AN EMPIRICAL RESEARCH ON DIFFERENT CATEGORIES OF FROZEN FOODS. Dhruvi Shah & Akash Chatterjee

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1 AN EMPIRICAL RESEARCH ON DIFFERENT CATEGORIES OF FROZEN FOODS. Dhruvi Shah & Akash Chatterjee ABSTRACT An empirical study was conducted to understand the preference of the Indian consumers with respect to frozen foods. A questionnaire containing skeptical questions with respect to the consumers demographics, their preference and expenditure on various categories of frozen foods was circulated through s. The primary data is collected through the questionnaire. Secondary data was sought by using information available through the internet. Likely behavior of the consumers is studied by performing research methodology tests like T-test, Chi-squared test and Proportions test. The Hypothesis is appropriately run and tested. This paper also incorporates the charts and graphs for a clear understanding of the survey conducted. The study will conclude on detailing the various aspects that influence the preference thereof, consumption patterns and expenditure over the various categories of frozen foods. INTRODUCTION Humans have been utilizing freezing as a means of safely preserving food for thousands of years. However, it took the technological genius of Clarence Birdseye in the 1920 s to harness this preserving power of freezing foods by making the process practical. The frozen food industry was thus born in The popularity of frozen foods grew slowly, assisted by the development of better home refrigerators and freezers and ever-expanding product line that included marketable frozen items. Introduction of frozen foods brought in convenience of the complete meal in a quick and easy to prepare frozen form. But, convenience is not the only benefit that frozen foods have to offer. The health conscious have discovered the nutritional advantages of frozen vegetables and fruits to be easy-to-use key components to a healthy family menu. Waistline watchers have found a friend in the numerous low-fat frozen food offerings, while the economically conscious continue to value the diversity of frozen food possibilities that tempt the taste buds without breaking the bank. You can be sure! Its fresh, its frozen! Frozen foods contain no preservatives. It is a natural form of preservation. Frozen fruit and vegetables are nutritionally more reliable than fresh. Freezing prevents sensitive vitamins and nutrients from being lost during transportation from farm to shop. Frozen food ensures that even the most exotic dishes are available on demand. Freezing allows one to choose from a vast selection of otherwise seasonal ingredients all year round. Frozen food also helps reduce food waste as one uses only how much one needs which means it is good for your pocket and good for the environment. So, from the point of view of health, environment, variety, taste and your budget, frozen foods are just as good a choice as it ever has been.

2 In the earlier days of marketing frozen foods, products were limited to a small variety of vegetables, but however in the recent years, the range has become highly extended to include not only the great variety of vegetables but also complete foods and meals. The variety of frozen foods available in the market reflects the wide use of frozen foods in the household which includes ethnic, vegetarian, fast foods, imported gourmet, dietary and many others. Frozen foods presume a very promising future as India is growing in terms of its working population and with less time available at hand and with many accepting the trend of consuming it, the frozen foods industry will prosper with leaps and bounds. Market Share of major players in the industry Name % Share Mother Dairy (safal) 50 McCain 25 Yummiez 32 Venky s 60 Al Kabeer 10 Real Good (market leader-poultry) 20 LITERATURE REVIEW Tanis Furst, Margaret Connors, Jeffery Sobal, Carole Bisogni & Laura Winter Falk have cited the following manifesto. People classify foods into multiple categories to construct order in complex food environments. This investigation in the U.S. used depth interviews and secondary analysis of existing qualitative data sets to examine how the public constructs and uses food classifications. Within sets of culturally recognized food classifications, smaller sets of socially significant classifications are found, and within these socially significant classifications are sets of personally operational classifications used most often in making everyday food choices. Food classifications become salient and are used within specific contexts. Food classifications are multi-dimensional, and include many organizing themes such as liked/disliked, healthy/ unhealthy, seasonal/out of season, and others. These classification dimensions and categories vary in salience and use within and between individuals and settings. Understanding food classifications may help improve communication between food and health professionals and the public.

3 RESEARCH OBJECTIVES To examine the pattern of consumption of different categories of frozen foods by the consumers. To investigate what factor affects the consumption pattern of different categories of frozen foods by consumers. To study the expenditure incurred by consumers over the different categories of frozen foods. RESEARCH METHODOLOGY This proposed research involves empirical testing of hypotheses set forth for the study. Research is qualitative in nature and secondary data (internet) was collected from established sources. The survey questionnaire consists of demographics and 9 questions. Sample size This is mainly survey research. Our research is based on 60 respondents which may represent the entire population. Selection of sample Selection of the sample units is based on easy availability and accessibility, thus it is Nonprobabilistic Convenience sampling. The research contains responses from different occupation, gender, age and income. Analysis Tools The various analysis tools used for this research are: T-test, chi-squared test and ANOVAs without replication. SAMPLE DEMOGRAPHICS Gender Monthly Family Income As per the study conducted, proportion of male and female respondents is 53% and 47% respectively. Large proportion (43%) of repondents interviewed fall within the income levels of 0-1 (Rs.in lakhs.)

4 DATA ANALYSIS AND INTERPRETATION Major Findings: 1.) Frozen vegetables (uncooked) [How much do you spend on frozen food per month? (Rs. per month)] From the graph, it is evident that maximum consumers expend less than Rs.500/- on frozen vegetables (uncooked). 2.) Frozen non-veg (uncooked) [How much do you spend on frozen food per month? (Rs. per month)] From the survey conducted, it is observed that most consumers spend in the range of less than 500 to about a thousand rupees on frozen non-veg (uncooked).

5 3.) Frozen veg (semi-cooked) [How much do you spend on frozen food per month? (Rs. per month)] The expenses incurred by consumers of frozen foods on frozen veg (semicooked) are between 500 and Consumers do not spend an amount greater than ) Frozen non-veg (semi-cooked) [How much do you spend on frozen food per month? (Rs. per month)] The graph shows a downward trend as the range of expenses increases but increases to a point where expenditure crosses 2000.

6 5.) Frozen pizzas, samosas, etc. [How much do you spend on frozen food per month? (Rs. per month)] Again as seen from the bar graph, maximum consumers spend a sum of less than Rs.500 on frozen pizzas, samosas and other cooked meals. 6.) Frozen ice cream [How much do you spend on frozen food per month? (Rs. per month)] Although, the amount of money spent on frozen desserts and ice-cream shows a downward trend but still the expenditure shows an overall high mark with regards to other categories of frozen foods. 7.) Frozen yogurt [How much do you spend on frozen food per month? (Rs. per month) The amount spent on frozen yogurt is in the range of less than Rs.500/- because still the acceptability of frozen yogurt as desserts is in the growth stage in the market.

7 HYPOTHESIS TESTING: Hypothesis 1: Ho: The average expenditure on frozen foods is more than Ha: The average expenditure on frozen foods is not more than Null Ho: p > 3750 Alternate Ha: p? 3750 Tail Test Left-tail test p-test Alpha 10% Probability 90% Critical 1.28 Observed x 3, µ 3750 s 2, sqrt(n) 7.87 (0.44) 1.28 x-µ (116.94) (0.44) s/sqrt(n) P-value 0.33 Alpha 0.10 Decision P - value > alpha, Accept the NULL We consider Ho. Conclusion: The average expenditure on frozen foods is more than 3750 Business Decision: Consumers of frozen foods have proved to be spending over Rs.3750/- which means approximately nearly Rs.500/- is being expended over the various categories of frozen foods individually. This proves that consumers are well aware about the frozen foods and its ingenuity. Institutionalizing the prices a bit may cause a positive effect over consumers and will increase sales, upfront.

8 Hypothesis 2: Ho: The preference for frozen foods is INDEPENDENT of gender Ha: The preference frozen foods is NOT INDEPENDENT of gender Step 1: Fo Null Ho: The preference for frozen foods is INDEPENDENT of gender Column Labels Alternate Ha: The preference frozen foods is NOT INDEPENDENT of gender Row Label Total Tail Right-tail test Female % Test Chi-squared test Male % Alpha 10% Total % Probability 90% df = (r-1)*(c-1) Critical Observed 4.14 Step 2: Fe P-value 0.25 Column Labels Alpha 0.10 Row Label Total Decision p-value > alpha, Accept the NULL Female % Male % Conclusion: Total % Thus, the preference for frozen foods is INDEPENDENT of gender. Step 3: (Fo-Fe)^2-Fe Column Labels Row Label Total Female Male Total Business Decision: According to the empirical study conducted, the preference for frozen foods is independent of gender. The respondents prefer to purchase and consume frozen foods irrespective of their gender. Hence gender is not a major factor in influencing the preference among the respondents.

9 Hypothesis 3: Ho: The average number of consumers consuming frozen foods on special occasion is more than 45% Ha: The average number of consumers consuming frozen foods on special occasion is NOT more than 45% Null Ho: p > 45% Alternate Ha: p 45% The average number of respondents who consume frozen foods only on special occasion is more than 45% The average number of respondents who consume frozen foods only on special occasion is NOT more than 45% Tail Left-tail test Test Z-test x = 427 n = 158 Alpha 10% Probability 90% Critical 1.28 Observed p' 37% p 45% q 55% n 427 p'-p -8% (3.32) sqrt(pq/n) (3.32) (1.28) P-value Alpha 0.10 Decision p-value < alpha, Reject the NULL Conclusion: Thus, the average number of respondents who consume frozen foods only on special occasion is NOT more than 45% Business Decision: Thus, the preference for frozen foods is not solely based on an upcoming event, function or special festive occasions but consumers will buy them also based on their convenience and need. Thus, focus should be placed on the cost of frozen foods, as a dip in cost of frozen foods will attract more customers to purchase these frozen foods and its various categories.

10 CONCLUSION: More than 45% of the respondents consume frozen foods irrespective of any functions or festive occasions. Thus frozen foods should be promoted and publicized more and priced more competitively. As seen from the survey conducted maximum expenditure on various categories of frozen foods by most customer s lies in the range of less than 500 to about a thousand Rupees. Frozen food is preferred by consumers irrespective of their gender. Thus the target audience can be chosen based on other demographics such as education, income level, marital status, agegroups etc. The average expenditure incurred on frozen foods by a household on all the categories of frozen foods taken together is approximately Rs.3750/-. This demographic element can be altered by revising the prices of the frozen food packets supplied in the market and targeting the audience even more specifically. The average expenditure incurred by a household over the categories of frozen food, individually, sums to Rs.500/- only. Expenditure incurred on frozen foods by consumers is irrespective of their income earning levels. Thus, it is evident that demand for the frozen foods might come from other influencing factors such as taste, convenience and ease in cooking, freshness, longer shelf life, time-saving. Preference for as well purchase of frozen foods is increasingly likely as visible from the trends. From the above, we can recommend that purchase of frozen foods is irrespective of gender, income levels and occasions taking place. Thus, the manufacturers of frozen foods can try targeting consumers by changing pack sizes to cater to the needs of different family sizes and individuals respectively. For example, providing smaller pack size for individuals and probably a family pack for a family size of more than four people. This might have an impact on the prices of the packs but may definitely prove beneficial to the frozen foods industry as a whole. LIMITATIONS: Although this research was carefully prepared, I am aware of its limitations and shortcomings. The sample size is limited as the forms were filled online and there was no scope of personally conducting interviews. Data was collected based on age groups, employment status, profession, gender etc. wherein majority of the respondents are students. So majority of the responses depend on the perception and thinking of students only. The study is geographically confined to a limited place. The questionnaire used might have some inherent in - efficiencies. Research is conducted on secondary data. Thus, output can be different. REFERENCE: Frozen food technology by C.P. Mallet.