STELLA MARIS COLLEGE (AUTONOMOUS)

A STUDY ON CONSUMER PERCEPTION TOWARDS

PATANJALI PRODUCTS

Submitted in partial fulfillment of the requirement for the award of the degree of

Bachelor of Business Administration

Submitted by

POORVI
17/UCMA/815
 CERTIFICATE

This is to certify that POORVI a student of BBA of STELLA MARIS COLLEGE has
undertaken the project under the guidance of Dr. NITHYA for the Project Titled “A STUDY
ON CONSUMER PERCEPTION TOWARDS PATANJALI PRODUCTS’’ .This Project
Report is prepared in partial fulfillment for the award of the degree of BACHELOR OF
BUSINESS ADMINISTRATION .

HEAD OF DEPARTMENT EXTERNAL EXAMINAR FACULTY GUIDE

Dr. VIDYA SRINIVASAN DR. NITHYA
 DECLARATION

I POORVI, hereby declare that the project entitled “A STUDY ON CONSUMER

PERCEPTION TOWARDS PATANJALI PRODUCTS’’ submitted to Stella Maris
College towards the partial fulfillment of degree of Bachelor of Business
Administration is a record of Bonafide and independent research work done by
me during the course of my study under the supervision and guidance of Dr.
Nithya , Department of Commerce shift 2, Stella Maris College.
 ACKNOWLEDGEMENT

First and foremost I wish to thank God, the almighty for enabling successful
completion of the Project. The satisfaction of the successful completion of any
task wouldn’t be complete without the expression of gratitude to the people who
made it possible.
I would like express my sincere gratitude to Dr. ROSY JOSEPH, f. m. m, Principal of
Stella Maris College, Chennai, Dr. LEEMA FRANCIS, Dean, Commerce & Business
studies, Stella Maris College, Dr. VIDYA SRINIVASAN, Head of the commerce
department, Stella Maris College, and Dr. NITHYA, Stella Maris College, for the
guidance and interest evinced throughout the preparation of this project . I
sincerely thank her for her contribution. I wish to take this opportunity to express
my endeavor.
I also would like to extend my gratitude to the respondents of my survey for their
kind co-operation.

PLACE: CHENNAI
DATE: POORVI
 INDEX

CHAPTER NO TOPIC PAGE NO

CHAPTER 1 INTRODUCTION

CHAPTER 2 REVIEW OF LITERSTURE

CHAPTER 3 THEORITICAL ASPECTS

OF THE STUDY

CHAPTER 4 DATA ANALYSIS

CHAPTER 5 SUGGESTTIONS AND

CONCLUSION

BIBLOGRAPHY

APPENDIX
LIST OF TABLES
LIST OF CHARTS
 INTRODUCTION

The project title “A STUDY ON CONDUMER PERCEPTION TOWARDS

PATANJALI PRODUCT’’ provides a comprehensive analysis regarding the
performance of the company and its product in the market.
The objectives of the proposed study is to identify the specific factors
that affect consumer perception towards Patanjali products. The
methodology approach to this study is descriptive, because we attempt
to identify and explain variables that exist in a given situation and to
describe the relationship that exists between these variables in order to
provide a picture of a particular phenomenon, but not to ferret out
cause effective relationship.
India has a large chunk of population which is at lower income level and
at middle income level. Thus the study will also determine the factors
influencing the purchasing behavior of the consumers, their view
towards the product and so on.
As we know that customer is the king of any business. It is essential to
understand customer expectations, their preference, towards the
product and their needs and wants. Without understanding consumer
behavior no one can survive. The main purpose of this project is to
study consumer perception towards Patanjali products.
PATANJALI AYURVED LTD
Patanjali Ayurveda Limited is an Indian consumer goods company. Patanjali Ayurveda was
formed in January, 2006 as a private limited company by Yoga Guru Ramdev and his partner Sri
Acharya Balkrishnaji. In June, 2007 it was converted to a public limited company. It is registered
under The Company Act 1956 and has its registered office in Bijwasan, New Delhi and
manufacturing units and headquarters are located in the Industrial area of Haridwar. The
company started with the vision of uplifting the life of Indian farmers by locally sourcing the
raw materials from them and making their lives better while at the same time provide an
opportunity to the Indian masses to move towards healthy lifestyle by promoting Ayurveda and
herbals products.
Patanjali Ayurved was co-founded by Acharya Balkrishnaji and Baba Ramdev to propagate the
science of ayurved. Today, some of the ayurvedic products produced by PAL are a strong
synergy between ancient wisdom and modern technology. Even though Acharya Balkrishnaji is
the primary stakeholder of the company, the main driving force behind Patanjali Ayurved is the
charisma and philosophy of Baba Ramdev, a yoga guru and ascetic of Indian origin.

Baba Ramdev started off as a yoga trainer who featured in televised programs in Aastha and
Sanskaar channel and made Indians realize that they have forgotten Indian tradition and art
forms.
Swami Ramdev born as Ramkishen Yadav on 25 December 1965 is an Indian yoga guru known
for his work in Ayurveda , business, politics and agriculture. He is frequently referred to as Baba
Ramdev. He co-founded the Patanjali Ayurved. Ltd. with his colleague Acharya Balkrishnaji.

It all started in the year 1995 when Baba Ramdev established Divya Yoga Mandir Trust with the
help of Acharya Balkrishnaji and Acharya Karamveer under the guidance of Swami Shankardev
ji. The trust mission was to put yoga and ayurved on the world map. With the aim of
popularizing yoga, Baba Ramdev started teaching yoga through small camps and shivirs. The
breakthrough moment came in the year 2002 when Sanskar, a spiritual channel in Hindi, signed
Baba Ramdev for its morning yoga program. The program was a hit. Next year 2003, the rival
channel of Sanskar, Aastha signed up Baba Ramdev for its 5 am yoga program titles “Divya
Yoga’’. This program made Baba Ramdev a household name across the country. This also gave a
big boost to Baba Ramdev’s yoga shivirs and camps. A typical yoga shivirs of Baba Ramdev
comprises of yoga and Pranayama postures with Baba Ramdev explaining the benefits of each
of those postures, the benefits of embracing ayurved, the testimonials of people who got cured
from terminal illness by practicing yoga and pranayama, singing patriotic songs and above all
Baba Ramdev explaining ill effects of the MNCs and their products on the Indian economy and
how they are looting India and exploiting Indian populace. It is estimated that around 70 million
people have been touched by Baba Ramdev through his yoga shivirs and experts assume this
number to rise to 200 million, going forward. The live telecast of yoga shivirs was instrumental
in building the brand Patanjali, yoga, ayurved and above all Baba Ramdev. Both Ramdev and
Balkrishnaji were working with a single minded focus to restore the original place of yoga and
ayurved as described in the Indian scriptures and ethos.

In 2006, Ramdev and Balkrishnaji establishes “Patanjali Yogpeeth Trust’’. A landmaek

organization fostering the cause of yoga, pranayama and ayurved. This further strengthened
the brand Patanjali. Also Patanjali Yogpeeth Trust is considered to be an organization which laid
the foundation for Patanjali ayurved limited to grow at a rapid pace. The basic objective of
Patanjali yogpeeth trust is to spread awareness of yoga, help the economically weak section of
the society by providing them free treatment of diseases and to perform cutting edge Research
and Development in Ayurved. Patanjali yogpeeth trust is located on Delhi-Haridwar highway in
a sprawling campus of 100 acres. It employs around 200 doctors and has a large treatment
facility through which ayurvedic treatment is provided to the economically weaker section of
the society. It is now a multinational organization with its brand offers located in countries like
US, UK. Canada and Nepal etc. Though Patanjali yopeeth trust Baba Ramdev had touched
millions of lives till date. Baba Ramdev and Acharya Balkrishnaji have established Divya Mandir
Yog Trust. These institutions have also established to the success of Patanjali ayurved ltd by
providing raw material manpower, technological knowhow etc.
THE COMPANY PROFILE
Company Profile of Patanjali Ayurved Limited – New Product Pipeline and Brand Image to
Drive Company Growth” provides a comprehensive analysis regarding the performance of the
company and its FMCG products in India. The report covers aspects such as the market size on
the basis of revenue generated from the sale of FMCG’s under various product categories. The
revenues of the company has been segmented based on various product categories including
nutrition and supplements, groceries, personal care, home care, ayurvedic medicines and books
and media. The revenues of the company have also been segmented on the basis of regional
sales and distribution channel. The publication also covers the value chain, working model,
consumer profile and pricing analysis of Patanjali products. In addition to this, a comparative
analysis of best selling. Patanjali products including honey, toothpaste, face wash, instant
noodles, biscuit and cookies and hair oil with other FMCG companies has been showcased in
order to understand the market share. The financial performance of the company, balance
sheet, P&L statement along with the expected future performance of the company has also
been showcased in the report. This report will help industry consultants, FMCG manufacturers,
dealers, retail chains, potential entrants into the FMCG segment and other stakeholders
to align their market centric strategies according to the ongoing and expected trends
in the future.
Patanjali Ayurveda Kendra Ltd was founded by Swami Ramdev and Acharya Balkrishnaji on
September 27th, 2007. It started its operation in Katmandu, Nepal to provide holistic, natural
and effective ayurvedic treatment. Patanjali Ayurved Limited (PAL) has three manufacturing
units at Haridwar, Uttarakhand with its registered office in New Delhi. The initial project of
Ramdev was his Patanjali Yogpeeth and since its inauguration in 2006, it has been labeled as
one of the largest centers for research on yoga and ayurveda in the world.
In its first year of operation, 2008, Patanjali generated a revenue of over 60 crores. Almost 10
years later, the homegrown venture has grown to be a 5000 crore company and posing a threat
to the well and established company in the
FMCG domain. According to CLSA and HSBC, Patanjali is the fastest growing FMCG company in
India. It was listed 13th in the list of India’s most trusted brands as of 2018 and rank first in
FMCG category.
ORGANISTONAL STRUCTURE
The Board of Directors is formed of three founding people. Swami Acharya Balkrishnaji is
serving as the managing director of the company. Two other member Swami Muktanandji and
Sri Ajay Kumar are also holding position as the directors of the company. Swami Ramdev do not
hold any position or stake in the company but does act as the Ambassador for the entire
Patanjali brand. The operation department id headed by Ramdev’s brother Ram Bharat.
Everyone else from the finance, logistics and other teams report to him. He is the informal CEO
but designation are not very formalized within Patanjali. Patanjali has over 20000 employees in
total. They hire street-smart people and do not look for MBA graduates only. This help them to
unprecendented growth.

REVENUE
Revenues
Year
(₹ RS in Crore)

2010-11 100

2011-12 300

2012-13 841

2013-14 1,184

2014-15 2,006

2015-16 5,000

2016-17 10,561 [17]

2017-18 8,135 [18]

PRODUCTION
Patanjali Food and Herbal Park at Haridwar is the main production facility operated by Patanjali
Ayurved. The company has a production capacity of ₹35,000 crore (US$5.1 billion) and is in the
process of expanding to a capacity of ₹60,000 crore (equivalent to ₹640 billion or US$9.3 billion
in 2018) through its new production units at several places, including Noida, Nagpur,
and [Link] company plans to establish further units in India and Nepal
In 2016, the Patanjali Food and Herbal Park was given a full-time security cover of 35
armed Central Industrial Security Force (CISF) commandos. The park will be the eighth private
institute in India to be guarded by CISF paramilitary forces. Baba Ramdev is himself a "Z"
category protectee of central paramilitary forces.

PRODUCT LINE
Founded in 2007, Delhi based Patanjali is India´s fastest growing consumer products brand, co-
founded by Baba Ramdev, Yoga guru, and Achary Balkrishna, an Ayurveda expert. They have
grown 10 times in revenue in just 5 years, earning 20 billion in FY2015.
They have a wide product line ranging from home care, cosmetics, health, food and beverages
and health drinks.

All their products are either 100% natural or with the minimum of chemical ingredients.
 The Soundarya Face Wash is highly popular with only natural ingredients in it’s such as tulsi,
amla, aloe vera, neem and orange peel extract. The Patanjali Sunscreen is all natural, made of
cucumber, wheat germ, mango ginger, turmeric, fenugreek, aloe vera, coconut oil and with an
SPF 30.

Their Coconut Hair washes shampoo consists of coconut oil, henna, methi, bhringraj, and
ghritkmari. Their Anti Wrinkle Cream is one of the most affordable creams in that category.
Apart from the above-listed products, some of the other most popular and highly rated
products include the Aloe Vera gel, Multani Mitti soap, Tejus beauty cream, Badam Rogan,
Divya Kanti Lep face mask, Boro Safe Antisep tic Cream, rose water and more.
For overall health, try their Amala juice which can be mixed with their Aloe Vera juice to cure
many ailments naturally. heetal Oil, a potent combination of sesame, mint, tulsi, amla, clove,
nilgiri and bringraj, is great to bring relief from many problems such as sleeplessness, headache,
cold, body pains, stress, dandruff, hair fall etc.

Their herbal toothpaste, Dant Kanti is a highly effective product containing babul and akarkara,
curing many tooth ailments such as tooth pain, gingivitis, bad breath etc. The deep brown color
and the strong pungent taste of the toothpaste might not appeal to some. Their Divya Sanjivani
Vati is great to fight against seasonal flu, cold, fever etc and build overall immunity.

Here is the complete list of Baba Ramdev’s Patanjali Products:-

Contents
 Skin Care Products by Swami Ramdev
 Hair Care Products
 Toiletries Products
 Herbal Home Products by Baba Ramdev
 Health Care
 Food Products
 Miscellaneous
The company also shared with the media its list of highest-selling products. So here's a look at
top five Patanjali products in terms of revenue.
1. Cow's ghee
2. Ayurvedic Medicines
3. Toothpaste
4. Shampoo
5. Soaps
6. Face wash
This financial year, the company is looking to enhance its focus on categories such as spices,
pulses, vegetable oil, biscuits, confectionery and juices and add more products into these
segments.
MISSION AND VISION OF PATANJALI

VISION
Keeping Nationalism, Ayurved and yoga as our pillars, we are committed to create a healthier
society and country. To raise the pride and story of the world, we are geared up to serve by
bringing the blessing of nature into their lives. With sheer dedication, scientific approach,
astute planning and realism, we are poised to write a new success story for the world.

MISSION
Making India an ideal place for the growth and development of Ayurveda and a prototype for
the rest of the world.
SWOT ANALYSIS

STRENGHTS
1. Patanjali has grown at a rapid pace within a short span.
2. Extensive marketing has pulled people into accepting its product as a healthier and safer
option.
3. Patanjali offers new products, new style of marketing etc has changed the market dynamics.
4. Excellent word of mouth marketing has helped the brand grow.

WEAKNESSES
1. Launched too many products in a short time.

2. Patanjali faced issue with advertising council of India.

OPPORTUNITIES
1. Patanjali can tap overseas market as Ayurveda is increasingly getting awareness.
2. Can enter more segments in personal hygiene, FMCG etc.
3. Can also diversify in apparels.
THREATS
1. Prominent FMCG players are coming up with their own variants of ayurvedic products.
2. Big players have their existing model which is sturdy, which can overcome new competition
from Patanjali.

OBJECTIVES
To study the brand perception of Patanjali in minds of consumers.
To know the attributes that a customer keep in mind while buying Patanjali.
To study the satisfaction level of consumers after using Patanjali product.
To study whether Patanjali product are genuine or not.
To know the post purchase behavior of user.

LIMITATION
RESEARCH METHODOLOGY

RESEARCH DESIGN
Research design refers to the choice of specific methods of data collection and analysis. In
the present study descriptive analysis has been carried out, to study the consumers perception
towards Patanjali products.

COLLECTION OF DATA
The task of data collection begins after a research problem has been defined and research plan
chalked out. While deciding about the method of data collection to be used for study, there are
two types of data source.
PRIMARY DATA
The primary data are those, which are collected fresh for the first time for the problem solution,
and thus happen to be original in character. It may be obtained from individual families and
respective.
SECONDARY DATA
The secondary data are those, which have already been collected by someone else and which
have to decide which have already been passed through the statistical process. Externally these
sources may include books or periodical reports, data services and computer data banks.
In the context of the project study, the source of data used by me foe this project is both primary
and secondary data. The primary data is the respondents who filled the questionnaire. The
secondary data is the theoretical aspects of the project
SAMPLING PLAN
SAMPLING UNIT
The sampling unit consist of individuals.

SAMPLING SIZE
It plays a vital role in the research. In the context of the project, 100 respondents are chosen
keeping in view the above constrains.

QUESTIONNAIRE DESIGN
The questionnaire was a google forms.

SAMPLE TECHNIQUE
Technique used under this project was multiple choice

DATA PROCESSING
The data collected was processed and analysed. The data was edited, coded and tabulated for
using statistical tools.

TOOLS OF ANALYSIS
Bar diagram
Pie chart
Chi square
Percentile
Annova
LITERATURE
REVIEW
Introduction

A news story in Business Standard (Rakshit, 2016) quotes the Nielsen report, "Anticipate with
Analytics: The Future of FMCG", and states that all the major Fast-Moving Consumer Goods
(FMCG) players in India are currently dealing with an extremely slow rate of growth. The report
mentions names like HUL and ITC in particular, whose growth rates have fallen from 13.2% and
11-12% to 3.2% and 7%, respectively, and compares them to the over ^2,000 cr turnover by
Patanjali Ayurved Ltd., a recent player in the market.

The said report marvels at Patanjali's success as a brand and tries to analyze the factors that
have made it a highly profitable venture within a very short span of time, in an era when big
FMCG giants are battling an industry-wise overall slowdown.

According to a detailed report in The Economic Times (PTI, 2016), Patanjali Ayurved clocked
^1,200 cr in revenues during the fiscal year 2013-14, and crossed ^2,000 cr in the year 2014-15,
which makes its turnover equivalent to that of companies like Emami. Different reports peg the
turnover of Patanjali Ayurved Ltd. to be between ^2,000 to ^2,500 cr in the fiscal year 2015-16.

Started in 2006, Patanjali Ayurved Ltd. has moved from selling its products from its ashram
premises and tuck shops to dedicated outlets and now even hypermarkets. Casual interactions
with retailers and shopkeepers reveal how the big FMCG corporates are changing their
marketing strategies, even slashing down prices significantly to compete with the Patanjali
bandwagon.

According to a report published by Kotak Institutional Equities, Patanjali garnered a 4.5%

market share in the toothpaste segment, while Colgate's share dropped by 0.6% to 57.3%
([Link], 2016). What makes a young company like Patanjali Ayurved Ltd. race
ahead and beat the veteran FMCG giants in their own game? This study attempts to address
this question by understanding the perceptions of consumers with respect to Patanjali
products.

The Current Scenario

Patanjali, founded by yoga guru Baba Ramdev, began as a small pharmacy in Haridwar in 1997
and currently manufactures over a thousand different products in many categories that include
healthcare, medicines, nutrition and supplements, grocery, personal care, home care, books
and media. A recent report published by Agency FAQs states that Patanjali was featured in the
2015 Brand Trust Report, a study conducted by brand intelligence and data insights firm Trust
Research Advisory, and was identified as one of the seven most trusted Ayurvedic brands in
India (Sharma, 2016). The same report quotes Broadcast Audience Research Council (BARC)
data that lists Patanjali advertisements as the third-highest broadcast commercials on Indian
television.

Patanjali Ayurved Ltd. - The Brand Story

According to renowned sociologist Vishvanathan (2016), Ramdev is the first spiritual guru who
actually transformed symbolism into actual production. Vishvanathan states that the
indigenousness of Patanjali products positions them as authentic, and Ramdev's established
knowledge and expertise on yoga and health issues adds credibility to the brand. The other
factors that have catalyzed the acceptance of this brand include the increasing consciousness
about healthy lifestyles, anxiety about other brands; and as Vishvanathan puts it, people
associate a sense of patriotism with buying Patanjali products.

Aaker (1997) states that effective brand positioning helps to situate a brand advantageously in
comparison with its competitors. Anand Halve (a leading brand consultant and the co-founder
of brand marketing agency, Chlorophyll) quoted in Sharma (2016) says: "Patanjali, because of
its association with Baba Ramdev, comes with enormous credibility. He has high media
presence and has leveraged political sentiment to define what he stands for-pride in
nationalism, traditional values and scientific wisdom. The lesson for brands is-it's important to
have a set of loyal, even obsessed, fans..

REVIEWS
KAMESWARA RAO PORANKI The researcher in this paper has studies different methods for
acquiring the information on consumer’s perception and expectations which influence the
purchasing and consumption of personnel care products. Also it is not always simple to
establish the connection between the physiological perception and reaction of the consumer
responds of in case of personal care of products. In the present globalized scenario, the
consumers today are much more demanding in terms of quality and safety.

SYEDA QUARTUALIAN KAZMI Consumer perception and buying behavior is normally measure
the development of perception through different variable and identify those factors which
stimulate buying decision of consumer. Among various variables which effect consumer buying
pattern I choose awareness and availability of the product.
S.H. KELKAR The World of natural ingredients is huge and there exist vast knowledge in India.
The consumer behaviors suggest how individual, groups organization select buy use and
dispose of goods, services, ideas pr experience to satisfy these needs and wants. The skin care
products or services. Implying to move describing the dynamic nature of skin care.

ASHWIN RAO The Indian personal care ingredients industry has taken rapid strides in the last
few years, as more and more personal care products incorporate specialty ingredients in their
formulation. Favorable demographic factors and increasing beauty consciousness indicate high
future demand for personal care products and specifically for active ingratiates.

POOJA RAMCHANDANI industry has become more competitive with the launch patanjali
products in India. The major presents in oral care, hair care, dental care and over the counter
product with its economical pricing across its brand portfolio. Serving the people by providing
them high-quality products at attractive Price.

report
S.H. KELKAR The World of natural ingredients is huge and there exist vast knowledge in India. A
A report in Business Standard (Rakshit, 2016) states that Patanjali “…has consistently
advertised its products harping on quality and purity thereby hoping to dispel consumers’
doubts on that score. And it has managed to keep prices low. Most importantly, it has
consistently communicated the special features of its products as well as the price. It is
currently aggressively advertising its honey as 43% cheaper than a competitor’s product (Dabur
honey) for a 250 g pack. Dabur’s 500 g honey is priced at 199; Patanjali honey 500 g is available
for 135 (32% cheaper)”. Somewhere in its brand story, the blending of spirituality (an otherwise
abstract concept) with material products became the prime mover for the brand. A popular
perception about Patanjali Ayurved Ltd. is that it is not driven by profits. This dimension of
sincerity and concern for public good has been critical in shaping a positive brand personality
for the Patanjali line of products. As Vishvanathan (2016) puts it, “Patanjali has been able to get
its script right. It is projected both as a fable and as a business case study, encompassing ethics
and economics in one stroke.

Sawant, (2013)1 , the research conducted by Sawant, (2013) the study mentioned that
consumers perception towards ayurvedic cosmetic products. The absence of side effect is the
most important factor that influence women in the purchase of skin care products.
Sinha and Singh reported (2015)2 , she said that, competition in the cosmetic market in India
between nation land international brand, and between herbal and chemical product. The
increase tendency and attraction of younger generation especially female are towards the
natural products.
Rekha and Gokila, (2016)3 , found that consumers are well aware with various herbal
cosmetics and now no longer considered as luxury items. The perception of side effect and the
chemical is the reason to switch over to herbal based cosmetics.

According to KhannaRupali (2015) in her study “customer Perception towards Brand: A Study
on Patanjali” explained us the factor influencing the Patanjali brand. Consumer perception
towards a brand depends on the satisfaction of after using the product by the customers. It was
found that majority of the users are satisfied from Patanjali products which will help them in
customer retention.

According to Nagaraju and Thejaswini (2015) in their study “Consumer perception analysis and
Market awareness towards eco-friendly FMCG products” analyzed the fact that the customers
give more preference to eco-friendly FMCG products as they are very helth and environment
cautious. Patanjali has rightly marketed its products in the same category.

According to Singh Surinder (2015) in his study “Consumer perception towards the FMCG in
rural market” tells about the rural customers are mainly influenced by media, print
advertisement and word of mouth. It plays a significant role in the buying decision of the
customer in the rural areas.

According to Ganesh and Rosario John (2015) in their study “Consumers perception towards
Brand loyalty of FMCG products” explained satisfaction creates brand loyalty after using the
product by the customers. Product knowledge and awareness plays an important role to create
brand image and loyalty in the minds of customers.

According to Chaudhary Mona and GhaiSneha (2015) in their study “Perception of Young
consumer towards Cause Marketing of FMCG Brands” concluded that the contribution made by
the company for development of the society plays an important role in the market. This
initiative of the company create good brand image in the society and attracts the youths.
According to Hassan Tabrez Syed (2014) in their study “A study of customer perception of
youth towards branded fashion apparels in Jalandhar city”. As per study it is analyzed that
youths are more interested and prefer to buy branded cloths. Because branded cloths are more
value for money, looks attractive and impress others. People are less loyal to branded cloths
price, offers, designs makes their purchase decision to buy.

Raghavendran V and Frank Reema (2015) in their study tell about the great awareness
amongst the consumers on healthy life which emphasises medical tourism for the purpose of
ayurveda and yogic treatments. This gives a significance boost to the Patanjali products as it
Volume 2, Issue 1, June 2018, ISSN No. 2456 - 9151 27 constitutes both the ayurvedic, herbal
products as well as Baba Ramdev as Yoga Guru who promotes healthy concepts.

According to Amrutha and PaiReshma (2015) in their study “Perception of Young Consumer
towards Campco Chocolates, Puttur”. The study was conducted in and around Puttur it is found
that people are aware about brand and they are happy with the Campco products. The
company is producing variety of chocolates and people are loyal to the brand.

Accroding to Sharma Chaitra (2015) in their study “Consumer Perception towards online
Grocery stores”. It is analyzed that customer buy grocery through online as it saves the time
and money. The customer buys goods in online on the basis of offer, discounts, product
availability, free home delivery and cash on delivery facility.

Accorsing to Shanthi and KannaiahDesti (2015) in their study on “The consumers perception
on online shopping”. It is found that majority of respondents are satisfied with online shopping
and they feel comfortable as they get more offers and easy return facility from the sellers. It
also saves time and transportation cost.

According to Kazmi and John William (2015) In their study “Consumer perception towards gold
jewellery on select retailers in Coimbatore district”. In this study it is found that the brand
image of the retailer builds trust in the minds of the customer. The purity, design and offers are
the important factors which affects the purchase decision of the customer.
Impact of Patanjali on the Indian FMCG Industry
Posted in Marketing & Strategy Articles, Total Reads: 8408 , Published on 20 July 2016

Patanjali Ayurveda Limited, an Indian FMCG company based out of Haridwar, is now creating a
lot of buzz in the FMCG space. The brand garnered a lot of space in Indian household shelves
pushing away the big brands. The journey so far has not just baffled the marketing gurus, but it
also stands as a testimony for the principle “Product Offerings which meet customer
requirements turnout successful”.

Patanjali was started in 1997 as a Pharmacy store to manufacture healthcare products in

Haridwar. It got incorporated as a company in 2006 and soon started to demonstrate its flair.
The company which had revenue of 162 cr in FY 10 has raised to humungous revenue of Rs
2500 Cr Company in FY15, registering a 14-fold growth. The company also sets a herculean
target to become Rs 10,000 Cr Company by the end of FY17.
A critical analysis on the company brings out few competencies which are transforming this
unbelievable target into reality.

1. Customer Centricity

Right from its inception, Patanjali Ayurveda has focused on one key aspect, to understand the
need for healthy and ayurvedic products and offer them to the customers. The company which
draws its inspiration from the Yoga guru Baba Ramdev and its CEO Acharya Balakrishna has
strived to amalgamate ancient Ayurveda with modern science and technology which resulted in
remarkable products. The company’s key standing is to provide best products at the affordable
range and accordingly positions its products at 20-30% cheaper than the regular FMCG
companies.

2. Distribution Network

Right from the beginning Patanjali is known to break the conventional paths. The company has
established a robust distribution network which works in a three level processes.
The company also entered into tie up with the biggest retailer, Future group in 2015 in order to
increase its presence and take natural products more closely to the consumers. This strategic
tie up will give access to 35 crore Future group customers along with presence in 240 cities
across India.

• The tie up is expected to bring Rs 40 crore per month business in the initial period which is
expected to scale up to 80 crore per month after 12 months

• As per the Dunnhumby, a UK based research company, Patanjali has bagged a share of 7-12%
in the categories of detergents, toothpastes, shampoos and soaps at Big Bazar stores

• Products of Patanjali were purchased by 21% of Future customers in January 2016 as

compared to 2% in October 2015

• Patanjali & Future group are also planning to strengthen their alliance by entering into a
manufacturing partnership in future

• Direct selling to Future group is expected to reduce the operating expenses which would
further bring down the price of products

• Franchise partnerships with Reliance retail, Hypercity and Star Bazaar

• Increase in the Swadeshi Kendra outlets to 4000 in 2015

3. Product Quality

At a time when all the FMCG brands were facing quality complaints and ban on their products,
Patanjali is the only product which stood the test and sustained to its commitment of making
quality as its benchmark. Though there were a few allegations against the substandard quality
products, the company proved against them. To strengthen their commitment, they have
displayed the quality certificates of various products on the website and also encourage the
customer to verify the same with their unique product ID

4. Growing Preference of Ayurvedic Products

The core of Patanjali is the ever growing strong customer preference towards Ayurvedic
products. This is evident from the robust growth figures reported by Patanjali and other Indian
FMCG companies operating in the herbal market space. While sales of Patanjali have jumped
64% in FY16, Dabur and Himalaya also reported a double digit growth which was otherwise
confined to 6-7% growth according to IMRB data. The growth in market share of Patanjali in Big
Bazar stores emphasizes the same.

5. Future Plans

• Aggressive expansion plans to tap further revenues across geographies

• To set up 6 manufacturing facilities in addition to current Food & Herbal park at Haridwar

• Company has plans to venture into new portfolios and thereby expand its product offerings to
the customers. Currently Patanjali manufactures 444 products which include 44 types of health
products and 30 types of food products.

While a lot of speculation happens over the success of Patanjali Ayurveda and its tough fight
against the established multi-national and cash rich FMCG brands, the company is currently
riding on high tide banking on the strong loyalty shown by its customers. However, it is granted
that the FMCG market is about to witness a lot of changes and disruptive methods in the
coming years. The rivalry between the MNC’s who strive to maintain their market share and
Patanjali which, with its innovative and effective products, aims to capture a major market
share will be one of the strong rivalry fights to look for and follow.

This article has been authored by Karteek Kala from IIM Raipur
ABSTRACTS
THEORITICAL
ASPECTS OF
THE STUDY
Did you know that you can gain and lose customers without even meeting them? From the
passers-by outside your corner store, to the viewers who visit your website, you can work on
gaining the attention of everyone who comes across your brand for the first time, in the hopes
that you can convert these newcomers into buyers. From there, you can go even further; you
can turn those first-time buyers into repeat buyers, and so on. It’s not easy, though, and you
will need to invest a lot of effort into creating a positive perception of your brand in your
customers' minds. If your customers already have a negative image of you, then your work is
cut out for you. So to know the consumer well their perception towards our brand is very
important. An over view on consumer perception.

CONSUMER PERCEPTION
The Business Dictionary defines consumer perception as a “marketing concept that
encompasses a customer’s impression, awareness or consciousness about a company or its
offerings. Typically, customer perception is affected by advertising, reviews, public relations,
social media, personal experiences, and other channels.”

The truth is that everything affects customer perception, from the way you position your
product vertically and horizontally on a shelf, to the colors and shapes you use in creating your
logo. Even things outside of your control, which may seem innocuous, such as the time of the
day when your customer interacts with your brand - even this will affect consumer perception.
Your customers might have a positive perception of you if they come across your products and
your niche during a certain time of the day, but they may hold a negative perception at another
time of day. This dual perception might not have anything to do with you; some people are not
morning people, and the worst time to try to sell 'not-morning' people is in the morning hours,
especially before they’ve had breakfast and coffee. You would do better to catch them right
after dinner, when they’re relaxed. Other people simply can’t concentrate on anything in the
evening, and would rather that you had caught their attention in the morning. Others are
somewhere in between, preferring that you reach them during the main part of the day. So, as
you can see, something as harmless as calling at the wrong hour or showing a potential
customer the right color at the wrong time and at the wrong place, might reward you with a
significant number of customers in at one time of day but a disappointing result at a different
time of day.
DEFINITON
Consumer perception to a process by which a customer selects, organize, or interprets
information/stimuli inputs to create a meaningful picture of the brand or the product .

Before we study about consumer perception, it is very important to know who is a consumer.

WHO IS A CONSUMER?
An individual who buys products or services for personal use and not for manufacture or resale.
A consumer is someone who can make the decision whether or not to purchase an item at
the store, and someone who can be influenced by marketing and advertisements. Any time
someone goes to a store and purchases a toy, shirt, beverage, or anything else, they
are making that decision as a consumer.

WHAT IS PERCEPTION?

“A process of interpretation of a present stimulus on the basis of past experience”.

Perception is not as simple as said here. It is an integrated approach. It is a synthetic process

where different physiological and psychological processes are involved. For example, the
accuracy of sense organs, clarity of sensations, mental set of an individual, etc. Otherwise our
perception may go wrong.

Combining both is what consumer perception. Everyone have their own

perception towards an object, so let see how consumer perception
influences buying decision.

CONSUMER BUYING DECISION

Consumer buying decision process is the process undertaken by consumer in regard to a
potential market transaction before, during and after the purchase of a product or service.
Consumer decision making process generally involves five stages:

Problem Recognition
Purchase decision making process begins when a buyer becomes aware of an unsatisfied need
or problem. This is the vital stage in buying decision process, because without recognizing the
need or want, an individual would not seek to buy goods or service

Information Search

After the consumer has recognized the need, he / she will try to find the means to solve that
need. First he / she will recall how he used to solve such kind of a problem in the past, this is
called nominal decision making. Secondly, a consumer will try to solve the problem by asking a
friend or goes to the market to seek advice for which product will best serve his need, this is
called limited decision making.

Alternatives evaluation

Consumers evaluate criteria referring to various dimensions; features, characteristics and

benefits that a consumer desires to solve a certain problem. Product features and its benefit is
what influence consumer to prefer that 23 particular product. The consumer will decide which
product to buy from a set of alternative products depending on each unique feature that the
product offers and the benefit he / she can get out of that feature.

Purchase Action

This stage involves selection of brand and the retail outlet to purchase such a product. Retail
outlet image and its location are important. Consumer usually prefers a nearby retail outlet for
minor shopping and they can willingly go to a far away store when they purchase items which
are of higher values and which involve higher sensitive purchase decision. After selecting where
to buy and what to buy, the consumer completes the final step of transaction by either cash or
credit.

Post-purchase Actions

Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with the

purchase is basically a function of the initial performance level expectation and perceived
performance relative to those expectations. Consumer tends to evaluate their wisdom on the
purchase of that particular product. This can result to consumer experiencing post purchase
dissatisfaction (Belk, R.W., 1988)3. If the consumer’s perceived performance level is below
expectation and fail to meet satisfaction this will eventually cause dissatisfaction, and so the
brand and/ or the outlet will not be considered by the consumer in the future purchases. This
might cause the consumer to initiate complaint behavior and spread negative word-of-mouth
concerning that particular products.

FACTORS INFLUENCING CONSUMER PERCEPTION

Although a consumer's perception of a product or service is at least partially based on his

actual experience with the good, a significant amount of market research suggests that a
consumer's view of a product is also conditioned by a variety of other factors. From very
concrete factors of price and quality to less tangible factors such a consumer's view of the
manufacturer's reputation, experience with service and the quality of packaging and
branding, a number of complex and interrelated psychological factors determine a
consumer's perception of goods and services.

Price
Price has a complex effect on consumer perception. On the one hand, consumers appreciate
a bargain and are often likely to favor an economically-priced item. On the other, consumers
often perceive very inexpensive items as cheap and discardable, ultimately damaging a
consumer's view of a product even if the product remains the same and the consumer is
benefited from a price reduction. Especially sophisticated or skeptical consumers are even
prone to distrust a product that is considerably cheaper than the alternatives. As a result,
price should be part of a comprehensive marketing plan, where even inexpensive products
are depicted as favorable alternatives with similar levels of quality to the competition, with a
price that is somewhat lower but still comparable with other possibilities.

Quality
Of course, the actual quality of a product is a vital part of a consumer's perception of a good
or service. Quality can describe any attribute in a set of characteristics that satisfy or
disappoint a consumer, including usability, reliability and durability. Marketing can influence a
consumer's perception of quality, but, in the end, and particularly with non-durable goods, a
consumer's actual experience with a product will determine his perception of quality. Outside
the realm of mass communication, word of mouth regarding quality also travels very
quickly.00:59

Service Quality
Even in the case of goods that exhibit numerous flaws, excellent service quality can often
overshadow a negative experience with the product itself. If a consumer feels that he
receives exceptional attention when encountering a problem with a product, that consumer
is somewhat more likely to trust the brand or product knowing that the manufacturer or
retailer provides a prompt and effective response to problems. Humans are social animals
and their consumer behavior is often determined by the social relationships that surround a
product, including interactions with customer service representatives.

Packaging and Branding

Packaging and branding have a huge effect on consumer perceptions, particularly at the point
of purchase. Especially when a consumers are purchasing a type of product for the first time,
the way the product is presented can wholly determine their perception of the item.
Packaging and branding, of course, cover everything from the attractiveness and display
quality of an item to the attributes of a product the manufacturer chooses to highlight.
Depending on the type of product and market, different branding messages from tough and
reliable to fine and luxurious can be appropriate and effective.

Reputation
A product's reputation is built up over time and is usually a combination of actual experience
with the product, word-of-mouth recommendations and marketing campaigns that attempt
to establish a status or shared view of the product or brand. A consumer's perception of a
product's reputation, moreover, is not only determined by the product's brand identity and
manufacturer but by the whole chain of distribution. Even if a consumer trusts a product's
manufacturer, for example, that consumer may change his mind about the product upon
seeing it available in a retailer he associates with cheap, defective products.
CUSTOMER NEED
The success of every company is dependent on its ability to create products and services that
address unmet customer needs. Despite this fact, in over 95 percent of all companies,
marketing and development managers don’t agree on what a customer “need” even is. More
specifically, they do not agree on what characteristics a customer need statement should
possess, what information it should contain, its purpose, and how it should be structured.

There are five questions that support any understanding of consumer behaviour.

i) Who is the market and what is the extent of their power with regard to the organisation?

ii) What do they buy?

iii) Why do they buy?

iv) Who is involved in the buying?

v) How do they buy?

vi) When do they buy?

vii) Where do they buy?

The answers of these questions provide the understanding of the ways in which buyers are

most likely to respond to marketing stimuli. The stimulus-response model of buyer behaviour is
shown below.