worth
USD 637 billion by 2015 with a growth rate of 7-8%.

The Total Retail market size in India at the end of 2007 was Rs 12,781 bn15. Food
and Beverage constituted a whopping 74% of the market followed by clothing and
textiles at 9%.

The organized retail market breakup is as shown below. Clothing and Textile has the
largest pie of organized retail market since Grocery [Reliance Fresh etc] are facing

15
http://www.omretail.com/india/2008/02/total-market-size-2007.html
22
protests on opening new outlets in the backward states of India such as Uttar Pradesh,
Orissa, Bihar etc.

Retailing in India accounts for 10% of its GDP and around 8% of the employment. Food
retail in India accounts for around 65% of the total retail and is characterised by the sheer
dominance of a large number of small unorganized retailers. Organised food retailing is still
at its infancy stage, having a share of less than 1% of total food retail market in India. Indian
food retail market is estimated to be worth USD 210 billion with organised food retailing
being USD 1.5-2 billion.

Despite the fact that food is the largest category in the consumer’s spending basket, with a
share of around 50%, organized food retailing is faced with certain limiting factors like lack
of industry status, capital constraints, high tax rates, highly fragmented supply chain,
restrictive land laws and lack of infrastructure.

For long, Indian consumers have been deprived of quality food products, wide variety and
value added service at the retail front because of the highly fragmented nature of food

23
retailing. Organised food retailing has the potential to bridge this gap. This represents a great
opportunity for the growth of organised food retail in India.

Organised food retail in India, which has been growing at a rate of 25%, is expected to
witness a growth rate of 30-35% in the coming 5 years. Indian food retail is witnessing a
swing from being unorganised to organised due to factors like increased disposable incomes,
increase in double income nuclear families, burgeoning middle class, increased urbanization,
increased quality consciousness, availability of quality retail space and greater need for
convenience among consumers.

Food and grocery retail in India is highly unorganized with around 6.5 million mom & pop
stores and the presence of only a few national food retail chains. Most of the current leading
retail chains are present predominantly in particular regions, like Subhiksha, Food World,
Nilgiri’s and Margin Free which are concentrated in South India. Indian organized food retail
has been characterised by the presence of regional players.

Organized food retailing is a sunrise industry with a bright future, as is evident from the fact
that a large number of big corporates are making their entry into the sector with huge
investments. Large international retailers like Wal-Mart, Carrefour and Tesco are vying for a
share of the large Indian retail sector pie.

24
2.7 Convenience Food

Convenience food16, or tertiary processed food, is commercially prepared food

designed for ease of consumption. The convenience foods are often preprepared food
stuffs that can be sold as hot, ready-to-eat dishes; as room temperature, shelf-stable
products; or as refrigerated or frozen products that require minimal preparation,
typically just heating, by the consumer.

These products often are sold in portion

controlled, single serve packaging
designed for portability for "on-the-go" or
later eating. Convenience food can include
products such as candy; beverages such as
sodas, juices and milk; fast food; nuts,
fruits and vegetables in fresh or preserved
states; processed meats and cheeses; and
canned products such as soups and pasta
dishes.

Ready to Use

First a little about what we mean by

'Ready To Use' goods. Just take a look
around and you will find so many
packets of biscuits, of potato chips, all
around you. These are not prepared
freshly. These come in packages with
manufacturing dates, and dates of
expiry written on them. These are

16
http://en.wikipedia.org/wiki/Convenience_food
25
produced at factories, packaged, transported by road, air, and sea, before reaching
your shelf. For example, right now you may munching on a set of cookies made in
Italy! Just check the packet or tin, you will be amazed.

'Ready To Use' goods is not simply restricted to biscuits and potato chips, from baby
food to health drinks made for adults, say protein shakes. These are the categories of
ready to use food. Even the cup noodles that one eats, all one have to do is pour a
measured quantity of warm water, wait for a few minutes, and the noodles are ready!

'Ready To Use' also comes under the category of

garments. It is called ready made garment store.
All is have to be done is go to a retail outlet, get
the size that fits and buy it. The trouble that one
take of buying garment material, going to a tailor,
giving your measurements, and waiting for the
dress may be avoided.

'Ready To Use' also refers to the world of furnitures. One has furnitures that need to
be assembled, and put to use. One need not to go to the furniture store to order for a
bed. All one has to do is, order for one, the packages are sent to it. People from the
furniture store will come to house, and assemble the furniture.

'Ready To Use' articles and packages have

made the world simpler. A lot of time and
energy can be saved. Imagine going from
one furniture store to another, and setting
up the bedroom. As opposed to this, 'Ready
To Use' articles are a boon for people who
do not have much time from work.

26
Ready-to-eat food

A growing number of nuclear families, rising

household incomes, increased urbanisation and a
significant rise in the number of working women
have led to a rise in the demand for ready-to-eat
food17. The rising income levels and changing
consumer tastes can cause this segment to
increase rapidly in market size.

According to a study by Tata Strategic Management

Group18, the Indian RTE market is estimated to
grow to US$ 727.09 million by 2015 from the
current level of US$ 32.09 million. Some major
players in the ready to eat market are ITC Foods,
MTR Foods, Kohinoor, Amul, Rajbhog Foods,
Ethnic Kitchens and Tasty Bite.

17
http://www.garamchai.com/ReadyToEat.htm
18
http://tsmg.com/ind_retail/
27
 Major Key Players in RTE Category19

“Report on Food Industry in India”, by Indo Italian Chamber of Commerce & Industry ,
19

Nov 2006
28
29
2.8 Fruits & Vegetable (F&V) Based processed food

Fresh packed F&V, primarily an export led business, is a large industry in India, and
is growing rapidly. India exported about 1.45 million tonnes (INR 16.6 bn) of fresh

30
F&V in 2005-06220. Export of these products has been growing at a CAGR of over
13% during the last 5 years. However, these volumes are insignificant, at less than 1%
of total production. The proportion of graded, packed F&V has been increased. The
focus on specific varieties for different markets has increased – in the past, exports
were primarily targeted at the Indian ethnic population while now, Indian exports
compete with other global suppliers across markets to cater to a broader spectrum of
world demand.

The Indian consumer’s preference for preparation of F&V based foods at home
continues, although there is gradual acceptance of processed foods. A continuation of
this trend is expected in the next ten years, which implies significantly higher growth
potential for fresh packed F&V as opposed to processed F&V.

The F&V based processed food sector is very small industry. Historically many F&V
based products were reserved for the small scale Industry by Government Legislation.
The limitations have now been lifted for most products. A significant proportion of
F&V units are still housed in the small scale sector. The single largest issue with the
processing sector is the lack of scale in most units, which in turn is linked to absence
of backward and forward linkages, low adherence to quality standards and inability to
invest in market development.

2.9 Present Status of Packaged Food Industry - India

Strong double-digit growth for packaged food value sales

Packaged food retail value sales growth of 15% in 2007 was the fastest India had
witnessed over a nine-year period. India ranked second behind Indonesia as the fastest
growing packaged food market in Asia Pacific in 2007 as Indian consumers earned
more and also spent more on packaged food products in this year. The strong retail
volume growth that accompanied the value sales increase for most packaged food
products was a reflection of growing consumer confidence underpinned by a booming
economy and a growing desire for convenience.

Price increases but no complaints from consumers

“Strengthening the India-Australia corridor in select Food & Agribusiness sectors”, by
20

Rabo India Finance Ltd, June 2007

31
In addition to robust retail volume sales of almost all packaged food products, retail
value growth was aided by increased average unit prices particularly of milk which
had a ripple effect across most other packaged food products. There was, however,
considerable variation in price increases, with staples such as fresh milk increasing by
almost 17% in 2007 while average prices of bakery products increased by just 2%.
Rising affluence and increasing affordability amongst Indian consumers meant that
most manufacturers felt that the time was right to pass on the price increase to
consumers rather than to absorb it. Fortunately for manufacturers there was no major
consumer backlash following the price increase.

GCMMF leads and improves market share

Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) extended its market
leadership in packaged food in 2006. Thanks mainly to geographical expansion
particularly of sales of fresh milk over the 2002-2006 period, GCMMF saw its retail
value sales more than double over the five-year period. Among the top 10 packaged
food manufacturers in India, 2006 was an especially good year for dairy producers
such as GCMMF, Mother Dairy Fruit & Vegetable Ltd, Nestlé India Ltd, Karnataka
Cooperative Milk Producers Federation Ltd and Tamil Nadu Cooperative Milk
Producers Federation Ltd all of which witnessed strong double-digit value sales
growth.

Independent grocers lose out as consumers turn to modern retail

formats

The acceleration of retail expansion by players such as Pantaloon Retail India Ltd and
the entry of new players such as Reliance Industries Ltd are resulting in changes in
the way packaged food products are sold in India. Independent grocers have been
slowly losing share of packaged food sales as modern retail formats such as
supermarkets/hypermarkets and convenience stores have been gaining at their
expense. This has led to most packaged food players having to revamp their
distribution strategies with some players setting up dedicated distribution operations
to specifically serve the new channels. That said, with close to nine million
independent grocers in India in 2007, this remains the largest and most important
channel for packaged food sales.

32
Opportunities galore as forecast growth to remain robust

With India having the lowest per capita expenditure on packaged food in Asia Pacific,
at just over US$11 in 2007, there remain plenty of opportunities for the market to
grow and expand over the 2007-2012 forecast period. Packaged food sales in India are
expected to grow at a CAGR of just over 8% over the forecast period. Most product
sectors are forecast to enjoy robust growth, with ice cream leading the way with a
forecast CAGR of almost 18% in retail volume terms. Although more multinationals
are expected to enter the country, domestic players, given their strengths in sourcing
and regional distribution, are expected to continue to provide strong competition to
multinationals over the forecast period. That said, low per capita consumption
combined with growing affluence and affordability mean that there should be plenty
of opportunities for all players to grow.

OBJECTIVES

33
 OBJECTIVES OF THE PROJECT

1) Identification of convenience foods currently being used in

significant amount.

2) Identification of those groups of people among the population that

regularly use convenience foods and the amount in which these
foods are used.

3) Examination of possible reason for preference towards use of these

foods

4) Examination of possible reasons for preference towards a specific

type of outlet.

34
 5) Examining whether the convenience food if preferred over Home-
made food or not.

METHODOLOGY

1. RESEARCH DESIGN : DESCRIPTIVE

2. RESEARCH PLAN :

a. Data Source – Primary Data

Secondary Data

b. Research Approach – Survey Research

c. Research Instrument – Questionnaire

d. Sampling Plan :

 Sampling – Non Probability Sampling

o Convenience Sampling
35
 o Judgment Sampling
o Quota Sampling

 Sampling Unit – 100

e. Contact Method – Personal Interview

f. Region :
 Faridabad

METHODOLOGY
1. RESEARCH DESIGN:

Research design is the layout of the research process. The research design selected
for the project is Descriptive in nature. Descriptive research pertains to describe particular
marketing problems and/or situations currently prevailing. Hence, the aim of the project here
is to determine the prevailing trends in the convenience/packaged food market. Therefore,
Descriptive Research Design is opted to study in depth the perception regarding the packaged
foods in the minds of the consumers.

2. RESEARCH PLAN:

Research plan lays out the plan for how to go about the process. It included the
following steps for project completion –

A. Data Source :

a. Primary Data – The information for the project was collected first hand by
conducting a survey regarding the consumer perception for the convenience/packaged
foods.
b. Secondary Data – The details regarding the Indian food market and the consumer
behaviour was collected second hand with the help of books and internet.

36
 B. Research Approach :

Survey Approach – A survey was conducted in the Faridabad region. For this
purpose a questionnaire containing 14 questions was prepared. The respondents were
surveyed in the markets of the region and intercepted in between.

C. Research Instrument:

For the purpose of obtaining the first hand information, a questionnaire was
prepared and the respondents were asked to fill up the questionnaire. The questionnaire
proved to be the most useful instrument besides observation too. Valuable information
was being collected on the basis of the questionnaire only.

D. Sampling Plan:

a) Non-Probability Sampling –

i. Convenience Sampling – The respondents were approached in the place where it

was near the residential areas and busy markets where crowds gather easily.

ii. Judgment Sampling - The respondents were selected on the basis of those who were
most easily approachable and had good prospects of giving true information.

b) Sampling Unit –

i. Individuals – Total 100 individuals were interviewed in the region. The females
were interviewed mostly.

Hence, total sample size of 100 was taken.

E. Contact Method:

The respondents were interviewed personally by intercepting them at various places

like market, houses, supermarkets, etc.

F. Region:

37
 a) Faridabad – In Faridabad region, the following areas were covered under the
survey.
i. Sector – 7 (Houses)
ii. Sector – 7 (Market Area)
iii. Sector – 9 (Market Area)
iv. Sector – 10 (Market Area)

DATA
ANALYSIS

38
5.1 Usage of Convenience/packaged foods

39
 Usage of Convenience Food
No. of Respodents

120
100
100
80
60
40
20
0
0
Yes No

The respondents were asked whether they use the convenience/packaged food or not
and it was not a surprise that all the respondents were using the packaged foods.

There were some of the respondents who did say that they are not using the
convenience food at all so they haven’t been taken into account.

As the users responses will be considered and their opinion forms the basis of the
project hence the non-users are excluded from this.

40
5.2 Usage of types of Convenience/Packaged food

Usage of types of Convenience Food

101
100
100
No. of Respondents

99

98

97
96
96

95

94
Ready to Eat Ready to Cook

Types of Convenience food

The respondents were then asked to respond which type of convenience food they use
either Ready to eat or Ready to cook.

100% of the respondents surveyed were using ready to eat food while only 96% of the
respondents said that they use ready to cook packaged food.

This clearly shows that the Ready to eat food is being preferred over the ready to cook
food by the respondents.

The 4% of the respondents not using the ready to cook food were among the lower
middle income group and said that due to expensiveness they don’t use Ready to cook
food.

41
5.3 Purchase of Convenience food

Purchase of Convenience Food

90
80
80
70
No. of Respondents

60
50
40
29
30
20
10
0
0
Kirana Store Supermarkets Wholesaler

Types of Stores

The respondents were then asked from where they usually buy the
convenience/packaged foods.

The 80 respondents out of 100 said that they buy the packaged foods from the Kirana
Stores while only 29 respondents said that they purchase from the supermarkets.

There are respondents who purchases convenience food from both the stores i.e.
Kirana store as well from the Supermarkets.

70% of the respondents buy exclusively from the Kirana Stores while only 20% of the
respondents purchase their convenience food from the Supermarkets only.

While only 10% of the total respondents buy from both the stores.

42
5.4 Usage of Ready to Eat Convenience Food

U sag e of R ead y to E at C o n ven ien ce foo d

120
10 0 98 97
100 92
82
80
No. of Respondents

67
60
42
37
40

20

0
d

les
ts
ea

s
ps
e
ui

od
c

ke
es

ck
Br

au
sc

hi

la
Fo
he

Pi
/C

/S
Bi

-F
r/ C

rs

ld
ms

rn
afe

Co
tte

Ja

-H
W
Bu

nd
Ha

T yp e s o f R e a d y to Ea t fo o d

From the figure it is clear that:

1. Bread is the most commonly used Ready to Eat convenience food.

2. Biscuits are the second most ready to eat food used by the respondents
surveyed.
3. The Butter/cheese has been in the third position in the usage followed
by Wafers/Chips and Jams/Sauces.
4. Corn-flakes being least used Ready to Eat product among the
respondents surveyed.

Bread and butter being the necessity are used by all the persons surveyed and corn
flakes are being used by the upper middle class group.

43
 100% of the respondents agreed that Bread, Butter, Biscuits have high penetration as
compared to other Ready to eat foods.

Whereas Hand-held foods are still being used occasionally only.

5.5 Usage of Ready to Cook Convenience food

Usage of Ready to Cook Food

100 92
90
80
70
No. of Respondents

59
60

50 42
39
40 36

30
20 12
10
0
Instant Noodles Pre-Cooked Food Ready-Mix Soups Frozen Vegetables Ready-Mix for Ready-Mix Idlis
Curry

Re a dy to Cook food

From the above figure it is clear that Instant Noodles being used by all the
respondents. Over 90% of the respondents surveyed use the Noodles

Nearly 50% of the total respondents use pre-cooked food followed by ready- Mix
Soups.

Nearly 35% of the respondents use Frozen Vegetables and the same percentage of
people use Ready- Mix for curry.

Ready Mix Idlis is being least used by the respondents. Around 10% of the
respondents use it.

44
5.6 Average Monthly Expenditure on Convenience food.

Avg Monthly Expenditure on Convenience food

70
60
No. of Respondents

60
50
40
28
30
20 12
10
0 0
0
Below 100 100-500 500-1000 1000-1500 More than 1500

Amt (Rs)

The respondents were asked that how much amount they spend on convenience food
monthly.

60% of the respondents spend between Rs 100 to Rs 500 monthly while only 12%
respondents spend less than Rs 100 on convenience food monthly.

The respondents spending between Rs 500-Rs1000 on convenience food on monthly

basis constitutes only 28%.

There were none respondent who spend more than Rs. 1000 on convenience food.

45
 5.7 Reasons for using Convenience/Packaged foods.

R e a s o n s fo r u s in g C o n v e n ie n c e fo o d
100 93
88
90
78
80

70 64
58
60
No. of Respondents

50 47
38
40
29
30

20

10

0
S a v e s T im e U se fu l in S i m p l e to U se fu l fo r T a ste s G o oCd h i l d r e n L i k eD oi tn 't H a v e Htoy g e i n e fa c to r
E m e r g e n c y p r e p a r e u n e x p e c te d S to r e
G u e sts

R e asons

The respondents were asked to give reasons as to why they use the convenience food.

Saves Time reason tops the chart and which is being followed by useful in Emergency
reason. This is due to the fact that convenience foods are ready to eat food.

The other reason which most of the respondents gave was that it is simple to prepare,
even a novice can cook and feed other persons.

46
The surprising reason was given by the parents that they buy the convenience food
because of their children. Children like it factor was responsible for the purchase of
the food by the parents.

The other reasons like don’t have to store and hygiene factor were taken back steps
and were least taken care of before the purchase of packaged foods.

5.8 Frequency of Purchase of Ready to eat food

Frequency of Purchase
120

100

80
No. of Respondents

60

40

20

0
Biscuits Wafer/Chips Bread Butter Corn-Flakes Pickles Jams/Sauce

Everyday Once a week Once a fortnight Once a month 2-3 times a month

The respondents were asked to tell the frequency at which they purchase the Ready to
eat food.

With no surprises at all, Biscuits and wafers are bought as impulse purchase and for
stock purposes as well.

While Butter being purchased almost once a fortnight by maximum no. of the
respondents.

47
Other Ready to eat food items like Pickles and Jams are bought once a month as the
consumption period to these kinds of food items is long and spread across the time
period.

5.9 Frequency of Purchase of Ready to Cook Food Items

Frequency of Purchase
120

100

80
No. of Respondents

60

40

20

0
In stan t Noo d le s F ro ze n Re ad y M ix Id lis So u p s Re ad y M ix
Ve g e tab le s Cu rre ys

E veryday Once a Week Once a Fortnight Once a Month 2-3 times a month

The respondents were asked to inform about the frequency of purchase of Ready to
cook food items.

It is clearly been shown from the above figure that instant noodles being regularly
purchased by the respondents and clearly enjoys the highest amount of penetration
among the users.

48
The other ready to cook food items which enjoys the good penetration among users is
Frozen Vegetables as these are being purchased regularly and these are also stored as
inventory for the emergency time and for unexpected guests as well.

Other ready to cook food items enjoys the penetration among the users but have low
consumption value.

5.10 Preference for Convenience food

Preference for Convenience food

30%
Yes

No

70%

The respondents were asked whether they think that convenience food is better than
home made food.

Exactly 70% of the total respondents were in favour of the home made food as against
30% of the respondents.

There were different reasons to it as to why they prefer home made food or why they
prefer convenience food.
49
 5.11 Non- Preference for Convenience food.

Reasons for Non Preference

80
70
70

60
No. of Respondents

50
50

40
31
30
20
20
8
10

0
Expensive Don't Provide Ful High Fat Contents Fat Quality may High Salt Contents
Meal not be good

Reasons

It is clear from the above graph that:

The most common reason for non-preference of convenience food is being the
expensive nature of the food items.

Only a certain group or class in the society can actually afford it on a regular basis.

50
 The others considers that packaged food don’t provide a full meal and it’s not an
alternative to home made food. The nutrients and the necessity ingredients is lacked in
convenience food.

Some of the respondents feel that convenience food is bad for health as it contains
high fat contents and that fat quality may not be good as well. So it may not good for
health and on health grounds they don’t prefer convenience food.

Respondents also inform that they prefer convenience food once in a blue moon or at
special occasion but not regularly.

5.12 Preference for Convenience food

Re as o n s F o r P re fere n ce
35
30
30 28
24
25 22 21
No. Of Respondents

19
20
14
15

10

0
S aves T im e S im p le to T astes Go o dD o n 't h ave Qu ality V ariety H y g ein e
P re p are to S to re F acto r
R eas on s

The respondents were asked to specify the reasons why they prefer convenience food
over home made food.

The convenience factor tops among the reasons. The respondents said that they don’t
have to take care of the vegetables and other spices to prepare the food rather it is
ready to eat or ready to cook food items has made the lives simple and better.

51
The wives were happy because it is simple to prepare and it saves time. They said that
even their husbands can prepare the food in their absence and can also feed the
children. So dependability on wives has been reduced in terms of cooking.

The other reasons for preference for convenience food were tastes good, quality of the
food items, the variety it provides to the consumer.

The other hidden factor/reason which came into limelight was that the convenience
food items don’t have to be stored and kept for so long. The convenience of not
storing the food into the kitchen is the boon for the wives. The use and throw utility is
regarded as one of the biggest advantage of convenience food.

5.13 Preference for convenience food among different age groups

Preference for Convenience food among different Age

group
20 19

18
16
No. of Respondents

14
12
10
8
8
6
4
2
2 1

0
18-25 25-35 35-45 45-55
Age (yrs)

Of the total 30 respondents who preferred convenience food over home made food the
analysis was done and concluded that the age group of the consumer did have an
impact.

52
The young people of age less than 35 yrs are more keen towards convenience food
and prefer them. It might be possible due to the fact that this age group is restless and
have no time to cook.

More and more young people are attracted towards the convenience food.

While the elder persons still prefer the home made food. They enjoy the cooking at
home which had been taught to them by their elders.

It is possible that in coming year the convenience food will be more and more
preferred by the consumers.

5.14 Preference for Convenience food among different professions

Preference for Convenience food among different

professions
30
26
No. of Respondents

25
20

15

10
5 2 2
0
Working House Wife Student
Profession

The above graph clearly shows that the working women prefer the convenience food
over the home made food being followed by the students and house-wives.

The working women because of the fact that they lack time, so for that matter
convenience food is the best option they have.

53
The convenience factor plays an important role followed by the emergency factor.
Also they don’t have to worry about their children and husbands being hungry while
they are at office.

The convenience food is already a hit among the working females.

5.15 Preference for convenience food among different income group.

Preference for Convenience food among different

income group
25
21
20
No. of Respondents

15

10
6
5
2
1
0
0-3 lacs 3-5 lacs 5-10 lacs above 10 lacs

Income (annually in Rs)

Preference for convenience food is also been driven by the income factor as being
clearly depicts by the above graph.

54
Of the total 30 respondents who prefer the convenience food over home made food
are from the middle and upper middle class.

Out of 30 respondents 21 respondents are from income group of between Rs. 5-10
lacs per annum.

2 of the 30 respondents were among the less than 3 lacs income as they were student
and the convenience factor and the factor of use and throw came into picture.

It is clearly been seen that upper middle class prefers the convenience food and still
middle class people has to adopt the convenience food.

5.16 Expenses incurred for convenience food

Expenses incurred for Convenience food

25
23

20
No. of Respondents

15

10
7

0 0
0
100-500 500-1000 1000-1500 more than 1500

Expenses (monthly)

55
77% of the respondents preferring the convenience food spend between Rs. 500 –
1000 monthly on convenience food.

Only 23% respondents spend less than Rs 500 monthly on convenience food and still
prefer them over home made food.

Not even a single respondent was found to be spending over Rs 1000 on monthly
basis on convenience food.

5.17 Single Outlet Preference

Single Outlet Preference

14%
Yes

No

86%

Majority of the respondents prefers to buy from a single outlet rather from multiple
outlets

86% of the total respondents buy their needs from single outlet.
56
 Only 14% prefers to buy from multiple outlets.

5.18 Factors responsible for Outlet Selection

F a c to r s Re s p o n s ib le fo r O u tle t S e le c tio n
90

80

70

60
No. Of Respondents

50

40

30

20

10

0
Close to

Schemes
Quality of

Everything
Products

Products
Variety of

with Store
Opening Hrs
Offers Home

Home

Atmosphere
Comfortable

Offered
Reasonable

Available
Delivery/On

Relation
Friendly &

Keeper
Good
Phone

Price

Long

Not at all Im portantS om ew hat Im portantNeutral S om ew hat Im portantE xtrem ely Im portant

57
The respondents were asked to give the factors which they think are the most
important in selecting a particular outlet.

The respondents said that the Reasonable price was the most important criteria for
selecting an outlet followed by closeness to home.

The other factor which has an importance in selecting an outlet was the availability of
the products under one roof. They required that they don’t have to roam around to
other stores for the things which they don’t find to first store.

They prefer the store where they can shop all their goods and products at a one go.

The quality and variety of the products take a little importance from the people and
the factors like delivery on phone and schemes offered were taken back seat and were
totally refused by the respondents by saying that they are not at all important for them
in selection criteria of an outlet.

LIMITATIONS
58
 LIMITATIONS

1. The study is limited to Faridabad region only.

2. Most of the respondents were females and hence the view of other
gender was lacking.

3. The sample size is very small compared to the total population of

the region.

59
4. The respondents may have not given all the correct facts &
figures and there is a possibility that they may have unrevealed some
important facts or they might have given misleading facts which were
not easy to detect.

CONCLUSION
60
The RTE food market, which is currently worth rs. 128 crore, is expected to soar to rs.
2,900 crore by 2015. According to an analysis released by the Tata Strategic Mgmt.
Group, the factors contributing to this phenomenal growth would be changes like cold
chain development, 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.

The report highlights that the RTE market in the country has remained under
penetrated owing to factors like consumers’ penchant for freshness, low affordability
and the housewife’s preference for home cooked food. The report also draws attention
to the ‘perceive’ taste and nutrition gap and poor range availability for consumers.

According to the analysis, packaged food has grown at around 7% p.a. between 2000-
05, with RTE being the fastest growing category. The canned/preserved segment is
more popular, contributing to around 90% of the market and growing at a CAGR of

61
63% between 2001-06. Interestingly, the chilled and dried ready meal segments are
almost non-existent.

Speaking on the outlook for the RTE market, TSMG chief executive officer Raju
Bhinge says, “there is a huge untapped market opportunity arising due to rapid
demographic shifts in income, urbanization and the rising proportion of urban
working women. The industry needs to focus on broadening the market and
increasing penetration amongst Indian consumers.”

The analysis also points to the fact that the players will have to significantly improve
their price competitiveness with respect to other options such as domestic help, eating
out and ordering in. besides price considerations, the product range offered will have
to be strengthened. At the moment the regional and non-vegetarian cuisine markets
are relatively under serviced with concentration on the vegetarian North Indian meals.

Tata Strategic Practices head for consumer & retail, Pankaj Gupta says, “according to
our analysis, India provides an attractive opportunity. If consumers’ demands of
affordability, availability and acceptability are met; the RTE food market has the
potential growth size of rs. 2.900 crore by 2015 from its existing rs. 128 crore”

Also, the convenience food is still being purchased by the Kirana Stores by most of
the people. It’s the emergency which compels the consumer to buy the convenience
food today also and not the factors like hygiene or simple to prepare.

But, the preference for convenience food is rising among the various sections of the
society and they are now accepting the change. The more working couples, single
parents and high disposable income with time pressure all these contributes to the
growth of the rise in the convenience food industry.

Still, it has a long way to go as a major chunk of people in the society prefers home
made food than the convenience food. The expensive factor is still ruling in the minds
of the consumer and it is prohibiting the customers to purchase them.

62
Majority of the people still prefer single outlet to shop. The proximity to home and the
reasonable prices of the products in an outlet makes the most important factors for the
consumers to select an outlet.

The students living in the rented house or in PG prefers an outlet which offers home
delivery or delivery on phone also if the retailer offers scheme then it’s like a win
-win situation to the students.

The working couples want that an outlet should be opened for long hours so that they
can use the shops at late or odd hours.

The question still remains the same as whether Indian Consumer will give due
importance to the convenience food or not and if yes then to what extent and how
quickly.

63
 APPENDIX

BIBLIOGRAPHY

1) Biyani, Kishore and Baishya, Dipayan, “It Happened in India – The story of
Pantaloons, Big Bazaar, Central and the great Indian consumer”, Published by Rupa
& Co., 2007, pp 17.

2) Kotler, Philip “Marketing Management – Analysis, Planning,

Implementation and Control”, 9th Edition, Published by Prentice-Hall India, 1998,
pp 190, 193

64
3) Levenstein, H, “Paradox of Plenty”, University of California, 2003, pp 106-7

4) “Processed Food & Agribusiness”, Opportunities for Investment in India, a

Knowledge Paper, by KPMG & FICCI, 2007

5) “What’s Hot around the Globe in F&B 2006”, Survey by AC Nielsen

6) “Food Processing”, a knowledge paper by IBEF, Oct 2007

7) “Report on Food Industry in India”, by Indo Italian Chamber of Commerce

& Industry , Nov 2006

8) “Strengthening the India-Australia corridor in select Food & Agribusiness

sectors”, by Rabo India Finance Ltd, June 2007

9) “Food & Beverages Survey”, by FICCI February 2006

10) “Food Retail Formats in Asia”, Understanding Format Success, a study

conducted by Retailing Research Council Asia by IBM

11) http://indianfood.indianetzone.com/1/history.htm

12) http://www.food.gov.uk/

13) http://www.ers.usda.gov/Browse/FoodSector/

14) http://en.wikipedia.org/wiki/Processed_food

15) http://www.ciionline.org/

65
16) http://www.ibef.org/industry/foodindustry.aspx

17) http://www.omretail.com/india/2008/02/total-market-size-2007.html

18) http://en.wikipedia.org/wiki/Convenience_food

19) http://tsmg.com/ind_retail/

20) http://policies.gov.in/

21) http://mofpi.nic.in/industryspecificinformation/packaged.htm/

22) http://www.itcportal.com/

23) http://www.kpmg.com/

24) http://www.ksa-technopak.com/index.jsp

25) http://www.ficci.com/
QUESTIONNAIRE
1. Do you use Convenience/Packaged foods? Y/N

2. If yes, which of the following convenience foods you use?

a. Ready to Eat b. Ready to Cook

3. From where do you purchase convenience food?

a. Kirana Store b. Wholesaler c. Supermarkets

4. In ‘Ready to Eat’ convenience food, which of the following items you generally use?
a. Biscuits b. Bread c. Hand-Held food d. Wafers/Chips
e. Butter/Cheese f. Jams/Sauce g. Corn-Flakes h. Pickles

5. In ‘Ready to Cook’ convenience food, which of the following items you generally use?
a. Instant Noodles b. Pre-Cooked food c. Frozen Vegetables d. Ready-Mix for Curry
e. Ready –Mix Idlis f. Ready-Mix Soups

66
6. What is your average monthly expenditure on Convenience foods (in rupees)?
a. Below 100 b. 100-500 c. 500 – 1000 d. 1000-1500 e. More than 1500

7. For which of the following reasons you use the convenience foods?
a. Simple to prepare b .Saves time c. Children like it d. Tastes good
e. Useful for unexpected guests f. Useful in emergency g. Hygiene factor
h. Don’t have to store i. Others ______________________________

8. How frequent you purchase ‘Ready to Eat’ convenience food?

Everyday Once a Once a Once a 2-3 times a

Week Fortnight Month Month
Biscuits
Wafer/Chips
Bread
Butter
Corn-Flakes
Pickles
Jams/Sauce

9. How frequent you purchase ‘Ready to Cook’ convenience food?

Everyday Once a Once a Once a 2-3 times a

Week Fortnight Month Month
Instant Noodles
Frozen Vegetables
Ready-Mix Idlis
Soups
Ready-Mix Curreys

10. Do you think the convenience food is better than the home-made food? Y/N

11. If yes, then please give the reasons why you think so
a. Simple to prepare b. Saves time c. Tastes good d. Hygiene factor
e. Don’t have to store f. Quality g. Variety h.Others__________

12. If no, then please give the reasons why you think so
a. High Fat contents b. Fat Quality may not be good c. High Salt content
d. Expensive e. Don’t provide a full meal f. Others __________

13. Do you buy convenience foods from a single outlet? Y/N

14. How important you think the factors is to you in selecting the outlet?

Not at all Somewhat Neutral Somewhat Extremely

Important Unimportant Important Important
Offers Home delivery/
On Phone

67
 Reasonable Price
Variety of Products
Quality of Products
Close to Home
Everything available

Long opening hours

Friendly & Comfortable
atmosphere
Good Relation with
Store Keeper
Schemes Offered

Name: _______________________________________ Age: ____________ Gender: Male/ Female

Occupation: ___________________________________________ Marital Status: Married / Single
Annual Income: a. below 3 lacs b. 3-5 lacs c. 5-10 lacs d. above 10 lacs
Place: __________________________ Contact No. : ___________________________

Name: _______________________________________ Age: ____________ Gender: Male/ Female

Occupation: ___________________________________________ Marital Status: Married / Single
Annual Income: a. below 3 lacs b. 3-5 lacs c. 5-10 lacs d. above 10 lacs
Place: __________________________ Contact No. : ___________________________

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