INDIAN INSTITUTE OF PLANTATION MANAGEMENT, BENGALURU

(An Autonomous Organization promoted by Ministry of Commerce and Industry )

COURSE TITLE
Customer Orientation and Relationship Management
(CORM)

TITLE OF THE PAPER

“Consumer Behaviour towards Patanjali Products”

SUBMITTED TO
Dr. SHILPA S KOKATNUR Mam
ASSISTANT PROFESSOR
IIPM, BENGALURU

SUBMITTED BY
K.V.L. DEEPAK
19PGDM-ABPM13
APRIL 20,2020

1|P ag e
 CONSUMER BEHAVIOUR TOWARDS PATANJALI PRODUCTS

ABSTRACT:

Consumer Behavior analysis is crucial step in understanding the factors which was driving the
organization pull over/ pull back. It also helps in understanding changing needs of customers in dynamic
environment for taking decisions regarding new product development. This study is for the Patanjali
products done regarding its successful performance in past years in FMCG sector. To understand the
reason behind the positive consumer behavior or attitude towards by understanding each and every
component like consumer awareness, consumer preference, consumer satisfaction a consumer purchasing
decision. This study is conducted in Visakhapatnam Andhra Pradesh. The results of the study shown that
customer is showing positive consumer behavior because of high quality herbal products in more
convenient fashion, reasonable price, health benefits etc.

Keywords: Consumer Behavior, consumer awareness, Patanjali, Consumer satisfaction, consumer

purchasing decision

RESEARCH PROBLEM:

“what are the driving factors for consumer preference towards Patanjali Products?”

STATEMENT OF THE PROBLEM:

Patanjali Ayurved Limited was known for producing Quality herbomineral Preparation in more
convenient modern forms to the customer. They were in the market from 2007, initially they faced many
challenges to market their product but at present it is giving stiff competition to many multi-national
companies. The underlying reason for their success is more customer preference to their products. But
there is no clarity regarding the factors which influence customer to shift towards Patanjali Products.

BACKGROUND OF THE STUDY:

Patanjali Ayurved Limited was incorporated in the year 2006 under Companies Act, 1956. Patanjali
Ayurved Limited produces quality Herbomineral preparations. The quality was maintained by growing
many endangered herbs on its farmland under the Divya Yog Mandir Trust and Patanjali Yog Peeth. The
principles of Good Manufacturing Practices (GMP) are rigorously followed in the plant and Company prides
itself on being environment friendly. A high stress on quality, several quality circles and special quality

2|P ag e
circles and special project teams working on Total Quality Management (TQM) projects make quality a way
of life.

The company involved in producing wide range of products in Natural Health products, Natural Food
products, Ayurvedic Medicine, Herbal home care, Personal care and Patanjali publications. With the
appointment of Baba Ramdev as a Brand ambassador the product has taken a new look and seen a surge in
health consciousness of people among the country. By touching the ecocentrism among the people by
promoting products as “swadeshi products”. Likewise, many factors which lead to success of Patanjali. But
at maturity stage the company has to know which strategies to continue and which strategies to stop. To
understand this the consumer behaviour will help in getting required results.

INTRODUCTION:

Consumer behaviour involves the understanding that acquisition, use and disposition can occur over time in
a dynamic sequence. Behaviour occurs either for the individual, or in the context of a group (e.g., friend’s
influence what kinds of clothes a person wears) or an organisation (people on the job make decisions as to
which services the firm should use).

The American Marketing Association (AMA) defines consumer behaviour as “The dynamic interaction of
cognition, behaviour and environmental events by which human beings conduct the exchange aspect of
their lives”.

Consumer Behaviour analysis is the crucial step to predict the purchase, use and disposal of goods and
services by considering emotional pattern of consumer. Now with the changing trends the company
consideration towards customer has to be revised from king to God which helps in orienting company
policies towards customer centric approach. To achieve this identifying consumption pattern and factors
influencing consumption will be better understood by consumer behaviour analysis.

The association of customer to the particular brand will be influenced by many factors. These various factors
are classified into Internal and External Influence. The internal influences include personal and
psychographic factors on the other hand external influences include cultural and social factors. These factors
help in getting selection attention while making any purchase decision. The selection attention will be
created in the minds of customer by accessing more information to the customer across customer life cycle
through integrated marketing communication which help them to recall brand at the time of purchase.

Fast moving consumer goods is the fastest growing market in the country. The FMCG’s meet the daily
requirements of household in the country. It makes life easier for consumers by offering numerous products
with innovating packaging. By considering the growing health consciousness among the people the
introduction of herbal health benefits with modern daily necessary products Patanjali Ayurved Limited was
3|P ag e
established in 2006 by Yoga Guru Baba Ramdev along with Acharya Balakrishna completely marketing its
products on the basis of healthy, natural, farm fresh without any pesticides and chemical. With in 10 years
2016-17 the company is making sales revenue of 10567 crores.

This paper is mainly focussed on what are the driving factor of consumers for going to purchase Patanjali
products and the satisfaction level derived by the consumer after using the Patanjali products. The study
focuses on buying pattern behaviour with regard to different age groups and awareness level of Patanjali
products in the market.

OBJECTIVES:

1. To understand consumer awareness levels of Patanjali Products.

2. To identify the key factor of consumer that helps to purchase Patanjali Products.

3. To Examine buying behaviour pattern among the target group and satisfaction derived after using
Patanjali Products.

4. To suggest appropriate measures to the company

REVIEW OF LIETERATURE:

Consumer Awareness:

Katiyar, A., & Katiyar, N. (2014). In his article “An empirical study of Indian consumer buying behaviour
of FMCG products” he found that the perception of rural and urban are same. Customers are able to make
purchase decision based on the need of the product, extensive awareness of the product, and suitable
information sources of the product. While purchasing a product they are able to draw characteristics of
product based on the experience derived from the product like quality and satisfaction.

Dharmarasu, n., & mathavan, r. In his study “Brand awareness and preferences of consumer’s towards fast
moving consumer goods in paramathi velur town” he explained that the consumer awareness and preference
are mostly influenced by brand, price and quality of the FMCG Product. FMCG’s market remains highly
fragmented with almost half of the market representing brand up awareness of the products.

Jha, M. (2013). In his article “Brand awareness and consumer preference with reference to FMCG sector
in rural Bihar”. He says that Marketers need to focus on plummeting the information search time by inducing
product trials and successfully reaching out to the consumer through ideal information channels. Marketers
also need to understand the product specific evaluation process from primary research to mapping the
succession of their brand from consideration set to choose set. The brands’ potential can only be fulfilled by
continually reinforcing its perceived quality, up market identity and relevance to the buyer.

4|P ag e
Consumer Purchasing Behaviour:

Beed, D. In his research “Analysis of the factor affecting purchase decisions of fmcg products in the city of
Mumbai”. He found that customer buying behaviour will be influenced by many factors based on the
product. In case of FMCG the following factors influence buying behaviour in descending order they are
Freshness, Healthiness, Availability, Packaging, Local Popularity, Value for money, Local Tests, Quality.

Frank, Reema. (2018). In his article “consumer purchase behaviour towards Patanjali brand In
Mangalore”. He says that the customers are becoming more health-consciousness about obesity, tension
and other ill effects caused from food and other ingredients. It is the right place for the companies whose
products consisting more health benefits will reap maximum benefits from the market.

Bucking, W., & Van den Poel, D. (2005. In his article “Customer base analysis: partial defection of
behaviourally loyal clients in a non-contractual FMCG retail setting”. He found that there exists a weak
association between consumer lifestyle, fashion involvement and post-decision stage of consumer’s
purchasing behaviour with the impulse buying behaviour including the attitudinal as well as behavioural
aspects of the consumers buying behaviour. Pre-decision stage of consumer’s purchasing behaviour
established strong association with the impulse buying behaviour of the consumers.

Customer Preference and Satisfaction:

Morel, M., & Kwakye, F. (2012). In his articles “Green marketing: Consumers Attitude towards Eco-
friendly Products and Purchase Intention in the Fast-Moving Consumer Goods (FMCG) sector”. He says
that consumers who are already using eco-friendly products showing high preference to eco-friendly
products rather than artificial products. Satisfaction goes with the purchase intention. Moreover,
consumers are giving importance to green products by promoting through Word-of-Mouth and
Advertising the prospects of product. The consumers who are showing positive attitude are willing to pay
more rupee than usual.

Zaman, K., Arshad, A., & Shahzad, A. (2012). In his study “Customer loyalty in FMCG Sector
Pakistan”. It is found that there is a strong positive relation trust and loyalty. Customer satisfaction &
corporate image also have a positive and significant impact on customer loyalty. Hence company should
pay more attention toward the reputation of their company, satisfaction of their customers, and trust in
order to build loyalty of customers.

Nagaraju and Thejaswini (2015). In their study “Consumer perception analysis and Market awareness
towards eco-friendly FMCG products” analysed the fact that the customers give more preference to eco-
friendly FMCG products as they are very health and environment cautious. Patanjali has rightly marketed
its products in the same category.
5|P ag e
 RESEARCH METHODOLOGY

RESEARCH DESIGN:

Looking into the recent trends the market share of companies dealing with herbal and organic products was
increasing. By considering growing preference of consumers towards herbal or health care products in their
daily life a descriptive research is done to understand the driving factors for the consumer preference towards
Patanjali Products (which is the company dealing with herbal health care products in daily life).

For carrying out this research structured questionnaire (Google Forms) is developed for collecting both
Quantitative and Qualitative data. For doing this work a controlled group approach has been followed for
doing the assessment.

AREA OF STUDY: The survey was done among the consumers of Patanjali products in Visakhapatnam.

SAMPLE DESIGN:

A.) Sample Unit: To study the given objectives, consumers of Patanjali products are considered as sample
unit and data will be collected from them.

B.) Sampling Technique: The sampling adopted for this study is convenient sampling. It follows non-
probability distribution method or degree of non-randomness is present while choosing respondents of
the study. Hence, respondents of this study are selected non-randomly based on the convenience in the
area Visakhapatnam.

C.) Sample Size: The population of the study is 1 lakh moreover it was heterogenous. Hence total sample
of 55 was taken from three cluster of Visakhapatnam (Gopalapatnam, Chodavaram, yelamanchilli)
present based on location of Patanjali stores with the confidence level of 95%.

D.) Data Source: The study includes both Primary and secondary data.

Primary Data: The primary data collection was done using structured Questionnaire and data was
collected was collected from the consumers of Patanjali products. A structured Questionnaire was
prepared with close ended multiple-choice questions and open-ended questions for discussions and
additional information.

Secondary Data: Information related to consumers change in preference of herbal products in FMCG
sector collected from the articles.

E.) Data Collection Method: As the survey was conducted during Pandemic time of covid-19 the collection
method was digital survey for the consumers who are buying products from Patanjali stores.

6|P ag e
 DATA ANALYSIS & INTERPRETATION

Identification of driving factor for consumer preference towards Patanjali Products through Henry
Garret Ranking Method:

STEP 1: Identification of individual rating for each factor given by the respondents.

FACTORS / RANKS 1 2 3 4 5 COUNT

BEST QUALITY 14 7 19 9 6 55
Baba Ramdev (Swadeshi) 7 11 7 8 22 55
Wide Range of products 5 15 9 18 8 55
Health benefits 20 14 7 11 3 55
Reasonable Price 8 10 11 12 14 55

STEP 2: Calculate Percent Position = 100 (Rij – 0.5) / Nj

: Rij = 1st, 2nd, 3rd, 4th ,5th Nj = Total Ranks given by 55 Respondents = 5

Ranks Percentages Garret value

Rank 1 10 75
Rank 2 30 60
Rank 3 50 50
Rank 4 70 40
Rank 5 90 24

STEP 3: Multiply Garret value with count of each of rank

FACTORS / RANKS 1 2 3 4 5 TOTAL

BEST QUALITY 1050 420 950 360 144 2924
Baba Ramdev (Swadeshi) 525 660 350 320 528 2383
Wide Range of products 375 900 450 720 192 2637
Health benefits 1500 840 350 440 72 3202
Reasonable Price 600 600 550 480 336 2566

7|P ag e
STEP 4: Calculate Average score for each factor and assign highest rank for factor which have high
average score.

FACTORS / RANKS TOTAL AVERAGE SCORE 55 RANK

BEST QUALITY 2924 53.16363636 2
Baba Ramdev (Swadeshi) 2383 43.32727273 5
Wide Range of products 2637 47.94545455 3
Health benefits 3202 58.21818182 1
Reasonable Price 2566 46.65454545 4

From the Henry Garret Ranking method it is evident that the major driving factor among the identified
factors for customers preference towards Patanjali products is Health benefits derived from the particular
product.

CHI-SQUARE TEST (INDEPENDENCE ASSOCIATION)

OBJECTIVE:

To point out the significant association between Gender (Male, Female) V2 and Health-consciousness
of customers (V2) buying Patanjali Products.

DATA NATURE:

TECHNIQUES VARIABLE 1 VARIABLE 2

(Dependent variable) (Independent variable)

Chi-Square Test for Category Category

Independence association (Health Consciousness-Yes/ No) (Gender-Male, Female)

NULL HYPOTHESIS: There is no association between Gender (Male, Female) V2 and Health-
consciousness nature of customers (V2) buying Patanjali Products.

ALTERNATE HYPOTHESIS: There is an association between Gender (Male, Female) V2 and Health-
consciousness nature of customers (V2) buying Patanjali Products.

8|P ag e
DATA ANALYSIS:

STEP 1: Calculation of Observed frequency from the data set.

Observed frequency No Yes Grand Total

Female 7 24 31
Male 12 12 24
Grand Total 19 36 55

STEP 2: Calculation of Expected frequency = (Row total X Column total) /Grand Total

Expected frequency No Yes Grand Total

Female 10.70909091 20.29090909 31
Male 8.290909091 15.70909091 24
Grand total 19 36 55

STEP 3: Calculation of P- Value using Ms- Excel using CHITEST

P value = 0.033939755
STATISTICAL INTERPRETATION:

In this study regarding gender influence on health-consciousness of consumer, the P-value is 0.034 which
is less than 0.05 significant value hence we reject null hypothesis and accept alternate hypothesis at 95%
confidence interval. Hence, there is an association between gender and health-consciousness nature of
customer for preferring Patanjali Products.

“Identification of Profitable Distribution Channel”

Tabular Representation:

Distribution channel COUNT Values in %

Medical Store 1 1.82%
Patanjali stores 22 40.00%
Retail Shop (Kirana Stores) 6 10.91%
Super Markets (Demart, vijetha, more, spencer’s etc) 26 47.27%
Grand Total 55 100.00%

9|P ag e
Graphical Representation:

INTERPRETATION:

From the above tree chart, it is evident that the people are giving more preference (47.27%) to buy
Patanjali Products at Supermarkets like Demart, Vijetha, More, Spencer’s followed by Patanjali Stores
(40%), Retail shops (Kirana stores-10.91%). Among all the listed stores people are giving least preference
to buy Patanjali products at Medical Stores.

“To find out Consumer awareness and preferred media for Patanjali Products”

Consumer Awareness:

CONSUMER AWARENESS LEVEL

120.00%
98.18%
100.00%

80.00%

60.00%

40.00%

20.00%
1.82%
0.00%
NO YES

10 | P a g e
 INTERPRETATION:

From this graph, it is clearly showing that out of 55 Respondents 98.18% (54 participants) are aware of the
different type of products offered by Patanjali to consumers in various segments.

Preferred Media by consumers:

INTERPRETATION:

From this graph, it is evident from 55 respondents that about 41.82% of respondents are preferring
Patanjali based on Word-of -Mouth (Family or Friends), followed by means of Television Advertisement
which explains the product benefits by about 40%, followed by Newspaper 10.91% and Internet 7.27%.

“Analysis of customer satisfaction using Likert scale”

LIKERT SCALE:

Extremely Highly
dissatisfied satisfied

1 1 17 17 19
17

11 | P a g e
 Mode = 5 (Highly satisfied)
INTERPRETATION:

From the above Likert scale, out of 55 respondents 19 customers are highly satisfied with the Patanjali
products, followed by satisfied (17), Average (17), Dissatisfied (1), Extremely Dissatisfied (1). Through
descriptive statistics technique i.e. Mode it is found that Highly satisfied (5) is most repetitive response
given by the respondents.

“Identification of Consumer Monthly spending Pattern Gender-wise”

Graphical Representation:

GENDER-WISE SPENDING PATTERN

₹ 600.00
₹ 534.58

₹ 500.00
₹ 419.84
₹ 400.00

₹ 300.00

₹ 200.00

₹ 100.00

₹-
FEMALE MALE

INTERPRETATION:

From the graph, it is evident that there is a significant difference between gender-wise spending pattern.
That is male average spending pattern Rs. 534.58 is high when compared with female average spending
pattern which is Rs. 419.84.

FINDINGS:

➢ The major driving factor consumer preference is health benefits that will be derived from the
Patanjali products.

➢ There is a significant association between health consciousness of consumers a gender.

12 | P a g e
 ➢ The consumer awareness level of Patanjali products are higher (99.82%).

➢ The best promotional mix for the Patanjali products is Word-of- mouth and Television
advertisement contributing nearly 80% of total impact.

➢ The Patanjali products are frequently purchased by consumers at super markets (Demart, Vijetha,
More, Spencer’s) the reason behind this is better shopping experience provided at stores.

➢ The consumer satisfaction for Patanjali products mostly concentrated between average to highly
satisfied in that majority of the consumers who are preferring Patanjali products are highly
satisfied (34%).

➢ From the study it is evident the average spending of male customers is higher than the female
customers.

SUGGESTIONS:

➢ Patanjali advertisements in Digital platforms are not effectively reaching the targeted audience and
hence they should come with innovative campaigns and proper utilising Paid, owned and earned
media (POEM).

➢ As competitor companies like HUL is also producing same type of products like Patanjali for
example Patanjali toothpaste Danthkanth and Colgate Vedshakti and many products but still
Patanjali is maintaining its share only because of its low-price strategy. So Patanjali should come
up with new innovative products for increasing more customer base and reducing customer churn.

➢ As products of competitors are available in Digital e- commerce platforms. But as of late Patanjali
started selling its products online it should get more traffic hence Patanjali should invest more on
Digital platforms as it was cost-effective.

➢ As people are becoming more health consciousness Patanjali should enter into new market
segments to diversify its business.

CONCLUSION:

Patanjali Ayurved Limited is well known Indian FMCG company and has established its mark on the
market by providing herbal solution according to modern people requirements. The driving factor for
consumer awareness was mainly because of aggressive television advertisements and campaigns done by
Yoga guru Baba Ramdev which spread across the country by strongest media (Earned) i.e. word-of-
mouth. The second, the driving factor for consumer preference towards Patanjali products is because of
health benefits derived from the herbal solution products of Patanjali. The third, the driving factor for

13 | P a g e
consumer purchase behaviour is mix of few factors like reasonable price, quality, health benefits which the
consumers can recall the satisfaction derived from using Patanjali products and also ecocentrism have
given Patanjali a competitive edge in the FMCG market. The positive driving factors across all the
components of consumer behaviour i.e. Consumer awareness, consumer preference, consumer satisfaction
and consumer purchasing decision has made Patanjali aa sweet health success in indian marketing
environment.

BIBLOGRPHY:

1.Katiyar, A., & Katiyar, N. (2014). An empirical study of Indian consumer buying behaviour of FMCG
products (with special reference of bathing soap). International journal of management and commerce
innovations, 2(1), 211-217.

2. DHARMARASU, N., & MATHAVAN, R. BRAND AWARENESS AND PREFERENCES OF

CONSUMER’S TOWARDS FAST MOVING CONSUMER GOODS IN PARAMATHI VELUR TOWN.

3.Jha, M. (2013). Brand awareness and consumer preference with reference to FMCG sector in rural
Bihar. International Journal of Advanced Research in Management and Social Sciences, 2(11), 75-85.

4. Beed, D. Analysis of the factor affecting purchase decisions of fmcg products in the city of
Mumbai. Age, 546, 39.

5. Frank, Reema. (2018). CONSUMER PURCHASE BEHAVIOR TOWARDS PATANJALI BRAND IN

MANGALORE.

6. Buckinx, W., & Van den Poel, D. (2005). Customer base analysis: partial defection of behaviourally
loyal clients in a non-contractual FMCG retail setting. European journal of operational research, 164(1),
252-268.

7. Morel, M., & Kwakye, F. (2012). Green marketing: Consumers Attitude towards Eco-friendly Products
and Purchase Intention in the Fast-Moving Consumer Goods (FMCG) sector.

8. Zaman, K., Arshad, A., & Shahzad, A. (2012). Customer loyalty in FMCG Sector Pakistan. Information
Management and Business Review, 4(1), 41-48.

9. Nagaraju & Thejaswini (2015). Consumer perception analysis and Market awareness towards eco-
friendly FMCG products.

14 | P a g e