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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’sLalita 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’sLalita 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’sLalita 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 Jainwho 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 PatanjaliArogya 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?

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

2. There is no relationship between the buying patterns of on the basis of age


groups.

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

1. There is no 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, PatanjaliMultaniMitti Face Pack,
Patanjali Aloe Vera Juice, Patanjali Yoga Sutra, Patanjali Coconut Hair Wash,
PatanjaliSheetal oil, Patanjali Sunscreen, Patanjali Aloe Vera apricot Face
Scrub, Patanjali Anti-wrinkle Cream, and PatanjaliDrishti 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, DantKanti 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.

PatanjaliAyurved'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 PatanjaliDanthKanti.

9) 36.7% youth feels average about PatanjaliKeshKanti.


Table 19: Popular Patanjali Products

Patanjali Products Popular


Nutrition and Supplements Chyawanprash
 Chyawanprash Chyawanprash Special
 Badam Pak Special KesarChyawanprash
 Ghee Badam Pak
 Honey Ghee
 Health Drinks CowGhee
 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
 SoanPapdi Jam Mixed Fruit
 Natural Sugar Murabba
 Broken Cereals (Dalia) AmlaMurabba
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 GulabJal
 Shave Gel Face Wash NeemTulsi
 Scrubs Face Cream
 Dental Care Anti Wrinkle Cream
Beauty Cream
 Toothpaste
Moisturizer Cream
 Tooth Brush
Shave Gel
 Tooth Powder (Manjan)
Herbal Shave Gel
 Hair Care
Dental Care
 Shampoo Toothpaste
 Hair Oil Tooth Paste DantKanti
 Conditioner Hair Care
 Hair Color Shampoo
 Body Care Shampoo KeshKanti Natural
 Toiletries Shampoo Milk Protein Shikakai
 Detergent Powder KeshKanti Anti Dandruff Hair Cleanser
 Detergent Cake Shampoo
 Hand Wash Soaps KeshKantiReetha Hair Cleanser Silk &
 Eye Care Shine
Toiletries
Detergent Powder
Premium Detergent Powder
(Machine)
Detergent Cake
Detergent Bar With Herbs
Hand Wash
Herbal Hand Wash
Soaps
Soap Ojas
Soap Mogra
Soap MultaniMitti
NeemKanti
HaldiChandan
Aloe Vera Kanti
PanchgavyaKanti Soap
Rose Body Cleanser