Research Report

Food & Beverage Consumption habits of the Indian Consumer

Batch (2013-15)

Submitted ByAakankshi Verma

Anuj Singh Kappanwal
Kanika Ahuja
Rajiv Roy
Sunil Kumar Singh
Ujjwal Gyani Prasad
Utkarsh Kumar

Content

Research Background
Research Objective
Introduction
Methodology
Questionnaire
Decoding the Consumer Behaviors in the Food & Beverage Space
Acquiring a brief understanding of the Indian consumer with respect to
the consumption of food and beverages.
Identifying emotional payoffs associated with food and beverages.
Identifying key values for each socio-economic class..
Conclusion
Bibliography

Certificate

This is to certify that the project report titled Food & Beverage Consumption habits of the Indian
consumer is the project work carried out by Aakankshi Verma, Anuj Singh Kappanwal, Kanika Ahuja,
Rajiv Roy, Sunil Singh, Ujjwal Prasad, Utkarsh Kumar, at Sri Ram College of Commerce, for partial
fulfillment of PGDGBO. The research work carried out by the students is found to be satisfactory.

Professor Aneesha
(Project Mentor)

Acknowledgment

We would like to thank and express our profound gratitude to those who contribute and assist greatly to
the completion of this project. We would like to extend our gratitude to Dr. Ashok Sehgal, Principal, Sri
Ram College of Commerce and Dr. Anil Kumar and Mr. S.K. Chaudhary, Coordinators, Global Business
Operations for providing us this opportunity. We would like to express our deepest thanks to Ms.
Aneesha, our mentor, her advice, supervision and feedback which contributed positively to the success of
the project. As our mentor, her encouragements assisted us to carry out this research study in the right
direction. Ms. Simar, also deserves a special thanks for her constant support. We would also like to thank
our classmates and friends who encouraged us to do our best.

Finally, we acknowledge the assistance of the respondents of our questionnaire who devoted their
precious time to answer us which had gone a long way for the completion of the research study. We thank
them for sharing their experience and expertise on this study.

Research Background
India's growing market for consumer goods, is already one of the five largest in the world. Add the fact
that during the next few decades India will likely surpass China as the world's most populous country, and
it is clear that multinational consumer goods companies seeking faster growth must begin to focus on the
subcontinent.
Multinationals in the grocery, durable-goods, and packaged-goods sectors have been entering India since
1991, when restrictions on foreign investment were relaxed. Some companies have adopted a specialtyplayer strategy, catering to a small segment of "global Indians" and marketing products much as they
would be marketed to any such customer around the world. These companies concentrate on a few big
cities. Their business model is low risk and easily rolled out, can often be sustained initially through
imports, and requires a limited distribution network. Although businesses of this kind can be profitable,
their sales volumes are typically modest and will grow only as fast as the segment does. In many ways,
this strategy misses the point of entering a market as large as India.
By contrast, other multinationals have targeted "aspiring India"the much bigger and faster-growing
middle-income segmentwith an eye to making the country a core market. In some cases, these
companies have won substantial shares in product segments ranging from breakfast cereals to washing
machines to cars. With this market-shaping strategy, a company can achieve scale and create a strong
position that should allow it to reap even bigger benefits in the future. But it is also a challenging route,
and some companies have stumbled, confounded by attempts to make money in a geographically
immense market of consumers who demand high value at low prices.
Indias growing economy has led to the increased spending power of Indian citizens giving way to a new
Indian middle class. The consumer trends in India have been deeply affected by this change in income.
McKinsey Research Institutes report titled, The Bird of Gold: The Rise of Indias Consumers predicts
Indian consumption to triple in the period from 2005-2025. The breakdown given is as follows:-

Figure 1: Breakdown of total cumulative consumption

Thus, we can see that the largest portion of income on India is spent on the food, beverage and tobacco
industry.
India is also being subjected to large doses of westernization which is rapidly changing Indian culture,
also affecting food and beverage habits, in the process.
This rapid change in Indias consumption pattern inspired us to dig more into as to why this change is
happening and that too at such an exponential rate. Thus, we chose to do research in this field to
understand the Indian consumer better, focusing on the food and beverage sector.

Research Objectives
The following are the research objectives for this research project.
1. Acquiring a brief understanding of the Indian consumer with respect to the consumption of food
and beverages.
2. Identifying emotional payoffs associated with food and beverages.
3. Identifying key values for each socio-economic class.
4. Supporting our findings with current advertisements.

Introduction
1.

Shift in Consumer Trends

The liberalization of the Indian economy played a role in the shifting trends in buying behaviour of Indian
consumers. But, it has mostly been impacted by the Information Age, where consumers have learnt to
be more proactive in seeking information about products and services.
1.1. The Indian Consumer Today
For starters, India's consumers are young: 70 percent of the country's citizens are below the age of 36, and
half of those are under 18 years of age. These people are deeply rooted in Indian culture and traditions yet
connected to and curious about the outside world. Their incomes may be growing, but their budgets are
still limited. Together, these characteristics have big implications for the product categories and brands
they select.
Such consumers focus on the right housing (that is, housing with access to power and water) and on food,
health, and hygiene products. While people in this middle-income segment still spend about half their
budgets on the basics, that amount is falling every year, leaving more money for other areas of
consumption. This demographic is the new battleground for companies and brands alike.
Beyond basic needs, households make their children's future a clear priority; education is seen as a
passport to a better tomorrow. To gain a winning edge, parents spend much money and effort securing the
right schools and tutoring for their children and invest in nutrition, computer games, and books. As a
result, several categories of productsfrom protein powders to educational toyshave enjoyed rapid
growth.
With basic needs satisfied and the future looked after, these consumers will consider product categories
representing the good lifeperhaps a new color TV or a new motorcycle after 4 years (compared with the
earlier 12 years) or a simple statement such as serving guests Coke instead of the traditional lime juice.
Unlike older generations, with their memories of wars with Pakistan and slow economic growth, young
Indians have been raised in the postliberalization era of fast growth and underlying optimism and are thus
more confident about the future. One way this attitude manifests itself is borrowing to buy big-ticket
items; as a group, such consumers are challenging the myth that Indians are averse to credit.
What's on the mind of young Indian consumers as they shop? Price and value for money are certainly
important considerations. What of brands? Indians, with more than 200 television channels offering a

window to the world, know of and value global brands but are unlikely to pay a premium for them. On
the contrary, these consumers increasingly demand brands that are relevant to their own experience and
reflect local preferences. One successful effort to fuse local and global tastes is MTV India, where local
language and music account for 80 percent of the programming. Not surprisingly, Indian young people
love it.

1.2.

Comparative Analysis of the Old Indian Consumer vs. the New Indian Consumer

S.No.

Old Indian Consumer

New Indian Consumer

1.

Low Purchasing Power

Increased Purchasing power

2.

Low variety of products to choose from

Extensive variety of products

3.

Seeking more stuff at the lowest price.

Seeking more value at the lowest price.

4.

Information deficient.

Abundantly available information.

5.

Trusts marketing messages on the front of

Reads ingredients at the back of the box.

the box.
6.

Passive recepients of brand

Active co-creators of content, products &

communication.

experiences

Table 1.1- Old consumer vs. New consumer

2.

Socio Economic Segments

2.1. McKisney Classification:

Indias households can be classified into five economic groups

McKisney has divided Indian households into five economic classes based on real annual
disposable income. They began with the categorizations developed by NCAER in its publication The
Great Indian Middle Class: Results from the NCAER Market Information Survey of Households.

However, they have recalibrated these classes based on the time period they examined. They have also
made some adjustments based on the proportion of household spending on basic necessities versus
discretionary items to help relate the Indian classes to consumers in other countries. Finally, for the
sake of simplicity, they have also combined the wealthiest income brackets used in NCAERs
classification into a single class we refer to as global.

The following are the five annual household disposable income brackets that we will use in the
remainder of the report. To help orient non-Indian readers as to what kind of lifestyle each of these
levels of income buys, we will also give a brief profile of a typical family in each of these classes.

Once again, all figures are in real 2000 Indian rupees and real 2000 US dollars:

2.1.1 Deprived (less than 90,000 Indian rupees; less than $1,969): Households in this income bracket
are the poorest group, many living under the countrys official definition of poverty (2,400 calories per
capita per day in rural areas, 2,100 in urban areas). People in this bracket typically earn their livelihoods
by engaging in unskilled or low-skilled activities. Also many workers in this segment struggle to find
employment throughout the year and therefore engage in seasonal or part-time employment.

Profile: Mangu (43) and his wife Basanti (35) work as daily-wage earners in a poor rural district
in central India. The couple has a large family of five children whom they think of as their old-age
insurance; Mangus mother also lives with them. Life is a constant struggle because they dont have a
regular flow of income and, when they do find work, wage rates are very low. They rely heavily on
government-subsidized food and health care. A number of people they know have migrated to big cities
nearby in search of better employment. Mangu is wondering whether he should join them and move to a

city. He could find work at a construction site while Basanti could work as a housemaid. Weighing
against such a move is that, even in comparison with their village earn more; hut, a city-dwelling
could be worsethey would stay in a crowded slum, with no access to basic amenities like clean
water. There are pressures on the children to work, but their parents want them to complete at least a
basic level of education, which they see as the only way out of their current poverty.

2.1.2. Aspirers (90,000200,000 Indian rupees; $1,969$4,376): People in this group are usually
small-time shop-keepers, small-hold farmers, or low-skilled industrial and service workers. Although they
cannot be described as deprived, they nevertheless struggle to live comfortably, typically spending almost
half of their income on basic necessities.

Profile: Ramnath (43), a high-school graduate, works as an electrician in the Public Works Department
in a mid-size city. His wife Lakshmi is a housewife, bringing up the couples three children and
taking care of her in-laws who are both in their mid-60s. They supplement their household income
with the takings from a small grocery shop run by Ramnaths father from their inherited housea onebedroom structure, badly in need of repair, in the old part of the city. Food security is not an
issue and the family owns an LPG stove, a small TV, an electric rod for heating water, and an iron.
They are very frugal in their limited purchasesmost of their household articles are second-hand
and sourced from the local gray market. The family dreams of the day when they will enjoy the luxury
of cold water from their own refrigerator. Although their survival is not in question, they are squeezed
constantly by a scarcity of resources.

2.1.3. Seekers (200,000500,000 Indian rupees; $4,376$10,941): Of all our segments, households
in this income stratum are probably the most varied in terms of employment, attitudes, age, and other
factors. They range from young college graduates who have just started working to traditional
white-collar employees, mid-level government officials, and medium-scale traders
and businesspeople.

Profile: Suresh (35) is a commerce graduate and works as an accountant in a private yarn company. His
wife works as a nursery teacher. Although they try to economize, the family spends almost half its income
on food and rent for their two-bedroom apartment. Educating the children is one of the couples highest
priorities and, despite the fact that it weighs on the family budget, they send their two children to a good
private school. Life is not uncomfortablethey own a small second-hand car, a 21-inch color TV, a
compact music system, mobile phone, cooler, fridge, and some jewelry. Suvesh is always looking for

ways to earn more; he hopes someday to be able to afford luxuries like eating out regularly in
good restaurants and owning a at. He hopes to win a promotion to a senior accountant position, or even
to progress to a relatively well-paid job with one of the many multinational corporations that have
arrived in India.

2.1.4. Strivers (500,0001,000,000 Indian rupees; $10,941$21,882): People in this income band and
upwards are generally regarded as very successful in Indian society, working as businesspeople (traders)
in cities, as established professionals, senior government officials, medium-scale industrialists in
towns, and rich farmers in villages. Typically, they have done well financially over a period of time
and have stable sources of income and a reasonable wealth base.

Profile: Yash (32) and Radha (30) are both college graduates and come from prosperous families. Yash
works as a sales manager in a multinational retail-banking company that recently entered the Indian
market; Radha is juggling a job as a marketing manager and a weekend course in interior design. They
have recently bought a two-bedroom at in one of the citys new apartment complexes. They are
not rich but they are both highly brand-conscious. They drive a Honda car, have a Sony TV, air
conditioners in each bedroom, and own a fully-automatic washing machine. Although they
sometimes purchase international designer products, mostly they settle for more conventional
up-market brands. Vacations are an annual affair, mostly within India or to neighboring countries.

2.1.5. Global Indians (1,000,000+ Indian rupees; $21,882+): This group is the cream of the
country and comprises senior corporate executives, large business owners, politicians, big agriculturalland owners and top-tier professionals. More recently, we have also seen the rapid emergence of a
new breed of the upwardly mobilemid-level executives or graduates from Indias top colleges who
are able to command premium salaries from international companies. This bracket of Indians is truly
global in its tastes and preferences, and enjoys a very high standard of living.

Profile: Rahul (40) is vice president of a large IT company. An engineer by profession, he

graduated from the Indian Institute of Technology and completed his MBA at the Indian Institute of
Management. His wife, from the same business school, works as a senior executive in a leading
advertising agency. They have bought a spacious four-bedroom apartment complete with the latest
accessories. Like most of their friends, they have an at-screen TV and a Bose audio system among an
impressive range of other lifestyle items. They have a full-time cook, maid, and chauffeur. They have two

carsa new Honda Accord, which Rahul uses primarily to drive to work, and a Ford Fusion for the
familys needs. The family manages annual vacations either to Europe or the United
States, and enjoys collecting art and antiques for their large apartment.

2.2.

Classification as per the project

The project consists of three income groups- aspirers, seekers & strivers and the globals. The Seekers and
Strivers are hereon, taken as a single bracket for the sake of simplicity, constituting the Indian middle
class.
Figure 2.1.shows the income pyramid with the three annual household disposable income groups. The
income values are adjusted for inflation.

Globals
Above Rs.21,00,000
Seekers & Strivers
Rs.4,20,000 Rs. 21,00,000
Aspirers
Rs. 1,90,000 Rs. 4,20,000

Figure 2.1. Classification of SESs.

Methodology
Research Approach - When conducting a research it is necessary to determine which approach is being
implemented, because scientific inquiry in practice typically involves alternating between deduction and
induction. Both methods involve interplay of logic and observation. And both are routes to the
construction of social theories.
Research approach can be divided into two categories: deductive approach and inductive approach.
Main distinction between inductive and deductive research approach relates to the existence and
placement of hypotheses and theories. Specifically, if the researcher adopts a range of hypotheses the
research is aimed to explore, then it will be deductive research. On the other hand, if hypotheses are
absent at the start of the research then it will be the case of inductive research. During this research
inductive approach was used.
Inductive approach starts with the observations and theories are formulated towards the end of
the research and as a result of observations. Inductive research involves the search for pattern from
observation and the development of explanations theories for those patterns through series of
hypotheses. In other words, no theories would apply in inductive studies at the beginning of the research
and the researcher is free in terms of altering the direction for the study after the research process had
commenced.
Research Method
There are two categories of research methods: Qualitative and Quantitative. Quantitative data collection
usually involves numbers, graphs and charts, whereas, qualitative data collection methods deals with
feelings and other non-quantifiable elements.
The most popular qualitative methods of data collection and analysis in business
studies are interviews, focus groups, observation, case studies, games and role playing etc.
Popular quantitative methods of data collection and analysis, on the other hand, include correlation
analysis, regression analysis, mean, mode and median and others.
Questionnaires can be used as qualitative, as well as, quantitative method. Specifically, if open-ended
questions are used qualitative methods will be used for data analysis. Alternatively, if
questionnaire consists of closed-ended questions, then quantitative approach is adopted for data analysis.
Throughout the research a lot of graphs, charts and numbers were used for the interpretation of
data.

Research Design
Many different types of surveys exist to help market researchers ask the right questions and find the
correct answers (and ask the right people). Two types: Longitudinal and Cross sectional surveys, are
the most common forms used by market researchers.
A longitudinal survey is a survey in time. The survey may be given weekly, monthly, annually,
biannually, or even more spaced out. The point is, the survey focuses on how perceptions and opinions
change over time. They often include the exact same people originally surveyed (panel survey) or people
of a similar demographic.
Cross sectional is the use of many different respondents at the same time. This survey can help you
determine what kind of person will like or dislike your product, and is a helpful tool for narrowing down
a companys niche demographic. For example, if data from a cross sectional survey shows that men
generally rate a product higher than women, advertisers can focus their efforts towards men. But it goes
even deeper than that. If a cross sectional survey shows that Latino men ages 18-35 in general rate a
product higher than any other sex/age/race demographic, they know it will be effective to focus on that
one market.
The study revolves around the socio economic consumer segment and it involves the cross
sectional type of Descriptive research.
Research Type
Though, there are three types of objectives in a marketing research project but we have used only the first
two in our project.

Exploratory research or formulative research

Descriptive research [6]

Causal research (also referred to as explanatory research)[7]

Exploratory research or formulative research: The objective of exploratory research is to gather

preliminary information that will help define problems and suggest hypotheses.[8]
Descriptive research: The objective of descriptive research is to describe things, such as the market
potential for a product or the demographics and attitudes of consumers who buy the product.

Data Collection Method

Data collection is the process of gathering and measuring information on variables of interest, in an
established systematic fashion that enables one to answer stated research questions, test hypotheses, and
evaluate outcomes. The data collection component of research is common to all fields of study
including physical and social sciences, humanities, business, etc. While methods vary by discipline, the
emphasis on ensuring accurate and honest collection remains the same. The goal for all data collection is
to capture quality evidence that then translates to rich data analysis and allows the building of a
convincing and credible answer to questions that have been posed.
Regardless of the field of study or preference for defining data (quantitative, qualitative), accurate data
collection is essential to maintaining the integrity of research. Both the selection of appropriate data
collection instruments (existing, modified, or newly developed) and clearly delineated instructions for
their correct use reduce the likelihood of errors occurring.
A formal data collection process is necessary as it ensures that data gathered are both defined and
accurate and that subsequent decisions based on arguments embodied in the findings are valid. The
process provides both a baseline from which to measure and in certain cases a target on what to improve.
Generally there are three types of data collection and they are
1.Surveys: Standardized paper-and-pencil or phone questionnaires that ask predetermined questions.
2. Interviews: Structured or unstructured one-on-one directed conversations with key individuals or
leaders in a community.
3. Focus groups: Structured interviews with small groups of like individuals using standardized questions,
follow-up questions, and exploration of other topics that arise to better understand participants

Sampling
Sampling is concerned with the selection of a subset of individuals from within a statistical population to
estimate characteristics of the whole population. Each observation measures one or more properties (such
as weight, location and colour) of observable bodies distinguished as independent objects or individuals.
In survey sampling, weights can be applied to the data to adjust for the sample design,
particularly stratified sampling. Results from probability theory and statistical theory are employed to
guide practice. In business and medical research, sampling is widely used for gathering information about
a population

The sampling process comprises several stages:

Defining the population of concern

Specifying a sampling frame, a set of items or events possible to measure

Specifying a sampling method for selecting items or events from the frame

Determining the sample size

Implementing the sampling plan

Sampling and data collecting

Data which can be selected

Choice of Survey Methods

With the application of probability sampling in the 1930s, surveys became a standard tool for empirical
research in social sciences, marketing, and official statistics. The methods involved in survey data
collection are any of a number of ways in which data can be collected for a statistical survey. These are
methods that are used to collect information from a sample of individuals in a systematic way. First there
was the change from traditional paper-and-pencil interviewing (PAPI) to computer-assisted interviewing
(CAI). Now, face-to-face surveys (CAPI), telephone surveys (CATI), and mail surveys (CASI, CSAQ)
are increasingly replaced by web surveys.
There are several ways of administering a survey. Within a survey, different methods can be used for
different parts. For example, interviewer administration can be used for general topics but selfadministration for sensitive topics. The choice between administration modes is influenced by several
factors, including 1) costs, 2) coverage of the target population, 3) flexibility of asking questions, 4)
respondents willingness to participate and 5) response accuracy. Different methods create mode
effects that change how respondents answer.

Questionnaires

Questionnaires are a type of self-report method which consist of a set of questions usually in a highly
structured written form. Questionnaires can contain both open questions and closed questions and
participants record their own answers. Interviews are a type of spoken questionnaire where the
interviewer records the responses. Interviews can be structured whereby there is a predetermined set of
questions or unstructured whereby no questions are decided in advance. The main strength of self-report
methods are that they are allowing participants to describe their own experiences rather than inferring this
from observing participants. Questionnaires and interviews are often able to study large samples of people
fairly easy and quickly. They are able to examine a large number of variables and can ask people to reveal
behaviour and feelings which have been experienced in real situations. However participants may not
respond truthfully, either because they cannot remember or because they wish to present themselves in a
socially acceptable manner. Social desirability bias can be a big problem with self-report measures as
participants often answer in a way to portray themselves in a good light. Questions are not always clear
and we do not know if the respondent has really understood the question we would not be collecting valid
data. If questionnaires are send out, say via email or through tutor groups, response rate can be very low.
Questions can often be leading. That is, they may be unwittingly forcing the respondent to give a
particular reply.
Unstructured interviews can be very time consuming and difficult to carry out whereas structured
interviews can restrict the respondents replies. Therefore psychologists often carry out semi-structured
interviews which consist of some pre-determined questions and followed up with further questions which
allow the respondent to develop their answers.
During the research, we received 50 responses from each SEC via phone,online and face to face and
as far as the in depth interviews are concerned we received 5 end consumers from each SEC.
Limitations:
This research is exploratory in nature. It may be noted that this area is complex and requires further
expansive research for thorough and accurate understanding. Lack of time acted as a barrier for easy
access to greater number of respondents for the survey. Additional work is clearly required to incorporate
the wide range of potentially relevant variables and develop a sampling plan that increases representation
from the population and consequently accuracy of findings across the population within Delhi and across
states in India.

Questionnaire
Name:

Sex:

Age

Educational level

20-30 years

Below Metric

31-40 years

High School

41-50 years

Graduate

above 50 years

Post-Graduate

Occupational Status

Annual household income

Student

Up-to Rs.1,90, 000/-

Homemaker

Rs. 1,90,000/- to 4,20,000/-

Employed

Rs. 4,20,000/- to 10,50,000/-

Business

Rs. 10,50,000/- to 21,00,000/-

Other

Above Rs. 21,00,000/-

Number of memebers in the house:

Name some brands from these locations of your house. How often do you buy them? Since when have
you been using them?
Dining room

Drawing Room

Bathroom

Kitchen & Grocery Basket

(Include brands of ration, oil, milk, bread. Mention if you use frozen/canned food, sauces like mayo, pizza
sauce etc. Also mention where you buy your food from-kirana stores/big bazaar/reliance etc)

Amount spent on groceries per month:

Amount spent on snacks and beverages per month:
(Includes chips, namkeen, biscuits, cold drinks, juices)

Name some brands of food and beverages that you use on special occasions like birthdays, kitty parties
etc. Why do you use these brands?

Name some cafes and restaurants that you like to visit with your family and how much do you spend on
these visits?

Name some cafes and restaurants that you like to visit with your friends and how much do you spend on
these visits?

For which of these reasons would you be willing to pay more for a food or beverage brands?

Better Taste and Quality

Better health & nutritional value

Peer group (Cool Quotient)

To satisfy your appetite for experimentation

To satisfy your aroused interest in the product

Other:

Who influences your preference for the stated brands? *Required

Family

Friends

Advertisements

Celebrity Endorsements

Self

Other
Please mention food & beverage brands or categories (like health drink, yogurt, biscuits, cheese, ice cream
etc.) that describes you most closely in each of the following.
Makes me feel healthy

Lends mental stability

Makes me feel attractive

Fills me with a will to win

Helps me escape pressures of life

Brings out kindness, compassion in me

Helps me build good relationships

Helps me be in control or symbolizes my influence over others

Lets me express my creativity

Helps me indulge

Makes me wise/conscious

Reflects my spirituality

Brings out my romantic side

Makes me feel prosperous

State your suggestions or complaints, if any for the Food and Beverage industry to serve you better. (New
product offerings, better prices, better availability, change in packaging etc.)

Decoding the Consumer Behaviors in the Food & Beverage Space

I.

Brief understanding of the Indian consumer with respect to the consumption of food
and beverages.

Expenditure in proportion to income per family of 4 per year :

Seekers & Strivers

23%
21%

Globals
27%

35%
21%

27%

Aspirers
14%
20%

32%
14%

Groceries &
Ration

8%
58%

Snacks &
Beverages
Dining out with
Family
Dining out with
Friends

Amount spent per family of 4 per year on Groceries and Snacks:

Amount spent per person per year on dining out:

Reasons for which a consumer would be willing to pay more :

Executive Summary :
In order to clearly understand the Indian consumer trend with respect to the consumption of food and
beverages we made an analysis which depicts the expenditure in proportion to income per family of 4 per
year.
The first understanding was done by generating a clear picture of expenditure done by seekers and
strivers, globals and aspirers in the fields of groceries and rations, snack and beverages, dining out with
family and dining out with friends. The core understanding of the subject was done through the pie graphs
and the result found was that most of the expenditure was done in groceries and rations department.
The second aspect under study was made on the amount spent per family of 4 per year on Groceries and
Snacks. The analysis made based on the data depicted that Seekers & Strivers spend the maximum
average amount on food and beverages.
The third aspect of study was made on amount spent per person per year on dining out. Through our
analysis according to the data we concluded with the help of the graph that half of the Globals total
expenditure on food is on dining out.
Finally we have shown a histogramical analysis of seekers and strivers, globals and aspirers with respect
to their expenditure upon fields of health, task, experimentation, peer group and quantity. Through our
analysis we calculated that Globals spends most on Health & Taste ,the Seekers & Strivers spends most
on the Taste while the Aspirers spends most on Health
All these graphs were done to give a clear understanding upon the subject of consumer trend and their
expenditure behavior.

II.

Emotional payoffs associated with food and beverages :

Makes Me Feel Healthy

Juice
Poultry

Globals
Seekers & Strivers

Soups & Salads

Aspirers
Fruits & Vegetables
Bakery
0

10

20

30

40

50

60

Lends Mental Stability

Energy & Health Drinks

Aerated Drinks
Mocktails
Hot Beverages
Staples
Poultry

Globals

Functional Foods

Seekers & Strivers

Dry Fruits

Aspirers

Sweet & Savory Snacks

Confectionary
Ice Cream
Dairy
Fruits & Vegetables
0

10

20

30

40

50

Makes Me Feel Attractive

Indian Sweets
Alcoholic Beverages
Energy & Health Drinks
Juice
Aerated Drinks
Mocktails
Hot Beverages
International Cuisine
Staples

Globals

Poultry

Seekers & Strivers

Aspirers

Functional Foods
Dry Fruits
Sweet & Savory Snacks
Confectionary
Soups & Salads
Ice Cream
Dairy
Fruits & Vegetables
0

10

15

20

Fills Me With A Will To Win

Indian Sweets
Energy & Health drinks
Juice
Aerated Drinks
Mocktails
Hot Beverages
Staples
Functional Foods
Confectionary
Soups & Salads
Dairy
Fruits & Vegetables
Bakery

Globals
Seekers & Strivers
Aspirers

10

20

30

40

50

Helps Me Escape Pressures of Life

Alcoholic Beverages
Aerated Drinks
Hot Beverages

Globals
Seekers & Strivers

Poultry

Aspirers
Confectionary
Dairy
Bakery
0

10

15

20

25

30

Brings Out Kindness In Me

Indian Sweets
Alcoholic Beverages
Juice
Aerated Drinks
Hot Beverages
International Cuisine
Staples
Poultry
Functional Foods
Sweet & Savory Snacks
Confectionary
Soups & Salads
Ice Cream
Dairy
Fruits & Vegetables
Cereal
Bakery

Globals
Seekers & Strivers
Aspirers

10

15

20

25

Helps Me Build Good Relationships

Indian Sweets
Alcoholic Beverages
Juice
Aerated Drinks
Mocktails
Hot Beverages
International Cuisine
Staples
Poultry
Dry Fruits
Sweet & Savory Snacks
Confectionary
Soups & Salads
Ice Cream
Dairy
Bakery

Globals
Seekers & Strivers
Aspirers

10

20

30

40

50

Helps Me Be In Control

Indian Sweets
Alcoholic Beverages
Health & Energy Drink
Juice
Aerated Drinks
Hot Beverages
Globals

International Cuisine

Seekers & Strivers

Staples

Aspirers

Poultry
Sweet & Savory Snacks
Confectionary
Dairy
Fruits & Vegetables
Bakery
0

10

15

20

25

30

Lets Me Express My Creativity

Indian Sweets
Alcoholic Beverages
Health & Energy Drink
Juice
Aerated Drinks
Mocktails
Hot Beverages
International Cuisine
Staples
Poultry
Sweet & Savory Snacks
Confectionary
Soups & Salads
Ice Cream
Dairy
Fruits & Vegetables
Bakery

Globals
Seekers & Strivers
Aspirers

10

15

20

25

30

35

Helps Me Indulge

Indian Sweets
Juice
Aerated Drinks
Mocktails
Hot Beverages
International Cuisine
Staples
Poultry
Dry Fruits
Sweet & Savory Snacks
Confectionary
Ice Cream
Dairy
Fruits & Vegetables
Bakery

Globals
Seekers & Strivers
Aspirers

10

15

20

25

30

Makes Me Wise/Conscious

Energy & Health Drinks

Juice
Aerated Drinks
Mocktails
Hot Beverages
Staples
Poultry
Functional Foods
Dry Fruits
Sweet & Savory Snacks
Confectionary
Soups & Salads
Dairy
Fruits & Vegetables
Bakery

Globals
Seekers & Strivers
Aspirers

10

15

20

25

30

Reflects My Spirituality

Indian Sweets
Energy & Health Drinks
Mocktails
Hot Beverages
Globals

Staples

Seekers & Strivers

Poultry

Aspirers

Dry Fruits
Confectionary
Dairy
Fruits & Vegetables
0

10

20

30

40

Brings Out My Romantic Side

Indian Sweets
Alcoholic Beverages
Juice
Aerated Drinks
Mocktails
Hot Beverages
International Cuisine
Globals

Staples

Seekers & Strivers

Poultry

Aspirers

Functional Foods
Sweet & Savory Snacks
Confectionary
Ice Cream
Dairy
Fruits & Vegetables
Bakery
0

10

20

30

40

Makes Me Feel Prosperous

Indian Sweets
Alcoholic Beverages
Aerated Drinks
Mocktails
Hot Beverages
International Cuisine
Staples
Poultry
Dry Fruits
Sweet & Savory Snacks
Confectionary
Ice Cream
Dairy
Fruits & Vegetables
Bakery

Globals
Seekers & Strivers
Aspirers

10

20

30

40

50

Executive Summary:
The emotional aspect of Indian consumer plays a very important role in order to understand their
expenditure behaviour for different products.In order to study this aspect we made an analysis upon the
emotional payoffs of consumer associated with food and beverages.
The three majour consumer segments of globals , seekers and strivers and the aspirers were taken.The
first aspect of health was taken into account.After sampling and analysing data we came to conclusion
that all the three segments spends most on dairy products and * Ice creams, Sweet & Savory snacks, Dry
fruits, Staples, International Cuisine, Mocktails, Aerated Drinks, Energy drinks and Alcoholic beverages
are zero for all categories.
The next aspect was Lends mental stability, while analysing we found that all three generally spends
much on hot beverages and Bakery, Cereal, Soups & Salads, International Cuisine, Alcoholic beverages,
Indian sweets & Ghee are zero for all categories.
The makes me fell atractive emotional behaviour of the three segment was quite different from each
other.Another emotional aspect which was under study was the product which fills the consumer with the
will to win.In this case there was an extrordinary increase in the field of energy drinks in Global seagment
and cereals, Ice creams, Sweet & Savory snacks, Dry fruits, Poultry, International Cuisine, Alcoholic
beverages are zero for all categories.
The emotional aspect of Helps me to escape pressures of life was different with different seagements.The
seekers and strivers excapes pressure through alcohol while globals with confectionary and aspirers with
the use of hot beverages. Cereals, Ice creams, Soups & Salads, Dry fruits, International Cuisine and
Energy & Health drinks are zero for all categories.
To be in control the global used maximum of areated drinks .The emotional aspect of Relationship
building was also analysed in which global with the use of hot beverages had maximum build up.Cereals,
Fruits & Vegetables, Functional Foods and Energy and Health Drinks are zero for all categories.In order
to express the creativity the aspirers topped the graph with expending large amount on fruits and
vegetables.When it came to emotional aspect of help me indulge, the global topped with max expenditure
on confectionary.
In the field of make me Wise Concious the global went on spending the max in dry fruits and Cereals, Ice
Cream, International Cuisine, Alcoholic beverages and Indian sweets and Ghee are zero for all
categories.The Sprituality concluded that Globals goes for Indian sweets and aspirers with fruits and
vegetables.Romantic side was another emotional aspect which we analysed.Here confectionary was the
key source for all the three groups. * Cereals, Soups & Salads, Dry fruits, Staples, Energy and Health
drinks zero for all categories.
In the aspect of Feeling Prosperous the globals leads the chart with spending maximum on inernational
cusine.Cereals, Soups & Salads, Functional Foods, Juice and Energy & Health drinks are zero for all
categories.
This analysis by using the data gave us a clear study about the emotional aspect of cosumers towards
different products.

III.

Identifying key values for each socio-economic class:

Aspirers

Prosperous

Indian Sweets
Alcoholic Beverages

Romance

Energy Drink

Spirituality

Juice

Feel wise

Aerated Drinks
Mocktails

Indulgence

Hot Beverages

Creativity

International Cousine
Staples

Be in control

Poultry
Build good relationships

Functional Foods
Dry Fruits

Brings out kindness

Sweet & Savoury Snacks

Escape pressures of life

Confectionary
Soups & Salads

Will to win

Ice Cream
Attractive

Dairy
Fruits & Vegetables

Mental stability

Cereal
Healthy

Bakery
0

10

20

30

40

50

60

Seekers & Strivers

Prosperous

Indian Sweets

Romance

Alcoholic Beverages
Energy Drink

Spirituality

Juice
Feel wise

Aerated Drinks
Mocktails

Indulgence

Hot Beverages

Creativity

International Cousine

Be in control

Staples
Poultry

Build good relationships

Functional Foods
Brings out kindness

Dry Fruits
Sweet & Savoury Snacks

Escape pressures of life

Confectionary

Will to win

Soups & Salads

Attractive

Ice Cream
Dairy

Mental stability

Fruits & Vegetables

Healthy

Cereal
0

10

15

20

25

30

35

40

Globals

Prosperous

Indian Sweets
Alcoholic Beverages

Romance

Energy Drink
Spirituality

Juice
Aerated Drinks

Feel wise

Mocktails

Indulgence

Hot Beverages

Creativity

International Cousine
Staples

Be in control

Poultry
Build good relationships

Functional Foods
Dry Fruits

Brings out kindness

Sweet & Savoury Snacks

Escape pressures of life

Confectionary
Soups & Salads

Will to win

Ice Cream
Attractive

Dairy

Mental stability

Fruits & Vegetables

Cereal

Healthy

Bakery
0

10

20

30

40

50

60

Executive Summary:
The expenditure of each class that is the aspirers, the seekers and strivers and globals should be taken into
account in order to get a better understanding of consumer expenditure trend Here we used our data
analysis in order to study the behavioral aspect of each socio-economic class with respect to their
expenditure upon various products.
Through the data we first analyzed and studies the aspirers expenditure behavior with respect to various
products in contrast with the emotional aspect. In this study we find that the spirituality mock tails
accounted the most while Indian sweets remained zero. In the fields of creativity the dry fruits was the
highest and likewise all other aspects were analyzed based on our data.
A similar study was done for seekers and strivers where romance was maximum with confectionary
products, spirituality was maximum with Indian sweets and other different emotional aspects were
analyzed based on our data.
Lastly we analyzed the third Global group with the help of our data. The graph clearly depicts it.
This study gave us the clear aspect of the expenditure behavior of each socio-economic class with respect
to different products related to different emotions.

Conclusion
5.1. Aspirations
5.1.1. Aspirers
Three core aspirations have been identified for Aspirers:

Acceptance This SEC is looking fore-mostly for acceptance. They are deeply influenced by
peer pressure due to this. Word of mouth spreads fast due to this, as each person desires what the
other people in the peer group have. It is thought that they would be accepted more easily into
their surrounding society by having a similar standard of living, which can be achieved by using
products by similar brands.

Mimicking the Rich The Aspirers have a strong desire to use the same brand as the relatively
richer, also, moving towards acceptance. Poor people try to mask their poverty in order to receive
better treatment.

Following fads in the peer group This attribute also promulgates acceptance. Having aerated
drinks started as a fad, in this category, making it a popular occurrence now.

5.1.2. Seekers & Strivers

Recognition of achievements Seekers and Strivers are looking forward to move up the pyramid
and for that theyre looking for recognition of their achievements. Many brands have realized this
desire and are positioning themselves accordingly. Example Mont Blanc and Bournville.

Elevated lifestyle The Seekers & Strivers are looking to have elevated lifestyles including use
of prestigious brands that give them a sense of accomplishment.

Status Symbols Showing off of status symbols may carry subtle examples of esteem which in
turn may result in social gains.

5.1.3. The finding found in the Globals category have been segregated into Globals I and Globals II.
5.1.3.1. Globals I
Globals-I have the usual perceived characteristics of the rich. It is usually seen by the strivers who have
recently jumped into the higher income group and people with large egos.

Luxury brands Globals I are deeply involved in luxury purchases of handbags, accessories, cars
etc. They perceive these t be as a requisite to show to themselves and others, their affluent
standing in the society. Luxury purchases are starting much younger, at high school levels... In
fact India is one of the youngest consumer subsets in the world.

Preferential Treatment Globals I enjoy preferential treatment and seek it as their right.

Customized Products They believe that products should be customized to their liking so as to
guarantee a uniqueness factor.

5.1.3.2. Globals II
Globals-II have long been in this income group and are beyond the luxuries a higher income offers. Their
annual household income is usually much beyond Rs.21,00,000 and they are usually of an older age
group.

Varied Experiences This SES is looking for varied experiences- costly or not, to enrich their
lives. These experiences include extravagant spa treatments in luxury getaway resorts to
meditating in Buddhist monasteries.

Giving back to the society Globals II feel that the society has given them in plenty and now its
their turn to give back to the society in terms of their time, money and interest.

Social Consciousness Globals II are becoming increasingly more socially conscious in terms of
how socially responsible products and brands are. They give preference to brands that are fair
trade and working towards the development of the country.

Eating Healthy They also want to eat healthy as they consider that the mantra to a healthy
living. They have put packaged food and aerated drinks at a minimum and gone back to eating
simple Indian food.

5.2. Core Aspiration Generated

From the above given aspirations of each category, we can identify the core aspiration of each SES.
5.2.1. Aspirers
Aspirers truly desire a Sense of Belonging.

Figure 5.1. Core Aspiration Aspirers

5.2.2. Seekers & Strivers
Seekers & Strivers desire higher esteem for themselves.

Figure 5.2. Core Aspiration Seekers & Strivers

5.2.3. Globals
Globals-I seek exclusivity whereas Globals-II seek spiritual wealth.

Figure 5.3. Core Aspiration Globals

*These finding are in accordance with Maslows hierarchy need model.

6. Advertisements targeted at each SES

This section identifies advertisements that specifically target each of these SESs. The advertisements are
segregated by:

Positioning - Defines how the same product has been positioned differently to each SES, by
showing s similar lifestyle, values and aspirations so that the targeted people can identify with the
product.

Price: The product price demarcates the targeted SES.

Value: The value added to the basic product by attributes that are important to each SES.

6.1. Aspirers
S.No.

1.

Positioning
Similar lifestyle, values and
aspirations.
Dairy milk Jeans, 2010

Price
Targeting through keeping the
price low
ParleG Roko mat, toko mat,
2013

Value
Differentiated products
and smaller sizes
Maggi Masala e Magic
Trophy, 2013

2.

Pepsi Oh yes, abhi, 2013

Rasna Life main Rasna

milaofy, 2014

Chhota Coke Amir

Khan, 2003

3.

Coke Rickshaw, 2014

5 Star Ek bilang patloon, 2011

Kurkure Rs5 pack, 2013

4.

Tata Salt Mary Kom,2014

5.

Amul Har kahani, Amul

kahani, 2014

Lays Chaat Street Dahi

Baray, 2013

Table 6.1. Ads targeting Aspirers

6.2. Seekers & Strivers

S.No.

Positioning
Similar lifestyle, values and
aspirations.

Price
Competitive Pricing

Value
Schemes, Product
Differentiation, Cool Factor

1.

Dairy milk Jeans, 2010

Maggi Hungroo Badi bhook ke

liye, 2014

McDonalds Happy price

menu, 2012.

2.

Coke Imran Khan and Kalki,

Coke Haan main crazy hoon,

Kurkure 20% extra, 2011

2010

2013

3.

Pepsi India Ranbir Kapoor,

2010

Britannia Good Day, Mother in

law, 2013

Bru Instant Coffee 20%

extra, 2013

4.

Amul - Har Ghar, Amul Ghar,

2014

Lays Cricket couch, 2012

Kurkure Super Saver

pack, 2013

5.

Tata Salt Chess, 2013

Nimbooz Kapil and Gippy,

2013

Pepsi My Can/Atom,
2013

Table 6.2. Ads targeting Seekers & Strivers

6.3. Globals
S.No.

Positioning
Similar lifestyle, values and
aspirations.

Price
Higher than average competitive
pricing to create exclusivity.

1.

Dairy milk Snowfight, 2014

Bournville Not so Sweet, 2013

2.

Pepsi Change the game

- football, 2012

Dairy milk Silk Traffic Jam,

2013

Amul Manthan, 2011

3.

Coke Aaj ki raat, 2011

Dark Fantasy Chocolate, 2013

Lays International
Flavours, Baked, Low fat

4.

Red Bull Gives you wings,

2013

Borges Olive Oil-Family,

2012

5.

Tang Bachon Ka Khel, 2014

Atta Maggi Madhuri,

2014

Table 6.3. Ads targeting Globals

Value
Social messages, Product
differentiation, Health
benefits
Coke Reasons to believe,
2012

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-Thank You-