Consumer Behavior Towards Patanjali Ayurved
Consumer Behavior Towards Patanjali Ayurved
1
DECLARATION
I hereby declare that this research project report “CONSUMER BUYING BEHAVIOUR
TOWARDS PATANJALI AYURVED’' my own work, to the best of my knowledge and belief.
It contains no material previously published or written by another person nor material which to a
substantial extent has been accepted for the award of any other degree or diploma of any other
institute, except where due acknowledgement has been made in the text.
2
ACKNOWLEDGEMENT
This satisfaction that accompanies the successful completion of any task would be incomplete
without mentioning the people who made it possible, whose constant guidance and
I would like to show my gratitude towards guide Dr. Manikant Dubey for guiding and making
me capable enough to work on this report. I thank him for his valuable advice, knowledge and
encouragement towards my endeavor in making this project successful along me with my faculty
members.
And last, gratitude towards the respondents for their valuable time and for providing valuable
information without which this report would have not been completed.
3
TABLE OF CONTENTS
Chapter- I Introduction
1. About The Topic and Company Profile 10-44
LIST OF TABLE
Sr. No Table Number Page Number
1.
Table 4.1 Age 58
4
2.
Table 4.2 Gender 59
3.
Table 4.3 Marital Status 60
4.
Table 4.4 Occupation 61
5.
Table 4.5 Monthly Income 62
6.
Table 4.6 Family Income 63
7.
Table 4.7 Desi Ghee 64
8.
Table 4.8 Body Soap 65
9.
Table 4.9 Honey 66
10.
Table 4.10 Tooth paste 67
11.
Table 4.11 Shampoo 68
12.
Table 4.12 Hair oil 69
13.
Table 4.13 Herbal product 70
14.
Table 4.14 Company 71
16.
Table 4.16 Satisfaction 73
18.
Table 4.18 Availability 75
5
19.
Table 4.19 Competition 76
20.
Table 4.20 Comparison 77
21.
Table 4.21 Switching over 78
22.
Table 4.22 Reason to switch over: 79
23.
Table 4.23 Influenced 80
24.
Table 4.24 Role of advertisement 81
25.
Table 4.25 Purchases 82
26.
Table 4.26 Last purchases 83
27.
Table 4.27 Advertisement influenced 84
6
CHAPTER - I
INTRODUCTION
EXECUTIVE SUMMARY
Patanjali Ayurved produces products in the categories of personal care and food. The company
manufactures 444 products including 45 types of cosmetic products and 30 types of food
7
products. According to Patanjali, all the products manufactured by Patanjali are made from
Ayurveda and natural components. Patanjali products are cheaper than alternatives in the market
due to lesser production and marketing costs. Patanajali has also launched beauty and baby
products. Patanjali Ayurvedic manufacturing division has over 300 medicines for treating a range
In the first chapter report talks about the company Patanjali Ayurved, also information about
consumer buying behaviour and the herbal industry has been given. Details of Patanjali Ayurved
revenue and expenses have been given. Also information about the future of herbal industry in
In the second chapter various research papers have been reviewed. It includes notable papers of
Neha Tyagi and Sagar Malviya, kanika, Ali and Chaudhary. The papers include information
In the third chapter information about the research methodology undertaken for this project has
been given. The project is based on primary data, hence is descriptive in nature. The
questionnaire have been prepared for collecting the required information and survey of 50
people was done to collect necessary data for analysis and interpretation. The study conducted is
about the different factors influencing the buying behavior of consumers towards Patanjali
Ayurved.
In the fourth chapter the data which was collected through questionnaire and from the data
interpretation it can be analyzed that the consumers are attracted towards Patanjali Ayurved they
will only switch over to the other product if provided with a better price, quality, quantity and
discounts. The consumers were influenced by their family members, friends, advertisement and
by themselves. Even the advertisement played an important role for brand preference so that the
8
consumers could better recall and have the positive impression for the products of Patanjali
Ayurved.
In the last chapter the research findings, scope of the study and the conclusion is given.
Patanjali
9
Parent Company PatanjaliAyurved Limited
Sector FMCG
STP
Target Group Middle and upper middle class families who prefer ayurvedic products
Positioning Patanjali offers healthier and safer products in the FMCG category
SWOT Analysis
10
1. Prominent FMCG players coming up with their own variants of
ayurvedic products
2. Big players have their existing model which is sturdy, which can
Threats overcome new competition from Patanjali
Competition
1. Dabur India
2. Procter and Gamble
3. Marico
4. Nestle Ltd
5. HUL (Hindustan Unilever Limited)
Competitors 6. Himalaya Herbal Healthcare
11
Comparative Study of Patanjali High Grossing Prioducts
With HUL
12
PatanjaliAyurvedic Limited is one of the fastest growing Indian FMCG company
which was established in 2006 by Baba Ramdev along with AcharyaBalkrishna. Its
manufacturing unit and headquarters are located in industrial area of Haridwar and
the registered office is located in Delhi.
According to India infoline finance Ltd. IIFL, AcharyaBalkrishna accounts for 94%
of the share and the remaining stake are owned by Sarwan and SunitaPoddar, an
NRI couple. However, Baba Ramdev does not own any stakes but plays an
important role in the brand gaining visibility by marketing Patanjali’s product in his
yoga camps.
13
Patanjali is leading over its competitors due to following reasons-
14
Competitor’s innovative products to survive in Competitive Market
Since Patanjali has come up with many of the new products so consumer
companies have also improvised in innovation in the ayurvedic as well as herbal
products.
15
16
CONSUMER BUYING BEHAVIOR - Introduction
The job of marketer is to meet and satisfy target customers’ needs and wants but “knowing
customer" is not a simple task. Understanding the buying behavior of the target market for its
company products is the essential task for the marketing dep’t. The job of the marketers is to
“think customer” and to guide the company into developing offers, which are meaningful and
attractive to target customers and creating solutions that deliver satisfaction to the customers,
Marketers must study the customer taste, preferences, wants, shopping and buying behavior
because such study provides the clues for developing the new products, price, product changes,
In understand the concept of buying we have the some of the key questions. They
are: -
17
How does the market buying? Operations
Along with that there are two more questions that are also related with above. They
are: -
18
WAYS OF BUYING BEHAVIOUR
According to the concept of marketing the buying behavior can be divided in two ways:-
1. Consumer Behavior: - It includes that user who buys the product for the direct
consumption, not to use for further sale purpose. Like as home users.
2. Business Behavior: - It includes those users who buy the product for the further sale
19
BUYING ROLES IN BUYING BEHAVIOR
In the buying behavior there are different roles played in each of consumer and business. Those
20
BUSINESS BUYING ROLES
There are various factors that affect the buying behavior on both consumer as
21
FACTOR AFFECTING CONSUMER BUYING BEHAVIOR
Cultural Factors
Culture Personal factors
Age Social Factors
References Group Psychological
Occupation
Motivation
Sub Culture
Life Styles
Family
Personality
Perception BUYER
Social Class
Environmental
Economic Organizational
Objective Inter – Personal
Political Authority Individual
Policies Age
Cost of Money Status
Procedures Education BUSINESS
Competition
22
Empathy
Structure Income BUYER
Technological
So, these are the factors that affect the consumer as well as business buying
behavior
Consumer behavior can be broadly classified as the decisions and actions that influence the
purchasing behavior of a consumer. What drives consumers to choose a particular product with
respect to others is a question which is often analyzed and studied by marketers. Most of the
The study of consumer behavior not only helps to understand the past but even predict the future.
The below underlined factors pertaining to the tendencies, attitude and priorities of people must
be given due importance to have a fairly good understanding of the purchasing patterns of
consumers
23
5. Marketing Campaigns
Advertisement plays a greater role in influencing the purchasing decisions made by consumers.
They are even known to bring about a great shift in market shares of competitive industries by
influencing the purchasing decisions of consumers. The Marketing campaigns done on regular
basis can influence the consumer purchasing decision to such an extent that they may opt for one
undertaken at regular intervals even help to remind consumers to shop for not so exciting
4. Economic Conditions
Consumer spending decisions are known to be greatly influenced by the economic situation
prevailing in the market. This holds true especially for purchases made of vehicles, houses and
other household appliances. A positive economic environment is known to make consumers more
confident and willing to indulge in purchases irrespective of their personal financial liabilities.
3. Personal Preferences
At the personal level, consumer behavior is influenced by various shades of likes, dislikes,
priorities, morals and values. In certain dynamic industries such as fashion, food and personal
care, the personal view and opinion of the consumer pertaining to style and fun can become the
dominant influencing factor. Though advertisement can help in influencing these factors to some
24
extent, the personal consumer likes and dislikes exert greater influence on the end purchase made
by a consumer.
2. Group Influence
Group influence is also seen to affect the decisions made by a consumer. The primary influential
group consisting of family members, classmates, immediate relatives and the secondary
influential group consisting of neighbors and acquaintances are seen have greater influence on the
purchasing decisions of a consumer. Say for instance, the mass liking for fast food over home
cooked food or the craze for the SUV’s against small utility vehicle are glaring examples of the
same.
1. Purchasing Power
Purchasing power of a consumer plays an important role in influencing the consumer behavior.
The consumers generally analyze their purchasing capacity before making a decision to buy and
products or services. The product may be excellent, but if it fails to meet the buyers purchasing
ability, it will have high impact on it its sales. Segmenting consumers based on their buying
capacity would help in determining eligible consumers to achieve better results.
Creates desire. Its human nature: when something looks appealing and we think
it will somehow enhance our life, we want it.
Becomes synonymous with status and prestige. This is one of the reasons
many savvy small-business owners review many logo designs before settling on
“the perfect” one. They know that the picture alone holds the promise of
communicating values that thousands of written words could only hope to convey.
25
Of course, status and prestige convey more than a high price; they signify quality,
too.
Validates self-esteem. It may also help forge a lacking one. Either way, Brand
Anew notes that “every individual has a certain image about himself or herself in
their mind. When they purchase something, they would like those items to conform
to their self-concept.”
Creates a sense of belonging. Before the dawning of the era of content
marketing, it was rare to hear marketers talk about consumers wanting to “bond”
with a company by understanding its culture and products and what goes on behind
the scenes. Now they talk about little else. At their best, brands are inclusive
26
1.2-INDUSTRY PROFILE
Herbal Industry
The Indian herbal market is rising sharply and is expected to hit Rs 14,500-crore mark
with exports reaching Rs 9,000 crore by the year 2012.
The herbal market has an annual compounded growth rate of 20 and 25 per cent,
respectively. India is followed by China as the largest producer of medicinal plants
having more than 40 per cent global diversity, Ayushkati Ayurveda’s promoter Pankaj
Naram said in a statement here.
The World Health Organisation (WHO) has projected that the global herbal market
will grow to $5 trillion by 2050.
According to the study on ‘Herbal Industry Biz Potential’, currently, the Indian herbal
market is worth Rs 7,000 crore ($1.7 billion) and India exports herbal raw materials
and medicines worth over Rs 3,600 crore ($902 million).
OTC (over the counter) products constitute 20 per cent of the $165-billion health care
industry in the US, in India, it constitutes only 5 per cent of the Rs 19,000 crore health
care industry.
27
1.3-COMPANY PROFILE
Patanjali Ayurved
Patanjali Ayurved Limited in 2006 along with Baba Ramdev with the objective of
establishing science of Ayurveda in accordance and coordinating with the latest technology
The company is not merely an organization but a thought of creating a healthy society
through Yog and Ayurved.
We value our consumers and we believe by providing quality products a quality life for them
can be created. This is our primary apprehension and thus, we try to take every measure to
ensure quality like the Unique ID system to stop fake products.
We recognize farmers as our main assets. They provide herbal and organic products on
contract farming. The company takes various initiatives for farmers to raise their income and
provide surety towards sale of their produce.
28
VISION
Keeping Nationalism, Ayurved and Yog as our pillars, we are committed to create a healthier society and
country. To raise the pride and glory of the world, we are geared up to serve people by bringing the blessings of
nature into their lives. With sheer dedication, scientific approach, astute planning and realism, we are poised to
write a new success story for the world.
MISSION
Making India an ideal place for the growth and development of Ayurveda and a prototype for the rest of the
world.
Revenues
Patanjali as a brand currently has more than 350 products from Soap to Toothpaste and from
Oats to Health drinks. The 2014-2015 revenue of Patanjali Ayurveda crosses Rs. 2000 crore
figures. In January 2016, IIFL said “Patanjali Ayurveda Ltd has, in a short span of less than a
decade, recorded a turnover higher than what several companies have managed to achieve
over several decades. There is no doubt that Patanjali is a disruptive force in the FMCG space
and is a credible threat for the incumbents.” The industrial data indicates that the brand has a
29
It Is Valued at ₹13000 crore (US$1.9 billion) and some predict revenues
of ₹5000 crore (US$740 million) for the fiscal 2016–17
30
Production
Patanjali Food and Herbal Park at Haridwar is the main production facility operated by
Patanjali Ayurved.
In 2016, the Patanjali Food and Herbal Park was given a full-time security cover of 35 armed
Central Industrial Security Force (CISF) commandos. The park will be the eighth private
institute in India to be guarded by CISF paramilitary forces. Baba Ramdev is himself a "Z"
Products
32
Patanjali Ayurved produces products in the categories of personal care and food. The
company manufactures 444 products including 45 types of cosmetic products and 30 types of
food products. According to Patanjali, all the products manufactured by Patanjali are made
from Ayurveda and natural components. Patanjali products are cheaper than alternatives in
the market due to lesser production and marketing costs. Patanajali has also launched beauty
and baby products. Patanjali Ayurvedic manufacturing division has over 300 medicines for
treating a range of ailments and body conditions, from common cold to chronic paralysis.
Patanajali launched instant noodles on 15 November 2015. Food Safety and Standards
Authority of India slapped a notice on the company as neither Patanjali nor Aayush, which
are the two brand names under which Patanjali got licenses, have got any approval for
33
34
Sales and distribution
Patanjali Ayurved sells through nearly 4000 retail outlets as of 2015. Patanjali
also sells its products online and is planning to open outlets at railway stations
and airports. Patanjali Ayurveda has tied up with Pittie Group and Kishore
Biyani's Future Group on 9 October 2015. As per the tie-up with Future Group,
all the consumer products of Patanjali will be available for the direct sale in
Future Group outlets. Patanjali Ayurveda products are also available in modern
trade stores including Reliance retail, Hyper city and Star Bazaar apart from
35
Units of Patanjali Ayurved Limited:
1. Already 12 successful units running including units for Packaging material and
Containers e.g. flour mill, candy plant, herbal cosmetic and detergent plants,
5. Sale Outlets: Patanjali brand with national and international reach, more than
36
Patanjali Food & Herbal ParkFood & Herbal Park
The Mega Food Park (MFP) has been envisaged to help in creation of enabling
chain system. These Parks would provide state of the art infrastructure for food
fruits and vegetables. Besides making processing more economically viable and
help creating large employment opportunities particularly in the rural areas, this
is further aimed at reviving the agricultural sector by increasing the returns for
farmers.
Employment Generation:
1. Currently PAL employs more than 6000 laborers in its processing activities.
The Company started doing its business for the benefit of mankind for the last 4-5
years and we are very much excited to see responses of the people worldwide.
37
The following figures for the last three years of its working itself will tell the
products: -
The above data speaks the growth rate of the Company and popularity and faith of the
Public in PATANJALI AYURVED LIMITED. The Company has already launched its
products in the open market all over India on the demand and response of both the
rural and urban people. Today, the Company alone is making approx. 200 domestic
products of food items, Cosmetic Items and the Ayurvedic Medicines and many more
things to come.
(1) Belief of the consumers on the products‟ high quality in terms of ingredients as well as
health benefits.
(2) Products from Patanjali are available at around 15-30% cheaper costs than similar
products from peer companies.
Consumer Belief
The Indian FMCG market especially the food and beverages segment has recently been
flooded by adulterated goods which have severe detrimental effects on health of the
consumers. Patanjali Ayurved, led by Baba Ramdev has since its inception stressed upon the
pure and adulteration free nature of their products. [13] This has bought them consumers
38
looking for quality products with no detrimental effects on health. Further, the company’s
insistence on using good quality fresh ingredients is also getting them new buyers.
Cheaper Costs
Patanjali’s relatively newer production line has state of the art manufacturing and packaging
facilities which allow it to be highly competitive in terms of production costs. Further, it
works on low margin, high volume model and keeps advertisement costs to bare minimum.
The
products are thus available at a much cheaper costs as compared to its peers. A comparison of
prices of similar goods is given below.
Made in India, for India Baba Ramdev has continuously pitched Patanjali as a ‘swadeshi’
alternative to all the MNC products “which help source Indians‟ money abroad”. The pitch
has resonated well among many Indians who now prefer to buy Patanjali’s products rater than
other companies.
FUTURE STRATEGY
Patanjali Ayurved has grown strongly in the past decade. But to sustain its momentum, the
company would have to tick a few boxes:
o Rural Push: Rural market accounts for over 70% of India’s 1.21 billion
population but contributes only 9% in the FMCG Industry. Thus increasing
distribution and support infrastructure in rural areas is a key area where the it
needs to [Link] in Research and Development: FMCG brands would
need to focus on R&D and innovation as a means of growth. In this age of
extreme competition, companies that continue to do well would be the ones
that have a culture that promotes using customer insights to create either the
next generation of products or in some cases, new product categories. Thus
39
Patanjali would have to invest a lot of capital and effort into significant
research and development of newer product categories.
Product:
Patanjali Ayurved is an Indian FMCG company which started in 2006. Patanjali has a diverse
product offering in its marketing mix. The product range of Patanjali had more than 400 types
of FMCG goods like cosmetic products, food items, haircare, skincare, toothcare etc. The
company also has products which focus on baby segment, healthcare and beauty products for
men and women. Patanjali also produces medicines and as per its sources, all its products are
ayurvedic and free of harmful chemicals. Patanjali food product range includes biscuits,
noodles, cornflakes etc. Patanjali has 300+ medicines for treating many ailments and body
conditions, from common cold to paralysis. Textile, jeans, kurta, pyjama etc is also
something which the company is focused on. Hence, this gives an insight in the product mix
of Patanjali.
Price:
Patanjali Ayurved has entered in an extremely competitive segment in the Indian FMCG
industry. The main players in India in this category are the likes of HUL, P&G, Marico, ITC
etc. Patanjali has ventured into various segments and hence the pricing strategy in its
marketing mix is defined by the competition in that segment. Patanjali products are priced as
per competition so that it becomes easier for the customers to switch from their existing
brand and adopt their products. Patanjali noodles competes with Maggi, toothpaste competes
with Colgate, chywanprash competes with Dabur, cornflakes compete with Kelloggs and
hence forth. This clearly shows that Patanjali has replicated the already successful existing
40
FMCG model and is focused on giving a healthier and natural variant to its target audience.
Thus the prices of Patanjali products are driven by segment, geography and most importantly
competition pricing.
Place:
Patanjali has managed to reach a wide population in a short span of time. Patanjali has an
excellent distribution network as it has tied up with the likes of Future group, Reliance retail,
Hypercity etc. This has enabled the Patanjali brand to ensure that its products are widely
available across various cities and towns in India. Close to 5000 retailers are actively
promoting Patanjali products along with smaller grocery stores. With the increase in
ecommerce in the Indian segment, Patanjali is also effectively increasing its presence online.
This would enable customers to simply add the products to their carts and they can buy
Patanjali products via COD, online payment etc which would be delivered to their doorstep.
The brand has also been able to expand geographically outside India. Patanjali products are
widely available in countries like Nepal, Saudi Arabia, UAE, Middle East, Bangladesh,
SriLanka etc.
Promotion:
Patanjali has considered advertising for its products as a high priority for driving sales. The
promotion and branding in Patanjali marketing mix utilises all media channels like print, TV,
online ads, billboards etc. Patanjali's brand ambassador is yoga guru Ramdev Baba, who has
a staggering fan following, which enabled the brand to catapult in the big league within a
short span. The advertisements of Patanjali has been aggressive where they have showcased
the importance of using natural and ayurvedic ways of making products. Their
advertisements have also been under scrutiny as they have alleged that its competitors have
been using harmful products. Patanjali advertisements showcase their entire product range
41
targeting the audience who want a healthy lifestyle by using naturally curated products. The
massive advertising exercise by Patanjali has made it one of the fastest growing FMCG
companies in India, with annual revenues in excess of INR 5000 crores. Hence this gives an
42
COMPARISON OF PATANJALI HIGH GROSSING
PRODUCTS WITH COMPETITORS
Patanjali Ayurvedic Limited is one of the fastest growing Indian FMCG companies which
was established in 2006 by Baba Ramdev along with Acharya Balkrishna. Its manufacturing
unit and headquarters are located in industrial area of Haridwar and the registered office is
located in Delhi.
According to India infoline finance Ltd. IIFL, Acharya Balkrishna accounts for 94% of the
share and the remaining stake are owned by Sarwan and Sunita Poddar, an NRI couple.
However, Baba Ramdev does not own any stakes but plays an important role in the brand
gaining visibility by marketing Patanjali’s product in his yoga camps.
Some of the main products of Patanjali are Patanjali Moisturizer Cream, Patanjali Multani
Mitti Face Pack, Patanjali Aloe Vera Juice, Patanjali Yoga Sutra, Patanjali Coconut Hair
Wash, Patanjali Sheetal oil, Patanjali Sunscreen, Patanjali Aloe Vera apricot Face Scrub,
Patanjali Anti-wrinkle Cream, and Patanjali Drishti Eye drop.
Innovation
Patanjali being a major competitor, FMCG companies are expected to introduce
innovative Herbal and Ayurvedic products over the forecast period.
Pricing
Patanjali sells its product at a lower price to meet consumer demands. Patanjali is able
to sell its best quality product at a price which is 10% to 30% less than its competitors
who spend 12% to 18% on advertising and promotion.
Brand Marketing
Patanjali has given a tough competition to some of the FMCG majors in the area of
hair care, oral care and OTC products across its brand portfolio through impressive
brand marketing by Baba Ramdev.
43
free Chyawanprash, Power Vita, Seabuckthorn dietary supplement and powdered hair dye.
Other than the products related to lifestyle and health, the company has plans to touch every
consumer category.
Since Patanjali has come up with many of the new products so consumer companies have
Companies like Colgate launched Vedshakti toothpaste and L’Oreal introduced a new
product with the natural ingredient in hair care range under Garnier Ultra Blends.
Godrej Consumer launched neem mosquito oil, a crème hair color that has coconut oil
Hindustan Unilever (HUL) launched hair care products like Ayush antidandruff neem
shampoo, Ayush antidandruff neem conditioner, and skin care products like Ayush
saffron face cream and pain balms on e-commerce platforms under Ayush Therapy.
44
Rivals of Patanjali Ayurved
45
Recent advancements in Patanjali Ayurveda:
1. In April 2016, Private sector banks such as ICICI and HDFC started providing loans
that its day to day production will reach up to 2,000 at the end of the financial year
2017.
2. Many industries are showing their interest to sign a marketing deal with Patanjali
Ayurvedic Limited. This deal will add to the total fiscal revenue of the company.
3. Patanjali tied with Future group to increase their product penetration, in addition to
this, the company also started selling their products through an e-commerce website.
4. Patanjali lists around 30 pipeline products, which will directly show the positive
impact on the company fiscal results and it is expected that these products will come in
Ayurvedic Limited is the most promising, valuable brand witnessing an exponential growth
rate. In the fiscal year 2016, when competitors such as Hindustan Unilever, Dabur, ITC,
Colgate – Palmolive, and Procter & gamble were struggling to hold the double-digit growth
rate, Patanjali Ayurveda showed the annual growth of more than 100 percent in product
portfolios such as personal care, food and beverages, and Ayurvedic. In current market
scenario, Patanjali Ayurvedic Limited has totally changed the game rules. It is believed that
this Swadeshi pride in products will stay for long and will definitely make an impact in
competitor’s sale.
46
Patanjali in Online Sector
Patanjali, the who's who of Indian e-commerce industry — from Paytm founder Vijay
Shekhar Sharma to Flipkart CEO Kalyan Krishnamurthy — turned up to join him on stage.
Despite his staunch swadeshi stance, Ramdev decided to take the help of top e-commerce
firms, even the foreign ones, to make inroads into India's fast-growing online FMCG market.
While Patanjali claimed it raked in Rs 10 crore through online sales in December from its
own e-commerce platform Patanjali Ayurved, Ramdev estimated that online sales will
contribute 15 per cent to Patanjali's turnover in a few years. "Online mechanism aims to
provide convenient and efficient option along with extension of traditional retail market.
Top FMCG companies, including HUL, PepsiCo, Nestle and Mondelez have already put
Patanjali will now sell its products across online marketplaces including Amazon India,
Flipkart, Paytm, BigBasket, Shopclues, Grofers and online medicine sellers Netmed and
E-commerce as a sales channel for consumer packaged goods is growing fast and is projected
to grow faster.
With the associations with the e-commerce companies, Ramdev said Patanjali hopes to settle
at least 1 million orders every day. The company estimates online will account for around
15% of the company’s total revenue over the next few years.
47
Controversies
“substandard quality”. All medicines mentioned in the notice — six out of seven from
Patanjali — had failed the microbial tests used to detect bacteria, mold and other
toxins.
its Van Dhan Jan Dhan scheme to Patanjali. The government set up this scheme to
sell medicinal and herbal products, derived from the forests of Maharashtra, to the
production from the Van Dhan Jan Dhan scheme. Members of the opposition party
have stated that the forest products are a national asset, and plans to sell them to
Patanjali’s Amla juice had also been suspended by the armed forces’ Canteen Stores
Department (CSD) in April after it failed the quality test at a Public Health Laboratory
in Kolkata.[63]
48
1.4- OBJECTIVE OF THE STUDY
‘PATANJALI’ Products.
49
1.5-SCOPE
The study can be done on the consumption pattern of Ayurvedic/ herbal both in the
The study can be done on the basis of gender, age group, income of the consumers.
About the availability of the products and the price range of the products should be
Like the company has expanded its products from pharma to FMCG products it can
also expand to the other product lines like baby care, etc.
The research provided fruitful information about Patanjali product line users and
brand perception they have about Patanjali.
50
1.6-LIMITATION
1. The company is not spending on Research: can you imagine how much goes
some of the customers could have given biased answers depending upon various
factors
51
CHAPTER-2
LITERATURE REVIEW
52
Marketing through Spirituality: A Case of Patanjali
Yogpeeth
Marketing through spirituality has become a significant topic of discussion as it affects the
consumption behavior of people. Therefore, spiritual organizations are launching and selling
their own products for the customers to capture the market. Here, in this study, yoga and
pranayam are considered as the dimensions of spirituality and it is observed that people
generally rely on a spiritual guru for performing yoga and pranayam. Swami Ramdevji is the
most famous guru in teaching yoga and pranayam in India and he, through Patanjali
Yogpeeth, has launched several products not only based on ayurvedic medicines but also on
FMCG. Hence, this paper talks about marketing through spirituality through the case study
and success story of Patanjali Yogpeeth. The research uses a qualitative approach to collect
interviews. The study revealed that yoga and pranayam are very effective tools in marketing
Empirical Study
With more than six hundred thousand villages and more than 70% of the population, rural
India has become a massive consumer goods market. FMCG has emerged as a major product
merely extend their general marketing strategies to rural markets. Instead, they need to devise
rural specific strategies. In this process, they need to understand crucial issues relating to
rural consumer behavior and more specifically relating to different geographic regions of the
country. This paper focuses on understanding factors that affect the rural purchase of FMCG
53
in India. Empirical study was conducted in 8 districts of South India to identify the key
influencing variables. Factor analysis was used to form 24 key variables into five groups
significant variable in the trust factor. According to the study, rural consumers in India
54
Consumer Behavior
It is the study of when, why, how, and where people do or do not buy Product or business
understand the buyer decision making process, both individually and in groups. It studies
attempt to understand people's wants. It also tries to assess influences on the consumer from
Customer behaviour study is based on consumer buying behaviour, with the customer playing
the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset
for customer behaviour analysis as it has a keen interest in the re-discovery of the true
meaning of marketing through the re-affirmation of the importance of the customer or buyer.
55
Patanjali Ayurved injects new life into herbal market, helps rivals sell more
In a short span of time, Patanjali Ayurved has not only made a name for itself among Indian
consumers, but also fueled expansion of the herbal products market and helped rivals sell more
home and personal care products, grabbing share from MNCs. The Baba Ramdev-led
company's sales jumped 64 per cent to Rs 731 crore in the six months ended December and
rivals Dabur BSE -0.67 % and Himalaya grew in double digits in a consumer products market
that expanded barely 6 per cent. According to IMRB data. The figures exclude commodity
products such as ghee and atta. What's helping these firms is a growing preference for
Ayurvedic products known for natural ingredients and health benefits. In addition, herbal
products are cheaper. "Patanjali has registered a near-80 per cent growth in penetration, which
is about 5 percentage points on an absolute level, in one year," said K Ramakrishnan, general
The importance of packaging design as a vehicle for communication and branding is growing
in competitive markets for packaged FMCG products. This research utilized a focus group
methodology to understand consumer behavior toward such products. The challenge for
consumers search for and process information in-store, the product's package can contain
relevant and useful information for the consumer. Product packaging forms the end of the
'promotion-chain' and is close in time to the actual purchase and may therefore play an
important role in predicting consumer outcomes. Packages also deliver brand identification and
56
label information like usage instructions, contents, list of ingredients or raw materials,
assessment of the buyer in qualitative terms. This includes keeping a watch on the sources of
information from where the buyer gets the knowledge about the brands, their frequency of
purchase and the decision-making process of decision maker and satisfaction. A study of the
buyer from all these dimensions is of paramount importance for it would make open the
marketing implications and ramifications for the marketers. Basically it is the motivational
mechanism that the buyer has develops in his mind towards various sets of products that counts
a large. A deliberate consumer behavior study helps the marketers to come out with right
positioning strategies. It is to say that any effort to assess the market must include a keen and
close analysis of what the buyer is in the market. This study is about buying behaviour of
consumer in relation to OTC herbal products in India. Like in any other product, consumer
behaviour involves the psychological process that consumer go through in recognizing his
needs, finding ways to solve these needs, making purchase decisions (e.g., whether or not to
purchase a product and, if so, which brand and where), interpret information, make plans, and
product).
57
DEFINITIONS OF TERMS
The following definitions are the major terms investigated in the present study.
BRAND IMAGE
Rao and Monroe, (1988) that a brand with a more positive image does have the
effect of lowering consumers’ product perception risks and increasing positive
feedback from consumers. Therefore, consumers generally believe they can make
a satisfying purchase by choosing well-known brands and also lower any purchase
risks by doing so. Keller, (1993) defines a brand image as an association or
perception consumers make based on their memory toward a product. Thus, brand
image does not exist in the technology, features or the actual product itself, but is
something brought out by promotions, advertisements, or users.
Kotler, (2000) contends that brand is a name, term, symbol, design or all the
above, and is used to distinguish one’s products and services from competitors.
For example, Nike adopts a check mark as its brand image, which creates a
positive effect indicating approval. The consumer’s brand image will vary with his
or her experiences as filtered by the effects of selective perception, selective
distortion and selective retention.
BRAND LOYALTY
The most elaborate conceptual definition of brand loyalty was presented by Jacoby
et al. (1978). Jacoby et al. (1978) defined brand loyalty, according to this
definition, brand loyalty is: “The biased, behavioral response, expressed over time,
by some decision making unit, with respect to one or more alternative brands out
of set of such brand, anD is a function of psychological process.
Rethinking Brands from the Customer “Point of View”: According to Jim, (2003)
many of the less successful experience brands are not meeting the challenge of a
58
largely time-starved audience. In most societies today, time has become more
desired than money. Increasingly, people value experiences more than things.
Consumers are really looking for ways to make the most of everyday “lived”
experiences. So marketers need to constantly ask themselves, is our brand part of
the problem or part of the solution? A brand’s role in becoming a solution for its
audience can make it stand out for customers. In that sense, the meaning of brand is
its use. Profitable customers are born when a powerful brand promise is fulfilled
by a brand experience that exceeds expectations.
CONSUMER PREFERNCE
The preferences of the consumers are a positive motivation, expressed by the
affective compatibility towards a product, service or trading form. Preferences can
be triggered by: the features related to the material substance of the goods (shape,
size, print, taste, color, consistency, package, etc.); elements referring to label,
name, use instructions that accompany the product; the statute granted to the
person owning and using that particular product. Theoreticians, at some point, had
the tendency to limit the preference to the concept of choice; however choice and
preference are two radically different entities: the first one is an action and the
other one, a state of mind. Preferences are the result of a long-term relationship
between the brand and the consumer. These deep connections created over the
course of time, a strong emotion is developed which lies on the basis of
preferences, remaining present even in the absence of the friendly symbol or of
any other component feature. (Mirela-Cristina Voicu, 2008)
59
CONSUMER PERCEPTION
Perception is a process by which individuals organize and interpret their sensory
impressions to give meaning to their environment (Robbins & Judge, 2013). In
marketing, perceptions are more important than reality because perceptions affect
consumers‟ actual behavior (Kotler, Keller, Koshy, &Jha, 2014). Information
processing model have four major steps or stages. It starts with exposure followed
by attention, interpretation and lastly retention. The first three of these establish
perception (Hawkins, Best, Coney, &Mookerjee, 2007). All this takes place inside
the mind or black box of the consumers simultaneously, and it changes from
person to person. Perception is highly subjective and therefore easily distorted.
Moreover, perception is the
meaning that an individual attributes to the incoming stimuli that gathered through the five
senses that are taste, smell, touch, hearing and sight.
60
.
CONSUMER SATISFACTION
Consumer satisfaction is one of the most important issue concerning business
organization. The marketing concept suggests that a satisfied buyer will be more
likely to repurchase again, or at least has the intention of repurchasing again, than
those who are dissatisfied. They consider that customer satisfaction and retention
are the most important long-term objectives of firms. Reichheld and Sasser (1990)
suggested that new buyers cost more to serve than repeat customer, which means
that repeat customers are benefiting a firm’s cost structure. A firm’s primary
strategic objectives are to minimize customer regress and to maximize customer
intention rates to buy, as evidenced by the recent emphasis on customer
relationship management. Thus, previously satisfied buyers may help firms both
reduce marketing costs, and develop more stable levels of sales when a large
number of satisfied buyers are retained to purchase again in the future.. It is
generally accepted that satisfaction is a psychological state that results from
consumer experiences after consumption (Pleshko, &Heiens, 1996). According to
a widely accepted conceptualization, customer satisfaction is “a customer’s post-
consumption evaluation of a product or service” (Mittal &Frennea (2010, p. 3).
This only “occurs if the perceived performance of a product or service meets or
exceeds customers’ prior expectations” (Bearden & Teel, 1983; Oliver 1980,
2010).
61
CHAPTER-III
RESEARCH METHODOLOGY
62
RESEARCH METHODOLOGY:
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of study how research is done scientifically. In it we study the various
steps that are generally adopted by the researcher in studying his research problem along with
Research:
“Search” is a verb meaning to examine closely and carefully, to test and try, or to
probe.
Together they form a noun describing a careful, systematic, patient study and
RESEARCH DESIGN
63
A single cross-sectional research design was used for the survey and quantitative analysis was
used for the obtained dataset.
Primary data collection data collection was done through the questionnaire. The answering
scale for the questions related to brand image, consumer perceptions, consumer preference ,
consumer satisfaction and brand loyalty is a 7-item Likert scale from ‘extremely likely to
extremely unlikely’.
Research design is used when the subject matter of the research topic is neither absolutely
ambiguous nor absolutely certain.
Sampling –
64
CHAPTER -IV
DATA ANALYSIS
AND
INTERPRETATION
1. Age
65
Response Data Percentage
Below 20 9 18%
21-30 29 58%
30-40 9 18%
Above 40 3 6%
Total 50 100%
Age
6%
18%
18%
Below 20
21-30
30-40
Above 40
58%
INTERPRETATION
From the following data the age of the consumer is determined, could be seen that 58% of
them fall into the age group of 21-30, whereas 18% of them fall into the age category of
30-40 and below 20, and 6% of them fall into above 40 group
2. Gender
Female 22 44%
Total 50 100%
66
Table 4.2 Gender
Gender
Male
44% Female
56%
INTERPRETATION
The following data shows that there were 56% of male and the female were 44%.
3. Marital Status
67
Marital Status
30%
Married
Unmarried
70%
INTERPRETATION
The following data shows that there were 30% of married consumers where as 70% of
68
4. Occupation
Occupation
8%
18% Student
House wife
Employed
Business
4%
70%
INTERPRETATION
The following data shows that 70% of them are student, whereas 18% of them are
employed, 8% of them are into business and 4% of them are house wife.
69
5. Monthly Income
Monthly Income
24%
5000
5000-10000
44% 10000-20000
Above 20000
10%
22%
INTERPRETATION
It could be interpreted that 44% of people earn their monthly income above 20000,
whereas 24% monthly income lies in below 5000, 22% earn in the category of 10000-20000
2 2 4%
2-4 26 52%
70
4-6 18 36%
Above 6 4 8%
Total 50 100%
2
2-4
4-6
Above 6
36%
52%
INTERPRETATION
It can be analysed that 36% of them have their number of family members between 4 to
6, 52% with 2 to 4 members in their family, whereas 8% with the family members
71
Desi Ghee
24% 22%
Always
Often
Sometimes
Never
22%
32%
INTERPRETATION
From the following this could be interpreted that 32% of people often buy desi ghee, 24%
of them never buy it, where as 22% people buy is always and same with sometimes that is
22%.
72
Body Soap
12%
Always
16% Often
Sometimes
Never
52%
20%
INTERPRETATION
From the following this could be interpreted that 52% of people always buy body soap,
12% of them never buy it, where as 20% people buy is often and 16% sometimes buy body
soap.
73
Honey
12%
28%
Always
Often
Sometimes
Never
30%
30%
INTERPRETATION
From the following this could be interpreted that 28% of people always buy honey, 12%
of them never buy it, where as 30% people buy is often and 30% sometimes buy honey.
74
Tooth paste
8%
14%
Always
Often
Sometimes
Never
58%
20%
INTERPRETATION
From the following this could be interpreted that 58% of people always buy tooth paste,
8% of them never buy it, where as 20% people buy is often and 14% sometimes buy tooth
paste.
75
Shampoo
4%
20%
Always
Often
46% Sometimes
Never
30%
INTERPRETATION
From the following this could be interpreted that 48% of people always buy shampoo, 4%
of them never buy it, where as 30% people buy is often and 20% sometimes buy shampoo.
76
Hair Oil
10%
12%
Always
40% Often
Sometimes
Never
38%
INTERPRETATION
From the following this could be interpreted that 40% of people always buy hair oil, 10% of
them never buy it, where as 38% people buy is often and 12% sometimes buy hair oil.
77
Ayurvedic Product
20%
Patanjali
Dabur
Himalaya
52%
28%
INTERPRETATION
The data shows that 52% people use Patanjali products and 28% of them use Dabur
78
Do you use Patanjali Ayurved Products?
12%
Yes
No
88%
INTERPRETATION
The following data shows that 88% of them have used Patanjali Ayurved products and
79
Satisfied
6%
Yes
Sometimes
36% No
58%
INTERPRETATION
This data shows the satisfaction of the costumer for Patanjali Ayurved where 58% are
satisfied always, 36% are satisfied sometimes where as 6% are never satisfied
17. Do you agree that Patanjali products have made a good brand
image?
disagree
84% 11% 0 3% 3%
80
strongly disagree
2%
agree
11%
disagree
3%
strongly agree
84%
95% people thinks that patanjali product have made a good brand image
Quality 18 46%
Quantity 6 12%
Price 23 36%
Location 2 4%
Other 1 2%
Total 50 100%
Table 4.17 Unique selling preposition
81
Unique Selling Preposition
2%
4%
Quality
Quantity
46% Price
36% Location
Other
12%
INTERPRETATION
The data shows the unique selling prepositions of Patanjali Ayurved where 46 % use
Patanjali for quality, 12% for quantity, 36% for price, 4% for location and 2% for other.
82
18. Do you think Patanjali Ayurved can be proven tougher over
Competition
26%
40% Yes
No
Haven’t Thought About That
34%
INTERPRETATION
This data shows that nearly 40% of the consumers believe that Patanjali Ayurved can be a
tougher over its competitors, 34% says No, where as 26% haven’t thought of that.
Comparison
28%
Yes
No
48% Haven’t Thought About That
24%
INTERPRETATION
This data shows that nearly 48% of the consumers believe that Patanjali Ayurved are
better than other FMCG products, 24% says No, where as 28% haven’t thought of that.
20. Would you like to Switch to other brand if you get some
No 18 36%
Total 50 100%
84
Table 4.21 Switching over
Switching over
36%
Yes
No
64%
INTERPRETATION
When asked if the consumers would switch to the other brand 64% of them said yes and
85
Reason to Switch Over
6% 8%
Cost
Quality
30% 26% Satisfaction
Discounts
More Benefits
30%
INTERPRETATION
When asked if the consumers would switch to the other brand the reason to it were, cost
with 8%, quality with 26%, satisfaction with 30%, discounts with 30% and finally 6%
products?
86
Preference
6%
24%
Family
Friends
Advertisement
36% Self patanjali
34%
INTERPRETATION
Data shows that 24% of them were influenced by their family, 34% friends, 36%
Yes 42 84%
No 8 16%
Total 50 100%
87
Role of advertisement
16%
Yes
No
84%
INTERPRETATION
This data shows the role of advertisement towards creating brand preference- 84% says
88
Purchases
26%
Yes
No
74%
INTERPRETATION
This data shows that is the customers have purchased any Patanjali product after
coming across any advertisement 74% says yes where as 26% says no.
Data Percentage
Response
Better Recall 6 12%
Positive Impression 26 52%
Interest 14 28%
No Impact 4 8%
Total 50 100%
89
Advertisment Influenced
8%
12%
Better Recall
Positive Impression
28% Interest
No Impact
52%
INTERPRETATION
The data shows that in what way did the consumer got influenced by the advertisement,
12% says better recall, 25% says positive impression, 28% of them says interest where
as 8% had no impact.
90
CHAPTER – V
FINDINGS
Through the data presentation and data interpretation in Chapter IV. On the
Basis of the objectives taken for the study the research finding are as follows: -
According to the first objective, i.e., To study buying behaviour of customers towards
Patanjali Ayurved in Noida region, it is found that almost 100% of hem use
Ayurvedic products.
91
According to the second objective, i.e., 46% of the consumers prefers Patanjali
Ayurved because of the quality of the products, 12% of the consumers prefer it
because of the quantity, 36% of the consumer prefer it due to the price, 4% of them
prefer it due to the location and rest 2% prefer it due to other factors.
64% of the consumers may switch to other brand and 34% will not switch to other
8% will switch due to the cost, 26% will change die to quality, 30% will change due
to satisfaction, 30% of them will switch over Patanjali Ayurved due to discounts and
52% of the consumers prefer Patanjali Ayurved, 28% of the consumers use dabur and
According to the survey- 88% of the consumers have used Patanjali Ayurved and
58% are satisfied with the Patanjali Ayurved products, where as 36% of the
consumers are sometimes satisfied and 6% of the consumers are never satisfied with
the products of Patanjali Ayurved.
The product availability for 24% is under 1 kilometre, whereas 42% is within 1-2
kilometre, 20% of them have the availability of the product within 2-4 kilometre and
the rest 14% is more than 4 kilometre away.
40% of the consumers believe that Patanjali Ayurved can be triumphant over its
competitors, whereas 34% haven’t thought about it and 26% believe that it is not a
threat over its competitors.
92
48% of the consumer believe that the FMCG products of Patanjali Ayurved are
better than other company’s product, 24% haven’t thought of that and 28% don’t
think that Patanjali Ayurved is better than other company’s product. 24% of the
consumers are influenced by their family, 34% of them were influenced by friends,
36% of them were influenced by advertisement and rest 6% were influenced by
themselves.
84% of them believe that advertisement play role in brand preference and 16%
believe that brand does not play any role for brand preference.
74% have purchased Patanjali Ayurved by coming across the advertisement and 26%
of them haven’t purchased the products by coming across the advertisement.
22% of the consumers have purchased Patanjali products within a week, 54% of them
have purchased in a month 10% of them have purchased it in the time of 1-4 month
and 14% have last time purchased the product of Patanjali Ayurved 4 months back.
12% of the consumers got influenced through advertisement for better recall, 52% of
them have It for positive influence, 28% have interest and 8% had no interest.
93
CONCLUSION
From the above Research and data interpretation it is found that the different factors
influencing the buying behavior of consumers towards Patanjali Ayurved in Noida. Most
of the people prefer herbal products of Patanjali Ayurved are satisfied from the products,
they are buying the product due to its price, quality and quantity. They may switch over to
other products if provided with good quality, quantity, discounts and some of the
consumers will be loyal to the product. Overall Patanjali Ayurved is doing good in the
94
BIBLIOGRAPHY
Neha Tyagi & Sagar Malviya. (2016). Patanjali Ayurved injects new life into
herbal market, helps rivals sell more personal care products . The Economic
Times.
95
QUESTIONNAIRE
Noida Region.
1. Personal Details
a) Name
b) Location
c) Age
I. Below 20
IV. Above 40
d) Gender
I. Male
II. Female
e) Marital Status
I. Married
II. Unmarried
f) Occupational Status
I. Student
96
III. Employed
IV. Business
g) Monthly Income
I. Up to 5000
II. 5000-10000
III. 10000-20000
I. 2
II. 2-4
III. 4-6
IV. Above 6
I. Yes
II. No
_______________________________________________________________
I. Patanjali
II. Dabur
III. Himalaya
97
4. Mention the frequency .
Hair Oil
Shampoo
Tooth
paste
Honey
Body Soap
Desi Ghee
III. Yes
IV. No
_______________________________________________________________
_______________________________________________________________
I. Yes
98
II. Some times
III. No
I. Quality
II. Quantity
Location
V. Other
9. Do you think Patanjali Ayurved can be tougher over all its Competitors?
I. Yes
II. No
10. Is Patanjali Ayurved products are better than other branded FMCG products?
I. Yes
II. No
99
12. Would you like to Switch to other brand if you get some promotional schemes
I. Y
es
II. No
I. Cost
II. Quality
III. Satisfaction
IV. Discounts
V. More benefit
I. Family
II. Friends
III. Advertisement
e) strongly disagree
I. Yes
II. No
I. Yes
II. No
I. Better recall
III. Interest
IV. No impact
_____________________________________________________________________
101
THANK YOU
102