A STUDY ON BRANDING VALUE OF PATANJALI

Chapter No.1: Introduction

"Brand value is the ‘perceived value’, and how often people will choose one brand over alternatives.
Brand value is important because when people perceive that a brand is distinct and aligns with their
personal values, it’s a really powerful competitive advantage." - Rani Cohen, Chief Marketing Officer.

Brand value of a company is not only their products and services, it is what they stand for. Brand value of a
company helps them to create strong bonds with their customers and target audience. It makes them believe
that they care for their customers. That's the reason why the majority of customers will prefer Fevicol or any
Glue in the market. That's the brand value of Fevicol.

A company has to build its brand value by improving their customer experience. By helping the customers to
reach out to the company and making their interaction as easy as possible. Many companies have done this
to gain their customers and target audience trust.

Also to have greater brand value the company should have unique ideas to offer their customers and target
audience which will make them different from their competitors
 PATANJALI AYURVEDA

HISTORY OF PATANJALI AYURVED

The Patanjali ayurved is basically known as Patanjali. It is an Indian brand located in Haridwar India.In
1995, Balkrishna and Baba Ramdev founded Divya Yoga Mandir Trust in Haridwar and then they together
founded the Company Patanjali in 2006. Patanjali is an FMCG company involved in the manufacturing and
trading of FMCG, herbal, cosmetics and ayurvedic products. At first it was a private company and in June
2007 it was converted into public Ltd with an objective of establishing the science of Ayurveda in
accordance and coordination with the latest technology and ancient wisdom. It is a registered company under
the Company’s Act, 1956, having its registered office in New Delhi and its headquarters and manufacturing
units located in Haridwar, Uttarakhand. Company. Patanjali hai 4 segments in it Food, Cosmetics, Home
care, Ayurvedic products. It has become the fastest growing Indian FMCG organisation till date and its
growth rate has created high benchmarks for competition to emulate. The following figure narrates the story
of Patanjali Ayurved’s phenomenal growth:

The idea of the company patanjali was to “Link the rising destiny of millions of masses on the one and and
many more sufferings and leading unhealthy urban life style on the other” this indicates that Patanjali
Ayurved’s idea was determined to manufacture products for the benefit of mankind. Their idea was
acknowledged by their target audience which made them the leading manufacturer of made in India goods.
In India, trust and faith still form an engaging proposition than science and logic which made the path easier
for Baba Ramdev to seize the opportunity with the slogan “Prakriti ka Ashirwad.” This young brand with a
focus on “Swadeshi” positioning and underlining their products with phrases “natural and pure”

FOUNDERS OF PATANJALI AYURVEDA

Swami Ramdev (born Ram Kisan Yadav in 1965), also known as Baba Ramdev, is an Indian yoga teacher,
primarily known for his popularising Yoga and Ayurveda in India. Baba Ramdev made Indians realise that
people are forgetting their Indian traditions and the origin of Yog. His ideology gave the company a good
start.
While Ramdev does not hold a stake in Patanjali Ayurved, he is the face of the Company and endorses its
products to his followers across his yoga camps and television programs.

Acharya Balkrishna owns 94% of the company and serves as its managing director. He is a close aide of
Baba Ramdev. Acharya Balkrishna listed in India's 50 most influential personalities 2020. He was reported
India's third-youngest billionaire by Forbes India Rich List 2020. He is also the second billionaire of
Nepalese Origin.

“We don’t know markets or marketing…. but what we know is serving the people by providing them high-
quality products at attractive prices.”

Acharya Balkrishna, MD, Patanjali Ayurved Ltd

 ORGANI
SING STRUCTURE OF PATANJALI AYURVED

The Company consists of three Board of Directors. Acharya Balakrishna is the Managing Director of the
Company. Swami Muktanandji and Shri Ajay Kumar Arya are also serving as the Directors of the
Company. Baba Ramdev does not hold any position in the company but acts solely as the Brand
Ambassador for Patanjali Ayurved.

Baba Ramdev’s brother Ram Bharat is heading the Operations Department in the company. People from
other departments and teams report directly to him. The Company does not believe in hiring only Post
graduates and MBA as they believe people could have a great idea without having degrees.

Patanjali - Name, Logo & Tagline

The word "Patanjali" is a Sanskrit name that comes from "patta" (which means falling, flying) and "añj"
( meaning honour, beautiful) or "añjali" ( joining palms of the hand). The name Patanjali came from a
‘Famous Yoga Philosopher' who had composed the 195 forms of yoga 5000 years ago, commonly known
as Patanjali Yoga Sutra.

Baba Ramdev and Acharya Balkrishan named this Company on Sage Patanjali’s name because he was the
one who prevailed beliefs about yoga under one roof in his famous study, Patanjali Yoga Sutra. The duo

believed that natural and herbal products can be the new future of India.
The Brand “Patanjali Ayurved” has a unique as well as convincing tagline - “Prakriti ka Ashirwad” which
indicates that it uses Ayurveda, organic and natural ingredients in the products to create a long and healthy
lifestyle for their consumers. The target audience are all the Indian households which believe what products
they are using are truly nature’s blessings

Patanjali is a brand which laid the foundation with the combination of both brands as well as personality
Identity. In the beginning Baba Ramdev has proved himself as a Yoga Guru and informed Yoga as a solution
to many health challenges. Baba Ramdev believed that Indians are getting hold of western influence and
food which made our lifestyle sedentary and unhealthy. He started by teaching yoga to an Indian audience.
Aastha channel broadcasted his Yog shows in various cities. He slowly got a wide acceptance .He made
people realise that Indians have forgotten their old traditions and art forms –Yoga being one of them. Elders
of the family related to his combination of spirituality and tradition and started this practice in their family
too and later widely accepted his brand as well.
 VISION OF THE COMPANY

Keeping Nationalism, Ayurveda and Yog as their pillars, they are committed to create a healthier society and
country. To raise the pride and glory of the world, they are geared up to serve people by bringing the
blessings of nature into their lives. With sheer dedication, scientific approach, astute planning and realism,
they are poised to write a new success story for the world.

MISSION OF THE COMPANY

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

PATANJALI’S STRENGTH

1. Founder- Ramdev baba, a Hindu spiritual guru. Baba ramdev is the main reason behind the boosted
growth of Patanjali.Baba ramdev is the brand ambassador of Patanjali and he use the fame and popularity to
persuade consumer to buy their product.Ramdev baba influence and manage to boost the growth of the
company.The patanjali brand wouldn’t be such a big brand without Ramdev baba.
2. Pricing strategy-The pricing structure gives the advantage to Patanjali to go over their competitor.The
brand has managed to take the interest of middle and lower class demographic.The products are priced at
least 20-30% lower than their competitor. They make products budget-friendly which are easily accessible
and preferred by most people.

3. Launch of New Products – Patanjali has recently launched some new list of products. The company has
offered products like cow milk, flavoured milk, curd, buttermilk, cheese and new cosmetics. Additionally,
Patanjali now also offers frozen vegetables eg. peas, sweet corn, mixed vegetables. Patanjalito competes
with MCcains. Patanjali is also planning to launch their own packaged drinking water, named Divya Jal.

4. Ayurveda and Herbal – Patanjali utilised Ayurveda and herbal products properly. Their marketing
strategy is to promote themselves with herbal products and highlighting the benefits with natural and organic
materials. The Swadeshi products which Patanjali markets are both loved and widely consumed by the
Indians on a large scale.

5. Strong Distribution Channels – More than 15,000 outlets of patanjali are operating across India, which
make the distribution channel much more stronger. The brand sells their products through medical centres
Patanjali Arogya Kendras and Patanjali Chikitsalayas and also in Swadeshi Kendras (non-medical centres).
This helps the brand to reach the brand to the mass consumer and gain their trust and make their consumer
loyal to themselves

6. Word of Mouth Marketing – Patanjali uses word of mouth publicity strategy. Patanjali was the first
brand to use this strategy. Word of mouth publicity proved to be beneficial for Patanjali with the help of
Baba Ramdev’s yoga campaign, followers like to promote and endorse the brand due to it. In recent years,
the company has been pushing its products through all promotional campaigns of baba ramdev and their
other camp. Due to this the Patanjali has solidified its market position.

7. E-commerce – Patanjali has an E-commerce advantage. They sell a lot of products through E-commerce
platforms. Due to this, consumers find it easy to buy their product online
 Patanjali’s Weaknesses

Relianceroducts comprised the balance. The company has adequate capacity to achieve its revenue target of
INR50 on Baba Ramdev – Baba Ramdev is a public figure and attracts a lot of people towards him and it is
also true that the brand is heavily dependent on him. The yog guru has been into a log of controversies which
is not a good thing for the brand image of the company. There are many incidents when Baba Rmdev has to
make a public apology . Incidents like this can degrade Patanjali’s brand Value and image.

Current Pricing Strategy – Patanjali needs to revise its current pricing strategy or otherwise the company
will fail to sustain itself. The current pricing strategy gives low- profit margins which are necessary for its
survival. Patanjali will have to deal with high labour cost and raw material cost if it doesn’t change its
pricing strategy as per the market.

Excessive Product Offerings – Patanjali has way too numerous products in its portfolio. Some of these are
profitable while others fail to induce any profit. Despite having such a different product portfolio only 5 or 6
products like soap and toothpaste induce high sales. Patanjali needs to discontinue low profit products or solidify
them so they can induce substantial gains.

Lower Margins for Distributors –Patanjali’s core focus is on volume and not on their margin. They offer
lower margin to distributors as opposed to other companies that deal in consumer goods. For this reason,
Patanjali is a demand-driven company.

Limited presence in the International Market – Patanjali is a brand that has a Transnational appeal thanks
to its fantastic outlook.Still, it has substantially confined itself in the Indian market. Baba Ramdev has an
international followership, and he can give an incitement in regions where his strongest demographic base is
located like Nepal. Also, the company needs to target the young Indian demographic that's internet expertise
and technologically advanced.
 Patanjali’s Opportunities

Natural & herbal products –Many people are now switching to organic and natural products in day to day
life. This is the perfect time to invest more in its organic farming sector, in terms of raising awareness abouts
products' benefits and no side effects with natural ingredients. Patanjali should continue to promote its herbal
and natural goods.

Global Markets – The International markets can provide a good opportunity to brands like Patanjali. The
company is a combination of Natural and organic products and has a spiritual appeal to it. The global market
will be a fertile ground for the brand. Patanjali can easily expand in regions where Yoga is practised more as
it also has the good will of Baba Ramdev.

Food Business –Food Industry has a high demand in the Indian market, Patanjali can open quick restaurants
that can offer food products which are natural and have organic ingredients. This can help the brand to
expand and generate higher revenues. With this Patanjali can establish a stronger brand image in the Indian
market.

Rural Expansion – In India rural areas cover quite a market and Patanjali is not running any operations in
that area, which is crucial for every company. The company must focus on expanding rurally and choose
rural regions as their new target audience as it would be easier for them to expand because rural customers
will prefe
 Patanjali’s Threats

Controversies – Patanjali has seen a fair amount of controversies. Promotion of “Putrajeevak Beej” is one
of the most recent controversies. This product promised the birth of a male child to the families that
purchased it. The severe opposition of this product resulted in Government inquiry. Many social activists
and politicians recommended that this product should be banned from the market. This controversy spoiled
the brand image and also affected its revenue on a large scale.

Negative publicity – A major crisis was faced by the brand when the Nepal Department of Drugs
Administration issued a public notice to the company stating that ‘they had found some of its medical
products to be “substandard quality”’The products which were used to detect mold, bacteria and other toxins
failed their microbial tests.

Increase in Competition – Patanjali has tough competition between big companies like Marco, HUL,
Dabur. Patanjali competitions are also increasing as there are new competitions in the market like Sri
Ayurveda

Poor Harvest – The farming basically depends on weather conditions and the monsoon season to grow
crops and ingredients. Climate changes can affect the production of crops and damage them.SO, if the
country ever faces a natural disaster or bad climate Patanjali should already have a back up plan ready. This
can prevent them from being endangered.
Products of Patanjali Ayurved: The company manufactures more than 45 types of cosmetic products and 30
types of food products consisting of 900 products.The main category of products which are produced by the
Patanjali ayurved are Personal care, food and FMCG . For curing many diseases like from common cold to
acute paralysis it has also manufactured around 300 types of medicines. According to patanjali all products
manufactured by it are prepared from natural ingredients. The total sales of patanjali in FY15, food and
cosmetics contributed INR8bn each, while healthcare p-60billion in FY16. It is valued at 30 billion (US$470
million) and some predict revenues of 5,000 crore (US$780 million) for the fiscal 2015-16. Patanjali
declared its annual turnover of the year 2016-17 to be estimated at 10,216 crore (US$1.6 billion). Patanjali
Ayurved sells through nearly 4,700 retail outlets as of May 2016.

Strategy of patanjali

1. Patanjali’s Targeted Marketing Strategy

Every product runs with a targeted marketing strategy that later acts as the major reason behind a product’s
success. Brands like Baidyanath made quality products that attracted consumers but could never find a
successful targeted marketing strategy to expand. Patanjali with its brilliant marketing strategy yet high-
quality products was able to expand while generating amazing demand from its successful marketing
strategy. As a result, it earned a profit of more than INR 9000 crores in 2019, whereas Baidyanath’s turnover
is only INR 700 crore in the same year.
2. Face Value
The face value is the value at which the company is valued in the beginning (by price). Ramdev Baba is well
known for his yoga and ayurvedic knowledge for years adding a lot to the success of Patanjali’s marketing
strategy. His face in various advertisement campaigns created trust amongst the customers and consumers
which acted as a vital reason for it to be a success in the market.
This is the core pillar of Patanjali’s success strategy. With a brilliant marketing campaign and branding
strategy, they surpassed well-established companies like Dabur and Baidyanath.
Now let us take a look at Patanjali’s digital marketing and advertising strategy.

Digital Marketing Strategy of Patanjali

Patanjali brand has a very holistic approach to its digital marketing efforts. The brand has several digital
campaigns that revolve around showcasing its products and presenting how healthy and natural the products
are for the consumers. With its amazing effort’s it has reached a massive following on many social media
platforms like Instagram.
Patanjali’s approach is two threaded. It has such a massive array of products that all its posts revolve around
showcasing these natural products. Their posts try to showcase the natural health benefits and ways to use
these products in ordinary cooking days. With such a massive customer following, Patanjali has focused a lot
of its marketing efforts on converting youngsters to appreciate and consume it’s products.
Patanjali uses Baba Ramdev as its brand ambassador on their posts, very frequently. They have successfully
merged their healthy products with the brand image of the yoga guru,who is known for curing the country of
daily ailments through a healthy lifestyle.They have made sure this image sticks and the customers are
heavily swayed by this strategy with digital marketing efforts .

Patanjali Advertisement and Campaign Strategy

A marketing campaign and advertisement means how a brand uses different online platforms and types of
media to promote their products to their target audience and market. The specific segment of promotion they
create constitutes their advertisement strategy. These have to be carefully planned as marketing campaigns
play a huge role in any brand’s success or failure.
Patanjali Ayurved has done great research on their target audience and understands the message they should
put across through their advertisements and which campaign medium is most effective for their strategy.
#Swadeshi ka swabhiman
Patanjali has now entered into the brand apparel segment with its new brand named “Paridhan, after
achieving great success in the FMCG sector. Patanjali has made a move on to the textile industry, invoking
the national image of cloth weaving.
With the rising concerns of dependence on other countries for necessities like clothing, and combining itself
with the “Make in India'' trend, Patanjali has targeted the most essential items we all need, clothing.

# Healthy India banaenge, Patanjali biscuit khaenge

Patanjali has launched its FMCG product - biscuit with the tagline “Healthy India banenge, Patanjali biscuit
khaenge” which means “India shall be healthy, Patanjali biscuits is what we shall eat”. Patanjali ayurved
claims that their biscuits contain zero maida, sugar, and trans fats, and are healthier than any other biscuits in
the market. By taking a moment marketing spin at the growing obesity problem in the 21st century and
sugary food overload, Patanjali marketed itself as a healthier option for biscuits for their consumers. This
struck a nerve with the Indian audience, especially with the 35-year-old+ customer segment, who daily enjoy
a biscuit with their teas as a lifestyle habit.
 Chapter No. 2: RESEARCH METHODOLOGY

Research Methodology: Research is a process of steps used to collect information and analyse that
information to increase our understanding of an issue or topic . Research is a systematic investigation into
the topic and study of materials and data in order to establish facts and reach new conclusions.

Research may be very broadly defined as systematic gathering of data and information and its analysis for
advancement of knowledge in any subject. Research attempts to find answer intellectual and practical
questions through application of systematic methods. Webster’s Collegiate Dictionary defines research as
"studious inquiry or examination; esp: investigation or experimentation aimed at the discovery and
interpretation of facts, revision of accepted theories or laws in the light of new facts, or practical application
of such new or revised theories or laws". Some people consider research as a movement, a movement from
the known to the unknown. It is actually a voyage of discovery. We all possess the vital instinct of
inquisitiveness for, when the unknown confronts us, we wonder and our inquisitiveness makes us probe and
attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge and
the method, which man employs for obtaining the knowledge of whatever the unknown, can be termed as
research. Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford Woody research comprises defining and redefining problems, formulating hypothesis
or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching
conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating
hypothesis. D. Steiner and M. Stephenson in the Encyclopedia of Social Sciences define research as “the
manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify
knowledge, whether that knowledge aids in construction of theory or in the practice of an art.” Research is,
thus, an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit
of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge
through objective and systematic method of finding solution to a problem is research. The systematic
approach concerning generalization and the formulation of a theory is also research. As such the term
‘research’ refers to the systematic method consisting of enunciating the problem, formulating a hypothesis,
collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of
solutions(s) towards the concerned problem or in certain generalizations for some theoretical formulation
Objective of Study :-1.To knows Market Research & Satisfying Demands of patanjali

Patanjali has an applaudable Market research team that works endlessly towards providing customers with
the products they need. Patanjali has been known to keep customer needs above all & launch products
catering the same. Now, what makes them stand out against their competitors is that they understand their
customers better.

Baba Ramdev & his team interact with their audience on a large scale, using various media, including his
yoga sessions, health care services, dispensaries & executives working to serve this purpose. These
interactions helps them understand what their customers need & then cater products that could serve those
needs.

Good examples of this have been products like their Bottle gourd Juice & Aloe vera juice, that are not
essentially a medicine, but rather daily wellness products that the customers can rely on to lead a healthy life.
Now, the reason we mention this here is that it is products like these, that had helped Patanjali takeover the
FMCG sector completely. The reason for this being that their rivals were not ready to give them enough
competition, owing to the requirement they created & the lower prices at which they offered their products.

2. Market Segmentation & Management

A big reason for Patanjali being so popular among the masses is that through their marketing approaches
they have also targeted all sections of the society & people of all ages. They broke the common
misconception of “Ayurvedic is for Elderly” & made it cool enough to be adopted by the young & the old all
the same. From their Gooseberry candies, chocolates, noodles & other similar products, they have been
trying hard to become a favourite among the kids & the generation Z. Not just that but the cosmetic & body
care products too are quite effective & thus loved by young adults.

The price & packaging of the products has also been done keeping in mind the needs of all sections of
society. Where even though they have daily use products at cheaper rates so that even people from lower
classes can afford them, they also have products that target the higher economic classes of the society.

Now to cater to this increased need in society, they also need to manage the Supply chain systems, which
they do very well, owing to their 10000+ outlets throughout the nation. Moreover, now their products are
also available at the non-Patanjali retail stores, helping them manage the demand-supply chain easily
3.To know marketing Strategies of Patanjali

● Patanjali Ayurved Ltd has in their key face Swami Ramdev- a famous personality. This is a bg hit for
the company
● Promoting the concept of "Swadeshi", giving emphasis on India's self-independence.
● Promoting an Indian product made with indigenous ingredients and following the culture of ancient
and traditional India.
● Promoting organic nature of the product- a must product for all health conscious people.
● Prices of the product has been kept very low in comparison to the products of its kinds.
● Covering a wide range of products of daily needs.
● Huge expenditure on advertisements.
● Advertisements are done technically to promote its organic nature, a product of perfect match with
India's culture and tradition, and of course the concept of Swadeshi

4.To know growth and revenue of the company

Indigenous fast-moving consumer goods (FMCG) major Patanjali Ayurved has reported 22 per cent growth
in its net profit for 2019-20 (FY20).

According to the financial data accessed by business intelligence platform Tofler, the group's flagship entity
reported Rs 423 crore net profit for the year, compared to Rs 349 crore it had posted in 2018-19 (FY19).

Patanjali Ayurved, that rakes in over 80 per cent of Patanjali Group's total revenue, said in its annual filings
with the Registrar of Companies that its operating revenue grew 6 per cent to Rs 9,023 crore in FY20.

5.To know How Patanjali challenged The FMCG Protocol

Now the days Indian market is witnessing a tussle between FMCG brand to be on top of the game, especially
in becoming the "desi-est brand", which Has been occupied by Yoga Guru turned industrialist Baba
Ramdev's Patanjali Ayurved Ltd.
Since the international players started venturing into the market of India, they had only focused on
eliminating the traditional and age-old methods and introducing modern techniques.

Patanjali made the "deshi" segment alive when other FMCG brand was still selling the chemically loaded
herbal products.

Slowly other companies too started to look into space they had avoided looking in all these years, which is
why other FMCG products to have started venturing their products in "desi" space.

Research Objective: 1. To study the factors influencing the success and popularity of the Patanjali products
and services. 2. To study the satisfaction and loyalty of customers regarding consuming a Patanjali products
and services.

Research Hypothesis: Hypothesis1: It is expected that with the increasing popularity of Baba Ramdev and
Patanjali product, a considerable number of customers start using Patanjali products and as a consequence,
become satisfied and developing loyalty with the product. H1:Customers are loyal to Patanjali brand
Hypothesis2: It is expected that the success of Patanjali is due to factors like reasonable price, packaging,
quality of product, proximity of store, availability of product and Baba Ramdev as Brand Ambassador of the
product. H2: Purchasing of Patanjali products mainly because of the Swadeshi brand, quality of products,
less complaints and Baba Ramdev as a face of brand. Hypothesis3: It is expected that consumers of Patanjali
products are not only satisfied but delighted by the product performance. H3:Customers of Patanjali Brand
are delighted.
 Patanjali challenge is a growth opportunity

FMCG major must leverage consumer trust in its brand, with products that appeal to every segment

The case deals with FMCG major HUL’s efforts to relaunch its ayurveda-based personal care brand Ayush.
HUL has had a highly successful history in the industry, with revenues touching ₹34,000 crore in 2016-17.

As the case facts indicate, Baba Ramdev launched the Patanjali range of ayurveda based products in the
Indian market in 2006, ostensibly taking advantage of the fact that HUL had lowered its guard vis-à-vis the
competition at the time. By a stroke of luck, Patanjali was able to create a space for itself relying on the
swadeshi plank. A dose of anti-multinational rhetoric helped to an extent. Ramdev was able to convey new
meaning and benefits of naturally available ingredients and connected it with his brand of Yoga. In a just 10
years Patanjali reached a reported turnover of ₹10,000 crore and plans to touch ₹50,000 crore by 2020.

Patanjali’s success was not taken lightly by its rivals. While companies such as Colgate, Marico, Godrej and
even L’Oreal were affected, HUL felt the pinch more as its personal care portfolio contributes two-thirds of
its net profits. Despite a headstart with its Ayush range in 2002, it was not able to capitalise as the market
was yet to connect to the naturals platform. It was only after Baba Ramdev began propagating yoga and the
benefits of ayurveda that these concepts started resonating with consumers. They saw a credible alternative
emerging from a home-grown brand.

The challenge from Patanjali was recognised by HUL when it launched 20 new personal care products in
December 2016 at highly competitive price points ₹30-130) aimed primarily at the mass market. It shed the
premium tag usually associated with most multinationals in India. Its intent was clear — reclaim the initial
lost ground and reinforce its position in the naturals segment.

Inherent advantages

The challenge HUL faces is clear — take on Patanjali, create a dominant position in the segment and regain
customer confidence in its Ayush range. HUL must strategise for this. In the past it took on the likes of
Nirma and bounced back strongly. HUL can plan a multi-pronged approach to neutralise Patanjali’s
dominance while creating a unique position for itself.

HUL has inherent advantages — the strength of eight million channel members, undiluted consumer trust in
its product quality, time-tested brand and products that appeal to almost every customer segment, efficient
manufacturing facilities, robust quality control processes, successful new product development and, above
all, a transnational mindset that helps understand consumer aspirations better than others. Before HUL can
respond to the challenge of Patanjali it needs to understand its weaknesses.

Understanding Patanjali’s weak areas : Patanjali has spread itself too thin too early by launching products in
every conceivable area of personal care and foods, with little sharp focus. Such a move could misfire in
terms of product quality and reliability. Patanjali has grown on virtually no market base at all. It also faces
distribution challenges. Other than Baba Ramdev, the products have no credible endorsers. This is a good
opportunity for HUL to strengthen its Ayush range. Given below are some strategies it can consider.

Strategies for HUL

Identify specific segments : HUL must be careful in choosing the right segments. The Beginners and Actives
(segments suggested in a PWC report) seem attractive options. Their numbers are a significant proportion
(approximately 200 million) in the age category of 25 + and willing to experiment. They are well-connected
and respond positively to well-designed digital initiatives. The hectic lifestyles of this customer segment
provides a golden opportunity to communicate the positive effects of wellness products.

Focus on Brand Ayush : Although it has done well to separate the Ayush division, HUL cannot ignore its
regular range. It may compete for the same shelf space in many retail outlets. This can create competition
within the organisation. To overcome this HUL needs to look at specialised and unique stores — something
Himalaya did successfully more than a decade ago.

A distinct marketing mix is needed to deliver the push the brand deserves.

Reinvented marketing
Product : Concentrate on packaging, demonstrate superiority of product quality. Active use of brand
communities, discussion forums on the web and social media sites can add to the buzz. HUL has the
marketing prowess for such engagement. Encourage product sample trials at stores, especially during
weekends

Pricing : The launch of products between ₹30-130 seems to be a move to take on Patanjali. However, HUL
should price its Ayush products marginally higher than others (at least by 20 per cent) to convey a perception
of superior quality. Of course, this needs to be backed by other marketing mix elements

Channe l : Begin by adopting a focused retail strategy of product placement in modern trade retail outlets,
buy out prime space. Educate retailers to push the Ayush range. HUL can consider moving Ayush through e-
commerce channels such as Amazon, where active customer engagement is possible in the form of expert
product reviews.

Promotions

The success of Ayush will, to a large extent, depend on how it reaches the consumer — the last-mile
connect.

1. Reach out to target audience through FM radio, digital media, brand communities, mobile messaging.
Create targeted messages with a credible narrative.

2. Create a specialised sales force and a focused customer research organisation within HUL (decentralised
teams in each key market) this would help get real-time secondary sales feedback. Customer surveys can be
conducted more frequently in the initial phase. Use analytics to understand the customer better.

3. Personalised selling: the premium range of Ayush can be placed in specialised stores such as Health and
Glow, where trained product specialists can explain and demonstrate the benefits of Ayush; pursue tie-ups
with unisex salons and parlours.

4. Create associations with the target audience through college fests and sponsorships (like Coke Studio).

5. Use of celebrity endorsements can be minimised. This can be replaced with real consumer testimonials
appearing on channels such as YouTube and Facebook that might encourage formation of brand
communities through formal sponsorships. Create brand spokespersons from identifiable public personalities
(for instance, Dove’s campaign for real beauty) and not celebrities.

Summary and conclusion

There is no doubt that, in the short term, Patanjali has created some disruption. One must, however,
appreciate that it has not come at the expense of existing players in the market as the category was virtually
non-existent. Patanjali helped expand this nascent category. Established players such as HUL, Marico,
Godrej and Colgate can help expand this pie further in their own unique ways rather than treat Patanjali as a
rival. In fact, some of the inherent weaknesses of Patanjali can help them create credible alternatives.

Given its deep understanding of the Indian market, HUL should take up the challenge and treat this as an
opportunity for growth.
Challenges

● Maintaining quality and brand promise – The key to buying any Patanjali product is quality and
purity (possibly, that’s why its cow milk ghee’s sales forms ~50% of its revenues). This stands as a
core brand promise. Consumers associate Patanjali with these attributes. Without a consistent
adherence to quality standards across all its product categories, Patanjali cannot shake the
boardrooms of FMCG giants. Quality becomes even more important as the company starts relying on
contract manufacturers for newer and “inconsistent” product categories. You just can’t open an
apparel and shoes manufacturing plant overnight, if you are running a food and medicine plant!
● An ever expanding product portfolio with brand extensions – Few brands, such as Virgin Group,
have done a tremendous job at brand extensions, though with failures in many categories.
Considering Patanjali has forayed into categories (such as shoes, apparels, home cleaning solutions,
etc.) that are not directly linked with ayurveda or purity or goodness, ensuring their loyal consumers
do not get confused with what it wants to do with the brand and how far it wants to stretch, could be
a challenge in the longer run.
● Absence of a key sub-branded range under Patanjali “Umbrella” - Further, most of its products
are branded under “Patanjali” umbrella and are then linked with generic names such as Patanjali Atta
Noodles, Patanjali ghee, Patanjali Cornflakes. Their communication largely focuses around the name
“Patanjali” and not around any sub-brand. This could affect sales of their key categories, if
inconsistent product categories do not perform well. It can also confuse consumers if Patanjali want
to increase “product depth” and launch variants with minute differences. Parle, a biscuit and snacks
company, first nurtured its hide and seek range to a “brand” and then launched newer “related”
biscuit categories within Parle’s Hide and Seek range. Patanjali can do something on similar lines.
● Image driven branding – Consumers don't just buy products to suit their needs, instead they buy a
solution that offers them value with “trust”. “Patanjali” is largely co-branded/co-promoted with Baba
Ramdev and his companion Acharya Balkrishna. Any questions arising on their integrity will surely
affect the brand’s performance.
 4 ps of Patanjali

Pull Marketing with Umbrella Branding

PAL used a unique mix of marketing capabilities. It adopted non-conventional ways of launching
products into the market.

Product

PAL followed three philosophies when it introduced any product in the market. These included Swadeshi
(manufactured in India) products, Ayurvedic products (Herbal) (no chemicals, preservatives, etc.) and
products with value proposition around wellness and nutrition. This approach was entirely different as
compared to competitive brands. PAL leveraged this philosophy to win the trust of customers. Baba
Ramdev highlighting the all-Swadeshi philosophy mentioned:

Unlike big business groups, my advertising work is handled by Vermillion, an Indian advertising
agency. (Ohri, 2016a)

In all its advertisements, PAL consistently highlighted its herbal (non-chemical) content. PAL claimed
that the company’s products were superior in terms of wellness aspects compared to all other similar
products available in the market from competing brands.

Packaging

PAL had invested in modernizing the processes of quality control and packaging. The product packaging
had a barcode and a hologram similar to the products of its close competitors. However, it ensured that
the packages looked simple. It went well with their core philosophy of simplicity. Looking at the growth
of PAL and its related packaging requirements, the top packaging companies like Manjushree
Technopack had set up a packaging plant in Haridwar, the base location of PAL (Chatterjee, 2016).

Pricing

PAL claimed that its sole objective was to make quality products and make them available to the masses
at a reasonable price. Most of the products barring Ghee and hair oil were priced 10–30 per cent cheaper
than the closest competitor product. However, in certain categories due to increase in raw material cost
and a need for higher margin, PAL increased the prices. The price of a 100 g tube toothpaste has gone up
from ₹28 to ₹40, similarly for anti-dandruff shampoo prices had gone up from ₹85 to ₹95. Nonetheless,
products were still cheaper as compared to close competitors even after this increase (see Table 3). The
price differential itself acted as a strong reason to attract additional consumers, especially from the lower
income group to opt for its products, thereby increasing sales.
Promotion

FMCG companies formulated different branding strategies for different demographic regions. PAL
followed mass marketing approach. It sold all its products under one umbrella brand of ‘Patanjali’. Every
product, whether a shampoo or an incense stick, carried the same brand. Traditionally, umbrella (single)
brand was not preferred by organizations as target customers were spread across various demographics,
and branding issues (if any) in one product line would have affected other product lines. Many
companies, therefore, considered umbrella branding a risky proposition.

The company invested a substantial portion of profit for charitable causes (Zarabi, 2015). PAL had
opened ‘University of Patanjali’ with a motto to reduce illiteracy and poverty in the country. PAL relied
heavily on word of mouth. Baba Ramdev demonstrated products to a large audience during his Yoga
sessions. Any coverage to Baba Ramdev or Acharya Balkrishna in the media added to the promotion of
‘Patanjali’ as a brand in the minds of the current and prospective customers. This model had worked well
for PAL as has been reflected in sales revenue growth over the years (see Figure 1).

PAL usually advertised multiple brands in a single advertisement (see Figure 3 and Figure 4). This was in
contrast to the FMCG industry trend where the company product advertisement focussed on a single
product only. PAL advertisement had captions like ‘Don’t risk the lives of your loved ones and innocent
kids by compromising on purity. Adopt 100 per cent pure and 100 per cent world class quality Patanjali
products only’. (The Times of India, 2017)
The tagline of each PAL advertisement was ‘PATANJALI—Prakriti ka Aashirwad (Blessing of Nature)’.
In 2016, PAL displayed 1.14 million advertisements, out of which 84 per cent of the slots were shown
during news hour. Traditionally, FMCG companies advertised in entertainment and movie category,
hence it was a different promotion strategy by PAL. SK Tijarawala, the PAL spokesperson, mentioned:

We don’t advertise; we run informative campaigns. We work on three basic principles set by Swami ji
(Ramdev)—world class quality, lowest price, and that all profits are to be given away to charity. Even
in our campaigns, we do not spend money on celebrities. Swamiji talks to consumers directly. Our
entire advertising and marketing spend is around a mere ₹300 crore (₹3 billion). (Laghate, 2017)

Since mid-2017, PAL has initiated digital marketing campaign using search channels like Google and
display advertisements with Facebook.
Place

PAL started its operation by selling products through its franchise stores. Still, a large part of revenue
came from its exclusive distribution network, which includes Swadeshi Kendra (non-medicinal stores),
Patanjali Arogya Kendra (health and wellness centre) and Patanjali Chikitsalaya (clinic with Ayurvedic
medical practitioner). These retail outlets sold PAL products, medicines and allied products. The doctors
at Patanjali Chikitsalaya did not charge any consultation fee from the patients visiting them. However,
the herbal medicines prescribed by them were exclusively available at PAL retail outlet attached with
Patanjali Chikitsalaya. The doctors received a monthly salary of ₹20,000–₹40,000 from the respective
retail franchise owner where a particular Patanjali Chikitsalaya was located.

The company had ramped up its distribution network. It had 15,000 exclusive outlets, out of which 5,000
were franchisee owned.1 The company planned to reach out to 0.01 million retail outlets in coming years
(India Franchise Blog, n.a.). PAL’s marketing and distribution network further strengthened after a tie-up
with Indian retail giant Future Group. This tie-up would lead to the sale of PAL products in 243 cities in
India with an initial additional revenue of approximately ₹800 million per month (Mitra, 2015).

PAL was implementing technological solutions like systems, applications products (SAP) and other
enterprise resource planning (ERP) solutions to streamline supply chain management and customer facing
issues besides enhancing employee productivity. It had implemented digital payment system at all its
stores for all payments of more than ₹50 (approximately US$1) (Ohri, 2016b). PAL was about to launch
its official mobile app for facilitating customers to locate the nearest Patanjali retail outlet, finding
Patanjali Chikitsalaya and ordering Patanjali products online. These initiatives aimed at the seamless
interaction between PAL and its current and prospective customers.

Consumers associated PAL with Baba Ramdev, whom a large majority considered as a trusted leader,
spiritual guru and a preacher of healthy lifestyle. Building on this perception, the TV, newspaper and
digital advertisements given by PAL consistently highlighted superior quality, healthy and adulteration-
free herbal products. The herbal positioning with lower prices (15% to 30% below the competitors)
(Pinto, 2016) than competitor brands resonated well with the customers. It has helped PAL to position
itself as a reliable and trusted herbal brand in the minds of customers. The perceived value of its products
had also helped to attract repeat customers, which made a big portion of its sales.
 Chapter 3:-Literature Review
A literature review is an overview of the previously published works on a specific topic. The term can refer
to a full scholarly paper or a section of a scholarly work such as a book, or an article. Either way, a literature
review is supposed to provide the researcher/author and the audiences with a general image of the existing
knowledge on the topic under question.

A good literature review can ensure that a proper research question has been asked and a proper

theoretical framework and/or research methodology have been chosen. To be precise, a literature.

review serves to situate the current study within the body of the relevant literature and to provide

context for the reader. In such case, the review usually precedes the methodology and results

sections of the work.

Producing literature review is often a part of graduate and post-graduate student work, including in the
preparation of a thesis, dissertation, or a journal article. Literature reviews are also common in a research
proposal or prospectus (the document that is approved before a student formally begins a dissertation or
thesis).

A literature review can be a type of review article. In this sense, literature review is a scholarly

paper that presents the current knowledge including substantive findings as well as theoretical and
methodological contributions to a particular topic. Literature reviews are secondary sources. and do not
report new or original experimental work. Most often associated with academic oriented literature, such
reviews are found in academic journals and are not to be confused with book reviews, which may also
appear in the same publication. Literature reviews are a basis for research in nearly every academic field.

As world well known that Indian civilization is one of the oldest civilization from ancient time the priest and
saints had much medical, health and political reached more than present time, Though Ayurveda which
means life-knowledge, has the genesis in the Indian subcontinent, the Indians have been molded to take to
the English medicines over the years for their assured faster relief. The origins of Ayurveda are also found in
the Atharvaveda which contains 114 hymns and incantations described as magical cures for disease. The
Indian Ayurvedic medicine market is not as popular as the allopathic medicine market for various reasons.
This article intends to throw light on the performance, perceptions, and judgments about an Ayurvedic
medicine brand ‘Patanjali’ – a creation of Baba Ram Dev, who is a dynamic character in the media also for
his periodic sensational statements about the current happenings in the nation, which hit the headlines quite
often Dr. A. P. Pednekar (2015).through his organization ‘Patanjali Ayurveda ’ shows how through yoga
practice we can transform ourselves, control master over the mind and emotions, and overcome obstacles our
evolution, yoga is more than Asanas(postures),A.S.Rao(2007). K.Vinod, J.Ankit, R. Zillur, J. Akhil (2014)
Man’s culture and believes can affect their buying behavior, it proved by him through performing yoga
throughout the world, during his Yoga sessions he trying to aware the world’s consumer about negative
effects of chemicals used by the FMCG companies, in this way he succeeded in creating a positive image
through spirituality and using to sell his products in the market. The people of the country or locality are
always keen towards the natural or Ayurvedic products, in these medicines or other Ayurvedic products are
giving a tough competition to the FMCG products market for consumer satisfaction.FMCG firms attracts the
consumer by advertisement to gain maximum profit, for this purpose firms hire many actors and actresses,
but on other side Baba Ram Dev promote his products on his own, in this way he came out as the role model
and promoter of Patanjali Ayurveda, in this Patanjali’s advertisements are seen on most of the TV channels,
the main aim behind the promotion is ‘Swadeshi’ (made in India) and to provide pure products to the
consumers and also sustain a brand in the Indian as well as international market. S. Deepika and S. Ambu
(2017) Today’s consumer wants to know what they can use for their life or what composition of the
products, this curiosity of the consumer exploited by the Baba Ram Dev, has to maintain and sustain the
quality of own products along with its fastest-growing volumes in the Indian market. Today’s consumer are
more health conscious and are maintaining a good quality life, and their preference to consume such
products which give them a good state of their health as well as provide maximum satisfaction, the consumer
familiarity discipline leads in providing ‘best total solution’ an affirmation that the company helps its
consumers recognize their accurate problem and the best solution, ultimately taking charge of implementing
it, Baba through his product offerings addresses all three value disciplines offering a unique blend of
Ayurveda and Vedic philosophy to provide value for his customers(R. Priyanka, 2016).. Consumers are
demanding more herbal and organic products across different categories of personal and home care, Patanjali
Ayurveda Ltd. is one of the new entrants in the Ayurvedic and herbal FMCG sector but has already created
waves across the country, giving tough competition to the established multinational corporations, product
quality, brand image, and trust are the most important factors influencing consumers' decision making in
selecting Patanjali products, Association of the name of Baba Ram Dev is also influencing the sales of
Patanjali. However, results revealed the average satisfaction of Patanjali products (K.Deepa and C. Mona,
2017).G.Neha and G. Vishal (2016) A firm must study the pattern and scenario of competition in the market,
so they can compare various marketing strategies of various companies selling their brands of herbal and
Ayurvedic products, it’s very essential that consumers must recognize the importance of Ayurvedic and
herbal products in the market so they can develop a positive attitude and have familiarity and favorability
towards products sold by the Patanjali. D.Subhankar (2017) Baba Ram Dev's brand seems well configured
and ready for take-off. It seems to have all the magic ingredients of success. The brand has moved into e-
commerce besides being available with retail chains and under its own distribution centers. The Ram Dev
Medicines brand is ready for export with foreign exchange earning potential and could be a great success if
marketed successfully given the weakness that the West has for both Yoga and Herbal alternatives. The
brand pyramid has legs. Products are available online and through offline retail. And finally, it’s not only his
companies that are digital. Baba Ram Dev is himself digital. He has 541k followers on Twitter. Big MNC
CEO's are going to find it difficult to match this kind of popularity in the near future. On Facebook, Baba
Ram Dev has 5.7 million people liking his page. (Even Facebook could get only 11 million consumers to
vote for Free Basics!) And with the development of ‘Make in India’ movement in full swing Patanjali will
certainly go to another level due to its ‘Swadeshi’ movement. Baba Ram Dev's sutras in the business world
may well have a twist that the MNCs and large Indian firms may find hard to emulate & explain.

Rationale of Study

As we know, now India became the world’s most populous country, India’s 65% of the population still
belongs to agriculture and their source of income still limited. There are so many health problems faced by
them, the allopathic treatment is still away from them, besides this the government is trying to provide free
treatments. Due to the poor financial conditions and lack of medical facilities in the rural areas the mortality
rate in children and women has been increased.As a result, the overall life expectancy of the Indians has
been decreased.

Mr. Ramachandra: My personal experience about the products from Patanjali carry a stamp of ‘Healthy
Offering and Quality Assurance’! I think I am not biased in favour of an Indian MNC. The biscuits, the
juices, the soaps, shampoos etc., are of the same quality if not superior to the products of other MNCs. Like
it or not Patanjali has dared to dream big and has made a good ground by achieving it as well.

Ms. Rajalakshmi: Glad to see another Indian company challenging videshi MNCs. I agree with you on that
point.

Mr. Param: Agreed, no doubt, however, in the context of the Maggi controversy containing lead beyond
permissible limits and the bread controversy which involved major brands containing cancer causing agents,
raises the question of the motives behind the released data because these controversies surfaced after
Patanjali entered the markets and whether this exposure is really for the safety of the citizens or could there
be any ulterior motive given the fact that this multi-billion dollar brand enjoys a huge patronage of the
Central Government. Good or Bad - time will tell.
Mr. Ramachandra: The criticism is fair but how Patanjali responds to it remains to be seen?

Ms. Rajalakshmi: But what is ‘ayurvedic’ about noodles, cornflakes and biscuits, coming off the assembly
lines of a factory which imitate large MNC brands with just ‘whole wheat’ as the health proposition? Or
about detergents and floor-cleaners set up in direct competition with MNC brands? And do the claims of
‘anti-bacterial neem and lemon’ go beyond added fragrance? It is these mixed signals and confusion that is
worrying. Also, the logistics doesn’t seem to be in place.

Mr. Param: Y.es, not to forget the fact that FSSAI has not yet certified most of the Patanjali brand of
products. I would rather suggest stringent background checks on the third-party suppliers as well because the
authenticity of any product including those belonging to the personal care category needs to be assessed on
many traits and especially the ayurvedic products need to adhere to the government regulations.

Ms. Rajalakshmi: The intention appears to be noble but he seems to be in a hurry by releasing so many
products all at once, it should not leave him huffing and puffing midway. Personally, I am not sure whether
to believe in the brand which has reached its pinnacle in a very short period of time or the other way round.
It seems like soon he will be going public with listing in the NSE.

Mr. Ramachandra: As it is a home venture, I feel we should all be proud about, I wish him all success in the
days to come and hope to hear more about the brand Patanjali’s success in the future.
 Chapter No.4 Data Analysis, Interpretation and Presentation

INTRODUCTION

To complete this study properly, it is necessary to analyse the data collected in order to test the hypothesis
and answer the research questions. As already indicated in the preceding chapter, data is interpreted in a
descriptive form. This chapter comprises the analysis, presentation and interpretation of the findings
resulting from this study this chapter analyzed the data collected from the field and presented in such a way
that would easily be understood by readers. Analytic tables and charts have been used to question the data
collected and out of that trends have been established, patterns have been discovered and meanings have
been given to the data collected. This has made it possible for the research questions of the study to be
answered.

What is Data Analysis?

Data analysis is defined as a process of cleaning, transforming, and modelling data to discover useful
information for business decision-making. The purpose of Data Analysis is to extract useful information
from data and taking the decision based upon the data analysis.

A simple example of Data analysis is whenever we take any decision in our day-to-day life is by thinking
about what happened last time or what will happen by choosing that particular decision. This is nothing but
analyzing our past or future and making decisions based on it. For that, we gather memories of our past or
dreams of our future. So that is nothing but data analysis. Now same thing analyst does for business
purposes, is called Data Analysis
 Option Responses

Yes 92.2%

No 6.3%

Heard somewhere 1.5%

Interpretations:-

● 92.2% of the Respondents says Yes they know about Patanjali brand.

● 6.3% of the Respondents says No they Don’t know about Patanjali brand.

● 1.5% of the Respondents says they have Heard Somewhere about Patanjali brand.
 Options Responses

Friends 17.6%

Advertisement 70.6%

Newspaper 5.9%

Others 5.9%

Interpretations:-

● 17.6% of the Respondents says they came to know about Patanjali from their Friends.

● 70.6% of the Respondents says they came to know about Patanjali from Advertisement.

● 5.9% of the Respondents says they came to know about Patanjali from Newspaper.

● 5.9% of the Respondents says they came to know about Patanjali from Others Somewhere.
 Options Responses

Yes 51%

No 37.3%

Thinking to Use 11.8%

Interpretations:-

● 51% of the Respondents says that they use Patanjali brand product.

● 37.3% of the Respondents says that they Don’t use Patanjali brand product.

● 11.8% of the Respondents says that they are thinking to use Patanjali brand product.
 Options Responses

Daily 27.5%

Alternate 7.8%

Once a week 21.6%

Interpretations:-

● 27.5% of the Respondents says that they use Patanjali brand product Daily.

● 7.8% of the Respondents say that they use Patanjali brand products Alternate days.

● 21.6% of the Respondents says that they use Patanjali brand products Once in a week.
 Options Responses

Agree 66.7%

Disagree 7.8%

Maybe 25.5%

Interpretations:-

● 66.7% of the Respondents says that they Agree that Patanjali Offers a large variety of products.

● 7.8% of the Respondents say that they Disagree that Patanjali Offers a large variety of products.

● 25.5% of the Respondents say Maybe Patanjali Offers a large variety of products.
 Options Responses

Yes 21.6%

No 23.5%

Maybe 54.9%

Interpretations:-

● 21.6% of the Respondents say Patanjali Product are of High Quality.

● 23.5% of the Respondents say Patanjali Product Don't have High Quality.

● 54.9% of the Respondents say Patanjali Product Maybe have High Quality.
 Options Responses

Strongly Disagree 5.9%

Disagree 17.6%

Agree 66.7%

Strongly agree 9.8%

Interpretations:-

● 5.9% of the Respondents strongly disagree that Patanjali Product have natural ingredients in it.

● 17.6% of the Respondents disagree that Patanjali Product have natural ingredients in it.

● 66.7% of the Respondents agree that Patanjali Product have natural ingredients in it.

● 9.8% of the Respondents Strongly agree that Patanjali Product have natural ingredients in it.
 Options Responses

Strongly Disagree 13.7%

Disagree 15.7%

Agree 64.7%

Strongly Agree 5.9%

Interpretations:-

● 13.7% of the Respondents Strongly Disagree that Patanjali products are chemical-free.

● 15.7% of the Respondents Disagree that Patanjali products are chemical-free.

● 64.7% of the Respondents Agree that Patanjali products are chemical-free.

● 5.9% of the Respondents Strongly Agree that Patanjali products are chemical-free.
 Options Responses

Agree 43.1%

Neutral 41.2%

Disagree 2.0%

Maybe 13.7%

Interpretations:-

● 43.1% of the Respondents Agree that Patanjali products have made a good brand image.

● 41.2% of the Respondents thinks Neutral that Patanjali products have made a good brand image.

● 2.0% of the Respondents Disagree that Patanjali products have made a good brand image.

● 13.7% of the Respondents thinks Maybe Patanjali products have made a good brand image.
 Options Responses

1 Star 9.8%

2 Star 7.8%

3 Star 35.3%

4 Star 21.6%

5 Star 25.5%

Interpretations:-

● 9.8% of the Respondents has given 1 Star to Patanjali brand

● 7.8% of the Respondents has given 2 Star to Patanjali brand

● 35.3% of the Respondents has given 3 Star to Patanjali brand

● 21.6% of the Respondents has given 4 Star to Patanjali brand

● 25.5% of the Respondents has given 5 Star to Patanjali brand

 Options Responses

Yes 27.5%

No 17.6%

Maybe 54.9%

Interpretations:-

● 27.5% of the Respondents thinks “yes” Patanjali helps to make your day to day life healthy

● 17.6% of the Respondents thinks “No” Patanjali helps to make your day to day life healthy

● 54.9% of the Respondents thinks “Maybe” Patanjali helps to make your day to day life healthy
 Options Responses

Because of quality 25.5%

Ayurvedic 56.9%

Quantity 13.7%

Because of price 17.6%

Interpretations:-

● 25.5% of the Respondents says that they use Patanjali Product Because of Quality.

● 56.9% of the Respondents says that they use Patanjali Product Because of its Ayurvedic

● 13.7% of the Respondents says that they use Patanjali Product Because of Quantity.

● 17.6% of the Respondents says that they use Patanjali Product Because of its price.
 Options Responses

Yes 43.1%

No 21.6%

Maybe 43.1%

Interpretations:-

● 43.1% of the Respondents thinks that patanjali Will excel in global market.

● 21.6% of the Respondents thinks that patanjali Can’t excel in global market.

● 43.1% of the Respondents thinks that patanjali Can excel in global market.
 Options Responses

Food Product 23.5%

Personal Care 43.1%

Patanjali Ayurved 29.4%

Home Care 35.3%

Interpretations:-

● 23.5% of the Respondents Prefer Food Product Of Patanjali brand

● 43.1% of the Respondents Prefer Personal Care Product Of Patanjali brand

● 29.4% of the Respondents Prefer Patanjali Ayurved Product Of Patanjali brand

● 35.3% of the Respondents Prefer Home Care product Of Patanjali brand

 Options Responses

Agree 54.9%

Disagree 11.8%

Neutral 33.3%

Interpretations:-

● 54.9% of the Respondents Agree that the prices of the Patanjali products are fair.

● 11.8% of the Respondents Disgree that the prices of the Patanjali products are fair.

● 33.3% of the Respondents Think Netural about prices of the Patanjali products are fair.
 Options Responses

Yes 13.7%

No 60.8%

Maybe 25.5%

Interpretations:-

● 13.7% of the Respondents says that they have faced problem while using the product.

● 60.8% of the Respondents says that they haven't faced any problem while using the product.

● 25.5% of the Respondents says that they May have faced any problem while using the product
 Options Responses

Yes 35.3%

No 27.5%

Neutral 37.3%

Interpretations:-

● 35.3% of the Respondents says that they are satisfied with the patanjali product.

● 27.5% of the Respondents says that they are not satisfied with the patanjali product.

● 37.3% of the Respondents says that they are Neutrally satisfied with the patanjali product.
 Options Responses

Yes 29.4%

No 25.5%

Maybe 45.1%

Interpretations:-

● 29.4% of the Respondents says “Yes” they’ll recommend patanjali product to their closeone’s.

● 25.5% of the Respondents says “No” they’ll not recommend patanjali product to their closeone’s.

● 45.1% of the Respondents says they May recommend patanjali product to their closeone’s.
 Options Responses

Yes 68.6%

No 15.7%

Maybe 15.7%

Interpretations:-

● 68.6% of the Respondents says “Yes” Patanjali brand is mostly driven by Baba Ramdev

● 15.7% of the Respondents says “No” Patanjali brand is’t mostly driven by Baba Ramdev

● 15.7% of the Respondents says “Maybe” Patanjali brand is mostly driven by Baba Ramdev
 Options Responses

Yes 25.5%

No 29.4%

Maybe 45.1%

Interpretations:-

● 25.5% of the Respondents says “yes” they think in future patanjali can make a world chemical free
and make it healthy.

● 29.4% of the Respondents says “No” they Don't think that in the future patanjali can make a world
chemical free and make it healthy.

● 45.1% of the Respondents says “Maybe” they think in future patanjali can make a world chemical
free and make it healthy
 Chapter No.5 Conclusion & Suggestions
The Indians, be it a retailer or a consumer, are especially sensitive to any change in the markets, and their
outlook is generally based on their judgments and opinions which are significantly aligned toward the value
proposition the brand offers. In a diverse and competitive landscape like India, increased market share in a
growing market is an ideal scenario for any company in any sector and the growth volumes of PAL are
laudable as it shares the competition in the market with the top-branded players.

Brand Patanjali constituted a viable and potent threat to all the lead players in the FMCG sector making its
presence felt across categories. This was one brand which had a solution to every problem. Baba Ramdev
developed a business model which was highly disruptive and by all means more imperative in an
increasingly volatile world of FMCG. Disruption plays with time and competition, which at times is quick
and complete, but otherwise slow and incomplete, but in the case of Patanjali, the disruption happened at a
speed which put the fate of the legacy brands like HUL, Dabur, Himalaya, and so on to name a few beyond
imagination.

This market disruptor brand “Patanjali” has gone on to become a runaway success because it is sold with a
concoction of attributes like faith and reliability and with a price structure justifiable with the retailers’
margins and consumers’ needs. The beyond imagination outcomes of the brand and its success in the
decades-old and highly mature FMCG sector may be attributed to brand association and brand availability of
Patanjali coupled with Baba Ramdev’s aggressive brand campaigns with a tinge of patriotism and smart
convincing brand strategies that Patanjali is all but natural and herbal catering to every Indian’s health needs
and wants. Can we attribute this lethal combination of Patanjali and “Baba Ramdev” to the Lollapalooza
Effect?

The Lollapalooza Effect is a concept where multiple psychological biases act together to produce a
compounded effect on a huge scale. This was devised by an American billionaire investor Charlie Munger,
who is also a partner of investor Warren Buffett.

An interview-based informal survey was conducted for the retailers and consumers of Patanjali brand of
products. It predominantly indicated that the retailers were satisfied with stocking the products of Patanjali,
despite the fact that the margins were not at all a match when compared to other leading brands of FMCG
because sales volume was very high. However, they were slightly skeptical about the distribution strategies
adopted by PAL as the stocks were almost sold out in the first week of the month, but the replacement of the
stocks is not done on time and they feel would hurt their sales as well as the brand image. They also feel that
if necessary steps are not taken, the rate of customer defection to other Ayurveda brands may be high and
this in the process would have an adverse effect on PAL and its brands.

From the perspective of the consumers, they were satisfied with the product portfolio of Patanjali as they
could associate them with affordability and with something which is natural or herbal, paving way for brand
trust, assuring an encouraging scenario that would see Indian consumers turning on a new leaf of consuming
anything that is Indian. The agility with which the first-time buyers became repeat purchasers and ultimately
loyal to the brand was noteworthy, indicating that the brand has to be proactive in the market and always
have to keep on updating as per the consumers’ needs.

Table

Table 1. Chronological Framework of the Brand Patanjali

Table 2. Product Profile of Patanjali Ayurveda Limited

It is a matter of time to decide whether these revolutionary strategies of PAL will help Patanjali to sustain
itself in the market or would the leading brands in the FMCG sector prove their success with vengeance by
either defensive or offensive strategies to fortify their positions in the market against this young player which
would again depend on the consumer acceptance of new product launches, which would ensure that the
consumer is spoilt for choices and the competition existing in the markets. Patanjali has been pursuing
aggressive strategies to acquire a huge market share amidst a number of big FMCG players.

The biggest challenge that may be forthcoming for the brand which is currently in a commanding position in
the FMCG market would be that it should not fall prey to “Icarus Paradox” (Youth Ki Awaaz, 2016).
Patanjali’s aggressive strategies which have apparently signified success should not spell disaster. Has the
“satvic” brand endorser and the kingpin of this huge Indian conglomerate given a thought on this? Is it time
for him to re-strategize and focus on products that will foretell the brand’s sustainability?
 Suggestions

To make a successful product, Patanjali marketing strategy should attract long term

consumers. Most of the Patanjali consumer are facing problem like: products are not available in the market
regularly.

They must focus back on product efficacy. Rising above the noise of advertising.

So Patanjali Ayurveda should increase their productivity and make sure that there will be

shortage of products in the market.

> Customer redressal forum is very much needed in the current business scenario. But it is found that there is
no such forum established in Patanjali concern.

> Regular survey must be made to measure the customer satisfaction.

> The brand image of the Patanjali product has to increase.

Natural product has to get approval from medical authorities to support before using

herbal product in Patanjali the customer has consult with the doctor.

Consumer feel that they need more awareness about the products in Patanjali
 Refrences

Way in Herbomineral Drug Research, retrieved from http://patanjaliayurved.blogspot.in/ Athira A,

(2016, March 25), A retail shocker from Haridwar: the Patanjali story, retrieved from
http://yourstory.com/2016/03/patanjali-story/

Deepak (2015, September 7) Baba Ramdev, Patanjali and the art of content marketing, retrieved from
http://withstartups.com/baba-ramdev-patanjali-art-content-marketing/ Gupta Indrajit (2016, February 19),
The secret behind Patanjali's success, retrieved from http://www.rediff.com/business/report/pix-column-
the-secret-behind-patanjalis-success/20160219.htm Vangipuram D (2016, January 25), No business
plan. No marketing. Meet India’s new FMCG giant retrieved from http://deskstory.com/no-business-
plan-no-marketing-meet-indias-new-fmcg-giant-patanjali/ Marketing Management – Patanjali Ayurved
limited, (2016, April) retrieved from http://documents.tips/documents/patanjali-570d238c4ad82.html
Tyagi N, (2016, May 24), Baba Ramdev's Patanjali far behind Dabur and Zandu in reach,
economictimes.com, retrieved from
http://economictimes.indiatimes.com/industry/cons-products/fmcg/baba-ramdevs-patanjali-far-behind-dabur-
and-zandu-in-reach/articleshow/52408768.cms Consultants (2016, January 17), PATANJALI
AYURVEDA: Commercializing Business In Non Commercial Way. How they did it?, retrieved from
http://patanjali-ayurveda-howtheydidit.blogspot.in/ Office Chai Team (2015, August 10), 11 Lessons
Startup Entrepreneurs Can Learn From Baba Ramdev’s Success Story, retrieved from
http://officechai.com/stories/baba-ramdev-as-entrepreneur-success-story/# Bhatt S (2016, May 18), Could
distribution be Patanjali’s Achilles heel?, economictimes.com, retrieved from
http://economictimes.indiatimes.com/magazines/brand-equity/could-distribution-be-patanjalis-achilles-heel/
articleshow/52306425.cms Ramdev (n.d.) in Wikipedia retrieved June 8, 2016 Patanjali Ayurved (n.d.) in
Wikipedia retrieved June 8, 2016 Singh R (2015, June 14), How Baba Ramdev has built a Rs 2,000 crore
ayurvedic FMCG empire & plans to take on multinational giants, economictimes.com, retrieved from
http://economictimes.indiatimes.com/industry/cons-products/fmcg/how-baba-ramdev-has-built-a-rs-2000-
crore-ayurvedic-fmcg-empire-plans-to-take-on-multinational-giants/articleshow/47657636.cms Anand U &
Ghosh A (2015, November 21), ‘No licence for noodles’: FSSAI slaps showcause on Patanjali,
indianexpress.com, retrieved from http://indianexpress.com/article/india/india-news-india/no-licence-for-
noodles-fssai-slaps-showcause-on-patanjali/ FE Online (2015, December 8), Bugs found in yoga guru Baba
Ramdev’s ‘Patanjali’ noodles sealed packet in Jind retrieved from
http://www.financialexpress.com/article/industry/companies/baba-ramdevs-patanjali-atta-noodles-in-trouble-
again-bugs-found-inside-sealed-packet-in-haryana/175458/ Ananthanarayanan R (2016, June 17),
Patanjali: Mountain or molehill? Retrieved from
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Questionnaire

1. Do you know Patanjali brand? *

Yes

No

Heard somewhere

2. How do you come know about Patanjali? *

Friends

Advertisement

Newspaper

Others

3. Do you use patanjali brand product? *

Yes

No

Thinking to use

4. How frequently do you use patanjali brand product? *

Daily

Alternate days

Once a week

Never used

5. Do you agree Patanjali offers a large variety of products? *

Agree
 Disagree

Maybe

6. Do you think patanjali product are high quality? *

Yes

No

Maybe

7. Do you agree that Patanjali products have natural ingredients? *

Strongly disagree

Disagree

Agree

Strongly agree

8. Do you agree that Patanjali products are chemical-free? *

Strongly disagree

Disagree

Agree

Strongly agree

9. Do you agree that Patanjali products have made a good brand image? *

Agree

Neutral

Disagree

Maybe

10. Give rating to Patanjali brand? *

3
 4

11. Do you think patanjali helps to make your day to day life healthy? *

Yes

No

Maybe

12. Please indicate the reason why you prefer patanjali product? *

Because of quality

Ayurveic

Quantity

Because of price

Never prefer

13. Do you think patanjali can excel in global market? *

Yes

No

Maybe

14. Which product you prefer of patanjali brand? *

Food Product

Personal care

Patanjali ayurved

Home Care

15. Do you agree the prices of the Patanjali products are fair? *

Agree

Disagree

Neutral
16. Have you faced any problem while using the product? *

Yes

No

Maybe

17. Do you agree that you are satisfied with the patanjali product? *

Yes

No

Neutral

18. Would you recommend patanjali to your closeone’s? *

Yes

No

Maybe

19. Do you think that patanjali brand is mostly driven by Baba Ramdev? *

Yes

No

Maybe

20. Do you think in future patanjali can make a world chemical free and make it healthy? *

Yes

No

Maybe