Launching Tofu in India

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Launching tofu in India ASA is considering expanding its operations in Western India by introducing new products. Health consciousness amongst Indians has been on the rise since the past decade or so. This had led to people to look for healthier foods and balanced diet to reduce the risk of diseases and health complications in future. Being a soya product, Tofu is rich in protein and offers health related benefits for consumers. ASA wanted to use this opportunity to introduce a Tofu product in the Indian market. American Soy bean Association (ASA) undertook a study to develop an entry level strategy for ASA to launch their product TOFU vis-à-vis Cottage Cheese (Paneer). The detailed study of the project revolved around the attributes that were considered by paneer consumers while purchasing and consuming paneer. The study would try to answer the following questions ie whether to introduce a new tofu product in the market? Determine the product positioning of the Tofu product;, to assess the market potential for tofu in India For this purpose they hired an MBA student of IMT Ghaziabad, Mr Nilay who was completing his second year of study. Mr Nilay had to advice ASA (American Soy bean Association) whether they should go ahead with the launch of their product Tofu as a paneer substitute. He also had to advice them on the product concept to pursue with consumers to enable substitution of tofu with paneer products INDUSTRY OVERVIEW

Tofu, also known as soybean curd, is a soft, cheese-like food made by curdling fresh hot soymilk with a coagulant. Traditionally, the curdling agent used to make tofu is nigari, a compound found in natural ocean water, or calcium sulfate, a naturally occurring mineral. Curds also can be produced by acidic foods like lemon juice or vinegar. The curds then are generally pressed into a solid block. For those interested in tofu, newer naturally concentrated products are available with much better flavor than tofu products. Because of a patented, natural concentration process, just 1 Revival Soy bar or shake contains the amount of isoflavones found in about a pound of tofu. Learn more. Tofu was first used in China around 200 B.C. Although the discovery of the process for making tofu is lost to the ages, Chinese legend has it that the first batch of tofu was created by accident. A Chinese cook added nigari to flavor a batch of pureéd, cooked soybeans; the nigari produced the curd that we know today as tofu. Today, tofu is a dietary staple throughout Asia. This delicate food is made fresh daily in thousands of tofu shops and sold on the street. 1

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In recipes, tofu acts like a sponge and has the miraculous ability to soak up any flavor that is added to it. Crumble it into a pot of spicy chili sauce and it tastes like chili. Blend it with cocoa and sweetener and it becomes a double for chocolate cream pie filling. Cubes of firm tofu can be added to any casserole or soup. Types of Tofu Three main types of tofu are available in American grocery stores. Firm tofu is dense and solid and holds up well in stir fry dishes, soups, or on the grill... anywhere that you want the tofu to maintain its shape. Firm tofu also is higher in protein, fat and calcium than other forms of tofu. Soft tofu is a good choice for recipes that call for blended tofu, or in Oriental soups. Silken tofu is made by a slightly different process that results in a creamy, custard-like product. Silken tofu works well in pureed or blended dishes. In Japan, silken tofu is enjoyed "as is," with a touch of soy sauce and topped with chopped scallions. Tofu Nutrition Facts Tofu is rich in high-quality protein. It is also a good source of B-vitamins and iron. When the curdling agent used to make tofu is calcium salt, the tofu is an excellent source of calcium. While 50 percent of the calories in tofu come from fat, a 4-ounce serving of tofu contains just 6 grams of fat. It is low in saturated fat and contains no cholesterol. Generally, the softer the tofu, the lower the fat content. Tofu is also very low in sodium, making it a perfect food for people on sodium-restricted diets. Buying & Storing Tofu Tofu most commonly is sold in water-filled tubs, vacuum packs, or in aseptic brick packages. Tofu is usually found in the produce section of the grocery store, although some stores sell tofu in the dairy or deli sections. Tofu is sometimes sold in bulk in food cooperatives or Asian markets. Unless it is aseptically packaged, tofu should be kept cold. As with any perishable food, check the expiration date on the package. Once the tofu package is open, leftover tofu should be rinsed and covered with fresh water for storage. Change the water daily to keep it fresh, and use the tofu within a week. Tofu can be frozen up to 5 months. Defrosted tofu has a pleasant caramel color and a chewy, spongy texture that soaks up marinade sauces and is great for the grill. Tips for Using Tofu Tofu is for everyone. The soft consistency of tofu and its mild taste make it a perfect food for anyone. It is a good source of protein for elderly people who prefer dishes that are easy to chew and digest. Soft tofu that has been pureed with fruits or vegetables is a good first protein food for infants. Toddlers can enjoy chunks of cooked tofu for snacks or meals. 2

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Varieties There is a wide variety of tofu available in both Western and Eastern markets. Despite the daunting variety, tofu products can be split into two main categories: fresh tofu, which is produced directly from soy milk, and processed tofu, which is produced from fresh tofu. Tofu production also creates important side products which are often used in various cuisines. Fresh tofu Depending on the amount of water that is extracted from the tofu curds, fresh tofu can be divided into three main varieties. 

Soft/silken tofu (嫩豆腐 or 滑豆腐, nèn dòufǔ or huá dòufǔ, in Chinese, lit. "soft tofu" or "smooth tofu"; 絹漉し豆腐, kinugoshi tōfu in Japanese, lit. "silk-filtered tofu"; 순두부, sundubu in Korean, lit. "mild tofu"): This undrained tofu contains the highest moisture content of all fresh tofus[5] Its texture can be described as similar to that of very fine custard. In Korea and Japan, traditional soft tofu is made with seawater. Douhua (豆花, dòu huā or 豆腐花, dòufǔ huā in Chinese), or tofu brain (豆腐腦 or 豆 腐脑, dòufǔ naǒ in Chinese), often eaten as a dessert, but sometimes with salty pickles or hot sauce added instead, is another type of soft tofu with an even higher moisture content. Because it is nearly impossible to pick up this type of tofu with chopsticks, it is generally eaten with a spoon. Edamame tofu is a Japanese variety of kinugoshi tōfu made from edamame (fresh green soybeans); it is pale green in color and often studded with whole edamame.

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Asian firm tofu (simply called 豆腐 dòufǔ in Chinese; 木綿豆腐, momendōfu in Japanese, lit. "cotton tofu"): Although drained and pressed, this form of fresh tofu still contains a great amount of moisture. It has the firmness of raw meat but bounces back readily when pressed. The texture of the inside of the tofu is similar to that of a firm custard. The skin of this form of tofu has the pattern of the muslin used to drain it and is slightly more resilient to damage than its inside. Can be picked up easily with chopsticks.[6][5]

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Western firm/dried tofu (豆乾, dòu gān in Chinese, lit. "dry tofu"): An extra firm variety of tofu with the least amount of moisture of all fresh tofus. It has the firmness of fully cooked meat and a somewhat rubbery feel similar to paneer. When sliced thinly, this tofu can be crumbled easily. The skin of this form of tofu has the pattern of the muslin used to drain and press it. Western firm tofu is milled and reformed after the pressing and sometimes lacks the skin with its cloth patterning. One variety of dried tofu is pressed especially flat and sliced into long strings with a cross section smaller than 2 mm × 2 mm. Shredded dried tofu (豆乾絲, dòu gān sī in Chinese, or simply 乾絲, gān sī), which looks like loose cooked noodles, and can be served cold, stir-fried, or similar in style to Japanese aburaage. Fresh tofu is usually sold completely immersed in water to maintain its moisture content. 3

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Processed tofu Many forms of processed tofus exist, due to the varied ways in which fresh tofu can be used. Some of these techniques likely originate from the need to preserve tofu before the days of refrigeration, or to increase its shelf life and longevity. Other production techniques are employed to create tofus with unique textures and flavours.[8]

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Fermented 

Pickled tofu (豆腐乳 in Chinese, pinyin: dòufǔ rǔ, lit. "tofu dairy," or 腐乳; chao in Vietnamese): Also called "preserved tofu" or "fermented tofu," this food consists of cubes of dried tofu that have been allowed to fully air-dry under hay and slowly ferment from aerial bacteria.[8] The dry fermented tofu is then soaked in salt water, Chinese wine, vinegar, and minced chiles, or a unique mixture of whole rice, bean paste, and soybeans. In the case of red pickled tofu (紅豆腐乳 in Chinese, Pinyin: hóng dòufǔ rǔ), red yeast rice (cultivated with Monascus purpureus) is added for color.[9]



Stinky tofu (臭豆腐 in Chinese, Pinyin: chòu dòufǔ): A soft tofu that has been fermented in a unique vegetable and fish brine.[8] The blocks of tofu smell strongly of certain pungent cheeses, and are described by many as rotten and fecal. Despite its strong odour, the flavour and mouthfeel of stinky tofu is appreciated by aficionados, who describe it as delightful. The texture of this tofu is similar to the soft Asian tofu that it is made from. The rind that stinky tofu develops from frying is said to be especially crisp, and is usually served with soy sauce, sweet sauce, and/or hot sauce.

Flavoured Flavours can be mixed directly into curdling soy milk while the tofu is being produced. 

Sweet: Common sweet dessert tofus include peanut tofu (落花生豆腐, luòhuāshēng dòufǔ in Chinese and jimami-dōfu in Japanese), almond tofu (杏仁豆腐, xìngrén dòufǔ in Chinese; 杏仁豆腐, annindōfu in Japanese), mango tofu, and coconut tofu. In order to produce these forms of tofu, sugar, fruit acids, and flavourants are mixed into soy milk prior to curdling. Most sweet tofus have the texture of silken tofu and are served cold. 

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Products called "almond tofu" in some cases are actually not made from tofu but are instead gelatinous desserts made from agar or gelatin and whitened with milk or coconut milk. In Japan these are canned with syrup and sold as a sweet dessert.

Savoury: Egg tofu (蛋豆腐; dàn dòufǔ, in Chinese) (玉子豆腐; yùzǐ dòufǔ; lit. "jade tofu," in Chinese; 玉子豆腐; tamagodōfu, in Japanese) is the main type of savoury flavoured tofu. Whole beaten eggs are filtered and incorporated into the soy milk before the coagulant is added. The mixture is filled into tube shaped plastic bags and allowed to curdle. The tofu is then cooked in its packaging and sold. Egg tofu has a pale golden color that can be attributed to the addition of egg and, occasionally, food coloring. This tofu has a fuller texture and flavour than silken tofu, which can be attributed to the presence of egg fat and protein. 5

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Fried 

With the exception of the softest tofus, all forms of tofu can be fried. Thin and soft varieties of tofu are deep fried in oil until they are light and airy in their core (豆泡 in Chinese, dòupào, lit. "bean bubble," describing the shape of the fried tofu as a bubble).

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Tofus such as firm Asian and dry tofu, with their lower moisture content, are cut into bite-sized cubes or triangles and deep fried until they develop a golden-brown, crispy surface (炸豆腐 in Chinese, zhà dòufǔ, lit. "fried tofu"). These may be eaten by themselves or with a light sauce, or further cooked in liquids; they are also added to hot pot dishes or included as part of the vegetarian dish called luohan zhai.

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Thousand layer tofu (千葉豆腐, 凍豆腐 or 冰豆腐 in Chinese, lit. "thousand layer tofu" or "frozen tofu"): By freezing tofu, the large ice crystals that develop within the tofu results in the formation of large cavities that appear to be layered (pseudostratified). The frozen tofu takes on a yellowish hue in the freezing process. Thousand layer tofu is commonly made at home from Asian soft tofu though it is also commercially sold as a regional specialty in parts of Taiwan. This tofu is defrosted and sometimes squeezed of moisture prior to use.[7]

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Japanese freeze-dried tofu (kōyadōfu, 高野豆腐 in Japanese): The name comes from Mount Koya, a center of Japanese Buddhism famed for its shōjin ryōri, or traditional Buddhist vegetarian cuisine. It is excellent for camping, in that it is very light, may be sold flattened, and makes a very filling nutritious meal on the road. Like many freeze-dried foods, it is soaked in hot water or broth before eating, taking on a spongy texture when reconstituted. Freeze-dried tofu is also found in instant soups (such as miso soup), in which the toppings are freeze-dried and stored in sealed pouches.

Byproducts of tofu production Tofu production creates some edible byproducts. Food products are made from the protein-oil film, or "skin," which forms over the surface of boiling soy milk in an open shallow pan. The leftover solids from pressing soy milk is called okara. Yuba Boiling of soy milk, in an open shallow pan , produces a film or skin composed primarily of a soy protein-lipid complex on the liquid surface.[7] The films are collected and dried into yellowish sheets known as yuba or soy milk skin (腐皮, fǔ pí in Chinese; 湯葉, yuba in Japanese). Its approximate composition is : 50–55% protein, 24–26% lipids (fat), 12% carbohydrate, 3% ash, and 9% moisture. [10] The yuba can also be bunched up to stick form and dried into something known as "tofu bamboo" (腐竹, fǔ zhú in Chinese; phù chúc in Vietnamese; kusatake, Japanese), or a 6

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myriad of other forms. Since tofu skin has a soft yet rubbery texture, it is folded or shaped into different forms and cooked further to imitate meat in vegetarian cuisine. Some factories dedicate production to tofu skin and other soy membrane products. Okara Okara (雪花菜, xuě huā caì, lit. "snowflake vegetable"; 豆腐渣, dòufǔ zhā, lit. "tofu sediment/residue"; kongbiji, 콩비지 in Korean), sometimes known in the west as soy pulp, is the fibre, protein, and starch left over when soy milk has been extracted from ground soaked soybeans.[7] Although it is mainly used as animal feed in most tofu producing cultures, it is sometimes used in Japanese and Korean cuisines. It is also an ingredient for vegetarian burgers produced in many western nations. Okara is rarely seen or used in Chinese cuisine. Indian Scenario: Soya bean based processed foods have been gaining popularity in the Indian market for nearly a decade now. Despite their widespread use around the world, the growth rate in Indian market has been slower, although there has been an increasing trend with respect to health conscious market segment in the recent years. Derivatives of Soya beans include Tofu, Soya milk, Soya cheese, Soya sauce and Textured Soya protein (commonly called as Soya meat) (http://www.walford.com/soyfood.htm#SOYBEANS#SOYBEANS). One of the major entrants in this market is the American Soy bean Association (ASA). (http://www.asaasc.com/us_products.htm) ASA is primarily a distributor and a marketer of US processed Soy foods in India. The Indian soya market is predominantly skewed towards Soya meat and Soya beans in their natural form. This report analyses the marketing research that could go behind introducing and positioning a new brand of Tofu, a Soya based processed product in the Indian market. This report is constrained towards the NCR region i.e Delhi, Ghaziabad, Gurgaon and adjoining markets. One reason why Tofu is likely to sell better in the region is because of heavy use of paneer in the daily dish preparation of people residing in North India. About the product Tofu is a coagulated soya milk product and its physical properties resemble that of paneer. (http://en.wikipedia.org/wiki/Tofu ) Soya milk is produced by soaking, grinding and extracting soya beans. Tofu is essentially a thick block of Soy curd. It is purely vegetarian and there are no adverse chemical reagents used in its preparation. The entire line of Soya products are characterized by extremely high protein levels. (http://www.walford.com/soyfood.htm#SOYBEANS#SOYBEANS) As a result, Soya products (including Tofu) are vegetarian substitutes of meat. Tofu is sometimes used as a substitute of paneer (cottage cheese) because of Tofu’s comparatively lower fat. Moreover tofu is free of saturated fatty acids (cholesterol). The Market India is one of the major producers of soy meal and soy bean in the world, but the production of soy meal is primarily for animal feed. MCX (MCX, Soybean Futures 7

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Feasibility study report) estimates that annual Indian soy bean production was about 6.7 million tons in 2003-2004. MP, Maharashtra and Rajasthan are the main soy bean producers in the country. About 2.5 million tons of soya beans were exported. This indicates a lack of – either a lack of local Soy bean demand or a lack of processing facilities for fulfilling this demand or both. Local producers under the brand names of Nutrela and Mealmaker have started selling soy food products. Also international juice makers like Real and Tropicana are selling soya milk along with their other juice products. These juice makers have an image of being health conscious and using ‘natural’ inputs. Soya products augur well with this image. The market for Tofu and in general other soya products is growing. The current market penetration levels of Tofu are very low. This is primarily attributed to two factors 1) Lack of awareness among consumers about the presence of tofu and its benefits 2) Consumers are unaware of how to prepare tofu based dishes and how to use tofu as substitutes in their favorite dishes. Nutritional Content of Tofu (in every half-cup serving) Protein Calories Calcium Fat Cholesterol Iron

10.1 94 227 5 0 1.82

gm calories mg gm gm mg

Source: http://vegetarian.about.com/od/healthnutrition/p/tofunutrition.htm

Nutrients in 4 ounces of:

Tofu, firm, prepared with calcium sulfate and magnesium chloride (nigari)

Tofu, soft, prepared with calcium sulfate and magnesium chloride (nigari)

Calories

79

69

Protein (gm)

9.25

7.4

Carbohydrate 1.91 (gm)

2.03

Fat (gm)

4.71

4.17

Saturated Fat .975 (gm)

.602

Cholesterol

0

0

Sodium (mg)

14

9

Fiber (gm)

1

0.2

Calcium (mg) 227

125

Iron (mg)

1.25

1.82

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Source: U.S. Department of Agriculture, Agricultural Research Service. 200 4. USDA National Nutrient Database for Standard Reference, Release 17. Nutrient Data Laboratory Home Page, http://www.nal.usda.gov/fnic/foodcomp, and from product analysis. Note: One 1/4 pound of tofu contains about 40 milligrams of healthy isoflavones. Because of new research showing greater health benefits with greater isoflavone intake, we recommend Revival Soy shakes and bars as a practical way to get more isoflavones. Each Revival Soy shake or bar contains 160 milligrams of soy isoflavones because of a patented natural concentration process. You would have to eat about 1 pound of tofu get this level of isoflavones. Mr Nilay decided that if he could figure out whether it was actually possible to substitute paneer with Tofu with consumers who preferred paneer in preparation of vegetarian dishes and the dimension on which the product can be substituted to paneer consuming customers, then the marketing mix for Tofu can be devised to gain entry into the Indian Market For this, Mr Nilay conducted a literature review of various research articles form online journals and magazines to identify the attributes relevant to paneer consumers. He followed it up with an unstructured questionnaire and conducted open ended interviews with some paneer consumers. The responses from interviews were used in framing a structured Questionnaire whuch was administered to at least 60 consumers from Delhi, Ghaziabad & Gurgaon & other tier 2 cities The sampling plan reflected the consumer profile of potential tofu consumers. Tofu, by the virtue of being positioned as an alternative for paneer, would be considered as a high end vegetarian product. Hence the target audience for the survey would be middle, upper middle class families and upper income groups. Housewives views would be very important as they can provide leads in evaluating the attributes of tofu, paneer from the point of view of preparing the dish. Housewives are also the influencers in purchase decisions and are generally more concerned about the health and nutrition aspects of food items while preparing dishes for families. He devised a research plan (Table 1): . Table 1: Research Plan Information required Total Market for dairy products Market Share of different dairy products Consumption patterns of tofu Sales of paneer brand wise Attributes/Benefits of paneer Concept testing of tofu Customer satisfaction for paneer

Research Method Secondary research

Sources of Information Indian Diary sector reports

Secondary research

Published literature on consumption of dairy products Randomly chosen Consumers Retailers Consumers Consumers Consumers

Focus Group Survey Survey Survey Survey

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Health consciousness of Consumers Consumption pattern of paneer

Survey

Consumers

Survey

Consumers

Total soya production

secondary research

Imports of tofu

Secondary research

Soy paneer production within the country

Secondary and primary research

Published literature on soya production Current figures on processed food imports Companies manufacturing soypaneer in India

The research process followed by Mr Nilay is as follows:

Step 1: Identifying attributes of tofu Mr Nilay referred to secondary sources such as published literature available on websites (http://www.veg-world.com/articles/tofu.htm) and talked to scientists and policy makers at ICAR (Indian Council for Agricultural Research). Based on their responses and his understanding of the published literature, he came up with the following attributes on which tofu could substitute for paneer. . Attribute Softness Rich in protein Flavour Absorption Balanced source of vitamins, minerals and anti oxidants Low fat content Freshness Lower levels of cholesterol Texture

Benefit Easy to cook, chew and digest Enhances disease resistance Enhanced taste and palatability based on other ingredients of the dish Nutritious and healthy Easy digestibility More palatable, connotation with healthy food. Reduces risk of heart troubles, high blood pressure Easily sliced

Firmness

Can be picked up easily with forks, chopsticks

Sponginess (elasticity)

It can be made into a variety of product formsi

Storability in water

Increased shelf life

Step 2: Identifying various product forms of tofu 10

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Possible product forms in which tofu can be introduced 1. Cottage Cheese cake (paneer like cubes) 2. Cheese spread 3. Cheese slice (for bread, wheat based products like burgers, subs) Paneer is perceived to be a high end vegetarian dish. Tofu, by the virtue of similarity to paneer in certain characteristics and appearance, can substitute paneer in certain usage situations. Based on its product attributes and health and nutritional benefits, Mr Nilay proposed to introduce Tofu in the cottage cheese form (similar to paneer). Step 3: Developing product Concepts for tofu Product concepts for Tofu were generated using the attributes and benefits of Tofu as identified in Step 1. The identified product concepts are as follows: Table 2: Identified product concepts for tofu S.No Product Concepts for Tofu 1 A protein rich, low fat, healthy cottage cheese which can be used in preparation of special vegetarian dishes 2 A versatile product which can be a base for cooking other kinds of foods as it can absorb the flavors of accompanying ingredients 3. Soft, spongy and easy to digest healthy vegetarian product 4. Provides balanced diet for the young and old alike Step 4: Questionnaire Design A questionnaire was designed to get information on consumption patterns of paneer, test identified concepts of tofu and assess health consciousness orientation of consumers. .(See Exhibit 3). The questionnaire parameters measured are as follows: Table 3: Questionnaire design parameters S/No Concepts Scale/variable used 1 Consumption pattern of Interval, No. of times purchased Paneer 2 Attributes/Benefits of Ease of handling, ability to add flavour paneer to the preparation 3 Customer satisfaction Perception as a Dairy product from paneer 4 Concept testing of Tofu trials and consideration set for tofu/soya alternative products 5 Health consciousness of A healthy food with taste and balanced consumer quantities of essential nutrients 6 Knowledge of soya A healthy food with taste and balanced products (related to health quantities of essential nutrients consciousness)

Question Nos 1,2,3 4, 6, 9 7, 8 12,13, 16,17,18, 19 5, 9,10, 11 13, 14, 15

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Step 5: Pilot Test and field survey A pilot test was conducted and the questionnaire was modified based on inputs on consistency and better readability. (Refer exhibit 5 for sample modifications in questionnaire.) The structured questionnaire was administered personally and data collected and tabulated. Step 6: Data Analysis The analysis scheme adopted is given in Table 4 was adopted. (See Exhibit 4 for the code book.) Table 4: Summary of Data Analysis Plan: Purpose

Assessing the attributes, consumption patterns of paneer

(Variable) Information

Scale

Analysis Planned Multivariate Bivariat e

Satisfaction levels with paneer (Question 1, 7,8) Frequency of use of paneer (Question 2)

Ordinal

Simple and cumulative frequency distribution

Interval

Attributes of paneer (Question 6,9)

Interval

Quantity of paneer purchased (Question 3)

Interval

a) Simple and cumulative frequency distribution b) Find medium rank c) Assign overall rank d) Simple and cumulative frequency distribution e) Find medium rank f) Assign overall rank a) Simple and cumulative frequency distribution b) Find medium rank 12

UniSummary variate

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Assessing opportunity for tofu (soypaneer)

Assessing health consciousness of consumers

Attributes of paneer (Question 4)

Ordinal

Preference towards tofu as opposed to paneer (Question 16, 19) Concept testing (Question 18)

Ordinal

Attributes of tofu (Question 17)

Interval

Attributes of tofu (Question 16)

Ordinal

-

-

-

Attributes of soya (Question 12,13,14,15)

Ordinal

-

-

-

Health consciousness (Question 5, 9, 10, 11)

Ordinal

-

-

-

-

-

-

Interval

c) Assign overall rank Simple and cumulative frequency distribution Simple and cumulative frequency distribution a) Simple and cumulative frequency distribution b) Find medium rank c) Assign overall rank a) Simple and cumulative frequency distribution b) Find medium rank c) Assign overall rank Simple and cumulative frequency distribution Simple and cumulative frequency distribution Simple and cumulative frequency distribution

**NR - No Response Observations and Insights from field Survey The basic survey revealed distinct consumer preferences with respect to the product attributes of Paneer vis-à-vis Tofu (Soya Paneer). Paneer is the most preferred vegetarian dish for special occasions like festivals, parties and for treating guests at home especially 13

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in Northern India. It is also the most preferred vegetarian dish to order at restaurants. Although disliked by a few people who generally do not prefer milk products, Paneer occupies a special place in North Indian cuisine due to various aspects of consumer perception which were revealed in the survey are as follows: 1. Paneer is the preferred choice for special vegetarian preparations because it is richness in taste when prepared separately or in combination with other ingredients. 2. Paneer is considered costly, so it is a better choice for treating somebody special 3. Milk products are generally regarded as healthy, therefore paneer is healthy. 4. Paneer is soft and has a distinct taste although not very discernable and strong. 5. Paneer does not have a necessarily have a distinct taste of its own but absorbs the flavor of the other culinary ingredients. 6. Although Paneer contains high quantities of fat, if consumed once in a while it would not have ill-effects on health. 7. Paneer could be prepared at home by coagulating milk. But this is not very tasty and sometimes may turn bitter. 8. Paneer is a good substitute for non vegetarian specialties like meat. These observations corroborate the fact that paneer is a preferred vegetarian dish of choice for an average Indian. The responses to the questions on health consciousness revealed that it was not an important attribute while consuming paneer as it is not prepared regularly at homes. Majority of the respondents also felt that taste and health can go together and easy digestibility is more important than calorie or fat content. Most of the respondents were aware about Tofu and that it is easily available at grocery stores, although they were not sure that it is a soya product. They also acknowledged that it is a substitute for paneer and consumed only by highly health conscious people. The following are the consumer perceptions regarding Tofu in particular and soya products in general as revealed by the questionnaire pre-test. 1. Most consumers preferred green vegetables for special dishes as an alternative to paneer and did not consider soya products. They felt that these products (Mealmaker, Soya Chunks) are not natural products and are not very tasty.

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2. The respondents agreed that soya products are healthy and were easy to prepare. With respect to Tofu as a healthy alternative for paneer, the majority were not sure of its benefits. 3. Specific responses to the opinion on Tofu ranged from “it tastes yuck” to “I can’t differentiate between Tofu and Paneer. 4. Tofu does not seem to suit the Indian Palate. 5. The ranking of different attributes of Soya paneer revealed that, health benefits were not on the priority list of the consumer when compared to its versatility and flavor absorption. 6. The respondents were unanimous in their perception that Tofu becomes harder and has a rubbery texture when fried compared to Paneer. 7. The integrating ability of Tofu as a healthy ingredient into any of the cuisines and the variety it offers was not in common knowledge of any of the respondents. 8. The respondents were not aware of the fact that Tofu has a higher shelf life and storability than paneer. This was also not felt as an important attribute as they mentioned that they consumed paneer fresh and did not store it for long. 9. The taste of tofu does not suit the Indian palette

Based on the basic survey of the questionnaire he drew certain inferences from the four concepts tested. 1. As paneer is prepared only on certain special occasions in average households, health benefits of paneer are not major criteria for differentiation of product like Tofu for the general mass market. 2. Tofu as a substitute for paneer lags way behind as compared to its availability and consumer preference to milk products. 3. Although nutritious and much healthier than paneer the loyalty to paneer is bound by tradition and Tofu itself is considered as a foreign product. 4. As Tofu is cheaper than paneer, it is considered an inferior substitute with a rubbery texture.

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16Product Management Minor Project - Term IV

5. The positive health benefits of Tofu were not in the consideration set of the majority of respondents of the pre-test as they lacked general information about this product and the variety of forms in which it could be available. 6. Further as there are specific recipes for making tastier Tofu based cuisine, even the preliminary Tofu trials by consumers might end up in unfavorable experiences. 7. The pre-test also identified that Tofu is considered a fad and a new trend in up market restaurants and health conscious upwardly mobile young people. The findings of field survey and concept testing are as follows: 1. A majority of the consumers perceived tofu to have a bitter taste. This was a departure from the bland taste initially recognized as an attribute. 2. Projecting tofu as a health food in the speciality dish segment did not go down well with consumers. The results indicated that the consumers would prefer to exercise rather than have a health food like tofu in special dishes. Hence tofu has to compete with paneer on non health related benefits in preparation of special dishes (occasional consumption). The health benefits could be projected for normal diet, regular consumption. The other significant findings based on analysis of data is as follows: 1. Consumers who prefer paneer dishes are heavy user as their frequency of purchasing paneer products is very high. The frequency of use in terms of dish prepared is high for stuffed and fried vegetables which is very less as compared to paneer users. Also their frequency of purchase is once fortnightly. 2. The cross tabulation results of dish prepared v/s taste, Convenience and health gives highly significant results. People prefer to consume dishes which are high on taste. Also the relation between health and dish prepared is very significant though very negative. This means that people who consume paneer dishes are skeptical about the usage of paneer vis-à-vis the health problems associated with paneer. This is also corroborated by correlation table (Exhibit 1).It can thus be safely assumed that to shift the customers from paneer to tofu on the taste parameter would be very difficult. Thus a better strategy would be to try and shift the customers on the other parameters i.e health and convenience. 3.From factor analysis (Exhibit 2) it is clear that people consider both the parameters i.e: Product Attributes and Health Association. The primary problem associated with launching the product right now is that the product cannot be launched just on health dimension. There is ease in handling with paneer products too plus an added dimension of taste which is considered to be the basic parameter which is considered by customers when they 16

17Product Management Minor Project - Term IV

purchase Paneer products. Since Tofu as a product would act as a substitute to paneer we need to identify what is the trade off that the customer is willing to agree upon if he intends to substitute paneer with Tofu. This trade off has to be measured between taste and health.

Mr Nilay was wondering whether to advice ASA to launch the product while positioning it as a paneer substitute on the health attribute or go for further market research Exhibit 1

Correlation analysis of product attributes of paneer

Att1_Taste

Att2_Ease

Att3_Tradn

Att4_Percep n

Att5_Handlin g

Pearson Correlatio n Sig. (2tailed) N Pearson Correlatio n Sig. (2tailed) N Pearson Correlatio n Sig. (2tailed) N Pearson Correlatio n Sig. (2tailed) N Pearson Correlatio n Sig. (2tailed)

Att1_Tast e

Att2_Eas e

Att3_Trad n

Att4_Percep n

Att5_Handlin g

1

0.208

-0.008

0.035

0.249

0.105

0.950

0.788

0.051

62

62

62

62

62

0.208

1

.406(**)

0.161

.477(**)

0.001

0.212

0.000

0.105 62

62

62

62

62

-0.008

.406(**)

1

.289(*)

.356(**)

0.950

0.001

0.023

0.005

62

62

62

62

62

0.035

0.161

.289(*)

1

0.138

0.788

0.212

0.023

62

62

62

62

62

0.249

.477(**)

.356(**)

0.138

1

0.051

0.000

0.005

0.286

0.286

17

18Product Management Minor Project - Term IV

N 62 62 **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).

62

62

62

. Exhibit 2: Factor Analysis of attributes of Tofu relevant to customers: Rotated Component Matrix(a)

Easy to chew and digest Enhances disease resistance Reduces risk of heart troubles, high blood pressure Variety of product forms Can be stored for a long time Provides a balanced diet of proteins, minerals Flavour absorption

Component 1 2 .364 -.731 .679

.552

.807

-.063

.198

-.868

.192

-.790

.827

-.225

.378

-.759

18

19Product Management Minor Project - Term IV

19

20Product Management Minor Project - Term IV

20

i

EXHIBIT 3: Survey Questionnaire:

1. On an important occasion which of these special vegetarian dishes are you most likely to prepare/consume? a) Paneer based dishes b) Stuffed and fried vegetables c) Nuts and dry fruits Curry

2. How often do you consume Paneer? a. weekly b. Fortnightly c. Monthly d. Bimonthly e. Never

3. How much quantity paneer do you buy in a single purchase for an average household consumption? a. 50g b. 100g c.250g d. 500g e. > 500g

4. According to you which is the best quality paneer? a) White, soft with slightly salty taste and freshly made b) White, soft , tasteless ,refrigerated pack c) Yellow, slightly elastic, frozen d) Off-White, soft, little sour, refrigerated pack

5. Do you consider the nutritional and health benefits while preparing/consuming special vegetarian dishes? a. Yes b. No c. Maybe

6. Which of the following attributes do you think are important factors for choosing paneer? (Rank it on a scale of 1-5 1strongly agree 5Strongly disagree) a) Taste b) Ease of preparation c) Tradition d) Perception of dish being worthy of special occasions e) Softness f) Ease of handling (Slice-ability & use of fork/chop-sticks)

7. Why do you prefer consuming paneer? (Rank it on a scale of 1-5 1strongly agree 5Strongly disagree) a) Force of habit b) It is exactly the product I always wanted c) Gives a feel of high end vegetarian product d) There are no other products available which come close

8. If it was proved that consuming paneer had certain negative aspects, would you still consume paneer? a. Yes b. No c. Maybe 9. In your view, what could be possible negative aspects of consuming paneer regularly? (Rank it on a scale of 1-5 1strongly agree 5Strongly disagree)

a) Potential to cause obesity due to high fat content b) Difficult to digest c) Does not mix well with other ingredients d) Potential to cause heart troubles because of higher cholesterol levels

10. According to you, which of these attributes would constitute a healthy mix for the preparation of a special vegetarian dish? (Rank it on a scale of 1-5 1strongly agree 5Strongly disagree) a. Low fat and Calorie rich b. High Protein c. Rich in Minerals and vitamins d. Easy digestibility

11. Do you think healthy food and taste can go together? a. Yes b. No c. Maybe

12. What other healthy alternatives would you consider for preparation of special vegetarian dishes? a) Soya based dishes b) Green Vegetables c) Salads d) Caviars 13. Have you used soya products before? a. Yes b. No c. Maybe

14. In what forms have you consumed soya products before? a) Soy Milk b) Soya chunks c) Soya Sauce d) Soya Paneer

15. Do Soya products provide health benefits? a. Yes b. No c. Maybe

16. Soya paneer (tofu) is made from soya milk and is a form of cottage cheese like paneer. Based on your knowledge of soya products and paneer, in what ways do you think tofu can be different from normal paneer? Rank it on a scale of 1-5 a) It is low in fat and rich in protein b) It is easier to cook c) It is a healthier alternative to paneer d) There is not much difference

17. Based on our survey of housewives who have used soya paneer (tofu), it has been observed that it has certain features. Could you indicate how important are these features to you? (Rank these benefits on a scale of 1 to 5) a) Easy to chew and digest b) Enhances disease resistance c) Flavour absorption d) Reduces risk of heart troubles, high blood pressure e) It can be made into a variety of product forms

f) Can be stored for a long time g) Provides a balanced diet of proteins, minerals

18. Which of these concepts/products are you more likely to buy in a store? (Show concepts and ask them to rank it on a scale of 1 to 5)

19. Based on the concepts shown what is your opinion of this product as compared to paneer? a) Better than paneer b) Exactly the same c) Somewhat similar d) Worse than paneer

20. Demographic profile of respondent Name Age Educational Qualification Monthly Income

Exhibit 4 : Code Book for the Survey

Variable NumberQ. No.DescriptionRange of code valuesScale TypeCodes11Vegetarian dish most likely to be prepared on special occasions : Paneer mixed with vegetables1-2Nominal1: Yes 2: No21: Stuffed and fried vegetables1-2Nominal1: Yes 2: No31: Nuts and dry fruits curry1-2Nominal1: Yes 2: No42Often do you consume paneer : weekly1-2Nominal1: Yes 2: No52: fortnightly1-2Nominal1: Yes

2: No62: monthly1-2Nominal1: Yes 2: No72: bi-monthly1-2Nominal1: Yes 2: No82: never1-2Nominal1: Yes 2: No93Quantity paneer do you buy in a single purchase for an average household consumption : 50gm1-2Nominal1: Yes 2: No103: 100 gm1-2Nominal1: Yes 2: No113: 200 gm1-2Nominal1: Yes 2: No123: 500 gm1-2Nominal1: Yes 2: No134The best quality paneer

: White, soft with slightly salty taste and freshly made 1-2Nominal1: Yes 2: No144: White, soft , tasteless ,refrigerated pack1-2Nominal1: Yes 2: No154: Yellow, slightly elastic, frozen1-2Nominal1: Yes 2: No164: Off-White ,soft, little sour, refrigerated pack1-2Nominal1: Yes 2: No175nutritional and health benefits while preparing/consuming special vegetarian dishes12Nominal1: Yes 2: No186Important factors for choosing paneer (Rank parameters on a scale of 1 to 10): :Taste110IntervalBipolar 10 point scale for each attribute 11: NR** 1: Not at all important 10: Very important196: Ease of preparation206: Tradition216: Perception of dish being worthy of special occasions226: Softness236: Easy handling247Preference of consuming paneer : Force of habit1-4Ordinal1: Exactly what I want 2: Gives a fell of high end veg product 3: Force of habit 4: No other products available257: It is exactly the product I always wanted267: Gives a feel of high end vegetarian product277: There are no other products available which come close288consuming paneer with certain negative aspects1-2Nominal1: Yes 2: No299possible negative aspects of consuming paneer regularly

: Potential to cause obesity due to high fat content1-5Ordinal1: First Rank 2: Second Rank 3: Third Rank 4: Fourth Rank 5 : Fifth Rank309: Difficult to digest319: Does not mix well with other ingredients329: Potential to cause heart troubles because of higher cholesterol levels339: There are no negative aspects

3410 attributes that constitute a healthy mix for the preparation of a special vegetarian dish : Low fat and low calorie1-4Ordinal1: First Rank 2: Second Rank 3: Third Rank 4: Fourth Rank3510: high protein3610: Rich in Minerals and vitamins3710: Easy digestibility3811healthy food and taste can go together1-2Nominal1: Yes 2: No3912healthy alternatives for preparation of special vegetarian dishes

: Soya based dishes1-2Nominal1: Yes 2: No4012: Green vegetables1-2Nominal1: Yes 2: No4112: Salads1-2Nominal1: Yes 2: No4212: Caviar1-2Nominal1: Yes 2: No4313used soya products in the past1-2Nominal1: Yes 2: No4414forms of consumption of soya products : Soy Milk1-2Nominal1: Yes 2: No4514: Soya Chunks1-2Nominal1: Yes 2: No4614: Soy Sauce1-2Nominal1: Yes 2: No4714: Soy Paneer1-2Nominal1: Yes 2: No4815Soya products provide health benefits1-2Nominal1: Yes 2: No4916Difference of tofu from normal paneer : It is low in fat and rich in protein1-4Ordinal1: First Rank 2: Second Rank

3: Third Rank 4: Fourth Rank5016: It is easier to cook5116: It is a healthier alternative to paneer5216: There is not much difference5317Importance of the following features of paneer : Easy to chew and digest1-11IntervalBipolar 10 point scale for each attribute 11: NR** 1: Not at all important 10: Extremely important5417: Enhances disease resistance5517: Flavour absorption5617: Reduces risk of heart troubles, high blood pressure5717: It can be made into a variety of product forms5817: Can be stored for a long time5917: Provides a balanced diet of proteins, minerals6018Intention to buy P1110Ordinal/Interval1: Definitely not buy 10: Definitely would buy6118Intention to buy P21-10Ordinal/Interval1: Definitely not buy 10: Definitely would buy6218Intention to buy P31-10Ordinal/Interval1: Definitely not buy 10: Definitely would buy6318Intention to buy P41-10Ordinal/Interval1: Definitely not buy 10: Definitely would buy6419Opinion about P1 as compared to paneer1-4Ordinal/Interval1: Worse than paneer 2: Somewhat similar 3: Exactly the same 4: Better than paneer6519Opinion about P2 as compared to paneer1-4Ordinal/Interval1: Worse than paneer 2: Somewhat similar 3: Exactly the same 4: Better than paneer6619Opinion about P3 as compared to paneer1-4Ordinal/Interval1: Worse than paneer 2: Somewhat similar 3: Exactly the same 4: Better than paneer6719Opinion about P4 as compared to paneer1-4Ordinal/Interval1: Worse than paneer 2: Somewhat similar 3: Exactly the same 4: Better than paneer **NR - No Response

Exhibit 5 : Sample Modifications based on Pre Test 1.

Description of the question before Pre Test

How much quantity paneer do you buy in a single purchase for an average household consumption? a) 100g b) 200g c) 500g d) > 500g

During the Pre Test, it was pointed out that the it is highly unlikely that consumers would be purchasing > 500 gm at a time. Also, some of the reviewers indicated that consumers who consumer lower quantities may purchase less than 100 gm. Hence we changed the options for the purchase quantity.

Description of the question after Pre Test

How much quantity paneer do you buy in a single purchase for an average household consumption? a) 50g b) 100g c) 200g d) 500g

2.

Description of the question before Pre Test

Based on our survey of housewives, most of them indicated that paneer was the choice of preparation for speciality vegetarian dishes. Which of the following attributes do you think are important factors for choosing paneer? (Rank parameters on a scale of 1 to 10) a) Taste b) Ease of preparation c) Tradition d) Perception of dish being worthy of special occasions e) Softness f) Ease of handling

The reviewer pointed out that more clarity was needed with regard to the ease of handling option. The intent was to show the ease of handling with regard to slice-ability and use of fork/chop sticks to hold it. Accordingly the question was modified Description of the question after Pre Test

Based on our survey of housewives, most of them indicated that paneer was the choice of preparation for speciality vegetarian dishes. Which of the following attributes do you think are important factors for choosing paneer? (Rank parameters on a scale of 1 to 10) a) Taste b) Ease of preparation c) Tradition d) Perception of dish being worthy of special occasions e) Softness f) Ease of handling (Slice-ability & use of fork/chop-sticks)

3.

Description of the question before Pre Test

In what ways do you think tofu can be different from normal paneer? a) It is low in fat and rich in protein b) It is easier to cook c) It is a healthier alternative to paneer d) There is not much difference

In this question, the reviewer was not very sure with regard to what exactly tofu was and hence wanted some description of tofu. Accordingly the question was modified to provide a brief description of tofu.

Description of the question after Pre Test

Soya paneer (tofu) is made from soya milk and is a form of cottage cheese like paneer. Based on your knowledge of soya products and paneer, in what ways do you think tofu can be different from normal paneer? a) It is low in fat and rich in protein b) It is easier to cook c) It is a healthier alternative to paneer d) There is not much difference

Exhibit 6 : Research Matrix for Decision Problem

Decision ProblemResearch ProblemInformation needsSources of InformationResearch MethodologyWhether to introduce a new tofu product in the marketTo identify attributes which customers are looking forAttributes/Benefits of paneerConsumers, Secondary sourcesSurvey, AnalysisCustomer satisfaction for paneerConsumersSurveyHealth consciousness of ConsumersConsumersSurveyConsumption pattern of paneerConsumers, Secondary sourcesSurvey, AnalysisConsumption patterns

of tofuConsumersFocus GroupsImports of tofuIndustry reportsAnalysisDetermine the positioning of this tofu productIdentification of the product concept that appeals the most to consumersConcept testing of tofuConsumersSurveyHow much tofu should be made available for sale in IndiaEstimate of the demand of the product, if positioned based on concept testing resultsTotal Market for dairy productsIndustry reportsAnalysisMarket Share of different dairy productsIndustry reportsAnalysisSales of paneer brand wiseIndustry reports, RetailersAnalysis, SurveyTotal soya productionIndustry reportsAnalysis References 1. “Soymeal Futures: Feasibility Study” MCX India Retrieved from http://www.mcxindia.com/ on 8th March 2007 2. “Indian Dairy Sector”, report from source http://site.securities.com/doc.html?

pc=IN&doc_id=14657400 Publication: India Infoline Sector Reports Provider: India Infoline.com Ltd. Date: March 19, 1999 3. “What the heck is tofu anyway? “, article retrieved from

http://www.veg-world.com/articles/tofu.htm on 8th March 2007 4. Report R on Agri Commodities by Cygnus Business Consulting and Research, April 2006, Vol 604. 5. Mahadevan M AP, “Dairy Development In India “, October 1994

http://nutritionfoundationofindia.res.in/archives.asp?archiveid=157&back=bydate.asp 6. Article “The Health Benefits of Soy Protein” in Health Benefits Summary from The Solae Company Retrieved from http://www.solae.com/company/mediaroom/pdf/Health%20Benefits %20tab/Health%20Benefits%20of%20Soy%20LR.pdf 7. “Tofu”, Article retrieved from http://en.wikipedia.org/wiki/Tofu 8. “White Meat Soy foods”, Retrieved from

http://www.walford.com/soyfood.htm#SOYBEANS#SOYBEANS 9.

“IPL (A), (B)” cases from Marketing –II Casemat, IIM Ahmedabad

10. “Chemical Products Limited (A)”, Case from Marketing –II Casemat, IIM Ahmedabad