A Minor Project Report on

IMPACT OF PATANJALI ON FMCG SECTOR

Submitted in partial fulfillment of the requirements for the award of the
degree of Bachelor of Commerce (Hons.) Programme of Guru Gobind
Singh Indraprastha University, Delhi.

Submitted To: Submitted by:

Ms. Soni Jain Mukesh Kumar Ram
52019288818

Lingaya’s Lalita Devi Institute of Management & Sciences

(NAAC Accredited “A” Grade Institute & Approved u/s 2(f) of UGC Act
1956)

Mandi Road, Mandi, New Delhi-110047

 DECLARATION

I, hereby declare that this Minor Project Report, entitled “Impact of Patanjali of

Fmcg Sector”, is an authentic work carried out by me. It has not been submitted

earlier for award of any degree or diploma to any institute or university.

Place: New Delhi Candidate’s Signature

Date: Name: Mukesh Kumar Ram

Enroll. No. : 52019288818

Countersigned

Name :
Supervisor
Lingaya’s Lalita Devi Institute of Management & Sciences
 ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or indirectly

contributed in the development of this work and who influenced my thinking,

behaviour and acts during the course of study.

I express my sincere gratitude to …………………………………………… the

worthy Director of Lingaya’s Lalita Devi Institute of Management & Sciences,

for providing me an opportunity of doing this project under his leadership.

I also extend my sincere indebtedness to Ms. Soni Jain who provided his/her

valuable suggestion and precious time in accomplishing my project.

I also take the opportunity to express my sincere gratitude to each and every

person, who directly or indirectly helped me throughout the project and without

anyone of them this project would not have been possible.

The immense learning from this project would be indelible forever.

(Mukesh Kumar Ram)

 TABLE OF CONTENTS
S.No. Topic Page No

1 Declaration i

2 Acknowledgement ii

3 List of Tables iii

4 List of Figures iv

6 Chapter-1: Introduction

 Overview of Industry as a whole

 Profile of the organization
 History of the Organization
 Competitor’s Information
 S.W.O.T Analysis of the Organization
 Objectives of the study
 Scope of the study
 Methodology

7 Chapter-2: Conceptual Framework

 Main topics & Sub Topics

8 Chapter-3: Data Analysis and interpretation

9 Chapter-4: Summary and Conclusion

 Results of the study

 Limitations
 Suggestions and Recommendations

10 Bibliography -

11 Appendix -
 Introduction
Patanjali has grown from strength to strength and is giving big player FMCG companies a run for
their money. With recording net sales worth Rs. 2000 crores last year and targeting a net sales worth
Rs. 5000 crores this financial year ending in a few days, Patanjali has really come a long way.
Everything is working right for them. This type of growth is very astonishing for an Indian company
competing with foreign players like HUL, P&G and Nestle. It has already crossed the sales of many
established players. Baba Ramdev, price and quality are the three most important factors working
for them. With trade analysts estimating that Patanjali will cross the Rs. 20,000 crores mark by 2020,
it is definitely a force to reckon with and take notice of before it’s too late. With strategic alliances
with many e commerce business and supermarkets like Big Bazaar and Reliance Fresh Direct, it has
increased its value chain. Patanjali has realized that to succeed they have to enhance their
distribution from the tradition Patanjali Arogya Kendra or Chikitsalyas. Patanjali has a diverse
product portfolio from having nutrition and supplements to grocery, from home care to personal
care and health care. It has just entered into the health juice products trying to compete with Real
and Tropicana. Cow ghee is its most famous product. With expansion plans in Maharashtra, Patanjali
wants to step up its production so that it can meet the growing demand of products and avoid
shortage. It is also thinking of setting up a food plant somewhere in south of India. With low
advertising spends, Patanjali has still been able to carve a name for itself. But in recent months it has
amplified its advertisements. The price of Patanjali products are around 20% lower than that of their
competitors and it is a huge reason why it is gaining popularity besides eating into the market share.
On the quality front also it is excellent as it leverages its image of being ayurvedic and swadeshi
factor. The recommendations of Patanjali are working very good for the brand itself as people are
recommending it to their friends and family members. It seems that there is more acceptability of
the brand amongst older people than younger people but it won’t take time for that to change. With
demand so great that people at Marine Lines pull up the shutter after 7 pm to get the products even
after the shop is closed for the day for counting cash, it can be seen that it has carved a place for
itself amongst the consumers. It is the next Indian Body Shop.

1.1 Background of Study

The traditional uses of herbal products have a substantial historical and cultural importance.
Although modern chemical based products exist side by side and have also gained popularity with
the emerging era. Spiritual organizations are launching and selling their own products for the
customers to capture the market influencing the consumption behaviour of masses, which mainly
depend on natural and herbal products. Baba Ramdev’s Patanjali Ayurved launched in 2006 is
perhaps the fastest growing fast moving consumer goods company in India. A business revolution,
marketing through spirituality and an ayurvedic magic wand for healthy living, it has been called all
by researchers in previous background studies.

1.2 Statement of the Problem

Since Patanjali Ayurved Ltd. is a leading fast moving consumer goods company with a tremendous
growth in the past few years, it is a growing threat to the other influential FMCG’s. Hence to study
the growing market of Patanjali our aim is to determine what factors are responsible for giving
Patanjali a head over others FMCG’s. This study will determine the different distribution channels
 through which Patanjali is pushing its products in the market. It focuses on key determinants which
gives Patanjali a competitive edge over other competitors and also the issues of how the shortage of
products is influencing its sales, customer satisfaction and its production strategy. So the statement
of the problem is that which factors are working for Patanjali and the perception of these factors
towards the consumers along with the most popular product portfolio among its various distribution
channels.

1.3 Purpose of the Study

The purpose of the study is to find out certain factors that have led to the growing boom of Patanjali
products in the market, how different channels lead to pushing sales of products and to determine
how shortage of some best-selling products leads to loss of opportunity costs and other not popular
products have led to increased inventory costs of products through different distribution channels.

Purpose 1: Based on demographic data, is there any specific pattern which can be observed?

H0: There is no relationship between the buying pattern of male and female

H1: There is a relationship between the buying pattern of male and female.

H0: There is no relationship between the buying patterns of on the basis of age groups.

H1: There is a relationship between the buying patterns on the basis of age groups.

Purpose 2: What are the important factors that give Patanjali an edge over other FMCGs?

H0: There is no relationship between the factors that affect the mindset of consumers of Patanjali.

H1: There is a relationship between the factors that affect the mindset of consumers of Patanjali.

Purpose 3: Which are the most popular products of Patanjali?

This research will help us to understand the market dynamics and the customer behaviour regarding
Patanjali’s products and why large based customers are switching from multi nationals like HUL to
Patanjali’s herbal based products and to know whether Patanjali can increase its sales by increasing
its opportunity cost and reducing its inventory cost by manufacturing more popular products.

III. RESEARCH METHODOLOGY

3.1 Description of Research Design and Procedures Used

This is a descriptive and causal research of quantitative nature under which questionnaire study will
be carried out. Also a descriptive qualitative research under which an interview will be carried out is
also a part of our design. An ethnographic study will also be carried out in supermarkets to observe
the nature of the buying behaviour of the consumers.

3.2 Sources of Data

  Participants in this study will include Patanjali consumers (a minimum of 30 participants of
two age groups, i.e., 20-34 and 35-60 each and two gender, i.e., male and female) who will
be given a questionnaire. The participants will be selected by giving it to family members,
close friends and relatives. The sampling method to be used is non probability convenience
sampling to select participants. The elements that will be characteristic of the sample will be
sex, age, region and number of family members. An effort will be made to collect data
proportionately from male and female sex, the age groups and the region. Also, shopkeepers
of two Patanjali Shops and some general stores will be interviewed. The two Patanjali shops
are:
 PatanjaliAarogya Kendra, Manoj Villa, Station Road, Vile Parle West, Mumbai – 400056
 PatanjaliChikitsalya, 241, Chandra Mahal Building, Princess Street, Mumbai – 400002

3.3 Sampling Procedures

A non-probability convenience sampling procedure will be used.

3.4 Methods and Instuments of Data Gathering

 Instrument #1 Questionnaire - Materials included is a questionnaire which include 14

questions which is given in the appendix A. The survey will measure the various independent
variables using Likert scale and after primary data collection the data will be analysed using
factor analysis with the help of SPSS. Also the distribution network most preferred by
consumers and products which consumers hope Patanjali should manufacture but is not in
their product mix are asked. Even the buying frequency and how consumers stumbled upon
Patanjali will be asked besides the usual demographic data.
 Instrument #2 Interview – The interview questions for the shopkeepers are included in the
appendix B. For the interview part, shopkeepers of Patanjali shops will be asked their
products which are the most selling and also in shortage, the products which are lying in the
inventory and have low sales volume and lastly the products which consumers enquire
about but Patanjali doesn’t manufacture.
 Instrument #3 Observation – The buying behaviour of the consumers in supermarkets and
the interne will be observed under the ethnographic study to know which products the
consumers buy the most.
 A questionnaire will be given to Patanjali consumers to know why they prefer Patanjali over
other brands such as HUL, P&G and Nestle and the factors which are most influencing. A
personal interview with Patanjali shopkeepers will be conducted about the FMCG products
which are so much in demand that there is shortage for them, products which are not sold
much and lead to too much inventory in the shelves and products about which customers
inquire but Patanjali doesn’t manufacture so that it gives them an opportunity in the various
categories of nutrition and supplements, grocery, home care, personal care and health care
and if possible the quantitative data to support these answers will be noted. For ecommerce
websites like Big Basket, Relaince Fresh Direct, ZopNow and Grofers, we will try to find the
popular products and the shortage products and try to validate it with our previous data. A
similar personal interview can be conducted for general stores. In supermarkets like Big
 Bazaar, Relaince Retail, D Mart, Spencer’s Retail and HyperCITY we can collect data by mere
observation about the products which consumers buy.

3.5 Methods of Data Analysis

The methods of data analysis we are going to use are ANOVA, factor analysis and correlation
analysis using SPSS.

IV. SWOT ANALYSIS OF PATANJALI

Patanjali came into the picture less then a decade back but has taken a huge share of the Indian
market due to the large scale following of Baba Ramdev. Patanjali registered a revenue of INR 5000
crores in 2015-16 growing at 150% over the previous year.

V. MARKETING MIX OF PATANJALI

 VI. EXPECTED FUTURE PERFORMANCE OF PATANJALI PRODUCTS

The growing demand for organic products and rising health concerns have caused individuals to
prefer detergents, soap and hand wash without any added chemicals. Future estimates indicate the
growth in this category, however, it has been forecasted that toiletries will contribute 3% to
Patanjali’s overall revenue. Hair oil and Patanjali’s shampoo are expected to boost the revenues
generated from the hair care segment and is projected to contribute 8% to Patanjali’s overall
revenue. Majority of revenue generated by the hair care segment comes from the northern region of
the country. The rising demand for herbal and organic products will see an augmenting demand for
Patanjali’s toothpaste in the future, especially from the rural market and this is expected to boost
revenues. Patanjali will manufacture and sell new lines of body lotion and face wash, targeting men
and children will help further boost the contribution of the body care segment to Patanjali’s overall
revenue. Products like Patanjali Moisturizer Cream, Patanjali Multani Mitti Face Pack, Patanjali Aloe
Vera Juice, Patanjali Yoga Sutra, Patanjali Coconut Hair Wash, Patanjali Sheetal oil, Patanjali
Sunscreen, Patanjali Aloe Vera apricot Face Scrub, Patanjali Anti-wrinkle Cream, and Patanjali Drishti
Eye drop are gaining huge popularity.

Competitive scenario of Patanjali:

1) Innovation – Patanjali being a major competitor, FMCG companies are expected to introduce
innovative Herbal and Ayurvedic products over the forecast period.

2) Pricing – Patanjali sells its product at a lower price to meet consumer demands. Patanjali is able to
sell its best quality product at a price which is 10% to 30% less than its competitors who spend 12%
to 18% on advertising and promotion.

3) Brand Marketing – Patanjali has given a tough competition to some of the FMCG majors in the
area of hair care, oral care and OTC products across its brand portfolio through impressive brand
marketing by Baba Ramdev.

4) Revenue Market Share – According to IIFL, Patanjali could attain a net turnover of Rs 20,000 crore
by FY20.

New launches of Patanjali include Patanjali Noodles, Dant Kanti Advance, and Sugar-free
Chyawanprash, Power Vita, Seabuckthorn dietary supplement and powdered hair dye. Other than
the products related to lifestyle and health, the company has plans to touch every consumer
category.
Patanjali Ayurved's managing director Balkrishna is planning to invest Rs 5,000 crore in the country
in the current financial year exploring possibilities to set up units in Madhya Pradesh, Maharashtra,
the North-East, Jammu and Kashmir, Uttar Pradesh, Rajasthan and Andhra Pradesh. If all goes well,
the company's food processing unit at Pithampur industrial area in Dhar district would process 1,000
tons of wheat daily. Madhya Pradesh government has allotted 40 acres of land to Patanjali at the
rate of Rs 25 lakh per acre.

VII. RESEARCH METHODOLOGY

Questionnaire, a primary source was used to do the survey among the youth. Objective of the survey
was to study the consumer reviews related to the Patanjali products.

The survey was responded by more than 150 students.

Following conclusions were drawn through the survey:

1) 37.5% youth spends <=Rs.1000 per month on FMCG.

2) 45% youth prefer Patanjali in FMCG products in comparision to other companies.

3) 85.3% youth believes that Baba Ramdev affects buying behaviour for Patanjali products.

4) 64.7% youth believes that Patanjali products are ayurvedic.

5) 41.2% youth feels average about Patanjali Ghee.

6) 37.2% youth feels satisfied with Patanjali Honey.

7) 36.7% youth feels average about Patanjali herbal bath soap.

8) 42.8% youth is feels satisfied with Patanjali Danth Kanti.

9) 36.7% youth feels average about Patanjali Kesh Kanti.

 Table 19: Popular Patanjali Products

Patanjali Products Popular

Nutrition and Supplements Chyawanprash
 Chyawanprash Chyawanprash Special
 Badam Pak Special Kesar Chyawanprash
 Ghee Badam Pak
 Honey Ghee
 Health Drinks Cow Ghee
 Fruit Juice Honey
Honey Pure
Health Drinks
Aloevera Juice/ Fibre Juice
Amla Juice
Grocery Atta
 Biscuits and Cookies Wheat Atta
 Spices Navratna Atta
 Candy Biscuits and Cookies
 Herbal Tea Marie
 Jam Namkeen
 Murabba Jam
 Soan Papdi Jam Mixed Fruit
 Natural Sugar Murabba
 Broken Cereals (Dalia) Amla Murabba
Pickle
 Gram Flour (Besan)
Awla Pickle
 Pickle
Mustard Oil
 Salt
Sarso Tel (Mustard)
 Mustard Oil
Noodles
 Corn Flakes Atta Noodles
 Dal (Pulses)
 Rice
 Noodles
 Oats
 Papad
 Namkeen
 Bura
Home Care Dish Wash Bar
 Agarbatti Super Dish Wash Bar
 Dish Wash Bar
 Herbal Gulal
Personal Care Skin Care
 Skin Care Body Care
 Body Care Tejus Body Lotion
 Face Wash Face Wash
 Face Cream Face Wash Saundarya
 Face Pack Gel Aloevera
 Foot Cream Gulab Jal
 Shave Gel Face Wash Neem Tulsi
 Scrubs Face Cream
 Dental Care Anti Wrinkle Cream
 Toothpaste Beauty Cream
 Tooth Brush Moisturizer Cream
 Tooth Powder (Manjan) Shave Gel
 Hair Care Herbal Shave Gel
 Shampoo Dental Care
 Hair Oil Toothpaste
 Conditioner Tooth Paste Dant Kanti
 Hair Color Hair Care
 Body Care Shampoo
Shampoo Kesh Kanti Natural
 Toiletries
Shampoo Milk Protein Shikakai
 Detergent Powder
Kesh Kanti Anti Dandruff Hair Cleanser
 Detergent Cake
Shampoo
 Hand Wash Soaps
Kesh Kanti Reetha Hair Cleanser Silk & Shine
 Eye Care Toiletries
Detergent Powder
Premium Detergent Powder (Machine)
Detergent Cake
Detergent Bar With Herbs
Hand Wash
Herbal Hand Wash
Soaps
Soap Ojas
Soap Mogra
Soap Multani Mitti
Neem Kanti
Haldi Chandan
Aloe Vera Kanti
Panchgavya Kanti Soap
Rose Body Cleanser