1. 1
FIELD STUDY REPORT
On
“Consumer Behavior on Himalaya
Herbals”
Towards partial fulfillment of
Integrated Master of Business Administration-Accounting And Finance
(IMBA AF)
School of Management, Babu Banarasi Das University, Lucknow
Submitted by
Shreya Dikshit
IVth Semester
Roll No- 1140677046
Session 2015-2016
School of Management
Babu Banarasi Das University
Lucknow
2. 2
PREFACE
As a part of our course curriculum I had to prepare a project report on any topic to get the
right exposure to the practical aspects of business management.
I want to express my gratitude for the experience and practical knowledge that I earned.
In this project report I had presented my great experience in the form of words. In making
the project report theoretical knowledge was needed more than the practical which was
given to us by my professors in my institutes. In the market the experience relating to the
practical knowledge was very good which realized me about the real conditions of the
marketing.
The project flows logically consisting of a questionnaire. I hope that the findings and the
suggestions will help the company, confidently to formulate its strategy in comparison to
its competitors.. I have tried my level best to make this report a reader friendly & also did
my level best to fulfill the objective of the Field study.
3. 3
CONTENT
SR.NO. INDEX PG.NO.
1. INTRODUCTION 6-13
2. COMPANY OVERVIEW 14-17
+ Objective of study
+ Limitations of study
+ SWOT Analysis
3. RESEARCH METHODOLOGY 18-21
4. FINDINGS AND SUGGESTIONS 22-23
5. CONCLUSION 24-25
6. BIBLIOGRAPHY 26
7. QUESTIONNAIRE 27-28
4. 4
Declaration
I hereby declare that the project work entitled of “Consumer
Behavior on Himalaya Herbals” submitted to the BABU BANARASI
DAS UNIVERSITY, is a record of an original work done by me under the
guidance of Ms. Nishu Jain and this project work is submitted in the partial
fulfillment of Integrated Masters in Business Administration – Accounting
And Finance.
Shreya Dikshit
5. 5
ACKNOWLEDGEMENT
An Old Chinese proverb says:
When eating your bamboo sprouts, remember the men who planted them.
Now that my sprouts are ready to eat, it is time for me to express my deepest gratitude to
all those who have made this possible.
We wish to express our sincere gratitude to Ms. Nishu Jain who guided us and
helped us from time to time to successfully conduct this research. We think
her direction was the best thing that could happen to us and our project.
I would also like to thank my friends for their valuable guidance, support and help during
my project. This project wouldn’t have seen the light of the day, if it weren’t for the
cooperation of all these people.
Last but not the least; I am also grateful to My Parents who have supported in my entire
endeavor’s to bring out this report successfully.
Shreya Dikshit
7. 7
INTRODUCTION
Consumer behaviour is the study of individuals, groups, or organizations and the
processes they use to select, secure, use, 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, marketing and economics. It
attempts to understand the decision-making processes of buyers, both individually and in
groups such as how emotions affect buying behaviour. 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, sports, reference groups, and society in general.
Consumer behavior involves the psychological processes that consumers go through in
recognizing needs, finding ways to solve these needs, making purchase decisions (e.g.,
whether or not to purchase a product and, if so, which brand and where), interpret
information, make plans, and implement these plans (e.g., by engaging in comparison
shopping or actually purchasing a product).
Customer behavior 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 behavior 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
8. 8
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. Social functions can be categorized into social choice and welfare
functions.
Consumer behavior encompasses a vast area including consumption pattern, consumer
preferences, consumer motivation, and consumer buying process & shopping behavior.
The purchase decision is influenced by various factors such as social, cultural,
demographic, personal, economic etc. So for effective marketing, the marketer must
know the basis of decisions taken by customers.
Factors Influencing ConsumerBehaviour
There are 4 main types of factors influencing consumer behavior: cultural factors, social
factors, personal factors and psychological factors.
I. Cultural factors
Cultural factors are coming from the different components related to culture or cultural
environment from which the consumer belongs.
9. 9
Culture and societalenvironment:
Culture is crucial when it comes to understanding the needs and behaviors of an
individual.
Throughout his existence, an individual will be influenced by his family, his friends, his
cultural environment or society that will “teach” him values, preferences as well as
common behaviors to their own culture.
For a brand, it is important to understand and take into account the cultural factors
inherent to each market or to each situation in order to adapt its product and its marketing
strategy. As these will play a role in the perception, habits, behavior or expectations of
consumers.
Sub-cultures :
A society is composed of several sub-cultures in which people can identify. Subcultures
are groups of people who share the same values based on a common experience or a
similar lifestyle in general.
Subcultures are the nationalities, religions, ethnic groups, age groups, gender of the
individual, etc.
The subcultures are often considered by the brands for the segmentation of a market in
order to adapt a product or a communication strategy to the values or the specific needs
of this segment.
11. 11
Social classes:
Social classes are defined as groups more or less homogenous and ranked against each
other according to a form of social hierarchy. Even if it’s very large groups, we usually
find similar values, lifestyles, interests and behaviors in individuals belonging to the same
social class.
We often assume three general categories among social classes : lower class, middle class
and upper class.
People from different social classes tend to have different desires and consumption
patterns. Disparities resulting from the difference in their purchasing power, but not only.
According to some researchers, behavior and buying habits would also be a way of
identification and belonging to its social class.
Cultural trends:
Cultural trends or “Bandwagon effect” are defined as trends widely followed by people
and which are amplified by their mere popularity and by conformity or compliance with
social pressure. The more people follow a trend, the more others will want to follow it.
They affect behavior and shopping habits of consumers and may be related to the release
of new products or become a source of innovation for brands.
By social pressure, desire to conformity or belonging to a group, desire to “follow fashion
trends” or simply due to the high visibility provided by media, consumers will be
influenced, consciously or unconsciously, by these trends.
12. 12
II. Socialfactors
Social factors are among the factors influencing consumer behavior significantly. They
fall into three categories: reference groups, family and social roles and status.
Reference groups and membership groups :
The membership groups of an individual are social groups to which he belongs and
which will influence him. The membership groups are usually related to its social origin,
age, place of residence, work, hobbies, leisure, etc..
The understanding of the specific features (mindset, values, lifestyle, etc..) of each group
allows brands to better target their advertising message.
More generally, reference groups are defined as those that provide to the individual some
points of comparison more or less direct about his behavior, lifestyle, desires or consumer
habits.
Within a reference group that influence the consumer buying behavior, several roles have
been identified:
The initiator: the person who suggests buying a product or service
The influencer: the person whose point of view or advice will influence the
buying decision. It may be a person outside the group (singer, athlete, actor, etc..)
but on which group members rely on.
13. 13
The decision-maker: the person who will choose which product to buy. In
general, it’s the consumer but in some cases it may be another person. For
example, the “leader” of a soccer supporters’ group (membership group) that will
define, for the whole group, which supporter’s scarf buy and bear during the next
game.
The buyer: the person who will buy the product. Generally, this will be the final
consumer.
Family:
The family is maybe the most influencing factor for an individual. It forms an
environment of socialization in which an individual will evolve, shape his personality,
acquire values. But also develop attitudes and opinions on various subjects such as
politics, society, social relations or himself and his desires.
But also on his consumer habits, his perception of brands and the products he buys.
Perceptions and family habits generally have a strong influence on the consumer buying
behavior. People will tend to keep the same as those acquired with their families.
Socialroles and status:
The position of an individual within his family, his work, his country club, his group of
friends, etc. – All this can be defined in terms of role and social status.
14. 14
A social role is a set of attitudes and activities that an individual is supposed to have and
do according to his profession and his position at work, his position in the family, his
gender, etc.. – and expectations of the people around him.
Social status meanwhile reflects the rank and the importance of this role in society or in
social groups. Some are more valued than others.
The social role and status profoundly influences the consumer behavior and his
purchasing decisions. Especially for all the “visible” products from other people.
III. Personalfactors:
Decisions and buying behavior are obviously also influenced by the characteristics of
each consumer.
Age and wayof life:
A consumer does not buy the same products or services at 20 or 70 years. His lifestyle,
values, environment, activities, hobbies and consumer habits evolve throughout his life.
For example, during his life, a consumer could change his diet from unhealthy products
(fast food, ready meals, etc..) to a healthier diet, during mid-life with family before
needing to follow a little later a low cholesterol diet to avoid health problems.
The factors influencing the buying decision process may also change. For example, the
“social value” of a brand generally play a more important role in the decision for a
consumer at 25 than at 65 years.
15. 15
Purchasing powerand revenue:
The purchasing power of an individual will have, of course, a decisive influence on his
behavior and purchasing decisions based on his income and his capital.
This obviously affects what he can afford, his perspective on money and the level of
importance of price in his purchasing decisions. But it also plays a role in the kind of
retailers where he goes or the kind of brands he buys.
Lifestyle:
The lifestyle of an individual includes all of its activities, interests, values and opinions.
The lifestyle of a consumer will influence on his behavior and purchasing decisions. For
example, a consumer with a healthy and balanced lifestyle will prefer to eat organic
products and go to specific grocery stores, will do some jogging regularly (and therefore
will buy shoes, clothes and specific products), etc..
Personalityand self-concept:
Personality is the set of traits and specific characteristics of each individual. It is the
product of the interaction of psychological and physiological characteristics of the
individual and results in constant behaviors.
16. 16
It materializes into some traits such as confidence, sociability, autonomy, charisma,
ambition, openness to others, shyness, curiosity, adaptability, etc..
While the self-concept is the image that the individual has – or would like to have – of
him and he conveys to his entourage. These two concepts greatly influence the individual
in his choices and his way of being in everyday life. And therefore also his shopping
behavior and purchasing habits as consumer.
IV. Psychological factors
Among the factors factors influencing consumer behavior, psychological factors can be
divided into 4 categories: motivation, perception, learning as well as beliefs and attitudes.
Motivation:
Motivation is what will drive consumers to develop a purchasing behavior. It is the
expression of a need is which became pressing enough to lead the consumer to want to
satisfy it. It is usually working at a subconscious level and is often difficult to measure.
Motivation is directly related to the need and is expressed in the same type of
classification as defined in the stages of the consumer buying decision process.
To increase sales and encourage consumers to purchase, brands should try to create,
make conscious or reinforce a need in the consumer’s mind so that he develops a
purchase motivation. He will be much more interested in considering and buy their
products.
17. 17
Perception:
Perception is the process through which an individual selects, organizes and interprets the
information he receives in order to do something that makes sense. The perception of a
situation at a given time may decide if and how the person will act.
Depending to his experiences, beliefs and personal characteristics, an individual will have
a different perception from another.
The perception mechanism of an individual is organized around three processes:
Selective Attention: The individual focuses only on a few details or stimulus to
which he is subjected. The type of information or stimuli to which an individual is
more sensitive depends on the person.
Selective Distortion: In many situations, two people are not going to interpret an
information or a stimulus in the same way. Each individual will have a different
perception based on his experience, state of mind, beliefs and attitudes. Selective
18. 18
distortion leads people to interpret situations in order to make them consistent
with their beliefs and values.
Selective Retention: People do not retain all the information and stimuli they
have been exposed to. Selective retention means what the individual will store
and retain from a given situation or a particular stimulus. As for selective
distortion, individuals tend to memorize information that will fit with their
existing beliefs and perceptions.
Learning:
Learning is through action. When we act, we learn. It implies a change in the behavior
resulting from the experience. The learning changes the behavior of an individual as he
acquires information and experience.
Beliefs and attitudes:
A belief is a conviction that an individual has on something. Through the experience he
acquires, his learning and his external influences (family, friends, etc..), he will develop
beliefs that will influence his buying behavior.
While an attitude can be defined as a feeling, an assessment of an object or idea and the
predisposition to act in a certain way toward that object. Attitudes allow the individual to
develop a coherent behavior against a class of similar objects or ideas.
19. 19
Beliefs as well as attitudes are generally well-anchored in the individual’s mind and are
difficult to change. For many people, their beliefs and attitudes are part of their
personality and of who they are.
CHAPTER II
20. 20
COMPANY PROFILE
HIMALAYA HERBALS
The Himalaya Drug Company was founded in 1930 by Mr. M. Manal with a
clear vision to bring Ayurveda to society in a contemporary form and to unravel the
mystery behind the 5,000 year old system of medicine. This included referring to ancient
ayurvedic texts, selecting indigenous herbs and subjecting the formulations to modern
pharmacological, toxicological and safety tests to create new drugs and therapies.
Eighty years ago, on a visit to Burma, Mr. 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, Serpinaâ, the world's first anti-hypertensive drug, was launched
in 1934.
The legacy of researching nature forms the foundation of Himalaya's operations.
Himalaya has pioneered the use of modern science to rediscover and validate ayurveda's
secrets. Cutting edge technology is employed to create pharmaceutical-grade ayurvedic
products. As a confirmation that Himalaya is dedicated to providing the highest quality
and consistency in herbal care, the Company was awarded an ISO 9001:2000
certification in 2003.
Since its inception, the company has focused on developing safe, natural and innovative
remedies that will help people lead richer, healthier lives. Today, Himalaya products have
been endorsed by 300,000 doctors around the globe and consumers in 67 countries rely
on Himalaya for their health and personal care needs.
21. 21
OVERVIEW:
make a positive difference to the communities in which we operate.
fundamental right to a good quality of life.
This involves access to health, education, a clean environment and freedom from poverty.
better health, education, sustainable development and economic empowerment, we do
our best to bring happiness to the lives of people who are marginalized and poor.
- if we want to prosper as a business we need to
ensure that the community prospers with us. By investing in the community we are
investing in our business.
OBJECTIVE OF THE STUDY:-
I. To study the demographic profile of the sample respondents.
II. To analyze the factors influencing on buying decisions.
III. To study the buying process of cosmetic products.
IV. The analyze the effect of media communication on buying behaviour
.
LIMITATIONS OF THE STUDY:-
During the course of study the following major limitations were observed,
i) Time is the major limitation, which has affected the inferences drawn in
the study.
ii) Some of the respondents were reluctant to share the information with the
researcher.
iii) As only one city was surveyed, it does not represent the overall view of
the Indian market.
22. 22
SWOT Analysis
Strength:
1. Strength in terms of its ideal
location at the foothills of the
Himalayas with the freshest of air and
the richest of soil.
2. It was India’s first frozen foods
company
3. Known for satisfying the needs of
its customers through innovative and
customer fit products.
Weakness:
1.High requirement of working
capital.
2.Seasonality of raw material
3.Pests can affect produce and create
a lot of problems.
Opportunities:
1.Opportunities in terms of opening
of global markets
2.Favourable demographic profile
and changing lifestyles
3.Opportunities in terms of
diversification into other product
categories.
4.Advertise and promotion
opportunities still largely untapped.
Threats:
1.High inventory carrying cost
2.Threat from global players planning
to enter the market.
3. Economic instability and inflation
in the country.
24. 24
RESEARCH METHODOLOGY
The methodology used in the study is as follow:
Sources ofData :
The study is based on both primary data & secondary data. The primary data has been
collected by using a questionnaire and the secondary data has been collected from books,
magazines and the internet.
Sample selectedforthe study :
A total of 10 respondents from Lucknow city were selected for the study. Convenience
sampling method has been followed for collecting the response from the respondents.
Area of the study :
The study area is limited to Lucknow city, Uttar Pradesh. It is identified as one of the fast
developing city in India with high per capita income.
Tools for analysis :
The statistical tool used for the purpose of the analysis of this study is simple percentage
technique and ranking techniques. After the collection of data through the questionnaire,
editing was done carefully. Based on the responses of the samples, tables were prepared.
The data collected were analyzed and interpreted with the help of tables.
Analysis and Interpretation:
Factor Ranking Method:
Under this method respondents were asked to assign the rank to the factors. The
preference is taken as total score assigned to a factor. The factor scoring the least value
is the most important rank & was determined with ascending order.
25. 25
Table No. 1: Demographic Characteristic of Respondents.
Characterstics Sub Categories Number Percentage
Male 5 5
Gender Female 5 5
Total 10 10
Below 15 years -
15 to 30 years 5 5
Age 30 to 45 years 4 4
45 years & above 1 1
Total 10 10
Married 6 6
Marital Status Unmarried 4 4
Total 10 10
High School 1 1
Graduate 3 3
Education Post Graduate 4 4
Others 2 2
Total 10 10
Student 2 2
Housewife 1 1
Govt. Service 1 1
Occupation Business 2 2
Private Service 2 2
Professionals 1 1
Any Other 1 1
Total 10 10
Low 2 2
Monthly Income Middle 6 6
High 2 2
Total 10 10
26. 26
Table No. 2 : PreferredPlaces forPurchase of Cosmetics.
Serial No. Place Score Rank
1 Permanent Stores 3.64 I
2 Shopping Malls 3.02 IV
3 Co-operative Bazaar 2.66 V
4 Private Shops 3.06 II
5 Medical Shops 3.03 III
Table No. 3 : Reasonsfor purchase from particular shop.
Serial No. Particulars Score Rank
1 Nearer to home 2.57 V
2 Variety of goods 3.97 II
3 Extension of credit 1.95 VI
4 Quality goods 4.66 I
5 Reasonable price 3.76 III
6 Good behavior 3.09 IV
7 Any other 1.30 VII
Table No 4 : Factors influencedon Choice ofBrand of Cosmetics.
Serial No. Particulars Score Rank
1 Advertisements 3.74 I
2 Shop Display 2.29 VI
3 Friends 3.28 III
4 Magazines 3.10 IV
5 Doctors/beautician 3.64 II
6 Shopkeeper
Suggestion
2.53 V
7 Impulse Buy 1.98 VII
Table No. 5 : Recommendationof Brand to Others.
Serial No. Opinion No. of respondents Percentage
1 YES 8 8
2 NO 2 2
Total 10 10
28. 28
FINDINGS
1) It has been observed that even though the cosmetic market is dominated by
female consumers, male consumers are coming at par with them.
2) The working respondents were found more conscious of their appearance and
ready to buy high priced products as compare to housewives & students.
3) Majority of the respondents preferred to purchase products from the shop that
provide quality products with variety at reasonable price.
4) Majority of the respondents preferred to purchase cosmetic products from
permanent stores, private bazaars & medical shops as they feel it is easily
available and products are of good quality.
5) Quality was found as a most important factor for purchase of cosmetics by the
respondents than price.
6) Most of the respondents are interested to recommend the product of others.
7) Television has found more impact on consumer and widely used for receiving
information about the product. The use of internet by students and highly
education consumers are also emerging as important factor.
8) It has been observed that in purchase decision, inspite of the impact of friends,
family members, beauticians and others, the actual decision to buy was taken by
the respondents on their own.
SUGGESTIONS
1) A company should market exclusive cosmetic products for male consumers.
2) A marketer should built up a prompt distribution channel to avoid the problem of
non – availability of products.
3) A proper communication should be created with doctor’s, beauticians should be
involved in advertisement to make them more attractive, affective and reliable.
4) Marketer should include your attitude and personal appeal in their advertising
communication as the consumer buy cosmetic products on their own.
30. 30
CONCLUSION
The modern market is highly competitive in nature. The consumer is the king in the
market. The importance gained by the individual consumer in the present market compel
the marketers to look the buying habits, preferences, taste, like and dislikes of consumers
and accordingly they need to revise its policies and marketing mix.
While purchase of cosmetic product, the consumers are found more quality conscious
preferred to purchase ayurvedic products, they wait for the brand during non- availability,
become emerging as important source of information and inspite of impact of other
factors, the actual brand decision is taken by themselves.
32. 32
QUESTIONNAIRE
1. NAME:
2. GENDER:
a) Male b) Female
3. AGE:
a) Below 15 years b) 15 to 30 years
c) 30 to 45 years d) 45 years and above
4. MARITAL STATUS:
a) Married b)Unmarried
5. EDUCATION:
a) High School b) Graduate
c) Post Graduate d) Other
6. OCCUPATION:
a) Student b) Housewives
c) Govt. Service d) Business
e) Private Service f) Professional
f) Any Other
7. MONTHLY INCOME:
a) Low
b) Middle
c) High
33. 33
8. Which skincare product do you use?
Ans: ____________________________________
9. What do you look for in a skincare product?
Ans:_____________________________________
10. Do you prefer Herbal or Ayurvedic products?
a) YES b) NO
11. How are you satisfied by your current product?
a) Highly Satisfied b) Satisfied
c) Neutral d) Dissatisfied
e) Highly Dissatisfied
12. Have you heard about HIMALAYA HERBAL PRODUCTS?
a) YES b) NO
13. Do you use HIMALAYA HERBAL PRODUCTS?
a) YES b) NO
14. How do you come to know about HIMALAYA HERBAL PRODUCTS?
a) Advertisement b) Shop Display
c) Friends d) Magazines
e) Doctor / beautician f) Shopkeeper’s Suggestion
15. Do you recommend HIMALAYA HERBAL PRODUCTS to friends and family?
a) YES b) NO
