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Research Project

A Study on the Effectiveness of Promotion of


Ayurvedic Products on Consumers in Ludhiana

Submitted by:
Abhineet Handoo
(University Roll No: 627221924)
MBA 1B

Under the guidance of Mr. Gautam Bansal

Punjab College of Technical Education,


Baddowal, Ludhiana.

Preface
The Workshop on Research Methodology in the college infuses among students a sense
of critical analysis to apply of real managerial situation, to which they will be exposed
later on. It gives them an opportunity to apply their conceptual, theoretical and
imaginative skills to the real life situation and to evaluate the results there after.
I was lucky to have got an opportunity to get the project of my interest. I worked on the
research project for around three months and prepared my project on the topic A study
on the effectiveness of promotion of Ayurvedic products on consumers in Ludhiana.
This report is a written account of what I learnt, experienced and explored during my
research.

Acknowledgement
I take this opportunity to offer my deep gratitude to all those who have extended their
valued support and advice to complete this project. I cannot measure and reciprocate the
kindness shown and the contributions made by various persons in this endeavor.
I acknowledge my sincere thanks to Mr. Gautam Bansal (Faculty Member) who stood
by me as a pillar of strength through out the course of work and under whose mature
guidance the project arrived out successfully. I am grateful to his valuable suggestions.
I would like to thank all my friends who have helped me in this project through thick and
thin.

Abhineet Handoo

Table of Contents
Chapter

Page

Preface

Acknowledgements

List of Tables

List of Figures

Chapter-1: Introduction to Research

7-13

Chapter-2: Objectives of Research

14

Chapter-3: Research Methodology

15-16

Chapter-4: Data Analysis and Interpretation

17-26

Chapter-5: Results and Findings

27

Chapter-6: Conclusion

28

Bibliography

29

Questionnaire
.

List of Tables
Serial

Table

Table Name

Page No.

No.

No.

Awareness about ayurvedic product

17

Modes through which customers came to

18

know about ayurvedic product


Modes through which customers came to

19

know about ayurvedic product


Advertisements effecting purchase decisions

20

Preference among various features

22

Level of influence regarding promotional

23

modes
Influence on buying decisions

24

Promotional attractiveness

25

10

10

Frequency of buying under the influence of

26

Factors considered while buying

21

promotion

List of Figures

Serial

Figure

No.

No.

Awareness about ayurvedic product

17

Modes through which customers came to

18

know about ayurvedic product


Modes through which customers came to

19

know about ayurvedic product


Advertisements effecting purchase decisions

20

Factors considered while buying

21

Preference among various features

22

Level of influence regarding promotional

23

modes
Influence on buying decisions

24

Promotional attractiveness

25

10

10

Frequency of buying under the influence of

26

Figure Name

Page
No.

promotion

CHAPTER 1
Introduction

Ayurveda is the eternal Vedic science of life, the traditional natural healing system of
India. The concept of Ayurveda is not just medical treatment or diagnosis of a diseased
condition but much more than that. Ayurveda is a set of practical, simple guidelines, for
long life and good health. Using them you can bring your body and mind to perfect
balance. Ayurveda has a theoretical basis but is overwhelmingly practical in nature. It
includes the total concept of life both man and environment. Ayurvedic science is referred
to as 'science of life' as the word Ayurveda is composed of two words Ayu and Veda
where Ayu means life and Veda means science. Thus Ayurveda means 'science of life'. It
teaches us how an individual can stay in harmony with nature, and enhance their health.
The content of Ayurveda has developed over thousands of years of human evolution.
Today, Ayurveda is at the forefront of mind-body medicines. Ayurveda has spread far
beyond its traditional base and is gaining attention throughout the world. Ayurveda with
its understanding of life and consciousness becomes the medicine of the future.
Ayurveda literally means knowledge of life. Ayurvedic medicines are based on the
principle that every individual has a unique constitution that related to his vital energies
translated into Ayurvedic nosology as dosha or humors. Ayurveda mainly composed of
eight clinical specialties. They are as follows:

General medicine ( Kaaya cikitsaa)

Pediatrics (Baala cikitsaa),

Psychiatry (Graha Chikitsa),

Treatment of head and neck (S`aalakya tantra),

Surgery (S`alya tantra),

Toxicology (Agada tantra),

Rejuvenation therapy (Rasayana tantra) and

Reproductive medicine (Vajeekarana cikitsaa).

The main aims of Ayurveda are:

To prevent diseases

To treat and cure diseases

And both these are aimed towards the promotion of health on three levels:

Mentally

Physically

Spiritually

The knowledge of ayurveda was essential for two purposes:


1) Self protection
2) Help the Praja (citizens)

Step By Step Growth of Ayurveda


Brahma is said to be the most knowledgeable person in every science subject. Also he is
said to be the first former of Ayurveda. He wrote the first book on Ayurveda i.e.
Brahmasanhita.
'Daksha Prajapati' and 'Bhaskara' were the first persons who got knowledge from Brahma
about Ayurveda. There was dominance of rules (Siddantha) in tradition of Daksha and in
Bhaskara's tradition treatment (Chikitsa) was dominant..
Ashwinikumar also learnt directly from Brahma. He wrote the books such as Aswin
Sanhita, Chikitsa Sartantra, Bhramaghna and Nadipariksha. According to Charaksanhita,
Indra learnt ayurveda from Aswinikumara and he spread this knowledge to Bharadwaj,
Bhrugu, Angira etc (ten sages).
According to Kashyapsanhita, Indra taught Ayurveda to Kashyup, Vasishta, Atri and
Bhrugu and in Susrutsanhita it is said that Dhanwantri got knowledge about Ayurveda
from Indra.
In this way Ayurveda is a very ancient therapy and has a spread in the foreign countries a
swell. In the famous therapies all over world, Indian therapies are most ancient and its
scope is very wide. Thus Ayurveda can not be tied up to a country or specific time span.
As we refer to Ayurveda as a holistic system of medicine and health native to ancient
India. Ayurveda has not restricted itself as the path, which treats diseases but being the

science of life has covered all the aspects necessary to maintain health and to restore it
when inflicted with a disease. There are certain rules and regulations of Ayurveda, which
are nothing but guidelines, which are to be followed to remain fit, refrain from diseases
and lead a healthy life.
Traditional techniques and processes are used to prepare the medicines at home, while
certain amount of mechanization is inevitably used for large-scale production. The beauty
of the therapeutics is that they contain the active principles in their natural forms and
their administration in prescribed dozes does not cause any side effects to the patients.
India is known worldwide for its ayurveda treatment. There are various centers across the
country, which gives an authentic ayurveda treatment. Kerala is the most famous
destination for ayurvedic treatment in India. It attracts tourists not only from other parts
of India but also from different countries. The treatment mainly comprises of powders,
tablets, decoctions, medicated oils etc. prepared from natural herbs, plants and minerals.
Panch Karma therapy is also used as a treatment in many diseases. Panchkarma is a
purifying therapy to enhance the metabolic process through food and herbal medicines.
Panch Karma means five types of actions or techniques or treatment. As the wastes are
eliminated from the body the person becomes healthy. Ayurveda gives a complete look
into the lifestyle of a person. Like starting from his personality to his daily food habits.
Ayurveda helps us in understanding each individual at a very subtle personal level and
giving a detailed description about diet, daily routine, life-style, actions and activities to
be followed. It's a science that teaches how to live life in a true and natural balance.
Ayurveda aims at having a healthy and happy society free from diseases. Two most
important aims of Ayurveda are: to maintain the health of healthy people and to cure the
diseases of sick people.
Ayurvedic medicines are produced by several thousand companies in India, but most of
them are quite small, including numerous neighborhood pharmacies that compound
ingredients to make their own remedies. It is estimated that the total value of products
from the entire Ayurvedic production in India is on the order of one billion dollars (U.S.).
The industry has been dominated by less than a dozen major companies for decades,
joined recently by a few others that have followed their lead, so that there are today 30
companies doing a million dollars or more per year in business to meet the growing

demand for Ayurvedic medicine. The products of these companies are included within the
broad category of "fast moving consumer goods" (FMCG; which mainly involves foods,
beverages, toiletries, cigarettes, etc.). Most of the larger Ayurvedic medicine suppliers
provide materials other than Ayurvedic internal medicines, particularly in the areas of
foods and toiletries (soap, toothpaste, shampoo, etc.), where there may be some overlap
with Ayurveda, such as having traditional herbal ingredients in the composition of
toiletries.
The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have
about 85% of India's domestic market. These and a handful of other companies are
mentioned repeatedly by various writers about the Ayurvedic business in India; a brief
description is provided for them, arranged here from oldest to newest.
Dabur India Ltd.:
It is India's largest Ayurvedic medicine supplier and the fourth largest
producer of FMCG. It was established in 1884, and had grown to a business level in 2003
of about 650 million dollars per year, though only a fraction of that is involved with
Ayurvedic medicine. Last year, about 15% of sales volume was pharmaceuticals; the
remaining 85% were mostly non-medicine items such as foods and cosmetics. Dabur's
Ayurvedic Specialties Division has over 260 medicines for treating a range of ailments
and body conditions-from common cold to chronic paralysis. These materials constitute
only 7% of Dabur's total revenue (thus, less than 50 million dollars). Dabur
Chyawanprash (herbal honey) has a market share of 70% and chewable Hajmola
Digestive Tablets has an 88% share. Other major products are Dabur Amla Hair Oil,
Vatika (Shampoo), and Lal Dant Manjan (Tooth Powder).
Sri Baidyanath Ayurvedic Bhawan Ltd.:
(Baidyanath for short) was founded in 1917 in Calcutta, and specializes in
Ayurvedic medicines, though it has recently expanded into the FMCG sector with
cosmetic and hair care products; one of its international products is Shikakai (soap pod)

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Shampoo. Baidyanath has a sales volume of about 350 million dollars, but most of the
product sales are in the cosmetic range. The company reports having over 700 Ayurvedic
products, made at 10 manufacturing centers, with 1,600 employees. Included items are
herbal teas, patent medicines, massage oils, and chyawanprash.
Zandu Pharmaceutical Works:
It was incorporated in Bombay in 1919, named after an 18 th-century Ayurvedic.
The company focuses primarily on Ayurvedic products (in 1930, pharmaceuticals were
added, but the pharmaceutical division was separated off about 30 years later). However,
today Zandu has a chemicals division and cosmetics division. Its total sales volume is
about 45 million dollars. One of its current projects is to develop a dopamine drug from a
plant extract, applying for new drug status in the U.S.
The Himalaya Drug Company:
It was established in 1934 in Bangalore. It currently has a business level of about 500
million dollars and has a U.S. distribution division (Himalaya USA). It is known in the
U.S. for the product Liv-52, marketed as a liver protector and therapy for liver diseases
like viral hepatitis; the product was first marketed in India in 1955.
Vicco Laboratories
It was established in 1958. It mainly produces topical therapies based on Ayurveda and is
best known internationally for its toothpaste product, Vajradanti, which has been
marketed in the U.S. for more than 25 years.
The Emami Group
It was founded in 1974, provides a diverse range of products, doing 110 million dollars of
business annually, though only a portion is involved with Ayurvedic products, through its
Himani line; the company is mainly involved with toiletries and cosmetics, but also
provides Chyawanprash and other health products.

11

Charak Pharma
Established in the year 1947 by two brothers Mr. D.N. Shroff and Dr. S.N. Shroff, Charak
Pharmaceuticals is amongst the pioneers of manufacturing Ayurvedic medicines in India.
Currently Charak Pharmaceuticals holds the distinction of being one of the top ten
Ayurvedic Drug Manufacturing companies in India. Driven by excellence, Charak aspire
to raise the standards of Ayurvedic medicine through continuous standardization and R &
D processes. An ISO 9001 certified organization, Charak Pharma brings with it 3000
years of wisdom, 50 years of experience, over 50 extensively researched products with a
strong presence in over 24 countries. . It has gained a large advantage with its new
product Evanova, a preparation containing 33 herbs and minerals and non-hormonal
active ingredients used as a menopause treatment alternative to HRT. Soya is one of the
main ingredients in this product. The product also contains Ayurvedic herbs that act like
selective estrogen receptor modulators as well as asparagus root (shatavari), which
reduces the frequency and intensity of hot flashes.
Currently Charak has an impressive product portfolio ranging from men and women
disorders as well as products for children, which are manufactured in its state-of-art
facilities in Vapi and Haryana.
Himalaya Drug
Bangalore-based US$ 74.5 million Himalaya Drug Company was founded in 1930 with a
clear vision to bring ayurveda to society in a contemporary form. Today, consumers in
over 60 countries rely on Himalaya for their health and personal care needs. Himalaya is
the first ayurvedic facility to get Good Manufacturing Practices (GMP) certification in
the country. They are the only herbal pharmaceutical company whose ayurvedic product,
Liv 52 is registered as a "Pharmaceutical Specialty" in Switzerland. Himalaya is one of
the chosen companies for a WHO sponsored project to standardize medically useful
herbs.
Several small companies that have grown rapidly in recent years envision themselves as
primary players in the Ayurvedic market. As an example, Viswakeerthy Ayurvedic
Pharmacy promotes itself as one of the largest suppliers of Ayurvedic medicines in India.

12

Need to study
Research topic is A study on the effectiveness of promotion of Ayurvedic products on
consumers in Ludhiana. As ayurvedic products have no side effect and they are
preferred over allopathic ones. Having the great medicinal value the companies should
work more on promoting the ayurvedic products so that the customers know about the
product. In this research, level of awareness will be studied among the customers
regarding ayurvedic products for this the level of influence of various promotional modes
adopted by the company will be studied. At last the factors that effect the buying
decisions will be studied so that the companies can stress more on those factors.

CHAPTER 2
Objectives

13

1. To study the level of awareness among the consumers regarding the ayurvedic
products.
2. To study the influence of various modes of promotion adopted by the companies.
3. To study the factors influencing buying decisions of the customer.
.

CHAPTER 3
Research Methodology

14

3.1 Research design:


A research design is the arrangement Research design is conceptual; it is the blueprint for
the collection, measurement and analysis of data. This is a descriptive/conclusive study
as it involves analysis of characteristics of different banks through pre-planned design for
analysis. This research seeks to draw conclusions about effects of services, marketing or
consumer variables on other variables like consumer preference and satisfaction

3.2 Scope of study:


The area of research was restricted to people of Ludhiana city who have used ayurvedic
products.

3.3 Data Collection:


Research is carried out with the help of:

Primary Data
Secondary Data
The primary data for the purpose of meeting the objectives of study has been collected
through 100 Questionnaires being filled in by respondents who have used ayurvedic
products. The secondary data for the study has been collected through newspaper articles,
journals, magazines, etc.

3.4 Sample design:


It comprises of population, sampling unit, sample size. Non probability Sampling design
has been used.

3.4.1 Population:
All people of Ludhiana city who have used ayurvedic products.
15

3.4.2 Sampling unit


Every single person of Ludhiana who has used ayurvedic product.

3.4.3 Sample size


Sample size is the number of people who should be surveyed. For the study, sample size
of 100 respondents has been taken.

3.5 Sampling technique


As it was not feasible to carry out a census survey for the study in such a short time.
Hence, the sample size for the study undertaken was 100 respondents. So the sampling
technique used was CONVENIENCE SAMPLING

3.6 Data Analysis and Interpretation


After the data was collected it was compiled and classified and tabulated manually. The
task of drawing inferences was accomplished with the help of percentages and graphic
net.

Chapter-4
Analysis and Interpretation

16

Q1. Have you ever used ayurvedic products?


Table 1:
Options

No. of respondents

Yes

100

No

Figure 1

Interpretation: Above graph clearly shows that every respondent has used the
ayurvedic products. All 100 respondents have used ayurvedic products.

Q2. Through which mode you came to know about the ayurvedic product?
Table 2

17

Options

Average score

TV commercials

0.39

Magazine

0.17

Newspaper

0.10

Doctors prescription 0.18


Friend

0.19

Any other

0.03

0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0

TV

News

Friend

Figure 2

Interpretation: Most of the people came to know about the ayurvedic products through
TV commercials. Also friends and doctors play a major role in making the people aware
about these ayurvedic products.

Q3.Have you ever watched the advertisement of any ayurvedic product?

Table 3

18

Options

No. of respondents

Yes

100

No

Figure 3
Interpretation: all 100 respondents have watched the advertisement of ayurvedic
products this shows the level of interest among the customers.

Q4. Do advertisements influence your purchase decision?

Table 4
Options

No. of respondents

Yes

75

No

25

19

Figure 4

Interpretation: Out of 100 respondents 75 said that advertisement affect their buying
decisions. This shows the impact of promotion on the customers.

Q5. Choose the following features while buying any ayurvedic product.
Table 5
Options

Average score

20

Price

0.18

Brand name

0.33

Taste

0.19

Accessibility

0.12

Variety

0.11

Packaging

0.05

Scheme

0.03

Figure 5

Interpretation: Apart from the medicinal value of the ayurvedic products Brand
name plays an important role in buying decision of the ayurvedic products. Taste
and price of the product are also considered while buying any ayurvedic product.
Q6. Rank the following features of the ayurvedic product where 1 is the most preferred
and 5 is least preferred.
Table 6
Factors

Total score

21

No side effect

170

Cheap

361

Effectiveness

207

Variety

259

Availability

364

Figure 6

Interpretation: No side effect is the most preferred feature of ayurvedic product


and availability of ayurvedic product is the least preferred feature.

Q7. Rate the promotional modes adopted by the ayurvedic companies.


Table 7
Promotional
modes

V. Bad
(-2)

Bad
(-1)

Average
(0)

Good
(1)

Excellent
(2)

Mean
score

22

TV

(0)
0

Magazine

(0)
0

(3)
-6

Internet

(4)
-8

(15)
0

(7)

(50)
50

(17)
-17

(49)
49

(45)

1.6

(2)

0.04

(7)

0.06

110

(38)

-7

(55)

4
(17)

14

Figure 7

Interpretation: TV commercial is the excellent mode of promotion adopted by the


ayurvedic companies for promotion. Thus, ayurvedic companies should stress more on
TV commercials to make the people aware about their products.

Q8.Do the promotional modes make people buy the product.


Table 8
Level

S. Agree
(2)

Score

Agree
(1)

(13)
26

Average
(0)

(53)
53

Disagree
(-1)

(23)
0

S. disagree
(-2)

(2)
-2

(0)

Mean
score
0.77

0
23

Figure 8

Interpretation: Out of 100 respondents most of the people agree that the promotional
modes make people buy the ayurvedic products. Thus, it can be said that promotional
modes adopted by the companies influence the people for buying the ayurvedic products.

Q9. Which feature of promotion attracts you most?


Table 9
Options

No. of respondents

Brand ambassador

16

Special features

78

Variety

24

Figure 9

Interpretation: The features depicted in the promotion of ayurvedic product attracts the
customers most so, the companies should emphasize more on the features of the product.

Q10. How often do you purchase ayurvedic products under the influence of it
promotional effort?
Table 10
Options

No. of respondents

Most of the times

37

Sometimes

51

Never

12

25

Figure 10
Interpretation: 51 respondents out of 100 said that they bought the ayurvedic products
under the influence of promotion. 37 respondents said that most of the times they opt for
ayurvedic products under the influence of promotion

Chapter-5
Results & Findings

The study reveals that the most effective mode of promotion that should be
adopted by the ayurvedic companies is TV commercials. The study also reveals that
today customers are more Brand conscious. Apart from its medicinal value the key
feature for buying ayurvedic product is that it has no side-effects. The companies
should emphasize more on the special features in the promotion as customers get
more attracted to the features. As most of the customers buy the product under the

26

influence of the promotion so the ayurvedic companies should work on it so that the
impact is more.

Chapter-6
Conclusion
As 37% respondents said that most of the times they buy ayurvedic product under the
influence of promotion and 51% respondents sometimes buy the product so ayurvedic
companies should try their best to convert this chunk into the permanent customers. Still
there is a large mass that should be tapped. Ayurvedic companies should emphasize more
on the promotional modes so that customers awareness can be increased.

27

Bibliography

BW Bureau, How we did it, Business World, Vol. 2, Issue 46, 9 April
2007, Page 45.

http://www.ayurveda-herbal-remedy.com/discover- ayurveda/ayurvedavtaran.html

http://www.dabur.com/en/about/company/highlights.a sp
http://www.itmonline.org/arts/ayurind.htm

http://www.pppinindia.com/states_karnataka_kp.asp Company

Kothari C.R, Research Methodology Methods and Techniques, 2004,


New Age International (p) ltd, New Delhi, Edition II, Page 56-57.
28

Luck David et al, Marketing Research, 2004, Preutice-Hll, India, Edition


VIII, Page 53-59.

Philipose Mobis, the B W Real 500, Business World, Vol. 26, Issue 41, 7
March 2007, Page 60.

Times Bureau, Ayurveda in tourism, Economic Times, 8 March 2007,


Page 4.

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