6362

ISSN: 2347-1697
International Journal of Informative & Futuristic Research (IJIFR)
Volume - 4, Issue -5, January 2017
Continuous 41st Edition, Page No: 6361-6382
Dr. Anuja Agarwal, Sakshi Gupta, Srashti Gupta, Vinayak
Nautiyal :: The Impact of Patanjali Products on the FMCG
Business Hither to Dominated by Multi-Nationals like Hul, P&G,
Nestle etc.
net sales worth Rs. 5000 crores this financial year ending in a few days, Patanjali has really
come a long way. Everything is working right for them. This type of growth is very
astonishing for an Indian company competing with foreign players like HUL, P&G and
Nestle. It has already crossed the sales of many established players. Baba Ramdev, price and
quality are the three most important factors working for them. With trade analysts
estimating that Patanjali will cross the Rs. 20,000 crores mark by 2020, it is definitely a
force to reckon with and take notice of before it’s too late. With strategic alliances with
many e commerce business and supermarkets like Big Bazaar and Reliance Fresh Direct, it
has increased its value chain. Patanjali has realized that to succeed they have to enhance
their distribution from the tradition Patanjali Arogya Kendra or Chikitsalyas. Patanjali has a
diverse product portfolio from having nutrition and supplements to grocery, from home care
to personal care and health care. It has just entered into the health juice products trying to
compete with Real and Tropicana. Cow ghee is its most famous product. With expansion
plans in Maharashtra, Patanjali wants to step up its production so that it can meet the
growing demand of products and avoid shortage. It is also thinking of setting up a food plant
somewhere in south of India. With low advertising spends, Patanjali has still been able to
carve a name for itself. But in recent months it has amplified its advertisements. The price of
Patanjali products are around 20% lower than that of their competitors and it is a huge
reason why it is gaining popularity besides eating into the market share. On the quality front
also it is excellent as it leverages its image of being ayurvedic and swadeshi factor. The
recommendations of Patanjali are working very good for the brand itself as people are
recommending it to their friends and family members. It seems that there is more
acceptability of the brand amongst older people than younger people but it won’t take time
for that to change. With demand so great that people at Marine Lines pull up the shutter
after 7 pm to get the products even after the shop is closed for the day for counting cash, it
can be seen that it has carved a place for itself amongst the consumers. It is the next Indian
Body Shop.
1.1 Background of Study
The traditional uses of herbal products have a substantial historical and cultural importance.
Although modern chemical based products exist side by side and have also gained
popularity with the emerging era. Spiritual organizations are launching and selling their own
products for the customers to capture the market influencing the consumption behaviour of
masses, which mainly depend on natural and herbal products. Baba Ramdev’s Patanjali
Ayurved launched in 2006 is perhaps the fastest growing fast moving consumer goods
company in India. A business revolution, marketing through spirituality and an ayurvedic
magic wand for healthy living, it has been called all by researchers in previous background
studies.
1.2 Statement of the Problem
Since Patanjali Ayurved Ltd. is a leading fast moving consumer goods company with a
tremendous growth in the past few years, it is a growing threat to the other influential
FMCG’s. Hence to study the growing market of Patanjali our aim is to determine what
6363
ISSN: 2347-1697
International Journal of Informative & Futuristic Research (IJIFR)
Volume - 4, Issue -5, January 2017
Continuous 41st Edition, Page No: 6361-6382
Dr. Anuja Agarwal, Sakshi Gupta, Srashti Gupta, Vinayak
Nautiyal :: The Impact of Patanjali Products on the FMCG
Business Hither to Dominated by Multi-Nationals like Hul, P&G,
Nestle etc.
factors are responsible for giving Patanjali a head over others FMCG’s. This study will
determine the different distribution channels through which Patanjali is pushing its products
in the market. It focuses on key determinants which gives Patanjali a competitive edge over
other competitors and also the issues of how the shortage of products is influencing its sales,
customer satisfaction and its production strategy.
So the statement of the problem is that which factors are working for Patanjali and the
perception of these factors towards the consumers along with the most popular product
portfolio among its various distribution channels.
1.3 Purpose of the Study
The purpose of the study is to find out certain factors that have led to the growing boom of
Patanjali products in the market, how different channels lead to pushing sales of products
and to determine how shortage of some best-selling products leads to loss of opportunity
costs and other not popular products have led to increased inventory costs of products
through different distribution channels.
Purpose 1: Based on demographic data, is there any specific pattern which can be
observed?
H0: There is no relationship between the buying pattern of male and female.
H1: There is a relationship between the buying pattern of male and female.
H0: There is no relationship between the buying patterns of on the basis of age groups.
H1: There is a relationship between the buying patterns on the basis of age groups.
Purpose 2: What are the important factors that give Patanjali an edge over other FMCGs?
H0: There is no relationship between the factors that affect the mindset of consumers of
Patanjali.
H1: There is a relationship between the factors that affect the mindset of consumers of
Patanjali.
Purpose 3: Which are the most popular products of Patanjali?
This research will help us to understand the market dynamics and the customer behaviour
regarding Patanjali’s products and why large based customers are switching from multi
nationals like HUL to Patanjali’s herbal based products and to know whether Patanjali can
increase its sales by increasing its opportunity cost and reducing its inventory cost by
manufacturing more popular products.
II. REVIEW OF RELATED LITERATURE
 Layak and Singh (2015) report “Desi bustle v/s MNC muscle” stating how
Ramdev’s Patanjali is setting trend for HUL and how Baba Ramdev’s
unconventional marketing and strong follower base coupled with aggressive pricing
has helped him overtake established players in ayurvedic FMCG like Emami and
Himalaya.
Some facts and figures
 Roy, Lath and Sharma (2015) believe that strong innovation and new products
pipeline, pricing discounts to the peers, ayurvedic and natural propositions with low
A&P spends and manufacturing indigenously lend Patanjali’s products a competitive

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from:
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CG_Business [accessed Feb 26 2018].