Research for Marketing Decisions

HOW CAN PATANJALI REVIVE ITS DECLINING SALES?

Submitted by:
Name Roll no
Saurabh Jaiswal 2111244
Anurag Kashyap 2111248
Anmol Kankariya 2111457
Ayushman A Sinha 2111458
Siddharth Juikar 2111474
Pranav Bhageria 2111496
HOW CAN PATANJALI REVIVE ITS DECLINING SALES?

Project report submitted to the

Indian Institute of Management Bangalore
In partial fulfilment for the award of the degree
of
Master of Business Administration
by
Saurabh Jaiswal
Anurag Kashyap
Anmol Kankariya
Ayushman Sinha
Siddharth Juikar
Pranav Bhageria

Indian Institute of Management Bangalore

PGP Term 3 - March 2022

© 2022 Saurabh Anurag Anmol Ayushman Siddharth Pranav. All rights reserved.
 Acknowledgement

Prof. Gopal Das deserves special thanks for his unwavering support, advice, and encouragement. We
are appreciative for the chance to work on a real project that he has given us. Special thanks to IIMB
students and friends who took the time to complete the survey and help us better understand
different elements involved while buying Patanjali products. We are also appreciative to our
classmates in the Research for Marketing Decision class, who assisted us in better grasping the ideas
and provided a supportive environment in which we could learn from one another. We appreciate
each other's efforts and contributions as a team. Special thanks to our family for their
encouragement and cooperation, which enabled us to work to the best of our skills, especially when
conducting research online.
 Declaration

I certify that

a. The work contained in the project is original and has been done by myself.
b. The work has not been submitted to any Institute for any degree or diploma.
c. I have followed the guidelines provided by the Institute in writing the project report.
d. I have conformed to the norms and guidelines given in the Ethical Code of Conduct of
the institute.
e. Whenever I have used materials (data, theoretical analysis, and text) from other
sources, I have given due credit to them by citing them in the text of the thesis and
giving their details in the references.
f. Whenever I have quoted written materials from other sources, I have put them under
quotation marks and given due credit to the sources by citing them and giving
required details in the references.

Signature of the students

Saurabh Jaiswal
Anurag Kashyap
Anmol Kankariya
Ayushman Sinha
Siddharth Juikar
Pranav Bhageria
 Executive Summary

Patanjali Ayurveda, founded in 2007,has become one of India’s biggest multinational FMCG
brands. From a revenue of Rs 100 crore in FY 2010-11 to Rs 9022 crore in FY 2019-20,it has grown
rapidly in the Indian FMCG & ayurvedic product category. But recently Patanjali has faced
dwindling sales & profit margins in its core business, even though the industry is forecasted to grow.
Therefore, we conducted secondary data research & literature review to examine this problem &
formulate relevant hypothesis for testing as part of our Marketing research project.

These secondary literature reviews revealed factors like contradictory brand positioning,
diversification, misleading advertisements & lack of targeted advertising communication & the
impact they have on sales of Patanjali products. The hypotheses were formulated based on these
factors & questionnaire for survey was developed accordingly. We created a survey & circulated it
amongst consumers to collect their responses, interpret them & test the hypotheses. For
interpretation of the data collected form consumers via our survey, we have utilized the regression
analysis, factor analysis & cluster analysis techniques.

Findings
 Customers prefer Patanjali to use relevant advertisement rather than misleading ones.
 Targeted advertisments through social media marketing can increase Patanjali’s brand
awareness.
 Marketing different products as different brands helps customers associate with
individual products.

Recommendations
 Emphasise more on social media marketing & building online brand presence on
Instagram, Facebook & other networking sites.
 Concentrate on true, genuine advertisements rather than deceptive ones. Celebrity
endorsements can also help boost sales.
 Clustering the target consumers profile can help increase the effect of advertisements on
consumers.
 Employ word-of-mouth marketing through different publicity activities to increase
product awareness & boost ad conversion rates.
Table of Contents
Chapter 1: Introduction.........................................................................................................................6
1.1 Industry Overview..................................................................................................................6
1.2 Company Overview......................................................................................................................6
1.3 Problem/Opportunity Identification............................................................................................6
1.4 Problem statement......................................................................................................................7
1.5 Management Decision Problem..................................................................................................7
1.6 Marketing Research Problem......................................................................................................7
Chapter 2: Research Objective..............................................................................................................7
2.1 Qualitative Research....................................................................................................................7
2.2 Hypothesis...................................................................................................................................7
Chapter 3: Research Method.................................................................................................................9
3.1 Nature of Study............................................................................................................................9
3.2 Measurement and Scaling.........................................................................................................10
3.3 Data Collection Instrument – Questionnaire.............................................................................10
3.4 Sample Size and Sampling..........................................................................................................12
Chapter 4: Data Collection...................................................................................................................13
Chapter 5: Data Analysis, Results and Discussions..............................................................................13
5.1 Descriptive Statistics..................................................................................................................13
5.2 Experiment- Hypothesis testing.................................................................................................14
5.3 Regression Analysis....................................................................................................................15
5.4 Factor Analysis...........................................................................................................................16
5.5 Cluster Analysis..........................................................................................................................19
Chapter 6: Managerial implications and recommendations................................................................20
Chapter 7: Limitations.........................................................................................................................21
Chapter 8: Conclusion………………………………………………………………………………………………………………………21
References...........................................................................................................................................22
Chapter 1: Introduction

1.1Industry Overview

The Fast-moving Consumer Goods (FMCG) industry is India's fourth largest industry, with
home and personal care products accounting for half of FMCG's total sales. Favourable
demand drivers, such as rising income levels and urbanization, have recently led to
significant and diverse investments in the FMCG sector. Leading FMCG companies are
expanding their capacity to meet growing domestic demand and domestic brands are
expanding into the international market. Urban areas (accounting for about 55% of India's
FMCG sector's total revenue) are the main contributors to the sector's total revenue.
However, in recent years, the FMCG sector in rural India has developed more rapidly than in
urban India. India's FMCG industry is projected to grow by 14.9% annually to $220 billion in
2025 from $ 110 billion in 2020. According to Nielsen, India's FMCG industry grew 9.4% in
the January-March 2021 quarter. This is due to consumption-led growth and, in particular,
rising prices of staple foods.

1.2 Company Overview

Founded in 2007 under the leadership of Baba Ramdev & Acharya Balkrishna, Patanjali
Ayurveda is a privately held FMCG company, with its brand repertoire covering a range of
products in cosmetics & skincare, food products, healthcare, herbal beverages & home care.
All its products are manufactured indigenously in the industrial units of Haridwar, with a
strong focus on natural products & better healthcare for consumers.
Patanjali was a big disruptor in the FMCG industry, having witnessed its fastest growth in
2016.Its major emphasis on the development of herbal, healthier variants of consumer
products forced big industry players like Colgate, HUL etc. to venture into the healthcare
space with healthier variants for consumers.

1.3 Problem/Opportunity Identification

In recent years, Patanjali has faced declining sales & revenue growth in the FMCG segment.
Ever since its sales faltered in FY 2017, it is yet to regain momentum it possessed earlier.
This observation is highlighted by the fact that in FY20, net profit margin achieved by
Patanjali was
4.67 per cent, compared to 13.3 per cent in FY17 and 16 per cent in FY16.
So, the decline in Patanjali’s consumer goods business, in terms of sales & revenues, is a
huge problem that needs to be addressed. The potential root cause, as identified by a few
reports, is reported to be lack of coherent advertising strategy, the roll-out of the Goods &
Services Tax (GST) & Patanjali’s own weak distribution network. Also, it faces stiff
competition from HUL, Dabur, Emami & Himalaya in the natural & herbal immunity-
boosting products space; since these brands are also entering the ayurvedic & herbal products
segment.
1.4 Problem statement
Even when the Indian FMCG industry is expected to grow at a CAGR of 14.9% till 2025,
Patanjali, once India’s fastest growing FMCG company, is witnessing a decline in sales and
revenue growth.

1.5 Management Decision Problem

How can Patanjali revive its declining sales through efficient marketing strategies and brand
positioning?

1.6 Marketing Research Problem

To examine the impact of factors that influence sales of Patanjali products.

Chapter 2: Research Objective

2.1 Qualitative Research

To arrive at the Research objective from MRP, literature review and secondary data
collection and analysis was used. Based on this research, the major factor driving decline in
sales was found to be Patanjali’s inability to retain customers. The appeal of a “Swadeshi”
brand and Baba Ramdev’s charismatic image were able to help Patanjali draw customers to
try its products. But due to a number of factors, the company was not able to convert these
early adopters and early majority customers into brand loyalists. Our research yielded the
identification of the following 5 major factors influencing the sale of Patanjali products:

1. Contradictory brand positioning

2. Diversification into unrelated territories
3. False and misleading advertisements
4. Lack of targeted advertisements through various communication channels
5. Marketing of all products under the same brand name

2.2 Hypothesis

Contradictory brand positioning:

One of the most successful brand positioning strategies of Patanjali was its criticism of
MNCs. Patanjali was able to strike a chord with consumers by promoting a “Swadeshi”
culture, with their appeal to customers to help them retain the country’s money within the
country. But the company contradicted its own positioning when it started listing its products
on international companies like Amazon. This led to the erosion of trust amongst customers.

H1: Standing firm on a successful brand positioning increases customer loyalty which in turn
increases sales
Diversification into unrelated territories:

Patanjali started off as an Ayurveda-based company that tried to reconnect people with
nature. Companies like Emami and Hamdard had been in the business of Ayurvedic products
for a long time. But what differentiated Patanjali was the fact that it blended Ayurveda into
FMCG products, something which the other competitors had failed to do. Thus, Patanjali’s
strength was its expertise in meeting the needs of people with Ayurveda-based FMCG
products. But with time, the company diversified into a number of unrelated businesses, in
many of which it had no expertise. This diluted the perception that customers had of
Patanjali. For example, an Ayurvedic company selling jeans and shirts did not go down well
with customers.

H2: Focussing on key strengths without diversification into unrelated businesses strengthens
the perception of the brand, which in turn increases sales

False and misleading advertisements:

Patanjali has been involved in a lot of controversies surrounding its advertisements. The
recent controversy regarding the sale of “Coronil” as a covid treatment medicine led to the
company receive strong backlash from authorities and customers alike. False and misleading
advertisements lead to reduction in trust amongst customers.

H3: True and genuine advertisement has a positive impact on the sale of products

Lack of targeted advertisements through various communication channels:

As per data from TAM Media Research, in 2016 Patanjali was the third biggest advertiser in
the Indian FMCG industry, only behind HUL and Reckitt Benckiser. But by 2019, the
company dropped to the 40th position. Further, the company was not promoted sufficiently
across different communication channels, thus limiting its targeted audience.

H4: Targeted advertisements through different communication channels increases brand

awareness, which in turn increases sales

Marketing of all products under the same brand name:

All the products sold by Patanjali are marketed under the brand name of “Patanjali” only.
This prevents customers from identifying various products in silos. Further, any controversy
regarding one product goes on to invariably affect the image of all other products, as all
products are marketed under the same name. For example, when Maggi was banned, Nestle
managed to restrict its damages to only Maggi as the company markets different products
under different names. In contrast, the controversy regarding the quality of Patanjali honey
could have affected the sales of all other products, as honey as well as all other products are
marketed under the same brand name.

H5: Marketing different products as different brands helps customers associate with
individual products, which helps in ensuring product and brand loyalty, which in turn
increase sales
 Standing firm on a successful
H1: brand positioning

Focussing on key
H2: strengths without
diversification into
unrelated businesses

H3: True and genuine Increased sales for Patanjali

advertisement

H4: Targeted advertisements

Marketing different products

H5:
as different brands

Figure 1: Graphical Model of Research Objective

Chapter 3: Research Method

3.1 Nature of Study

Our study is focused to find the factors which impact the purchase intention of consumers of
Patanjali which may lead to increased sales for the brand.
After conducting an exploratory search through literature survey and a focus group
discussion, we were able to discover the possible factors which can influence the outcome,
the sales of Patanjali in this case. The possible factors are listed as follows:
 Standing firm on a successful brand positioning. (H1)
 Focussing on key strengths without diversification into unrelated businesses. (H2)
 True and genuine advertisement. (H3)
 Targeted advertisements. (H4)
 Marketing different products as different brands. (H5)
As a result, the next step is to test these. We developed an experiment for the causal
hypothesis and an online survey for the descriptive hypotheses. Firstly, we check the
hypotheses I, II, IV and V to show their relationship with the dependant variable sales of the
brand. Then, we examine hypothesis III for the causal relationship with the dependant
variable sales of the brand. Hence, the nature of our study is both descriptive and causal in
nature.
3.2 Measurement and Scaling

The product portfolio of Patanjali is diverse which includes ayurvedic, cosmetics & personal
care and food products, and is also targeted towards consumers from different age groups. To
understand the factors which impact the customers from diverse backgrounds, we use the
interval scale for measuring all the independent variables. We will use a seven-point Likert
Scale, where 1 is Strongly Disagree, 2 is Disagree, 3= Somewhat Disagree, 4 is Neither
Agree nor Disagree, 5 is Somewhat Agree, 6 is Agree, and 7 is Strongly Agree.
A ratio scale will be used to capture the income and age of the respondents. We will use the
nominal scale to capture the categorical parameters such as Gender, Location and Profession
of the users in our sample.

3.3 Data Collection Instrument – Questionnaire

Experiments and surveys are both useful techniques for data collection given that nature of
our study is descriptive cum causal.
Survey
In order to collect the responses of the consumers, we have prepared a survey using the
questionnaire design process. The considerations while designing the questionnaire have been
detailed below:
 We are covering four independent variables in the survey, while the dependent
variables include sales for the brand, Patanjali.
 We would be collecting data online via the medium of Qualtrics, by circulating the
link of our survey amongst consumers.
 We have tried to ensure that the questionnaire does not contain any insensitive
questions or questions which might not gain any response.
 The survey starts with general introduction of our study, privacy disclaimer and a
brief about the brand.
 We have asked about the Demographic information at the end of the survey.
 We pretested the questionnaire with 10 consumers to remove any inconsistencies. As
per the suggestions received, we updated the questionnaire to make it more relevant
and engaging.
The link to the survey is: Qualitrics Survey
Experiment:
One of our study hypotheses has a causal relationship:
 H3: True and genuine advertisement has a positive impact on the sale of products.
The variables involved include:
 Independent Variables – True and genuine advertisement (related and unrelated to
product advertisements): manipulated.
 Dependent Variable – Sales of Products (related to Purchase Intention).
 Extraneous Variables – Product, quality, pricing (same product characteristics are
shown in the experimentation, only the information about the advertisement changes).
Experiment 1: (For hypothesis H3)
For our experiment, we check how unrelated and partially misleading advertisements can
have an impact on the consumers purchasing behaviour, impacting the sales of the product.
For checking this, the independent variable is the advertisement alongside the product on sale
(as banners or in shop pamphlets for offline sales).
Here, we have conducted the advertisement with the presence and the absence of a
misleading or unrelated advertisement to check its impact on the purchase intention of the
consumers. Both sets of respondents must indicate their purchase intention on a Likert scale
of 1-7.
We plan to conduct this experiment with both male and female gender groups across
geographies covering the target segment of all income cohorts. Variables such as price,
quality, and weight have been kept same across both.

Figure 2: Product on sale with a relevant advertisement.

 Figure 3: Product on sale with an unrelated/misleading advertisement.

3.4 Sample Size and Sampling

The target demographic for our surveys are adults aged 18 and up. A set of questionnaires in
form of a Qualtrics survey will be floated to the target population.

Sample size: A formula-based approach can be used to determine the sample size.

N = [(Std. Dev) ^2 * (Z-value) ^2]/D^2

Where,
Range = Max. Scale point – Min. Scale point (Since for the survey Likert scale is used with
= 7 –1 = 6 a range of 7)
Std. Dev = Range/4 = 6/4 = 1.5
D = 0.05 (Level of precision)
Z value = 1.96 (Since confidence interval taken is 95%)
Determining sample size using formula for standard error
N = Sample Size
= σ2 * z2 /D2
= 3458 (Approx.)
Since the sample size is very large, we don’t have adequate time and resources to collect data
at such a large scale. Thus, for our surveys and experiments, we will be going ahead with a
sample size of 30 per independent variable.
Survey: Since there are 4 independent variables for the four hypothesis, we will have a
sample size of 30*4 = 120 respondents.
Experiment: There are 2 interaction variables for 1 experimental hypothesis therefore,
sample size will be equal to 60 respondents (30*2).
Sampling Technique: As a sampling strategy, we employed convenience sampling. The
survey will be sent to individuals via WhatsApp and Facebook, with the targeted
demographic being friends, acquaintances, and family.

Chapter 4: Data Collection

Data was collected for hypothesis testing (Conclusive Research/ Quantitative Research) as
well as throughout the MRP and Objective creation stages (Exploratory Research/ Qualitative
Research).

An early qualitative evaluation was carried out to determine the elements influencing
customers' purchase intentions for the Patanjali brand to gather preliminary qualitative data.

Because there were both descriptive and causal research aims in Conclusive Research,
distinct questionnaires for Survey and Experiment were created using the Qualtrics platform.
Because field work was not possible owing to Covid-19, the e-questionnaire was distributed
via online channels (WhatsApp, Facebook, LinkedIn, etc.) for data gathering. Because the
Survey and Experiment were conducted online, the questions were closed-ended and simple
wordings were used to guarantee simplicity of understanding. This online questionnaire
generated a total of 150 responses.
The Demographic Profile of Survey Respondents, as well as the analysis of the raw data
acquired for testing the hypotheses stated in Step 2 of this marketing research project, will be
covered in the following chapter (Quantitative Data Analysis for Conclusive Research).

Chapter 5: Data Analysis, Results and Discussions

We completed certain pre-requisites to make our data suitable for data analysis before
commencing to analyse the data acquired from the survey and experiment. In the first phase,
we classified all of our responses on the Likert scale from 1 to 7, as previously decided. Then
we went on to data cleansing, where we imputed missing data by using mean values to fill in
the gaps. After cleaning the data, we verified for normality using histogram plots.

5.1 Descriptive Statistics

Responses of 150 people were collected. The demographic analysis of the survey showed that
62% of the respondents were male and rest female. Majority of the respondents were
employed i.e., 42%, some were running their own businesses and very less percentage of all
were housewives.
 Fig 4: Gender & profession-wise split of respondents

Most of are respondents were between 18-30 age category which is around 93 in number.
Around 13% respondents were between 30-40 years and same for 40-50 years. Least
respondents were from 50+ years category.

Fig 5: Age-wise split of respondents

5.2 Experiment- Hypothesis testing

Hypothesis - True and genuine advertisement has a positive impact on the sale of products
This hypothesis signals the cause-and-effect link or Causality since it checks the impact of
one independent variable on the dependent variable. Hence, we collected the data with the
help of an experiment.
Independent variable: True and genuine advertisement
Dependent variable: Sales
To conduct this experiment, we showed two different advertisements to our participants, one
that was a genuine advertisement showcasing the product features and the other which used
misleading figures to represent the brand as something which it is not. We then used the tools
of descriptive statistics to analyze the responses given by our experiment participants.
 Fig 6: Customer preferences on advertisement Fig 7: Corelation between purchase intention & ads

The result from descriptive analysis shows that more than 60% if the customers prefer the
brand to use relevant advertisement rather than misleading ones. Also, a direct correlation can
be seen between purchase intentions and advertisements. Thus, we were able to conclude that
true and genuine advertisements have a positive impact on sales.

5.3 Regression Analysis

Regression Analysis- a type of dependence technique was carried out considering

advertisement Conversion as dependent variable, alternate brand and social media as
independent variable. For regression analysis, both dependent and independent variables
should be metric in nature and hence both our variables were metric. Below are the steps
which were done for regression analysis.
a) To start with regression, firstly there is a need to check whether regression will be
possible or not. For this, model fit index statistics was used. Coefficient of
determination (R2) present in the model summary table checks whether association
exist between dependent and independent variables. R2 is a number that ranges from 0
to 1 and represents the proportion of total DV (explained variation) that is accounted
for by IV variation (s).
Since R2 value here is 0.293, this shows that association exist.

b) Association between the two can also be alternatively checked with the help of Anova
table. The F-test is used to test the hypothesis. If linear relationship exist between
dependent and independent variable, this means that alternate hypothesis is accepted. As
significance value is <0.05, this proved the alternate hypothesis.
 c) Predicting dependent variable with the help of independent variables. Predicting the
conversion rate through advertisements with independent variables as alternate brands and
social media. Before using the equation to find dependent variables, significance value of
both the dependent variables are checked. In the below table, significance value of both
variables are below 0.05, hence can be used to predict the advertisement conversion.

Advertisement Conversion = constant + beta value of social media* social media + beta value of
alternate brand* alternate brand
Advertisement Conversion = 0.153 + 0.293* social media + 0.467 * alternate brand
d) Last managerial implication of regression analysis was to find the relative importance of the
independent variables present. This is done by checking the standard coefficient value of the
variables. As per the table, standard coefficient value of social media is 0.292 and alternate
brand is 0.403, hence, alternate brand is relatively more important than social media.

5.4 Factor Analysis

Factor analysis (FA) is a term that refers to a group of processes that are generally used to reduce and
summarise data. There may be a huge number of variables in marketing research, the majority of
which are associated and must be reduced to a tolerable level for smooth operations. Relationships
between groups of numerous connected variables are investigated and expressed using a few
fundamental factors. We conducted factor analysis to combine the utility of various variables and to
reduce the number of variables that were highly correlated.
Step 1: Assumptions of Factor Analysis – data fir and appropriateness check
To check the validity of the number of samples, we first conducted the KMO and Bartlett’s test.
 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
0.845
Adequacy.
Approx. Chi-Square 651.31
Bartlett's Test of df 45
Sphericity Sig. <.001

KMO index turned out to be greater than 0.5 and Bartlett’s test of sphericity provided a significance
of less than 0.05. Thus, we safely assumed that the data fit the model and there exists some correlation
between the variables. Therefore, we concluded that Factor Analysis is possible.
Step 2: Deciding the number of factors
Then we used the Eigen value analysis to understand how much variance is being explained. The
extraction method used was principal component analysis and Eigen value greater than 1 criterion.
The acceptance range set is above 60%. The total cumulative variance explained by the two factors
identified for the analysis explains 59.78% of the variance.
Step 3: Interpretation of factors
To interpret the results with relative ease, we have used the rotated component matrix along with
component matrix to decide factor compositions. The below tables shows the values that we got after
the analysis.
A cutoff factor loading of 0.6 has been used to decide which variables should be considered under one
factor.
a
Component Matrix
a
Rotated Component Matrix
Component Component
1 2 1 2
Brand Identity 0.538 -0.576 Brand Identity 0.77
Trust on Trust on
0.783 -0.361 0.849
advertisement advertisement
Willingness 0.792 -0.173 Willingness 0.748

Product Awareness 0.474 0.504 Product Awareness 0.685

Product innovation 0.721 0.148 Product innovation
Social Media 0.425 0.686 Social Media 0.806
Advertisement Advertisement
0.745 0.233 0.617
conversion conversion
Reference 0.825 -0.237 Reference 0.813
Advertisement Advertisement
0.755 0.131 relatibility
relatibility
Alternate brand 0.592 0.026 Alternate brand
Based on this matrix, we formed two factors:
1. Brand conviction: Brand Identity + Trust on Advertisement + Willingness + Reference
2. Brand Marketing: Product Awareness + social media + Advertisement conversion rate

5.5 Cluster Analysis

Cluster analysis is a set of approaches for grouping samples/customers into clusters that are relatively
homogeneous. Each cluster's customers/samples are similar to one another yet different from
samples/customers in other clusters.
Hierarchical approach:
This approach is used to answer the managerial question about deciding the number of clusters and
their customers.

There are no firm rules that exist, but a few guidelines can help us understand the number of clusters.
Dendrograms are charts which show the different combinations of customers possible, and we have to
deicide on the relative size of the cluster. We have considered the distance 5 of the “Rescaled
Distance Cluster Combine” to get 3 different clusters. We have used the Ward’s method as our
clustering method and the “Squared Euclidean” approach to measure the proximity distance.
Non-Hierarchical approach:
When we have the final number of clusters, we use this approach. The above answer of 3 clusters can
be used as the input for the non-hierarchical approach, which is also known as K-means cluster/ Quick
Cluster.
The scores shown under
each cluster is calculated by the average scores of all customers’ ratings. Based on the answers
received, we got three clusters with different characteristics.
Cluster 1: Could relate more to advertisements than products.
Cluster 2: High brand awareness mainly through social media and willingness to try new products
Cluster 3: Low purchase intentions and low brand awareness

Chapter 6: Managerial implications and recommendations

The goal of our project was to investigate the elements that influence brand awareness and purchase
intent for. Our investigation yielded some intriguing findings as well as a few surprising
discoveries that can be pursued further.
These findings have significant managerial implications for Patanjali promoters. The following are the
managerial implications:
a) More focus on social media marketing - To boost public awareness, Patanjali should focus
more on social media marketing. In addition, new brands should be brought to the market.
Patanjali should concentrate on authentic and true advertisements rather than deceptive ones.
Celebrity endorsements would aid in increasing advertisement conversion rates, as most of
the potential customers use social media extensively.

b) Word of mouth marketing - To improve brand belief, employ word-of-mouth marketing. It

can be encouraged through different publicity activities, or through consumer to consumer
approach. Patanjali could also focus on raising product awareness in order to boost ad
conversion rates. A company's encouragement can come in a variety of shapes and sizes.
Giving people a reason to talk, such as exceeding expectations or sharing insider knowledge
or information about a product, is the greatest way. Other tactics include giving customers
new methods to share information about a company's products and services, as well as
connecting and communicating with them, such as through excellent customer service. This is
 especially important when it comes to social media-based customer care, since it allows for
easy sharing and promotion.

c) Clustering the customers - The overall customer profile could be classified into
three clusters based on brand identity, price as well as advertisement. These clusters should be
used to position the brand in order to maximize the impact of advertisements. Customers
under the age of 50 should be targeted using Patanjali's traditional brand identification
influence. Customers that are employed and earn a lot of money should be targeted for high-
priced items.

Chapter 7: Limitations
a) The sample does not represent the entire sample because it is homogeneous. If the sample had
been more diverse, a variety of other parameters would have been evaluated.
b) The results should be seen as suggestions and augmented with industry knowledge by the
decision makers.
c) The experiment could be conducted on a sales platform to understand the consumers better.
d) Most respondents are from Tier 1 cities.

Chapter 8: Conclusion
Patanjali should focus more on leveraging social media marketing tools & channels to reach
wider consumer base. Using innovative, unconventional guerilla marketing tactics to reach
consumers, make them excited about the company’s new offerings & communicating its functional
& emotional benefits will help. Use of celebrity endorsements will be an added benefit. Purchase
intention of consumers has positive correlation with true advertisements. So genuine advertisements
will positively impact sales. Exploring methods of increasing the brand awareness & reach via
positive word-of-mouth techniques is essential to increase the brand’s appeal in rural areas.Also,we
recommend promoting different products as different brands instead of unifying them under a
single umbrella name of Patanjali. This helps the company to avoid controversy about a single brand
from affecting the image of the other brands.
Appendix
Questionnaire used for the survey:
References

https://theprint.in/india/baba-ramdevs-patanjali-is-in-a-free-fall-it-cant-be-blamed-on-the-slowdown-alone/287917/

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https://bestmediainfo.com/2019/11/what-brands-can-learn-from-patanjali-s-steep-decline/

https://bestmediainfo.com/2019/11/what-brands-can-learn-from-patanjali-s-steep-decline/

https://theprint.in/india/baba-ramdevs-patanjali-is-in-a-free-fall-it-cant-be-blamed-on-the-slowdown-alone/287917/