MTR-Ready to Eat

Section A Group 8
NEELIKA
NEHA
Nikhil
Phaneendra
Rachit
MTR- The Company

 Started as MTR restaurant in Bangalore in 1924

 MTR brand represents two separate entities; the MTR restaurant business
and MTR Foods, the pre-packaged food business
 ₹700 crore company which is growing at a CAGR of 18%
 In 1975 emergency, a Food Control Act forced it to diversify into the instant
food business, selling ready-to-eat snacks
 In 2007, Orkla Group, a Norwegian conglomerate acquired the packaged foods
business for $80 Million
 MTR's wide range of products spans Breakfast Mixes, Masalas and Spices,
Ready to Eat Meals, Dessert Mixes, Snacks, Beverages etc
MTR- Ready to Eat

 DRDO’s Defense Food Research laboratory in Mysore transferred their life

sciences technology to MTR Foods for commercial production for Ready to Eat
Food
 MTR launched a range of Ready to Eat products in 2000
 Exports account for nearly 20% of its revenue
Product Range
MTR- Competitors
 Major- ITC, Kohinoor Foods, Gits and Tasty Bite Eatables
 Minor-ADF Foods, Priya Foods and Hein
RTE Market Share

Others
16%

ITC and MTR

Kohinoor Foods, 49%
Gits and Tasty
Bite Eatables
35%

ITC and MTR Kohinoor Foods, Gits and Tasty Bite Eatables Others
 Segmentation, Targeting and Positioning
MARKET SEGMENTATION POSITIONING

TARGET GROUPS

Working Women | Children-Students | Bachelors

Rapid Preparation

Urban Lifestyle
Handy Packing

OTHERS
POD POP
- Unparalleled taste & - Same Target market
Back Packers| Global Indian NRIs | Migrant Working ppl flavor
- Uncompromising Food - Competitive Pricing
Quality
- Vegetarinism - More or less same no.
of varients
 S W
Strong Brand Recognition & Equity Perception about RTE Category(artificial flavours and
100% vegetarian preservativesLack of Variety in RTE
100% natural ingredients South Indian Cuisine as their forte
“Just Cooked” Freshness’ Weak Distribution Network
Authentic Indian Taste Lesser Shelf Space
Healthy food options Weak Promotions
3 min breakfast(most important meal) Less frequent purchase
Strong overseas presence Less presence in semi-urban and rural areas

SWOT
O
RTE will be a ₹640-crore industry by 2019 in India, according to
T
ValueNotes.
Bad economic situation and food inflation in the last few years
In terms of value, the global ready-to-eat food products market
is expected to expand at a CAGR of 7.2% during the forecast Indian housewife is not yet ready to outsource her meals
period (2016–2026) and is estimated to be valued at US$ 195.3 Bn Competition from Big Brands like Britannia,Nestle,Kohinoor,Mc-
by the end of 2026. Kain
Use of latest technology from the Defence Food Research Technology and packaging costs are a little high
Laboratory
Entry of HUL-India’s Largest FMCG in RTE Products
Expansion in Frozen Foods
Non-Vegetarian RTE Market
Growing youth population and working woman segment
PESTEL ANALYSIS

 Political Factors
 In 1975 emergency, a Food Control Act mandated that food was to be sold at very
low prices
 MTR incurred heavy losses in restaurant business and could not maintain high
standards
 This led MTR to step into the Ready to Eat Market
 Economic Factors
 Rs 700 crore company which is growing at a CAGR of 18%(RTE segment)
 Growth due to rise in income of Indian population, dual-income families
 Listed as a Fortune Next 500 (India’s Top Midsize) company for 2016.
PESTEL ANALYSIS

 Social Factors
 60% revenue is generated from South India
 100% vegetarian food
 Technological Factors
 Packaging technology from the Defense Food Research Laboratory in Mysore
 No preservatives added to the food, no refrigeration required
 Launched online marketplace to reduce distribution costs
Porter’s Five Forces
 Threat of New Entry- (High)

Capital Requirements (Low) Absolute Cost Advantages (High) Economies of Scale (Low)

Rivalry among the existing competitors - (Low)

Diversity of Competitors (low) Product Differentiation (Low) Concentration (High)

Bargaining Power of Buyers (Low)

“Customer has enough option to switch so they have less bargaining power”

Bargaining Power of Supplier (Low)

Availability of many competitive suppliers reduces the supplier power

Threat of substitutes (High)

Costs for customers to the substitute is negligible Buyer willing to search out for substitutes
4 P’s Analysis
• Headquarter base at Bengaluru,
karnataka
• Domestic presence in most parts
of India
• Exported to various countries in
world market
• Distributed through
supermarkets, hypermarkets,
grocery stores, etc.
• Online selling through own
website (shop.mtrfoods.com)
• Also has presence on e-commerce
like Amazon
Promotion
• Launched several ad campaigns via
TV, magazines, newspapers & social
media platforms
• Also launched sampling activities at
popular places
• For the product line of RTE, the
prices range from Rs.35-95 depending
on the dish and the quantity offered.
• Indian desserts like Gulab Jamum
come in Rs. 35 portion packs, while
the main course dishes are sold in the
range of Rs. 80-95
• Provides product bundling pricing
during festive seasons
Place Price
• Within RTE, MTR has a
diversified range of products
Product • Focussed on various quality
certifications
• Variety of North Indian & South
Indian dishes, taste of home
cooked food with “just cooked”
freshness
• Soups, curries, paneer,
breakfast, desserts, etc.
 BRAND EQUITY MODEL
Strong Brand resonance
Loyalty Consumer
Loved brand Brand
resonance
Quality Food items:
Likeability Joy, richness, healthy,
Relevance Consumer Consumer convenience
Superiority Judgements Feelings

Consistent delivery on
taste with the purest Pure and Perfect
Brand Brand
Ingredients at affordable Performance Imagery
prices

High recognition in RTE

Brand Salience market
Pricing strategy

 MTR Foods has adopted a market penetration pricing policy(Fixed Pricing)

 Pocket-friendly and affordable rates will help the company in reaching further
markets
 Launched web portal to cut down distribution costs
 Promotional policies and offers incentives like 20% extra product with the
original.
 Products-Paneer Butter Masala,Dal Makhani,Dal Fry,Paneer Makhani,Butter
Paneer,Jeera Rice,Rasam Rice,etc
 Quantity:300gm ,Price-80 to 95
 Quantity: 250gm,Price-70 to 90

 Products-Rasogulla,Gulam Jamun
 Quantity:120 gm ,Price- 35
 Quantity:500 gm ,Price-115
 Quantity:1 kg .Price-210
 Product(3 Min Breakfast Mix):Khatta Meetha Poha,Masala Oats,Vegetable
Upma,etc
 Packaging-Pouch
 Quantity-60gm ,Price- 20
 Quantity-160gm ,Price-48

 Product-Masala Upma,Kesari Halwa,Poha,Masala Oats,Vegetable Upma

 Packaging-Cup
 Quantity-80gm ,Price-50
 DID YOU KNOW?????

MTR Foods first company to It is believed that MTR brought

MTR stands for “Mavalli Tiffin
create “FROZEN DOSA” which can the first “Ice cream vending
Room”
be heated and eaten right away machine” to India

MTR holds a record of being the first fast food restaurant in the world to MTR: First Indian Company to be
serve 21000 customers in 7 hours. certified with the “Hazard
Analysis Critical Control Point”-a
it is not preservatives but retort packaging technology that helps keep rigorous standard of food safety
the food fresh. and hygiene

MTR invented “RAVA IDLI” due to shortage of rice

during WW-II
Appendix

 https://www.youtube.com/watch?time_continue=24&v=HiqGYN9ll5w
 https://www.youtube.com/watch?v=1m1uiSkPzK0
 https://www.youtube.com/watch?v=by53a9JV9P8
 https://www.youtube.com/watch?v=b9zj9OQ-iQw
 https://www.youtube.com/watch?v=dXrr4Oe3_Bw
Thank You!!!