A Project Report

On

A Study Of Consumer Behavior

Towards Herbal Product

Submitted in partial fulfillment of the requirements for the award of M.B.A.

degree

Submitted By
Jason jose
Abhishek kumar
Dibyaranjan behera
Meet detroja
Akshya age
Bhabesh mishra

Batch MBA 2018-20

(Division-C)

Under the Guidance of

Prof. Kumendra Raheja

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 DECLARATION

We hereby declare that the project titled “A Study Of Consumer Behavior

towards Herbal products” is an original piece of research work carried out by us
under the guidance of Prof. Kumendra Raheja .The information has been
collected from genuine and authentic sources. The work has been submitted in
partial fulfilment of the requirement of the Master of Business Administration to
University of SavitriBai Phule Pune.

Sr. No Name Signature

1. Jason jose
2. Abhishek kumar
3. Dibyaranjan behera
4. Meet detroja
5. Akshya age
6. Bhabesh Mishra

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 ACKNOWLEDGEMENT

Any accomplishments require the efforts of many people and this work is no
difference. We have been fortunate enough to get help and guidance from many
people. It is pleasure to acknowledge them, though it is still an inadequate
appreciation for their contribution.

We would not have completed this journey without help, guidance &support of
certain people who acted as guides and friends along the way. We would like to
express my deepest and sincere thanks to my faculty guide Prof. Kumendra
Raheja for his invaluable guidance and help. The project could not be completed
without his support and guidance.

He acted as a continuous source of inspiration and motivated me throughout the

duration of the project.

Again We sincerely thanks of him.

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 Table of Contents

Sr.no Topic Page No

1. Introduction 5-6

2. Objective Of The Herbal Products 7

3. Findings Of The Herbal Products 8

4. Learning Form The Herbal Product 9

5. Consumer Behavior 10

6. Consumer Decision Making Process 11-12

7. Purchase Influence Factor 13-14

8. Information Sources 15

9. Market Size 16-17

10. Top 5 companies 18-23

11. Data Analysis And Interpretation 24-29

12. Annexure 30-31

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 INTRODUCTION

Plants have been used for health and medical purposes for several thousands of years. The
number of higher plant species on earth is about 250 000. It is estimated that 35 000 to 70 000
species have, at one time or another, been used in some cultures for medicinal purposes. A
majority of the world's population in developing countries still relies on herbal medicines to meet
its health needs. Herbal medicines are often used to provide first-line and basic health service,
both to people living in remote areas where it is the only available health service, and to people
living in poor areas where it offers the only affordable remedy. Even in areas where modern
medicine is available, the interest on herbal medicines and their utilization have been increasing
rapidly in recent years. They can be marketed as skin, health, body care medicinal products,
dietary supplements, dietetic foods or food. A full registration is needed for medicinal products.
Products classified as health foods can state health claims unless they are referring to therapeutic
qualities. These products have to be traditionally used as food or flavouring.

The World Health Organization is fully aware of the importance of herbal product to many of
its Member States and supports the use of their products.
Now a day every well known company tried their product as a herbal and that means somewhere
is no side effect. in our Indian market herbal product consider as a doctorial product. Basically
herbal product considered as a type of convenient product. One of the basic tenets of herbal
product he get good response since last some years in Indian market and to make existence. now
a day easily available everywhere.

The increasing trend in herbal product among the people is the main reason that has amplified
the interest to research on the topic. People’s obsession about the herbal product has been
increasing rapidly. The aim of this research is therefore to find out consumer behaviour of herbal
product buyers in bavdhan pune Market. . The research is trying to find out that why do people
desire to purchase herbal product , what influence people in purchasing herbal product and what
motivate them in making the purchase decision.

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Different consumers have different characteristics in their life that also influences their buying
behaviour. Social factors such as family, groups, roles and status) and personal factors (such as
age, occupation, lifestyle, personality and self-concept) are those characteristics that could

influence the buyer behavior in making final decision.

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 OBJECTIVE OF THE HERBAL PRODUCTS
The main objective of this study was to contribute to the general understanding of consumers’
behavioral intention towards choice preferences of herbal products, and to assist practitioners and
policy makers in determining factors that motivates consumer intention towards herbal products.
This research should work towards predicting consumer choice behaviour, particularly focusing
on what factors that influence behavioural intention towards the choice preferences of herbal
products. As such this study was carried out to achieve the following objectives:
 To determine factors influencing consumers’ behavioural intention towards herbal products.
 To determine the relative importance of those significant determinants in influencing consumers’
behavioural intention towards herbal products.
 To analyze the consumer preference for brands of herbal product.
 To determine whether there is a significant difference between preferences for benefits of herbal
product on the basis of age group.
 To identify the most effective medium for advertisement of herbal product
 To identify what is the consumer’s attitudes an intention to purchase in the herbal product market
in India.
 To identify whether there is any No Side Effects of using herbal products or not?

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 FINDINGS OF THE HERBAL PRODUCTS

 From the project we find that the herbal product is used by more than 80% people {data collect
by survey of 125 people) .And 75% of people never face any side effect.
 The main reason for purchasing herbal product is its better response in the market and due to its
ability to cure health and skin problems.
 The survey we conducted we found that the consumers of age group of 21-25 are more.
 Consumers are loyal towards there herbal brand.
 Internet website / Social media / tv adds an important source of information where consumer can
aware about product .
 Age group of 21-25 are using herbal product more.

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 LEARNING FORM THE HERBAL PRODUCT

In this modern era, a herbal product is just not only the want but also a need if you know
how to make proper use of it. All the maximum respondents mentioned herbal product as their
need. Obviously, herbal product have changed the ways that used related health, body care and
give some kind of promise that no side effects all over the world. made lives easier for everyone.
That is the main reason that everyone move on for herbal product nowadays.

Herbal product companies should focus more on advertisements on internet Website and
social media.

As consumer wants more and more benefits so herbal product manufacturers should
increase the number of benefits in there product.
As the consumer prefers word of mouth or consulting someone tech savvy, so herbal product
brands must maintain their good will and increase service.

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 CONSUMER BEHAVIOR

Consumer behavior is the study of individuals, groups, or organizations and the processes they
use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and
the impacts that these processes have on the consumer and society. It blends elements from
psychology, sociology, social anthropology and economics. It attempts to understand the
decision-making processes of buyers, both individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioural variables in an attempt to
understand people's wants. It also tries to assess influences on the consumer from groups such as
family, friends,reference groups, and society in general. Customer behaviour study is based on
consumer buying behavior, with the customer playing the three distinct roles of user, payer and
buyer. Research has shown that consumer behaviour is difficult to predict,even for experts in the
field. Relationship marketing is an influential asset for customer behaviour analysis as it has a
keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of
the importance of the customer or buyer. A greater importance is also placed on consumer
retention, customer relationship management, personalisation,
customisation and one-to-one marketing. Marketing provides services in order to satisfy
customers. With that in mind, the productive system is considered from its beginning at the
production level,to the end of the cycle, the consumer.

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 CONSUMER DECISION MAKING PROCESS

Steps of the Decision Making Process

The following are the seven key steps of the decision making process:-
 Identify the decision: The first step in making the right decision is recognizing the problem
or opportunity and deciding to address it.

 Gather information: Next, it’s time to gather information so that you can make a decision
based on facts and data. This requires making a value judgment, determining what information is
relevant to the decision at hand, along with how you can get it. Ask yourself what you need to
know in order to make the right decision,then actively seek out anyone who needs to be involved.

 Identify alternatives: Once you have a clear understanding of the issue, it’s time to identify
the various solutions at your disposal. It’s likely that you have many different options when it
comes to making your decision, so it is important to come up with a range of options. This helps
you determine which course of action is the best way to achieve your objective.

 Weigh the evidence: In this step, you’ll need to “evaluate for feasibility, acceptability and
desirability” to know which alternative is best, according to management experts Phil Higson and
Anthony Sturgess. Managers need to be able to weigh pros and cons, then select the option that
has the highest chances of success. It may be helpful to seek out a trusted second opinion to gain
a new perspective on the issue at hand.

 Choose among alternatives: When it’s time to make your decision, be sure that you
understand the risks involved with your chosen route. You may also choose a combination of
alternatives now that you fully grasp all relevant information and potential risks.

 Take action: Next, you’ll need to create a plan for implementation. This involves identifying
what resources are required and gaining

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 support from employees and stakeholders. Getting others onboard with your decision is a key
component of executing your plan effectively, so be prepared to address any questions or
concerns that may arise.

 Review your decision: An often-overlooked but important step in the decision making
process is evaluating your decision for effectiveness. Ask yourself what you did well and what
can be improved next time.

Common Challenges of Decision Making:-

 Having too much or not enough information Gathering relevant information is key
when approaching the decision making process, but it’s important to identify how much
background information is truly required. “An overload of information can leave you confused
and misguided, and prevents you from following your intuition,” according to Corporate
Wellness Magazine.

In addition, relying on one single source of information can lead to bias and misinformation,
which can have disastrous effects down the line.

 Misidentifying the problem: In many cases, the issues surrounding your decision will be
obvious. However, there will be times when the decision is complex and you aren’t sure where
the main issue lies. Conduct thorough research and speak with internal experts who experience
the problem first hand in order to mitigate this. It will save you time and resources in the long
run, Corporate Wellness Magazine says.

 Overconfidence in the outcome. Even if you follow the steps of the decision making
process, there is still a chance that the outcome won’t be exactly what you had in mind. That’s
why it’s so important to identify a valid option that is plausible and achievable. Being
overconfident in an unlikely outcome can lead to adverse results.

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 PURCHASE INFLUENCE FACTOR

Individual factors- This category includes variables specifically related to an individual

decision maker. These variables are generally a result of individual life experiences (attitudes,
values, personality, etc.) and affect an individual's decision making process. This paper includes
the following individual variables:

Emotions - Environmental concerns and responsibility were found to have a positive and direct
impact on ecological knowledge, purchase intention and actual purchase behaviour. Thus, it can
be said that consumer emotions, specifically environmental concern, has a positive and direct
impact on consumer green purchase intention and behaviour.

Habits - Habit and past behaviour guide consumer preferences and influence their purchasing
behaviour, making it difficult to change.

Perceived consumer effectiveness - Perceived consumer effectiveness is one of the most

studied variables and has been defined as “consumers’ evaluation of the extent to which their
consumption can make a difference in the overall problem”. Perceived consumer effectiveness
was also found to indirectly influence consumer purchase intention since it significantly affected
consumer attitudes, subjective norms and perceived behavioural control which further
determined consumer purchase intention.

Perceived behavioural control - Perceived behavioural control is the perceived control

one has over one's actions. It refers to the capacity of an individual to perform a given behaviour.

Values and personal norms – the environmental, social and ethical values held by
consumers along with their individualistic values have a positive influence on green purchase
behaviour.

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Trust - In the context of herbal products, trust is defined as a belief or expectation about the
environmental performance of such products, , it can be said that lack of consumer trust in herbal
products acts as a barrier towards purchase behaviour.

Knowledge – knowledge may have a positive effect on consumer purchase intention and
behaviour.

Price - higher price outweighed ethical considerations and widened the attitude-behaviour gap
in case of purchase of herbal products, Lack of economic resources of consumers was found to
magnify the effect of price and act as a barrier to purchase of herbal products. However, low
price sensitivity of consumers was found to positively affect purchase behaviour.

Product availability – limited availability of a product had a negative influence on purchase

intention and behaviour, On the other hand, easy availability of the green product positively
affected green purchase behaviour. Thus, it can be said that limited availability and
inconvenience in procuring products act as barriers and increase the gap between consumer
positive attitude and actual behaviour towards purchasing.

Product attributes and quality – quality and healthiness of product have been reported as
important attributes for consumers who purchase herbal products, Therefore, it can be said that
functional and sustainable characteristics of products combined with high product quality
positively influence consumers’ purchase behaviour. Conversely, poor product attributes and
inferior quality may result in a conflict between personal needs of consumers and their sense of
environmental and social responsibility, which may further increase the inconsistency between
attitude and actual buying actions.

Brand image - Brand image in terms of herbal products can be defined as “a whole range of
impressions, conceptions and apprehensions towards a brand in the customers’ memory which is
correlated to the sustainability and eco-friendly concerns”.

Labelling and certification - labelling or certification informs consumers about the

characteristics of the product and motivates them to purchase herbal products.

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 INFORMATION SOURCES

Primary data

As survey is best suited for descriptive research the researcher gathered information directly
from individual respondents through personal interviews and questionnaire methods. The
interview is structured where the researcher asked questions in a sequence and prescribed
manner. Therefore the researcher to leans about the respondent's awareness of herbal products.

Secondary data

 Business journals
 Social Books
 Business magazines
 Libraries
 Internet, where wide knowledge about different areas is easily available.

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 INDUSTRY PROFILE OF HERBAL PRODUCT

Market Size

The global herbal product market size was valued at USD 71.19 billion in 2016 and is
expected to exhibit profitable growth over the forecast period. The increase is attributed to the
increasing preference of consumers towards traditional products (Ayurveda, Unani and
Traditional Indian product) which do not cause overdose toxicity and have fewer side effects. In
addition, increasing substantial research investments and funding will support the market growth
in near future.

The global plant-derived products market is expected to gain momentum over the projected
period due to the low cost of herbal product compared to other product. These drugs are
witnessing significant consideration at a global level. For instance, in China, this form was used
to treat severe acute respiratory syndrome (SARS). Increasing preference for cost-effective
treatment options for various medical conditions such as cold & cough, kidney disorders,
digestive problems and chest congestion is anticipated to enhance the further acceptance of these
medicine forms worldwide.

The herbal plants with several medicinal properties are used to treat a variety of disease
conditions. Furthermore, a single plant may contain many chemical constituents such as phenols,

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glycosides, polysaccharides, alkaloids, resins, and terpenoids which demonstrate therapeutic
activities in more than one medical conditions.

For instance, various polyphenolic compounds such as tannins, curcumin, flavonoids, and
gallacatechins are considered to possess anti-cancer properties and are expected to gain
popularity owing to increasing prevalence of cancer. Furthermore, high treatment cost of cancer
coupled with pipeline programs revealing anti-cancer activities of plants is anticipated to increase
the use of these in various therapies.

Herbal medicines are formulated in dosage forms such as tablets & capsules, powders, extracts,
pastes, gels, and oils. Tablets & capsules provide dose accuracy compared to other dosage forms.
Hence, the segment is expected to record the fastest growth over the forecast period. Poor
regulatory framework across the globe and less number of institutes providing knowledge of
herbal therapeutics due to lack of relevant research evidence are expected to hinder the market
growth.

Segmentation by product

• Tablets & Capsules

• Powders
• Extracts
• Others

The extracts segment generated a revenue of USD 27.1 billion in 2016 and is expected to reach
USD 44.6 billion by 2024. Higher absorption rates of extracts in comparison with other dosage
forms is supposed to drive the market over the forecast period. Properties such as spillage and
bad odor limit the use of extracts. Tablets & capsules segment is expected to witness the fastest
growth owing to increasing adoption of tablets over other dosage forms. Additionally, tablets are
easy to carry, which gives it an advantage over other formulations and now traditionally made
powders are being available in the form of tablets & capsules which provide higher dose
accuracy.

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Top 5 companies

1.Dabur

(Dabur India Ltd.) is India's largest Ayurvedic medicine & natural consumer products
manufacturer.
Dabur demerged its Pharma business in 2003[5] and hived it off into a separate company, Dabur
Pharma Ltd. German company Fresenius SE bought a 73.27% equity stake in Dabur Pharma in
June 2008 at Rs 76.50 a share.
Dabur's Healthcare Division has over 260 products for treating a range of ailments and body
conditions, from common cold to chronic paralysis. Dabur International, a fully owned
subsidiary of Dabur India formerly held shares in the UAE based Weikfield International, which
it sold in June 2012.

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2. Patanjali

ABOUT THE COMPANY:

Patanjali Ayurved Limited produces herbomineral heal care products, dental care products, food
products, cosmetics, toiletries, hair care products, and other products.

It offers food and beverages, such as flour, ghee, confectionary, oil, pickles, honey, spices, juices,
and sharbats;
personal care products, which include soaps, boby creams, mehandi, hand washes, toothpaste,
body oils, rose water, etc.;

ayurvedic products, which include general-digestives and chyawanprash; and other-capsules,

churnas, etc.

The company offers ayurvedic products for the treatment of cancer, AIDS, diabetes, arthritis,
thyroid,
and more. It provides its products through distributors, mega-stores, and chikitsalaya.

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3. Vicco

Vicco Group of Companies (Vishnu Industrial Chemical Company) was founded by late Shri
K.V.Pendharkar in 1952. Under umbrella of Vicco Group, Vicco Laboratories is the
manufacturer of Indian Ayurvedic Herbal Medicinal Products like herbal tooth paste Vicco
Vajradanti Paste, an herbal toothpaste Vicco Vajradanti SF Paste, an herbal tooth powder Vicco
Vajradanti powder, a natural turmeric skin cream Vicco Turmeric skin cream with and without
Sandal wood oil, herbal shaving cream Vicco Turmeric skin cream in shaving cream base, a
natural ayurvedic pain relief cream Vicco Narayani.
Vicco Turmeric cream is India's first fairness cream although it is not positioned as a fairness
cream. The product which is based on turmeric have a 54 year old history. The product was
launched in 1956 missed the liberalisation era all together.

Although the product is successfully exported, the potential of Vicco Turmeric is not fully
utilized in the Indian market. Vicco was marketed as a skin care cream . Over the years this
product is stereotyped as a brand for " would be brides" . The ads which was aired for a long time
had this theme.

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4. Himalaya

Eighty eight years ago, on a visit to Burma, Himalaya's founder, Mr. M. Manal, saw restless
elephants being fed with a root to pacify them. The plant from which this was taken is Rauwolfia
serpentina. Fascinated by the plant's effect on elephants, he had it scientifically evaluated. After
extensive research, Serpina®, the world's first anti-hypertensive drug, was launched in 1934.

This legacy of researching nature forms the foundation of Himalaya's operations. Himalaya uses
the tools of modern science to create pharmaceutical-grade ayurvedic products. We have
pioneered research that has converted Ayurveda's herbal tradition into a complete range of
proprietary formulations dedicated to healthy living and longevity. Today, these products have
found acceptance with medical fraternities and serve the health and personal care needs of
consumers in 90 countries.

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5. Baidya Nath

Shree Baidyanath Ayurved Bhawan was founded in 1917 by late Pt. Ram Dayal Joshi with a
vision of providing effective and readily available medicines to the population of India.
The legacy is forever etched in the company in the form of its strive to achieve excellence and set
new standards. His only mission was to cure people from diseases.

The oldest and pioneer of Ayurvedic Medicine, Baidyanath Ayurveda has also been evolving
with changes of times while addressing the current needs of today’s patients and focusing on
wide spread availability of the quality medicines in affordable prices in nook and corner of the
country

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 DATA ANALYSIS AND INTERPRETATION

1. Gender response towards herbal product

2. Age groups

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3.Income of herbal product users

4. Knowledge respondents about herbal products

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5. Users Of Herbal Products

In this chart 86.7% people who are using herbal products. And the
other side shows that 13.3% people are not using herbal products
also they are not aware of herbal product.

6. Those who are not using herbal product, The reasons from them.

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7. The different users of herbal products

8. Time period of using herbal products

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9.How customer known about herbal product

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Annexure

1) Are you aware of any herbal product?

□ Yes
□ No
2) Do you use any herbal product?
□ Yes
□ No
3) If no , then what are the reasons for not using herbal product ?
□ price
□ Availability
□ No substaintial difference in product performance
□ Any other ...........................................
4) Which herbal products do you use?
□ Skin care
□ Health care
□ Hair care
□ Toilet and bathroom care
□ Kitchen care
5) How long you are using herbal product?
□ 1 year
□ More than 1 year
6) Do you see any subtensitial difference in the performance of herbal
product against non - herbal product?
□ Yes
□ No
□ Not sure
7) How did you come to know about herbal product?
□ Advertisement
□ Internet
□ Newspaper
□ Others
8) What are the reasons for purchasing herbal product?
o Lower cost
o Better results
o Easy availibility
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o Low risk of side effects
9) What are the various factors that effect your choice of herbal product?
o Availability
o Price
o Family size
o Storage
o Other factor
10) Continue to use herbal product ?
o Yes
o No
11) If no , why …………………………………..

12) Which brand of herbal product do you use ?

a) Himalaya b) Patanjali c) Dabur d) Biotique e) Lotus

 Skin care [ ] [ ] [ ] [ ] [ ]

 Body care [ ] [ ] [ ] [ ] [ ]

 Health care [ ] [ ] [ ] [ ] [ ]

 Hair care [ ] [ ] [ ] [ ] [ ]

 Home care [ ] [ ] [ ] [ ] [ ]

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