Documente Academic
Documente Profesional
Documente Cultură
GROUP 3
Introduction:
The fast-moving consumer goods (FMCG) segment is the fourth largest sector in the Indian
economy. The market size of FMCG in India is estimated to grow from US$ 30 billion in 2011
to US$ 74 billion in 2018. Food products is the leading segment, accounting for 43 per cent of
the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in terms
of market share.
Growing awareness, easier access, and changing lifestyles have been the key growth drivers for
the sector.
FMCG goods are popularly known as consumer-packaged goods. Items in this category include
all consumables (other than groceries/pulses) people buy at regular intervals. The most common
in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish,
packaged foodstuff, and household accessories and extends to certain electronic goods. These
items are meant for daily of frequent consumption and have a high return. Some of the top
FMCG firms in India are Hindustan Unilever Ltd., ITC (Indian Tobacco Company), Nestlé
India, GCMMF (AMUL), Dabur India etc.
GROUP 3
Patanjali Ayurveda started in 2007 and has benefited from close association with well-known
yoga guru Baba Ramdev. The company is different from a typical business and the stated
philosophy is to plough back profits into the company or to be used for social causes. The idea is
to be present in as many categories as possible in order to give consumers more choices, and
profits are to be reinvested in innovation and capacity expansion, so pricing can be made more
competitive.
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
LITERATURE REVIEW:
Miss Khanna (2015) believes that there are many significant factors that together make up the
buying decision of the product. Customers’ perception towards a brand is built largely on the
satisfactory value the user receives after paying for the product and the benefits the user looks
for. Miss Khanna performed the study on the people living in Punjab and found that a large
portion of the user is satisfied from Patanjali products. It may be because of reasonable price of
the product. It may be due to ability of the product to cure the problem. The satisfaction brings in
the retention of customer. Patanjali is enjoying the advantageous position in market through
spirituality element involved in its products. However, it should not ignore the competitors like
Naturals, pure roots, Vindhya herbals. Patanjali in order to retain more customers and satisfy
them, must fulfill the claims made by the company before any other brand may mushroom up
and take away the benefits of marketing through spirituality.
In their study of Impact of Patanjali Products on the FMCG Business, Anuja, Sakshi, Srishti
and Vinayak (2017) tried to determine what factors are responsible for giving Patanjali a head
over others FMCG’s. The key determinants which gives Patanjali a competitive edge over other
competitors are how the shortage of products is influencing its sales, customer satisfaction and
its production strategy. The study found that gender and age have a relationship with the various
factors in determining the consumer’s perception towards Patanjali products. People with older
age are more inclined towards the quality, Baba Ramdev’s spirituality, indigenous manufacturing
and experience perception while in gender, female are more influenced by the ayurvedic
products than male. They also found that Patanjali should mainly focus on advertisement,
quality, price and experience which would ultimately lead to value communication. The study
concluded that there is a relationship between the demographics and the perception of Patanjali
products. Baba Ramdev should promote swadeshi more towards younger generation as older
people are by default influenced with it. Patanjali should try to convey the quality of products to
men
Miss K.Subbulakshmi and Miss P.Geethamani (2017) believes that concern about health
among the customers of this millennium has increased. The inclination towards maintaining
quality of life has also resulted in increased consumption of products which are good for health
as well as provides maximum satisfaction. This has resulted in bent towards Herbal or Ayurvedic
therapy. Miss K.Subbulakshmi and Miss P.Geethamani performed a research study to understand
the perception, satisfaction and awareness of consumer about the herbal cosmetics and its
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
consumption pattern. As per the study, respondents/customers are aware of herbal cosmetic.
Cosmetics are no more considered luxury and consumers feel that cosmetics has higher amount
of chemicals which results into side effects. This has resulted into a switch to herbal products.
The firms have realized this change in behavior and has started providing herbal cosmetics. Miss
K.Subbulakshmi and Miss P.Geethamani concluded that there is an awareness about herbal
products among customers and they are also satisfied with the cost and quality of the products.
The study conducted by Nair and Prakash (2007), states that Understanding consumption
decision of consumers is a key to success of any business. Business organizations are spending
billions of dollars to know consumer’s attitudes, motivation to purchase and future behavioral
intentions of consumers. Out of 50 respondents most of the respondents (36%) were aged
between 15- 30 years. 26% of customers were aged between 30- 45 years and 20% were aged
above 60 years. 14% of respondents were in between 45- 60 years and only 4% aged below 15
years. The study was conducted to find out the consumers perception towards ayurvedic products
with special reference to Megha’s Herbo Care Ayurvedic Pharmacy. This pharmacy is a GMP
(Good Manufacturing Practice) certified pharmacy. The consumers have good opinion about the
products offered by the pharmacy. The pharmacy keeps a good relationship between its
consumers by providing good and quality products to them. All consumers of the company were
satisfied with the products and would like to recommend the products to others.
Ajeet Kumar and Anshu Ahuja (2017) carried a study on consumer behavior towards Patanjali
products. The objectives of the above study were to know about the perception, satisfaction level
and attributes of consumer about Patanjali products. The data was collected by the researcher
from 100 respondents in Haryana. They found that consumer was highly satisfied with Patanjali
products due to reasonable prices and due to curing ability. Consumer perception towards
Patanjali was found independent of Age, Gender and income level.
OBJECTIVE OF STUDY:
The study in hand is conducted keeping in view the following objectives:
GROUP 3
Variables:
Consumer Preference
Distribution Channel
Preference of channel for customer to buy – modern trade, online, offline retailers,
Patanjali outlets
Price
Price sentiments of consumer towards the product
Scale: Strongly Disagree, Disagree, Cannot Say, Agree, Strongly Agree
Advertisements
Rating connect with product due to advertising campaigns
Scale: Strongly Disagree, Disagree, Cannot Say, Agree, Strongly Agree
Brand Ambassador
Effect of current brand ambassador to promote the products
Scale: Strongly Disagree, Disagree, Cannot Say, Agree, Strongly Agree
Quality
Customer perception regarding the quality of products
Scale: Strongly Disagree, Disagree, Cannot Say, Agree, Strongly Agree
Ayurvedic ingredients
Desirability of ayurvedic ingredients to buy the product
Scale: Strongly Disagree, Disagree, Cannot Say, Agree, Strongly Agree
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
Framework:
Price
Quality
Advertisements
Brand
Ambassador
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
HYPOTHESIS:
Ho = Price does not influence the consumer preference towards Patanjali products
Ha = Price does influence the consumer preference towards Patanjali products
3. Distribution Channel
4. Advertisements
5. Brand Ambassador
GROUP 3
6. Ayurvedic Ingredients
RESEARCH METHODOLOGY:
INTRODUCTION:
As it is indicated in the title, this chapter includes the research methodology of the dissertation.
In more details, in this part the author outlines the research strategy, the research method, the
research approach, the methods of data collection, the selection of the sample, the research
process, the type of data analysis, the ethical considerations and the research limitations of the
project.
TYPE OF STUDY: This research is an exploratory research. Our research involves insight into
the rise in sale of Patanjali due to shift in consumer preference towards Ayurveda in last 5 years.
Our group has aimed at exploring the behavior or the preference of all the consumers from tier 1,
2 and 3 cities.
DATA COLLECTION: Our data is collected with the help of questionnaire which comprises of
20 questions based on different variables. The answers to 19 of these questions are on a Likert
scale with five level Likert items
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
DATA TYPE:
Primary data is used for the survey. 19 questions which use Likert scale are quantitative primary
data whereas the remaining 1 open ended question is qualitative primary data.
Quantitative data may also result from non-participant observations or other measurements (e.g.
in an experimental design). Also, sometimes data that are collected through qualitative processes
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
(participant observation, interviews) are coded and quantified. Your research methods tutor can
give you further information on these types of data, but here are some common quantitative data
collection methods and their definitions:
SAMPLING:
The major aspect of survey is to gather the information about the extent of shift in customer’s
preferences towards Ayurveda. As customer for such a survey can be anyone, we have tried to
collect data from a variety of people.
The sample size is not restricted to any age group but is majorly focused on millennial as they
are the one’s driving the current changes in almost all the industry. The sample also includes
people from different tier of cities and of different gender. Their distribution is shown below.
Female
30,30%
Male
69,70%
94%
GROUP 3
66, 67%
DATA ANALYSIS:
Distribution normalization:
Skewness and Kurtosis of the data distribution is calculated and tabulated
Descriptive Statistics
N Mean Skewness Kurtosis
Std. Std.
Statistic Statistic Statistic Error Statistic Error
Consumer.
99 2.5354 -.158 .243 -1.060 .481
Preference
Price 99 3.4545 -.418 .243 .336 .481
Quality 99 3.4242 .084 .243 -1.480 .481
Distribution.
99 3.0303 -.376 .243 .311 .481
Channel
Promotion 99 2.4747 .220 .243 -.623 .481
Ingredients 99 2.8081 .281 .243 -.417 .481
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
Consumer .565
Preference 3
Price .178
3
Quality .348
4
Distribution -.813
Channel 2
Promotion .397
3
Ingredients .493
3
Total .665
19
Remark: Cronbach’s alpha is negative for distribution channel as the questions for
which data are gathered are counter to each other.
Data Visualization:
Strongly Cannot Strongly Grand
Variable Agree Agree Say Disagree Disagree Total
Consumer Preference 20 24 37 18 0 99
Price 2 9 38 42 8 99
Quality 0 1 55 43 0 99
Distribution Channel 5 16 51 25 2 99
Promotion 11 44 30 12 2 99
Ingredients 8 33 34 18 6 99
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
Brand Ambassador 36 24 27 9 3 99
CONSUMER PREFERENCE
DisSatisfied Strongly Satisfied
18% 20%
Satisfied
24%
Cannot Say
38%
Strongly PRICE
Dissatisfied Strongly Satisfied
2% Satisfied
8%
9%
DisSatisfied
43% Cannot Say
38%
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
QUALITY
Satisfied
1%
DisSatisfied
43%
Cannot Say
56%
DISTRIBUTION
Strongly CHANNEL
Dissatisfied Strongly Satisfied
2% 5%
Satisfied
DisSatisfied 16%
25%
Cannot Say
52%
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
Strongly PROMOTION
Dissatisfied
Strongly Satisfied
DisSatisfied 2%
11%
12%
Cannot Say
30%
Satisfied
45%
INGREDIENTS
Strongly
Dissatisfied Strongly Satisfied
6% 8%
DisSatisfied
18%
Satisfied
33%
Cannot Say
35%
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
Data Descriptive:
Mean
Std.
N Minimum Maximum Std. Deviation
Statistic Statistic Statistic Statistic Error Statistic
Consumer Preference 99 1.00 4.00 2.5354 .10184 1.01331
Price 99 1.00 5.00 3.4545 .08527 .84844
Quality 99 2.00 4.00 3.4242 .05195 .51688
Distribution Channel 99 1.00 5.00 3.0303 .08428 .83854
Promotion 99 1.00 5.00 2.4949 .09235 .91889
Ingredients 99 1.00 5.00 2.8081 .10321 1.02695
Brand Ambassador 99 1 5 2.18 .112 1.119
Valid N (list wise) 99
Chi-Square Tests
Asymptotic
Significance
Gender Value df (2-sided)
male Pearson Chi-Square 13.327b 6 .058
Likelihood Ratio 13.504 6 .036
Linear-by-Linear
1.702 1 .192
Association
N of Valid Cases 69
female Pearson Chi-Square 8.333c 3 .060
Likelihood Ratio 9.467 3 .024
Linear-by-Linear
7.990 1 .005
Association
N of Valid Cases 30
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
Correlations
Consume
r. Distributi Brand.
Preferenc Quali on. Promoti Ingredient Ambassado
e Price ty Channel on s r
Consumer Pearson
1 .319** .127 -.151 .471** .394** .264**
. Correlation
Preferenc Sig. (2-tailed) .001 .211 .135 .000 .000 .008
e N 99 99 99 99 99 99 99
Price Pearson
.319** 1 -.049 -.005 .298** .406** .106
Correlation
Sig. (2-tailed) .001 .632 .959 .003 .000 .299
N 99 99 99 99 99 99 99
Quality Pearson
.127 -.049 1 -.054 .001 .059 .042
Correlation
Sig. (2-tailed) .211 .632 .599 .989 .563 .682
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
N 99 99 99 99 99 99 99
Distributi Pearson
-.151 -.005 -.054 1 -.020 .019 -.082
on. Correlation
Channel Sig. (2-tailed) .135 .959 .599 .845 .854 .419
N 99 99 99 99 99 99 99
Promotio Pearson
.471** .298** .001 -.020 1 .569** .255*
n Correlation
Sig. (2-tailed) .000 .003 .989 .845 .000 .011
N 99 99 99 99 99 99 99
Ingredient Pearson
.394** .406** .059 .019 .569** 1 .217
s Correlation
Sig. (2-tailed) .000 .000 .563 .854 .000 .031
N 99 99 99 99 99 99 99
Brand. Pearson
.264** .106 .042 -.082 .255* .217 1
Ambassad Correlation
or Sig. (2-tailed) .008 .299 .682 .419 .011 .031
N 99 99 99 99 99 99 99
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Objective.
Association between demographic variables and satisfaction level. In most of the
cases the buying behavior of consumer is influenced by demographic variables.
Gender, age and city of living are the three variables that has been taken by the
researcher for the above study. With the help of suitable statistical techniques, the
association between independent variables and dependent variables will be measured.
ANOVA
Sum of
Squares df Mean Square F Sig.
Consumer. Between
3.426 2 1.713 1.692 .190
Preference Groups
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
As significance is less than 0.05 in each case it is evident that city has no influence on
variable means.
Impact of Gender on Variables:
One Way ANOVA is done with gender being independent variable and with other
dependent variables Consumer preference, Price, Quality, Ingredients, Distribution
channel, brand ambassador.
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
ANOVA
Sum of
Squares df Mean Square F Sig.
Consumer. Between
1.225 1 1.225 1.195 .277
Preference Groups
Within Groups 99.401 97 1.025
Total 100.626 98
Price Between
.089 1 .089 .122 .727
Groups
Within Groups 70.457 97 .726
Total 70.545 98
Quality Between
.025 1 .025 .094 .760
Groups
Within Groups 26.157 97 .270
Total 26.182 98
Distribution. Between
3.796 1 3.796 5.655 .099
Channel Groups
Within Groups 65.113 97 .671
Total 68.909 98
Promotion Between
.503 1 .503 .657 .419
Groups
Within Groups 74.184 97 .765
Total 74.687 98
Ingredients Between
.240 1 .240 .226 .635
Groups
Within Groups 103.113 97 1.063
Total 103.354 98
Brand. Ambassador Between
2.658 1 2.658 2.147 .146
Groups
Within Groups 120.070 97 1.238
Total 122.727 98
As significance is less than 0.05 in each case it is evident that Gender has no
influence on variable means.
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
ANOVA
Sum of
Squares df Mean Square F Sig.
Consumer. Between
9.037 3 3.012 3.124 .229
Preference Groups
Within Groups 91.590 95 .964
Total 100.626 98
Price Between
1.072 3 .357 .489 .691
Groups
Within Groups 69.473 95 .731
Total 70.545 98
Quality Between
.141 3 .047 .171 .916
Groups
Within Groups 26.041 95 .274
Total 26.182 98
Distribution. Between
1.572 3 .524 .739 .531
Channel Groups
Within Groups 67.337 95 .709
Total 68.909 98
Promotion Between
8.131 3 2.710 3.869 .072
Groups
Within Groups 66.556 95 .701
Total 74.687 98
Ingredients Between
2.801 3 .934 .882 .453
Groups
Within Groups 100.553 95 1.058
Total 103.354 98
Brand. Ambassador Between
9.893 3 3.298 2.776 .065
Groups
Within Groups 112.834 95 1.188
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
Total 122.727 98
As significance is less than 0.05 in each case it is evident that Age has no influence
on variable means.
Hypothesis Testing:
· Ho = Price does not influence the consumer preference towards Patanjali products
Correlations
Consumer
Preference Price
Consumer Preference Pearson Correlation 1 .319**
Sig. (2-tailed) .001
N 99 99
Price Pearson Correlation .319** 1
Sig. (2-tailed) .001
N 99 99
**. Correlation is significant at the 0.01
level (2-tailed).
As significant is 0.001 which is less than 0.01 so we reject Ho implying price does influence
customer preference towards Patanjali products.
· Ho = Quality does not influence the consumer preference towards Patanjali products
Correlations
Consumer Preference Quality
Consumer Preference Pearson Correlation 1 .127**
Sig. (2-tailed) .029
N 99 99
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
As significant is 0.029 which is less than 0.01 so we reject Ho implying quality does influence
customer preference towards Patanjali products.
3. Distribution Channel
· Ho = Distribution Channel does not influence the consumer preference towards Patanjali
products
· Ha = Distribution Channel does influence the consumer preference towards Patanjali products
Correlations
Consumer Preference Distribution Channel
Consumer Preference Pearson Correlation 1 -.151
As significant is greater than 0.01 for 99% confidence interval we accept Ho. Indicating
distribution channel don’t influence consumer preference.
4. Advertisements
· Ho = Advertisements does not influence the consumer preference towards Patanjali products
Correlations
Consumer Preference Promotion
Consumer Preference Pearson Correlation 1 .469**
Sig. (2-tailed) .000
N 99 99
Promotion Pearson Correlation .469** 1
Sig. (2-tailed) .000
N 99 99
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
As significant is 0.000 which is less than 0.01 so we reject Ho implying promotion does
influence customer preference towards Patanjali products.
5. Brand Ambassador
· Ho = Brand Ambassador does not influence the consumer preference towards Patanjali
products
Ha = Brand Ambassador does influence the consumer preference towards Patanjali products
Correlations
Consumer Preference Ingredients
Consumer Preference Pearson Correlation 1 .394**
Sig. (2-tailed) .000
N 99 99
Ingredients Pearson Correlation .394** 1
Sig. (2-tailed) .000
N 99 99
**. Correlation is significant at
the 0.01 level (2-tailed).
· As significant is 0.000 which is less than 0.01 so we reject Ho implying ingredients does
influence customer preference towards Patanjali products.
6. Ayurvedic Ingredients
· Ho = Ayurvedic ingredients does not influence consumer preference towards Patanjali products
· Ha = Ayurvedic ingredients does influence the consumer preference towards Patanjali products
Correlations
Consumer Preference Brand Ambassador
Consumer Preference Pearson Correlation 1 .264**
Sig. (2-tailed) .008
N 99 99
Brand Ambassador Pearson Correlation .264** 1
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
CONCLUSION:
This survey provided us to conclude that consumer preference towards Patanjali products is
influenced by Price, Quality, Brand Ambassador, Ayurvedic ingredients and Advertisements but
is not influenced by the Distribution Channel.
REFERENCES:
4. Agarwal, Anuja, Gupta, Sakshi, Gupta, Srashti and Nautiyal, Vinayak (2017, January)
The Impact of Patanjali Products on the FMCG Business Hither to Dominated by Multi-
Nationals like Hul, P&G, Nestle etc. International Journal of Informative & Futuristic
Research, V4/E5, pp.6361-6382
BUSINESS RESEARCH ASSIGNMENT
GROUP 3
5. Kumar Ajeet, Ahuja Anshu (2017), Consumer behavior towards Patanjali products: a
study on consumers with reference to Rohtak district of Haryana, Kaav International
Journal of Economics, Commerce & Business Management
6. Kumar, M. R., & Janagam, D. (2011, March). Export and Import Pattern of Medicinal
Plants in India. Indian Journal of Science and Technology, IV(3), 245-248
7. Sinha, A., & Singh, N. (2015). Growing Herbal Cosmetics Indian Market. International
Journal of Management and Science
ANNEXURE:
GROUP 3