A Project Report on Consumer Buying behavior towards Patanjali Ayurved in Bareilly.
Submitted for partial fulfillment of the requirements for the award of the degree of BACHELOR OF COMMERCE (HONORS) BY YASHI GUPTA (1310100162) Under the guidance of Mr. Rajeev Singh Bhandari Assistant Professor Department of Management Studies Invertis University, Bareilly.
INVERTIS UNIVERSITY, BAREILLY (U.P.) SESSION 2015-2016 1
CERTIFICATE
TO WHOM IT MAY CONCERN
This is to certify that Ms. Yashi Gupta student of Bachelor of Commerce (Honors) 6 Semester in our institute has successfully completed his/her project work entitled “Consumer Buying behavior towards Patanjali Ayurved in Bareilly area” for the partial fulfillment of the degree of Bachelor of Commerce (Honors) for the session 2015-16.
Prof. Arpan Khastgir (Director Management)
Dr. Rachna Saxena (HOD, BBA & B.Com)
Mr. Rajeev Singh Bhandari (Assistant Professor)
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 encouragement crowned my efforts with success. I would like to show my gratitude towards guide Mr. Rajeev Singh Bhandari for guiding and making me capable enough to work on this report. I would also like to show my gratitude towards Dr. Rachna Saxena (H.O.D,) B.Com(H), Invertis University) for her valuable advice, knowledge and encouragement towards my endeavor in making this project successful along 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.
YASHI GUPTA
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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 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. 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 India have been given. 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 about herbal industry and FMCG products in the world. 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 Bareilly area. 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 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.
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TABLE OF CONTENTS SR.NO CONTENTS
1.
2.
3.
4.
Chapter- I Introduction About The Topic and Company Profile
Chapter: II literature Review
Chapter: III Research Objective/ Research Design/ Methodology
Chapter: IV Data Analysis and Interpretation
PAGE NO.
10-18
19-23
27-24
28-55
Chapter: V Research Findings, conclusion and scope 5.
56-64
5
LIST OF TABLE S. No
Table Number
Page Number
1.
Table 4.1 Age
29
2.
Table 4.2 Gender
30
3.
Table 4.3 Marital Status
31
4.
Table 4.4 Occupation
32
5.
Table 4.5 Monthly Income
33
6.
Table 4.6 Family Income
34
7.
Table 4.7 Desi Ghee
35
8.
Table 4.8 Body Soap
36
9.
Table 4.9 Honey
37
10.
Table 4.10 Tooth paste
38
11.
Table 4.11 Shampoo
39
12.
Table 4.12 Hair oil
40
13.
Table 4.13 Herbal product
41
14.
Table 4.14 Company
42
15.
Table 4.15 Product usage
43
16.
Table 4.16 Satisfaction
44
17.
Table 4.17 Unique selling preposition
45
18.
Table 4.18 Availability
46
19.
Table 4.19 Competition
47
20.
Table 4.20 Comparison
48
6
21.
Table 4.21 Switching over
49
22.
Table 4.22 Reason to switch over:
50
23.
Table 4.23 Influenced
51
24.
Table 4.24 Role of advertisement
52
25.
Table 4.25 Purchases
53
26.
Table 4.26 Last purchases
54
27.
Table 4.27 Advertisement influenced
55
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LIST OF FIGURES S. No.
Figure number
Page Number
1.
Figure 4.1 Age
29
2.
Figure 4.2 Gender
30
3.
Figure 4.3 Marital Status
31
4.
Figure 4.4 Occupation
32
5.
Figure 4.5 Monthly income
33
6.
Figure 4.6 Family member
34
7.
Figure 4.7 Desi ghee
35
8.
Figure 4.8 Body soap
36
9.
Figure 4.9 Honey
37
10.
Figure 4.10 Tooth paste
38
11.
Figure 4.11 Shampoo
39
12.
Figure 4.12 Hair oil
40
13.
Figure 4.13 Herbal product
41
14.
Figure 4.14 Company
42
15.
Figure 4.15 Product usage
43
16.
Figure 4.16 Satisfaction
44
17.
Figure 4.17 Unique selling preposition
45
18.
Figure 4.18 Availability
46
19.
Figure 4.19 Competitors
47
20.
Figure 4.20 Comparison
48
21.
Figure 4.21 Switching over
49
8
22.
Figure 4.22 Reason to switch over
50
23.
Figure 4.23 Influenced
51
24.
Figure 4.24 Role of advertisement:
52
25.
Figure 4.25 Purchases
53
26.
Figure 4.26 Last purchases
54
27.
Figure 4.27 Advertisement influenced
55
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CHAPTER - I INTRODUCTION ABOUT THE TOPIC AND COMPANY PROFILE
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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, profits to customer and benefits to the stakeholders. 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, messages and other marketing mix elements. In understand the concept of buying we have the some of the key questions. They are: Why does the market buying?
Objective
Who does the market buying?
Organization
What does the market buying?
Objects
When does the market buying?
Occasions
Where does the market buying?
Outlets
How does the market buying?
Operations
Along with that there are two more questions that are also related with above. They are: How do the buyer’s characteristics influence the buying behavior? How does the buyer make purchasing decisions? These are some of questions that solutions help to predict the buying behavior.
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WAYS OF BUYING BEHAVIOUR According to the concept of marketing the buying behaviour 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 purpose. Like as shopkeepers, dealers, and retailers. BUYING ROLES IN BUYING BEHAVIOR In the buying behavior there are different roles played in each of consumer and business. Those are involved in the buying decisions. CONSUMER BUYING ROLES In the consumer buying there are different buying roles; i.e. Initiator: -- A Person who first suggest the idea of buying. Influencer: - A Person who influence the buying decision. Decider: - A Person who takes decisions regarding buying Buyer: - A Person who actually buys the products. User: - A Person who is the user of the product. BUSINESS BUYING ROLES In the business buying there are different buying roles; i.e. Approver: -- A Person who approves the idea of buying. influencer: -- A Person who influence the buying decision. Decider: -- A Person who takes decisions regarding buying Buyer: -- A Person who actually buys the products. User: -- A Person who is the user of the product.
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TYPES OF BUYING BEHAVIOR There is a great difference between the purchasing of a computer and a car. Buying decisions making varies with the type of buying decision. The types of buying behavior divided are separately divided as per of consumer and business buying. TYPES OF CONSUMER BUYING BEHAVIOR This is to be extensively divided in four types: 1. Complex Buying Behavior: -- when the consumer are highly involved in the purchase and aware of significant differences among brands. 2. Dissonance Reducing Buying Behavior: -- when the consumer are highly involved in the purchase but sees little differences among brands. 3. Habitual Buying Behavior: -- when the consumer are low involved in the purchase but sees absence of aware of differences among brands. 4. Variety Seeking Buying Behavior: -- when the consumer are low involved in the purchase but sees significant of differences among brands. TYPES OF BUSINESS BUYING BEHAVIOR This is to be extensively divided in four types: 1. Straight Rebuy: -- In this buyer approves the purchasing on the basis of the past buying records and satisfaction with suppliers. 2. Modified Rebuy: -- where the buyer wants to modify product specifications. Prices, delivery requirements. 3. New Task: -- when the buyer approves the purchasing of product for the first time by consisting of the good and efficient salesperson. So, that it’s the types of the buying behavior of consumer as well as business buyer.
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FACTOR AFFECTING THE BUYING BEHAVIOR There are various factors that affect the buying behavior on both consumer as well as business buying. FACTOR AFFECTING CONSUMER BUYING BEHAVIOR Cultural Factors Culture
Sub Culture
Personal factors Age Social Factors References Group Psychological Occupation Motivation Life Styles Family Personality
Perception
Social Class
BUYER
Roles and Statues Learning
FACTOR AFFECTING BUSINESS BUYING BEHAVIOR Environmental Economic
Organizational Objective
Political
Inter – Personal Authority
Policies Cost of Money
Status Procedures
Competition
Education
BUSINESS
Income
BUYER
Empathy Structure
Technological
Individual Age
So, these are the factors that affect the consumer as well as business buying behavior
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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. Worldwide, the Ayurvedic industry is put at $3 billion and is slowly gaining acceptance as an alternative system of medicine and health care, Naram said. 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.
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COMPANY PROFILE Patanjali Ayurved Patanjali Ayurved Limited is an Indian FMCG company, Acharya Balkrishna established 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 and ancient wisdom. Revenues Patanjali Ayurveda's annual turnover for the year 2014-15 increased to ₹2500 crore (US$370 million) as compared to previous turnovers of ₹1200 crore (US$180 million) (2013–14), ₹850 crore (US$130 million) (2012-13) [10][11][12][13][14] and ₹450 crore (US$67 million) (2011–12). Future Group which has tied up with Patanjali sells about ₹30 crore (US$4.5 million) worth of Patanjali products every month. It is valued at ₹13000 crore (US$1.9 billion) and some predict revenues of ₹5000 crore (US$740 million) for the fiscal 2015–16 Production Patanjali Food and Herbal Park at Haridwar is the main production facility operated by Patanjali Ayurved. 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 protectee of central paramilitary forces Products 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 manufacturing instant noodles.
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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 online channels. Defence organization DRDO entered into licensing agreements with Patanjali Ayurveda for transfer of technology. 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, digestives unit, juice plant etc. 2. Co-packing Facility-Tetra Pak and Volpack 3. Multi-fruit juice processing line 4. Nutraceutical Processing Line 5. Sale Outlets: Patanjali brand with national and international reach, more than 85,000 retail outlets-accessible to Patanjali products Employment Generation: 1. 2. 3. 4.
Currently PAL employs more than 6000 laborers in its processing activities. More than 400 Sales Staff. PAL has more than 300 technically qualified employees. PAL has provided more than 2.00 Lac indirect employment. 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. The following figures for the last three years of its working itself will tell the story of the Company’s achievements as well as public faith in the Company’s products: -
Financial Years Particulars
2009-2010(Rs.in Crores)
2010-2011 (Rs.in 2011-2012 (Rs.in Crores) Crores)
Sales
162.67
317.66
451.22
48.83
88.14
70.20
Profit Tax(PBT)
Before
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Financial Years 2009-2010(Rs.in Crores)
2010-2011 (Rs.in 2011-2012 (Rs.in Crores) Crores)
33.24
68.38
58.89
% of PBT of Sales
30.00
27.75
15.55
% of PAT of Sales
20.43
21.53
12.38
Particulars Profit Tax(PAT)
After
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.
Patanjali Ayurveda's annual turnover for the year 2014-15 increased to ₹2500 crore (US$ 370 million) as compared to previous turnovers of ₹1200 crore (US$ 180 million) (2013– 14), ₹850 crore (US$ 130 million) (2012-13) and ₹450 crore (US$ 67 million) (2011–12). Future Group which has tied up with Patanjali sells about ₹30 crore (US$ 4.5 million) worth of Patanjali products every month.
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CHAPTER -II LITERATURE REVIEW
19
Marketing through Spirituality: A Case of Patanjali Yogpeeth (kumar, 2014)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 data from various officials of Patanjali Yogpeeth through unstructured face-to-face interviews. The study revealed that yoga and pranayam are very effective tools in marketing through spirituality and influence the consumption behavior of masses. Factors Influencing Purchase of FMCG by Rural Consumers in South India: An Empirical Study (Ali, 2012)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 category in rural consumption. Companies marketing FMCG to rural consumers cannot 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 in South 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 (influencing factors). Influence of retailers’ recommendations has emerged as the most significant variable in the trust factor. According to the study, rural consumers in South India consider that usage of FMCG contributes to their lifestyle.
Consumer Behaviour (Choudhary, 2010)It is the study of when, why, how, and where people do or do not buy Product or business product. It blends elements from psychology, sociology, and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society. 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. A greater importance is also placed on consumer retention, customer relationship management,
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personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions Patanjali Ayurved injects new life into herbal market, helps rivals sell more personal care products (Neha Tyagi & Sagar Malviya, 2016)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 manager, IMRB Kantar World panel. Consumer Behavior towards packaging of FMCG products (kanika6759, 2009)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 researchers is to integrate packaging into an effective purchasing decision model, by understanding Consumer’s behavior towards the packaging of FMCG products. When 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 label information like usage instructions, contents, list of ingredients or raw materials, warnings for use and directives for care of product A Study on Consumer Behaviour towards FMCG Products among the Rural-Suburban HHs of Ernakulam (Joseph, 2014)The rural consumers are known to earn low income, have low level of literacy, low level of brand awareness, asymmetric information, inadequate communication and transportation facilities. The Rural markets and sub-urban markets are now expanding in Kerala with ever greater penetration index, as the growth seems stunted in the urban markets. In this study, Rural & suburban areas of Ernakulam with a sample size of 100 respondents. The study intends to identify the level of influence of various factors on the purchase of FMCG productssoaps &detergents among the rural/ semi urban consumers. The study emphasized that rural consumers gave more importance to the ‘quality’ of the FMCG-personal care brands they bought rather than the normative influences or social appeal vide celebrity endorsements in the mass media 21
Consumer Behavior Towards Over-the-Counter Herbal Products in India (Laturkar)In today’s era, development of an appropriate and effective marketing strategy requires an 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 implement these plans (e.g., by engaging in comparison shopping or actually purchasing a product). A Study of Consumer Perception Of Herbal Products In Bhopal (Yadav, 2015)The Indian herbal market is flooded with numerous well-known and recognized herbal brands. Vindhya Herbal is an initiative of Madhya Pradesh government to provide unadulterated ayurvedic products to the people and for generating gainful employment for the vulnerable and downtrodden section of the society. The study is to examine existing state of Vindhya Herbal in Bhopal, its birthplace. Besides, this study talks about other parameters like benefits/attributes consumer acquaintances with herbal products, awareness, preferential, source of knowledge, usage and attitude related to herbal products. The research design consisted of an exploratory phase followed by a descriptive cross-sectional, close-ended questionnaire-based survey in Bhopal. As the study has been conducted in a Hindi belt, the questionnaire was kept bilingual; Hindi and English. Sampling was done on the basis of two criteria; 1) such regions were selected where almost major herbal brands are available and 2) Respondents have used at-least one of the herbal brands. Only 23 percent consumers responded to have used Vindhya herbal. Those who have used Vindhya herbal have preference it, if available in a nearby store. Most of the respondents mentioned that herbal products are prepared from the natural ingredient, as a result faced no side effect. Purchase of herbal products primarily takes place on a monthly basis and use on a daily basis. Doctors, family members and mass media were reliable sources and the respondents trust on their recommendations for buying fresh herbal products. Desirability for further information was high among consumers related to herbal products.
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A study on consumer awareness, attitude and preference towards herbal cosmetic products with special reference to Coimbatore city (K.Gokila, 2015)Cosmetics and toiletries are not just the domain of women more body sprays, perfumes and other cosmetics and toiletries with rising demand from men, the Indian market is getting enlarged and many players are coming out with cosmetic products especially skin care products for women and men Globalization will certainly increase cosmetic products penetration and all professional shall equip themselves to exploit opportunities offered by this sector. This gives me an opportunity to work on with endeavor focusing on the consumer perception and satisfaction of women towards cosmetics with special reference to Herbal Products. The primary objective of this study is to understand the consumer perception and satisfaction studying the awareness of the products within the consumers and the number of consumers who consumes the Herbal Cosmetics.
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CHAPTER-III RESEARCH OBJECTIVE/
RESEARCH DESIGN/ METHODOLOGY
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RESEARCH OBJECTIVE The objectives of a research project summarize what is to be achieved by the study. These objectives should be closely related to the research problem. The general objective of a study states what researchers expect to achieve by the study in general terms. It is possible (and advisable) to break down a general objective into smaller, logically connected parts. These are normally referred to as specific objectives. Specific objectives should systematically address the various research questions. They should specify what you will do in your study, where and for what purpose.
1- To study the buying pattern of purchasing Patanjali Ayurved products. . 2- To determine reason why people are using Patanjali Ayurved products
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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 the logic behind them. Research: The word research is composed of two syllables, re and search. “Re” is a prefix meaning again, anew or over again “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 investigation in some field of knowledge, undertaken to establish facts or principles.
Research Process: Steps in Research Process: 1. Formulating the Research Problem 2. Extensive Literature Review 3. Developing the objectives 4. Preparing the Research Design including Sample Design 5. Collecting the Data 6. Analysis of Data 7. Generalisation and Interpretation 8. Preparation of the Report or Presentation of Results-Formal writes ups of Conclusions reached. Research Design: A research Design is a complete scheme or programme of the research. It includes an outline of what the investigator will do from research problem formulation to final analysis of data. Sources of Data:
Primary Data
Secondary Data
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Primary data:
These are those which are collected a fresh (again but in a new or different way) and for the first time and thus happen to be original in character and known as Primary data.
It is based on primary source of information. Secondary data : It means that are already available that is they refer to the data, which have already been collected and analyzed by someone else for its own use and later the same data is used by a different user or person. It is based on secondary source of information RESEARCH SOURCE Research resources are usually thought of as primary sources and secondary sources. Primary sources . Secondary sources,
RESEARCH DESIGN
Type of research – Descriptive
Data collection Technique – Questionnaire (survey)
Sampling – 1- Sample area - Bareilly (city) 2-Sample size – 50 people 3-Sample technique – Random Sampling 4-Sample unit – Male/ Female, Age group
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CHAPTER -IV DATA ANALYSIS AND INTERPRETATION
.
28
1. Age
Response Below 20 21-30 30-40 Above 40 Total
Data 9 29 9 3 50
Percentage 18% 58% 18% 6% 100%
Table 4.1 Age
6%
18%
18%
58%
Below 20
21-30
30-40
Above 40
Figure 4.1 Age 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
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2. Gender Response
Data
Percentage
Male
28
56%
Female
22
44%
Total
50
100%
Table 4.2 Gender
44%
56%
Male
Female
Gender: Figure 4.2
INTERPRETATION
The following data shows that there were 56% of male and the female were 44%.
30
3. Marital Status
Response Married Unmarried Total
Data 15 35 50
Percentage 30% 70% 100%
Table 4.3 Marital Status
30%
70%
Married
Unmarried
Figure 4.3 Marital Status
INTERPRETATION
The following data shows that there were 30% of married consumers where as 70% of them were unmarried.
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4. Occupation Response
Data
Percentage
Student House wife Employed Business Total
35 2 9 4 50
70% 4% 18% 8% 100%
Table 4.4 Occupation
8% 18%
4% 70%
Student
House wife
Employed
Business
Figure 4.4 Occupation
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.
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5. Monthly Income Response
Data
Percentage
5000 5000-10000 10000-20000 Above 20000 Total
12 5 11 22 50
24% 10% 22% 44% 100%
Table 4.5 Monthly income
24% 44%
10%
22%
5000
5000-10000
10000-20000
Above 20000
Figure 4.5 Monthly income
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 1000020000 and 10% of them earn between 5000-10000.
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6. Number of family members Response
Data
Percentage
2 2-4 4-6 Above 6 Total
2 26 18 4 50
4% 52% 36% 8% 100%
Table 4.6 Family members
8%
4%
36% 52%
2
2 to 4
4 to 6
Above 6
Figure 4.6 Family members
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 above 6 and 8% have just 2 members in the family.
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7. The frequency of purchase for the Desi Ghee Response Always Often Sometimes Never Total
Data 11 16 11 12 50
Percentage 22% 32% 22% 24% 100%
Table 4.7 Desi ghee
22%
24%
22% 32%
Always
Often
Sometimes
Never
Figure 4.7 Desi ghee
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%.
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8. The frequency of purchase for the Body Soap
Response Always Often Sometimes Never Total
Data 26 10 8 6 50
Percentage 52% 20% 16% 12% 100%
Table 4.8 Body soap
12% 16% 52%
20%
Always
Often
Sometimes
Never
Figure 4.8 Body soap
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.
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9. The frequency of purchase for the honey Response Always Often Sometimes Never Total
Data 14 15 15 6 50
Percentage 28% 30% 30% 12% 100%
Table 4.9 Honey
12% 28%
30%
30%
Always
Often
Sometimes
Never
Figure 4.9 Honey
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.
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10. The frequency of purchase for the tooth paste
Response Always Often Sometimes Never Total
Data 29 10 7 4 50
Percentage 58% 20% 14% 8% 100%
Table 4.10 Tooth paste
8% 14%
58% 20%
Always
Often
Sometimes
Never
Figure 4.10 Tooth paste
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.
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11. The frequency of purchase for the tooth shampoo Response Always Often Sometimes Never Total
Data 23 15 10 2 50
Percentage 46% 30% 20% 4% 100%
Table 4.11 Shampoo
4% 20% 46%
30%
Always
Often
Sometimes
Never
Figure 4.11 Shampoo
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.
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12. The frequency of purchase for the hair oil Response Always Often Sometimes Never Total
Data 20 19 6 5 50
Percentage 40% 38% 12% 10% 100%
Table 4.12 Hair oil
10% 12%
40%
38%
Always
Often
Sometimes
Never
Figure 4.12 Hair oil
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.
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13. Do you use Ayurvedic/herbal products?
Response
Data
Percentage
Yes
50
100%
No
0
0%
Total
50
100%
Table 4.13 Herbal products
0%
100%
Yes
no
Figure 4.13 Herbal products:
INTERPRETATION From the following data it is concluded that out of 50 people all of them use Ayurvedic or herbal products in one or the other way.
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14. Ayurvedic Product of which company do you use??
Response
Data
Percentage
Patanjali
26
52%
Dabur
14
28%
Himalaya
10
20%
Total
50
100%
Table 4.14 Company
20%
52% 28%
Patanjali
Dabur
himalaya
Figure 4.14 Company
INTERPRETATION The data shows that 52% people use Patanjali products and 28% of them use Dabur where as 20% of them use Himalaya
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15. Do you use Patanjali Ayurved Products? Response
Data
Percentage
Yes
44
88%
No
6
12%
Total
50
100%
Table 4.15 Product usage
12%
88%
Yes
no
Figure 4.15 Product usage
INTERPRETATION The following data shows that 88% of them have used Patanjali Ayurved products and 12% have never use Patanjali Ayurved products.
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16. Are you Satisfied with the products of Patanjali Ayurved?
Response Yes
Data 29
Percentage 58%
Sometimes No
18 3
36% 6%
Total
50
100%
Table 4.16 Satisfaction
3
18 58%
Yes
Sometimes
no
Figure 4.16 Satisfaction
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
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17. What are the unique selling prepositions of Patanjali Ayurved?
Response Quality Quantity Price Location Other Total
Data 18 6 23 2 1 50
Percentage 46% 12% 36% 4% 2% 100%
Table 4.17 Unique selling preposition
4%
2% 36%
46%
12%
Quality
Quantity
Price
Location
Other
Figure 4.17 Unique selling preposition
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.
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18. Is Patanjali Ayurved easily available in your nearby?
Response Under 1 Km 1-2 Km 2-4 Km More Than 4 Km Total
Data 12 21 10 7 50
Percentage 24% 42% 20% 14% 100%
Table 4.18 Available
14%
24%
20%
42%
Under 1 km
1-2 km
2-4 km
More than 4 km
Figure 4.18 Available
INTERPRETATION The data shows the availability of Patanjali Ayurved to the customer 24% of them have the store under 1 km, 42% of them have it 1-2 km, 20% of them have them 2-4 km away where as 14% have more than 4 km away.
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19. Do you think Patanjali Ayurved can be Triumphant over all its Competitors?
Response
Data
Percentage
Yes
20
40%
No
17
34%
Haven’t Thought About That
13
26%
Total
50
100%
Table 4.19 Competition
26% 40%
34%
Yes
No
Haven’t thought about that
Figure 4.19 Competition
INTERPRETATION This data shows that nearly 40% of the consumers believe that Patanjali Ayurved can be a triumphant over its competitors, 34% says No, where as 26% haven’t thought of that.
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20. Is Patanjali Ayurved products are better than other branded FMCG products?
Response
Data
Percentage
Yes
24
48%
No
12
24%
Haven’t Thought About That
14
28%
Total
50
100%
Table 4.20 Comparison
28% 48%
24%
Yes
No
Haven’t thought about that
Figure 4.20 Comparison 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.
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21. Would you like to Switch to other brand if you get some promotional schemes with that brand?
Response
Data
Percentage
Yes
32
64%
No
18
36%
Total
50
100%
Table 4.21 Switching over
36%
64%
Yes
No
Figure 4.21 Switching over
INTERPRETATION
When asked if the consumers would switch to the other brand 64% of them said yes and 36% of them said no.
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22. Give reason for the same.
Response Cost Quality Satisfaction Discounts More Benefits Total
Data 4 13 15 15 3 50
Percentage 8% 26% 30% 30% 6% 100%
Table 4.22 Reasons to switch over
6%
8%
30%
26%
30%
Cost
Quality
Satisfaction
Discounts
More benefits
Figure 4.22 Reasons to switch over
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% with more benefits.
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23. Who influenced your preference for Patanjali Ayurved products? Response Family Friends Advertisement Self Total
Data 12 17 18 3 50
Percentage 24% 34% 36% 6% 100%
Table 4.23 Influenced
6% 24%
36%
34%
Family
Friends
Advertisement
Self
Figure 4.23 Influenced INTERPRETATION
Data shows that 24% of them were influenced by their family, 34% friends, 36% advertisement and 6% were self-influenced.
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24. Does Advertisement play any role towards brand preference?
Response
Data
Percentage
Yes
42
84%
No
8
16%
Total
50
100%
Table 4.24 Role of advertisement
16%
84%
Yes
no
Figures 4.24 Role of advertisement:
INTERPRETATION
This data shows the role of advertisement towards creating brand preference- 84% says yes where as 16% does not have any effect of advertisement.
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25. Have you purchased any Patanjali Ayurved product recently after coming across any advertisement? Reference
Data
Percentage
Yes
37
74%
No
13
26%
Total
50
100%
Table 4.25 Purchases
26%
74%
Yes
no
Figure 4.25 Purchases 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.
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26. When did you last time purchased any Patanjali Ayurved product?
Response
Data
Percentage
Within Week
11
22%
1 Month
27
54%
1-4 Month
5
10%
Above 4 Month
7
14%
Total
50
100%
Table 4.26 Last purchases
14%
22%
10%
54%
Within week
1 month
1-4 month
Above 4 month
Figure 4.26 Last purchases INTERPRETATION
The data shows about the last time purchasing of any Patanjali Ayurved 22% says within a week, 54% 1 months, 10% 1-4 month where as 14% above 4 months.
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27. In what way advertisement influenced you?
Response Better Recall Positive Impression Interest No Impact Total
Data
Percentage
6 26 14 4 50
12% 52% 28% 8% 100%
Table 4.27 Advertisement influenced
8%
12%
28%
52%
Better Recall
Positive Impression
Interest
No Impact
Figure 4.27 Advertisement influenced 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.
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CHAPTER – V RESEARCH FINDINGS
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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 Bareilly region, it is found that almost 100% of hem use Ayurvedic products.
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 brand and remain bran loyal to Patanjali Ayurved.
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 6% of them will switch due to other benefits.
52% of the consumers prefer Patanjali Ayurved, 28% of the consumers use dabur and 20% use Himalaya.
According to the survey- 88% of the consumers have used Patanjali Ayurved and 12% have not used Patanjali Ayurved product.
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.
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.
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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.
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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 Bareilly. 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 market and have a positive impression in the minds of consumer.
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SCOPE
The study can be done on the consumption pattern of Ayurvedic/ herbal both in the rural areas as well as urban areas.
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 competitive with the other FMCG company’s product.
More Patanjali mega store or Patanjali Chikitsalaya are expected to be opened in urban as well as rural areas.
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.
.
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BIBLIOGRAPHY Ali, M. A. (2012). Factors Influencing Purchase of FMCG by Rural Consumers in. Dubai, UAE : Md. Abbas Ali. Choudhary, P. (2010). Fmcg. bangalore: Prince Choudhary. Joseph, A. a. (2014). A Study on Consumer Behaviour towards FMCG Products among the Rural-Suburban HHs of Ernakulam. Coimbatore: Anilkumar N. K.Gokila, M. R. (2015). A study on consumer awareness,attitude and preference towards herbal cosmetic. Tamilnadu: M.Banu Rekha and K.Gokila . kanika6759. (2009). Consumer Behaviour towards packaging of FMCG products. kanika6759. kumar, v. (2014). Marketing through Spirituality: A Case of Patanjali Yogpeeth. Roorkee: vinod kumar. Laturkar, V. N. (n.d.). Consumer Behaviour Towards Over-the-Counter. Global Vision Publishing House. Neha Tyagi & Sagar Malviya. (2016). Patanjali Ayurved injects new life into herbal market, helps rivals sell more personal care products . The Economic Times. Yadav, M. I. (2015). A STUDY OF CONSUMER PERCEPTION OF. bhopal: Md. Irshad Ali and Manmohan Yadav.
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APPENDICES QUESTIONNAIRE
TOPIC: Consumer Buying behavior towards Patanjali Ayurved in Bareilly Region. 1. Personal Details a) Name b) Location c) Age I. Below 20 II. 21-30 years III. 31-40 years IV. Above 40 d) Gender I. Male II. Female e) Marital Status I. Married II. Unmarried f) Occupational Status I. Student II. House Wife III. Employed IV. Business g) Monthly Income I. Up to 5000 II. 5000-10000 III. 10000-20000 IV. Above 20000 h) Number of members in family I. 2 II. 2-4 III. 4-6 IV. Above 6 2. Do you use Ayurvedic/Herbal Products I. Yes II. No If yes Proceed Further, if no please give reason to it. _______________________________________________________________ _______________________________________________________________
3.
Ayurvedic Product of which company do you use?? I. Patanjali II. Dabur III. Himalaya 62
4. Mention the frequency of purchase for the following products. Particulars Always Often Sometimes
Never
Desi Ghee Body Soap Honey Tooth paste Shampoo Hair Oil 5. Do you use Patanjali Ayurved Products III. Yes IV. No If yes Proceed Further, if no please specify reason to it. _______________________________________________________________ _______________________________________________________________ 6. Are you Satisfied with the products of Patanjali Ayurved? I. Yes II. Some times III. No 7. What are the unique selling prepositions of Patanjali Ayurved? I. Quality II. Quantity III. Price IV. Location V. Other 8. Is Patanjali Ayurved easily available in your nearby? I. Under 1 KM II. 1-2 KM III. 2-4 KM IV. More than 4 km 9. Do you think Patanjali Ayurved can be Triumphant over all its Competitors? I. Yes II. No III. Haven’t thought about that 10. Is Patanjali Ayurved products are better than other branded FMCG products? I. Yes II. No III. Haven’t thought about that 63
11. Would you like to Switch to other brand if you get some promotional schemes with that brand? I. Yes II. No III. 12. Give reason for the same. I. Cost II. Quality III. Satisfaction IV. Discounts V. More benefit 13. Who influenced your preference for Patanjali Ayurved products? I. Family II. Friends III. Advertisement IV. Self 14. Does Advertisement play any role towards brand preference? I. Yes II. No 15. Have you purchased any Patanjali Ayurved product recently after coming across any advertisement? I. Yes II. No 16. When did you last time purchased any Patanjali Ayurved product? I. Within a week II. 1 month III. 1-4 month IV. Above 4 month 17. In what way advertisement influenced you? I. Better recall II. Positive impression III. Interest IV. No impact 18. State your suggestion if any. _____________________________________________________________________ _____________________________________________________________________
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