Chhavi Project Patanjali
Chhavi Project Patanjali
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CERTIFICATE
DATED:
I wish him/ her all the best for his/her bright future ahead.
Principal
GLBIM
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DECLARATION
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ACKNOWLEDGEMENT
I take this opportunity to express my sincere thanks and deep gratitude to all those
people who extended their whole hearted cooperation and have helped me in
completing this project successfully.
(181117105016)
(2018-2021)
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TABLE OF CONTENT
2 INTRODUCTION 7-8
8 SUGGESTIONS 63-67
9 CONCLUSION LIMITATIONS 68
10 LIMITATIONS 69
11 APPENDIX 70-72
12 BIBLIOGRAPHY 73
13 APPENDICES 73-76
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EXECUTIVE SUMMARY
The project title "Consumer preference, Perception and Brand loyalty of
Patanjali Brand" deals mainly with the consumer behaviour.
Patanjali, founded in 2007 by Baba Ramdev and his aide Swami Acharya
Balakrishan has grown into a 5000 crore company in 2015. It has disrupted the
entire FMCG market with its unconventional growth story. The credit goes to Baba
Ramdev who has very meticulously decided the timeline for each action and
delivered unprecedented success. Patanjali’s vision is to provide
herbal/ayurvedic/natural solutions to all the problems and in this pursuit it is also
elevating the livelihoods of local farmers. It has leveraged the emotional route by
bringing in the ‘Swadeshi’ angle to market its products. The drivers for Patanjali
purchase are lower price points which induce sampling and when they find no
noticeable difference with the pricey brands, they tend to stick to Patanjali. The
key differentiators for Patanjali are its herbal or ayurvedic offerings and the free
consultation it provides to the customers at Arogya Kendras/ Chikitsalayas through
its certified Ayurvedic doctors. Besides it has also increased its distribution
channels through franchise stores, retail chains and kirana stores. However the
supply is not proportional to demand and a lot of customers are not able to find the
desired products. To solve this, they have invested in food parks and have
outsourced manufacturing to other SMEs while conducting stringent checks to
ensure consistent quality.The strategy followed by Patanjali is unconventional in
that they have not made any significant investment in marketing and promotion
and have relied on word of mouth publicity. Baba Ramdev has done minimal
promotion by endorsing the brand in his yoga sessions televised on national
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channels. The FMCG giants cannot rely on such a strategy because they cannot sell
the products at such low prices or provide free doctor consultations and other
activities on a continuous basis. Thus it is not feasible for other companies to
follow this model.
The FMCG industry has a lot of big players with dominant market leaders in each
category. Patanjali is in direct rivalry with most of them and with time has been
able to take away market share from the best-selling brands. In retaliation, the
market leaders are bringing out newer herbal products at lower price points or
putting into action other strategies. However Patanjali has the advantage of being
the forerunner and have gained sufficient traction that it will be difficult to displace
them. The entrance of Patanjali has not just marked its increased share of the pie
but it has also managed to increase the size of the pie itself.
CHAPTER 1: INTRODUCTION
Given a much broader array of product choices offered in the current market and
ubiquitous marketing efforts, consumers often turn to a favorite brand to facilitate
their purchase decisions. A brand includes a name, symbol, design, or experience
that help consumers identify products, services, or differentiate offerings among
competitors (Aaker, 1991; Keller, 2008; Neumeier, 2006). Brand identity, which is
a group of associations developed by firms, communicates with consumers what a
brand provides (Aaker, 2007; Keller, 2008).Academic literature clearly addressed
the importance of building a strong emotional relationship between consumers and
brands (Carroll & Ahuvia, 2006; Keller, 2001, 2008; Taylor, Cluch, & Godwin,
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2004). According to Keller‘s (2001) more recent conceptual framework,
consumers‘ positive brand feelings lead to favorable responses towards a brand,
such as attitudinal attachment and behavioral loyalty. Similarly, recent literature on
branding has argued that an emotional brand experience is important to foster
brand loyalty and purchase intentions (Albert, Merunka, & Valette-Florence, 2008;
Carroll & Ahuvia, 2006; Chaudhuri & Holbrook, 2001; Esch et al., 2006; Nowak,
Thach, & Olsen, 2006; Pawle & Cooper, 2006; Taylor, Celuch, & Goodwin, 2004;
Thomson, MacInnis, & Park, 2005). Moreover, brand consulting and advertising
industry literature (Gobé, 2001; Lindstrom, 2005; Neumeier, 2006; Riesenbeck &
Perrey, 2007; Roberts, 2004, 2006) has illustrated the importance of building deep
emotional connections with consumers to augment brand loyalty.
OBJECTIVES OF STUDY
This Project work has certain objectives behind it. Without any proper objective
one cannot plan its implementation. If the objective of the study is not proper then
the whole research is of no use. In India there are many sectors where the different
companies or Frganization functions within, we have chosen the Patanjali,
ayurvedic and herbal sector which directly deals with people issues.
Basically our main objective was to see that the bend of the Indian people towards
Patanjali is because of it being a swadeshi brand, herbal and ayurvedic brand or
some of the other factors.
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To study Patanjali as a brand and its product mix.
DEFINITIONS OF
TERMS
The following definitions are the major terms investigated in the present study.
1.2.1. BRAND IMAGE: Akaah, (1988) conclude that consumers are more likely
to purchase well-known brand products with positive brand image as a way to
lower purchase risks. This argument is also supported by Rao and Monroe, (1988)
that a brand with a more positive image does have the effect of lowering
consumers’ product perception risks and increasing positive feedback from
consumers. Therefore, consumers generally believe they can make a satisfying
purchase by choosing well-known brands and also lower any purchase risks by
doing so. How much is a brand worth? How does a brand represent the product?
Keller, (1993) defines a brand image as an association or perception consumers
make based on their memory toward a product. Thus, brand image does not exist in
the technology, features or the actual product itself, but is something brought out
by promotions, advertisements, or users.
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Thakor et al. (1997) said that through brand image, consumers are able to
recognize a product, evaluate the quality, lower purchase risks, and obtain certain
experience and satisfaction out of product differentiation. When it comes to
experiential product evaluation, a positive brand image may make up for an
inferior image of the origin country and raise the possibility of the product being
selected. According to Grewal et al. (1998) the better a brand image is, the more
recognition consumers give to its product quality. Consumers are usually limited in
regards to the amount of time and product knowledge to make an informed
purchase decision when facing similar products to choose from. As a result, brand
image is often used as an extrinsic cue to make a purchase decision.
Kotler, (2000) contends that brand is a name, term, symbol, design or all the above,
and is used to distinguish one’s products and services from competitors. For
example, Nike adopts a check mark as its brand image, which creates a positive
effect indicating approval. According to Kotler, (2000) image is the way that
public perceives the company or its product. Image is affected by many factors
beyond the company’s control. The consumer develops a set of brand beliefs about
where each brand stands on each attribute. The set of or its product. Image is
affected by many factors beyond the company’s control. The consumer develops a
set of brand beliefs about where each brand stands on each attribute. The set of
beliefs about a brand make up brand image. The consumer’s brand image will vary
with his or her experiences as filtered by the effects of selective perception,
selective distortion and selective retention.
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brand and attribute size was taken into account. However, a positive relationship
was found between the number of attributes associated with the brand and future
purchase.
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Koshy, & Jha, 2014). Information processing model have four major steps or
stages. It starts with exposure followed by attention, interpretation and lastly
retention. The first three of these establish perception (Hawkins, Best, Coney, &
Mookerjee, 2007). All this takes place inside the mind or black box of the
consumers simultaneously, and it changes from person to person. Perception is
highly subjective and therefore easily distorted. Moreover, perception is the
meaning that an individual attributes to the incoming stimuli that gathered through
the five senses that are taste, smell, touch, hearing and
Sight. According to Kurtz and Boone, (2006) different people have different
perceptions of objects or events based on the interactions of two types of factors
that are stimulus factors and individual factors.
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CHAPTER – 2
RESEARCH
METHODOLOGY
A single cross-sectional research design was used for the survey and quantitative
analysis was used for the obtained dataset. The answering scale for the questions
related to brand image and brand loyalty is a 7-item Liker scale. Data collection
was done through the online website using an online-based questionnaire. MS
Excel was used for analysing the information in the obtained dataset. The types of
analysis that were performed are t-test analysis, ANOVA and Pearson Correlation.
By doing it, the main factors that influence brand loyalty were examined. Both
primary and secondary data were collected for research survey and the primary
instrument for data collection used in this study was a questionnaire. Primary
data was collected from 100 respondents from the city of Delhi. The sampling
method used in the study was random sampling. Data thus collected
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IMPORTANCE OF MARKETING RESEARCH
2. It indicates the present, future trend of Industry and point out how the company’s
affairs are being turned up.
OBJECTIVE OF STUDY
This Project work has certain objectives behind it. Without any proper objective
one cannot plan its implementation. If the objective of the study is not proper then
the whole research is of no use. In India there are many sectors where the different
companies or Organization functions within, we have chosen the Patanjali,
ayurvedic and herbal sector which directly deals with people issues.
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Basically our main objective was to see that the bend of the Indian people towards
Patanjali is because of it being a swadeshi brand, herbal and ayurvedic brand or
some of the other factors.
SCOPE:
The study is restricted to South Delhi only. Efforts have been to have
consumers surveyed in South Delhi.
DATA COLLECTION:
Data collection is most important part of research because the research is based
on it. There are several ways of collecting data which differs considerably in
terms of cost, time and other resources at the disposal of the researchers.
The data collection method for this research work is from primary source as well
as secondary. The survey is carried out through a non probability convenience
sampling in Delhi through a structured questionnaire.
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TYPE OF DATA
There are two types of Data:
1) Primary
2) Secondary
Primary Source: Source from where first hand information gathered directly
are called primary source and thus information collected is called Primary data.
Primary Data: - The techniques available for collecting primary data are:
Interview method
Observation method
Questionnaire method
Secondary Source: The source of information already gathered for some other
purpose are available is called secondary data, with regard to my study secondary
sources of my study where records of the company, magazines, internet and
papers.
The Secondary data was collected on the basis of requirement, conveniences and
reliability of the data.
Out of these I have chosen questionnaire method to collect the data because of low
cost, free from the bias of other interviewer and respondent.
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This method of data collection is quite popular particularly in case of big enquires,
private individuals, research workers, private and public organizations and even is
adopting it by governments. In this method I want to the retailers, personally and
asked them to fill the questionnaire.
SAMPLING PLAN :
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TECHNIQUES OF DATA COLLECTION:
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CHAPTER 3
COMPANY
PROFILE
PATANJALI YOGPEETH
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manufacturing ayurvedic medicine and treatment of patients with help of Yoga and
Pranayama. Baba Ramdev TV programmes and Yoga camps have proved to be
immensely popular. Swami Ramdev put lots of emphasis on teaching Pranayam as
compared to Yoga. According to Shri Shri Ravi Shankar, a world-renowed spritial
leader "If an individual can be credited with reviving Yoga in India, it is solely
Baba Ramdev". Millions of people all over the world attend Baba Ramdev's free
Yoga camps (shivir). Ramdev Baba has also conducted Yoga camp at Rashtrapati
Bhavan - the residence of the President of India.Yoga has ability to cure even fatal
diseases and Baba Ramdev has proved it many times. Ramdev Baba has spread
Yoga to such an extent that sooner or later, everyone has to embrace it. Patanjali
YogPeeth Trust is the dream project of Baba Ramdev. It was inaugurated on
August 6, 2006. Baba Ramdev's aim was to build the world's largest center of
Ayurveda,Yoga and Pranayama. Patanjali YogPeeth provides facility for treatment
for diseases, research and a teaching University for Yoga and Ayurveda. This trust
is located 13kms from Haridwar. The estimated cost of the project was 10 billion.
During inauguration, Sudarshan Agarwal, Governor of Uttrakhand, said "Patanjali
Yog Peeth will soon be the ambassador of Yoga for entire world”.
According to associated news press, The Patanjali YogPeeth project was divided
into 3 phases. Phase one was basic construction. The second stage comprises of
serviceable guesthouses, herbal gardens, yajnashala, meditation caves and many
other facilities. It will be the biggest Yoga and Ayurvedic center in the world.
Third stage is opening a University of Yoga and Ayurveda. Baba Ramdev wants to
flow river of Yoga in each and every region, whether in a village or city. The
confidence which Baba Ramdev exuberates compels people to at least give his
Yoga a try. Millions of people practice Baba Ramdev's Yoga and Pranayama.
Ramdev Baba's TV programs broadcast in several countries including America,
Europe, Australia, Asia and Africa. Viewership is quoted as being 20 millions
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regular viewers. Followers of Baba Ramdev have claimed relief from a variety of
ailments such as Diabetes, Blood Pressure, Hepatitis, Spondylitis and Obesity. He
is the real hero who devoted his whole life to help people by giving them unknown
knowledge of Yoga and Pranayama.
Patanjali Yogpeeth medicines are also available for health care, oral care, hair care
and skin care. Many of the critical ailments such as Cancer, Diabetes, arthritis etc.
can be cured by Swami Ramdev's Medicines. These medicines are low cost, very
effective and available at Ramdev Chikitsalaya. Some of very effective Ramdev
medicines are Mukta Vati for high blood pressure, Madhunashini Vati for Diabetes,
Medohar Vati for Obesity.
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Swami Ramdev's medicines are manufactured in branches well equipped with
modern equipments mostly in Haridwar and other places, certified by the
international standards GMP, GLP & ISO 9001. Swami Ramdev also has a
botanical garden near Patanjali Yog Peeth where the herbs and medicinal plants are
grown. Here research is carried out on rare herbs and they are grown here by
putting in great efforts. Under Swami Ramdev's guidance an industrial unit is also
established called Patanjali Ayurved Limited which produces pure and high quality
minerals and plants products through scientific methods. Swami Ramdevji and
Acharya Balkrishna ji have tried to combine the ancient knowledge with
ultramodern technology.
Some people could not digest the increasing fame of Swami Ramdev and they
started negative campaigning against Swami Ramdev with the help of media. The
qualities of Swami Ramdev’s medicines were doubted. When these medicines
were tested in the lab all the allegations proved baseless and Swami Ramdev came
out spotless amidst the acid test. This resulted in unexpected increase in the
demand of medicine of Swami Ramdev. Baba Ramdev's pharmacy puts in all the
efforts to make the medicines pure and rich in quality. All the medicines
manufactured go through strict quality control & quality assessment tests,
Toxicological study - Animal trials, clinical tests.
Swami Ramdev is working towards the goal of establishing the ayurvedic products
at par with the international standards and to make it known across the world. To
encourage the use of Ayurvedic medicine and amongst Swami Ramdev's
revolutionary thoughts, one is that the farmers of India should adopt the cultivation
of medicinal herbs and plants along with fruits and vegetables.Patanjali Yogpeeth
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is a renowned name in the field of medical science, rendering free services to
millions of people across the globe through Yoga and Ayurveda.
PLC controlled herbal extraction plant commissioned in the pharmacy is used for
extracting from the various parts of the medicinal plant like the leaves, The salient
feature of this plant is the production of medicine using latest SCADA technology
under controlled environmental conditions of temperature and pressure. The
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extract concentration is achieved under vacuum drying preserving the maximum
valued contents of the herbs.Quality of the medicines so produced is of the highest
level. This unit has the capacity of extracting from 10,000 kgs. of raw herbs. The
desired fluid component is added to this extract in the process of making the
medicines.For the manufacturing processes in Divya Pharmacy automatic high
speed spray drier unit, for quick liquification a fluid wed processor, tablet
compressing device with the capacity for preparing one lac tablet per hour, high
speed auto-coater for coating the tablets, high speed mixer-grinder, fluid wed driers
and cleaning, crossing & pulverizing units have been established.In the modern
packing section of Divya Pharmacy PLC controlled packing equipment having the
capacity of 300 volts per minute with automatic blister packing equipment has
been installed. A utility center has been set up in this production unit which has
two 500 KVA generators, softeners & cooling towers including boilers & air
compressors having the capacity to produce 300 ton steam.As a result of this Divya
Pharmacy has become the first medicine manufacturing unit of Uttarakhand to get
ISO-9001 and WHO-GMP certifications. In the Pharmacy the international
standards like Good Manufacturing Practices (GMP), Good Packaging Practices
(GPP), Good Agricultural Practices (GAP) and Good Harvesting Practices(GHP)
are being strictly followed.
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ensure to grow in Garden, a Divya Vanaushadhi Vatika has been earlier established
in the Ashram at Kankhal. Thereafter, to explore more possibilities of a large
number of wide collections, exposition and research of medicinal, aromatic and
Ornamental plants in a organized way in the Patanjali Herbal Garden has been
established. A team of Scientists from Botany and Agriculture and a number of
swayam sevak are engaged for research and management. It is all about
economically processing organic farm produce into daily use consumables ranging
from Ayurvedic health supplements to Foods and cosmetics and then supplying
them largely to the urban world. The produce will be picked up right from the
farms, thereby increasing the effective income of the farmers. The health based
products will then be made available to a large population in the urban areas that is
reeling under the scourge of polluted food items and artificial drinks that make
them vulnerable to a variety of cronic diseases. And all this at a cost that is
unmatched in the market.
The consequential benefits are no less crucial to the mankind. Backed by a robust
preaching and promotion on the popular Astha channel by the world renouned Yog
Guru Swami Ramdevji and an international authority on Ayurved and traditional
herbs Acharya Balkrishanji, it is all about reinventing our traditional knowledge of
Yog and Ayurved, rejuvenation of rural economy,arrest of the flight of rural job
seekers to the more demeaning urban slums, strengthening the health grid of the
nation and the world, mending the environmental imbalance…and finally fighting
the tirade of western culture on Indian panorama.
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ancient sages, the organic food products and herbal medicines churned out of
this unit, undertake to fight out the dreaded and incurable diseases like CANCER
and AIDS. Claim for having found a lasting cure for many other relatively more
rampant but equally tormenting diseases like Diabetes, Arthritis and Thyroid is
already established with thousands of patients cured with satisfaction.
Superior quality of our products at a fair price is not the only concern that we have.
Getting our patients rid of their diseases is again too limited a goal for us to seek.
A holistic approach to improvement in the quality of life of all beings, world over,
is the purpose behind our being. Getting rid the food we consume of the pollutants
in the form of poisonous pesticides and chemical fertilizers that our farmers use, is
a goal that we strive to achieve by providing our people the eatables that are
cultivated in organic and natural manures and pest repellents.
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is traditionally used to remove excess Pitta (Fire) from the stomach and small
intestine. This ayurvedic remedy alleviates acidity, Heartburn and Indigestion.
High Pitta (Fire) produces the problem of Acidity or Hyper Acidity. To reduce
High Pitta (Fire) in the abdomen, Avipattikar Churna is very good. For hyper
acidity and abdominal aches being a mild laxative it makes the stool soft, helps
to check mild constipation and improve the appetite.
These days most of the people are suffering from constipation. The failure to
excrete the feces from the intestine is termed as constipation. There are many
reasons for this disease, like shortage of fiber in diet, insufficient intake of fluid,
stress, wrong food habit, appetite, inadequate exercise, use of too much laxative,
enema abuse etc. Constipation can affect digestion, the clearing of toxins from the
system is hampered, energy levels and the absorption of nutrients will get altered.
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Divya Chandraprabha Vati for Urinary Disease
Divya Giloy Sat for Swine flu, Bird flu, Pyrexia of unknown origin (fever)
Divya Kayakalp Tail Oil for Skin Problems, Cracks and Burns
Divya Kesh Tail Hair Oil for Hair Loss, Dandruff and Headache
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Divya Pidantak Ras for Joint Pain and Arthritis
Divya Pidantak Tail Massage Oil for Joint Pain and Arthritis
Divya Triphala Guggulu for Joint Pain, Piles and Weight Loss
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PRODUCT MIX OF PATANJALI YOGPEETH
Swami Ramdev's Divya Medicines are 100% natural, made from potent herbs such
as the ashtavarga healing plants of the Himalayas. They have proven extremely
effective for combating all forms of sickness and disease. Along with these
medicines, Swamiji recommends patients to also adopt the practice of Pranayama,
which will strengthen the immune system and quicken the healing process.
Aloevera Gel
Amrit Rasayan - Divya(for Brain, Eyes, Strength and over all nourishment)
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Ashmarihar Ras - Divya
Amla / Awala Juice 1 Liter - Patanjali (Juice of Emblica Officinalis) / Divya Amalki
Rasayana 100 gm
Balm - Patanjali
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Beauty Cream 50 gm - Patanjali Tejus
Chatpata Choorna
Divya Dhara
Godanti Bhasm - Divya (for Migraine, Chronic Headache, Depression & Hernia)
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Gokshuradi Guggulu - Divya (for Chronic Renal Failure)
Gulab Jal - Divya
Kayakalp Vati - Divya (for Skin Disease, Acne and Pimples) 20 Grams
Kayakalp Vati - Divya (for Skin Disease, Acne and Pimples) 40 Grams
Kesh Tail - Divya (Hair Oil for Hair Loss, Dandruff and Headache)
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MahaYograja Guggulu - Divya (for Osteoporosis)
Medha Vati - Divya (for Memory Loss and Improving Intelligence) 40 grams
Pidantak Tail - Divya (Massage Oil for Joint Pain and Arthritis)
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Punarnavadi Mandur - Divya (for Kidney Problems and Anemia)
Sanjivani Vati - Divya (for Cold, Fever and Flu)
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Soap Ojas Aquafresh - Mogra Body Cleanser - Patanjali
Triphala Guggulu Divya (for Joint Pain, Piles and Weight Loss)
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Wheat Grass Powder Organic 1 Month Doses
From nowhere to everywhere, Brand Baba seems to be pervasive. Yoga has been
there in India since time immemorial, it has been synonymous with sadhus( saints)
who usually after relinquishing their mundane world in search of God or Nirvana
used to keep them healthy, fit, let them channelize their energy and control their
inner self toward a single goal. In marketing parlance we can think of it as a
product which was restricted to a very small segment of society, had some
exclusivity attached to it, expertise of saint in performing it and a luxury which
could only be afforded by the disciples of saints.Nobody could have thought of
commercializing it, leave aside the thought of popularizing it among the masses.
Entrepreneurs are not only risk bearers, organizers and managers of the enterprises
but they are also great visionaries who not only anticipate the future needs but also
keep a check on the present requirements. We are sure Baba must have worked
tirelessly on his mission away from the glare of media, completing all his defined
tasks, keeping a check on the preparations and one day he must have decided to
appear on the big stage and take the world by storm that seems to be a
meticulously planned launch of the “Brand Baba”.
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“Yoga Shivers”, listened to their problems & tried to solve them, connected with
them personally, had a product which was well researched, had variants of
products in terms of different Yoga Aasans for different ailments, meant for
different age groups of peoplebased on their ability to perform a particular aasan,
had all the medium of advertisement to support his Brand.
His journey didn’t stop with his Brand of Yoga, when big business houses were
struggling to launch and operate Branded Medical Stores, he was once again there
bang on launching his own Brand of Ayurvedic Medicine Stores ( Patanjali) all
over India…Franchising model also included. His name has become synonymous
with Yoga and Ayurveda. There might be other before he appeared on scene, there
are many in his era also but no one could make an impact like him. His presence
was so infectious that people from different walks of life were cashing on his
popularity….Filmstars like Shilpa Shetty and Bipasha Basu came with their own
version of Yoga CD’s but could not pose a challenge to his leadership, infact they
ended up following his footsteps…even the corporate world found a big market for
herbal products..the consumers were looking for products which were close to
nature. His USP is that he made himself approachable, common man identified
with him and he positioned his product as a “ Total Health Solution” unlike the
craze generated by the Filmstars to develop bulging biceps, curved body, zero
figure which could be defined as a fad bound to fade away without notice. His
product promise for a lifelong solution ( durability), can be used anywhere
anytime( operational convenience), available through different channels based on
your convenience( like T.V., Books, Shivers ), his product emphasizes on
precaution rather than cure….a feature which make his product standout from the
rest of crowd and even if any ailment need to be cured he has the natural therapies
and his own brand of ayurvedic medicine to compliment his main product. He has
made his brand ambassadors out of his own followers who very religiously vouch
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for his claims and motivate people who come in contact with them to practice
Yoga. He is in his unique way different from other gurus who only give spiritual
discourses. He is different in terms of the practicality and objectivity of his product
unlike the subjective nature of the discourses delivered by spiritual gurus. He run
his trust as a big corporate house generating employment, profit and his initiative
has not only pumped a new lease of life to ayurveda but has also indirectly helped
people to find out an employment as yoga instructors in schools, colleges and
corporate houses. He is ubiquitous, wherever you go you find his hoardings
announcing the date of his Shivers, he has not only reached to the interiors of the
places but he is also there in the mind of the people enjoying the share of his own,
which is a sign of a big brand. People, organizations, institutions involve in any
kind of traditional thing in India can take a lesson or two from Baba, that how
marketing can help in reviving the traditional form of things that too with a
handsome profit and one need not to be an American or someone from a developed
world to market a product and lay a claim on it. There has been lot of yoga gurus
and they are there today also who can challenge him in the art of yoga but there is
only one Baba Ramdev the Yoga Guru turned out to be a Great Marketing Guru.
And finally look what he is doing, he has taken the responsibility to bring back the
black money to the nation and eradicate the corruption from the country. It seem
that after achieving the leadership position in his form of business he want to
diversify to the business of politics. There is always a risk of diluting your brand if
you think of entering into a totally different field and Baba has taken that risk. His
Brand seems to be in crisis these days and there is a need of second thought to be
given to the diversification. I feel he should have thought of Co-Branding with
Anna, this could have made it easy for him to diversify into the business of
politics. It’s still not too late , he must think strategically on his move and rethink
of launching his brand of movement again with new energy and a new look.
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MARKETING AND NETWORK OF PATANJALI YOGPEETH
Human beings are governed by ideas and beliefs. Consumers of this day no longer
buy merchandise and services but experiences. Mass Customization is the new
paradigm that replaces old ideology of market segmentation; an idea which is no
longer found suitable for today's turbulent markets, changing customer needs and
growing product variety. Mass customization proactively manages product variety
in the environment of rapidly evolving markets, products and services. This study
attempts to study the reasons which have lead to the phenomenal success of Baba
Ramdev's marketing strategy of Mass customization and that also in an era of high
individual customization.
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Ramdev addresses all the three value disciplines and he has developed a unique
blend of Ayurveda and Vedic philosophy to cater to create value for his customers.
The society in which we live today is a brand- obsessed society. Name a product or
service and the brands relating to them are inestimable so many that cannot be
counted on fingers. Thus, creating, developing, implementing and maintaining
successful brands are frequently at the heart of marketing strategy. (McEnally,M .
and Chernatony,L. de 1999) Successful branding requires a strategic perspective
(de Chernatony 1998) whereby strong brand concepts are presented and
communicated to target segments resulting in favorable brand images which reflect
the brand's identity (Gardner and Levy 1955, Reynolds and Gutman 1984,
Kapferer 1997). This brand of Baba Ramdev has a universal appeal, is sharing and
collaborative, and the customers range hail from all age groups and regions. This
Brand is a result of consistent hard work and carefully and meticulously followed
strategy.
The service that Baba Ramdev is selling is the product. To deliver quality service,
it is essential to understand customers' expectations. To assess the quality of
service, customers compare their expectations with perceptions of the service
providers' performance. Hence it becomes vital for the service providers' to
understand and meet consumers' needs and wants. Customer expectations of
service can be of two types; desired service and adequate service. Desired service
is the service that a customer desires and expects to get. Whereas an adequate
service is one which is the minimal level of service which a customer is willing to
accept based on his perception of service acceptability.The service that is being
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provided by Baba Ramdev is well orchestrating with the desired service
expectations. Patanjali Yogpeeth, a multi-million rupee venture, Ramdev's dream
project, set as a rival to World Health Organization only on the basis of sound
service that it boasts of providing. Divya Yoga Mandir Trust in Haridwar,
Uttaranchal is armed with all the latest and most sophisticated gadgets sees a
regular stream of devotees who wait to be called by a doctor in the Out Patient
Department (OPD). There are forty doctors in the OPD who deal with 2,000 people
every day. Some days the dispensary sells medicines worth Rs. 3,000 a minute.
And again this can only be possible if the waiting tie is reduced by quality service.
The ambiance of Patanjali Yogpeeth is world class. Constructed in almost 100
acres; it has been designed to have buildings, car parks, and a landscape to rival the
best of Delhi's housing projects. The entire value proposition can be said to be a
hard work and the result of determination of this one man army. To add to this we
know that looking good is everyman's dream. In the era when cosmetic surgery is
the order of the day; getting good looks by just adjusting the way one inhales and
exhales is something everyone would prefer doing. With his deep-seated credence
that we all are a part of beauty conscious world, Swamiji's unique contribution has
been in helping ordinary people solve their problems and lead a healthy life
through the practice of simple breathing exercises. The product "pranayama" is
well suited for all irrespective of class, creed, culture and hence this success.
Swami Ramdev's Divya Medicines are claimed to be one hundred percent natural,
made from potent herbs available in the Himalayas and no or very little side
effects. They have proven extremely effective for combating all forms of sickness
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and disease. Along with these medicines, Swamiji recommends patients to also
adopt the practice of Pranayama, which will strengthen the immune system and
quicken the healing process. Ramdev Baba opines that Pranayama Yoga is the
complete Ancient Indian Therapy, which is a Medical Science in itself that cures
any Physical or Mental medical condition completely, without any side effects.
Swami Ramdev has proved and declared on Indian & International TV Channels,
"Pranayama Yoga is the complete natural cure for all Physical and Mental
Ailments". But if
medicines are required they are also available and these packages of medicines are
available at a very low cost. The medicines can cure all the diseases from a simple
cold to cancer. In a bid to promote Ayurveda, Ramdev's Trust has tied up with 600
qualified Ayurvedic practitioners who are offering treatment to masses for a
variety of diseases, some of them termed incurable by the modern system.
PRICING STRATEGY
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Well in tune with this, Baba Ramdev's potion of Pranayama is cheap.
He urges people not to lose hope or suffer and depend on expensive
treatments. Indian Pranayama Yoga is there to help treat all the ailments
completely without costly medicines, operations or surgery. It is
amazing, but it is claimed to be true that this is the cheapest and the only
complete cure to most of the so called incurable diseases like Diabetes,
Cancer, HIV & AIDS too.
PROMOTIONAL STRATEGY
Edwin L. Artzt quoting the chairman and CEO of P& G has likened
advertising to exercising saying that "Think of advertising and
promotion as exercise and recreation. Advertising is exercise. It's
something you need and it provides long-term benefits, but it's awfully
easy to either cut or postpone because there's no immediate penalty for
not exercising. When you want your brand to be fit, it's got to exercise
regularly." And here's a situation when exercising in itself becomes the
object of promotion.
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Becker (1977) and Becker and Murphy (1993) argue that advertising is
part of consumers' preferences in the same way as goods and that there
are complementarities between advertising and goods. Hence, a more-
advertised good is ceteris paribus preferred over a less-advertised good.
Whatever be the case, Baba Ramdev has hit both the opinions as he is
advertising and at the same time not advertising. Baba Ramdev's live
yoga classes became a passion.
And it all began in the year 2002 when Sanskar television channel
started airing Baba Ramdev's yogic classes; overnight, Baba Ramdev
became a sensation he had hundreds of followers who morphed into
thousands. Then Sanskar channel's rival Astha channel signed him. In
two years time he was a hit and with him also the channel benefited. His
TV shows have the largest TRP. Today, he is one of the biggest draws
on Indian television. He can be seen not only on religious channels like
Aastha, but also news and features channels like India TV and Sahara
One. Millions around the country follow his programmes religiously
and use ayurvedic medicines prescribed by him. There was an eight-
month waiting period before one could see Ramdev, he was being
booked that far ahead by television channels for his live yoga classes
each morning. His yoga sessions were beamed live into 170 countries
(Bijay Simha, 2007)
Also, Baba Ramdev's pack one DVD, two Video CDs written three
books on Yoga, Pranayama Herbal Remedies and Magazines are
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available. This set of four promotional material with a Research
Oriented Monthly Magazine of Yog, Spiritualism, Ayurveda, Culture
And Tradition-Yog Sandesh available in 5 languages can do much to
lure customers. Even healthy people are following his Yoga Pranayama
regimen, as available in his DVDs, VCDs, Books & magazines etc., to
keep fit.
It is a well established fact that; "brands set the product and the producer
of that product apart from the competition". There are special though
very obvious facts that this Brand has also mass customized itself to
satiate all and thus have made a distinct place for itself. In an era when
the marketers are faced with the challenge of getting their message
heard by consumers
who are hard to find and even harder to influence, this Brand has
worked wonders and all because of its all inclusive image.
SWOT ANALYSIS
Strength
Patanjali sources most of the raw materials from local farmers and thus can offer
products at lower prices. All the products have some ayurvedic touch to it. This
appeals to the masses. Besides there are no chemicals used for manufacture of the
products. Having Baba Ramdev as the brand ambassador leads to a transfer of
credibility from Ramdev to the brand itself. Thus it does not have to work hard to
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build trust among its customers. Finally Patanjali has a very good distribution
channel. It has 1200 Patanjali Chikitsalayas, 2500 Arogya Kendras, 7000 open
stores in villages and 5600 marketing vehicles8 apart from tie-ups with
hypermarkets like Big bazaar, Reliance retail, Hypercity, Star Bazaar(Tata), D-
mart, Spencer retail, More(ABG retail). It has also recently tied up with Apollo
pharmacy and thus had license to use its 22009 stores in India for distribution of its
products. Baba Ramdev has strong political affiliations which he can utilize to get
benefits from the government. He has already helped Patanjali secure loans at
lower interest rates and is also being offered subsidized land as food parks. These
are the strengths of Baba Ramdev but it is not sustainable if he deserts the
company.
Weaknesses
The sourcing of the raw materials is done from local farmers and is therefore
dependent on the produce of these farmers. Thus the supply is not steady and
therefore they are not able to cater to the demand of the customers. It does not have
any definite strategy on scaling and thus might leave a trail of unsatisfied
customers behind since it would not be able to cater to their demand. Secondly, the
positioning is done to attract people above age group of 35 years of age and it does
not appeal to younger generations. This can seriously impact growth of the
company after a certain point if it cannot reposition its appeal towards the younger
generations. Thirdly, the packaging is not good or up to the standard of the current
big players. This might impact adoption of the products. They have been trying to
manufacture products in a lot of categories but only a select few have been
successful. They should try to build those into bigger brands rather than investing
their resources in a lot of products so as to gain market share. They are not focused
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as of now. Despite having a wide distribution network, Patanjali does not sell their
products through kirana stores as extensively as other FMCG giants. This is crucial
as one of the insights regarding consumers’ purchase of FMCG products is that
they purchase them almost 90% of the time through kirana stores. Besides since
they price their products very low, therefore they are not able to give higher
margins to sellers which might lead to strained relations.
Threats
The differentiation that Patanjali has created is in terms of ayurvedic knowledge
and use of herbal and natural ingredients in the products. Secondly, Patanjali
products are generally available at lower price points compared to other branded
products. However, the competitors can easily make their foray into the herbal
space and they can spend big bucks on marketing their products as well. Besides
they have stronger distribution channels. Secondly the bigger companies can
always create newer brands to start a price war with Patanjali (e.g. Colgate created
Cibaca Vedshakti and is selling at lower price than Patanjali)10. This might drain
Patanjali’s resources in the long run compared to the bigger companies who can
burn more cash. Another strong point of Patanjali is the backward integration with
local farmers to source their products. However other FMCG companies are also
doing that to some extent. If they begin to extend their backward integration, then
it might create sourcing problems for Patanjali.
Opportunities
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The targeting can be changed to appeal to younger generations as it is yet to
capture that segment. For this they need to build a good brand which they can do
by working on advertising and packaging that appeals to broader segments. They
are trying to acquire more food parks in India so as to solve the problem of
sourcing. This will create stability in the availability of products and they can cater
to the increased demand. They can scale up even more through franchise model or
tie-ups with more supermarkets/hypermarket chains. Finally, it can price its
products a bit higher, especially the best-selling ones as people have become loyal
and are willing to pay a premium. This benefit can be passed on to the sellers in the
form of higher margins which would lead to better sales.
Targeting
Currently Patanjali is competing in all FMCG categories catering to the whole
population, which is otherwise called Total Market Coverage Targeting Strategy.
They have diversified into almost all categories like oral care, hair care, skin care,
groceries, health drinks & supplementary, packaged food etc. Also since they
have no differential products within the same product portfolio, this substantiates
the fact that they are not targeting any particular segment, rather serving the whole
population with their offering. To reach to the maximum number of potential
customers, it has to target specifically though. The house wives and the elderly of
the house are the influencers and decision makers in the purchase process of
Ayurveda products. By just producing packages with South Indian languages, the
south market can be targeted.
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They have expanded into all categories like oral care, hair care, healthy skin, basic
needs, health drinks and packaged beverages and so on. Additionally since they
have no differential items inside the same item portfolio, this substantiates the fact
that they are not focusing on a specific section, rather serving the entire populace
with their advertising. To reach to the greatest number of potential customers, it
needs to be more specific in its targeting though. The housewives and the elderly
of the house are the influencers and chiefs in the buy procedure of Ayurveda
items. By simply producing packaging with South Indian dialects, the market in
the south can be focused on.
Positioning
The positioning statement of Patanjali is derived to come to the following:“For the
mass Indian consumers, Patanjali Ayurveda offers the complete range of
unadulterated natural/herbal/ organic products which are a healthier alternative to
the other FMCG products at a significantly lower price.” Ramdev wants to
associate Patanjali holistically with Arogyam eco-system, which means disease-
free long life. This is actually tying up of yoga, pranayama and Ayurveda to create
such a possibility, something which Ramdev banks on.He also links the idea of
indigenous (Swadeshi) to the company’s products and does cause marketing for the
company by saying that they are helping the farmers to earn more. He projects
Patanjali as a not-for-profit company and that it is there to serve the masses.
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CHAPTER: 4
FINDING AND
ANALYSIS
LOYALTY INTENTIONS
Responses cy
deviation
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brand to other people
5 I have or would recommend this 100
brand to someone who seeks my
advice
6 I don’t bother looking at 100
alternative brands; this brand is
good enough for me
7 If this brand were to raise their 100
prices, I would continue to buy
their products
8 If this brand was NOT available, it 100
would make huge difference to me
# Question Total Mean Frequency Variance Standard
Responses deviation
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CONSUMER PERCEPTION
Response
s deviation
BRAND IMAGE
1. GENDER
deviation
1 Male 53 53%
2 Female 47 47%
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MARITAL
STATUS
2. AGE
deviation
1 below 18 3 3%
2 19 to 25 63 63%
3 26 to 35 19 19%
4 36 to 55 14 14%
5 55 and above 2 2%
Total 100 100%
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# Answer Response% VarianStandard
deviation
1 Married 27 27%
2 Widowed 0 0%
3 Divorced 0 0%
4 Separated 0 0%
5 Never 73 73%
married
100
Total 100 %
EDUCATION
4. LEVEL
# Answer Response%VarianceStandard
deviation
1 Primary 0 0%
Seconda ry
2 4 4%
Graduat e
4 Post 55 55%
5 37 37%
graduate
Doctorat e
6 4 4%
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100
Total 100 %
5. PROFESSION
deviation
on
1 Retired 0 0%
2 Civil 20 20%
servant
3 Private 9 15%
sector
4 Self 2 3%
employed
5 Student 61 61%
H1: Brand image will not be positively associated with brand loyalty.
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H2: Brand image will not be positively associated with consumer perceptio
H3: Consumer perception will not be positively associated with Brand loyalty.
H7: There will not be positive relationship between brand image, consumer
perception and loyalty intentions
Married 39 39%
Unmarried 61 61%
Married
39%
Unmarried
61%
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Awareness No. of Respondents %age of Respondents
No 0 0%
No
0
Yes
100
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Strongly Agree 29 29%
Agree 57 57%
Neutral 2 2%
Disagree 8 8%
Strongly Disagree 4 4%
Column1, Agree,
57
Column1,
Strongly agree, 29
Column1, Column1,
Disagree, 8 Strongly disagree, 4
Column1,
Neutral, 2
Column1, , 0
Interpretation: 57% of the customers believe that Patanjali offers good quality of
products whereas 4% of the customers are not satisfied with the quality of products
offered by Patanjali.
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Prices of the PATANJALI PRODUCT are fair
Agree 31 31%
Neutral 5 5%
Disagree 10 10%
Column1, Agree,
31
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Statement : PATANJALI PRODUCT have appealing
packaging
Agree 42 42%
Neutral 4 4%
Disagree 17 17%
Strongly Disagree 8 8%
Column1, Agree,
42
Column1,
Strongly agree, 29
Column1,
Disagree, 17 Column1,
Strongly disagree, 8
Column1, Neutral,
4
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Statement : PATANJALI PRODUCT have natural
ingredients
PATANJALI PRODUCT have natural ingredients
Agree 73 73%
Neutral 0 0%
Disagree 0 0%
Strongly Disagree 0 0%
Strongly
Agree 27
Agree
73
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Suggestion
Stock-out
With almost 600 products scattered in multiple FMCG categories, the product
portfolio of Patanjali is large and has become inconsistent, which is causing
confusion among customers and also shifting away from its core value
proposition. For example, the Products or biscuit category falls neither under
the Ayurveda bracket nor it is an Indian food or recipe, both of which were core
to Patanjali. Also just by flooding the market initially with the sheer volume of
their numerous products, now it is posing challenge to the company to maintain
demand-supply, to avoid stock-out of best-selling products & clearing the less
selling products.
The supply & distribution of Patanjali is inadequate & sporadic. Many a times,
there is more supply than required and at times, there is very low supply.
According to one source, the fill rates of Patanjali products are in the range of
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Outsourcing
Outsourcing & quality has always been a concern for Patanjali. Many of its
products like biscuits, corn flakes etc. are outsourced to other companies, only
the marketing & final product is rolled out under Patanjali brand. This has
raised questions over the Ayurveda offering of those products as well as the
quality. Instances have been found where insects, fungus were found in its
packaged products, products are stocked with a future manufacturing date etc.
All these is causing a trouble to the brand. Though Ramdev wants customers to
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With a high ambition of directly taking on the MNCs, of lately Patanjali has
started spending a bomb on their advertising & promotion. Only in the first two
quarters of the current fiscal year, it is estimated that Patanjali has spent around
Rs 360 crore, which is around 7% of FY2015 sales revenue of Rs 5000 crore,
while the operating margin was around 23%. Naturally, this will put pressure to
increase the price.
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Most of the package and promotion are in Hindi only, with few instances where
English is used alongside Hindi. While it is understandable that Patanjali
wanted to evoke a Swadeshi feeling and creating an issue among customers.
Many a times, a customer gets discouraged from purchasing a Patanjali product
since he does not understand Hindi script about what is written on the pack or
what is in the promotional poster. Overall, it hinders the adoption and diffusion
in South India particularly.
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Over-reliance on Ramdev
Since Ramdev is at the heart of the brand, any attack on the personality of the
individual is like a direct blow to the brand itself. Time and again, Ramdev did
come on the limelight for various reasons like using his influence and political
tie-ups to get cheap lands and other incentives. This creates an adverse effect on
the Patanjali brand itself.
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The project had scope for future research, which was beyond my resource
due to time constraint and work pressure.
Some were biased towards their brand, which might not be giving them good
service.
Sometimes even if the retailers were not using Patanjali but he used to say
that the brand he is using is Pepsi because of low awareness level of other
brands.
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Actual Growth %
25%
22%
Forecasted Growth %
20%
20%
17%
15% 13%
12% 12%
10%
10%
7%
5%
0%
Appendix 2: Sales and growth rate for personal care products in India
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Colgate-Palmolive Co 6.7
Patanjali Price
Product Size (g) price in Rs. Competing Brand Size (g) In Rs.
Toothpaste 200 75 Colgate 100 50
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Kesh Kanti Hair Oil 120 130 Himalaya Hair Oil 200 180
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BIBLIOGRAPHY
BOOKS REFERRED :
WEBSITE:
2. Indiainfoline.com.
3. Google.com.
NEWS PAPER:
MAGAZINES:
2. Business India.
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QUESTIONNAIRE
Do you know Patanjali?
(a) Yes (b) No
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Patanjali- High/Low
HUL -High/Low
P&G -High/Low
Others -High/Low
(c) Rarely
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Thanking You
Date: ( )
Signature
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