863. Indian Food Sector and Changing Consumer Preferences
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The aim of the project was to have an in-depth knowledge of the growing food service food sector and ready to eat market in India and to study the various reasons, which have changed the consumers perceptions towards eating out options
DISSERTATION REPORT SUBMITTED TOWARDS FULFILLMENT OF GRADUATION DEGREE IN B.COM. HONORS
INDIAN FOOD SECTOR AND CHANGING CONSUMER PREFERENCES
SUBMITTED TO: SUBMITED BY:
Ms. Sarika Jain Chandrabhan SolankiFaculty, B.Com. A3146912001 B.COM. HONS. (EVENING)
ACCF AMITY UNIVERSITY UTTAR PRADESHCERTIFICATATE OF ORIGIN
This is to certify that Chandrabhan Solanki a student of B.Com. Hons. (Evening), ACCF, Noida has successfully completed the project entitled INDIAN FOOD SECTOR AND CHANGING CONSUMER PREFERENCES under the able guidance of Miss Sarika Jain. This report has the requisite standard for the fulfillment the Graduate Degree in B.Com. Hons. for the year 2012-2015.Signature SignatureACKNOWLEDGEMENT
The successful completion of this project work was made possible with the help and guidance received from various quarters. I would like to avail this opportunity to express my sincere thanks and gratitude to all of them.
I am sincerely grateful to my Faculty Guide Miss Sarika Jain for her keen interest and encouragement in my project work whose co-operation and guidance helped me in completing the project successfully and completely.
I would also like to thank all the staff members of the Department of B.Com. Honors, for providing the necessary co-operation.
Chandrabhan Solanki (A3146912001)
TABLE OF CONTENTS
Ch.-1 Executive Summary 1
Critical Review of Literature 3
Ch.-4 Organized Fast Food Sector
Ch.-5 Processed Food and Beverages
Ch.-6 Food and Beverage Retail In India 36
Ch.-7 Changing Consumer Behavior 40-42
Ch.-8 Entering the Market 48
Ch.-9 Future Prospects 50
Ch.-10 Findings and Analysis 51-54Ch.-11 Conclusion 55 Recommendation 56
Bibliography 59 Annexure 60
1. EXECUTIVE SUMMARY
The aim of the project was to have an in-depth knowledge of the growing fast food sector and ready to eat market in India and to study the various reasons, which have changed the consumers perceptions towards eating out options.
The study involves understanding the current scenario of the fast food restaurant industry and ready to eat food market and understanding the change in consumer approach towards eating out options and towards ready to eat meals available at food retail stores. It deals with the growing consumption of processed food in India. Emphasis is also given on the competitive advantage of the processed food industry. All the data collected is secondary and the recommendation are on the basis of this data.2. RESEARCH METHODOLOGY2.1 PRIMARY OBJECTIVE:
To Study the current scenario of the fast food restaurant sector, ready to eat meals market and to study the changing consumer behavior towards the same. 2.2 SCOPE OF THE STUDY:
The project is carried in order to have an in-depth knowledge of the growing fast food sector and ready to eat market in India and to study the various reasons, which have changed the consumers perceptions towards eating out options. All the data collected is secondary and the recommendation are on the basis of this data.3. CRITICAL REVIEW OF LITERATUREResearches have shown that like most Asian economies, India has a long tradition of eating away from home, at a plethora of roadside eateries, snack shops and at lodging places. Not only does the traditional eat-at-home type prefer to eat out, he is very demanding too. Eating out no longer marks a special occasion. The estimated industry growth in 2006 has been between 25-30%.According to a survey by ACNielsen, an urban adult Indian is among the top 10 in the world in terms of frequency of fast-food consumption. The going-out-to-eat culture is evolving fast in India, as more consumers seek variety in their food choices. Urban Indians are aware of international cuisines, and an increasing number are willing to try new foods. About 4.5 percent of urban consumers eat outside of their home at least once a week, and about 12 percent eat out once a month.
Euromonitor International, a market research company, says the amount of money Indians spend on meals outside the home has more than doubled in the past decade, to about US$ 5 billion a year and is expected to double again in about half that time.
Fast food restaurant sectors growth is expected to be stronger in the coming years due to the GDP growth, changing lifestyles and strong income growth. Growing double income families will also help in boosting the eating out option.4. FAST FOOD SECTOR:4.1 ASIA PACIFIC- FAST FOOD CONSUMPTION :
According to the latest ACNielsen Online Consumer Survey, Asians are emerging as the worlds greatest fast food fans. Two thirds of Hong Kongers frequent a take away outlet at least once a week. Price, type of cuisine & locality are the key drivers of choice. McDonalds ranks as the most popular take away globally. According to findings from the latest ACNielsen Online Consumer Survey, nearly all Filipino (99%), Taiwanese and Malaysian (98%) and Hong Kong people (97%) are fast food patrons.
According to the ACNielsen survey, 30% of Asia Pacific consumers eat at take-away restaurants at least once a week, closely behind fast food fans in the US (33%). At the other end of the scale, however, only one in ten European adults eat takeaway once a week.
Asia Pacific, despite 12% claiming never to eat fast food, the region has the most take-away addicts, with 35% reportedly eating fast food at least 3 times a week, to as often as more than once a day. Hong Kong ranks the worlds No. 1 in terms of frequency of fast food restaurant visits followed by Malaysia (59%) and the Philippines (54%).
Europeans appear to be less interested in takeaway food, perhaps due to a prevailing culture of meal times being a social or family occasion, rather than simply a need to satiate ones hunger, while for people in Asia and the US eating takeaway has become way of life. Accordingly, nearly a third of Europeans said they would consider fast food only if there was no time for a proper meal whereas in Asia, only 7% considered this a reason for having take-away.
The ACNielsen survey found that while Breakfast was the least popular occasion for fast food meals across the three regions, it was the most popular in Hong Kong (21%) and made Hong Kong into the worlds No.1 consumer of take-away breakfasts. Americans considered take-away more an option for both lunch (29%) and dinner (48%) while 31 percent of the fast food fans in Europe would take it for dinner.
Type of Cuisine (52%), Price (52%) and a Convenient Location (47%) were found to be the most important choice criteria around the globe.
Brand image has little influenceWhile building a good brand image is close to the heart of most marketers, its worth noting that brand image appears to have little influence on consumers choice of take away restaurants. Across the three regions, Brand Image ranked the least important among all respondents, from as low as 9% in Germany to a high of 18% in Taiwan.
4.2 RESTAURANTS IN INDIAThere are approximately 500,000 restaurants in the organized sector (restaurants with more than twenty seats and restaurant menu), mostly serving ethnic cuisines; this number is expected to grow at about 7-8 percent annually for next few years because of increasing urbanization and increasing disposable incomes. Interna