LAKSHYA INTERNATIONAL JOURNAL OF RESEARCH IN MANAGEMENT STUDIES

12, Shivam Nagar 1st, Jagatpura, Jaipur – 302017. Rajasthan. e-mail:

March 2017, Volume 2, Issue 1ISSN: 2456-2823

Effectiveness of Structure and Marketing of Indian Branded Food

in comparison to Foreign Branded Food

Tanmay Agarwal* Yash Raj Thapan** Dr. Ankur Kumar Rastogi***

* Student, BBA (Auto Marketing), 3rd year, CoMES, University of Petroleum & Energy Studies, Dehradun

** Student, BBA (Auto Marketing), 3rd year, CoMES, University of Petroleum & Energy Studies, Dehradun

*** Asst. Professor (SS) & Program Head, CoMES, University of Petroleum & Energy Studies, Dehradun

Abstract

This exploration endeavors to concentrate on the bundled sustenance’s showcase in the lucrative Indian market. The study gives a diagram of the Indian bundled sustenance advertise. Advertise pioneers in the Indian bundled nourishment showcase in the six distinct classes of bundled sustenance’s are contemplated. Variables, for example, the market pioneers, piece of the pie, elements impacting purchasing, enter drivers in the bundled sustenance market and fate of the bundled nourishments in India are a portion of the essential parts of the exploration. To comprehend the fruitful advertising systems and the part of promoting procedures in organization's prosperity, an organization investigation of ITC Foods from the perspective of showcasing is finished. Real data hotspots for the exploration is the interior and outside information accessible on the web. Significance of Innovation and focused system in the arrangement of promoting blend of ITC Foods is firstly examined. The viability of legitimate execution of the promoting blend is then considered with the assistance of different advertising speculations and models propounded by showcasing researchers. The discovering, proposal of advertising procedures and the future on bundled sustenance’s in India are expressed. This study tries to give a photo of the ebb and flow advertise situation of the Indian bundled and Instant nourishment industry and the showcasing methodologies utilized by the organizations.

Keywords: Indian food, foreign food, digital marketing, Indian bundled, instant nourishment industry

Introduction

The Indian Packaged sustenance industry is seen in a mind boggling and dynamic environment. The exploration starts by comprehension the Indian Packaged nourishment advertise. A plan of the buyers, their requirements, the items in the Indian Market will be painstakingly broke down. The later part of the exploration clarifies the positioning of the market pioneers in the market and the promoting methodologies embraced by them to catch the lucrative packaged nourishment advertise. Aside from the Mighty 4 P's there are numerous different components which assume a critical part to design a system in a manner that it is adaptable to the situations influencing the business and industry. To give some examples Situation investigation, promoting strategies, showcasing spending plan, asset designation, operational course of events and so on. Advancement methodologies utilized as a part of the nourishment business will be concentrated on, uncovering an improper concentrate on inside information. Packaged Foods the expression "nourishment" implies the synthetic substances devoured by the human body with a specific end goal to keep the body in a dynamic and solid condition. The body needs sustenance for its development, repair, substitution and treatment of the well-used out tissues. In this way, sustenance needs to convey the required vitality, crude material, and other managing constituents, similar to minerals and vitamins, for the effective and smooth working of the body, aside from satisfying the calorific needs like protein, fats, sugars, and so forth., Oxford Advanced Learners Dictionary characterized moment nourishment items as "Moment sustenance items which are arranged and bundled regularly in controlled frame are required just the expansion of a fluid as water or drain for definite readiness". The Instant sustenance items, which started in Japan with Instant noodles had its start in India in 80's, are discovered today in the kitchen racks of each Indian family unit. The headway of science and innovation offered the general population new sustenance’s handling vessels. India being the world's succeeding significant maker of nourishments after China, is anticipated from being greatest sustenance industry with agrarian and nourishment segment contributing 26 for every penny to Indian GDP. It has the limit of delivering more than 700 million tons of sustenance items consistently; is relied upon to be multiplied of what it is in the coming ten years. Nourishments has the biggest partake in customer consumptions in India. Nourishments and sustenance items mean more than 53 for each penny of net private utilization. The stake in costs is significantly more than in created nations, where customer spending for sustenance and their nourishment items whole up to around 20 for each penny. ( 2010). 1.4 Indian Food Processing industry India saw fast financial development controlled by monetary changes amid the period of 2004 to 2007. FDI inflow expanded and GDP development was at 8-10 for each penny amid the period. The worldwide financial downturn seen in 2008 deeply affected the economy with mechanical yield backing off and swelling expanding by two rate focuses over the earlier year to 8.3 for every penny. Be that as it may, genuine GDP development still stayed as solid as 7.3 for each penny. With India's immense populace base, relentless full scale financial environment and an ascent in working class populace, handled sustenance’s has been one of the quickest developing fragments in the Indian market. Fast way of life change, particularly in the urban regions, has created a dramatic ascent in the interest for bundled, handled, prepared to-eat nourishments and sustenance items.

Review of Literature

Elliot and Thrash (2002) stated that the consumers’ intention to buy products depend upon various factors including the desire, perception, past experience, the features of goods and services among other tangible and intangible traits concerned with the individuals. Prasad and Aryasari (2010) stated that domestic players too introduced fast food to the local customers in accordance to the prevailing eating habits, tastes and preferences. Although quality control in general and HACCP in particular have been used in manufacturing industries for decades, they are clearly ineffective and almost totally incapable of detecting food safety defects that occur at a low incidence (ICMSF, 2002). Coming out with detailed proof of this is September (2005), who reports that the global use and success of the HACCP system in the food processing industry has created a false expectation that it could be used successfully in all steps of the food supply chain. However, this is not necessarily true. There has been a lack of defining of critical control points (CCPs), which have the function of eliminating or controlling identified hazards. As a result, there is no effective use of HACCP in all steps of the supply chain. In order to ensure food safety in the supply chain, it is necessary to combine prerequisite programs along with HACCP, rather than only CCPs taken from an HACCP system. Although quality control in general and HACCP in particular have been used in manufacturing industries for decades, they are clearly ineffective and almost totally incapable of detecting food safety defects that occur at a low incidence (ICMSF, 2002). Coming out with detailed proof of this is September (2005), who reports that the global use and success of the HACCP system in the food processing industry has created a false expectation that it could be used successfully in all steps of the food supply chain. However, this is not necessarily true. There has been a lack of defining of critical control points (CCPs), which have the function of eliminating or controlling identified hazards. As a result, there is no effective use of HACCP in all steps of the supply chain. In order to ensure food safety in the supply chain, it is necessary to combine prerequisite programs along with HACCP, rather than only CCPs taken from an HACCP system.

Research Methodology

This study is based on the secondary research. The secondary data has been collected through the Journals, Magazines, and other print media as case studies, literatures of companies.

Data Analysis and Interpretation

There are brands and logos present all around us, starting from the wine we consume to the clothes we wear, in the billboards along the interstate, to the advertisements which don the buses, subway and yellow cabs (Hampf & Lindberg-Repo, 2011). Branding has proven to be an essential strategy for marketing even in noncommercial organizations like political outfits and charities. It can be utilized for enhancing the profitability of actors, sports personalities, celebrities and also cities (Moor, 2007). Branding is considered as a separate industry which acts as a key mechanism to enable the smooth functioning of a market-oriented economy (Moor, 2007; Henderson & Arora, 2010). Some brands of specific countries are considered superior to others in countries which raised the question of effect on homogenization of culture (Moor, 2007; Bastos & Levy, 2012) but the brands help create a working identity for a product influencing consumers’ purchase intention. 16 Brand and advertising walks in continuum with each other creating a composite industrial environment; this continued focus on advertising has given rise to a functioning cultural economy at the expense of other forms of promotion (Du Gay & Pryke, 2002). Branding converts a certain commodity into a self-promotional form which creates an insatiable desire among consumers who want to procure it (Lury, 1993). Before delving into further discussion about brands and how they help to generate revenue for brands and corporations, we should understand the proper definitions. A brand is a name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers (American Marketing Association Dictionary, 1960). The word "brand" is derived from the Old Norse brand meaning "to burn” which refers to the practice of producers burning their mark (or brand) onto their products. The concept of brands is not new but comparatively branding a brand is a product derived from the start of modern globalization at the end of the Cold War. It was actually during the 1990s, that a previously essential set of practices – product design, retail design, point-of purchase marketing came together to be known as branding (Bastos & Levy, 2012). The effects of branding caught the unfettered attention after the publication of Naomi Klein’s (2000) No Logo which created interest among scholarly circles to research more and more on this concept. Promotional activities of brands and corporations have always been subjected to public criticism and activism but Klein’s book dealt more about identifying new avenues and creating guidelines for innovative scope of marketing activity and to connect these to the ongoing globalization of labor markets and analyzing its after-effects (Moor, 2007). There is another definition which also defines brand as a unique property of a specific company 17 which has been developed over a certain time period enabling it to embrace a defined set of values and attributes which meaningfully helps a consumer identify products otherwise would resemble the similar attribute (Murphy, 1990). The perpetual rise of branding can be attributed as a method of a more reflexive capitalism (Thrift, 1997) where a market is created for the commodity to make the consumers slowly but steadily conform to the structures presented in the concept envisaged by the certain company or brand. The analysis showed that consumers are bound towards the fast food and it is also easy to consume and saves time so these MNC,s are earning more and more number of profits. These MNC,s provide deep frozen and packed foods which can be carried away for a long time and can be consumed after a certain time period and consumers think that these are fresh. These organization mainly make their food more qualitative by enhancing its taste and by adding more spices to it, they also work upon their brand strategies towards the mindset of consumers.

As in above figure you can see the completion between the major players of food branded your country in india, but there is not a single indian food brand to compete which is a major loss for our country. Our prime minister also said that if you want to upgrade your country than enhance yourself “make in India” is his mission which means that build in India and sell in India, so that there would no unemployment and no MNC could cut their share margins and earn profits. If Indian food brands start advertising and promoting their brands and try to understand the taste and preferences of consumers, Indian food brands would create a huge completion in the market and these foreign food brands shall have to step out of the nation. There are some of the major players in our country like Moti Mahal, Haldirams, Bikanerwala, Dabbawala these are major playors of India but in certain cities as they are not like brands of that level. To being a brand they have to apply these market strategies and promote themselves that would increase their preference.

Factors Affecting Behavior of Consumers towards Foreign Food Brands

Convenience

  • Fast food saves a lot of time for customers.
  • They prefer going to fast food restaurants due to their proximity.
  • Fast food simplifies their life
  • Fast food is easy to get to.
  • Fast food restaurants are open until late at night.
  • Fast food is quickly prepared.
  • Fast food is very practical.

Brand Name Reputation

  • A global fast food brand is trustworthy in every aspect.
  • Consumers prefer not to eat at unfamiliar brands of fast food restaurants.
  • A global fast food brand provides better quality food.
  • A popular branded fast food restaurant has a positive effect on my consumption.
  • It is important to be a strong, well-known brand in the fast food industry

Cost

  • Fast food is inexpensive.
  • Fast food is a cheaper option compared to alternative food outlets.
  • Consumers get good value for my money.
  • “Get two meals for the price of one” promotions increase the fast food consumption.

Consistency

  • Consumers feel safe knowing that a global fast food restaurant serves a consistent menu with a consistent taste in every branch it operates.
  • They prefer global fast food restaurants due to the standard, consistent menus they serve.
  • The standard, consistent menus at global fast food restaurants increase my overall fast food consumption.
  • Every branch of global branded fast food restaurant has consistent service ability

Quality

  • Global branded fast food restaurants are higher in quality.
  • Global branded fast food restaurants use high quality ingredients in their meals.
  • Global branded fast food restaurants are more reliable

Suggestions

Indian brands can rule the market easily if they properly make startegies and promote themselves. The foreign food brands are just the baked foods and the advertising is their main asset. Indian food brand should start taking this step towards our nation and start building their brand and try to give a huge completion to these foreign food brands. They can understand the mindset of consumer and their taste and preferences and also by understanding the strategies used by these foreign food brands. They could also use the same strategies towards their brand. It’s not like that people don’t like Indian food they only focus on fast food as it is easy to digest and eat. Indian food is best food in whole world its just who know how to sell it. Try to make some new offers and schemes which grab the attention of the consumers.

Conclusion

Hypotheses for this study were supported in favor of the European brand leading over American and local brand. The two parameters of this study concerned about Indian consumers’ affinity towards global brands and regional differences in India. As India becomes more and more economically strong, affinity for procurement of global as well as local brands will increase. The study sets precedence on the type of studies already 80 done on Indian consumer as it studied three brands. Based on the framework from previous research, the study analyzed the acceptance of global brands and local brands among Indian consumer. Interestingly, the study revealed that a certain portion of Indian consumers have a strong affinity towards procuring global brands but there’s a group which is still undecided. India is a rapidly developing economy based on strong private sector with brand conscious consumer. This attribute about Indian economy attracts global brands to set up stores in the country. The problems as evidenced from the study of literature reveal regional constraints and government regulations hampering the rapid growth of retail in India. The study can be set as a stepping stone for other scholars to study in depth about the brands in India; both global and local as well as the Indian consumer choices. Finally, Indian consumer market is ever changing which opens up new possibilities and the brands need to tap into this burgeoning space (Sinha & Banerjee, 2004; Kaur & Singh, 2007).