Patanjali was founded by Baba Ramdev in 2006. Patanjali deals in product like herbal product, ayurvedic medicines and various other consumer goods. Being new in market as compared to company like Seventh Generation which was founded in 1988, Patanjali had created a goodwill in market and capturing the market as well as prospective consumers at very rapid rate.I like to prove my point by using some concepts of microeconomics which are as follows:-
PEOPLE FACE TRADE-OFFS
Consumers are facing trade-offs which means they have to give up something which they want in-order get to get something they want by doing cost benefit analysis. Consumers are facing trade-offs between different varities of Patanjali product only for example :-
1. Patanjali Kesh kanti Natural Hair Shampoo and Patanjali kesh Kanti Anti Dandruff Shampoo both are Patanjali product as well as shampoo now consumers are facing trade-offs between both the shampoo that in-order to get natural and dandruff free hairs which shampoo has to be prefered.
2. Patanjali Almond Kesar Kanti bathing Soap and Patanjali Haldi-Chandan Kanti Soap both are Patanjali product as well as soaps now consumers are facing trade-offs between both the soap that in-order to get soft and moisturising skin which soap has to prefered.
LAW OF DEMAND
Price and Quantity of product are two most important factors to compare the demand of products . Price and Quantity are inversely related from each other. Inverse relationship between price of the product and quantity demanded by consumers shows willingness of the consumer to purchase at given time period, ceterius paribus (all other things remains constant).Therefore demand curve are downward sloping curve. For example :-
1. Price of Patanjali Muesil Fruit and Nut increases to Rs.110, quantity demanded decreases to 60 units in a specific area because consumer wants to fulfill all their needs but wants to spend less and as soon as price of Patanjali Muesil Fruit and Nut decreases to Rs.90, quantity demanded increases to 75 units.
2. Price of Patanjali Face Pack- Alovera Multani Mitti decreases to Rs.60, quantity demanded by the consumer increases to 80 units in a particular area and as soon as price of Patanjali Face pack increases to Rs.80, quantity demanded by decreases to 65 units.
LAW OF SUPPLY
Price and Quantity of product are two most important factors to compare the supply of products also. As mentioned above price and quantity are directly related to each other. Direct relationship between price of the product and quantity supplied by the producers shows that producers are more likely to sell their product when the price of product goes high and not ready to sell when price of the product is low in-order to earn maximum profit in their business.Therefore supply curve is upward sloping curve. For example:-
1. Price of Patanjali Ayurveda Saundarya Anti Aging increases to Rs.400, quantity supplied by the producers increases to 500 unit in a particular area, as soon as price of the product decreases to Rs. 300, quantity supplied of the product decreases to 450 units.
2. Price of Patanjali Ayurveda Kesh Kanti Hair Oil increases to Rs. 130, suppliers are more interested to sell their product in-order to earn maximum profit as compared to decreases in price to Rs.125.
FEW NON DETERMINANTS OF DEMAND
TASTE AND PREFERENCE
Consumers prefer Patanjali Dant Kanti Toothpaste more than Colgate because there is no harmful chemical in Patanjali products. their teeths remain germs free for atleast 24 hours . Therefore, sale of Patanjali Dant Kanti Toothpaste is increasing day by day.
PRICE OF SUBSTITUTE GOODS
PEOPLE FACE TRADE-OFFS
Consumers are facing trade-offs which means they have to give up something which they want in-order get to get something they want by doing cost benefit analysis. Consumers are facing trade-offs between different varities of Patanjali product only for example :-
1. Patanjali Kesh kanti Natural Hair Shampoo and Patanjali kesh Kanti Anti Dandruff Shampoo both are Patanjali product as well as shampoo now consumers are facing trade-offs between both the shampoo that in-order to get natural and dandruff free hairs which shampoo has to be prefered.
2. Patanjali Almond Kesar Kanti bathing Soap and Patanjali Haldi-Chandan Kanti Soap both are Patanjali product as well as soaps now consumers are facing trade-offs between both the soap that in-order to get soft and moisturising skin which soap has to prefered.
LAW OF DEMAND
Price and Quantity of product are two most important factors to compare the demand of products . Price and Quantity are inversely related from each other. Inverse relationship between price of the product and quantity demanded by consumers shows willingness of the consumer to purchase at given time period, ceterius paribus (all other things remains constant).Therefore demand curve are downward sloping curve. For example :-
1. Price of Patanjali Muesil Fruit and Nut increases to Rs.110, quantity demanded decreases to 60 units in a specific area because consumer wants to fulfill all their needs but wants to spend less and as soon as price of Patanjali Muesil Fruit and Nut decreases to Rs.90, quantity demanded increases to 75 units.
2. Price of Patanjali Face Pack- Alovera Multani Mitti decreases to Rs.60, quantity demanded by the consumer increases to 80 units in a particular area and as soon as price of Patanjali Face pack increases to Rs.80, quantity demanded by decreases to 65 units.
LAW OF SUPPLY
Price and Quantity of product are two most important factors to compare the supply of products also. As mentioned above price and quantity are directly related to each other. Direct relationship between price of the product and quantity supplied by the producers shows that producers are more likely to sell their product when the price of product goes high and not ready to sell when price of the product is low in-order to earn maximum profit in their business.Therefore supply curve is upward sloping curve. For example:-
1. Price of Patanjali Ayurveda Saundarya Anti Aging increases to Rs.400, quantity supplied by the producers increases to 500 unit in a particular area, as soon as price of the product decreases to Rs. 300, quantity supplied of the product decreases to 450 units.
2. Price of Patanjali Ayurveda Kesh Kanti Hair Oil increases to Rs. 130, suppliers are more interested to sell their product in-order to earn maximum profit as compared to decreases in price to Rs.125.
FEW NON DETERMINANTS OF DEMAND
TASTE AND PREFERENCE
Consumers prefer Patanjali Dant Kanti Toothpaste more than Colgate because there is no harmful chemical in Patanjali products. their teeths remain germs free for atleast 24 hours . Therefore, sale of Patanjali Dant Kanti Toothpaste is increasing day by day.
PRICE OF SUBSTITUTE GOODS
Consumers prefer Patanjali Ayurvedic Medicines more than Dabur Ltd because price of Patanjali Ayurvedic Medicines is less costlier as compared to Dabur Ltd and consumers wants achieve more satisfaction from the product and spend less.
ASSUMPTION OF UTILITY
CONSUMERS ARE NOT IDENTICAL
The rate at which marginal utility of Patanjali product dimnishes depends on individual consumer's tastes and preferences and it differs from consumer to consumer because all consumers are not same and their caste, creed and belief are different.
ASSUMPTION OF UTILITY
CONSUMERS ARE NOT IDENTICAL
The rate at which marginal utility of Patanjali product dimnishes depends on individual consumer's tastes and preferences and it differs from consumer to consumer because all consumers are not same and their caste, creed and belief are different.
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