Professional Documents
Culture Documents
ON
A STUDY OF CONSUMER PERCEPTION ON THE
PATANJALI PRODUCTS
SUBMITTED IN PARTIAL FULFILLMENT OF
REQUIREMENT FOR THE AWARD OF THE DEGREE OF
BACHELOR OF BUSINESSS ADMINISTRATION 2015-18
1
CERTIF
ICATE
Mrs. Neetu
Aggrawal
(Asst. Prof.)
2
ACKNOWLEDGEMENT
AVINASH
PANDEY BBA 3rd
Year
3
INDEX
OBJECTIVES OF STUDY 10
RESEARCH 17-19
METHODOLOGY
20
LIMITATION OF STUDY
CHAPTER 3 CONCLUSION 37
RECOMMENDATION 38
BIBLIOGRAPHY 40
ANNEXURES 42-44
4
Introduction
The objective of the proposed study is to identify the specific factors that affect consumer
perception towards Patanjali products. The methodological approach to this
study is descriptive, because we attempt to identify and explain variables that exist
in a given situation and to describe the relationship that exists between these
variables in order to provide a picture of a particular phenomenon, but not to ferret out
cause-effect relationship.
The primary data was collected through questionnaire filling. The secondary data
was collected through the internet. India has a large chunk of population which is
at lower income level and at middle income level.
The project covers the aspects like Consumer perception on the Patanjali products
and
Patanjali got success in such a competitive market in very short span of
time.
The project covers the objective of the study that what is the main motive behind the study
on Patanjali Products.
Through the project you will get know that how Patanjali become a gaint FMCG
within 5 years.
project.
And you will get to know about the SWOT Analysis followed by
Patanjali.
6
The
Company:
Patanjali Ayurved was formed in January, 2006 as a private limited company by yoga
guru Ramdev and his partner Sri Acharya Balkrishnaji. In June, 2007, it was
converted to a Public Ltd. Company. It is registered under the Companies Act, 1956 and
has its registered office in Bijwasan, New Delhi and three other offices in Haridwar.
The company was started with the vision of uplifting the life of Indian farmers by
locally sourcing the raw materials from them and making their lives better while at
the same time provide an opportunity to the Indian masses to move towards healthy
lifestyle by promoting Ayurveda and herbal products. Baba Ramdev started off as a
yoga trainer who featured in televised programs in Aastha and Sanskaar channels
and made Indians realize that they have forgotten Indian tradition and art forms-
one of them being yoga. He got wide acceptance and word of mouth publicity helped
him reach to a wider audience. He projected Yoga as a panacea to all the health problems.
In its first year of operations, 2008, Patanjali generated a revenue of over 60 crores.1
Almost 10 years later, the homegrown venture has grown to be a 5000 crore company
and is posing a threat to the well-established companies in the FMCG domain.
Patanjali range of
products
Patanjali has a wide range of products with the theme of Ayurvedic/herbal being
common across all categories. It has four business divisions: food and beverages,
cosmetics and health, health drinks and home care. The highest revenue grossing
products are Patanjali cow ghee, Dant Kanti, Kesh kanti, Patanjali Atta noodles and
Patanjali Aloe Vera juice and gel.
The customer base of Patanjali is very huge and with each passing day, it is growing
bigger. A major ramp-up came when Patanjali was relaunched by Baba Ramdev in 2014.
After that it has not looked back. The company is finding it difficult to cater to the demand
of all the customers. It has increased its distribution channels and expanded its reach
multifold from the point when it started. Production has also increased and it has now over
450 products in its portfolio.
Organization
structure:
The Board of Directors is formed of three founding people. Swami Acharya Balkrishnaji is
serving as the Managing Director of the company. Two other members Swami
Muktanandji and Sri Ajay Kumar Arya are also holding positions as the Directors
of the company. Swami Ramdev do not hold any position or stake in the company
but does act as the
Ambassador for the entire Patanjali brand. The operations department is
headed by
7
Ramdev’s brother Ram Bharat. Everyone else from the finance, logistics and other
teams report to him He is the informal CEO but designations are not very
formalized within Patanjali. Patanjali has over 200,000 employees in total. They hire
street-smart people and do not look for MBA graduates only. This helps them to
keep costs down while also delivering unprecedented growth.
Revenues
Revenues
Year
(In Rs Crore)
2009-10 165
2010-11 317
2011-12 446
2012-13 850
2013-14 1200
2014-15 2006
2015-16 5008
2016- 17 10562
Production
Patanjali Food and Herbal Park at Haridwar is the main production facility operated
by Patanjali Ayurved. The company has a production capacity of ₹350 billion (US$5.4
billion) and is in the process of expanding to a capacity of ₹600 billion (US$9.2 billion)
through its new production units at several places, including Noida, Nagpur, and
Indore. The company plans to establish further units in India and in Nepal.
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" category protection of central paramilitary
forces
8
Mission and Vision of Patanjali
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.
MISSIO
N
Making India an ideal place for the growth and development of Ayurveda
and a prototype for the rest of the world.
9
SWOT ANALYSIS
S-STRENGTH
2. Extensive marketing has pulled people into accepting its products as a healthier
and safer option.
3. Strong brand ambassador with Baba Ramdev as its face helped boost the
business for Patanjali.
4. Patanjali offers new products, new style of marketing etc has changed the
market dynamics.
W-WEAKNESS
10
O-OPPORTUNITIES
T-THREATS
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 overcome
new competition from Patanjali
11
PATANJALI KEY TO
SUCCESS
Media attention:
Ramdev rose to national fame as a yoga guru through his programmes on TV channels -
Sanskar in 2001 and Aastha from 2003. He readily acknowledges the role of the media
in his rise. "Patanjali ko bananey mein ek se 10 per cent humara role hai, baaki
role media ka hai (My own role in the rise of Patanjali is just one to 10 per cent, the rest
of the credit goes to the media)," he told Business Today website.
Less Price:
Retail outlets:
Variety of
products:
Already, a few Patanjali products have made major inroads - apart from desi ghee,
its toothpaste Dant Kranti, for instance, launched in March 2010, brought in revenues
of Rs
200 crore in 2014/15. Patanjali has also ventured out to produce many other new items
that were mostly produced by foreign companies in recent months. Patanjali
also sells
toothpastes, unpolished pulses and
detergents.
12
Swadeshi factor:
"We don't want to put anyone down, but we would like to instil swadeshi pride so
that Indian money does not go out of the country." He is aware that the competition is
gunning for him.
Advertising:
Patanjali's own advertising was limited in the past, but has increased considerably of
late, with ads appearing on general entertainment TV channels (GECs) such as Star and
Zee. The
company has also reached out to regional Southern
channels.
13
OBJECTIVES OF THE STUDY
14
Literature Review
15
Review of Literature
CONSUMER
PERCEPTION
Retailers aim to increase their sales by determining what drives their customers'
purchase decisions. Consumer perception theory attempts to explain consumer behavior by
analyzing motivations for buying or not buying for particular items. Consumer perception
applies the concept of sensory perception to marketing and advertising. Just as
sensory perception relates to how humans perceive and process sensory stimuli
through their five senses, consumer perception pertains to how individuals form
opinions about companies and the merchandise they offer through the purchases
they make. Retailers apply consumer perception theory to determine how and what
their customers perceive about them. They also use consumer perception theory to
develop marketing and advertising strategies intended to retain current customers
and attract new ones. Three areas of consumer perception theory relate to consumer
perception theory: self perception, price perception and perception of a benefit to
quality of life.
Self Perception
Self perception theory attempts to explain how individuals develop an understanding of
the motivations behind their own behavior. Self perception by customers relates to
values and motivations that drive buying behavior -- which is also an important
aspect of consumer perception theory. For instance, a study by researchers at the
University of Massachusetts at Amherst addressed how self perception shaped
consumers' buying behavior. The study considered the question of whether
consumers believed their buying decisions had a real effect on issues such as
environmental impact. The researchers concluded that consumers' self perception was a
driving factor in whether or not they placed a priority on socially conscious purchase
and consumption practices. Consumers who viewed themselves as socially conscious
tended to place more weight on issues such as environmental impact when making
buying decisions than consumers who did not hold similar views of
themselves.
Price Perception
While mass merchandisers such as Wal-Mart emphasize low prices as an inherent
virtue, upscale merchants attempt to emphasize quality and value for money to appeal to
potential customers. Researchers at the School of Business Administration at LaSalle
University and
LeBow College of Business at Drexel University considered several factors, including
price
16
perception -- whether consumers believed they were being charged fair prices --
in determining whether online shoppers would make repeat purchases through the
same website. The researchers concluded that price perception strongly influenced
whether customers were satisfied with their purchases and whether they would
make future purchases. Two factors that shaped price perception were the perceived
quality of the merchandise or service in question and price comparisons with merchants
offering similar merchandise or services.
Benefit Perception
"It's good, and it's good for you." Many consumers are familiar with this phrase
frequently associated with food advertising. Researchers from Marquette University,
Louisiana State University and the University of Arkansas surveyed customers to
determine how nutrition claims associated with food affected their perception of that
food's nutritional value. The researchers found that consumers tend to reject general,
unsupported claims of enhanced nutrition, especially concerning high nutritional value
for foods that are traditionally viewed as unhealthy. The researchers also theorized that
consumers would demonstrate a trend toward applying more scrutiny to nutrition
claims and would demand more specific information about the foods they purchase.
Lee (2005), carried out study to learn the five stages of consumer decision making
process in the example of China. The researcher focuses on the facts that affect
the consumer decision making process on purchasing imported health food
products, in particular demographic effects such as gender, education, income and
marital status. The author employed questionnaire method in order to reach the
objectives of the research. 18
Analysis of five stages of consumer decision making process indicate that impact of
family members on the consumer decision making process of purchasing imported
health food products was significant.
Blackwell et al (2006) Five Stages Model of consumer decision making process has
also been studied by a number of other researchers. Although different researchers
offer various tendencies towards the definitions of five stages, all of them have common
views as they describe the stages in similar ways. One of the common models of consumer
decision making process has been offered.
[Samojlik, 2013] Herbal Medicines are used in the modern day for health maintenance,
the treatment or prevention of minor ailments and some chronic diseases, and they are
often taken in addition to conventional medicine in the more serious and/or chronic
conditions.
[Brower; 1998] The Indian herbal drug market is about $ one billion and the
export of herbal crude extracts is about $ 80 million. The sales of these drugs account for
almost 50% of the herbal medicine market.
(Sharma, Shanker, Tyagi, Singh, & Rao, 2008) A WHO (World Health
Organization)
study estimates that about 80 percent of world population depends on natural products
for
18
19 their health care instead of modern medicines primarily because of side effects and
high cost of modern medicine.
(WHO & Kumar &Janagam, 2011) The worldwide herbal market products are
around
$6.2 billion and estimated to reach $5 trillion by the year 2050
(Kotler, Keller, Koshy, & Jha,2014) marketing, perceptions are more important
than reality because perceptions affect consumers actual behaviour.
‟ According to Kurtz and Boone, (2006) different people have different perceptions
of objects or events based on theinteractions of two types of factors that are stimulus
factors
and individual factors.
19
RESEARCH
METHODOLOGY
20
Research design
RESEARCH OGY
METHODOL
SOURCES
OF DATA:
The task of data collection begins after a research problem has been
defined and research plan chalked out. While deciding about the method of
data collection to be used for the study, first of all the sources of data must be
very clear.
2
1
SAMPLING PLAN:
Sampling Unit:
The sampling Unit is the entity to which we have to follow during the whole
research study.In the context of the project study, the sampling unit primarily consists of
Individuals.
Sampling Size:
In the context of the project study, 100 respondents are chosen keeping in view
the above constrains. Attempts have being made to see that samples are chosen from
different strata.
1. Sampling Methods:
There are various methods of sampling in the context of my project study I have
selected Non-probability Sampling Method. And under that, I have taken
Convenience Sampling. Under this I prepared a simple questionnaire to collect the
information.
Data analysis is based on the data collected by the questionnaire. From the
collected data findings are extracted. The data is tabulated and frequency
distribution chart is prepared.
Charts make easy to understand. Therefore I have use pie chart to present the data.
23
LIMITATION OF THE STUDY
Every attempt will be taken to obtain error free and meaning full result but
as nothing in this world is 100% perfect.
I believe that there will be still the chance for error on account of following
limitation:-
The information obtained from the consumer based on questionnaire was assumed
to be factual.
Since the survey is basrd on sampling method, it does not disclose the
charter of entire customer.
Product unavailability for the consumer in the market is one of the biggest
limitation for Patanjali Products.
24
RESEARCH ANALYSIS
AND INTERPRETATION
25
RESEARCH ANALYSIS AND INTERPRETATION
10%
10%
50%
30%
The majority of the respondents were from the age group of 15-25
followed by age group of 35 and above.
26
2) Have you used any product of Patanjali brand ?
yes
N0
90% 10%
10%
90%
27
3) Do you agree Patanjali offers a large variety of products?
9%
25%
52%
6%
8%
77% people strongly agree that patanjali offers large variety of product
while
17% people think that patanjali has not offers large variety of product.
28
4) Do you agree that Patanjali products are of high quality?
4%
29%
57%
2%
8%
86% people believe that patanjali offers good quality of product but
14%
customers are not satisfy with the quality of product.
29
5) Do you agree the prices of the Patanjali products are fair?
10%
31%
44%
10%
5%
75% customer thinks that the price of patanjali products are fair but
25%
customer thinks that the price of the product are not fair.
30
6) Do you agree that the Patanjali products have appealing packaging?
8%
29% 42%
4%
17%
31
7) Do you agree that Patanjali products have natural ingredients?
29%
71%
32
8) Do you agree that you are satisfied with the patanjali product?
15%
22% 45%
19%
33
9) Have you faced any problem while using the product?
yes N0
22% 78%
no; 78%
yes; 22%
78% customer are happy and they do not face any problem while
22%
customer are facing problem with patanjali product.
34
10) Do you agree that Patanjali products are chemical-free?
18%
49%
18%
10%
5%
35
11) Do you agree that Patanjali products have made a good brand image?
2% 11%
3%
84%
95% people thinks that patanjali product have made a good brand
image while few peoples are not agree with that.
36
12) Please indicate the reason why you prefer patanjali product?
10%
20% 40%
30%
40% People thinks that Patanjali Product are convinent and 30% people
thinks that
Patanjali product are affordable.
37
13) How do you come to know about the product?
EDUCATION %
Advertisement 50
Recomandation 30
Self Exploration 20
60
50
40
30
20
10
0
Advertisement Recomandation Self Exploration
38
FINDINGS
The data collected through 100 questionnaires is analyzed. Out of 100 users,
dominant portion i.e. nearly 2/3rd of the users age between 15-25 years. Looking at
the gender distribution, 70% of the users taken under study are females who can
perceive to be more interested in buying herbal cosmetics. In Occupation frequency,
nearly half of the users are students who are pursuing studies followed by35% of service
class users.
77% people strongly agree that patanjali offers large variety of product while 17%
people think that patanjali has not offers large variety of product.
86% people believe that patanjali offers good quality of product but 14% customers
are not satisfy with the quality of product.
75% customer thinks that the price of patanjali products are fair but 25% customer
thinks that the price of the product are not fair.
50% of the people came to know about Patanjali through advertisements 30%
on recommendations whereas 20% on Self Exploration.
39
RECOMANDATION
And
CONCLUSION
40
CONCLUSION
They have to focus back on product efficacy. Rising above the noise
of advertising.
They can increase their outlet and stores.
42
BIBLIOGRAPHY
43
BIBLIOGRAPHY
https://www.patanjal i ayurved.net/
https://en.wi ki pedi a.org/wiki /Patanjal i _Ayurved
https://www.sl ideshare.net/tri shal agautam/patanjal i -research
http://www.news.kenresearch.com/post/147442303438/company-profi l e-
of- patanjal i -ayurved-l i mi ted-new
http://www.patanjal i researchfoundati on.com/cgi -sys/suspendedpage.cgi
https://www.researchgate.net/publ i cati on/305995560_The_Phenomenal
_Su ccess_of_Patanjal i _i n_FMCG_Sector-An_Anal yti cal _Study
BOOKS
Majumdar Ramanuj, (2009) Consumer Behaviour: Insights from Indian
Market, IV Edition, New Delhi, PHI Learning Pvt. ltd.
Nargundkar Rajendra, (2017) Marketing Research: Text and Cases 3rd
Edition, New Delhi, McGraw Hill Education.
44
QUESTIONNAIRE
45
QUESTIONNAIR
E
1) Name
........................................
2) Age
3) Gender
4) Qualification
5) Material Status
10) Do you agree the prices of the Patanjali products are fair?
11) Do you agree that the Patanjali products have appealing packaging?
13) Do you agree that you are satisfied with the patanjali
Neutral ( )
15) Have you faced any problem while using the product?
47
(a) Yes ( ) (b) No ( )
17) Do you agree that Patanjali products have made a good brand