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Consumer Perception of Patanjali Products: An Analytical Study

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 Consumer Perception of Patanjali Products:
An Analytical Study

Ruchi Jaggi* and Munmun Ghosh**

This study aims to investigate the consumer perception regarding the Patanjali brand through a survey
in the city of Pune. The responses to a closed-ended questionnaire suggested that competitive pricing,
quality of products and good communication strategies were the most important reasons for the popularity
of Patanjali products. Further analysis brought out the following factors as being the most important in
influencing the decision to purchase Patanjali products among its customers: communication strategy,
product quality, competitive pricing, brand image of Baba Ramdev and consumer awareness.

Introduction
A news story in Business Standard (Rakshit, 2016) quotes the Nielsen report, “Anticipate
with Analytics: The Future of FMCG”, and states that all the major Fast-Moving
Consumer Goods (FMCG) players in India are currently dealing with an extremely slow
rate of growth. The report mentions names like HUL and ITC in particular, whose growth
rates have fallen from 13.2% and 11-12% to 3.2% and 7%, respectively, and compares them
to the over 2,000 cr turnover by Patanjali Ayurved Ltd., a recent player in the market.
The said report marvels at Patanjali’s success as a brand and tries to analyze the factors
that have made it a highly profitable venture within a very short span of time, in an era
when big FMCG giants are battling an industry-wise overall slowdown.
According to a detailed report in The Economic Times (PTI, 2016), Patanjali Ayurved
clocked 1,200 cr in revenues during the fiscal year 2013-14, and crossed 2,000 cr in the
year 2014-15, which makes its turnover equivalent to that of companies like Emami.
Different reports peg the turnover of Patanjali Ayurved Ltd. to be between 2,000 to
2,500 cr in the fiscal year 2015-16.
Started in 2006, Patanjali Ayurved Ltd. has moved from selling its products from its
ashram premises and tuck shops to dedicated outlets and now even hypermarkets. Casual
interactions with retailers and shopkeepers reveal how the big FMCG corporates are
changing their marketing strategies, even slashing down prices significantly to compete
with the Patanjali bandwagon.
* Associate Professor, Symbiosis Institute of Media and Communication, Symbiosis International University,
Pune, Maharashtra, India. E-mail: ruchi.jaggi@simc.edu
* * Assistant Professor, Symbiosis Institute of Media and Communication, Symbiosis International University,
Pune, Maharashtra, India. E-mail: munmun.ghosh@simc.edu

© 2017 IUP
Consumer . All RightsofReserved.
Perception Patanjali Products: 13
An Analytical Study
 According to a report published by Kotak Institutional Equities, Patanjali garnered a
4.5% market share in the toothpaste segment, while Colgate’s share dropped by 0.6% to
57.3% (Newsroompost.com, 2016). What makes a young company like Patanjali Ayurved
Ltd. race ahead and beat the veteran FMCG giants in their own game? This study attempts
to address this question by understanding the perceptions of consumers with respect to
Patanjali products.

The Current Scenario

Patanjali, founded by yoga guru Baba Ramdev, began as a small pharmacy in Haridwar in
1997 and currently manufactures over a thousand different products in many categories
that include healthcare, medicines, nutrition and supplements, grocery, personal care,
home care, books and media. A recent report published by Agency FAQs states that
Patanjali was featured in the 2015 Brand Trust Report, a study conducted by brand
intelligence and data insights firm Trust Research Advisory, and was identified as one of
the seven most trusted Ayurvedic brands in India (Sharma, 2016). The same report quotes
Broadcast Audience Research Council (BARC) data that lists Patanjali advertisements as
the third-highest broadcast commercials on Indian television.

Patanjali Ayurved Ltd. – The Brand Story

According to renowned sociologist Vishvanathan (2016), Ramdev is the first spiritual
guru who actually transformed symbolism into actual production. Vishvanathan states
that the indigenousness of Patanjali products positions them as authentic, and Ramdev’s
established knowledge and expertise on yoga and health issues adds credibility to the
brand. The other factors that have catalyzed the acceptance of this brand include the
increasing consciousness about healthy lifestyles, anxiety about other brands; and as
Vishvanathan puts it, people associate a sense of patriotism with buying Patanjali
products.
Aaker (1997) states that effective brand positioning helps to situate a brand
advantageously in comparison with its competitors. Anand Halve (a leading brand
consultant and the co-founder of brand marketing agency, Chlorophyll) quoted in Sharma
(2016) says: “Patanjali, because of its association with Baba Ramdev, comes with enormous
credibility. He has high media presence and has leveraged political sentiment to define
what he stands for—pride in nationalism, traditional values and scientific wisdom. The
lesson for brands is—it’s important to have a set of loyal, even obsessed, fans. Then it
doesn’t matter if there are others who hate you”.
Many media reports reason that Patanjali’s strategy of focusing on the quality, purity
and affordability of its products has worked successfully. While the followers of Baba
Ramdev constitute the core customer-base of Patanjali products, the interesting
development is the increasing popularity of these products among the non-followers.
Whether it is the assurance of purity conveyed by its natural and herbal product line, or
the influence of Ramdev, Patanjali Ayurved Ltd. has become a key player in the market

14 The IUP Journal of Brand Management, Vol. XIV, No. 1, 2017

and is giving its competitors a run for their money. Controversies regarding brands like
Cadbury, Nestlé (Maggi), Coca-Cola among others, and the increase in lifestyle-related
health problems have only strengthened Patanjali’s hold on its continuously expanding
customer base.
While Baba Ramdev’s followers were always pegged as slightly older, middle-class
consumers from the Hindi-speaking regions of India in popular media, there is an
expanding consumer base in metropolitan cities as well. According to V S Kannan Sitaram
(Operating Partner, India Equity Partners), as quoted in Sharma (2016), “Ramdev has
found resonance with people who want advice on the kind of life they should be living.
He has tapped into this consumer need brilliantly”.
Patanjali started by positioning itself in Tier II and III cities and built a very strong
customer base in these regions. It then moved to Tier I cities, which by then were already
open to the idea of Patanjali products, because of word-of-mouth endorsements about the
purity and authenticity of these products, and had willing customers. The rising awareness
about the importance of a healthy lifestyle and increasing awareness regarding alternative
therapies like yoga and ayurveda became instrumental in generating acceptance for
Patanjali products.
A report in Business Standard (Rakshit, 2016) states that Patanjali “…has consistently
advertised its products harping on quality and purity thereby hoping to dispel consumers’
doubts on that score. And it has managed to keep prices low. Most importantly, it has
consistently communicated the special features of its products as well as the price. It is
currently aggressively advertising its honey as 43% cheaper than a competitor’s product
(Dabur honey) for a 250 g pack. Dabur’s 500 g honey is priced at 199; Patanjali honey
500 g is available for 135 (32% cheaper)”.
Somewhere in its brand story, the blending of spirituality (an otherwise abstract
concept) with material products became the prime mover for the brand. A popular
perception about Patanjali Ayurved Ltd. is that it is not driven by profits. This dimension
of sincerity and concern for public good has been critical in shaping a positive brand
personality for the Patanjali line of products.
As Vishvanathan (2016) puts it, “Patanjali has been able to get its script right. It is
projected both as a fable and as a business case study, encompassing ethics and economics
in one stroke”.

Objective
In the light of the above discussion, this study aims at deconstructing the brand
perception of Patanjali Ayurved Ltd. from the point of view of its customer base.

Methodology
Aaker (1997) states that product attributes and the benefits they give to their customers
become the basis of brand loyalty. Hence, a perception survey was conducted to elicit the
perspectives of consumers, including a sizeable section of Patanjali’s customers.

Consumer Perception of Patanjali Products: 15

An Analytical Study
 This study attempts to examine the relationship between customer perception about
the branding of Patanjali products, which is dependent on independent variables like
brand image, product quality, product knowledge, product involvement and product
attributes.
Sample Design: The sample for this study is composed of working professionals as well
as self-employed people. The technique of convenience sampling was chosen for this study.
Convenience sampling method was used as it is adequate for an exploratory study and is
the quickest way of obtaining information. A total of 150 questionnaires were circulated
at random to the aforementioned sample and 112 responses were eventually collected.
Questionnaire Construction: The questionnaire had two sections (see Appendix). Part
I consisted of questions pertaining to demographic information about the respondents.
Part II comprised questions based on a scale that measures customer perception towards
the Patanjali brand. The researchers also tried to identify the position of Patanjali’s
competitors such as Hindustan Unilever, Procter & Gamble, Dabur and Godrej in the
competitive market, and developed the survey instrument using Jobber’s perceptual
mapping tool that involved the following steps:
• Identifying the competing brands;
• Identification of important attributes that consumers look for while selecting a
product (through review of literature); and
• Conducting research among target customers to score the individual attributes.
The questions sought responses on a scale ranging from strongly agree to strongly
disagree on a 5-point Likert scale. The questions incorporated in the survey tool included
all the variables that were considered as important for gauging customer perception
towards Patanjali products.

Results and Discussion

The data was collected and collated to understand both the types of customers and the
perception of customers towards Patanjali brands. Demographic details of the survey
respondents are summarized below. As stated earlier, the survey feedback was obtained
from 112 respondents, out of whom 60 respondents were females and 52 were males.
The average household size of the respondents was four, and the average monthly
budget for household purchase was 7,500. A majority of the respondents were graduates
(almost 66%), while 34% were postgraduates. While a majority were employed or were self-
employed professionals, some of the respondents ran their own businesses or worked in
their family businesses.
The researchers initially sought information regarding the brands which the consumers
use in the case of daily products, such as toothpastes, soaps, shampoos, detergents, edible oils,
wheat flour and others. The popular brands that emerged from the responses were those of

16 The IUP Journal of Brand Management, Vol. XIV, No. 1, 2017

Hindustan Unilever and Patanjali. The sample included a sizeable number of respondents
who had switched to Patanjali products in the recent past. The popularity of Patanjali
products vis-à-vis other products has been represented graphically in Figure 1.

Figure 1: Popularity of Brands

70

60

50

40

30

20

10

0
Dabur Hindustan Procter & Patanjali Godrej
Lever Gamble
Brand You Currently Use Brands Used in the Past

The researchers then tried to investigate the reasons for the rising popularity and
increasing positive brand perception of Patanjali products. The results from the survey
revealed that competitive pricing, quality of products and good communication strategies
were the most important reasons, which helped Patanjali to gain popularity and
subsequent enhancement in its brand image (refer Figure 2).

Figure 2: Reasons for Positive Brand Image

Free Trials and Discounts

Good Value-
Added Services Quality

Competitive
Pricing
Communication
Strategies

Consumer Perception of Patanjali Products: 17

An Analytical Study
 The respondents also shared their thoughts in the comments section of the
questionnaire and expressed their satisfaction with Patanjali products as compared to
other products available in the market, because of lower prices and better quality. One
factor that emerged frequently was with reference to the ‘Made in Bharat’ label on the
products, i.e., the products were authentically Indian. These findings emphasize the
significant role played by an effective communication strategy in selling a product or
brand.
Further, the researchers tried to understand the regularity with which the respondents
have been using Patanjali products. The responses clearly indicated that the shift towards
purchasing Patanjali products has been recent, but gradual. The gradual increase in the
consumption of Patanjali products has been represented graphically in Figure 3.

Figure 3: Frequency of Usage of Patanjali Products

Only on Trial Basis

Never

Regularly

Rarely

Sometimes
To understand the underlying factors that influenced consumer perception regarding
Patanjali products, the researchers conducted Exploratory Factor Analysis (EFA). The
questions were based on brand image, product quality, product knowledge, product
involvement and product attributes. The details of the results and the analysis are
discussed below.
The specifics of the factor analysis are as follows:
Variables Included: 17 variables were included in the analysis (Refer Appendix).
Extraction Method: The minimum Eigenvalue was kept at 1.00 and the number of factors
was not specified (due to limited knowledge of the dataset). The default method of
principal components, which is also the most frequently used method, was retained.
Rotation Method: This was used to arrive at factors as distinct from each other as possible.
While an orthogonal solution results in factors not highly correlated with each other, an
oblique solution produces factors highly correlated with one another. Here, we use an
orthogonal solution with the default value, ‘varimax’.

18 The IUP Journal of Brand Management, Vol. XIV, No. 1, 2017

 The Kaiser-Meyer-Olkin (KMO) and Bartlett’s tests were included in the analysis to
judge whether the given dataset is suitable for running a successful factor analysis. Table
1 reveals that the Bartlett’s test of sphericity is significant, standing at a chi-square value
of 108.883, with a significance level of 0. This implies that from the perspective of
Bartlett’s test, performing factor analysis in this case is feasible.
However, the results of Bartlett’s test usually tend to be significant. Hence, there was
also a need to compute the KMO measure of sampling adequacy. This is a far more
discriminating test to decide the suitability of factor analysis and scope for further analysis.
The result shown in Table 1 reveals that the KMO value stands at 0.719, which is high
enough to support the case for factor analysis and underlines that the sample size is
adequate to conduct factor analysis.

Table 1: KMO and Bartlett’s Tests

KMO Measure of Sampling Adequacy 0.719
Bartlett’s Test of Sphericity Approx. Chi-Square 108.883
df 45
Sig. 0.000
Table 2 presents the Rotated Component Matrix, which displays the factor loadings
for each variable. The factor that each variable loaded most strongly on has been
highlighted for quick reference. Table 2 clearly brings out the factors that have an impact
and influence on consumer perception towards Patanjali products.
Table 2: Factors Identified Through Rotated Component Matrix
Using Exploratory Factor Analysis
Factor Nomenclatures
Factors and the Identified Variables
Loadings Assigned to the Factors
Factor 1
Patanjali gained reputation due to the popularity of 0.894
Baba Ramdev.
Patanjali gained reputation because of superior 0.894 Communication
quality products and benefits. Strategies and Quality
Patanjali products compete with global brands 0.829 of Products
in terms of affordability, quality and purity.
Patanjali products are safe because they are 0.824
made from natural ingredients.
Factor 2
Advertisements of Patanjali products are 0.969
more visible in recent times. Visibility and Purity of
We purchase Patanjali products because 0.937 Products
they symbolize purity.

Consumer Perception of Patanjali Products: 19

An Analytical Study
 Table 2 (Cont.)
Factor Nomenclatures
Factors and the Identified Variables
Loadings Assigned to the Factors
Factor 3
Availability of Patanjali products has 0.982
increased in recent times.
We purchase Patanjali products because 0.982 Availability,
they are easily affordable at better prices. Competitive Pricing
Patanjali products are gaining popularity in the market. 0.847 and Range of Products

Patanjali offers a wide variety of products 0.800

with better worth.
Factor 4
Patanjali products would not be as popular and 0.820 Brand Image of Baba
successful if Baba Ramdev was not associated with them. Ramdev
Factor 5
Before purchasing any Patanjali product, 0.669
Consumer Awareness
we are sufficiently aware about the product.
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.

Table 2 provides a clear picture regarding the factors that significantly govern customer
perception towards Patanjali products. The factors that emerged through Exploratory
Factor Analysis (EFA) are communication strategies, quality, availability of the products,
cheaper prices, brand image and consumer awareness. All these attributes are very
important for a brand’s success. Hence, we may conclude that increasing market share and
the success of Patanjali Ayurved Ltd. is due to the following factors:
• Effective communication strategy;
• Better quality at affordable prices;
• Easy availability and wide range of products;
• Brand image based on the credibility of Baba Ramdev; and
• Consumer awareness of Patanjali products.

Conclusion
Effective communication strategy emerged as the key factor that has influenced the
perception of Patanjali products and created a positive brand image for the same. This
finding is in alignment with the BARC data, which states that Patanjali’s advertisements
are the third-highest broadcast commercials on Indian television. Additionally, Baba
Ramdev’s association lends credibility to the Patanjali brand, a factor often mentioned in

20 The IUP Journal of Brand Management, Vol. XIV, No. 1, 2017

the media. Further, the indigenous nature of the products has a strong symbolic value,
which seems to have clearly translated into material benefits for the Patanjali brand.

References
1. Aaker J L (1997), “Dimensions of Brand Personality”, Journal of Marketing Research,
Vol. 34, No. 3, pp. 347-356.
2. Newsroompost.com (2016), “Ramdev’s Patanjali Making MNCs Sweat, Reduces
Colgate Toothpaste Market Share”, available at http://www.newsroompost.com/
274144/patanjalimakingmncssweatreducescolgate toothpastemarketshare/. Retrieved
on March 7, 2016.
3. PTI (2016), “Patanjali to Invest Rs. 1150 crore in FY17, Eyes Doubling Revenue”, The
Economic Times, April.
4. Rakshit A (2016), “The Patanjali Effect”, Business Standard, February.
5. Sharma A (2016), “Striking Fear: Who’s Afraid of Baba Ramdev’s Patanjali?”,
Retrieved on March 6, 2016 from http://www.afaqs.com/news/story/46869_Whos-
Afraid-Of-Baba-Ramdevs-Patanjali
6. Vishvanathan S (2016), “Why Ramdev’s Patanjali is a Fascinating Success Story”,
available at http://www.dailyo.in/business/ramdev%ADpatanjali%ADmaggi%
ADn e s t l %A Dp %ADa n d %ADg %ADa y u rv e d a %ADs ri %ADs r i %ADra v i %
ADshankar%ADmedicine%ADhealth/story/1/9136.html. Retrieved on March 2,
2016.

Consumer Perception of Patanjali Products: 21

An Analytical Study
 Appendix
Questionnaire
Part I
Demographic Information
Name:
Age (Years): Household Size:
Sex: Annual Income ( ):
Occupation:
Educational Qualification:
Who makes purchase decisions?:
Typical monthly budget for household purchases:
Part II
Brand Awareness, Recognition and Purchase Behavior
1. Which of the following brands do you currently use? (You can choose all the
options that apply.)
Dabur Hindustan Lever Procter & Gamble
Patanjali Godrej
2. Which of the following brands have you used in the past? (You can choose all the
options that apply.)
Dabur Hindustan Lever Procter & Gamble
Patanjali Godrej
3. Which of the following, according to you, help build a good brand image for
Patanjali? (You can choose all the options that apply.)
Quality Communication Strategies
Competitive Pricing Good Value-Added Services
Free Trials and Discount
Others (please specify)
4. How often do you buy Patanjali products? (Choose any one.)
Regularly Sometimes Rarely
Never Only on Trial Basis

22 The IUP Journal of Brand Management, Vol. XIV, No. 1, 2017

 Appendix (Cont.)

On a scale of 1-5, please give your opinion on Patanjali products.

Strongly Agree = 5, Agree = 4, Neutral = 3, Disagree = 2, Strongly Disagree = 1.

S. No. Statement Score

1. Patanjali products are gaining popularity in the market.
2. These days people often discuss Patanjali products.
3. Availability of Patanjali products has increased in recent times. They are
available everywhere from kirana stores to hypermarkets.
4. Advertisements of Patanjali products are more visible in recent times.
5. Patanjali gained reputation due to the popularity of Baba Ramdev.
6. Patanjali gained reputation because of superior quality products and benefits.
7. We purchase Patanjali products because they are easily affordable at better
prices.
8. We purchase Patanjali products because they symbolize purity.
9. Patanjali products compete with global brands in terms of affordability,
quality and purity.
10. Patanjali products are safe because they are made from natural ingredients.
11. Patanjali offers a wide variety of products with better worth.
12. Patanjali has emerged as a powerful brand and as a strong competitor to
MNCs.
13. Patanjali products do not appeal to youngsters.
14. Patanjali should increase the promotion and advertisements of their products.
15. Patanjali products would not be as popular and successful if Baba Ramdev
was not associated with them.
16. Low prices are adjudged as poor quality. This perception will affect Patanjali
products in future.
17. Before purchasing any Patanjali product, we are sufficiently aware about the
product.
Any additional Comments:

Reference # 25J-2017-03-02-01

Consumer Perception of Patanjali Products: 23

An Analytical Study
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