Patanjali PR
Patanjali PR
On
To
Guide : Submitted by :
I Harpreet singh hereby declare that the project entitled Customer Perception
towards Patanjali Grocery Products has been prepared by me towards the
partial fulfilment of requirement of Bachelor of Business Administration (BBA)
Degree under the guidance of Dr. Anil Grewal and Dr. Manju Singh.
I also declare that this project report is my original work and has not been
previously submitted to any Degree, Diploma, Fellowship, or other similar
titles.
I acknowledge the help and cooperation received from all colleagues from who
have contributed directly and indirectly to the contents of this project, as they
had given me numerous ideas. Their criticism gave me the much-needed hints
about the areas that needed elaborations and amendments and also to
present them with greater clarity.
Thanking You!
Harpreet Singh
Table Of Content
S.no Content Page no.
Declaration
Acknowledgement
Executive Summary
Objectives of study
Table of content
1 Chapter 1
Profile of the company
2 Chapter 2
Literature Review
3 Chapter 3
Research Methodology
4 Chapter 4
Data Analysis
5 Chapter 5
Findings And Conclusion
6 Bibliography
Executive summary
Patanjali, founded in 2007 by Baba Ramdev and his aide Swami Acharya
Balakrishna has grown into a 5000 crore company in 2015. It has disrupted the
entire FMCG market with its unconventional growth story. The credit goes to
Baba Ramdev who has very meticulously decided the timeline for each action
and delivered unprecedented success. Patanjali's vision is to provide
herbal/ayurvedic/natural solutions to all the problems and in this pursuit it is
also elevating the livelihoods of local farmers. The mission and vision of the
company are mentioned in the first chapter including the strengths,
weaknesses, opportunities and the threats to the Patanjali company. Chapter
two includes the literature review and further the research methodology's
mentioned. The methodology used in the project is Convenience sampling
technique with non probability based sampling. The sample size of the
research is 100. In this research a random of 100 consumers with different age
groups and occupations were asked for feedback. Data is analyzed from the
feedback given by the customer by: answering different set of questions and
some interpretation is done using pie charts, tables in the research. At last the
findings and conclusions are concluded on the basis of the questionnaire filled
by the respondents, proper limitations and suggestions to the study are given
on basis of the analysis through the information gathered, to give glimpse
about the corrective measures that can be taken by Patanjali in order to have a
good growth and development in the market.
Objective of the study
INTRODUCTION TO PATANJALI
Patanjali Ayurveda was formed in January 2006 as a private limited company
by yoga guru Ramdev and his partner Sri Acharya Balakrishna. 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 home grown venture has grown to be a 5000
crore company and is posing a threat to the well established companies in the
FMCG domain.
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 ridiculously 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:
This helps them to keep costs down while also delivering unprecedented
growth.
Production
Patanjali Food and Herbal Park at Haridwar is the main production facility
operated by Patanjali Ayurveda. 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.
VISION
Keeping Nationalism, Ayurveda, and Yoga 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.
S-STRENGTH
1. Patanjali has grown at a rapid pace within a short span of time.
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.
5. More than 200,000+ employees with Patanjali.
W-WEAKNESS
1. Launched too many products in a short time.
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.
Media Attention
Less Price
Patanjali products are available at an attractive discount as compared to their
competition. The company sources products directly from farmers and cuts on
middleman to boost profits. Hence, they can reduce their raw material
procurement cost and are able to produce goods at a much cheaper rate.
Retail outlets
Initially, Patanjali shunned the conventional distribution network, preferring to
rely on its own channels of super distributors, distributors, Chikitsalayas
(franchise dispensaries) and Arogya
Kendras (health center’s which sell Ayurvedic remedies). Once it turned to
retail outlets from 2011, revenue began to multiply manifold.
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.
Patanjali is happy to co-exist with indigenous companies, multinational ones are
a different matter. "Humara ek simple funda Hai: MNCs ko replace karna (We
have a simple principle: we want to replace MNCs)," said Ramdev.
"We don't want to put anyone down, but we would like to instill swadeshi pride
so that Indian money does not go out of the country." He is aware that the
competition is gunning for him.
Future Growth.
HUL was started in 1933 by Lever Brothers and became Hindustan Unilever
Limited as a result of merger between Lever Brothers. Hindustan Vanaspati
Company limited and United Traders Limited in 1956. HUL products are Lux,
Surf excel, Rin, Wheel, Clinic Plus, Life Boy, Close up, Pepsodent, Fair &
Lovely, Vim, Dove, Sun silk, Vaseline, Pears, Lack me. Bru Coffee, Lipton,
Tea and Kissan Jam.
Dabur India is one of the leading FMCG companies & world leaders in
Ayurveda Started in 1884 as an Ayurveda company by Burman family of
Calcutta. Dabur India has become one of the biggest Indian owned FMCG
Company with the largest herbal and natural product portfolio in the world.
Product categories of Dabur include Hair care, Oral Care, Skin Care, Home
Care and Foods. It is known products are Vatika, Hajmola, Real fruit juices and
beverages and Fem for fairness and skin care products. Dabur products are
available over 120 countries across the globe.
Nestle Ltd:
According to Kochhar, the reason why online is a better channel for distribution
of this category is that for a local retailer or kirana store, it is not economically
feasible to stock the entire product line or selection of products, as the category
is still small. Ayurveda is about 5-10 per cent of the entire food and personal
care category, estimated at Rs.1, 50,000 Crore. Patanjali Ayurveda Business
growth driven by increasing demand for herbal products, brand image and
new product pipeline.
CHAPTER -2
Literature Review
As world well known that Indian civilization is one of the oldest civilization
from ancient time the priest and saints had much medical, health and
political reached more than present time, Though Ayurveda which means
life-knowledge, has the genesis in the Indian subcontinent, the Indians have
been molded to take to the English medicines over the years for their
assured faster relief. The origins of Ayurveda are also found in the
Atharvaveda which contains 114 hymns and incantations described as
magical cures for disease. The Indian Ayurvedic medicine market is not as
popular as the allopathic medicine market for various reasons.
The people of the country or locality are always keen towards the natural or
Ayurvedic products, in these medicines or other Ayurvedic products are
giving a tough competition to the FMCG products market for consumer
satisfaction.FMCG firms attracts the consumer by advertisement to gain
maximum profit, for this purpose firms hire many actors and actresses, but
on other side Baba Ram Dev promote his products on his own, in this way he
came out as the role model and promoter of Patanjali Ayurveda, in this
Patanjali’s advertisements are seen on most of the TV channels, the main
aim behind the promotion is ‘Swadeshi’ (made in India) and to provide pure
products to the consumers and also sustain a brand in the Indian as well as
international market. S. Deepika and S. Ambu (2017) Today’s consumer
wants to know what they can use for their life or what composition of the
products, this curiosity of the consumer exploited by the Baba Ram Dev, has
to maintain and sustain the quality of own products along with its fastest-
growing volumes in the Indian market. Today’s consumer are more health
conscious and are maintaining a good quality life, and their preference to
consume such products which give them a good state of their health as well
as provide maximum satisfaction, the consumer familiarity discipline leads in
providing ‘best total solution’ an affirmation that the company helps its
consumers recognize their accurate problem and the best solution,
ultimately taking charge of implementing it, Baba through his product
offerings addresses all three value disciplines offering a unique blend of
Ayurveda and Vedic philosophy to provide value for his customers(R.
Priyanka, 2016)..
Chauhan and Mittal (2017) studied the impact of brand image of Baba
Ram Dev on the consumer‟s perception to buy Patanjali Products and
also the satisfaction level of consumers towards „PATANJALI‟ Products. It
was revealed that there is no significant difference between preference of
male and female consumers towards Patanjali products. Majority of the
respondents connect the positive image of Patanjali with Baba Ram Dev;
at the same time some religions also don‟t buy the products because of
Ram Dev‟s name. Personal care products are more preferred by
consumers followed by Food items. Majority of the people are satisfied
with the pricing strategy of Patanjali products. They feel that the
products are worth to money. It is concluded that a large portion of the
user is satisfied from Patanjali products and satisfaction brings in the
retention of customer.
Patel Vishal et.al [2011],in line with guidelines of WHO for manufacture
quality and standardization Author presents the various facets of the
methods of different aspects of development and manufacture quality /
standardization of herbal drugs . For herbal medicine to have respected
place in contemporary health care system then the quality with standards
is paramount .
Sharma, Shankar, Tyagi, Singh, & Rao, 2008: A WHO (World Health
Organization) study estimates that about 80 percent of world population
depends on natural products for 19 their health care instead of modern
medicines primarily because of side effects and high cost of modern
medicine.
Osterwalder & Pigneur (2003): notes in their study that the importance
of frictional costs is illustrated by Amazon’s attempt to patent the one-
click purchase technology. The attempt also shows the frictional costs
potential in constructing competitive benefits in markets. The frictional
costs can be reduced on Amazon’s website through one-click technology
and lower the overall cost of obtaining the product form de page
compared obtaining from its competitors.
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.
The study finds positive opinion from the users of Patanjali’s products,
apart from few complaints of low quality of packaging, distribution
strategy is successful, advertising strategy is also very aggressive. The
result established the fact that people are accepting Patanjali’s‟ products
because of its herbal nature, good quality and reasonable price compared
to its counterpart MNCs. Patanjalis‟ strategy of entering all the segments
of FMCG sector is also unique.
Surinder (2015): In his study “Consumer perception towards the FMCG
in rural market” tells about the rural customers are mainly influenced by
media, print advertisement and word of mouth. It plays a significant role
in the buying decision of the customer in the rural areas.
1.1 Meaning
Fast Moving Consumer Goods segment is the fourth largest and fastest
developing sector in the Indian economy. FMCG are products that are sold
quickly, it has less shelf life and relatively low cost.
The major FMCG companies are Dabur India Ltd, ITC, Nestle, Patanjali
Ayurveda Ltd, Britannia, and HUL. The earnings of FMCG commodity are
relatively small, but they are generally sold in large quantities. From the
consumers perspective they frequent purchase FMCG products for day to day
consumption with low involvement to choose the item. They are used at least
once a month directly by the end users. From company perspective large scale
of production helps to reduce the cost of production and extensive distribution
networks helps in large to sell the products in high volume.
The Middle income and the rural population are the potential market for
FMCG products. Shift to organized market, increase in penetration, easy access
and rural consumption are the drivers for lndia 's FMCG sector Branding,
advertising and innovation are the problems of FMCG industry. Indian
customers are more adaptable to new and innovative products. The large
customer base, purchasing power, competitive market, and media are the
important factors which contributed to the growth of FMCG industry in India.
Consumer Perception is the procedure through which the people organize and
understand their sensory impersonation through noise. Sight, smell, taste, etc.
To give sense to their surroundings.
Internal Factors:
d) Past Experience: A person's past experience mould the way he perceives the
situation.
ELEMENTS OF PERCEPTION
on their sensory preference that is sight. sound .taste. smell and touch and
also it includes the
with that color, shape size and packaging are also important for marketers
when a designing
the product.
e) SMELL: These senses are less significant to person, but it has a Long
affect. If it used,
then the smell can be defined as how they felt.
BEARING: These Senses create a feel of relation and stimulation,
consumer show capacity to drag some sounds right up from while
unnoticing the others.
TOUCH: Skins are the major organ and Lile touch affects the whole
organism and the practice of these senses depends upon product category.
TASTE: This sense is combined with sense of smell then it becomes even
more powerful.
A tongue has different taste like sugar, salt etc.
The perceived quality of most Patanjali products that are driving the growth of
business (namely - ghee, chavanprash, toothpaste and shampoo) is considered
superior by the consumers. It’s the classic trial-conversion model - once the
consumer tries these products (either on recommendation or by self), most of
them get glued to these products.
2. Price Advantage:
3. Brand Truthfulness
6. Brand Trust:
Last but most importantly – with all the factors listed above, Patanjali
consumers have developed an unshakable faith in the products that they are
using. Trust in the brand has been developed over a period with positive
experiences with the products. This trust has converted many of Patanjali
consumers to brand evangelists. The word of mouth of satisfied consumers
seems to be driving force behind growth of Patanjali products.
1. Too many surveys, so little time: Your customers are bombarded with online
surveys. Surveys may be simple to complete, however, some people simply do
not like to complete them. Sending surveys too often can irritate customers
and lead to customer burnout. Customer burnout can result in low response
rates or result in lower satisfaction scores, despite your reputation for
providing excellent products or services.
2. Privacy Issues:
Research Methodology
Research Methodology is considered as the nerve of any project as this
is one measure that helps determine how accurate the results of a
research method are. The primary objective of the study was to
identify the most common factors influencing the consumers‟ buying
behavior to purchase FMCG products and to find the consumer
perception towards the company, Patanjali. Study on the level of
satisfaction of customers using a Patanjali product has been done. A
sample of 52 was surveyed to ascertain the exact standing Patanjali,
when it comes to customer experience and satisfaction.
A questionnaire was prepared after studying the company profile and
the current FMCG market scenario. Standardized questionnaire was
adopted to collect the data in the study.
Brand Image/Perception of consumers (regarding Patanjali)
Level of satisfaction while using a Patanjali product
The project is based on survey plan. The main objective of the survey
was to collect appropriate data, which worked as a base for drawing
conclusions and getting results. This helped in capturing a snapshot of
the attitudes and behaviors – including thoughts, opinions, and
comments – about our target survey population.
A total of 225 consumers were selected by using
Judgmental/Convenience Sampling Technique, keeping the objectives
of the research in mind. The sampling size included both male and
female of different age and income groups.
Data Collection
Primary Data
The report is prepared after collecting data from the
questionnaire prepared. Data was collected by floating the
questionnaire online Mall intercept survey method, personally
approaching and asking people directly.
Secondary Data
In order to have a proper understanding, an in-depth study was
done from various sources such as books, articles from leading
journals, magazines, reports of agencies of national and
international repute and articles from various websites.
A structured questionnaire based on different factors, related to the
attributes of preferring, feedbacks and likings, was constructed using
an itemized rating scale: Likert scale in order to measure the
perception of the consumers of the criteria of choosing consumer
packaged goods and its underlying factors. Questionnaire was prepared
in such a way that it should be easy and convenient for the
respondents to answer all the questions in a short period of time. A
total of 52 persons have filled the survey, which would be forming the
basis for further evaluation and analysis.
Research Design
Sample size
Sampling Technique
In order to collect, organize and analyze the data and to find out
various interpretations arising out of it, MS-Excel Spreadsheets and
IBM SPSS Statistics 23 were used. Various tools like creating Pie Charts,
Bar Diagrams and different type of Graphs were used to analyze
customer response and understand the inferences arising out of it.
CHAPTER-4
Data Analysis and Interpretation
Interpretation : 54% of the respondents said that they seen tangible benefits
of using Patanjali grocery products and 46% said that they have not seen any
kind of tangible health benefits of using Patanjali grocery products.
Interpretation : 35% of the respondents said that they have complaint about
Patanjali product ever and 65% of the respondents said that they have not
complaint about Patanjali product.
10.Are Patanjali grocery products are genuine?
11.Is it good to buy Patanjali grocery products for the Indian Economy ?
Category No. of respondents % of respondents
Yes 38 38%
No 19 19%
Maybe 43 43%
Total 100 100%
13. Overall, how satisfied are you with Patanjali grocery products ?
Interpretation : 37% of the respondents said that they are satisfied with
Patanjali grocery products, 23% of the respondents said that they are
dissatisfied with Patanjali grocery products and 40% of the respondents choose
to remain neutral.
According to the survey, 18% respondents use Acne/skin care products, 17%
use hair care products and 4% respondents use dairy products, 3% use bakery
products, 11% respondents use grocery products and 17%% respondents use
beauty care products 13% respondents buy biscuits and cookies, 9% buy
spices, 19% buy herbal tea, 19% buy jam, 23% respondents buy sugar, 17% buy
broken cereal, 21% buy gram flour, 26% buy pickle, 32% buy mustard oil, 30%
buy com flakes, 32% buy pulses, 25% buy rice, 17% buy noodles and 15% buy
oats 64% of the respondents said that they will recommend Patanjali products
to others and 36% of the respondents said that they will not recommend
Patanjali products to others. 36% respondents choose Patanjali products
because they are organic, 23% respondents choose Patanjali products because
of good quality cum maximum quantity, 22% choose as there were no negative
effects and 19% respondents choose Patanjali products because of cheaper
prices.
54% of the respondents said that they see tangible health benefits of using
Patanjali grocery products and 46% of the respondents said that they did not
see tangible health benefits of using Patanjali grocery products.
35% of the respondents said that they complaint about a product and 65% of
the respondents said that they do not complaint about a product.
13% of the respondents strongly agree that Patanjali grocery products are
genuine, 24% of the respondents agree that Patanjali grocery products are
genuine, 44% of the respondents are neural that Patanjali grocery products are
genuine and 13% of the respondents disagree Patanjali grocery products are
genuine.
72% of the respondents said that the products are affordable and 28% of the
respondents said that the products are not affordable. 38% of the respondents
said that it is good to buy Patanjali grocery products for the Indian economy,
19% of the respondents said that it is not good to buy Patanjali grocery
products for the Indian economy and 43% of the respondents said that maybe
it is good to buy Patanjali grocery products for the Indian economy.
20% of the respondents gave 4 points to Patanjali grocery products, 11% of the
respondents gave 5 points to Patanjali grocery products, 36% of the
respondents gave 3 points to Patanjali grocery products, 19% of the
respondents gave 2 points to Patanjali grocery products and 14% of the
respondents gave 1 points to Patanjali grocery products.
The Sample Size chosen was Small and limited as response from only 100
people is collected.
market.
Books
Websites
1. Name
______________.
2. Age
_______________.
3. Contact no.
_______________.
4. Gender
_______________.
5. Occupation
o Student
o Business
o Profession
o Service
o Unemployed
o 20000-30000
o 30000-40000
o Dairy products
o Bakery products
o Grocery products
o Other
o Everyday
o Frequently
o Rarely
o Never
o 10-100
o 101-500
o 501-1000
o Above 1000
11. Would you like to recommend patanjali grocery products to
others?
o Yes
o No
o Online order
o Retailer
o Wholesaler
o Patanjali store
o Organic
o Good quality cum maximum quantity
o No negative effect
o Cheaper prices
14. Have you seen any tangible health benefits of using Patanjali
grocery products ?
o Yes
o No
o Yes
o No
o Strongly agree
o Agree
o Neutral
o Disagree
o Strongly disagree
o Yes
o No
o Maybe
18. Do you find them affordable ?
o Yes
o No
19. Overall, how satisfied are you with Patanjali grocery products ?
o Satisfied
o Dissatisfied
o Neutral
o 1
o 2
o 3
o 4
o 5