Retailer's perception PDF

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CHAPTER 1 INTRODUCTION 1 1.1 INTRODUCTION A retailer also percepts the products is same way as consumer does but with a slight differences in use of products. A consumer percept the product from the point of view for final consumption but retailer does percept the product with a view to maximize his...

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CHAPTER 1 INTRODUCTION

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1.1

INTRODUCTION A retailer also percepts the products is same way as consumer does but with a slight

differences in use of products. A consumer percept the product from the point of view for final consumption but retailer does percept the product with a view to maximize his profits. The perception process of retailers also consists of the components like retailer imagery, perceived product quality, perceived service quality, retailer’s attitude and all what a consumer perception consists. The project study deals with the study of dealer’s perception towards iD Fresh Foods (India) Pvt Ltd. Now a days, the food processing industry receives great influence in everyone’s life. Without spices & related food products no one can fulfill their satisfaction in hungry growing demand and high standard of living, the importance of food products has grown to a great level in India. It increased major food products in market potentialities in food processing & marketing sector in India. Here done the study on a company which selling ready to eat food products in the growing market. Ready to Eat Foods that have been prepared so they can be consumed as is, without any additional cooking, are ready to eat foods. Ready to eat foods can be refrigerated, shelf-stable, require minimal heating or are served hot. The ready to eat food products, also called convenience food, are fully or partially cooked when packed. These foods are often refrigerated and have defined food handling guidelines. These foods were initially consumed by who required food in short time and on the travel lines. But now, they have become popular with most of the busy people in modern cities. The major advantages of RTE food products are. These foods never run out of stock as lot of companies have ensured efficient supply lines for good business. They are convenient when you don't have a lot of time and are handy on the go. RTE Cereals are Healthy alternative breakfasts. RTE food is safe enough to be consumed as the companies manufacture these foodservice products under well protected conditions and they are processed under the rules and regulations laid down by the government. The RTE frozen fruits and vegetables can be carried to any place even where these fruits and vegetables do not grow at all. And as these fruits and vegetables are frozen, they do not lose their nutrition value. 2

iD Fresh Foods (India) Pvt Ltd. Is a firm producing daily the ready to eat products with high quality at premium price. And the firm is one of the market leader in all major Indian cities. As we all know perception is something which organize, identify and interpret the matters around with us. Dealer’s perception simply evaluates perception of both wholesalers and retailers towards iD Fresh Food products. It analyses how a dealer perceives, organizes and how a dealer is satisfied in dealing with iD Fresh food products. In this research a fervent appeal has been made to demonstrate and analyze the dealer’s perception towards iD Fresh food products. The main purpose of this research is to explore the dealer’s perception towards iD Fresh food products with special reference to Chennai region. The findings of this report would be useful for the company’s dealer control section to improve their service quality.

1.2

INDUSTRY PROFILE In the daily growing Indian market the ready to eat food products market has a huge

share in the sale of FMCG goods. India’s ready-to-eat (RTE) food market is projected to grow at a CAGR of around 22% during 2014-19. The market is anticipated to grow on account of increasing working population, growing per capita disposable income, rising per capita expenditure on prepared food, increasing middle class and affluent consumers, etc. With the rising employment opportunities and changing lifestyle of consumers, the demand for ready-toeat food products in the country is projected to grow during the forecast period as well. India has a large base of young consumers, who form majority of the country’s workforce. These young consumers hardly find time for traditional cooking due to their busylife styles which further creates significant potential for ready-to-eat food products. Though rising per capita disposable income of consumers, especially upper and lower middle income group, is driving India’s ready-to-eat food market, a large chunk of Indian consumers are still price conscious, which poses a challenge for the ready-to-eat food manufacturers and suppliers. Further minor variation in prices directly affects the preference of brands/products among the Indian consumers. To offset this challenge, major players are increasingly focusing on offering high-quality RTE food products at lower prices.

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Retail chains are the key contributors in increasing the awareness about the ready-to-eat products among consumers. The presence of retail players such as Big Bazar, Easyday, etc., is also contributing towards increasing the demand for ready-to-eat food products in the country. However, as of now, such chains are not vastly present in the semi-urban and rural areas of India. Nevertheless, expansion plans of major retailers across rural and semi-urban areas in coming years is expected to increase consumer awareness and availability of ready-to-eat products in coming years, thereby driving the country’s ready-to-eat food market. The growth in quick service restaurants, increasing population of working women, millennial population, busy work schedules, and retail chains are the key contributors in increasing the awareness about the ready-to-eat products among consumers. The global ready-toeat food products market is segmented by product type, packaging and distribution channel. The meat/poultry segment is projected to account for the largest share by value. In developed countries, food consumption is expected to arise mainly from the slow rate of population growth rather than the excess in per capita consumption. Developing countries, on the other hand, are expected to account for an increased food demand, due to mounting population, as well as surplus per capita food consumption. India has a large base of young consumers, who form the majority of the country’s workforce and are the primary consumers.

1.3

ROLE OF INDUSTRY IN THE ECONOMY The Indian food industry is poised for huge growth, increasing its contribution to world

food trade every year. In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. The food industry, which is currently valued at US$ 39.71 billion!, is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent to US$ 65.4 billion by 2018. Food and grocery account for around 31 per cent of India’s consumption basket. Accounting for about 32 per cent of the country’s total food market, The Government of India has been instrumental in the growth and development of the food processing industry. The government through the Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage investments in the business. It has approved proposals for joint ventures (JV), foreign collaborations, industrial licenses, and 100 per cent export oriented units.

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The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. The Indian food retail market is expected to reach Rs 61 lakh crore (US$ 915 billion) by 2020.The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 14 per cent of manufacturing Gross Domestic Product (GDP), 13 per cent of India’s exports and six per cent of total industrial investment. Indian food service industry is expected to reach US$ 78 billion by 2018.The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent. India's organic food market is expected to increase by three times by 2020. The online food ordering business in India is in its nascent stage, but witnessing exponential growth. The organized food business in India is worth US$ 48 billion, of which food delivery is valued at US$ 15 billion. The organized food business has a huge potential and a promising future. The online food delivery industry grew at 150 per cent year-on-year with an estimated Gross Merchandise Value (GMV) of US$ 300 million in 2016.

1.4

COMPANY PROFILE iD Fresh Foods (India) Pvt Ltd. is a supplier of packed idli/ dosa batter, chapati, malabar

parota, wheat parota, curd and paneer. The firm started by PC Musthafa a IIM graduate, Shamsudheen TK, Abdul Nazer, Jafer TK, Noushad TA as a start up in 2006 at Bangalore. The firm is running as a private limited company. iD Fresh Food's Headquarters are located at Doddanakundi Industrial Area 2, Phase 1, Doddanekkundi, Bengaluru, , IN 560048. It has raised $30.7M in 2 rounds. And the having regional offices in the following major cities. 

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Chennai

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Hyderabad

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Mysore

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Kochi

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Mumbai

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Pune

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Mangalore

And in Dubai 5

The company, which made 10 packets of one kilogram batter a day in 2005, manufactures 50,000 packets a day now and has grown into a team of 1,300 employees who work at their units in Bengaluru, Chennai, Pune, Mumbai, Delhi, Hyderabad and Dubai. iD Fresh Food, a private limited company, was founded in 2005 by Mustafa and his four cousins - Abdul Nazer, Shamsudeen TK, Jafar TK and Noushad TA. Mustafa holds 50 per cent share in the company and his cousins hold the rest. It would be difficult to imagine now that Mustafa’s rise from an impoverished childhood to a successful entrepreneur might have been marred, and he could have ended up as a daily wager just like his father. Bengaluru-headquartered iD Fresh Food, which began operations in 2006 as a small store, is also experimenting with wet sambhar and chutney pre-mixes that customers can finish cooking quickly at home but does not have a definite launch date for those yet.But chutneys haven’t worked out too well for iD Fresh Food in the past. It had launched traditional tomato and coriander chutneys one-and-a-half years ago but withdrew those products from the market six months ago. The company earned revenue of Rs100 crore in the financial year 2015-16. While it initially expected to hit Rs170 crore in 2016-17, after demonetisation it expects to close the year at Rs 150 crore. It is targeting Rs250 crore in the next financial year and Rs 1,000 crore by 2020. The company is also planning to export to markets like the US and the UK this year but termed that as an experiment and said the focus still remains on India. Outside India, iD Fresh Food’s largest market right now is Saudi Arabia. Within India, it recently began operations in Vijayawada, Visakhapatnam and Rajahmundry and is planning to get into Ahmedabad in the next three to four months. “ It’s food only food” iD Fresh Foods is the company which providing ready to cook and ready to eat foods for the above listed Indian and UAE markets. The company is providing freshest ingredients, traditional recipes, and the highest standards of hygiene are what make iD products stand apart. There is zero percentage of preservatives or chemicals added which is why our products have a lower shelf life. We don't make them to last a long time on product aisles in supermarkets. We make them for you to serve authentic and natural food to your family every day. The company 6

providing the natural, authentic, homemade, preservatives free food in the market in a daily basis. As we already discussed iD Fresh Foods providing high quality price in the market but they are charging premium price for their products. And they using premium quality raw materials. And they promising that they are preparing the products just like we make at home. The company having a good team in all areas of functioning, like marketing, production, managing etc. In India, its biggest markets are Bengaluru, Chennai, Hyderabad and Mumbai in that order. But the firm expects that order to change to Chennai, Mumbai, Hyderabad and Bangalore in future since an average Bangalorean eats idly dosa only three to four times a week while the average Chennai consumer does so five times a day. Still, Chennai is one of the harder markets for the company to crack considering the average household is more inclined there than in other cities to prefer homemade batter. But Musthafa is confident that the conversion will happen. 1.3.1 Vision To become a fresh food brand, admired and trusted the world over. To grow into a 1000 crore market leader. To become one of the best and most sought-after companies to work for.

1.3.2 Mission To make the preparation of home-made meals a pleasure.

1.3.3 Values Speed We produce and deliver fresh food to our customers every single day. Simplicity We are a lean, efficient organisation that makes quick decisions and are easy to do business with. 7

Authenticity We take great pride in our home-made style of preparation in ultra-hygienic, HACCP compliant factories. We will never add preservatives, chemicals and artificial flavours to our 100% natural food. Integrity We believe in complete transparency and fairness in all our interactions and transactions with our customers, employees, stakeholder, partners and associates. We always stay true to the law. 1.3.4 Channels of Distribution A channel of distribution is the path through which the product moves from the place of production to the place of consumption. A channel of distribution refers to the process or intermediaries through which the goods move from the producers to ultimate consumers. It represents a chain of middleman participating in the distribution of goods. The company distributes its products through retailers.

Company

Sales man

Retailers

Customers 8

1.5 Product profile ID IDLY AND DOSA BATTER

iD Fresh batter is freshly ground and packed every single day. Only the finest quality rice, urad dhal and methi seeds with RO-purified water go into it. We add a pinch of low sodium salt and absolutely no preservatives or soda

ID UDUPI -STYLE IDLY BATTER

iD Fresh new batter with rava is perfect for you. Made with the same love and care as classic iD batter but for a new, delicious style of idlies. 9

ID JUST HEAT WHOLE WHEAT CHAPATI

Finest quality, wholly natural atta is used to make iD Fresh chapatis. iD Fresh knead the dough just right, so that the chapatis stay soft and fluffy from tava to plate.

ID JUST HEAT WHOLE WHEAT PAROTA

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Delicious whole wheat parotas, now served in your kitchen. The next time you crave for yummy parotas, walk into a store instead of a restaurant. Grab a pack of iD parotas and get ready to wolf down healthier, tastier, crispier parotas.

ID JUST HEAT MALABAR PAROTA

For the first time in your home, home-made parotas, The next time your kids bug you for parotas, make a short trip to your kitchen. Snip open a pack of iD parotas, add your love and serve them hot and crispy, on the spot. ID JUST HEAT WHOLE WHEAT PAROTA JUNIOR

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Good things come in small sizes too. Our healthy, whole wheat parotas now in a snackfriendly, tiffin box-friendly, gobble-friendly size. Dip them in sauce, dab on a spread or douse in your special curry.

ID JUST HEAT MINI PAROTA

Mini size, same great taste. Classic malabar parotas in a new easy-to-eat size. They are great with curries or sauces or just about anything you can think of. ID NATURAL PANEER

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Paneer made with lime, not acid. iD fresh creamy-soft paneer is made the natural way. No acid, no emulsifiers, just wholesome pasteurised milk. It's perfect for your favourite curries, grilled or as delicious melt-in-the-mouth starters.

ID NATURAL CURD

Fresh curd from fresh milk. Curd has the natural power to turn any food into a comfort food. Try iD Fresh freshly packed curd made from pure milk using zero chemicals. It's pure, healthy and tasty.

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CHAPTER 2 LITERATURE REVIEW

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2.1 LITARATURE REVIEW Introduction A literature review is a description of the literature relevant to a particular field or topic. This is often written as part of a thesis proposal, or at the commencement of a thesis. A critical literature review is a critical assessment of the relevant literature Literature covers everything relevant that is written on a topic: books, journal articles, newspaper articles, historical records, government reports, theses and dissertations, etc. The important word is 'relevant'. A literature review gives an overview of the field of inquiry: what has already been said on the topic, by the key writers. It also gives an idea about the prevailing theories and hypotheses. The review also specifies what questions are being asked, and what methodologies and methods are appropriate and useful. A critical literature review shows how prevailing ideas fit into the thesis and how the thesis agrees or differs from them. Human being are with full of curiosity and this draws them towards finding the facts. Knowing the facts requires the researcher to understand and get indepth knowledge of the topic. The selection of the topic was on the basis of the current scenario in the society. After selecting the topic the researcher tried to conduct a complete study of the available literature to know the past, present scenario and also to understand the future trend. Literature review also helped the researcher to know of the deviations in the present study and if possible to give certain remedial measures. In a literature review, the central focus is on establishing and evaluating what has been said before, on the research subject and establishing the relevance of this information to the present research. It enables the researcher to identify what has not been said in the literature on a subject. It also permits the researcher to discuss the methodologies that have been used in the literature and how these relate to the chosen method.

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The review of literature of this study is as follows... Vera and Madam (2011): in a study conducted in Indian context high lightened that dealers are offering new service dimensions to create unique shopping experiences for the customers. They emphasized the fact that Indian dealership environment is going through a sea change due to the introduction of new formats and opening up of retail industry. Ghost, Tripathi and Kumar (2010): in their study conducted in Indian context, attempted to address issue related to store attributes and their relevance in the store format selection. Eleven variables had been identified based on the theory and judgment. The factor identified and recommendations made would be of great use to retailers in designing their outlets with store attributes that would meet the expectations of shoppers and thus ...