IMPACT OF CULTURE AND RELIGION ON THE PURCHASE OF READY TO EAT FOOD PRODUCTS IN NCR (GURGAON) In Partial Fulfillment for

the award of the degree PGDM (IB) (2011-13)

SUBMIITED TO: MR. MR JAIN (programme coordinator )ANSHUL SHERA (39) NITIN SINGHAL (41)

SUBMIITED BY: SURESH RAGHAV (43)

PDGM (IB)

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL Session: 2011-2013

DECLARATION I student of JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL Batch (2011-13) declare that every part of the Project ReportIMPACT OF CULTURE AND RELIGION ON THE PURCHASE OF READY TO EAT FOOD PRODUCTS IN NCR (GURGAON)that I have submitted is original.

Date of Project Submission: Signature of the Student: Facultys Comments:

Signature of the Faculty: Name: Signature of the Research Methodology: Name: ..

ACKNOWLEDGEMENT The making of any report calls for contribution and cooperation from many others, besides the individual alone. It is the result of meticulous efforts put in by the many minds that contribute to the final report formation. I duly acknowledge my gratitude to each one of them. During the perseverance of this project, I was supported by different people, whose names if not mentioned would be inconsiderate on my part. I would like to extend my sincere gratitude and appreciation to my project guide Mr.MR JAIN, for extending valuable guidance and encouragement from time to time, without which it would not have been possible to undertake and complete this project. The Project was an enriching experience and taught me various critical factors that influence Ready-To-Eat Industry. Additionally, this project helped me in understanding that how actual research is conducted and the various challenges that researches face while conducting a research. I would also like to thank my friends and different people for their support and patience in filling up the questionnaires and hence in the successful completion of the project. Above all I would like to thank the divine intervention who backed me at all the time and provided me enough motivation to accomplish this voyage.

SURESH RAGHAV ANSHUL SHERA NITIN SINGHAL

Table of Contents a. Acknowledgement b. Executive Summary.. c. Indias Food Processing Industry. d. Background for the Study... e. Motivation for Study. f. Research Methodology..

g. Results and Findings.. h. Conclusion & Recommendation.... i. Bibliography j. Annexure..

Executive Summary 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. Indian Government is providing more infrastructures 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. 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. The current project is aimed at gaining a deeper insight of consumer buying behavior towards RTE products, Along with it I consider this project work as the best medium to communicate and share my learning and experiences & constraints faced and learning made during this unforgettable journey.

Indias Food Processing Industry Indias Food Processing industry is one of the largest industries in the country. It has been ranked fifth in terms of production, consumption, export and expected growth. The Indian food industry is estimated to be worth over US$ 200 billion and is expected to grow to US$ 310 billion by 2015. India is one of the worlds major food producers but accounts for only 1.7 per cent (valued at US$ 7.5 billion) of world trade in this sector this share is slated to increase to 3 per cent (US$ 20 billion) by 2015. The Indian food processing industry is estimated at US$ 70 billion. The industry employs 1.6 million workers directly. Food processing is a large sector that covers activities such as agriculture, horticulture, plantation, animal husbandry and fisheries. The Ministry of Food Processing, Government of India has defined the following segments within the Food Processing industry: Dairy, fruits & vegetable processing Grain processing Meat & poultry processing Fisheries Consumer foods including packaged foods, beverages and packaged drinking water. Although the industry is large in terms of size, it is still at a nascent stage in terms of development. Out of the countrys total agriculture and food produce, only 2 per cent is processed. The highest share of processed food is in the Dairy sector, where 37 per cent of the total produce is processed, of which 15 per cent is processed by the organized sector. Primary food processing (packaged fruit and vegetables, milk, milled flour and rice, tea, spices, etc.) constitutes around 60 per cent of processed foods. In comparison, the organized sector is relatively small, with around 516 flour mills, 568 fish processing units, 5,293 fruit and vegetable processing units, 171 meat processing units and numerous dairy processing units at state and district levels.

Introduction Background for the Study

The ready-to-eat (RTE) market in India, currently estimated at Rs. 128 crore (2006) is expected to expand and to reach Rs. 2,900 crore by 2015, according to an analysis done by Tata Strategic Management Group (TSMG).In its analysis, TSMG said that the factors contributing to the growth would be changes like cold chain development, disintermediation, streamlining of taxation, economies of scale on the supply side, coupled with increasing disposable incomes, diminishing culinary skills and the need for convenience on the demand side. When customer needs to eat, the food item pouch is either put in microwave oven to warm it or keep in heated water for a few minutes and then serve to eat. Such ready to eat meals have been especially given to soldiers in army of many countries who require carrying their rations while on war front or while located far away from their main unit. The market for food is simply huge and as of January 2010 estimated to be Rs 5000 billion annually. It is growing for two main reasons: population growth and improvement in consumers spending ability. Major Players in the Ready to Eat Segment MTR Kohinoor Foods ITC Haldiram Tasty Bites TYPES OF READY TO EAT FOOD Veg Food AllooMatar Palakpaneer SarsoKaSaag Chana Masala KadiPakora Cheese Tomato Dal Makhani Rajma Masala Deserts GajarKaHaluaa / SugiKaHaluaa / Milk Kheer etc. Non Veg Food Chicken Curry Butter Chicken Karahi Chicken Mughalai Chicken Mutton Masala Mutton Korma Karahi Mutton Mutton Biryani

Motivation for the Study

According to ITC press release on March 2008, Indian RTE market is worth around Rs 80-100 crore. The market is somewhat in a stagnant state and the growth is minimal. According to reports by CNBC-TV18, despite gradual duty cuts on Ready to Eat and instant mixes the sector is not doing well and growth is minimal. The concept behind RTE is that urban families are strapped for time and will definitely buy RTE packs to save on cooking time however this doesnt seem to be so because in India people still prefer food cooked and served piping hot by someone else or themselves so people hire cooks instead of buying RTE packs. Hence, this study was undertaken to understand the psyche behind consumers and what factors goes into influencing their buying decision making. This is a dilemma faced by marketers of Ready to eat Industry. Marketing being very close to my heart and strategic marketing is my passion and hence I took up this study to understand the problems that marketers face and what are the different mean which can prove strategically beneficial in overcoming these hurdles.

Objectives of the Study

To study the market penetration of Ready-To Eat food. To study the consumer perception of Ready-To-Eat foods. To study impact of culture and religion on purchase of ready to- eat food.

Research Problem
This Study deals with the Ready to eat Industry in India. The study also aims at understanding the factors influencing buying decision making of the RTE products. The factors under consideration are advertising, price, Product, Value proposition etc.

Scope of the Study

The project is a study of the factors affecting consumer buying behavior of Ready to Eat Meals in India. The study is undertaken to understand all the negative and positive perceptions about the Ready to Eat products. In the study I have highlighted the following points: Number of people aware about RTE & have purchased it; Number of people buying an RTE product on monthly basis vs. emergency basis; Critical areas where communication is required to draw a change in the perception/attitude of customers towards RTE segment;

Limitations of the Study

For a generic study like this where the consumers are spread across a wide area of NCR and shortage of time, the sample size taken was very limited i.e. 80. Lack offirsthand knowledge of conducting research.

Research Methodology
Research Design A research design is the arrangement of conditions for collection and analysis of data ina manner that aims to combine relevance to research purpose with economy procedure. Research design is the conceptual structure within which research is conducted. There are three types of research design. The research design adopted here is descriptive. I have made use of secondary data collection and also primary data collection. Steps in the research: Collection of data pertaining to Ready to eat market and identifying the research problem; Collection of data from secondary data related to the research problem; Primary data collection using Questionnaire targeting a sample size of 80 people.

Data collection Methodology: The sources of data used in this project report are both primary and secondary data. Primary data Primary data consists of original information gathered for specific purposes at hand. These are gathered for a specific purpose or for a specific research project. Primary data was collected online as well as manually. A survey questionnaire was made on Google Documents and the link was mailed to the sample. Additionally, to the sample that were not net savvy printouts of the questionnaire was distributed and the result was compiled. Secondary data Secondary data consists of information that already exist and that were being collected in the past for some other purposes. Secondary data used in this study were collected from external sources like books, blogs, wiki etc. Some websites which were really helpful are www.slideshare.com, www.scribd.com. Sample design The sampling technique used for survey was a non-probabilistic convenience sampling. The sample size was chosen keeping in mind the target market for RTE segment, Hostel/paying guest, Individuals working & living in nuclear families and bachelors between the age group of 18-60 which include student, serviceman, business man, housewifeetc

Tools & Techniques Data was collected with the help of questionnaire. The questionnaire is of structured nondisguised type. The questions are of mixed type. It can be found in the Annexure. For survey, questionnaire was prepared and sends to potential respondent and response was collected from each respondent. . Sample Size The total number of respondents was 80. The age group in which the sample lied is 18-60. The occupation of this sample size was a healthy mix of self employed individuals, working people and students. The respondents included some people from Hostel/Paying guest which form a large chunk of the target market for RTE foods.

HYPOTHYSIS
CHI-SQUARE TEST Test 1: Chi- Square Test between income level and food preferences Ho: Income and Food preferences are independent of each other. H1: Income and Food preferences are not independent of each other. The results came out to be as follows: What is the total monthly income of your family? * * food habits Cross tabulation

food habits Vegetarians What is the total monthly income of your family? * < 20000 20001- 30000 30001-50000 Total 15 12 22 49 non vegetarian 10 8 13 31 Total 25 20 35 80

Chi-Square Tests(SIGNIFICANCE BETWEEN EXPECTED FREQUENCY AND OBSERVED FREQUENCY) Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases .068a .068 .054 80 df 2 2 1 Asymp. Sig. (2-sided) .967 .967 .816

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.75.

Since Asymp. Sig. Is <0.05, the hypothesis Ho is rejected at 5% level of significance and concludes that income and food preferences are dependent on one another. This shows that a relation between them can be established and effect of Income on food preferences will give a conclusive observation.

Test 2: Chi- Square Test between age and food preferences Ho: Age and Food preferences are independent of each other. H1: Age and Food preferences are not independent of each other. Age * Food Preferences Cross tabulation
food habits Vegetarians age 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 39 52 Total 0 1 2 1 1 5 2 5 0 3 2 3 5 1 3 0 4 3 3 5 0 0 49 non vegetarian 1 0 0 1 3 2 4 1 2 0 0 1 4 1 2 2 2 1 2 0 1 1 31 Total 1 1 2 2 4 7 6 6 2 3 2 4 9 2 5 2 6 4 5 5 1 1 80

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 26.066a 32.893 .001 80 df 21 21 1 Asymp. Sig. (2-sided) .204 .047 .971

a. 43 cells (97.7%) have expected count less than 5. The minimum expected count is .39.

Since Asymp.Sig. Is <0.05, the hypothesis Ho is rejected at 5% level of significance and concludes that age and food preferences are dependent on one another. This shows that a relation between them can be established and effect of different age group on food preferences can be studied.

Test 3: Chi- Square Test between Age and frequency of purchase of ready meals Ho: Age and frequency of purchase of ready meals are independent of each other. H1: Age and frequency of purchase of ready meals are not independent of each other.
How frequently do you consume ready meals? * Once a month Age 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 39 52 0 0 1 0 0 2 1 1 0 2 0 0 0 0 0 0 1 0 0 0 0 1 Once in 15 days 0 0 1 2 1 4 3 5 1 1 1 4 5 0 3 2 1 2 5 4 0 0 Once a week 0 0 0 0 0 1 1 0 0 0 1 0 4 2 2 0 3 1 0 0 1 0 twice a week 1 1 0 0 1 0 1 0 1 0 0 0 0 0 0 0 1 1 0 1 0 0 more than that 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total 1 1 2 2 4 7 6 6 2 3 2 4 9 2 5 2 6 4 5 5 1 1

How frequently do you consume ready meals? * Once a month Age 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 39 52 Total 0 0 1 0 0 2 1 1 0 2 0 0 0 0 0 0 1 0 0 0 0 1 9 Once in 15 days 0 0 1 2 1 4 3 5 1 1 1 4 5 0 3 2 1 2 5 4 0 0 45 Once a week 0 0 0 0 0 1 1 0 0 0 1 0 4 2 2 0 3 1 0 0 1 0 16 twice a week 1 1 0 0 1 0 1 0 1 0 0 0 0 0 0 0 1 1 0 1 0 0 8 more than that 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 Total 1 1 2 2 4 7 6 6 2 3 2 4 9 2 5 2 6 4 5 5 1 1 80

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 127.582a 92.731 .655 80 df 84 84 1 Asymp. Sig. (2-sided) .002 .241 .418

a. 109 cells (99.1%) have expected count less than 5. The minimum expected count is .03.

Since Asymp. Sig. Is <0.05, the hypothesis Ho is rejected at 5% level of significance and concludes that age and frequency of purchase are dependent on one another. This shows that a relation between them can be established and effect ofDifferent age group on frequency of purchase can be established

Test 4: Chi- Square Test between Occupation and frequency of purchase of ready meals

Ho: Occupation and frequency of purchase of ready meals are independent of each other. H1: Occupation and frequency of purchase of ready meals are not independent of each other.

Occupation * How frequently do you consume ready meals? * Cross tabulation How frequently do you consume ready meals? * Once a month occupati businessma on n teacher housewife serviceman student farmer Total 2 1 2 0 3 1 9 Once in 15 days 8 5 5 7 17 3 45 Once a week 5 3 4 1 2 1 16 twice a week 1 1 2 0 4 0 8 more than that Total 0 0 0 0 2 0 2 16 10 13 8 28 5 80

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 14.830a 17.721 .001 80 df 20 20 1 Asymp. Sig. (2-sided) .786 .606 .976

a. 25 cells (83.3%) have expected count less than 5. The minimum expected count is .13.

Since Asymp.Sig. Is <0.05, the hypothesis Ho is rejected at 5% level of significance and concludes that occupation and frequency of purchase are dependent on one another. This shows that a relation between them can be established and effect ofDifferent age group on frequency of purchase can be established.

Results and Findings

Table 1 DemographicCharacteristicsof 80Locals of NCR

gender 1 age 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 39 52 Total 1 1 1 1 3 6 3 4 1 1 2 1 4 1 3 1 3 3 2 4 1 1 48 2 0 0 1 1 1 1 3 2 1 2 0 3 5 1 2 1 3 1 3 1 0 0 32 Total 1 1 2 2 4 7 6 6 2 3 2 4 9 2 5 2 6 4 5 5 1 1 80

The categorization of the sample size according to the different demographic variables will help in understanding the changing attitudes and behaviors of the consumers of ready meals. This will help in depicting the broader picture in terms of response of the target market, and show how the opinion towards ready meals changes along with a change in demographic variable. This will help marketers to direct their strategies and attract the target market, by paying attention to the factors that are given most importance for the purchase of ready meals.

Table 2

Total foodpreferencesintermsofincome

gender 1 What is the total monthly income of your family? * < 20000 20001- 30000 30001-50000 Total 12 14 22 48 2 13 6 13 32 Total 25 20 35 80

Table 3 Total foodpreferencesintermsofincome

food habits Vegetarians What is the total monthly income of your family? * < 20000 20001- 30000 30001-50000 Total 15 12 22 49 non vegetarian 10 8 13 31 Total 25 20 35 80

Withthehelpofaboveresults,itcanbeanalyzedthatconsumerswithlower ofvegetarianf o o d . Also,

incomes

purchase

more

a s t h e i n c o m e i n c r e a s e s t h e consumersare nonvegetarianandnon-

exposedtomorevarietyoffoodandshowanincreaseinpurchaseof vegetarianfood.Consumerswithhighlevelsofincomeshowequalpreferencesfor vegetarian foods. Similarly,thechangeinfoodpreferenceswasalsonoticedwithindifferentagegroups. squaretestwasfirstperformedandtheresultshowsthatthereisasignificant relationbetweentheagegrouptherespondentbelongstoandthekindof 2).Thisisillustratedinthefollowingtableandchart. food theyprefer

Thechi-

(test

Table 4

Food habits Vegetarians age 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 39 52 Total 0 1 2 1 1 5 2 5 0 3 2 3 5 1 3 0 4 3 3 5 0 0 49 non vegetarian 1 0 0 1 3 2 4 1 2 0 0 1 4 1 2 2 2 1 2 0 1 1 31 Total 1 1 2 2 4 7 6 6 2 3 2 4 9 2 5 2 6 4 5 5 1 1 80

Table 5

Occupation * food habits Crosstabulation

food habits Vegetarians occupation businessman teacher housewife serviceman student farmer Total 9 6 9 6 16 3 49 non vegetarian 7 4 4 2 12 2 31 Total 16 10 13 8 28 5 80

Table 6

Age * How frequently do you consume ready meals? * Crosstabulation

How frequently do you consume ready meals? * Once a month age 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 39 52 Total 0 0 1 0 0 2 1 1 0 2 0 0 0 0 0 0 1 0 0 0 0 1 9 Once in 15 days 0 0 1 2 1 4 3 5 1 1 1 4 5 0 3 2 1 2 5 4 0 0 45 Once a week 0 0 0 0 0 1 1 0 0 0 1 0 4 2 2 0 3 1 0 0 1 0 16 twice a week 1 1 0 0 1 0 1 0 1 0 0 0 0 0 0 0 1 1 0 1 0 0 8 more than that 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 Total 1 1 2 2 4 7 6 6 2 3 2 4 9 2 5 2 6 4 5 5 1 1 80

Table 7 Education * How frequently do you consume ready meals? * Cross tabulation
How frequently do you consume ready meals? * Once a month education Illiterate Primary High Degree PG Total 0 0 1 1 7 9 Once in 15 days 1 1 14 18 11 45 Once a week 0 0 6 2 8 16 twice a week 0 1 1 2 4 8 more than that 0 0 0 0 2 2 Total 1 2 22 23 32 80

Analysis

T-Test
One-Sample Statistics N age 80 Mean 29.06 Std. Deviation 5.973 Std. Error Mean .668

One-Sample Test Test Value = 45 95% Confidence Interval of the Difference t age -23.865 df 79 Sig. (2-tailed) .000 Mean Difference -15.938 Lower -17.27 Upper -14.61

T test is rejected because T test is negative and p value is .000.

Factor Analysis
Descriptive Statistics
Mean occupation age gender education food habits Type of family Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 3.46 29.06 1.40 4.04 1.39 1.31 3.09 1.66 2.13 2.13 2.36 1.90 2.81 1.63 3.34 3.00 1.11 1.23 3.60 Std. Deviation 1.676 5.973 .493 .947 .490 .466 .799 .745 .862 1.195 .903 1.588 .731 .877 1.201 1.232 .318 .420 1.762 Analysis N 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80

Correlation Matrix

Type of occupation age gender education Food habits family Q.1 Q.2 Q.3 Q.4 Q.5

Correlat ion

occupation

1.000

.370

-.074

-.051

-.005

.218

.11 6

.005

-.216

-.206

-.003

age

-.370

1.00 0

.021

-.188

-.004

-.116

.01 2

.038

.129

-.038

-.091

gender

-.074

.021

1.000

-.141

-.021

-.055

.12 2

.145

-.119

.021

.011

education

-.051

.188

-.141

1.000

.077

-.056

.13 8

.126

.180

.208

.043

Food habits

-.005

.004

-.021

.077

1.000

-.149

.05 5

.051

-.026

.651

.222

Type of family

.218

.116

-.055

-.056

-.149

1.000

.06 2

.020

.028

-.207

.028

Q.1

-.116

.012

-.122

-.138

-.055

.062

1.0 00

.162

-.163

.055

-.167

Q.2

-.005

.038

-.145

.126

.051

-.020

.16 2

1.00 0

.185

-.009

.109

Q.3

-.216

.129

-.119

.180

-.026

.028

.16 3

.185

1.000

-.052

.234

Q.4

-.206

.038

.021

.208

.651

-.207

.05 5

.009

-.052

1.000

.298

Q.5

-.003

.091

.011

.043

.222

.028

.16 7

.109

.234

.298

1.000

Q.6

-.130

.023

.003

.247

.457

-.128

.31 2

.292

.055

.340

.211

Q.7

.020

.067

-.035

-.118

-.113

.174

.01 5

.254

-.083

-.060

.047

Q.8

-.044

.162

-.117

.048

.136

-.236

.33 2

.269

.146

-.051

.030

Q.9

-.041

.117

.197

-.167

-.225

.103

.18 0

.225

.044

-.145

-.231

Q.10

-.135

.217

.146

-.076

.105

-.132

.09 0

.069

-.131

.095

.159

Q.11

-.075

.037

.032

.238

.204

.016

.08 9

.158

.271

.229

.121

Q.12

-.132

.050

-.012

.106

.124

-.170

.17 3

.043

.061

.069

.083

Q.13

-.250

.107

-.032

.221

-.038

.000

.08 8

.195

.092

-.078

-.186

Sig. (1tailed)

occupation

.000

.258

.327

.482

.026

.15 3

.482

.027

.033

.488

age

.000

.425

.047

.486

.152

.45 8

.369

.128

.368

.211

gender

.258

.425

.106

.427

.314

.14 0

.100

.146

.425

.460

education

.327

.047

.106

.248

.312

.11 1

.133

.055

.032

.352

food habits

.482

.486

.427

.248

.094

.31 3

.328

.409

.000

.024

Type of family

.026

.152

.314

.312

.094

.29 4

.428

.404

.033

.402

Q.1

.153

.458

.140

.111

.313

.294

.075

.074

.315

.069

Q.2

.482

.369

.100

.133

.328

.428

.07 5

.051

.469

.168

Q.3

.027

.128

.146

.055

.409

.404

.07 4

.051

.323

.019

Q.4

.033

.368

.425

.032

.000

.033

.31 5

.469

.323

.004

Q.5

.488

.211

.460

.352

.024

.402

.06 9

.168

.019

.004

Q.6

.125

.419

.489

.014

.000

.129

.00 2

.004

.313

.001

.030

Q.7

.430

.279

.379

.149

.160

.061

.44 8

.011

.232

.299

.340

Q.8

.349

.076

.150

.337

.114

.018

.00 1

.008

.097

.325

.396

Q.9

.360

.151

.040

.069

.022

.181

.05 5

.023

.348

.100

.020

Q.10

.117

.027

.098

.252

.178

.121

.21 4

.272

.123

.202

.079

Q.11

.254

.372

.388

.017

.035

.444

.21 6

.080

.007

.020

.143

Q.12

.122

.330

.457

.175

.136

.066

.06 3

.351

.295

.271

.233

Q.13

.013

.172

.389

.024

.369

.500

.21 8

.042

.209

.245

.049

Correlation Matrix Q.6 Correlati on age gender education food habits type of family Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 Sig. (1tailed) age gender .419 .489 .279 .379 .076 .150 .151 .040 .027 .098 .372 .388 .330 .457 .172 .389 occupation .023 .003 .247 .457 -.128 -.312 .292 .055 .340 .211 1.000 .191 .318 -.141 .116 .123 .414 .280 .125 .067 -.035 -.118 -.113 .174 -.015 .254 -.083 -.060 .047 .191 1.000 .007 .160 .084 -.180 .057 .383 .430 .162 -.117 .048 .136 -.236 -.332 .269 .146 -.051 .030 .318 .007 1.000 -.179 .082 .017 .507 .156 .349 .117 .197 -.167 -.225 .103 .180 -.225 .044 -.145 -.231 -.141 .160 -.179 1.000 -.043 -.101 -.203 .178 .360 .217 .146 -.076 .105 -.132 -.090 .069 -.131 .095 .159 .116 .084 .082 -.043 1.000 -.194 .024 .274 .117 -.037 .032 .238 .204 .016 -.089 -.158 .271 .229 .121 .123 -.180 .017 -.101 -.194 1.000 .282 -.099 .254 .050 -.012 .106 .124 -.170 -.173 .043 .061 .069 .083 .414 .057 .507 -.203 .024 .282 1.000 .277 .122 .107 -.032 .221 -.038 .000 .088 .195 .092 -.078 -.186 .280 .383 .156 .178 .274 -.099 .277 1.000 .013 occupation -.130 Q.7 .020 Q.8 -.044 Q.9 -.041 Q.10 -.135 Q.11 -.075 Q.12 -.132 Q.13 -.250

education Food habits Type of family Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13

.014 .000 .129 .002 .004 .313 .001 .030

.149 .160 .061 .448 .011 .232 .299 .340 .045

.337 .114 .018 .001 .008 .097 .325 .396 .002 .474

.069 .022 .181 .055 .023 .348 .100 .020 .105 .079 .056

.252 .178 .121 .214 .272 .123 .202 .079 .152 .229 .235 .353

.017 .035 .444 .216 .080 .007 .020 .143 .139 .055 .440 .187 .042

.175 .136 .066 .063 .351 .295 .271 .233 .000 .309 .000 .036 .415 .006

.024 .369 .500 .218 .042 .209 .245 .049 .006 .000 .084 .057 .007 .190 .006

.045 .002 .105 .152 .139 .000 .006 .474 .079 .229 .055 .309 .000

.056 .235 .440 .000 .084 .353 .187 .036 .057

.042 .415 .007 .006 .190

.006

Covariance Matrix

a. Determinant = .000

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. a. Based on correlations .535 352.170 171 .000

Our kmo result is more than 0.5, this means we can put factor analysis, this means maximum factors are related to each other and the result is positive.

Communalities Raw Initial occupation age gender education food habits type of family Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 2.809 35.680 .243 .897 .240 .218 .638 .556 .744 1.427 .816 2.522 .534 .769 1.442 1.519 .101 .177 3.104 Extraction .977 35.659 .000 .178 .093 .016 .084 .069 .030 .611 .215 1.931 .084 .115 .448 .233 .007 .037 2.897 Rescaled Initial 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .348 .999 .002 .198 .386 .075 .131 .125 .040 .428 .264 .766 .158 .149 .311 .153 .073 .209 .933

Extraction Method: Principal Component Analysis.

Total Variance Explained Extraction Sums of Squared Initial Eigenvalues Component Raw 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Total 36.316 4.417 2.953 2.349 1.548 1.396 1.065 .910 .744 .606 .471 .424 .377 .251 .186 .169 .109 .090 .053 % of Variance 66.716 8.114 5.424 4.315 2.844 2.565 1.956 1.673 1.366 1.114 .866 .779 .692 .461 .341 .310 .200 .166 .098
a

Loadings Total 36.316 4.417 2.953

Cumulative % 66.716 74.830 80.254 84.569 87.413 89.978 91.934 93.606 94.973 96.086 96.952 97.730 98.423 98.884 99.226 99.536 99.736 99.902 100.000

Rescaled

36.316

66.716

66.716

1.360

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

4.417 2.953 2.349 1.548 1.396 1.065 .910 .744 .606 .471 .424 .377 .251 .186 .169 .109 .090 .053

8.114 5.424 4.315 2.844 2.565 1.956 1.673 1.366 1.114 .866 .779 .692 .461 .341 .310 .200 .166 .098

74.830 80.254 84.569 87.413 89.978 91.934 93.606 94.973 96.086 96.952 97.730 98.423 98.884 99.226 99.536 99.736 99.902 100.000

2.270 2.119

Total Variance Explained Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Component Raw 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

% of Variance 66.716 8.114 5.424

Cumulative % 66.716 74.830 80.254

Total 3.988 4.557 35.140

% of Variance 7.326 8.372 64.556

Cumulative % 7.326 15.699 80.254

Rescaled

7.160

7.160

2.386

12.558

12.558

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

11.947 11.153

19.107 30.260

1.914 1.449

10.076 7.626

22.634 30.260

Extraction Method: Principal Component Analysis. a. When analyzing a covariance matrix, the initial Eigenvalues are the same across the raw and rescaled solution.

Component Matrix
Raw Component 1 occupation age gender education food habits type of family Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 -.668 5.969 .013 -.177 -.002 -.057 .012 -.026 .116 -.041 -.084 .051 .053 .146 .148 .283 -.012 .024 .227 2 -.728 -.156 -.005 .363 .139 -.069 -.098 .247 .124 .359 .089 1.152 .222 .254 -.060 .388 .017 .178 1.363 3 -.005 .060 -.016 .121 .271 -.092 -.271 .087 .034 .693 .447 .776 -.179 .170 -.650 -.047 .083 .067 -.994 1 -.399 .999 .025 -.186 -.005 -.123 .015 -.034 .135 -.034 -.092 .032 .072 .166 .123 .230 -.038 .058 .129 Rescaled Component 2 -.434 -.026 -.011 .384 .283 -.148 -.123 .332 .143 .300 .099 .725 .304 .289 -.050 .315 .054 .425 .773 3 -.003 .010 -.032 .128 .553 -.196 -.340 .117 .039 .580 .495 .489 -.245 .194 -.541 -.038 .261 .160 -.564

Extraction Method: Principal Component Analysis. a. 3 components extracted.

Rotated Component Matrix a Raw Component 1 occupation age gender education food habits type of family Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 -.069 -.987 -.018 .233 .293 -.095 -.285 .148 .042 .756 .463 1.012 -.126 .200 -.661 .002 .086 .103 -.658 2 -.641 -.682 -.002 .334 .063 -.038 -.025 .217 .100 .169 -.023 .902 .256 .187 .098 .361 -.004 .152 1.549 3 -.749 5.850 .009 -.110 .054 -.078 -.039 .019 .135 .103 -.007 .305 .054 .199 .046 .320 .002 .056 .254 1 -.041 -.165 -.037 .246 .598 -.203 -.357 .198 .049 .633 .513 .637 -.173 .228 -.550 .001 .269 .246 -.374 Rescaled Component 2 -.383 -.114 -.005 .352 .129 -.081 -.032 .292 .116 .142 -.025 .568 .350 .214 .082 .293 -.013 .362 .879 3 -.447 .979 .019 -.117 .109 -.167 -.049 .025 .156 .086 -.008 .192 .075 .227 .038 .260 .006 .133 .144

Extraction Method: Principal Component Analysis. Rotation Method: Varian with Kaiser Normalization.

Rotated Component Matrix a Raw Component 1 occupation age gender education food habits type of family Q.1 Q.2 Q.3 Q.4 Q.5 Q.6 Q.7 Q.8 Q.9 Q.10 Q.11 Q.12 Q.13 -.069 -.987 -.018 .233 .293 -.095 -.285 .148 .042 .756 .463 1.012 -.126 .200 -.661 .002 .086 .103 -.658 2 -.641 -.682 -.002 .334 .063 -.038 -.025 .217 .100 .169 -.023 .902 .256 .187 .098 .361 -.004 .152 1.549 3 -.749 5.850 .009 -.110 .054 -.078 -.039 .019 .135 .103 -.007 .305 .054 .199 .046 .320 .002 .056 .254 1 -.041 -.165 -.037 .246 .598 -.203 -.357 .198 .049 .633 .513 .637 -.173 .228 -.550 .001 .269 .246 -.374 Rescaled Component 2 -.383 -.114 -.005 .352 .129 -.081 -.032 .292 .116 .142 -.025 .568 .350 .214 .082 .293 -.013 .362 .879 3 -.447 .979 .019 -.117 .109 -.167 -.049 .025 .156 .086 -.008 .192 .075 .227 .038 .260 .006 .133 .144

Extraction Method: Principal Component Analysis. Rotation Method: Varian with Kaiser Normalization. a. Rotation converged in 5 iterations.

Component Transformation Matrix Component 1 2 3 1 -.169 .242 .955 2 -.087 .962 -.259 3 .982 .126 .141

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

Two Step Cluster

Regression

Variables Entered/Removed Variables Model 1 Variables Entered age Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: education

Model Summary Adjusted R Model 1 R .188a R Square .035 Square .023 Std. Error of the Estimate .936

a. Predictors: (Constant), age variables are more positively related on each other.

ANOVAs Model 1 Regression Residual Total Sum of Squares 2.514 68.373 70.887 df 1 78 79 Mean Square 2.514 .877 F 2.869 Sig. .094a

a. Predictors: (Constant), age b. Dependent Variable: education

Coefficients
Standardized Unstandardized Coefficients Model 1 (Constant) age a. Dependent Variable: education B 4.906 -.030 Std. Error .523 .018 -.188 Coefficients Beta t 9.378 -1.694 Sig. .000 .094

One way
ANOVA Sum of Squares age Between Groups Within Groups Total gender Between Groups Within Groups Total 1845.790 972.898 2818.688 5.357 13.843 19.200 df 5 74 79 5 74 79 1.071 .187 5.728 .000 Mean Square 369.158 13.147 F 28.079 Sig. .000

Conclusion and Recommendations

On the basis of findings made, we can safely conclude that: Price- Indian consumers are highly price sensitive. For any new product they judge the product based on their price and more or less the repeat purchases are impacted by price factor. Same is the case with Ready to Eat foods. Value proposition RTE foods should be perceived as a value proposition by customers. Value proposition means it should be able to save lot of time and money with sufficient quantity to act as a full meal. Value for money - Consumers should perceive RTE packs as Value for money i.e. they should feel the money they spent on it is well spent and not wasted. This is where repeat buying can be induced. If consumers see RTE as a Value for money option they wont look for other options like ordering from restaurant or going to a restaurant. Quantity and taste of food - Indians are voracious eaters and the family size is also large. And Indians are used to eating a 3 full course meal on any day. Hence the quantity packaged in the RTE packs should be sufficient. And that is where the buying decision will come into play if the quantity is insufficient to fulfill the entire family then defiantly they wont consider buying it again. The food should also tickle the taste buds of consumers. Easy availability - The biggest competitor for RTE foods are restaurants which are easily available geographically and accessible with the option of doorstep delivery. Hence RTE has to be made available in such way that it can be easily accessible by the consumers during normal shopping as well as during emergencies. Branding: Although almost respondents were aware of the RTE products, but when they were asked to recall some popular brands, they could not mention any other name except Maggie. So, branding and abundant awareness generating efforts should be taken by these companies to broaden their target market, Childrens Preference: When it comes to make the decision as to which brand should be bought, the decision rests upon the children and it was found that majority of households purchases the brand demanded by the children. And their demand is largely guided by catchy advertisements shown on the TV.

Recommendations As per my study the following recommendations could be utilized by the companys manufacturing and marketing Ready to Eat Meals: As is seen from the survey the major concern for consumers is the health aspect. They have a perception that these RTE meals are not manufactured under good conditions. Secondly, they also feel that Ready to eat meals is not good for health. Hence marketers have to touch upon this point. The advertising, communication and promotion should revolve around this point.. Indian Households are averse to outside food and they feel only home cooked food can provide the taste and quality. This is a big hurdle for the RTE industry and the efforts should be taken to improve the quality of the food by using better manufacturing, and packing methods. The ready to Eat marketers should bank upon its strengths i.e. time saving, effort saving and easily available option. The promotion, Packaging should revolve around these characteristics as we all know in the traditional Indian urban family time is less.. The pricing strategy should be designed in such a way so as to be competent with the restaurants rate. People do not mind spending more if it saves time. However they will spend only a reasonable hike in price. If there is a lot of difference between the restaurant price and RTE price they would go for the former.

BIBLIOGRAPHY BOOKS Kothari, C.R, Research Methodology, Second Edition, New Delhi. WEB-RESOURCES http://www.indianfoodindustry.net/ http://www.thehindu.com/2007/10/24/stories/2007102454651900.htm http://www.oppapers.com/essays/Ready-To-Eat-Food-Industry/198352 www.marketresearch.com www.hindubusinessline.com www.marketingpractice.blogspot.com www.garamchai.com

Annexure QUESTIONNAIRE TITLE:-This Questionnaire is the part of research IMPACT OF CULTURE AND RELIGION ON THE PURCHASE OF READY TO EAT FOOD PRODUCTS IN NCR (GURGAON) undertaken for project for the completion of PGDM(IB) course from JIMS KALKAJI. At no point of time your identity will be revealed. You are requested to fill this Questionnaire. THANK YOU AnshulSehra Suresh Raghav NitinSinghal SOME INFORMATION ABOUT YOU: a. b. c. d. e. f. Occupation Age Gender Education Food Habits Type of Family : : : Male / Female Illiterate / Primary / High / Degree /PG : Vegetarians / Non-vegetarians : Joint / Nuclear

How many adults (people above the age 18) do you have in your family living together? a. 1 c. 3 b. 2 d. above 4 How many children (people below the age 18) do you have in your family living together? a. 1 b. 2 What is the total monthly income of your family? a. < RS. 20000 b. RS. 20001- 30000 Specific Information 1. Whichofthefollowingstatementsbestdescribeyou? a. b. c. d. Ienjoyhavingvegetarianfood. IhavevegetarianfoodbutIpreferNon-vegetarianfoodtovegetarianfood. Ienjoyhavingonlynon-vegetarianfood. Ienjoyvegetarianaswellasnon-vegetarianfood. c. 3 d. above 4

c. RS. 30001-50000 d. >RS. 50000

2. Howfrequentlydoyouconsumereadymeals? c. Onceamonth d. Once in 15 days e. Once a week d. twice a week e. more than that

3. Whatisyourfavoritereadymealsfood?(Pleasetickanyone,whichyoupurchase more often) a. b. c. Pasta, macaroni or spaghetti Vegetarian dishes Non-vegetarian dishes d. Dessertslikegulabjamunsorcakesetc. e. Cooking sauces f. Any other, specify.

4. In terms of ready meals, which one out of the following international cuisines does you, purchases the most?

a. Italian d. Mexican b. Chinese c. Indian

e. Thai f. Any other, specify

5.Whenyoufirsttriedareadymeal,whatwasyouropiniontowardsit? a. b. c. Itriedandlikeitalot,thereforeIstillpurchaseit. ItriedanddidnotlikeitatallandthereforeIdonotpurchaseitanymore. I triedanddidnotfindittoogoodbutstillIdonotmindhavingitoccasionally.

6. Whataccordingtoyouisthemainreasonbehindpurchasingreadymeals? a. b. c. d. e. Donotknowhowtocook. Knowhowtocookbutenjoytryingnewcuisinesintheformofreadymeals. Istayaloneandthereforepurchasereadymealstosavetimeanditinvolveslesseffort. Iworklonghoursandgetlesstimetocookfromscratch. Ihavereadymealsasanoccasionaltreat.

7. Whenyouhaveguestsforameal,whatkindofmealsdoyouprefertoserve? a. b. c. Healthy by preparing fresh food d. traditional Simple cook with the help of ready sauces e. dont entertain Economical f. cook some fresh good and also buy some RTE

8. Doyouthinkreadymealsfoodproductsarea convenientsubstituteofhomecooked meals? a. b. Yes,readymealsfoodproductsareconvenientsubstitutesofhomecookedmeals. No,readymealsfoodarenotconvenientsubstitutesofhomecookedmeals.

9.Theysaythatcultureandtraditional valuesofcookingfreshfoodathomeplayan important roleininfluencingapersonsinclinationtopurchasereadymeals.Doyou agree withthisview? a. b. YES NO

10.Whichofthefollowingfactorsinfluencethepurchaseofreadymealsfoodproducts? a. b. Costsavingfactor Preferthetaste

c. d. e. f. g. h. i. j.

Havegoodquality Purchasetoavoidthehassleofcooking Timesavingfactorduetolongworkinghours Hecticlifestyle Perish abilityoffood Householdpenetrationofmicrowaveovens(technology) Moretimespendonleisureactivitiesthancooking Buyitasalastoption

11. If you have any suggestions for improving ready meals food products please tell us about them.