Competetive Study of Pericing Strategies of Patanjali Ayurved Product VS Other Branded Products

FINAL YEAR PROJECT REPORT
COMPETETIVE STUDY OF PERICING STRATEGIES OF

PATANJALI AYURVED PRODUCT V/S OTHER BRANDED
PRODUCTS
A report submitted to
ASIAN BUSINESS SCHOOL, NOIDA
As a partial fullfilment of full time
Post Graduate Diploma in Management (PGDM)
Approved by AICTE, by ministry of HRD
Submitted to: Submitted By:

Mrs.Shilpa Narula Sood Chetna Baweja
Asian Business School
ABS/PGDM/JULY14/138 Noida
2014 – 2016
Asian Business School (ABS)

A2, Sector – 125, Noida
Website : www.abs.edu.in
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CERTIFICATE
This is to certify that the project report entitled “Competitive Study of Pricing Startegies of
Patanjali Ayurved Products v/s other branded Products” issubmitted to Asian Business
School, in partial fulfillment of the requirements for theaward of the Post Graduate Diploma
in Management, and is a record work byChetna Baweja, ABS/PGDM/JULY14/138 The
project has been done under mysupervision & guidance and the project has not formed the
basis for the award of anydegree or other similar title to any candidate.
SIGNATURE SIGNATURE
Internal Examiner (Project Guide) External Examiner (Viva expert)
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DECLARATION
I hereby declare that the project titled “Competitive Study of Pricing Startegies of
Patanjali Ayurved Products v/s other branded Products”is an original piece of research
work carried out by me under the guidance and supervision of Mrs. Shilpa Narula Sood. The
information has been collected from genuine & authentic sources. The work has been
submitted in partial fulfillment of Post Graduate Diploma in Management of Asian Business
School.
Chetna Baweja
Date:
Place Asian Business School, Noida
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TABLE OF CONTENTS
Chapters Page Nos.
i. Significance of the Study 1

ii. Objective of the Study 2
iii. Literature Review 3–7
iv. Justification of the Study 8–9
v. Introduction to the Industry 10 – 20
vi. Market Overview 21 – 23
vii.Introduction to the Company 24 – 43
viii. Research Methodology 44 – 48
ix. Limitation of the Study 49
x. Pricing Strategy 50-60
xi. Data Analysis and Interpretation 61 – 73
xii.Findings and Recommendation 74 - 75
xiii. Conclusion 76
xiv. Bibliography 77 – 79
xv. Annexure 80 – 82
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CHAPTER – 1
SIGNIFICANCE OF THE STUDY:-
The optimum pricing of the product is very essential to ensure the high sales of the product.
The pricing decisions areconstitute an important part of the marketing mix decision of any
company. Hence pricing of the product done with atmost cares so that its sales revenue can
contribute to the profits of the company. Though there is a tough competition in the market
but several measures can be taken to optimally price the product. Surveys on the pricing
strategies of various ayurveda companies and FMCG companies have been undertaken so
that they can appropriately respond to the changing customers and economic concerns.
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CHAPTER – 2
OBJECTIVE OF THE STUDY:-
Main objective:-
The main objective is “Comparative Study of Pricing Strategies of Patanjali Ayurved
Products with Other Branded Products”.
Sub-objectives:-
 To study the consumer preferences in reference to prices of products of BabaRamdev’s

products and products of HUL and P&G LTD.
 To find out the motives of the purchase and the factors affecting purchase decision.
To find out the affect of price on consumers buying decision for Baba Ramdev’s Products.
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CHAPTER –3
LITERATURE REVIEW:-.
Changing socio- economic environment was greatly affecting the rural ties and marketer`s
influence was clearly observable in terms of changing consumption pattern, which was
reflecting in products and brand choices of rural ties. Income is the biggest influence on the
purchase decisions and consumption pattern (Dr. Sanjeev Kumar and Dr Singh M R P
(2010) “Brand aspirations and brand switching behavior of rural consumers – a case study
of Haryana”).
It was said that consumer behaviour is a very complex phenomenon, which needs more
efforts to understand, explain and predict. In order to get a clear understanding of the same,
every marketer should realize that consumer behaviour is, in fact, an assumption every
marketing manager must make, if he plans to market on any basis other than hit-or-miss.
Although some individuals find it difficult to make this assumption, one must agree that
behaviour is not so erratic or mysterious that it defies explanation (T. Mamatha, 2008)
Promotion of brands in rural markets requires the special measures. Due to the social and
backward condition the personal selling efforts have a challenging role to play in this regard.
The word of mouth is an important message carrier in rural areas. Infect the opinion leaders
are the most influencing part of promotion strategy of rural promotion efforts (Dr. Vijay
Pithadia,2007)
"The rural market likes it strong" the strength of rural markets for Indian companies.
Financial express, June 19, 2000 has published the strategy about FMCG majors, HLL,
Marico Industries, Colgate Palmolive have formula had for rural markets (The Economic
Times, 2003)
The research was being done on rural telecom in India .He explain that Rural markets are an
important and growing market for most products and services including telecom. The
characteristics of the market in terms of low and spread out population and limited
purchasing power make it a difficult market to capture. The Bottom of the pyramid marketing
strategies and the 4 A's model of Availability, Affordability, Acceptability and Awareness
provide us with a means of developing appropriate strategies to tackle the marketing issues
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for marketing telecom services in rural areas. Successful cases like the Grameen Phone in
Bangladesh and Smart Communications Inc in Philippines also provide us with some
guidelines to tackling the issue (Rajesh K Aithalof IIM, 2001).
The economic growth in India's agricultural sector in last year was over 7%, compared with
3% in the industrial sector. This implies a huge market potentiality for the marketer to meet
up increasing demand. Factors such as village psyche, strong distribution network and market
awareness are few prerequisites for making a dent in the rural markets. The model is of the
stolid Anglo-Dutch conglomerate Unilever Group, which has enjoyed a century-long
presence in India through its subsidiary Hindustan Lever Ltd. It was Hindustan Lever that
several years ago popularized the idea of selling its products in tiny packages. Its sachets of
detergent and shampoo are in great demand in Indian villages. Britannia with its low priced
Tiger brand biscuits has become some of the success story in rural marketing (According to
Pradeep Tognatta, (former vice president of LG, 2001)
Consumer Behaviour Christopher studied the shopping habits of consumers to form an idea
of whether or not the store concepts, product ranges and strategies of the companies are
appropriate towards consumer requirements. He believed that consumer behaviours are
unpredictable and changing continuously changing; while trying to under try to understand
how individual or group make their decision to spend their available resources on
consumption-related items. These are factors that influence the consumer before, during, and
after a purchase (Schiffiman and Kanuk, 1997), for example, feedback, from other customers,
packing, advertising, product appearance, and price (Peter &Olsonetc, 2005).
The essence of this approach is critical for organisational success, so that they can have a
better understanding of their customer behaviours (Solomon et al., 2006). The physical action
or behaviour of consumer and their buying decision every day can be measured directly by
marketers (Papanastassiu and Rouhani, 2006). For that reason many organisations these days
are spending lot of their resources to research how consumer makes their buying decision,
what they buy, how much they buy, when they buy, and where they buy (Kotler, Amstrong,
2001). To get a well coherent result, organisations normally looked at these behaviour base
their analysis on difference conceptions; whether customers buying behaviour were measured
from different perspectives, such as product quality and better service, lower price structured
etc(Papanastassiu and Rouhani, 2006).
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Different theories and researchers have claimed that when organisation fully meet all aspects
of its customer needs, the result enhances their profitability (Chaudhuri, 2006), and also
enable them to develop a better tackling strategies for consumer (Asseal, 1998). Possibly, the
most challenging concept in marketing deals with the understanding why buyers do what they
do and what method or philosophy are they using to evaluate the product after the
transactions and what might be the effect on future transaction (Schiffman, 2004). The reason
why marketer chooses to learning about consumers” buying behaviour is, from a business
perspective; to be able to be more effectively reach consumers and increase the chances for
success (Sargeant& West, 2001). Therefore the field of consumer behaviour has take a
tremendous turn in the commercial world and became the fundamental concepts of achieving
company goal (Schiffman and Kanuk, 2007).
This kind of buying behaviours significantly involved the consumers when making a
purchase decision. This kind of buying behaviours demand consumer to highly involve
within the process. In case of high involvement, consumers distinguish salient differences
among the competing brands (Kotler, Wong, Saunders, Armstrong, 2005).
This phenomenon is particularly essential for Dixons consumers to highly involve, and
engage in extensive research about the product category and make a good purchase decision
about the firm own manufacturing products, in case they invent a new technology electronics
products or audio-video equipment that is too expensive(Kotler, Wong, Saunders,
Armstrong, 2005).
Contrariwise, in this type of buying behaviour consumers have lesser levels of involvements.
It implies that consumer do not have to bother to retrieved information about the available
products and brands in the market. So therefore, there are no potential differences between
the different brands. Whether this factor will have damaging effects on Dixons will be
analyse at the findings and analysis chapter below. Because of the less level of involvement,
in habitual buying behaviour consumers don’t often go to the stores to purchase product,
(Kotler, Wong, Saunders, Armstrong, 2005).
In the early days pricing was composed solely of strict calculations. These calculations were
only based on information about costs. Nowadays things havebecome different. Pricing has
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grown to be a crucial management decision whichinvolves more than just the cost structure of
the assembly process and the rawmaterials, so called cost-plus pricing (Diller ,2003).
The impact of pricing on a manager’s decision process is still enormous. Especially pricing in
the Internet receives growing attention as this market promises higher returns. Various
pricing strategies and tools may also facilitate benefits for both sellers and
buyers(Simon ,1992).
Pricing may mark the focus of most marketing strategies. Finally, the price determines
crucially whether a product will be bought, or if it will be bought the remaining question is
where to buy, which is also determined by the price. Costs, especially search costs and
transaction costs, determine additional differences to traditional markets (Reynolds, 2002).
A number of studies found that improvements in quality and service will lower online
consumers’ price sensitivity even below offline consumers’ price sensitivity. Lynch and
Ariely found also less price sensitivity online if competing shops offer a non-overlapping
assortment. They even argue that increased transparency, i.e. easier price comparison, fast
and appropriate information, will not increases price sensitivity (Shankar, 1999).
However, some believed that if the consumer persistently purchasing the same product
repeatedly, it becomes habit and their mindsets and perceptions changes overtime about the
brand and the provider (Cohen and Manion, 1987).
This conception will portray the consumer to have unconscientiously developed a brand
loyalty to that particular brand due to the consumer regular buying habits (Cohen
andManion, 1987).
This emphasises a trade-off circumstances. The common value terms often involve in the
trade-off between quality and price, which also may also be defined the ‘value-for-money
between quality and price, which also may defined the ‘value-for-money perspective (Change
and Wildt, 1994; Hansen, 2001; Sweeney and Soutar, 2001). Zeithaml (1988) and Levy
(1999) purpose that consumers are ‘value driven’. Zeithaml (1988) claims that customer’s
perceived value may be seen as a reacting of the overall evaluation of the consumption of a
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product or service based on perceptions of what is received and what is
given(Zeithaml,1988).
On the other hand, the value emerges partly from what consumers perceive they are receiving
and partly from what consumers perceived they are giving.Moreover, Blackett and Robins
(2001) consistently said that the key drivers of demand for products are
awareness/familiarity, perceived quality, sales quality and price. These tool drivers influence
the perception of customer in term of the decision making(Blackett andRobins (2001).
In contrast, transparency in the online sales channel would cause consumers to bemore price
sensitive in the online channel than in the offline channel. This mayusually happen if the
assortment of the shops is very similar and therefore consumers tend to choose the cheaper
shop (Lynch, 2000).
It seems that price elasticity is strongly determined by the product class. Homogeneous
products will show higher price elasticity compared to products whichcan be differentiated by
their features. This asymmetry may also be the outcomeof different search frictions. A second
impact may stem from overlapping assortments. The higher the overlap the higher
consumers’ price elasticity may be (Goolsbee, 2000).
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CHAPTER = 4
JUSTIFICATION OF THE STUDY:-
This study helps in understanding the strategies being followed by the PatanjaliAyurved ltd.
and other companies selling branded products for pricing their products. The study further
help in describing the differences in the prices of the similar products priced under different
brand names. A wrong pricing decision increases the cost and decreases the profits of the
company as the customers shift to the cheapest product available in the market with
competitive quality and features. These all-practical points are very difficult to understand
through books therefore this study provides a practical knowledge on the pricing strategies
should followed.
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HYPOTHESIS
Chi-square test: - Chi-square test is used when the set of observed frequencies obtained after
experimentation have to be supported by hypothesis or theory. The test is known as X 2- test
of goodness of fit and is used to test if the deviation between observation (experiment) and
theory may be attributed to chance (fluctuations of sampling).Here we have the assumption of
H0 and H1. If the values come in accordance to the depicted values then the hypothesis is
accepted else it’s rejected.
S(O-E) 2
χ2= ——— where,
O = Observed frequency
E = Expected frequency
Hypothesis of the study:
Let us take null hypothesis thatthere is no association between the ventilated and good
environment with regular cleaned work place.In this research hypothesis is used. According
to chi-square test,
H0: satisfied with prices of the products charged by PatanjaliAyurved.
H1: not satisfied with prices of the products charged by PatanjaliAyurved.
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CHAPTER –5
INTRODUCTION TO INDUSTRY
Introduction To Ayurveda:-
Ayurveda can defined as a system, which uses the inherent principles of nature, to help
maintain health in a person by keeping the individual's body, mind and spirit in perfect
equilibrium with nature.
Ayurveda is the combination of two words:
Ayur-Veda:-
Ayur:- Meaning The Whole Lifespan
Veda: -Meaning Total Knowledge
“Thescience of Ayurveda, therefore, encompasses the total knowledge of the whole

Lifespan”.
The science that describes what is appropriate and inappropriate, happy or unhappy life, and
describes the guidelines for what is essential and irrelevant for a long life, and everything
about life, called Ayur-Veda.
Although Ayurveda has been practiced in India for at least 5,000 years, it has become a
popular form of alternative medicine in the west in times that are more recent. The theory
behind Ayurvedic medicine is taken from several sacred Indian Sanskrit texts written
between 1500 BC and 400 AD and it is thought be one of the oldest forms of healing system.
Aims and objectives of Ayurveda have been divided into two aspects namely:
 SwasthasyaSwathyaRakshanam (Preventive and Social medicine)

 AturasyaVikarPrashamanam (Therapeutics)
Ayurveda objective is to help the healthy person to maintain good health and the diseased
person to regain good health. The practice of Ayurveda is designed to promote human
happiness at physical, mental and spiritual level. The proper balance of all vital energies in
the body can reduce the processes of physical deterioration and disease. This is
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accomplished through proper eating, thinking and living habits as well as the use of herbal
remedies to treat illness.
“SamadoshaSamagnishchaSamaDhata Mala Kriya.

prassannaatmaindriyamanahswasthaitiabhideyate.
(SushrutaSamhita)
Ayurvedic: The Indian System of Medicine:-
Ayurveda was practiced in the southern Himalayan region 3000 to 5000 years ago. An
attempt at serious study of Ayurveda clearly reveals high conceptual content. The concept of
Universality of matter and man being an integral part of the Universe is influenced by and
responds of the Universal rhythm, is very fascinating.
Many universities in India offer formal education in Ayurveda. Students joining these degree
courses get education in modern science until they join these courses. But they are unable to
appreciate the basis of Ayurvedic methods of diagnosis and treatment mainly because there is
no attempt at experimental validation of these methods. When many of these graduates go
into practice, they use modern medicines. They also use commercially available
Ayurvedic/Herbal remedies but generally ignore basic Ayurvedic principles.
Ayurveda can defined as a system, which uses the inherent principles of nature, to help
maintain health in a person by keeping the individual's body, mind and spirit in perfect
equilibrium with nature.
Ayurveda is considered by many scholars to be the oldest healing science. In Sanskrit,

Ayurveda means "The Science of Life." Ayurvedic knowledge originated in India more than
5,000 years ago and is often called the "Mother of All Healing." It stems from the ancient
Vedic culture and was taught for many thousands of years in an oral tradition from
accomplished masters to their disciples. Some of this knowledge was set to print a few
thousand years ago, but much of it is inaccessible. The principles of many of the natural
healing systems now familiar in the West have their roots in Ayurveda, including
Homeopathy and Polarity Therapy.
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Ayurveda places great emphasis on prevention and encourages the maintenance of health
through close attention to balance in one’s life, right thinking, diet, lifestyle and the use of
herbs. Knowledge of Ayurveda enables one to understand how to create this balance of body,
mind and consciousness according to one’s own individual constitution and how to make
lifestyle changes to bring about and maintain this balance.
Just as everyone has a unique fingerprint, each person has a particular pattern of energy—an
individual combination of physical, mental and emotional characteristics—which comprises
their own constitution. This constitution is determined at conception by a number of factors
and remains the same throughout one’s life.
Many factors, both internal and external, act upon us to disturb this balance and are reflected
as a change in one’s constitution from the balanced state. Examples of these emotional and
physical stresses include one’s emotional state, diet and food choices, seasons and weather,
physical trauma, work and family relationships. Once these factors are understood, one can
take appropriate actions to nullify or minimize their effects or eliminate the causes of
imbalance and re-establish one’s original constitution. Balance is the natural order; imbalance
is disorder. Health is order; disease is disorder. Within the body there is a constant interaction
between order and disorder. When one understands the nature and structure of disorder, one
can re-establish order.
ORIGIN OF AYURVEDA
Historians have not pinpointed the exact time Ayurveda came into being. Most agree that
Ayurvedic classical texts were written in India between 3,500 and 5,000 years ago, though
some suggest an even longer history.
LEGEND
The origins of this system of course are lost in time. In legend it is said to have been taught
by the creator, Brahma, to the PrajapatiDaksha. (One of the lords of the animals) who taught
it in turn to the divine twins called the Ashwinikumars.
Ashwinikumars are the heavenly healers. They -taught Indra, the chief of the shining ones.
The personages mentioned were deities of early Vedic times. When mankind started suffering
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from various diseases the wise men like Bharadvaja learnt from Indra the knowledge of
medicine. Gradually the huge amount of knowledge accumulated was divided systematically
into different branches.
The basic difference between Ayurveda and Western allopathic medicine is important to
understand. Western allopathic medicine currently tends to focus on symptomatology and
disease, and primarily uses drugs and surgery to rid the body of pathogens or diseased tissue.
Many lives have been saved by this approach. In fact, surgery is encompassed by Ayurveda.
However, drugs, because of their toxicity, often weaken the body. Ayurveda does not focus
on disease. Rather, Ayurveda maintains that all life must be supported by energy in balance.
When there is minimal stress and the flow of energy within a person is balanced, the body’s
natural defence systems will be strong and can more easily defend against disease.
What is unique about Ayurveda ?
There are several aspects to Ayurveda that are quite unique:
Ayurveda offers reference points for managing treatment decisions specific to each case.
Ayurvedic theory is profoundly useful in analysing individual patient constitution and
understanding variations in disease manifestation.
The Ayurvedic framework can be used to structure working models of the unique state of
each patient, and to project a vision or goal for a whole state of health, again unique to each
case.
Ayurveda offers specific recommendations to each individual on lifestyle, diet, exercise and
yoga, herbal therapy, and even spiritual practices to restore and maintain balance in body and
mind. Ayurveda sees a strong connection between the mind and the body, a huge amount of
information is available regarding this relationship.
This understanding that we are all unique individuals enables Ayurveda to address not only
specific health concerns but also offers explanation as to why one person responds differently
than another.
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It must be emphasized that Ayurveda is not a substitute for Western allopathic medicine.
There are many instances when the disease process and acute conditions can best be treated
with drugs or surgery. Ayurveda can be used in conjunction with Western medicine to make a
person stronger and less likely to be afflicted with disease and/or to rebuild the body after
being treated with drugs or surgery.
USE of AMA in AYURVEDA
Ama is a peculiar concept in Ayurveda (for which modern chemistry has no correlate). It is
an important factor in a cause of disease and in modification of disease process.
Role of Ama:-
Ama originates from improperly digested toxic particles that clog the channels in your body.
Some of these channels are physical and include the intestines, lymphatic system, arteries and
veins, capillaries, and genitourinary tract. Others are nonphysical channels called nadis
through which your energy flows. Ama toxicity accumulates wherever there is a weakness in
the body, and this will result in disease
Causes of 'Ama' production :
 Agnimandya -Low digestive fire:-
Normal activity of digestive fire is essential for the complete and proper digestion of food.
But due to low digestive fire the food is not properly digested, and toxic product is formed.
Therefore its absorption becomes sluggish and it gets retained in the intestine for a longer
time. Due to this retention it becomes fermented or even putrefied. This toxic product
remains unabsorbed in the intestine because of its incomplete digestion and it is the root
cause of all diseases. ( Ash. Su. 13 /23)
 Dhatu-agnimandya:-
Tissue fire plays an important role in the process of formation of tissues from the nutrient
substances (of the particular dhatu). Hence when the power of the tissue fire of a particular
tissue is diminished, either in the liver or in a particular channel, the formation or utilization
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of that tissue becomes incomplete and ama is produced. Such tissues containing ama are
called Sama tissues-tissues with ama. This type of pathology is seen in various diseases. In
diabetes, fat and muscle tissues are formed as "Sama tissues" because of the low tissue fire of
the fat and muscle tissues. Hence the normal functional activities of these tissues are
hampered. In obesity a similar type of fat tissue is produced due to low tissue fire of fat
tissue. A peculiar thing observed in these two conditions is that, though there is low tissue
fire, there is no associated low digestive fire; on the contrary digestive fire becomes sharper.
In all other types of low tissue fire there is an associated low digestive fire. (Ch. Ni. 4/7
Chakrapani)
 Mala Sanchaya - Accumulation of waste products:-
Agni is the energy responsible for transformation of food substances into body tissues. In the
first stage it produces nutritious substance, which is converted to tissues in the second phase
of digestion, which is called secondary or tissue digestion. Here the action of tissue fire takes
place on nutrient food substances, and different tissues are produced. This is the anabolic
activity of tissue fire. (M.N.)
The tissues produced by this process are utilized for the liberation of energy required for each
activity of the body. During this process the tissue substances are again digested,
disintegrated, and utilized for the liberation of heat and energy by the tissue fire. This is the
catabolic process. During this activity of disintegration of tissues certain minute waste
products are formed. They are called subtle waste products or kleda. Up to a certain limit, the
existence of these is essential for the body, and the excess is excreted from the body. When
this excretion becomes inadequate due to excessive production or its defective excretion, it
gets accumulated in the body-which results in the formation of toxic substance- Ama.
 Doshasammurcchana - Interaction or amalgamation between vitiated doshas:-
Every dosha has certain qualities, which are antagonistic to the qualities of other doshas-e.g.
the dry and light qualities of Vata are antagonistic to the oily and heavy qualities of Kapha.
Similarly the hot quality of Pitta is antagonistic to the cold quality of Kapha and Vata.
Therefore when two or three doshas become severely vitiated and combined, they produce
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interaction between them. In such conditions opposite qualities, instead of nullifying each
other interact
We all have times when we don’t feel well and recognize that we’re out of balance.
Sometimes we go to the doctor only to be told there is nothing wrong. What is actually
occurring is that this imbalance has not yet become recognizable as a disease. Yet it is serious
enough to make us notice our discomfort. We may start to wonder whether it is just our
imagination. We may also begin to consider alternative measures and actively seek to create
balance in our body, mind and consciousness.
Ayurveda offers reference points for managing treatment decisions specific to each case.
Ayurvedic theory is profoundly useful in analysing individual patient constitution and
understanding variations in disease manifestation.
The Ayurvedic framework can be used to structure working models of the unique state of
each patient, and to project a vision or goal for a whole state of health, again unique to each
case.
Ayurveda offers specific recommendations to each individual on lifestyle, diet, exercise and
yoga, herbal therapy, and even spiritual practices to restore and maintain balance in body and
mind. Ayurveda sees a strong connection between the mind and the body, a huge amount of
information is available regarding this relationship.
This understanding that we are all unique individuals enables Ayurveda to address not only
specific health concerns but also offers explanation as to why one person responds differently
than another.
Just as everyone has a unique fingerprint, each person has a particular pattern of energy—an
individual combination of physical, mental and emotional characteristics—which comprises
their own constitution. This constitution is determined at conception by a number of factors
and remains the same throughout one’s life.
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is disorder. Health is order; disease is disorder. Within the
body there is a constant interaction between order and disorder.
Introduction To FMCG Industry
Fast Moving Consumer Goods:-
Products, which have a quick turnover, and relatively low cost, are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year.
Examples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products,
and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged
food products, soft drinks, tissue paper, and chocolate bars.
Subsets of FMCGs are Fast Moving Consumer Electronics which include innovative
electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and
Laptops. These are replaced more frequently than other electronic products. White goods in
FMCG refer to household electronic items such as Refrigerators, T.Vs, Music Systems, etc.
The FMCG Industry:-
The overall fast moving consumer goods (FMCG) market is expected to increase at a
compound annual growth rate (CAGR) of 14.7 per cent to touch US$ 110.4 billion in the
period 2012-2020, with the rural FMCG market anticipated to increase at a CAGR of 17.7
per cent to US$ 100 billion during 2012-2025.
The market size of the Indian FMCG sector is expected to reach US$ 135 billion by 2020
from US$ 44.9 billion in 2013. It is also the fourth largest sector in the Indian economy and
has grown at an annual average of about 11 per cent over the last decade. Food products, the
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leading market segment with 43 per cent of the overall market revenue together with personal
care at 22 per cent make up two-thirds of the sector's revenue.
The Government of India's policies and regulatory frameworks such as relaxation of license
rules and approval of 51 per cent foreign direct investment (FDI) in multi-brand and 100 per
cent in single-brand retail are some of the major growth drivers in this sector. The
government has also amended the Sugarcane Control Order, 1966, and replaced the Statutory
Minimum Price (SMP) of sugarcane with Fair and Remunerative Price (FRP) and the State
Advised Price (SAP).
There is a lot of scope for growth in the FMCG sector from rural markets with consumption
expected to grow in these areas as penetration of brands increases. Also, with rising per
capita income, which is projected to expand at a CAGR of 7.4 per cent over the period 2013-
19, the FMCG sector is anticipated to witness some major growth.
Automatic investment approval (including foreign technology agreements within specified

norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate
Bodies (OCBs) investment, is allowed for most of the food processing sector.
FMCG industry,alternatively called as CPG (Consumer packaged goods) industry primarily
deals with the production, distribution and marketing of consumer packaged goods. These are
products that have a quick turnover, and relatively low cost. Consumers generally put less
thought into the purchase of FMCG than they do for other products. Though the absolute
profit made on FMCG products is relatively small, they generally sell in large numbers and
so the cumulative profit on such products can be large. Some of the prime activities of FMCG
industry are selling, marketing, financing, purchasing, etc. The industry also engaged in
operations, supply chain, production and general management.
FMCG industryprovides a wide range of consumables and accordingly the amount of money
circulated against FMCG products is also very high. The competition among FMCG
manufacturers is also growing and as a result of this, investment in FMCG industry is also
increasing, specifically in India, where FMCG industry 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.

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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.
Laptops. These are replaced more frequently than other electronic products.
White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs, Music
Systems, etc.
GROWTH PROSPECTS
The growth of the Indian FMCG industry is fuelled by the rising incomes and growing youth
population. Furthermore, brand consciousness has also aided rising demand of the products.
According to market research, it has been projected that First Time Modern Trade Shoppers
(FTMTS) spend will reach USD 1 billion by 2015. With healthy foreign direct investments
(FDI) inflow, the sector alone accounted for 3% of the country’s total FDI inflow from 2009
to 2013.
One of the largest growing economies in the world in terms of purchasing power and
increased consumer spending, India ranks second only to China. Over the last five years, the
FMCG sector has grown at an average of 11% annually. Segmented further into food and
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beverages, household care and personal care, the Indian FMCG market is the fourth biggest
market segment in the Indian economy. In 2014, growth will be further boosted by the rise in
disposable incomes among rural dwellers due to direct cash transfer schemes. The market has
a great opportunity for growth in the country, mainly due to increased rural consumption,
rising disposable income, growing population, urbanization, growing modern retail and
consumption driven society.
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CHAPTER – 6
MARKET OVERVIEW
With policy makers giving investment approvals of up to 100% foreign equity in single brand
retail and 51% in multi brand retail, and initiatives like Food Security Bill and direct cash
transfer subsidies reaching about 40% of households in India, the Indian FMCG market is
expected to experience strong growth. To cite an instance, with these initiatives, the retail
market in India is estimated to reach USD 450 billion by 2015 with organized retail
accounting for 14 to 15% share which is expected to boost revenues of FMCG companies.
The major drivers for this segment are the urban cities who accounts for over two thirds of
total revenue. However, the semi-urban and rural segments are also growing at a rapid pace
and currently accounts for 33.5% of revenues. Furthermore, the rising number of middle class
and the rich has accelerated the purchase of premium products.
All these growth prospects are making Indian FMCG companies consolidate their existing
portfolios. Furthermore, several companies have also started innovating and customizing their
existing product portfolios for new consumer segments, as market experts indicate that
consumers are becoming more conscious and prefer lifestyle and premium range products,
given the rise in disposable income. Lastly, seeing the potential of the market, companies too
are focusing on the rural market segment, which is growing at a rapid pace, and contributing
about 33% of the total FMCG market.
Common FMCG products:-
Some common FMCG product categories include food and dairy products, glassware, paper
products, pharmaceuticals, consumer electronics, packaged food products, plastic goods,
printing and stationery, household products, photography, drinks etc. and some of the
examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts, detergents,
tobacco and cigarettes, watches, soaps etc.
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Market potentiality of FMCG industry:-
Some of the merits of FMCG industry, which made this industry as a potential one, are low
operational cost, strong distribution networks, presence of renowned FMCG companies.
Population growth is another factor which is responsible behind the success of this industry.
Leading FMCG companies
Some of the well-known FMCG companies are:

 Hindustan Unilever.
 Colgate- Palmolive.
 ITC Limited.
 Nestle.
 Parle agro.
 Britannia Industries Limited.
 Marico Limited.
 Procter & gamble.
 Godrej Group.
 Amul.
CATEGORIES OF FMCG
Industry AttributesType of ProductsCompany Name
House hold CareSoaps, Detergents, HouseholdP&G,HUL,Nirma,ITC,

Cleansers, MosquitoDabur.
Repellents
Personal CareOral Care, Skin Care, HairP&G, HUL, Nirma, ITC,

Care, Soaps, Toiletries,Lakme, Marico, Himalaya,
Cosmetics, Deodorants,Emami, Dabur, Colgate-
Female Hygiene Products.Palmolive.
Food and BeveragesFOOD: Staples/Cereals, Coca-Cola,PepsiCo,

Bakery products, Ice CreamDabur,GlaxoSmithKline,
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Chocolate, Braded sugar,Khaitan,United
Branded Flour.Breweries.
Product Characteristics:-
Products belonging to the FMCG segment generally have the following characteristics:
 They are used at least once a month
 They are used directly by the end-consumer
 They are non-durable
 They are sold in packaged form
 They are branded
Industry Segments:-
The main segments of the FMCG sector are:
 Personal Care:
Oral care; hair care; skin care; personal wash (soaps); cosmetics and toiletries; deodorants;
perfumes; paper products (tissues, diapers, sanitary); shoe care.
 Household Care:
Fabric wash (laundry soaps and synthetic detergents); household cleaners (dish/utensil
cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellants,
metal polish and furniture polish).
 Branded and Packaged Food and Beverages:

Health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack
food; chocolates; ice cream; tea; coffee; processed fruits, vegetables and meat; dairy
products; bottled water; branded flour; branded rice; branded sugar; juices etc.
 Spirits and Tobacco:

An exact product-wise sales break up for each of the items is difficult.
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CHAPTER – 7
INTRODUCTION TO COMPANY
Patanjali Ayurved Ltd.
PatanjaliAyurved Ltd is not a company. It is a CONCEPT – a concept that links the rising
destiny of millions of rural masses on the one hand and many more suffering the onslaught of
the unhealthy urban life style on the other.
It is all about economically processing organic farm produce into daily use consumables
ranging from Ayurvedic health supplements to Foods and cosmetics and then supplying them
largely to the urban world. The produce will be picked up right from the farms, thereby
increasing the effective income of the farmers. The health based products will then be made
available to a large population in the urban areas that is reeling under the scourge of polluted
food items and artificial drinks that make them vulnerable to a variety of cronic diseases. And
all this at a cost that is unmatched in the market.
PitanjaliYogpeeth Trust (PYPT), a non profit organisation started by Swami Ramdev, aims
to carry out welfare activities in the spheres of health care, education and other socio-
economic activities. Pitanjali drives its social responsibility initatives through PYPT.
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The consequential benefits are no less crucial to the humanity. Backed by a robust preaching
and promotion on the popular Astha channel by the world renounced Yoga Guru Swami
Ramdevji and an international authority on Ayurveda and traditional herbs Acharya
Balkrishanji, it is all about reinventing our traditional knowledge of Yoga and Ayurvedic,
rejuvenation of rural economy, arrest of the flight of rural job seekers to the more demeaning
urban slums, strengthening the health grid of the nation and the world, mending the
environmental imbalance…and finally fighting the tirade of western culture on Indian
panorama.
++++Systems, etc.
PATANJALI AYURVED Ltd is a company that functions like all other companies under
the regulations of the company law affairs, yet is constantly striving for nation building more
than the profit accumulation.
At micro level the challenge is no less herculean. Along with PRANAYAM, the wisdom of
our ancient sages, the organic food products and herbal medicines churned out of this unit,
undertake to fight out the dreaded and incurable diseases like CANCER and AIDS. Claim for
having found a lasting cure for many other relatively more rampant but equally tormenting
diseases like Dainties, Arthritis and Thyroid is already established with thousands of patients
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cured with satisfaction.
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 improvement in the quality of life of all beings, world over, is the purpose behind our
being. Getting rid 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 achieve by providing
our people the eatables that are cultivated in organic and natural manures and pest repellents.
The assortment of Ayurved medicines along with Pranayam, 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, to be born and deliver it to the humanity, by
establishing PATANJALI AYURVED Ltd.
Just as everyone has a unique fingerprint, each person””individual combination of physical,

mental and emotional characteristics—which comprises their own constitution. This
constitution is determined at conception by a number of factors and remains the same
throughout+t one’s life.
is disorder. Health is order; disease is disorder. Within the body there is a constant interaction
between order and disorder. When one understands the nature and structure of disorder, one
can re-establish order.
VISION AND VALUES
The principle ideology of Swami RamdevjiMaharaj is to take knowledge, prosperity, success,

empire, wealth and glory as the ‘prasada’ of ‘guru’ and ‘bhagwatkripa’ and always remain
without any arrogance.
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Patanjali Vs Other Brands
Product Brands of Patanjali Some of the competitive

brands
Sharbat / Squash Amla, Bel, Gulab, Keshar, Kissan, Squash, Rooh-afza,
Badam, Orange, Nimbu, Minute Maid, Rasna.
Mango.
Juice Aloe Vera, Anar, Amla, Real, Priyagold, Godrej and
Orange. Kissan juices.
Jam Apple, Pineapple, and Mix Kissan, SIL, Tops, Druk.
Fruit Jam.
Salt SaindhaNamak. Tata, Annapurna.
Chyawanaprash Sada, Special Chyawanprash. Dabur, Baidyanath,
ZandukesariJiwan.
Flour ArogyaAata. Aashirwad, Annapurna.
Candy Amla, Anardana. DaburHazmola.
Hindustan Unilever limited:-
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
Company with a heritage of over 80 years in India. As per Nielsen market research data,
touches the lives of two out of three Indians.HUL works to create a better future every day
and helps people feel good, look good and get more out of life with brands and services that
are good for them and good for others.
With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos,
skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and
water purifiers, the Company is a part of the everyday life of millions of consumers across
India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin,
Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent,
Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.
The Company has over 16,000 employees and has an annual turnover of around Rs.
27,408.29crores (financial year 2013 - 2014). HUL is a subsidiary of Unilever, one of the
Page | 32
world’s leading suppliers of fast moving consumer goods with strong local roots in more than
100 countries across the globe with annual sales of 49.8 billion in 2013. Unilever has 67.25%
shareholding in HUL. Its basic EPS is Rs17.88 per share. It is owned by the british- dutch
company “Unilever” and has about 52% majority stake in Hindustan Unilever limited.
HUL is the market leader in Indian consumer products with presence in over 20 consumer
categories such as soaps, tea, detergents and shampoos amongst others with over 700 million
Indian consumers using its products. Eighteen of HUL’s brands featured in the Brand Equity
list of 100 Most Trusted Brands Annual Survey (2014).
The company has a distribution channel of 6.4 million outlets and owns 35 major Indian
brands. Its brands include:
Food brands:
 Annapurna salt and atta

 Bru coffee
 Brooke Bond (3 Roses, TajMahal, Taaza, Red Label) tea
 Kissan squashes, ketchups, juices and jams
 Lipton tea
 Knorr soups & meal makers and soupy noodles
 Kwality Wall's frozen dessert
 Modern Bread, ready to eat chapattis and other bakery items
 Magnum
Homecare Brands:-
 ActiveWheel detergent
 Cif Cream Cleaner
 Comfort fabric softeners
 Domex disinfectant/toilet cleaner
 Rin detergents and bleach
 Sunlight detergent and colour care
 Surf Excel detergent and gentle wash
 Vimdishwash
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 Magic – Water Saver
Personal Care Brands:-
 Aviance Beauty Solutions

 Axe deodorant and aftershaving lotion and soap
 LEVER Ayush Therapy ayurvedic health care and personal care products
 Breeze beauty soap
 Clear anti-dandruff hair products
 Clinic Plus shampoo and oil
 Close Up toothpaste
 Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant
deodorants
 Denim shaving products
 Fair & Lovely skin-lightening products
 Hamam
 Lakmé beauty products and salons
 Lifebuoy soaps and handwash range
 Liril 2000 soap
 Lux soap, body wash and deodorant
 Pears soap
 Pepsodent toothpaste
 Pond'stalcs and creams
 Rexona soap
 Sunsilk shampoo
 Sure anti-perspirant
 Vaseline petroleum jelly, skin care lotions
 TIGI
 TRESemme
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Logo:-
Vision:-
Unilever is a unique company, with a proud history and bright future. We have ambitious
plans for sustainable growth and an intense sense of social purpose.
 We help people feel good, look good and get more out of life with brands and services
that are good for them and good for others.
 We will inspire people to take small everyday actions that can add up to a big
differences for the world.
 We will develop new ways of doing business with the aim of doubling the size of our
company while reducing our environmental impact.
BRANDS
HUL was ranked 47th in the Brand Trust Report2014 published by Trust Research
Advisory. 36 HUL brands also featured in the list including Lux, Dove, Lipton, Vim, Bru,
Rexona, Close up, Clinic Plus, Pond’s, Knorr and Pepsodent among others.
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DISTRIBUTIOM CHANNEL
 HUL products are distributed thought 7000 redistribution stockiest.
 It is linked with 1 million retail outlets.
 The network that HUL has is its one of the biggest strength.
 HUL’s product is available throughout the country.
HUL
C&FA
STOCKIEST
CDs CANTEEN RETAIL OUTLET MODERN
CUSTOMER CUSTOMER
CUSTOMER
Page | 36
QUALITY POLICY
Unilever’s mission is to meet everyday needs for nutrition; hygiene and personal care with
brands that help people feel good, look good and get more out of life. And a key requirement
is building in the quality expectations of our consumers into our products.
To win consumers’ confidence and loyalty, we need to consistently deliver branded products
of excellent quality. We understand the different needs of our consumers and customers and
strive to develop and deliver superior brands to ensure that they are the preferred choice. In
addition, by applying consistently high standards, we are able to do things right first time, cut
waste, reduce costs and drive profitability.
Our Quality Policy describes the principles that everyone in Unilever follows, wherever they
are in the world, to ensure that we are recognised and trusted for our integrity, the quality of
our brands and products, and the high standards we set.
Principles of the Quality Policy:-
 Putting the safety of our products and our consumers first:-
We have stringent mandatory quality standards in place against which compliance is verified
through regular audits and self-assessments. These standards ensure we design, manufacture
and supply products that are safe, of excellent quality, and conform to the relevant industry
and regulatory standards in the countries in which we operate. Comprehensive management
procedures are in place to mitigate risks and to protect our consumers and markets.
 Putting consumers and customers at the heart of our business:-
We actively engage our consumers and customers, translating their needs and requirements
into our products and services, thus creating consumer value wherever we position our
products. This is at the very heart of our innovation process.
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Quality is a shared responsibility:-
Quality and consumer safety is the responsibility of every Unilever employee and Unilever
demonstrates visible and consistent leadership to meet this policy. The drive for quality, in all
that we do, is a passion reflected in our brand development, manufacturing and customer
service processes and is expected of our business partners. We collaborate with stakeholders
to provide leadership, promote transparency and share best practice. In addition,we have
forged effective working relationships with suppliers and contract manufacturers.
 Maintaining excellent systems to ensure the quality and safety of products:-

It is proactively and continuously developing our systems and processes to ensure quality
and safety throughout the whole value chain, and we are setting a benchmark for the
business. We provide appropriate training and resources, and will ensure that we deliver
our quality objectives and targets. We regularly measure and improve our performance
using both internal and external measures.
It actively promote our Quality Policy and have a quality assurance organization in place to
ensure consistency and visibility of quality standards, processes and performance indicators
across all Unilever businesses at all levels, and to anticipate and develop future quality
capability requirements.
Systems, etc.
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They actively engage our consumers and customers, translating their needs and requirements
into our products and services, thus creating consumer value wherever we position our
products. This is at the very heart of our innovation process.
Proctor and gamble:-
P&G is one of the largest and amongst the fastest growing consumer goods companies in
India.
P&G is one of the largest and amongst the fastest growing consumer goods companies in
India. Established in 1964, P&G serves approximately 4.6 billion people around the world
with its brands. Its presence pans across the Beauty & Grooming segment, the Household
Care segment as well as the Health & Well Being segment, with trusted brands that are
household names across India. The company has one of the strongest portfolios of trusted,
quality, leadership brands, including Pampers, Tide, Ariel, Always, Whisper, Pantene,
Mach3, Bounty, Dawn, Fairy, Gain, Charmin, Downy, Lenor, Iams, Crest, Oral-B, Duracell,
Olay, Head & Shoulder, Wella, Gillette, Braun, Fusion, Ace, AmbiPur, Febreze, SK-II and
Vicks. Superior product propositions and technological innovations have enabled P&G to
achieve market leadership in a majority of categories it is present in. The P&G community
includes operations in approximately 70 countries worldwide. P&G India is committed to
sustainable growth in India, and is currently invested in the country via its five plants and
over nine contract manufacturing sites, as well as through the 26,000 jobs it creates directly
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and indirectly. Our sustainability efforts focus on Environmental Protection as well as Social
Responsibility to help develop the communities we operate in.
P&G operates under three entities in India - two listed entities “Procter & Gamble Hygiene
and Health Care Limited” and ‘Gillette India Limited’, as well as one 100% subsidiary of the
parent company in the U.S. called ‘Procter & Gamble Home Products’.
William Procter and James Gamble founded Procter and Gamble Company (P&G), in
October 31, 1837. Both men were immigrants to the United States.
The company began by selling soap and candles, but after the invention of Edison's electric
light bulb in 1850, candle sales were so slow that they stopped production. Things looked up,
however, because the U.S. Government began to order loads of soap from Procter and
Gamble for Union soldiers during the Civil War.
With the increase of production demands, the company began to investigate more productive
and less time-consuming ways to make soap. That eventually led the firm to many more
innovative ideas and many more lines of soap, for hair, laundry, and eventually dishwashers.
Other kinds of products would be born as well.
A company is formed:-
The two men might not have met had they not married the sisters Olivia and Elizabeth Norris.
Their new father-in-law suggested that they become business partners. In 1837, the Procter
and Gamble Company were born.
With intentions of heading farther west than they managed, William Procter (emigrating from
England), and James Gamble (emigrating from Ireland), settled in Cincinnati, the "Queen
City of the West." Procter had a sick wife to look after, while Gamble had medical problems
of his own to overcome. Those factors compelled the future proprietors to "stay put," so that
destiny would ensure a great company in Ohio.
After Proctor's wife died of a terminal illness, he quickly prospered as a candle maker.
Meanwhile, Gamble was making ends meet as an apprentice soapmaker. A few months later,
on April 12th, 1837, Procter and Gamble started to make and sell mass quantities of candles
and soap.
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A company built of soap:-
In 1859, 22 years after the partnership was formed, P&G had reached $1 million in total
sales, in spite of declining candle sales. Fortunately, three years later during the Civil War,
Procter and Gamble was awarded numerous contracts to supply soap and candles to Union
armies. Those orders kept the factory of 80 employees busy day and night. The fact that P&G
supplied soldiers enhanced the company's reputation for heavy-duty quality. That was
reinforced when troops came home from the war carrying P&G's soap among their
belongings.
By the year 1879, a new generation of the company was emerging — while unveiling
improved ideas. Founders' sons Harley Procter and Norris Gamble helped to put a new spark
into P&G. Norris Gamble developed an inexpensive white soap equal to the former high-
quality, imported castles.
Inspiration for the soap is name — ivory — came to Harley Procter, where he would place
$11,000 towards well-spent advertising. The name became an ideal match for the soap's
virtual purity ("99 and 44/100ths percent pure"), mildness, and long-lasting quality. By 1890,
P&G was selling more than 30 types of soap, including Ivory.
The year 1890 also ended 53 years of the business as a partnership. The partners
incorporated, and raised additional capital for expansion. William A. Procter, one of two sons
of the founder, was then named the first president. P&G then set up one of the earliest
product research labs in America at Ivory dale (a newly constructed plant in Cincinnati) to
study and improve the soap-making process.
Expansion and Crisco:-
The year 1911 saw the introduction of P&G's new Crisco product, and by 1915, the company
built its first manufacturing facility outside of the United States, in Canada. The plant
employed 75 people.
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By 1943, following the passing of William C. Procter, new president Richard R. Dupree
continued the company's robust progress. The introduction of hair products and household
cleaning products gained the growing company even more ground, responding to an
increasing demand for daily consumer products. When Dupree took the helm in 1930, he did
not take long to supply the Far East with such products — by means of the Philippine
Manufacturing Company.
Household products and pharmaceuticals:-
P&G weathered the Great Depression and World War II kept it perking. Most people who
grew accustomed to P&G's convenience products could not put them down. What that
allowed was more research and development of past products as well as newly introduced
"conveniences."
By 1978, Procter and Gamble seemed to have covered all bases in household products. From
"Tide" laundry detergent to feminine products, P&G dominated the industry with company
expansions throughout Japan, China, Europe, and other parts of the world. The company's
introduction of pharmaceuticals in the form of Didronel (a treatment for Paget's disease),
spurred a further upward spiral of corporate profits.
LEADERSHIP BRANDS
P&G has 23 brands with annual sales of $1 billion to more than $10 billion, and 14 with sales
of $500 million to $1 billion- many of those with billion-dollar potential. Nearly all of
23billion-dollar brands and th vast majority of our $500 million to $1 billion brands hold the
number one of two position in their category or segment, and they all have significant growth
and value creation potential.
MISSION OF DIVERSITY AND INCLUSION
Everyone Valued, Everyone Included,

Everyone Performing at Their Peak.
P&G is a community of diverse, talented people who are integral to our company’s success.
It is at the core of being “in touch” so that it create brands and products to improve the lives
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of the world’s consumer now, and for generation to come.It is committed to creating a
winning culture.
What is the secret behind P&G’s market aggression?
As of June 30, 2014, P&G products are sold in more than 180 countries and territories around
the world through mass merchandisers, grocery stores, membership club stores, drug stores,
department stores, salons, e-commerce and high-frequency stores. Sales to Wal-Mart stores,
Inc. and its affiliates represent approx. 14% of total revenue in 2014, 2013 and 2012. The
main reason for P&G’s aggression is that it is still too small compared to giants like
Hindustan Unilever and even ITC, which has been feverishly diversifying away from
cigarettes into food and toiletries.
Total research and development expenses were $2.0 billion in 2014, 2013 and 2012. Total no
of employees at P&G are 118000 including manufacturing and non-manufacturing
employees. The total no of shares purchased was 6180000 for the quarter at the average price
$80.90 paid per share. Net sales in 2014 were $803,062.
HUL’s Ponds to counter P&G’s Olay, The Economic Times, and HUL is the market leader in
the 3500 crore skin care segment with popular mass brands such as Fair & Lovely and
Vaseline. Over the past three years, it has made efforts to flood the market with more
innovative and premium products such as Ponds anti-ageing and Vaseline whitening range,
priced between 500 and 1000, which is triggered by Olay’s spiralling market share that has
reduced Ponds. While Ponds had a 16.5% share in September, Olay with a 36.7% share tops
in the anti-ageing category, it is the fast-growing sub-segment.
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P&G “THANK YOU MOM” CAMPAIGN
P&G’s “Thank You Mom” Olympic marketing program was a brilliant effort to draw on a
universal human value to create a program with energy, relevance and emotion that spanned
brands and countries. Plus, it’s ongoing with a life beyond one Olympic Games. In India
though, the ‘Thank You, Mom ‘campaign has taken a more literal form and the FMCG major
is playing the wishing well of sorts. P&G has initiated the ‘Fulfill Her Wish‘ drive in India
and is inviting consumers to confide in it their mother‘s wish. The company has pledged to
fulfill the wish by Mother‘s Day (13 May).
P&G has been using avenues ranging from mainstream advertising to social media, on-
ground activations and exclusive toll free numbers to record people‘s pledges and messages.
Shiksha :Padhega India. Badhega India.
P&G’s flagship Corporate Social Responsibility Program Shiksha is an integral part of our

global philanthropy program - Live, Learn & Thrive. Now in its 8th year, Shiksha has till date
helped 280,000 underprivileged children access their right to education. The program has
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built & supported over 140 schools across India, in partnership with NGOs like Round Table
India (RTI), Save the Children (STC), Army Wives Welfare Association (AWWA) and Navy
Wives Welfare Association (NWWA), amongst others.
P&G Services:-
How P&G is using computer systems to give a better service to its customers?
P&G increases Shared Services scale by using virtual reality!
Consumer products giant, Procter & Gamble Co. (P&G) wants to save more by using the
“virtual reality” technology of its Global Business Services (GBS) arm for operations and
product innovation.
P&G utilise an increasingly popular hybrid shared services BPO solution. Whilst much of
their Finance, IT, HR and Facilities Management functions are outsourced to various
companies, they still utilise sharedservices for activities that for P&G lie further up the value
chain (i.e. are more strategic) such as market research, purchasing, supply chain solutions,
product life cycle management, and customer business solutions. This has involved utilising
technology to make certain activities that were previously physical, into virtual activities that
can be performed in a shared service centre. To provide offers, products and services. We use
the information we collect to provide the products and services you request, to tell you about
other products and services offered by P&G, and to manage our sites and services.
The following are ways may use the information we collect about you:
 Send samples, premiums, products and information.

 Develop new products and services.
 Enrol you in contests, programs, or offers you request.
 To provide you with other services that we have offered to you.
 Create and manage your account.
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 Process payment for purchases or other services.
 Protect against or identify possible fraudulent transactions.
 Where permitted by law, provide you with customized, unsolicited offers and information
about P&G’s products and services through postal mail.
 Develop and provide advertising tailored to your interests.
 Analyse the use of our products, services, and sites.
 Understand how you arrived at our site.
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PURPOSE AND VALUES:-
It will provide branded products and services of superior quality and values that improve the
lives of the world’s consumers, now and for generation to come. As a result, consumers will
reward us and with leadership sales, profit and value creation, allowing to people, its
shareholders and the communities in which they live and work to prosper.
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CORE STRENGTHS
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CHAPTER – 8
RESEARCH METHODOLOGY:-
Research:-
Research in general refers to the search of knowledge. One can also define research as a
scientific & systematic collection of information. In simple words research is the careful
investigation or enquiry of markets especially through search for new facts in any branch of
knowledge.Research is Scientific and systematic search for gaining information and
knowledge on a specific topic or phenomena.
Research refers to the systematic method consisting of:
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(Research Systematic Method)
Research methodology is a way to solve systematically the research problem. It understood as

the science of studying how research done. Research in the common parlance refers to a
search for knowledge.
Justification of the Study:-
This study helps in understanding the strategies being followed by the PatanjaliAyurved ltd.
and other companies selling branded products for pricing their products. The study further
help in describing the differences in the prices of the similar products priced under different
brand names. A wrong pricing decision increases the cost and decreases the profits of the
company as the customers shift to the cheapest product available in the market with
competitive quality and features. These all-practical points are very difficult to understand
through books therefore this study provides a practical knowledge on the pricing strategies
should followed.
Significance of the Study:-
The optimum pricing of the product is very essential to ensure the high sales of the product.
The pricing decisions areconstitute an important part of the marketing mix decision of any
company. Hence pricing of the product done with atmost cares so that its sales revenue can
contribute to the profits of the company. Though there is a tough competition in the market
but several measures can be taken to optimally price the product. Surveys on the pricing
strategies of various Ayurveda companies and FMCG companies have been undertaken so
that they can appropriately respond to the changing customers and economic concerns.
Research Design:-
The research design constitutes the blueprint for the collection, measurement and analysis of
data. It aids the scientists in the allocation of his limited resources by posing actual choices.
“Research Design is the plan and structure of investigation so conceived as to obtain answer
to research questions. “So in brief research design must contain at least following points:
 Clear statement of research problem.
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 Use procedure and techniques for gathering information.
Types of research designs:-
 Exploratory research design

Exploratory research seeks to discover new relationship, emphasis on discovery of ideas.
Marketing researchers devote a significant portion of their work on exploratory studies when
very little is known about the problem being examined.
 Descriptive research design

Descriptive research studies are those, which are concerned with describing the
characteristics of a particular individual, or for a group. The studies concerns whether with
the specific predictions with narration of facts and characteristics concerning individual,
group or situation are all examples of descriptive research design.
Research design used-
The research design used in this project report is exploratory research design.
Objective of the Study:-
Main objective:-
The main objective is “Comparative Study of Pricing Strategies of PatanjaliAyurved
Products with Other Branded Products”.
Sub-objectives:-
 To study the consumer preferences in reference to prices of products of BabaRamdev’s

products and products of HUL and P&G LTD.
 To find out the motives of the purchase and the factors affecting purchase decision.
 To find out the affect of price on consumers buying decision for Baba Ramdev’s
Products.
Methods of Data Collection:-
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Primary Data:-
 Questionnaire
Secondary Data:-


Text Books
Websites
Selection of Sample Design:-

Sample size: 100
Sampling area: DELHI NCR
Sampling Technique Used-

(Methods of data collection)
Non-Probability sampling method is used. Simple convenience sampling one of the variant of
the non-probability sampling method is to be used.
Statistical Technique Used-
 Questionnaire
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P
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a
d
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Data collection is in fact, the most important aspect of a survey. While collecting data utmost
care must be exercised because data constitute the foundation on which the superstructure of
statistical analysis is built. If the data are inaccurate and inadequate, the entire analysis may
be faulty and the decision taken would be misleading.
There are two methods of data collection:-
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 Tables
 Graphs
Analytical Technique Used:-
Chi square test is used. It is a statistical measure used in the context of sampling analysis for
testing the significance of population variance.
HYPOTHESIS:
In this research hypothesis is used. According to chi-square test,
H0: satisfied with prices of the products charged by Baba Ramdev.
H1: not satisfied with prices of the products charged by Baba Ramdev.
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CHAPTER – 9
LIMITATIONS OF THE STUDY:-
Efforts had been made to collect the relevant information through the sources available; still
some relevant information could not be gathered
 The sample size was very small.

 Limited information was made available from the company.
 Lack of interest of respondents.
 The study has not been intended on a very large scale, have the possibility of errors,
which can’t be ruled out.
 Sources were confounded some time to give proper information.
 The major limitation of the study was time constraint as only few days were available for
the study.
 Proper information and knowledge are basis of any research but there was lack of
information.
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CHAPTER – 10
PRICING STRATEGY :-
One of the four major elements of the marketing mix is price. Price is an important strategic
issue because it is related to product positioning. Furthermore, pricing affects other marketing
mix elements such as product features, channel decisions and promotion. While there is no
single recipe to determine pricing, the following is the general sequence of steps that might
be followed for developing the price the new product:-
 Developing market strategy

Perform market analysis, segmentation, targeting and positioning.
 Make marketing mix decisions
Define the product, distribution and promotional tactics.
 Estimate the demand curve

Understand how quantity demanded varies with price.
 Calculate cost
Include fixed and variable costs associated with the product.
 Understand environmental products

Evaluate likely competitor’s actions, understand legal constraints etc.
 Set pricing objectives

For example, profit maximization, revenue maximization or price stabilization.
 Determine pricing
Using information collected in the above steps, select a pricing method, develop the
pricing structure, and define discounts.
These steps are interrelated and not necessarily be performed in the above order. Nonetheless,
the above list serves as the starting framework.
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Marketing strategy and the marketing mix:-
Before the product is developed, the marketing strategy is formulated, including target market
selection and product positioning. There usually are tradeoffs between product quality and
price, so price is an important variable in positioning.
Because of inherent tradeoffs between marketing mixes elements, pricing will depend upon
other product, distribution and promotion decisions.
Estimate the demand curve:-
Because there is a relationship between price and quantity demanded, it is important to

understand the impact of pricing on sales by estimating the demand curve for the product.
For existing products, experiments can be performed at prices above and below the current
price in order to determine the price elasticity of demand. Inelastic demand indicates that
price increases might be feasible.
Calculate costs:-
If the firm has decided to launch the product, there likely is at least a basic understanding of
the costs involved; otherwise, there might be no profit to be made. The unit cost of the
product sets the lower limit of what the firm might charge, and determines the profit margin
at higher prices.
The total unit cost of producing a product is composed of the variable cost of producing each
additional unit and the fixed costs that are incurred regardless of the quantity produced. The
pricing policy should consider both types of costs.
Environmental factors:-
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Pricing must take into account the legal and the competitive environment in which the
company operates. From a competitive standpoint, the firm must consider the implications of
its pricing on the pricing decisions of the competitors. For example, setting the price too low
might result in price war that may not be in the best interest of either side. Setting the price
too high may attract a large number of competitors who want to share in the profits.
From a legal standpoint, a firm is not free to price its products at any level it chooses. For
example, there may be price controls that prohibit pricing the product too high. Pricing it too
low may be may be considered predatory pricing or ‘dumping’ in the case of international
trade. Offering a different price for different consumers may violate laws against price
discrimination. Finally collusion with competitors to fix prices at an agreed level is illegal in
many countries.
Pricing Objectives:-
The firm’s pricing objectives must be identified in order to determine the optimal pricing.
Common objectives include the following:-
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 Current profit maximization
Seeks to maximize current profit, taking into account revenue and costs. Current profit
maximization may not be the best objective if it results in lowering long-term profit.
 Current revenue maximization
Seeks to maximize current revenue with no regard to profit margins. The underlying
objective here is to maximize long-term profits by increasing market share and lowering
cost.
 Maximize quantity
Seeks to maximize the number of units sold or the number of customers served in order to
decrease long –term costs as predicted by the experience curve.
 Maximize profit margin
Attempts to maximize unit profit margin, recognizing that quantities will be low.
 Quality leadership
Use price to signal high quality in an attempt to position the product as the quality leader.
 Partial cost recovery
An organisation that has other revenue may seek other partial cost recovery.
 Survival
In situations such as market decline and overcapacity, the goal may be to select a price
that will cover costs and permit the firm to remain in the market. In this case, the survival
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may take a priority over profits, so this objective is considered temporary.
 Status quo
The firm may seek price stabilization.
Pricing strategies:-
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(Pricing Strategies)
 Cost based pricing:-
This involves setting a price by adding a fixed amount or percentage to the cost of making or
buying the product. In some ways this is quite an old-fashioned and somewhat discredited
pricing strategy, although it is still widely used.
After all, customers are not too bothered what it cost to make the product – they are interested
in what value the product provides them.
Cost-plus (or “mark-up”) pricing is widely used in retailing, where the retailer wants to know
with some certainty what the gross profit margin of each sale will be. An advantage of this
approach is that the business will know that its costs are being covered. The main
disadvantage is that cost-plus pricing may lead to products that are priced un-competitively.
Customer-based pricing:-
(Customer-based pricing)
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Penetration pricing:-
Often see the tagline “special introductory offer” – the classic sign of penetration pricing. The
aim ofpenetration pricing is usually to increase market share of a product, providing the
opportunity to increase price once this objective has been achieved.
Penetration pricing is the pricing technique of setting a relatively low initial entry price,
usually lower than the intended established price, to attract new customers. The strategy aims
to encourage customers to switch to the new product because of the lower price.
Penetration pricing is most commonly associated with a marketing objective of increasing

market share or sales volume. In the short term, penetration pricing is likely to result in
lower profits than would be the case if price were set higher. However, there are some
significant benefits to long-term profitability of having a higher market share, so the pricing
strategy can often be justified.
Penetration pricing is often used to support the launch of a new product, and works best when
a product enters a market with relatively little product differentiation and where demand is
price elastic – so a lower price than rival products is a competitive weapon.
Price skimming:-
Skimming involves setting a high price before other competitors come into the market. This
is often used for the launch of a new product which faces little or no competition – usually
due to some technological features. Such products are often bought by “early adopters” who
are prepared to pay a higher price to have the latest or best product in the market.
Price skimming as a strategy cannot last for long, as competitors soon launch rival products
which put pressure on the price (e.g. the launch of rival products to the iPhone or iPod).
Distribution (place) can also be a challenge for an innovative new product. It may be
necessary to give retailers higher margins to convince them to stock the product, reducing the
improved margins that can be delivered by price skimming.
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A final problem is that by price skimming, a firm may slow down the volume growth of
demand for the product. This can give competitors more time to develop alternative products
ready for the time when market demand (measured in volume) is strongest.
Loss leader:-
The use of loss leaders is a method of sales promotion. A loss leader is a product priced
below cost price in order to attract consumers into a shop or online store. The purpose of
making a product a loss leader is to encourage customers to make further purchases of
profitable goods while they are in the shop. But does this strategy work?
Pricing is a key competitive weapon and a very flexible part of the marketing mix.
If a business undercuts its competitors on price, new customers may be attracted and existing
customers may become more loyal. Therefore, using a loss leader can help drive customer
loyalty.
One risk of using a loss leader is that customers may take the opportunity to “bulk-buy”. If
the price discount is sufficiently deep, then it makes sense for customers to buy as much as
they can (assuming the product is not perishable).
Using a loss leader is essentially a short-term pricing tactic for any one product. Customers
will soon get used to the tactic, so it makes sense to change the loss leader or its
merchandising every so often.
Predatory pricing:-
With predatory pricing, prices are deliberately set very low by a dominant competitor in the
market in order to restrict or prevent competition. The price set might even be free, or lead to
losses by the predator. Whatever the approach, predatory pricing is illegal under competition
law.
Psychological pricing:-
Sometimes prices are set at what seem to be unusual price points. For example, why are
DVD’s priced at £12.99 or £14.99? The answer is the perceived price barriers that customers
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may have. They will buy something for £9.99, but think that £10 is a little too much. So a
price that is one pence lower can make the difference between closing the sale, or not!
The aim of psychological pricing is to make the customer believe the product is cheaper than
it really is. Pricing in this way is intended to attract customers who are looking for “value”.
Competitor-based pricing:-
If there is strong competition in a market, customers are faced with a wide choice of who to
buy from. They may buy from the cheapest provider or perhaps from the one which offers the
best customer service. But customers will certainly be mindful of what is a reasonable or
normal price in the market.
Most firms in a competitive market do not have sufficient power to be able to set prices
above their competitors. They tend to use “going-rate” pricing – i.e. setting a price that is
in line with the prices charged by direct competitors. In effect such businesses are “price-
takers” – they must accept the going market price as determined by the forces of demand and
supply.
An advantage of using competitive pricing is that selling prices should be line with rivals, so
price should not be a competitive disadvantage.
The main problem is that the business needs some other way to attract customers. It has to
use non-price methods to compete – e.g. providing distinct customer service or better
availability.
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SWOT analysis of Patanjali Yogpeeth
The SWOT Analysis of the PatanjaliYogpeeth is explained as follows.
Strengths:
 Natural products without any kind of side effects.

 Innovative use of spirituality.
 Presence of established distribution networks in urban areas.
 Solid base and image of the trust.
 Social Responsibility to make people healthy.
Weaknesses:
 Strong competitors and availability of substitute products.

 Low exports levels.
 High price of some products.
 .Absence of established distribution networks in rural areas.

 Very less promotional activities.
Opportunities:
 Large domestic market over a billion populations.

 Untapped rural market.
 Changing lifestyles and rising income levels, i.e. increasing per capita income of
consumers.
 Export potential and tax and duty benefits for setting exports units.
Threats:
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 Political interference.
 Controversy created by other groups regarding Patanjali products.
 Removal of import restrictions resulting in replacing of domestic brands.
 Temporary Slowdown in Economy can have an impact on FMCG Industry.
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CHAPTER - 11
DATA ANALYSIS AND INTERPRETATION:-
1.Which type of consumer products do you prefer?
Table 4.1
Responses No. of respondents
Branded 78
Unbranded 22
Total 100
No. of respondents
Branded
Unbranded
Total
Fig. 4.1
Interpretation:-
From the above fig. it is quite clear that 78% of the like to buy branded products. Thus, it can
interpret that people are fonder of brand. They like to buy branded products. Therefore,fewer
customers are attracted towards the Patanjaliayurved products.
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2. Are you aware of various consumer goods brands available in the market?
Table. 4.2
Yes 92
No 8
Total 100
No. of respondents
100
80
No. of respondents
60
40
20
0
yes no Total
Fig.4.2
Interpretation:-
From the above fig. it can be seen that almost of the people are known about the various
brands available in the market. Thus it can be interpreted that people look more for brands
while buying products. Only 8% of the people are not aware about the available brands.
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3.Tick against the brands that you like to buy.
Table 4.3

HUL 67
P&G 23
PatanjaliAyurved ltd. 3
Others 7
Total 100
No. of respondents
total
others
No. of respondents
Patanjali ayurved ltd.
P&G
HUL
0 20 40 60 80 0
10
Fig.4.3
Interpretation:-
From the above analysis it is clear that HINDUSTAN UNILEVER LIMITED and PROCTOR &
GAMBLE are the most popular and liked brands in the FMCG industry in our country. There are
other brands also available in market about which people are aware.
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4. Factors that affectyou while making purchases:-
Table 4.4

Quality 26
Price 56
Brand 16
others 2
total 100
No. of respondents
Quality
Price
Brand
others
total
Fig.4.4
Interpretation:-
From the above fig. it is clear that price is the major and the foremost important factor in guiding
purchases while the quality of the product is also considered widely by the consumers while
making purchases for consumer goods.
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5. Have you ever bought Patanjaliayurvedproducts?
Table 4.5

Yes 18
No 82
Total 100
No. of respondents
100
90
80
70
No. of respondents
60
50
40
30
20
10
0
Branded Unbranded Total
Fig. 4.5
Interpretation:-
From the above data analysis, it can interpret that most of the respondents never bought
Patanjaliayurved products because they prefer branded products instead of ayurvedic products.
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6.Do you think prices of these products affect your buying decision?
Table 4.6
Yes 59
No 41
Total 100
No. of respondents
Total
No. of respondents
No
Yes
0 10 20 30 40 50 60 70 80 90 100
Fig. 4.6
Interpretation:-
From the above data, it can interpret that for about majority of the people, price is an important
guiding factor while making purchases of consumer goods. Thus, price is a major area of concern
for the marketer.
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7.Have you noticed any difference in the prices of Patanjaliayurvedproducts and other
branded products?
Table 4.7
Yes 13
No 87
Total 100
No. of respondents
Yes
No
Total
Fig. 4.7
Interpretation:-
From above figure it is clear that 83% of the people dint find any difference in the price range of
Patanjali products and other branded products even though ayurveda is cheaper than other
cosmetics but still same prices are charged for them. Thus it can be interpreted this can be the
major reason for low customer base for Patanjaliayurved products
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8. Are you satisfied with the price charged for consumer products byPatanjaliayurved?
Table 4.8
Highly satisfied 17
Satisfied 15
Neutral 25
Dissatisfied 38
Highly dissatisfied 5
Total 100
No. of respondents Highly satisfied

Satisfied
Neutral
Dissatisfied
Highly dissatisfied
Total
Fig. 4.8
Interpretation:-
From the above fig. it is clear that most of the respondents are dissatisfied with the prices being
charged. It can be interpreted that the Patanjali products are highly charged. Generally, the
ayurveda products and medicines are cheaper as compared to other products.
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9. Do you get any discounts or incentives on Patanjaliayurvedproducts?
Table 4.9
Yes 0
No 100
Total 100
120
100
80
60 Yes
Total
40
20
0
0.8 1 1.2 1.4 1.6 1.8 2
Fig. 4.9
Interpretation:-
From the above fig it can be noticed that not even 1% people say that they get any discount on
any product of PatanjaliAyurved. While other brands keep on providing promotional schemes
from time to time.
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10. Will you like to switch your brand preference if you get some discounts with
Patanjaliayurved products?
Table 4.10
Yes 7
No 93
Total 100
No. of respondents
Yes
No
Total
Fig. 4.10
Interpretation:-
From the above fig. it can be seen that 93% of the respondents said that they won’t shift their
preference from other branded products to Patanjaliayurved products even though they will get
discount. Thus, it can interpret that people are more brand conscious and brand loyal.
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11. Give reasons for the same:-
Table 4.11
Cost 63
Quality 27
Satisfaction 7
More benefit 3
Total 100
No. of respondents
Cost
Quality
Satisfaction
More benefit
Others
Fig. 4.11
Interpretation:-
From the above figure it can be interpreted that most of the consumers will shift their preference
from other branded products to the Patanjaliayurved products if they become more cost effective.
Not much Consumers will not shift for satisfaction because branded products also give them
same level of satisfaction.
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12. What company want to communicate with their pricing strategies?
Table.4.12
Luxury 30
Affordability 60
Something else 10
Total 100
No of Respondents
Luxury Affordibility Something Else
Fig.4.12
Interpretation:-
From the above figure it can be interpreted that most of the consumers will choose the brand
in comparison with other brand product because of affordability. This can be one reason for
low income level group to shift the preferences on Patanjaliayurved products from other
brand products.
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13. If you knew that the average price of Patanjaliayurved products is cheaper, would
you expect to pay more or less to buy the described products in future?
Table.4.13

20-30% more 10
5-10% more 30
No more, No less 35
5-10% less 5
20-30% less 20
No. of Respondents
20-30% more 5-10% more No more, no less

5-10% less 20-30% less
Fig. 4.13
Interpretation:-
From the above figure it can be interpreted that consumer will like to adopt the
Patanjaliayurved products only when there is no change in FMV, but in case prices rises they
will lose the support of the consumer. It means consumer shift their preferences to other
brand products.
CHAPTER – 12
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FINDINGS:-
 It finds that78% people prefer branded products and 22% people used unbranded
products i.e. most of the people aware about the branded products and they use them.
 It finds that 92% people are aware of various consumer goods brands, which are
available in the market, but still there are some people are not aware.
 It finds that a high percentage of consumers are not aware about Patanjaliayurved
products but they are aware about the HUL and P&G products.
 It finds that most of the people affected by prices of the products while making
purchase any product.
 It finds that most of the people are not aware about Patanjaliayurved’s products so
that they never bought these products.
 It finds that many consumers are not aware about the Ayurvedic products so that they
never notice any difference in the prices of Patanjaliayurved products and other
products.
 It finds that 50% people are dissatisfied with the prices charged for consumer
products by Patanjaliayurved.
 It finds that there are no incentives or discounts provided by Patanjaliayurved on his
products.
 It finds that 93% buyers do not want to switch their brand preference if they get any
discount with Patanjaliayurved products.
 Low income group will like to adopt the Patanjaliayurved products because they are
affordable n fall in their range of daily expenses.
 It finds that in case there is any change in average price of Patanjaliayurved products,
they will lose their consumers as they have option to buy other brand products in the
same price range.
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RECOMMENDATIONS:-
 Establish pricing strategy from fact based customer-focused information.
 Create price-sensitive classifications from the customer’s view.
 Establish clear criteria for each classification; communicate and execute consistently
throughout the company.
 Establish a competitive audit process as a lynch pin of the retail pricing strategy for
sensitive items. Establish a sound, statistical sampling approach for this process to control
time andExpense.
 Limit the designation of price-sensitive SKUs or a few as 50 to 100. Any largernumber

calls the criteria that are being used into question.
 Use some or all of the various research techniques to uncover customer’s perceptions and
sensitivity. In particular, understand customers’ value perceptions regarding proprietary
products versus national brand.
 Pilot any significant changes to the pricing strategy and quantify the impact.
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CHAPTER – 13
CONCLUSION:-
In today’s hyperactive kinetic retail environment, with alternative options just a click away,
retailers cannot afford anything less than an optimal pricing strategy - one that begins and
ends with the customer in mind. In fact, the principles we have discussed have broad
applicability to almost anyone confronted with pricing strategy development and, most
particularly, to those contending with extensive assortments, thin margins or
marketsdominated by national brands. Here is a challenge for any retailer, or non-retailer.
How effective is your current pricing strategy?It finds that people prefer branded products
and people used unbranded products i.e. most of the people aware about the branded products
and they use them. Most of the people are aware of various consumer goods brands, which
are available in the market, but still there are some people are not aware.
A high percentage of consumers are not aware about Baba Ramdev products but they are
aware about the HUL and P&G products. Most of the people affected by prices of the
products while making purchase any product and they are not aware about Baba Ramdev’s
products so that they never bought these products. Consumers are not aware about the
Ayurvedic products, which are available in the market so that they never notice any
difference in the prices of Baba Ramdev products and other branded companies products like
HUL, P&G etc.
However, those persons know about the availability of the products of Baba Ramdev they are
not satisfied with the prices, which charged by the company. The company does not provide
any incentives and any kind of discounts, which attract the consumers. It is conclude that the
consumers are not aware about the availability of the products in the market, consumers does
not want to switch to
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CHAPTER – 14
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24, 1987, pp. Sell—S-12.
 Christopher W L. Hart, "The Power of Unconditional Service Guarantees," Harvard

Business Review, July— August 1988, pp. 54 - 62.
 Michael Hiestand, "Traditional Staples Shake Primitive Packaging," Adweek's

Marketing Week, May 2, 1988,pp. 1, 4.
 Carolyn Lochhead, "The Lodging Industry Giants Build to Woo Budget Travelers,"
Insight, June 6, 1988, pp.40 - 42.
Page | 85
WEBSITES:
 http://www.aar-vee.blogspot.com
 http://www.aamjanta.com
 http://www.freshersworld.com
 http://www.exitopinionpollsindia.blogspot.com
 http://www.wikipedia.org/
Page | 86
CHAPTER – 15
ANNEXURE
“Questionnaire on Comparative Study of Pricing Strategies of PatanjaliAyurvedProducts

with Other Branded Products”
1. Which type of consumer goods do you prefer?
 Branded
 Unbranded
2. Are you aware of various consumer goods brands available in the market?
 Yes
 No
3. Tick against the brands that you like to buy.
 HUL
 P&G
 PatanjaliAyurved Ltd.
 Others
4. Factors that affect you while making purchases.
 Quality
 Price
 Brand
 Others
5. Have you ever bought Patanjaliayurved’s products?
Page | 87
 Yes
 No
6. Have you noticed any difference in the prices of PatanjaliAyurved’s products or

other branded products?
 Yes
 No
7. Do you think prices of these products affect your buying decision?
 Yes
 No
8. Are you satisfied with the price charged for consumer products by
PatanjaliAyurved?
 Highly satisfied
 Satisfied
 Neutral
 Dissatisfied
 Highly dissatisfied
9. Do you get any discounts or incentives on Patanjaliayurved’s products?
 Yes
 No
10. Will you like to switch your brand preference if you get some discounts with
Patanjaliayurved products?
 Yes
 No
11. Give reason for the same?
Page | 88
 Cost
 Quality
 Satisfaction
 More benefit
12. What company want to communicate with their pricing strategies?
 Luxury
 Affordability
 Something else
 Total
13. If you knew that the average price of Patanjaliayurved products is cheaper, would
you expect to pay more or less to buy the described products in future?
 20-30% more
 5-10% more
 No more, No less
 5-10% less
 20-30% less
Page | 89

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FINAL YEAR PROJECT REPORT

COMPETETIVE STUDY OF PERICING STRATEGIES OF

ASIAN BUSINESS SCHOOL, NOIDA

As a partial fullfilment of full time

Post Graduate Diploma in Management (PGDM)

Approved by AICTE, by ministry of HRD

Submitted to: Submitted By:

Asian Business School (ABS)

in Management, and is a record work byChetna Baweja, ABS/PGDM/JULY14/138 The

Internal Examiner (Project Guide) External Examiner (Viva expert)

submitted in partial fulfillment of Post Graduate Diploma in Management of Asian Business

Place Asian Business School, Noida

Chapters Page Nos.

i. Significance of the Study 1

SIGNIFICANCE OF THE STUDY:-

OBJECTIVE OF THE STUDY:-

 To study the consumer preferences in reference to prices of products of BabaRamdev’s

JUSTIFICATION OF THE STUDY:-

χ2= ——— where,

Hypothesis of the study:

H1: not satisfied with prices of the products charged by PatanjaliAyurved.

Ayurveda is the combination of two words:

Ayur:- Meaning The Whole Lifespan

Veda: -Meaning Total Knowledge

“Thescience of Ayurveda, therefore, encompasses the total knowledge of the whole

 SwasthasyaSwathyaRakshanam (Preventive and Social medicine)

“SamadoshaSamagnishchaSamaDhata Mala Kriya.

Ayurvedic: The Indian System of Medicine:-

Ayurveda is considered by many scholars to be the oldest healing science. In Sanskrit,

What is unique about Ayurveda ?

There are several aspects to Ayurveda that are quite unique:

USE of AMA in AYURVEDA

Causes of 'Ama' production :

 Agnimandya -Low digestive fire:-

 Mala Sanchaya - Accumulation of waste products:-

 Doshasammurcchana - Interaction or amalgamation between vitiated doshas:-

body there is a constant interaction between order and disorder.

Introduction To FMCG Industry

Fast Moving Consumer Goods:-

The FMCG Industry:-

Automatic investment approval (including foreign technology agreements within specified

Common FMCG products:-

Some of the well-known FMCG companies are:

Industry AttributesType of ProductsCompany Name

House hold CareSoaps, Detergents, HouseholdP&G,HUL,Nirma,ITC,

Personal CareOral Care, Skin Care, HairP&G, HUL, Nirma, ITC,

Food and BeveragesFOOD: Staples/Cereals, Coca-Cola,PepsiCo,

The main segments of the FMCG sector are:

 Branded and Packaged Food and Beverages:

 Spirits and Tobacco:

Patanjali Ayurved Ltd.

Just as everyone has a unique fingerprint, each person””individual combination of physical,

VISION AND VALUES

The principle ideology of Swami RamdevjiMaharaj is to take knowledge, prosperity, success,

Product Brands of Patanjali Some of the competitive

Hindustan Unilever limited:-

 Annapurna salt and atta

Personal Care Brands:-

 Aviance Beauty Solutions

 HUL products are distributed thought 7000 redistribution stockiest.

 It is linked with 1 million retail outlets.

 HUL’s product is available throughout the country.