Read the article on Tapping into frozen snacks market to answer questions 1 and 2. Tapping into the Frozen Snacks market Frozen ready meals is the fastest growing category in the frozen foods industry in India. Products like frozen kebabs, nuggets, French fries, fillets and cutlets have become popular because of the convenience of at-home consumption. Large companies, such as Al Kabeer Exports, McCain Foods, and Venkys India, have been expanding their presence in frozen snacks segment, in the last 5-6 years and account for a significant share of the market. These brands are well known and available mostly in modern trade format stores. Overall, the share of frozen foods (ready meals & others) in an Indian household is still quite negligible, but share of frozen foods in urban households in large cities has gone up significantly over the years with more brands and offerings in the market. The market for frozen foods is projected to grow at a CAGR of around 15%, during 2016-2021 , and the frozen ready meals category (including snacks), in particular, is projected to grow at a CAGR of 7.3% (Euromonitor). In home consumption of non-vegetarian frozen snacks accounted for a significant share of total sales. But consumption of vegetarian snacks other than fries/ wedges was still quite low. Doubts about ingredients and processing of foods along with non-vegetarian snacks was a concern cited by vegetarian households who preferred to prepare their snacks at home. Most of the snacks available in the market contained preservatives and had to be fried or heated in the microwave. Companies selling frozen snacks were largely focused on serving consumers through modern retail channels, such as hypermarkets and supermarkets, because of availability of freezers as well as ease of promotion through dedicated shelf space. Research indicated that attractive displays of these products in supermarkets and hypermarkets was a key factor in pushing consumer purchase. However access to modern trade was a big challenge for small players. Getting shelf space in modern trade is difficult because they charge high listing fee in the range of Rs.4000-6000 per outlet per month, for a multi-store deal. In case of a big national chain of stores this might go up to Rs 3-4 lakhs per month. If products were placed at the bottom of the freezer, then the stocking was of little use as it was not likely to be noticed by the buyer. Costs to transfer products from plant to cold storage and then on to the retail outlets is also an expensive affair and cold chain infrastructure is poor in many places.There was expected to be a rise in the number of retail chains and increased refrigeration facilities in small retail shops. Cold chains are expected to grow at a CAGR of 24% in coming years. Changes in lifestyle, increasing number of nuclear families and working women are some of the trends impacting food consumption habits at home. There is also an emerging movement towards sustainability and reduction of carbon footprint. In a survey conducted by PwC-FICCI, the most important factors considered by consumers while making purchase decisions regarding processed food products were found to be expiry date, health (nutritional composition of the product) and brand. There have been concerns on food safety standards following the controversy over Nestls instant Maggi noodles. Such incidents have resulted in creating consciousness amongst the consumers and have forced them to take informed decisions while purchasing processed food items. Regulatory monitoring has also become stricter.

1a. Assume you work with First Foods a b2b company supplying frozen food supplies to the hotel industry. First Foods now wishes to enter the b2c frozen snacks market. They have good manufacturing facilities and technical expertise but lack a marketing network in the b2c space. Analyze the current context and market for frozen foods in India using applicable framework/s. Do you think there could be an opportunity for First Foods to enter the b2c market for frozen snacks? Give reasons for your answer. (300-400 words, 10 marks)

1b. If First Foods enters the b2c market, identify three things they need to focus on the most in their marketing strategy? Give reasons. (200-250 words, 6 marks)

2. What should be the focus of marketing strategy of existing players like McCain foods at this stage? (200-250 words, 6 marks)