Implementation of Marketing Strategies in the Reputed Food and Beverages Chains of India

A Study on Marketing Strategies in the Fast Food Industry of India

by Lucky Mehta*, Dr. Reenu Shukla,

- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540

Volume 20, Issue No. 2, Apr 2023, Pages 537 - 541 (5)

Published by: Ignited Minds Journals


ABSTRACT

This study article aims to comprehend the marketing strategies used by fast-moving consumer goods (FMCG) industry for processed food and drinks. Between 18 and 19 of revenues in the FMCG sector are made up of food and beverage goods. Food that has been processed is becoming a significant sector of the FMCG industry. All around India, there are sizable food processing industries. According to numerous projections, FMCG companies' revenue is anticipated to exceed 53by 2025. One of the food industry segments with the fastest growth rates worldwide is fast food. Fast food culture did, however, become more popular in India over time as a result of the expansion of nuclear families, economic growth, rising per capita income, and globalisation. According to the report, 64 of respondent‘s frequent fast food restaurants once a week, the majority of respondents spend more than 15 of their monthly income on fast food, and western junk food is the respondents' preferred cuisine. Additionally, they stated that the discounts provided at fast food restaurants are thought to be an efficient kind of advertising. Large corporations dominate the fiercely competitive fast food sector.

KEYWORD

marketing strategies, fast-moving consumer goods, FMCG industry, processed food and drinks, food and beverage goods, food processing industries, revenues, fast food culture, nuclear families, economic growth

1. INTRODUCTION

Food that can be cooked and served very rapidly is referred to as fast food. While any meal that takes little time to prepare can be categorised as fast food, the word often refers to food that is prepared poorly and sold at a restaurant or store for takeout or takeaway. The Indian food industry has grown significantly up to this point and has continued to do so, bringing in more than US $39.71 billion. It is also one of the largest industries in the nation. The National Restaurant Association reports that the business has grown by 11%, which is good news for the nation. The food services industry has been expanding alongside the food processing industry, and there is more potential for growth in the years to come due to changes in consumer income, an increase in the target population's youth, the potential growth of rural areas and less developed towns, and the adoption of western culture, which leads to a preference for eating out among many consumers. India is an agrarian nation with a large supply of food resources and a large capacity for animals. Additionally, the sector is competitive, providing consumers with a favourable market. Given that it contributes 9–10% of the GDP and is currently expanding at a rate of more than 10% per year, the food processing industry has received a lot of attention. India now generates 35% of its waste from fruits and vegetables; in order to lower this percentage, a number of government initiatives, including the Vision 2015 Program, which calls for the establishment of massive food parks, are being introduced. The goal of this plan is to make our agricultural sector more market-driven than supply-driven. To put it simply, producers will only need to produce what the market requires, not how much they personally wish to produce.

The nation's producers have been successful in reducing the need for expansion locally and increasing the output of the food produced despite obstacles in the industry's infrastructure. Indian will only be able to survive in the approaching years if they can supply enough produce to meet the rising demand. India can develop into a superpower as a global food powerhouse if it can overcome its weaknesses. When the agricultural industry is made more competitive, better food can be produced, which will only spur future industrial growth. The goal of making India the world's leading producer of food by 2030 will result in higher farmer incomes and more inexpensive, high-quality foodstuff, which might play a crucial role in the overall growth of the country

Fast-moving consumer goods (FMCG) are readily available, have a limited shelf life, and are frequently purchased by consumers. Fruits, vegetables, milk products, and baked goods are examples of extremely perishable FMCGs. In contrast, products is the term used to describe the activities an organisation engages in to encourage the purchase of or commercialization of a good or service. Research, creation, communication, targeting, and value delivery are all part of marketing, which aims to link a customer with a brand or product so they would purchase it from the company.

2. REVIEW OF LITREATURE

Concentrating on customer behaviour According to K. Aswathappa (2012), particular factors had an effect on people's behaviour. Age, sex, education, occupation, and innovativeness are examples of personal factors. Psychological factors include learning, motivation, personality, perception, values, and attitudes. Environmental factors include economic, political, technological, legal, social, and cultural factors. Organizational factors include work-life balance, organisational structure and design, leadership, accountability, and physical facilities. In a study conducted in 1997, Kara et al. looked at how attitudes about fast food businesses varied between the USA and Canada. According to the study's findings, there are notable perception gaps between regular fast food consumers in the USA and Canada, as well as preferences for fast food establishments among different age groups. The eating habits of Brazilian consumers were attempted to be described by Rezende and Avelar in 2012. The survey found that one reason people ate out of the house was a need for diversity. On numerous occasions, the desire for "convenience" played a significant role in the consumption. Younger individuals and those with greater incomes engaged in more intensive consumption and had more positive attitudes towards dining out. Although eating out was a very popular trend, the study also showed that many customers did not express any intention of doing so more regularly. There was a lack of trust or positive attitudes concerning eating out on the side of the consumers, who frequently made purchases. Anand (2011) investigated how fast food consumption among young people in Delhi, India, was affected by demographic and psychographic factors. The main factors influencing customers' food choices in urban India were discovered to be their love of eating out, their need to mingle, the atmosphere and flavour of fast food, and their preference for convenience. Results showed that fast food companies in India can no longer rely on convenience as a USP unless the impact of that convenience on consumers' health is given equal weight in the years to come. In the research paper "Marketing Strategies of FMCG Companies - A Study on Factors Influencing Buying Food, Health and Beverages in Mysore," Dr. A. Kaboor (2016) discussed the marketing strategy of quality, affordability, fair price, prior contact, companion recommendation, and shopkeeper's reference make up the first factor. Incorporating Brand Loyalty, State Advertising, Availability, Brand Experience, Packaging, and Significance make up the second aspect, while Brand Visibility, Lifestyle, and Promotions make up the third. Relationship marketing, product literacy, free prizes, and brand endorsement are all factors in factor four. The counter display is the final element. According to study paper data, brand, quality, performance, reliability, and other crucial characteristics are significant to rural clients. This research suggests improving the rationality of FMCG products rather than just sticking with appealingly low prices. In his study paper titled "Marketing Mix for Next Generation Marketing," Dr. B.R. Londhe (2014) noted that the marketing mix had undergone significant modifications recently. Many organisations dedicate themselves to marketing initiatives aimed at "building values." Through the "Value to Customer" principle, the buyer engages in the marketing process to obtain gratifying "value" for his investments. Despite the fact that the 4 Ps develop into the 7 Ps, it still approaches marketing from the producer's viewpoint as opposed to the customers. Four elements that add value to the marketer, the consumer, society, and process are highlighted by the "4 Value" concept. This model will provide solutions to a number of contemporary marketing challenges that standard marketing mix theories are unable to address.

2.1 Objective

  • To research the impact of marketing strategies on consumer awareness of food and beverage items.
  • To investigate the impact of marketing strategies on the consumption of food and beverage goods

3. RESEARCH METHODOLOGY

3.1 Sampling Method

For this research paper, a no probability convenience sampling method is used. The sample size includes 100 customers from Pune city.

3.2 Methods of Data collection

A carefully crafted questionnaire is the source of the primary data. All essential supplementary information is gathered from sources like the

3.3 Method of analysis

To collect data, a structured questionnaire is employed. A structured questionnaire is thought to be an excellent option for gathering accurate data. To achieve the research's objectives, a questionnaire with multiple-choice questions is used. The data has been analysed using MS Excel 2019.

3.4 Research Design Table 1: Research design Type of Research Design Descriptive research Design

Sampling Technique Non- Probability Convenience Sampling 0 Sampling area Pun City Sample Size 100 Customer Primary Data Questionnaire Secondary Data Research paper , Books, Airtcles,etc Data Analysis Ms-Excel 2019

4. DATA ANLYSIS AND INTERPERTITON

Table 2: Demographical Analyses Gender Customer Percentage

Male 60 60% Female 40 40% Age

20-30 20 20% 30-40 30 30% 40-50 25 25%

50 above 25 25%

Education

Level Graduation 25 25%

Post

Graduation 50 50% Occupation Student 20 20% Employed 30 30%

Self-

Employed 20 20% Others 30 30%

Figure 1: Demographical Analyses Table 3: Knowledge of many food and beverage brand names HUL Cou nt Percenta ge% Nestl e Cou nt Percent age %

Magnu

m 118 32% Nesc afe 150 56%

BRU 150 42%

Koko Crun ch

101 48%

Annap

urna 60 31% Kitka t 99 33% Boost 142 62% Magg i 156 58% Cornet 153 56% Nestl76 62% Figure 2: knowledge of many food and beverage brand names Table 4: The source of awareness of Food & Beverage products Medium Customer Percentage

Television, radio 20 20% Newspaper 20 20% Internet 20 20% Magazine 10 10% Word of Mouth 30 30% Total 100 100%

Figure 3: The source of awareness of Food & Beverage products Table 5: Place from where customer likes to purchase Food and Beverage products

Place Customer Percentage Traditional Shop 20 20% E-Commerce 30 30% Total 100 100%

Figure 4: Place from where customer likes to purchase Food and Beverage products Table 6: Awareness and usage of products due to marketing strategies

5. FINDING

  • There is a significant level of brand awareness in the FMCG industry.
  • Nearly 59% of consumers learn about food and beverage products from radio and television.
  • FMCG companies are concentrating on using the internet to advertise their food and beverage items.
  • For product purchases, customers chose traditional stores, followed by shopping centres and online shopping.
  • Various marketing techniques raise product awareness, but consumption of the product is lower than product awareness.
  • While revenue generated from the purchase of food and drink products through the Ecommerce platform is less than that of traditional platforms, it is nonetheless increasing daily.

150 101 99 156 76

NescafeKoko Crunch KitkatMaggiNestle a+

11815060142153

MagnumBRUAnnapurnaBoostCornet to

HUL

Count

20% 20% 20% 10% 30%

Medium

Television, radio Newspaper Internet

of food and beverage goods. Companies in the FMCG Sector utilise a variety of marketing techniques for food and beverage items to raise awareness and boost usage. To boost sales, businesses use a variety of distribution channels. One of India's largest emerging markets is the fast food sector. Fast food businesses in India have managed some new marketing methods with great success. When something is distinct from other things and sticks out, it will be recognised and examined. By elevating an Indian business, the new fast food marketing methods will increase the GDP.

REFERENCES

1. Ardito, L.; Petruzzelli, A.M.; Panniello, U.; Garavelli, A.C. Towards Industry 4.0. Bus. Process Manag. J. 2019, 25, 323–346. 2. Borden, N.H. The Concept of the Marketing Mix. J. Advert. Res. 1964, 4, 2–7. 3. Diez-Martin, F.; Blanco-Gonzalez, A.; Prado-Roman, C. Research Challenges in Digital Marketing: Sustainability. Sustainability 2019, 11, 2839. 4. Gong, M.; Gao, Y.; Koh, L.; Sutcliffe, C.; Cullen, J. The Role of Customer Awareness in Promoting Firm Sustainability and Sustainable Supply Chain Management. Int. J. Prod. Econ. 2019, 217, 88–96. 5. Kannan, P.K.; Li, H.A. Digital Marketing: A Framework, Review and Research Agenda. Int. J. Res. Mark. 2017, 34, 22–45. 6. Kapoor, R.; Kapoor, K. The Transition from Traditional to Digital Marketing: A Study of the Evolution of e-Marketing in the Indian Hotel Industry. Worldw. Hosp. Tour. Themes 2021, 13, 199–213. 7. Lah, O. Continuity and Change: Dealing with Political Volatility to Advance Climate Change Mitigation Strategies—Examples from the Transport Sector. Sustainability 2017, 9, 959. 8. Ma, J.; Webb, T.; Schwartz, Z. A Blended Model of Restaurant Deliveries, Dine-in Demand and Capacity Constraints. Int. J. Hosp. Manag. 2021, 96, 102981. 9. Manerba, D.; Mansini, R.; Zanotti, R. Attended Home Delivery: Reducing Last-Mile Environmental Impact by Changing Customer Habits. IFAC-Pap. 2018, 51, 55–60. 10. McCarthy, E.J. Basic Marketing; Richard D. Irwin: Homewood, IL, USA, 1964. 11. Nogueira, G.P.M.; de Assis Rangel, J.J.; Shimoda, E. Sustainable Last-Mile Distribution in B2C e-Commerce: Do Consumers Really Care? Clean. Responsible Consum. 2021, 3, 100021. 12. Royle, J.; Laing, A. The Digital Marketing Skills Gap: Developing a Digital Marketer Model for the Communication Industries. Int. J. Inf. Manag. 2014, 34, 65–73. Fast-casual Restaurant Industry. Int. J. Contemp. Hosp. Manag. 2010, 22, 416–432. 14. Tseng, M.-L.; Sujanto, R.Y.; Iranmanesh, M.; Tan, K.; Chiu, A.S. Sustainable Packaged Food and Beverage Consumption Transition in Indonesia: Persuasive Communication to Affect Consumer Behavior. Resour. Conserv. Recycl. 2020, 161, 104933. 15. Yuruk-Kayapinar, P. Digital Consumer Behavior in an Omnichannel World. In Managing Customer Experiences in an Omnichannel World: Melody of Online and Offline Environments in the Customer Journey; Dirsehan, T., Ed.; Emerald Publishing Limited: Bingley, UK, 2020; pp. 55–73.

Corresponding Author Lucky Mehta*

Research Scholar, University of Technology