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.

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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

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Table of Contents

Chapter Page

Preface 2

Acknowledgements 3

List of Tables 5

List of Figures 6

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

.

4

List of Tables

Serial

No.

Table

No.

Table Name Page No.

1 1 Awareness about ayurvedic product 17

2 2 Modes through which customers came to

know about ayurvedic product

18

3 3 Modes through which customers came to

know about ayurvedic product

19

4 4 Advertisements effecting purchase decisions 20

5 5 Factors considered while buying 21

6 6 Preference among various features 22

7 7 Level of influence regarding promotional

modes

23

8 8 Influence on buying decisions 24

9 9 Promotional attractiveness 25

10 10 Frequency of buying under the influence of

promotion

26

5

List of Figures

Serial

No.

Figure

No.

Figure Name Page

No.

1 1 Awareness about ayurvedic product 17

2 2 Modes through which customers came to

know about ayurvedic product

18

3 3 Modes through which customers came to

know about ayurvedic product

19

4 4 Advertisements effecting purchase decisions 20

5 5 Factors considered while buying 21

6 6 Preference among various features 22

7 7 Level of influence regarding promotional

modes

23

8 8 Influence on buying decisions 24

9 9 Promotional attractiveness 25

10 10 Frequency of buying under the influence of

promotion

26

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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).

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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.

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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

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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).

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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)

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.

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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.

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

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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.

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.

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CHAPTER 2

Objectives

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.

.

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CHAPTER 3

Research Methodology

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.

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3.4.1 Population:

All people of Ludhiana city who have used ayurvedic products.

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.

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Chapter-4Analysis and Interpretation

Q1. Have you ever used ayurvedic products?

Table 1:

Options No. of respondents

Yes 100

No 0

Figure 1

Interpretation: Above graph clearly shows that every respondent has used the

ayurvedic products. All 100 respondents have used ayurvedic products.

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

Table 2

Options Average score

TV commercials 0.39

Magazine 0.17

Newspaper 0.10

Doctor’s prescription

0.18

Friend 0.19

Any other 0.03

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.

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

Table 3

Options No. of respondents

Yes 100

No 0

Figure 3

Interpretation: all 100 respondents have watched the advertisement of ayurvedic

products this shows the level of interest among the customers.

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Q4. Do advertisements influence your purchase decision?

Table 4

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.

Options No. of respondents

Yes 75

No 25

20

Table 5

Options Average score

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.

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Table 6

Factors Total score

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.

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Table 7

Promotional modes

V. Bad(-2)

Bad(-1)

Average(0)

Good(1)

Excellent(2)

Mean score

TV (0)0

(0)0

(15)0

(50)50

(55)110

1.6

Magazine (3)-6

(7)-7

(38)0

(49) 49

(2)4

0.04

Internet (4)-8

(17)-17

(45)0

(17)1

(7)14

0.06

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

23

Level S. Agree(2)

Agree(1)

Average(0)

Disagree(-1)

S. disagree(-2)

Mean score

Score (13)26

(53)53

(23)0

(2)-2

(0)0

0.77

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 6

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

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

Options No. of respondents

Most of the times 37

Sometimes 51

Never 12

26

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

influence of the promotion so the ayurvedic companies should work on it so that the

impact is more.

Chapter-6

Conclusion

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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.

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2007, Page 45.

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avtaran.html

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Page 4.

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