HMR Profiling_ Research Project

7/31/2019 HMR Profiling_ Research Project

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Research ProjectBusiness Research Methods

Profiling of Home Meal Replacement ProductUsers

Submitted by:Ankur Arora (111)

Neha Mishra (131)


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INDEX

1. Abstract..................................................................................................................3

2. Introduction............................................................................................................3

3. Review of Literature...............................................................................................3

4. Research Objective................................................................................................4

5. Theoretical Framework..........................................................................................4

6. Testing of Hypothesis.............................................................................................5

7. Methodology...........................................................................................................5

8. Data Analysis..........................................................................................................5

9. Conclusion & Recommendations..........................................................................9

10.Appendix...............................................................................................................10

11.Sample Questionnaire..........................................................................................13

12.Reference...............................................................................................................15


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AbstractThe popularity of ready to eat packed food and Home meal replacement products now no

longer marks a special occasion. In 21st century time is at a premium and people seek value

money in terms of quality and variety too. The food processing industry is one of the largest

industries in India and it is the ranked fifth in terms of production, consumption, export &expected growth. Indian Government is providing more and more perks for this sector. Excise

duty is now 0 % on these products along with 100 % tax deduction for the first 10 years for new

units. The HMR & ready to eat foods do not require rehydration or cooking and can be

consumed straight from the pouch with or without pre-warming, depending upon the

requirement of the users and the weather conditions. These foods meet the specific needs of

convenience, nutritional adequacy, shelf stability, storage and distribution and have become

very popular.

IntroductionHome Meal replacement is portable, high quality food that can be fully or partially cooked. They

are synonymous to Ready to eat food and are different from traditional 2 minutes noodles. With

the advent of globalization the consumption of these products have increased by leaps and

bounds especially in metropolitan and Tier-I cities.

Review of LiteratureEuromonitor International, a market research company says that amount of money Indians

spend on ready to eat snacks ,food and Home Meal replacement products is 5 billion US $ in a

year. Ready to eat packaged food industry is over Rs. 4000 crore or 1 billion US $ and it is

growing at the rate of 20 % per annum.

Mckinsey & Co in one of its reports says that from 2006-2010 60% of all the food sales growth

in Indian metropolitan cities came from this segment and it has been the most important trend

to hit the food industry since advent of frozen food

The main factors affecting their popularity in Indian market are

1) Globalization of Indian food and its culture are the core factors for popularization of ready to

eat foods.

2) Retail outlet culture is now growing rapidly in India.

3) Shelf life of these foods is at least 12-18 months.

4) Quality, taste and flavour of these foods remains fresh up to the expiry date.

5) Women wanting to spend more time out of the kitchen.

6) More working bachelors staying away from homes.

Leading players in this segment are HUL, MTR, Kohinoor Foods and ITC. But yet due to thepresence of many regional players nobody has been able to command a large market share.


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Moreover nobody has been able to fully understand the consumer needs and introduce relevant

products. No company has created a niche for itself amongst customers instead the offerings

have been very generic across all brands.

Research Objectives To assess the factors which effect HMR consumption in India

To identify target segment for launch of HMR based on psychographic and demographic

factors

To identify if there is a need for a new product offering and if there is then devise a

concept statement for it.

Theoretical FrameworkWe have defined our theoretical framework in the following manner :

THEORETICAL FRAMEWORK

HMR Consumption Per

month

Income level

Working hours

Age

Marital Status Perception based on

Health, Taste & Price

Ease of availability

Cook in the

house

Independent Variables Dependent Variables

Intervening Variables

Moderating Variables


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Testing of HypothesisH0 : Income level of a person and his/her perception of the HMR product being

overpriced are dependent.

MethodologyThe data was collected with the help of a survey. Our survey consisted of 10 questions. These

questions were based on the variables mentioned above in the theoretical framework.

The sampling method was judgement sampling. Survey was conducted from respondents inAndheri, Santa Cruz, Juhu, Vile Parle , Gurgaon and NMIMS ( faculty members ). We surveyed in

food malls at these places as we were targeting the upper and middle income level groups of

the population who generally consume these products. Our assumption behind this judgement

was that this segment consumes a lot of HMR food products.

Data AnalysisResearch Hypothesis 1 :

H0 : Income level of a person and his/her perception of the HMR product being

overpriced are independent

H1 : Income level of a person and his/her perception of the HMR product being

overpriced are dependent

Conclusion :

At 90% confidence level and degree of freedom equal to 5, H0 is rejected because chi

square expected (table) < chi square observed. Hence, income level of a person and

his/her perception of the HMR product being overpriced are dependent [Refer Table in

Appendix 2]

We analysed our data to find out the correlation between income levels and health levels.

Core users have been defined as those respondents who consume HMR more than twice in a

month.

Non core users have been defined as those respondents who consume HMR less than twice in a

month.

We first found out the proportion of core consumers who find HMR foods fresh. Core consumers

are defined as the number of consumers who have HMR foods more than twice in a month. Non

-core users are consumers with low consumption patterns.


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Next we found out the proportion of core users who think it is healthy.

Fresh71%

NotFresh29%

Consumption vsFreshness

(core users)Total no. of respondents=

49Fresh29%

NotFresh71%

Consumption vs Freshness(non core users)

Total no. of respondents= 42

Healthy43%Not

Healthy57%

Consumption vs Healthy(core users)

Total Number ofrespondents= 49

Healthy21%

Nothealthy

79%

Consumption vs Healthy(non core users)

Total number of respondents=42


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After getting these results, we found out the correlation between salary vs consumption.

Our salary range is defined as below

1) Less than 25000

2) 25000 40000

3) 40000 50000

4) 50000-60000

5) 60000-75000

6) More than 75000

We found out that the correlation between income and consumption to be .781845 in theincome range 25000 60000 indicating that the consumption rises with income in the

moderate income level.

Next, we found out the correlation between income levels and freshness

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.090.0

1 2 3 4 5 6

%ageconsumptionofHMR

Salary

Salary vs Consumption

33

34

35

36

37

38

39

40

1 2 3

Income

Fresh

Income vs freshness


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Correlation between perceived freshness and income levels 0.985682 which indicates thatwith rising income levels, people perceive HMR foods to be fresher. Here, we combined the

income groups as follows

1) Less than 40000

2) 40000-60000

3) 60000 and above

The next correlation we focused was between income and health.

Correlation between income and health is 0.99 up to income level of 50000 which indicates

that with rising income levels, people perceive it to be healthier.

After this we went to a new set of 100 respondents to carry out a believability study. All therespondents we approached were either known to us (online social networks) or lived in ourneighbourhood (same locality and housing societies) thus the sampling method employed wasconvenience sampling.

We gave them the under mentioned statement.A product that is a home meal replacement product and offers you exotic world cuisines likeMexican, Arabian, Russian, Thai and Mediterranean that are healthy ,tasty and offer morevariety than traditional Indian HMR offerings ( chole, shahee paneer, upma, mashed aloo etc )at a price/unit servings that is comparable to traditional Indian HMR.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

1 2 3 4 5 6

%r

epsondents-Healthy

perception

Salary

Income vs Health perception


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Then we asked them to express their choices on a Likert scale. The responses were

As 86 % responded favourably so we can deduce that idea scores well on believability front.

We also found out that

73 % of Core users feel that year by year they are finding lesser time to cook or assist in

cooking due to hectic work schedule

61 % of total users dine outside despite knowing that sometimes its a very expensive

proposition due to lack of variety in home-made cuisines

58 % of total users are doubtful about the freshness of vegetables and fruits bought from

market

Conclusion and RecommendationFrom our analysis we can clearly deduced that freshness quotient and health quotient are the

primary factors that drive consumption of HMR products in India. We also found out that the

target segment should be the upper middle class segment as they have a higher per capita

consumption in comparison to the mass and premium segment. Thirdly, if a company launchesa new HMR product that brings world delicacies to Indian Table and price it correctly and if the

product is pitched as tasty yet high on freshness and health front than it has a great market

potential in Indian market.

8

76

106

Response

Highly Probable

Probable

Improbable

Highly Improbable


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APPENDIX

Appendix 1Raw Data of the survey

Question ->RespondentNumber

2 3 4 5 6 8 9(a)

9(b)

9(c)

10(a)

10(b)

10(c)

10(d)

1 4 2 3 2 1 2 2 1 1 2 2 1 2

2 4 3 1 1 2 6 1 2 2 2 1 1 1

3 1 1 2 4 3 1 1 1 2 2 1 3 1

4 3 2 1 1 2 6 2 2 2 2 2 2 1

5 4 2 4 1 1 6 1 2 2 1 2 1 1

6 3 1 2 1 2 1 1 2 2 3 1 1 2

7 2 3 3 2 2 2 1 1 2 3 1 2 2

8 2 1 2 2 2 6 2 2 1 3 2 3 1

9 4 2 3 1 2 6 2 2 2 3 2 1 1

10 4 2 4 2 1 4 1 3 1 3 3 1 1

11 4 3 3 2 2 6 1 3 2 2 1 2 2

12 3 2 4 1 2 6 1 2 2 3 2 2 1

13 1 1 1 1 3 1 2 2 3 2 2 2 214 2 2 4 3 2 5 3 2 2 3 3 2 1

15 2 2 1 1 2 6 2 2 2 2 2 2 2

16 3 2 1 2 2 6 2 1 1 2 2 1 1

17 2 2 3 2 2 4 2 2 2 2 3 2 2

18 3 1 3 1 2 2 1 2 1 1 3 1 1

19 1 2 2 3 2 2 1 1 3 1 1 1 2

20 2 2 1 2 2 5 1 1 2 1 1 2 2

21 4 2 3 2 1 6 1 1 2 3 3 2 1

22 4 2 3 1 2 5 2 2 2 3 2 3 2

23 3 2 3 1 2 6 2 1 1 3 2 1 1

24 1 1 3 1 2 2 2 2 1 2 1 1 1

25 2 2 1 2 2 1 1 1 2 1 1 1 2

26 2 2 3 2 2 2 2 2 2 1 3 1 1

27 1 1 2 2 3 3 2 1 2 1 1 1 2

28 4 2 3 1 1 3 2 2 1 1 2 3 2

29 4 2 3 2 1 6 1 2 1 1 1 2 1

30 1 1 2 1 2 1 1 2 2 3 1 1 2

31 2 3 3 1 2 1 2 2 1 3 1 3 1

32 2 1 2 1 2 1 1 1 2 3 3 3 133 3 2 4 1 1 5 1 1 2 1 2 1 2


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34 1 1 2 2 3 2 1 1 2 2 1 2 2

35 3 1 2 1 2 5 2 2 1 1 3 3 2

36 2 1 2 1 2 4 2 2 2 3 2 2 1

37 1 1 1 1 2 2 2 2 1 1 3 3 1

38 3 2 4 1 2 6 2 2 2 1 3 2 2

39 4 2 4 3 2 4 1 1 1 1 2 2 1

40 2 1 4 2 2 3 1 1 1 2 2 1 2

41 2 2 1 1 2 5 1 1 1 1 1 2 1

42 2 1 1 2 2 5 2 2 1 1 2 1 1

43 2 2 3 2 2 6 2 2 2 1 3 1 3

44 1 1 2 2 3 4 2 3 2 2 2 1 2

45 4 3 4 1 1 6 1 2 2 1 2 1 2

46 3 2 3 2 2 4 1 1 2 1 1 1 2

47 1 1 2 1 3 6 2 2 1 1 2 2 1

48 3 1 2 2 2 1 2 2 1 1 2 1 149 3 1 2 2 2 1 2 2 1 1 2 1 1

50 1 1 2 4 2 6 1 1 2 1 1 1 2

51 3 1 2 2 2 1 2 2 1 1 2 1 1

52 3 2 4 2 2 3 1 1 2 1 1 1 2

53 4 1 4 2 1 3 1 1 1 1 1 2 1

54 1 1 2 1 2 5 2 1 2 1 1 2 2

55 1 1 4 2 2 3 1 2 1 1 2 2 2

56 1 1 2 2 3 6 2 2 1 1 2 2 1

57 1 1 2 1 3 5 2 2 2 1 2 2 2

58 1 1 2 1 3 3 2 2 2 1 2 2 2

59 2 2 4 2 3 5 2 2 2 1 2 1 2

60 1 1 2 2 3 5 1 2 1 1 2 1 1

Appendix 2Household Income

(per month)

%age of Respondents consuming HMR

more than 2 times a month

75,000 40.9

*A positive correlation of 0.78 exists between household income and %age

respondents consuming HMR upto 50-60,000 income level.


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Household Income

(per month)

% of respondents considering HMR

as fresh

60,000 39

*A positive correlation of 0.99 exists between perceived freshness and income level.

Appendix 3

Consumption of more than 2 times per month

Total Fresh Not Fesh

49

Number of respondents 35 14

%age 71 29

Healthy Not Healthy


%age 43 57

Consumption of less than 2 times per month

42

Fresh Not Fesh

Number of respondents 12 30%age 29 71

Heathy Not Healthy


%age 21 79


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SAMPLE QUESTIONNAIRE

1. How many of the following Home-Meal Replacement brands are you familiar with?MTR Ready-to-eat

ITC Kitchens of India

Moti Mahal

Britannia

Others, please specify ___________________________

2. What is your Age?

3. What is your Marital Status?

4. Who cooks food at your House?Maid

Parents

You/Spouse

Combination of Maid and a Family member

5. How many times do you indulge in Home-Meal Replacements in a month?


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6. Which of the following categories do you belong to?Non-working/House-wife

Working professional

Student

Others, please specify ________________________

7. What are the working hours (no. of hours and shift timings) for you & your spouse?No. of hours Shift Timings

You __________________ ___________________

Your Spouse __________________ ___________________

8. What is your Household Monthly Income?

9. What is your perception about Home-meal Replacements? Are they fresh?

Are they healthy?

Are they over-priced?

10. Compared to traditional 2-minute noodles, please choose the suitable option for HMR:

Ease of availability


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Health Quotient

Taste Quotient

Price

References:http://www.referenceforbusiness.com/history2/22/Atlantic-Premium-Brands-

Ltd.html_03/04/2012

http://ageconsearch.umn.edu/bitstream/14310/1/tr98-01.pdf _03/04/2012

http://www.clsbe.lisboa.ucp.pt/docentes/url/anacosta/livro/AIAC_Foodmicro99.pdf_03/04/2

012

http://www.clsbe.lisboa.ucp.pt/docentes/url/anacosta/livro/AIAC_Foodmicro99.pdf-

03/04/2012

http://www.packagedfacts.com/sitemap/product.asp?productid=112820_03/04/2012
http://www.referenceforbusiness.com/history2/22/Atlantic-Premium-Brands-Ltd.htmlhttp://www.referenceforbusiness.com/history2/22/Atlantic-Premium-Brands-Ltd.htmlhttp://ageconsearch.umn.edu/bitstream/14310/1/tr98-01.pdfhttp://www.clsbe.lisboa.ucp.pt/docentes/url/anacosta/livro/AIAC_Foodmicro99.pdf_03/04/2012http://www.clsbe.lisboa.ucp.pt/docentes/url/anacosta/livro/AIAC_Foodmicro99.pdf_03/04/2012http://www.clsbe.lisboa.ucp.pt/docentes/url/anacosta/livro/AIAC_Foodmicro99.pdf_03/04/2012http://www.clsbe.lisboa.ucp.pt/docentes/url/anacosta/livro/AIAC_Foodmicro99.pdf03/04/2012http://www.clsbe.lisboa.ucp.pt/docentes/url/anacosta/livro/AIAC_Foodmicro99.pdf03/04/2012http://www.clsbe.lisboa.ucp.pt/docentes/url/anacosta/livro/AIAC_Foodmicro99.pdf03/04/2012http://www.packagedfacts.com/sitemap/product.asp?productid=112820_03/04/2012http://www.packagedfacts.com/sitemap/product.asp?productid=112820_03/04/2012http://www.packagedfacts.com/sitemap/product.asp?productid=112820_03/04/2012http://www.clsbe.lisboa.ucp.pt/docentes/url/anacosta/livro/AIAC_Foodmicro99.pdf03/04/2012http://www.clsbe.lisboa.ucp.pt/docentes/url/anacosta/livro/AIAC_Foodmicro99.pdf03/04/2012http://www.clsbe.lisboa.ucp.pt/docentes/url/anacosta/livro/AIAC_Foodmicro99.pdf_03/04/2012http://www.clsbe.lisboa.ucp.pt/docentes/url/anacosta/livro/AIAC_Foodmicro99.pdf_03/04/2012http://ageconsearch.umn.edu/bitstream/14310/1/tr98-01.pdfhttp://www.referenceforbusiness.com/history2/22/Atlantic-Premium-Brands-Ltd.htmlhttp://www.referenceforbusiness.com/history2/22/Atlantic-Premium-Brands-Ltd.html

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