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PROJECT REPORT ON

“COMPARATIVE ANALYSIS OF CUSTOMERS BEHAVIOUR TOWARDS


DIFFERENT FINACIAL AVENUES ”

(IN CONTEXT TO ZUARI FINSERV PRIVATE LIMITED)

Submitted to KCL-IMT(PTU)

In partial fulfillment of the requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by Supervisor

Name of the Student:- Sukhdeep Sabharwal Name: Kanwar Sartaj

Roll No. 1718417 Designation: Assistant Prof.

DEPARTMENT OF MANAGEMENT

KCL-IMT JALANDHAR BATCH YEAR (2018-19)

Table of Contents
S. Chapter Page No.
No
Acknowledgement, Company Certificate, Student Declaration,
Faculty Declaration.
3-5

1. Introduction to Company

7-19

2. Introduction to Research Problem

20-25

3. Need, Objective, Scope of the Study

26-28

4. Research Design

28 -30

5. Data Analysis

52-62

6. Findings, Limitations, Suggestions ,Conclusion, &


Recommendations
63-66

References and Bibliography

66-67

Appendix (Questionnaire, Glossary of Terms, Abbreviations,


Documents, Performa, Financial statements etc.)
67-69

STUDENT DECLARATION

I “Sukhdeep Sabharwal” hereby declare that I have undergone my summer training at ZUARI FINSERV
PRIVATE LTD from 23rd June to 6TH July I have completed a research project titled “COMPARATIVE
ANALYSIS OF CUSTOMERS BEHAVIOUR TOWARDS DIFFERENT FINACIAL AVENUES” under the
guidance of Mr Varun Sehgal
Further I hereby confirm that the work presented herein is genuine and original and has not been published
elsewhere.

______________________________
( Student Name and Signature )

FACULTY DECLARATION

i hereby declare that Ms.___________________________ of MBA ( 2) has undergone his /her summer
training under my periodic guidance on the project titled “COMPARATIVE ANALYSIS OF CUSTOMERS
BEHAVIOUR TOWARDS DIFFERENT FINACIAL AVENUES”

Further I hereby declare that the student was periodically in touch with me during his/her training period and the
work done by student is genuine and original
___________________________________________

(Signature of Supervisor )

ACKNOWLEDGEMENT

I would like to express my sincere gratitude to my company guide Mr. Varun Sehgal Area Manager
Zuari Finserv private Ltd., Jalandhar for guiding me throughout my summer internship. His
encouragement, time and effort are greatly appreciated.

I would then like to thank my faculty guide, Kanwar Sartaj for all his valuable inputs and constant
support towards me throughout my project and providing me an opportunity to learn outside the class
room. It was a truly wonderful learning experience.
I would like to thank all my friends who did their SI from Zuari Finserv Private Ltd. for their valuable
suggestions and support
1. INTRODUCTION TO THE STUDY

PATANJALI AYURVEDA

PATANJALI AYURVEDA LIMITED, a Company registered under the Company’s Act, 1956
having its Registered Office at D-26, Pushpanjali, Bijwasan Enclave, New Delhi – 110061 and
Works: 1. Unit-I at:D-38, Industrial Area, Haridwar, Uttarakhand; 2.Unit-II at :YOGPEETH,
Maharishi Dayanand Gram, Delhi Highway, Haridwar; and 3.Unit-III:Vill-Padartha, Haridwar,
Uttarakhand, India.

The Company was originally formed as a Private Limited Company on 13th January, 2006 and
subsequently converted into Public Limited Company on 25th June, 2007. Presently, the Board
of Directors of the Company is managed by Sri Acharya BAL KRISHNAJI as its Managing
Director and Swami Muktanandji and Sri Ajay Kumar Arya, are the Directors of the Company.

The Memorandum and Articles of Association of the Company, contains:

To manufacture, process, refine, formulate, import, export and deal in all kinds of Ayurvedic
and herbal Products, Life Savings Drugs etc. apart from so many other related objects. The
concept for forming this Company was to “link the rising destiny of millions of rural masses on
the one hand and many more suffering and leading unhealthy urban life style on the other”.

The View of the Respected Swami Ramdevji, the renowned YOGA GURU and Sri Acharya
Balkrishnaji, made the concept into writing through formation of the Company “PATANJALI
AYURVEDA LIMITED”. PATANJALI AYURVEDA Ltd is a company that functions like all
other companies under the Rules and Regulations of the Company Law Affairs and several other
Laws applicable for these type of Industries.

At micro level the challenge is no less tough. Along with PRANAYAM, the wisdom of our
ancient sages, the organic food products and herbal medicines churned out of this unit, trying to
undertake the threats to fight out the dreaded and deadly diseases like CANCER and AIDS.
Claim for having found a lasting cure for many other relatively more excessive but equally
tormenting diseases like Diabetes, Arthritis and Thyroid is already entrenched with thousands of
patients cured with fulfillment.

Superior quality of our products at a fair price is not the only concern that we have. Getting our
patients rid of their diseases is again too limited a goal for us to seek. A holistic approach to
improve the quality of life of all beings, world over, is the purpose behind our being.

Getting eliminate the food we consume of the pollutants in the form of poisonous pesticides and
chemical fertilizers that our farmers use, is a goal that we strive to accomplish by providing our
people the eatables that are cultivated in organic and natural manures and pest repellents.

The bringing of Ayurvedic medicines along with Pranayama, Asnaas, pure food and natural
drinks is a package perhaps the world was waiting for long, for the two saints in the form of
SWAMI RAMDEVJI and ACHARYA BALKRISHNAJI,

Units of Patanjali Ayurveda Limited:

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.

Co-packing facility-Tetra Pak

Multi-fruit juice processing line

Neutraceutical Processing Line

Sale Channels: Patanjali brand with national and international reach, more than 85,000 retail
channels-accessible to Patanjali products

Employment Generation:

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.


1.1.OBJECTIVE OF THE STUDY

The main objective to study this project is to know about the different strategies of Patanjali
Ayurveda.

The main objectives in the mind:-

1. To study, whether Patanjali Ayurveda products are genuine or not.


2. To study, why people prefer Patanjali Ayurveda products.
3. To study, whether customers are satisfied using Patanjali products.
4. To study, whether the huge rise of indigenous Patanjali products good for our country.
5. To study, whether is it good to buy Patanjali products for our Indian economy?
1.2.DEFINITION OF TERMS

1.2.1. MARKETING

Marketing is the subject and management of exchange relationships. The American Marketing
Association has defined marketing as "the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large."

The techniques used in marketing include choosing target markets through market analysis and
market segmentation, as well as understanding methods of clout on the consumer behavior.

From a societal point of view, marketing provides the link between a society's material
requirements and its economic patterns of response. This way marketing satisfies these needs and
wants through the advancement of exchange processes and the building of long-term
relationships.

In the case of nonprofit organization marketing, the aim is to deliver a message about the
organization's services to the applicable audience. Governments often employ marketing to
communicate messages with a social aspiration, such as a public health or safety message, to
citizens.

1.2.2. MARKETING STRATEGIES

A marketing strategy is a process or model to allow a company or organization to focus limited


resources on the best opportunities to increase sales and thereby accomplish a sustainable
competitive advantage.

Two major troop of marketing strategies can be distinguished: (a) Strategies, which describe how
to clout the relevant market. On the other hand there are (b) Strategies, which describe, to which
extend an organization employs “power” or “force” to tackle market related issues.
For (a) 4 different types can be differentiated:

Segment strategies: Which market in terms of product/customer-combinations will be managed?


Which products and /or services will be offered to which customer segment?

Strategies for market stimulation: Which marketing instruments will be employed in order to
develop certain preferences?

Strategies for market itemization: Which fundamental market items (in terms of structures) are
useful? Does the organization employ mass marketing or segment marketing techniques? Does
the organization cover the entire market or “only” parts of this market?

Strategies for market areas: Which areal dimensions should be used to implement a strategy?

For (b) 3 types can be distinguished, too:

Pull back strategy: to make a strategic withdrawal (in military terms: a fall back strategy)

Assert strategy: to assert and to extend a certain position

Competition strategies.

1.2.3. MARKETING MIX

Marketing involves a number of activities. To begin with, an organization may decide on its
target group of customers to be served. Once the target group is decided, the product is to be
placed in the market by providing the appropriate product, price, distribution and promotional
efforts. These are to be combined or mixed in an appropriate proportion so as to achieve the
marketing goal. Such mix of product, price, distribution and promotional efforts is known as
‘Marketing Mix’. According to Philip Kotler “Marketing Mix is the set of controllable variables
that the firm can use to influence the buyer’s response”. The controllable variables in this context
refer to the 4 ‘P’s [product, price, place (distribution) and promotion]. Each firm strives to build
up such a composition of 4‘P’s, which can create highest level of consumer satisfaction and at
the same time meet its organizational objectives. Thus, this mix is assembled keeping in mind
the needs of target customers, and it varies from one organization to another depending upon its
available resources and marketing objectives. Let us now have a brief idea about the four
components of marketing mix.

Product: Product refers to the goods and services offered by the organization. A pair of shoes, a
plate of dahi-vada, and a lipstick, all are products. All these are purchased because they satisfy
one or more of our needs. We are paying not for the tangible product but for the benefit it will
provide. So, in simple words, product can be described as a bundle of benefits which a marketer
offers to the consumer for a price. While buying a pair of shoes, we are actually buying comfort
for our feet, while buying a lipstick we are actually paying for beauty because lipstick is likely to
make us look good. Product can also take the form of a service like an air travel,
telecommunication, etc. Thus, the term product refers to goods and services offered by the
organization for sale.

Price: Price is the amount charged for a product or service. It is the second most important
element in the marketing mix. Fixing the price of the product is a tricky job. Many factors like
demand for a product, cost involved, consumer’s ability to pay, prices charged by competitors
for similar products, government restrictions etc. have to be kept in mind while fixing the price.
In fact, pricing is a very crucial decision area as it has its effect on demand for the product and
also on the profitability of the firm.

Place: Goods are produced to be sold to the consumers. They must be made available to the
consumers at a place where they can conveniently make purchase. Woolens are manufactured on
a large scale in Ludhiana and you purchase them at a store from the nearby market in your town.
So, it is necessary that the product is available at shops in your town. This involves a chain of
individuals and institutions like distributors, wholesalers and retailers who constitute firm’s
distribution network (also called a channel of distribution). The organization has to decide
whether to sell directly to the retailer or through the distributors/wholesaler etc. It can even plan
to sell it directly to consumers. The choice is guided by a host of factors about which you will
learn later in this chapter.

Promotion: If the product is manufactured keeping the consumer needs in mind, is rightly priced
and made available at outlets convenient to them but the consumer is not made aware about its
price, features, availability etc., its marketing effort may not be successful. Therefore promotion
is an important ingredient of marketing mix as it refers to a process of informing, persuading and
influencing a consumer to make choice of the product to be bought. Promotion is done through
means of personal selling, advertising, publicity and sales promotion. It is done mainly with a
view to provide information to prospective consumers about the availability, characteristics and
uses of a product. It arouses potential consumer’s interest in the product, compare it with
competitors’ product and make his choice.

2. COMPANY PROFILE

2.1.PATANJALI AYURVEDA LTD.

Introduction:

Patanjali Ayurveda Kendra Ltd was officially inaugurated by Pram Yoga Rishi Swami
Ramdevji & Ayurveda Shiromani Rishikalpa Acharya Shree Balkrishnaji on 27 September 2007
(2064/6/10 B.S.) and started its operation as an Patanjali Ayurveda Kendra Ltd at swoyambhu,
Katmandu, Nepal with the ultimate aim of providing holistic, natural and effective Ayurveda
treatment.

Profile:

Establishing Date 27 September2007

Company Patanjali Ayurveda Kendra Pvt.Ltd.


Promoters Mr. Babukaji Shrestha, President

Mr. Raju Shrestha, Managing Director

Mr. Pawman Subedi, Director

Type of Business Sole Distributor of Ayurvedic Product of Divya Pharmacy ,


Divya Yoga Sadhana, Divya Prakashan& Patanjali Ayurveda
Ltd., Haridwar, India

Head Office Patanjali Ayurveda Kendra Pvt.Ltd

Swotantramargh,Swoyambhu
Chakra path, Kathmandu, Nepal

Tel: +977-1-4674666 / 4674777

Fax No.: +977-1-4033557

Email: patanjali@wlink.com.np / Patanjali@mail.com.np

www.patanjaliayurveda.com

Number of employees
Kathmandu Office 25 Nos.

Butawal Office 7 Nos.

Suppliers Divya Pharmacy , Haridwar, India


Divya Yoga Sadhana, Haridwar, India
Divya Prakashan, Haridwar, India
Patanjali Ayurveda Ltd., Haridwar, India

Bank Details
Name Bank of Katmandu

Address Head Office / Thamel Branch

Swift code BOKLNPKA

Beneficiaries Details
Name Patanjali Ayurveda Kendra Pvt.Ltd
Address Swoyambhu, Kathmandu
A/C Number 470000061438 / 060100061438

Govt. Register Company Registrar Office Tripureshower


On 2063.08.15 BS. Reg. No. 42691.

Tax office on 2063.08.25 BS.


PAN/VAT No. 302445329.

Division Of Drug Administration


On 2063.10.19 BS. Reg. No. 17243.

Division Of Ayurvedic Administration


On 2065.01.30 BS. Reg.No. 1789

PRODUCT CATALOGUE
TOTAL INCOME COMPOSITION OF PATANJALI PRODUCTS AND THEIR
CHALLENGES

This diagram shows the income composition of patanjali Ayurveda, which shows that 21% of
income is generated from health care ayurvedic products of patanjali, 40% of total income
generated by patanjali is from food and beverages and around 39% of share of income is
generated from cosmetics and home care products of patanjali.

Challenges
• HUL and Dabur focusing back on Herbal
• Late entrant to Advertising game
• Noodle: a risky proposition?
Scaling up and Global expansion
RAMDEV EXPANDS EMPIRE BEYOND YOGA TO FMCG, BUSSINESS POISED TO
TOUCH RS. 2,000cr THIS FISCAL YEAR.

Currently, Patanjali is present in almost all categories of personal care and food products --
soaps, shampoos, dental care, balms, skin creams, biscuits, ghee, juices, honey, Atta, mustard oil,
masala, sugar and much more. Going by current turnover projections of Rs 2,000 crore,

This is despite the fact that most of Patanjali's products are priced lower than its competitors.
What gives the company an edge is its very low expenses on advertisements. In comparison,
leading FMCG companies spend about 20-30% of their sales on advertisements.

With the Patanjali brand's growing reach and popularity among consumers, it's now being
discussed in corporate boardrooms as well. This is in sharp contrast to its quiet beginning in
2007. As the demand for his products grew, Baba Ramdev realized the huge scope within the
FMCG sector and started building the range, taking on deep-pocketed multinationals.
2.2.MISSION AND VISION OF PATANJALI AYURVEDA

MISSION:-

1. To reach the great heights


2. To restart the swadeshi movement
3. To produce good quality products at cheaper rates
4. To introduce Indian Ayurveda to this modern world
5. To crack the maximum market share.

VISION:-

1. To be a top Ayurveda company among all MNC’s


2. To Re-introduce the Indian Ayurveda
3. To crack the world’s attraction to our India
4. To work for the welfare of Humanity
5. To reinvent our traditional knowledge of Yoga and Ayurveda
2.3.MARKETING MIX OF PATANJALI AYURVEDA

Founded in 2006 by Acharya BAL Krishna and Baba Ramdev, Patanjali Ayurveda is an Indian
FMCG Company. Patanjali Ayurveda happens to be the fastest growing FMCG Company in
India. Patanjali Ayurveda imports herbs from Himalayas Nepal.

Patanjali is manufacturing its products in Nepal, working under the brand name of Nepal
Gramudhyog. Patanjali Ayurveda is the India’s fastest growing FMCG Company is valued at
3000 Crore and generated a revenue of 5000 Crore for the fiscal year of 2015-16.

Hindustan Uniliver and P&G are the FMCG companies, whose market share has been potentially
affected by Patanjali. P&G and Hindustan Uniliver are on back foot and trying to pull customers
back by providing huge discounts and remarkable offers.

PRICE
PRODUCT Value Based Pricing
All Existing Products +
Herbal Products to treat Alignment of Cost,
Cough & Cold Customer &
Competitors

PLACE PROMOTION
Franchisee Stores,
Super/Hyper markets & Yoga Shivir to create
Online Marketplace awareness, YouTube
Channel, Social Media to
(like souq.com, target GULF (MENA)
desertcart.ae)
PRODUCTS IN THE MARKETING MIX OF PATANJALI AYURVEDA

Baba Ramdev is steadily pushing Indian people to start using Indian brands and save the
economic growth of the company. Patanjali is planning to take over all reputed brands dealing in
beverages and foods.

The service (yoga) that Baba Ramdev is selling is the product.

The product "Pranayama" is well suited for all irrespective of class, creed, culture and hence this
success.

Swamiji's unique contribution has been to lead a healthy life through the practice of simple
breathing exercises.

Understand and meet consumers' needs and wants.

The ambiance of patanjali yogpeeth is world class.

Swami Ramdev's Divya Medicines are claimed to be one hundred percent natural, no or very
little side effects.

Medicines are available at a very low cost.

Medicines can cure all the diseases from a simple cold to cancer.

Products where Patanjali is present and beating competition are:-

Dabur Honey: Patanjali Ayurveda is providing people with option to buy quality honey at around
30% lesser price than Dabur.

Colgate: Patanjali Ayurveda is preaching how Colgate cheated people in early days. And how
Ayurveda is the best way to treat your gums and your teeth.

Patanjali Noodles: Patanjali Noodles rose to fame while Maggi was away from the market and
has done quite damage to Maggi, which once was the king of Noodle’s market.
PRICING IN THE MARKETING MIX OF PATANJALI AYURVEDA

Developing an effective pricing strategy remains the most important and difficult part of the
marketing process.

For instance, a nominal 1 per cent increase in price realization will boost net income by 6.40 per
cent for Coca-Cola and 28.70 per cent for Philips.

Baba Ramdev's fees of Pranayama is cheap in compare to other medical treatment.

This is the cheapest and the only complete cure to most of the so called incurable diseases like
diabetes, cancer, HIV & AIDS too.
PLACE IN THE MARKETING MIX OF PATANJALI AYURVEDA

Patanjali Ayurveda is India’s fastest growing FMCG Company but it is not stopping it from
spreading its wing to neighboring countries like Nepal. Patanjali has a manufacturing unit in
Nepal. Patanjali also imports herbs from Himalayas in Nepal; the well-entrenched trade relation
is helping Patanjali expand its wings in Nepal with great ease.

With the growing outreach in India and Nepal, Baba Ramdev surely will be aiming to overtake
market in lot of other countries. With impressive revenue of 5000 Crores.

In India, 1000’s of stores are now selling Patanjali products, and these stores are exclusively
selling Patanjali, making the local retailer quake. The penetration levels will only rise further as
the margins in the product are good too.
PROMOTION IN THE MARKETING MIX OF PATANJALI AYURVEDA

Patanjali Ayurveda goes with the Slogan “Prakriti ka Ashirwad”. Well, Patanjali Ayurveda has
acquired the requisite fame and popularity among people because of the globally recognized
Yoga Guru, Baba Ramdev. This brand ambassador of Patanjali is single handedly responsible for
the success of the brand. His contribution to people’s life through Yoga is incredible hence
people felt aligned towards him when he launched his very own Indian FMCG Company.

It is a well-entrenched fact that advertising affects consumers.

Baba Ramdev has hit both the opinions as he is advertising and at the same time not advertising.

In the year 2002 when Aastha television channel started airing Baba Ramdev's yogic classes;
overnight, Baba Ramdev became a sensation he had hundreds of followers who morphed into
thousands.

Millions around the country follow his programed religiously and use Ayurvedic medicines
prescribed by him.

His yoga sessions were beamed live into 170 countries.

Baba Ramdev's pack one DVD, two Video CDs written three books on Yoga, Pranayama Herbal
Remedies and Magazines are available.

He has mastered the art of mass customization and practices so that each individual feels that he
is talking to him individually.
2.4.SWOT ANALYSIS

S-STRENGTH

1. Brand Name
2. Strong TQM
3. Excellent Marketing Strategy
4. Innovative Personality
5. Cheap price cum Charming Products

W- WEAKNESS

1. No standard advertising
2. Lower Concentration on Other top countries
3. Lower Marketing strategies

O-OPPORTUNITIES

1. Possibility of Becoming World’s Top MNC


2. Expansion
3. Maximum Marketing Share

T-THREATS

1. Govt. Regulations
2. Maximum Taxes
3. Lack of Support from Foreign Government.
3.6.PATANJALI KEY TO SUCCESS

1. 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 middlemen to boost profits. Hence,
they are able to reduce their raw material procurement cost and are able to produce goods at a
much cheaper price.

2. Strong Distribution Channels:

Patanjali products are sold through three types of medical centers. These include Patanjali
Chikitsalayas which are basically clinics. Then there are Patanjali Arogya Kendra’s which are
health and wellness centers. They also have non-medicine channels called Swadeshi Kendra’s.

3. Strong Brand Association with Health Because Of Baba Ramdev:

Patanjali is able to create a brand perception of health and wellness among the Indian masses,
primarily because of Baba Ramdev’s association. Hence, more people are getting attracted to
Patanjali’s products and are re-buying products more frequently.

4. Simple Packaging Gives It A Natural Look:

Patanjali sells its products with a very simple packaging. Now, many would feel that it is not a
good strategy but the truth is it is working for Patanjali. With a product like Patanjali, where the
message is to promote ‘Ayurveda’ and ‘Health’, simple packaging can be a very effective way of
promotion. With a natural look (especially with leaves and herbs), consumers get a feeling of
health and wellness and they are attracted to buy the product.

5. Promotion through Media:

Baba Ramdev is considered to be a guru of yoga across the globe. He has been very co-
operative with press and media and has maintained good relationships with them. Also, he is
known to have good connections with many politicians. So he used both the facts to publicize his
company free of cost.

6. Word-Of-Mouth Promotion:

Advertising and promotions typically account for 12-20% of revenue expenditure by consumer
goods companies. When a new company gets into the business, this spending is significantly
higher. During the introduction stage, Patanjali followed a unique word of mouth publicity
model and the entire revenue was without any advertising. It was because of the brand loyalty of
its customers that the word-of-mouth promotion proved so successful for the company.
3.7.COMPETITION FROM PATANJALI PROMPTS FMCG TO HIT BACK

Watching Ramdev's moves are rival consumer goods companies. The Rs 2,000-crore Patanjali,
looking to grow its turnover two-and-a-half times in FY16, is striking at the heart of their
business, making its presence felt across categories.

The stiff competition has prompted most of the fast-moving consumer goods (FMCG) companies
to hit back. Consider what the country's biggest FMCG Company Hindustan Unilever (HUL) is
doing: It has 'resurrected' its herbal brand Ayush, launching it online. A bunch of new products
across hair care, skin care and pain balms have been launched on e-commerce platforms under
Lever Ayush Therapy. The plan is to take the brand to general trade in the future. The firm is
also expected to increase its 'natural' offerings, moving into newer categories such as health
foods, oral care, lip care etc.

HUL's managing director and chief executive Sanjiv Mehta says, "What we find is that
consumers' interest in natural/ayuvedic products is growing. It is one of the emerging trends
now. As a consumer goods company, we have to respond to this, which is why Ayush, which
existed in our portfolio, has now staged a comeback. We also acquired Indulekha to grow our
presence in the value-added hair oil segment. We will continue to make investments in this area."

Companies that have been directly affected by Patanjali such as Dabur, Emami and Himalaya -
all three operate in the herbal/naturals space - say they will buttress their portfolios, making their
products relevant to consumers.

Harsh Agarwal, director of Emami, says he is open to acquisitions to strengthen his firm's
position in the herbal space. "Ayurveda has been around for a long time. I don't see this as a new
trend. But, the emergence of new players is happening right now. We welcome them and will
continue to fortify our range with new variants, launches and acquisitions."

Emami had acquired hair oil brand Kesh King last year and was also in the race to acquire
Indulekha before opting out. Agarwal says he is looking at new targets, some of them located in
the south.

Industry source say herbal and non-herbal companies are now going back to the drawing board,
looking at how they can incorporate natural ingredients when developing new products.

Godrej Consumer, for instance, has launched a neem-based mosquito coil; a crème hair color that
has coconut oil; and launched new variants under Godrej No 1, its natural’s platform in soaps.
Sunil Kataria, business head (India and Saarc region) at Godrej Consumer, says, "Our endeavor
will be to fortify these products as we come up with new innovations in other categories."

Colgate, whose volume growth has taken a hit on account of Patanjali's Dent Kanti toothpaste,
according to brokerage firm Credit Suisse, is aggressively advertising its active salt neem
toothpaste, launched a few months ago.

This toothpaste, a variant of Colgate's Active Salt toothpaste, was made in India to address the
herbal coup, according to industry sources. Colgate is expected to come up with more such
offerings as Patanjali's threatens to eat into its business.

Dabur, on the other hand, is introducing new Ayurvedic products targeting men, women, and
children. Existing products such as Dabur Honey and Chawanprash are being pushed
aggressively in the marketplace as Patanjali positions itself as a price warrior in these categories.

Himalaya - another herbal products company - recently launched its range of wellness products
which aim to provide therapeutic solutions to consumers. Products ranging from anti-hair fall
creams to pills for staying slim are part of this new initiative.

PREPARING TO PUT UP A FIGHT

HUL
Company "resurrects" herbal brand, Ayush, launching it online. Plans to increase "natural"
offerings

Emami
Firm open to acquisitions for strengthening the company's position in the herbal space

Godrej Consumer
Launches neem mosquito coil, a crème hair color that has coconut oil, new variants in naturals
soaps

Colgate
Firm aggressively advertising its active salt neem toothpaste, as its volume was hit after
Patanjali's Dent Kanti
Dabur
Firm launching ayurvedic products. Pushing Dabur Honey and Chyawanprash aggressively

Himalaya
recently launched its range of wellness products which aim to provide therapeutic solutions to
consumer.
4. LITERATURE REVIEW

4.1.1. A REPORT ON PATANJALI AYURVEDA

By Varun Mishra Posted May 26, 2016 in Branding, Business, FrontPage, Health, Lifestyle,
Marketing 3 0

Introduction

Patanjali started its operations with Patanjali Yogpeeth in Hardiwar, Uttarakhand. Patanjali
yogpeeth is one of the biggest yoga institutes in the country. Swami Ramdevji and Acharya
Balkrishanaji set up Patanjali Ayurveda Ltd for treatment, research and development and for the
manufacturing of ayurvedic medicines in Yoga and Ayurveda.

Patanjali Yogpeeth offers treatment and scientific research and has brought a coup when it comes
healthcare in the country with the combined approach of Yoga and Ayurveda.

The infrastructural facilities at Patanjali Yogpeeth includes an OPD for free medical
consultation, IPD of thousand beds, laboratory for test investigation of radiology, cardiology and
pathology, a yoga research division, free yoga classes, high quality ayurvedic medicines
manufactured by Divya pharmacy, facilities of library and reading room along with a cyber café,
a huge auditorium, apartments for senior citizens, a grand museum and a sale channel of 11,000
square feet for literature related to yoga and Ayurveda.

Patanjali Ayurveda- Entry into FMCG

Patanjali started off manufacturing bulk ayurvedic medicines later branching its operations into
FMCG markets as well. Since, the FMCG market has low entry barriers, Patanjali soon
entrenched itself as a major consumer goods’ manufacturer. The recent trends clearly imply that
the company’s preference are shifting from medicines to consumer goods, perhaps because the
net revenues earned through FMCG are on par with ayurvedic medicines.

Patanjali Ayurveda – Current Market Insights

Patanjali as a brand currently has more than 350 products from Soap to Toothpaste and from
Oats to Health drinks. The 2014-2015 revenue of Patanjali Ayurveda crosses Rs. 2000 crore
figures. In January 2016, IIFL said “Patanjali Ayurveda Ltd has, in a short span of less than a
decagon, recorded a turnover higher than what several companies have managed to accomplish
over several decagons.

Patanjali Sales (2012-2015)


Proactive moves in Innovation

Patanjali Ayurveda is aggressively planning to enter into every consumer category. Currently
Patanjali Ghee is expected to be at INR 12 billion in the financial year 2016 and if it gains solid
distribution expertise, it could pose a serious threat to its competitors. An innovative R&D
facility equipped with latest technology, Patanjali has also launched a mobile app which helps
the consumer to locate retail channels and for online ordering of Patanjali products

Patanjali’s Supply Chain Management

The three phases of patanjali’s supply chain are product flow, information flow and cash flow.
Patanjali has recently completed a tie up with Future group to sell the products. They also sell
their products through their own channels opened in almost every district/city of India. Each
channel has to send their demand to central office at Hardiwar. Then as per the demand, various
products are gathered from various units of Patanjali. The items are delivered to channels
majorly through Patanjali transport.

Sales and Distribution – Patanjali

Patanjali provides sale of products online and can also be get hold of through post by sending the
money through demand draft

Patanjali herbal products are available at Post Offices across the country

Patanjali also has “Patanjali Chikatsalayas” and “Patanjali Arogya Kendra” in almost all the
cities of the country

To strengthen the distribution Patanjali is also implementing ERP which will help them in
managing the inventory.
4.2. RESEARCH METHODOLOGY

Attaining accuracy in any research requires in depth study regarding the subject. As the prime
motive of the project if the project is to know the marketing strategies of Patanjali Ayurveda and
how it is affecting Indian economy.

RESEARCH DESIGN

TYPE OF RESEARCH:-Descriptive research

Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main
characteristic of this method is that the researcher has no control over the variables; he can only
report what has happened or what is happening.

DATA SOURCES

There are two types of data. Source of primary data for the present study is collected through
questionnaire and answered by consumers of Patanjali Ayurveda.

The secondary data is collected from journals, books and through Internet search.

PRIMARY DATA

The data that is collected first hand by someone specifically for the purpose of facilitating the
study is known as primary data. So in this research the data is collected from respondents
through questionnaire.

SECONDARY DATA

For the company information I had used secondary data like brochures, web site of the company
etc. The Method used by me is Survey Method as the research done is Descriptive Research.

RESEARCH INSTRUMENTS

Selected instrument for Data Collection for survey is Questionnaire.

SAMPLE UNIT
100 respondents of different age groups, different profession and of different gender.

SAMPLING DESIGN

Convenience sampling.

SAMPLING TOOLS

Pie charts, averages graphs, ratio analysis graphs.


4.3. SCOPE OF THE STUDY

To conduct this research the target population was children, middle age men’s and women’s.

Targeted geographic area of Delhi/NCR, sample size of 100 people were taken.

100 people were given the questionnaire, and the questionnaire was the combination of both
open ended and closed ended.

Some dealer were also interviewed to know there prospective

Finally the collected data was analyzed and complied to arrive the conclusion and suggestion.
4.4. 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 limitations:-

Limited numbers of respondents

Time limitation for compelling the project.

The data obtained in some cases may be biased.

Difficulty in communicating within the city while conducting the survey.

The information obtained from the consumers based on questionnaire was assumed to be factual.

Since the survey is based on sampling method, it does not disclose the character of entire
customer.

Product unavailability for the consumers in the market is one of the biggest limitation for
Patanjali Ayurveda.