LITERATURE REVIEW

Patanajali (FMCG)

SHREYA JAIN
PGDM-0025
INTRODUCTION

With a population of around 1.34 billion [1], India is the second largest market in the world
in terms of consumers after China. This has resulted in an intensely competitive FMCG
space, with many established domestic and multinational players vying for supremacy.
Patanjali Ayurveda has risen amidst this competition riding on innovation, alternate
marketing techniques and cheap good quality products (pranshoe et al., 2016).The ever
changing marketing scenario and heightened competition over the globe has amplified the
role of brand at unparalleled level. Every person is a consumer of different brands at the same
time. The choice and usage of a particular brand by the consumer over the time is affected by
the quality benefits offered by the brand especially when it comes to brand of eatables and
cosmetics. Consumer satisfaction is derived when he compares the actual performance of the
product with the performance he expected out of the usage (Rupali, 2015). Given a much
broader array of product choices offered in the current market and ubiquitous marketing
efforts, consumers often turn to a favorite brand to facilitate their purchase decisions. A brand
includes a name, symbol, design, or experience that help consumers identify products,
services, or differentiate offerings among competitors (Aaker, 1991; Keller, 2008; Neumeier,
2006). Academic literature clearly addressed the importance of building a strong emotional
relationship between consumers and brands (Carroll &Ahuvia, 2006; Keller, 2001, 2008;
Taylor, Cluch, & Godwin, 2004).According to Keller‘s (2001) more recent conceptual
framework, consumers’ positive brand feelings lead to favorable responses towards a brand,
such as attitudinal attachment and behavioral loyalty.

LITERATURE REVIEW
RESEARCH BACKGROUND
The Indian herbal market is flooded with numerous well-known and recognised herbal
brands. Vindhya Herbal is an initiative of Madhya Pradesh government to provide
unadulterated ayurvedic products to the people and for generating gainful employment for
the vulnerable and downtrodden section of the society. The study is to examine existing
state of Vindhya Herbal in Bhopal, its birthplace. Besides, this study talks about other
parameters like benefits/attributes consumer acquaintances with herbal products, awareness,
preferential, source of knowledge, usage and attitude related to herbal products.
The research design consisted of an exploratory phase followed by a descriptive cross-
sectional, close-ended questionnaire-based survey in Bhopal. As the study has been
conducted in a Hindi belt, the questionnaire was kept bilingual; Hindi and English.
Sampling was done on the basis of two criteria; 1) such regions were selected where almost
major herbal brands are available and 2) Respondents have used at-least one of the herbal
brands.

Only 23 percent consumers responded to have used Vindhya herbal. Those who have used
Vindhya herbal have preference it, if available in a nearby store. Most of the respondents
mentioned that herbal products are prepared from the natural ingredient, as a result faced no
side effect. Purchase of herbal products primarily takes place on a monthly basis and use on
a daily basis. Doctors, family members and mass media were reliable sources and the
respondents trust on their recommendations for buying fresh herbal products. Desirability
for further information was high among consumers related to herbal products.

A study on consumer’s preference and perception towards Patanjali product:

From the analysis it is found that most of the customers are aware of the product through
advertisement, customers are satisfied with the quality & price of the product. All the
selected respondents were selected the product due to chemical free. Thus the result shows
that the users are satisfied with the Patanjali products. Ayurvedic and Herbal remedies are
available in all Patanjali and organic stores. Ayurvedic products are reasonably cost
effective and well accepted by customers. They are easily available and do not have side
effects. With its rich bio-diversity and rich heritage of Indian medicinal system, India would
draw world attention as an abode of eco-friendly medicinal systems that are in harmony
with the nature, it is concluded that all the customers are aware of the product, and the
customers are satisfied with the quality and price of the products. The Findings in the paper
show that there are many significant factors that together make up the buying decision of
the product. Customers’ perception towards a brand is built largely on the satisfactory value
the user receives after paying for the product and the benefits the user looks for. In the
above study, a large portion of the user is satisfied from Patanjali products. It may be
because of reasonable price of the product. It may be due to ability of the product to cure
 the problem. The satisfaction brings in the retention of customer. Patanjali is enjoying the
advantageous position in market through spirituality element involved in its products.
However, it should not ignore the competitors like Naturals, pure roots, Vindhya herbals.
Patanjali in order to retain more customers and satisfy them must fulfill the claims made by
the company before any other brand may mushroom up and take away the benefits of
marketing through spirituality.

METHODOLOGY
A single cross-sectional research design was used for the survey and quantitative analysis was
used for the obtained dataset.

Primary data collection data collection was done through the online website using an online-
Based questionnaire. The answering scale for the questions related to brand image, consumer
Perceptions, consumer preference, consumer satisfaction and brand loyalty is a 7-item Likert
scale from ‘extremely likely to extremely unlikely’.

Secondary sources have been used to collect information about ‘Patanjali’

Brands. Journals, articles, research reports and government documents were reviewed to get the
insight of the previous interventions that the stakeholders and policy makers have already in
place. Also websites of natural products manufacturing company and online document were
investigated to conduct this research.

36 respondents answered the questionnaire out of which 34 were used for the further analysis
MS Excel was used for analyzing the information in the obtained dataset. The types of analysis
that were performed are t-test analysis, ANOVA and Pearson Correlation. By doing it, their effect
on individual objective was studied.

SUGGESTIONS
Patanjali has built up a significant brand image irrespective of demographic profile of
consumers involving Gender, Age and Marital status.

But it should try to build up loyalty intentions among the consumers. So with reference to
preference and loyalty, it is essential for Patanjali to deal with consumers’ perception that
whether they are willing to advise their product to others in addition to having the intent to
purchase their products again in future.
Lastly, in order to make a flourishing brand Patanjali must pay special attention to building a
good brand image, customer perceptions and brand loyalty as part of their branding strategies.
Therefore all three of these factors, i.e. brand image, brand loyalty and consumer perceptions
would play a vital role in shaping their brand popularity.

CONCLUSION
The findings in the project show that there are many significant factors that together make up
the buying decision of the product. Customers’ perception towards a brand is built largely on
the brand image the user perceives after paying for the product and the benefits the user looks
for. In the above study, a large portion of the user is satisfied from Patanjali products. It may be
because of reasonable price of the product. It may be due to ability of the product to cure the
problem. The satisfaction brings in the retention of customer. Patanjali is enjoying the
advantageous position in market through spirituality element involved in its products.
However, it should not ignore the competitors like Naturals, pure roots, Vindhya herbals.
Patanjali in order to retain more customers and satisfy them, must fulfill the claims made by the
company before any other brand may take away the benefits of marketing through spirituality.