© 2019 ijrar january 2019, volume 6, issue 1 impact of

© 2019 IJRAR January 2019, Volume 6, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

IJRAR1BOP022 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 175

“IMPACT OF BRAND IMAGE ON CONSUMER

PERCEPTION AND BRAND LOYALTY: -A STUDY

IN CONTEXT OF PATANJALI AYURVEDA

LIMITED AMONG THE PEOPLE OF PUNJAB”.

Ms Manmeet Kaur Kukreja

Assistant Professor

Mittal School Of Business, Lovely Professional University

Abstract

Patanjali which pioneers in manufacturing herbal medicines and natural products carries a good brand image due to

its focus on value for money and customer satisfaction which further is helping the company to create brand loyalty

for its products and is reflected through the emotional attachment of the customers towards the brand .

Herbal products,Patanjali,consumer perception,brand loyalty

INTRODUCTION

The continuous changing market environment and cut-throat competition all over the world has enlarged the brand’s

role in recent years. There are many consumers who buy brands differently at same time. The preference of specific

brand depends mostly on products quality and availability Consumer satisfaction level depends on the how it

actually performs vis a vis the expected performance from the particular product. When the perceived performance

matches with expected value or exceed on it, then the consumer feels highly satisfied and, in this way, the company

will win the customers loyalty.

In Indian market context perception about a particular brand play an important role as before actually buying or

using any product. Perception is a very important factor to selection or purchase because its essay to pull or pushes

the customer towards a product. In customer’s mind always one question is arises buying or not buying this product

until or unless his decision is not supported by many. So, for the survival of Indian marketing environment, the

brand should position their product. (R.Khanna). India is already an attractive market for the brands due to its

favorable marketing conditions and wider market. If we talked about the Indian customer regarding selection of

FMCG Product their product perception or brand loyalty play an important role in selection or purchase decision.

Patanjali Ayurveda

Patanjali Ayurveda is an Indian FMCG Private Ltd company.it was incorporated by the Baba Ramdev and Acharya

Balkrishna in 2006 with the manufacturing unit in Industrial area of Haridwar Uttarakhand and their registered

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office is situated in Delhi. Patanjali having one International manufacturing which is situated in Nepal under the

name of Nepal garmudYog, and a majority of the raw herbal is imported by India from Himalaya of Nepal for

making of the herbal product. Patanjali’s Ayurveda is the leading producer of herbal and mineral product in India.

According to a report from CLSA and HSBC, Patanjali Ayurveda is a fastest growing FMCG Company of India

with the turnover of RS30 billion ($450 million) and the revenue of Patanjali is 5000 crores in the financial year

2015-2016.

The growth rate of PAL is increasing at the rate of more than the industry Growth rate which somewhere equal to

13% per year. The main reason for growth of this company is totally focusing on the only herbal product.

In last few days’ most of the biggest players of FMCG sector are worried about due fall in their market share. In

recent the CEO of Colgate had given a statement “Be aware with the Patanjali they are the biggest competitor for us

in Indian market”. If we see the performance of Patanjali in Indian market they are rapidly growing

Patanjali Ayurveda Ltd is creating items in the classifications of personal care and food. The organization makes

444 items including 45 kinds of cosmetic items and 30 sorts of food products. As per Patanjali, all the items

manufactured by Patanjali are produced using Ayurveda and natural products. Patanjali have additionally propelled

beauty and baby products. Patanjali Ayurvedic producing division has more than 300 medicines for treating a

diseases s and body ailments, from normal cold to chronic paralysis. PAL has also launched noodle in 2006

according to measure of FSSAI (Food SAFETY AND STANDARD AUTHORITY OF INDIA). In 2006 PAL has

already planned to inter the textile industry not only traditional like Kurta Pajama but also in western product like

Jeans.

Review of Literature

Gustafson & Chabot (2007): - According to this research they identified that a word of mouth is reflecting the

goodwill of the company It means consumers are delighted after using of the product and services and creates the




good word of mouth and that help the company to make a goodwill in the market. Apart from that, we can say that it

will increase the lifetime value of the customers.

Lindquist and Sirgy (2008): - Brand awareness plays an essential role while purchasing a product or service.

Consumer took a decision on the basis of awareness of the brand and its uniqueness. Brand awareness can be

analyzed in such a manner, 1) Brand recognition, whether general public is able to identify the brand through its

attributes or not? 2) Brand recall, involves in asking respondents about what they remember about the brand whey

they see or hear about the brand and 3) Top-of-mind awareness, this level points to a presence of mind which

consumers can easily and immediately recall the brand when asked about a particular product and we can measure

the recognition of brand awareness through questionnaire to gain the information regarding brand awareness.

Zhang (2012): - Brand Image means an impression of product owned by the potential consumers. According to

Department of Marketing, Management school, Jinan University, China The concept “Brand Image” is an important

part in marketing activities. Brand image has a significant relationship between Brand asset and Brand performance,

Based on some theories of a Brand image, it is easy to understand the impact of the Brand image on consumer

perception from a perspective on the basis of customer equity.

Arya et.al (2012): - This research stated that consumer shows a positive attitude toward the herbal medicines

because they are not using as an herbal treatment they are using as their lifestyle. And they found that herbal

medicines are more optimistic and easily prevent the diseases. In India, Patanjali is a big Ayurveda medicine

company and consumers are having perception there is no side effect of herbal products and they are using their

product as a daily routine. In skin care women are having perception like that in Ayurveda there is an absence of

side effect.

Robbins & Judge (2013): - Perception is a process by which individual interpret their sensory indication and give

meaning to their surroundings. According to (Kotler 2014) in marketing, consumer perception is most important

than reality because perceptions affect consumers buying behavior. Information processing systems have four major

stages. These are the following stages exposure, attention, interpretation, and retention.

Suleiman (2014): - This study states that the herbal products are frequently used by people but they are having less

information about their ingredient as well as usage. All the herbal product and health supplements are not good for

health and sometimes it has a bad effect on health. In that study due to lack of awareness of its proper dosage and

usage normally it affects the children’s and women’s during pregnancy and sometimes they suffer from serious

chronic diseases.

Shahroudi and Naimi (2014): - According to their research, one of the main purposes of marketing is retaining and

maintaining customers. To achieve these goals marketers, implement following strategies. They found that customer

satisfaction on the brand image plays a significant role. Apart from that, we can judge the customer loyalty intention




through customer satisfaction and in order to have a positive brand image in the mind of customers and brand image

due to customer satisfaction will affect the loyal intentions. There should be some certain parameters to customer

satisfaction and all parameters like brand image, value word of mouth that will lead to more customer satisfaction.

Maheshwari (2014): - He stated that if a customer is emotionally attached to your brand that reflects the best

experience of your product. Loyal consumers are the emotional creature and they can make good relation with the

brand because they are emotionally linked with the brand. If any company is able to make this kind of relation with

a brand in that case price and other alternatives do not affect this said relationship. It reflects the commitment of the

consumers towards the brand; a company can achieve this with the help of quality and by providing the value to the

consumers.

Dutta.S(2015): - Consumers of this era have turned out to be more health conscious and have strong will to

maintain a good quality life which is reflected through the consumption of Patanjali products which help in maintain

good health .Indian customers are shown their inclination for Ayurveda and herbal therapies and are choosing

natural healthcare options for natural cure .Baba Ramdev’s Patanjali Ayurveda products are on the boom and are

changing the needs of consumers and increasing the product variants and develop a unique identity in terms of

Ayurveda in the market.

Ali & Yadav (2015): - There is not at all problem of less demand in the market for herbal products. The consumers

are having fear in their mind towards health risk and the adverse effect of chemical products that fear is forcing

them to switch to natural products. For Ayurveda companies, it’s a big challenge for them to capture this market and

this market is increasing day by day. According to experts’ advice brand having low familiarity and high

favorability the have to spend money in marketing activities to retain the attention of the consumers. And sometimes

they may switch to the other brands due to non-availability or stock out.

Khanna (2015): - This study states that many customers of Patanjali are satisfied with their products because of

their reasonable price and their ability to cure severe health issues which leads to addition of more customers.

However, it is important for the company not to ignore its competitors.

Ramchandani (2016): - She stated that Patanjali Ayurveda Ltd has a turnover higher than many FMCG companies

and Patanjali is having more than 5000 Cr Turnover in a time span. And at that time most of the FMCG Company’s

struggling due to low profit but Patanjali is able to generate the huge profit the reason behind that consumer are

shifting towards the herbal products. There is no doubt that Patanjali is a turbulent force in the FMCG and Patanjali

is the biggest threat for many companies. And Patanjali is pitching their product in that way they create a

nationalistic environment that will help the Patanjali to boost their sale in the future

Anupriya.S(2017): - Ayurvedic and Herbal medicines are available in all Patanjali and organic stores. Ayurvedic

products are cost effective and accepted by the customers. These medicines and products are easily available and do




not have any side effects. Due to its rich biodiversity content and rich heritage of Indian medicinal system, India

would draw world attention towards the herbal medicine due to its eco-friendly nature. Consumer perception

towards Patanjali is satisfactory and customers are getting value after using the product of Patanjali and they

reinforced to by the products. According to report of WHO (world health organization) they stated that 80 percent

of the world population depends on the herbal medicinal treatment.

RESEARCH PROBLEM

In a short span of time Patanjali has captured a huge market share and given sleepless nights to the existing MNCs a

very few studies has been conducted in India related to Patanjali while none of them has been conducted in Punjab

.Our study will help in finding the consumer perceptions and brand loyalty for Patanjali’s product specifically from

Jalandhar city

OBJECTIVE OF THE STUDY

1. To determine the consumer perception towards Patanjali brand and its FMCG range of products.

2. To measure the purchase intension & brand loyalty for its FMCG range of products.

RESEARCH METHODOLOGY

We conducted descriptive research and developed structed questionnaire that include close ended questions.

SAMPLE DESIGN

The convenience sampling method was adopted to select the respondents also those retail stores were identified

where FMCG products were available including Patanjali Ayurveda. Also, those respondents were interviewed who

has used at least one of the FMCG Herbal products.

SAMPLE SIZE

We collected responses from 200 respondents from two different districts (Kapurthala & Jalandhar) out of 22

districts of Punjab.

SAMPLING TECHIQUE

Convenience sampling techniques is used to collect data of consumer




TOOLS AND TECHNIQUES FOR DATA ANALYSIS

Factor analysis was applied using SPSS also ranking method was done using Ms. Excel

FINDINGS AND INTERPRETATION

The data was collected from 200 respondents from Jalandhar city. The demographic and socio-economic details are

mentioned below.

AGE

According to our statistical analysis this chart shows that out of 200 responses 68% of people are having age

between 18 to 25 years, 28% are having age between 25 to 35 years and 4 % are having age of 35 to 45 years.

GENDER




Out of the 200 respondents 70% were men and 30% were women are giving their valuable opinions for this study.

According to data we have collected 71% of the total population is postgraduate, 15% are graduate, 9% are

undergraduate and 5% are having other educational status.

According to our statistical analysis it stated that 62% of all population is student, 28 % are employed, 6% are self-

employed and 4% are having other occupation.

INCOME

This chat shows that out of total responses 68% are having income less than 15 thousand, 13% are having income

“between” 15K-25K, 5% people those who are having income between 25K-35K and 14% of population those who

are having income of more than 35 thousand.




RELIABILITY STATISTICS

Reliability was checked through Cronbach’s Alpha test to find out the instruments or variables that we are

using in the study are reliable or not. According to marketing research by Malhotra and Dash, if the the

output is more than 0.7 it means data is reliable. Cronbach Alpha is checked for all the variables and we

have taken 80 respondents. In our case value of Cronbach’s Alpha is 0.927 so, those instruments and

variables we are using is reliable for the study.

KMO AND BARTLETT'S TEST

Kaiser-Meyer-Olkin is a technique to measure sampling adequacy and it is an index used to measure the

appropriateness of factor analysis. If the value of KMO is less than 0.5 it implies factor analysis may not

appropriate. High value like 0.5-1 indicates the appropriate factor analysis. In our case value of KMO is

0.904 it means data is suitable for factor analysis.

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy.

.904

Bartlett's Test of

Sphericity

Approx. Chi-Square 1.763E3

Df 91

Sig. .000




ROTATED COMPONENT MATRIX

Rotate Factors means it is an output from factor analysis and that analysis is known as factor matrix. This

matrix contains the entire coefficient that we are used to express the standardized the variables in terms of

factors. These coefficients are reflecting the correlation between the factors.

According to this matrix we got three factors with the help of 14 variables. So, these are the following

three factors:

1. Post Purchase satisfaction

2. Natural and healthy products

3. Price

Factor one has high coefficient for variables (6, 7, 8, 10, 11, 12, 14) the value of these variables is more

than 0.5. So, we can say that these variables are reflecting clear image about the factor that is Post

Purchase Satisfaction and the second factor according to our factor matrix that is Natural and Healthy

Products that factor is also having high coefficient for variables (1, 2, 3, 5, 9 &13) and these variable are

reflecting the correlation with the factor and these variables are also giving the complete explanation of the

factor.

And according to factor matrix our last factor is Price and its variable (4) of coefficient is also reflecting

the positive value, so that variable we choose is completely related with factor.

Components

1 2 3




1. Patanjali

products has no

side effects on

health

.577 .607

2. Health claims

made by the

Patanjali for

their FMCG

Products

.776

3. Patanjali

products are

safer to use and

easy to use.

.831

4. Patanjali

products are

more expensive

.903

5. Variety

available in the

Patanjali

Products is more

than other's

.720

6. I do not consider

looking at other

brand Patanjali

is good enough

.748

7. I usually

recommend

Patanjali

product to my

friends and

relatives

.682




EXPL

ANA

TION

OF

FACT

ORS

1. P

O

S

T

P

U

R

C

H

A

S

E

S

A

T

I

S

F

ACTION

Value means when we get something above expectation.

According to factor analysis, we find that consumers are extremely satisfied and they are getting value for the

product with Patanjali’s products and they do not consider other products and in terms of availability Patanjali

products are easily available on every retail channel so, they can easily buy the products.

As I strongly believe that when we are satisfied with any product in that case, we usually recommend that product to

our friends or relatives, which may lead to more customers for the company.

8. I believe that the

Patanjali

product are

readily available

.611

9. I believe that

being Indians

we should buy

swadeshi

products

.582

10. Rise of Price .594 .559

11. Taste of

Patanjali

Product

.688

12. Ramdev as a

brand

ambassador

.733

13. I believe that

Patanjali

products give

more value for

money that

other brands

.702

14. Switch to other

brand in case of

non-availability

.814




If a customer is emotionally attached with you brand that reflect the best experience with your brand, best

experience may be in terms of taste and be Baba Ramdev he is brand ambassador of the Patanjali. I already

discussed in the literature review according to Maheshwari (2014) he stated that loyal consumers are the emotional

creature and they can make good relation with the brand because they are emotionally linked with the brand. So,

price and other alternatives do not affect the said relation.

2. NATURAL & HEALTHY INGREDIENTS

Now a day’s customers are more health conscious on the basis of factor analysis we trying to find is natural and

healthy ingredients impacts on consumer behavior or not? According to factor analysis we found that consumer of

Patanjali are having good experience. Patanjali products are safer to use and health claims made by the company it

is true. We already discussed in literature review according to Datta (2015) consumers of this era have become

more conscious about their health and also having a strong will to maintain the quality of life which is reflected

through the consumption of those Patanjali products that protects the state of their health. In terms of taste, Patanjali

product is good and that leads to more satisfaction. In terms of healthy lifestyle, Indian people have become more

attracted towards Ayurveda or Herbal therapy and they are choosing other natural healthcare variants for a natural

cure.

Apart from that consumers are also having beliefs we should by Indian products and Patanjali is also pitching their

products like that only which may lead to the more customers. And India is known for their traditional medications.

So, Patanjali is able to get the attention of the consumers because they are making their products with the help of

natural ingredients. After consuming Patanjali’s product consumers are having belief no other FMCG company is

providing natural products. It also reflects the good positioning of Patanjali products.

3. PRICE

As we already discussed about the price factor. According to current scenario customers are not switching from

Patanjali to other brands because they are getting the value from the products. But Patanjali should consider the

Price factor because, nowadays every company is coming up with their range of natural products and that makes

market highly competitive. So, some of the consumers are having perception Patanjali products are costlier as

compare to other natural product, company should take care of this factor just because of that price issue they may

loss the customers.




RANKING METHOD

To determine the variables which helps in forming a purchase intent and consequently in brand loyalty we have

used the ranking method.

Particulars Total Score Mean Score Ranking

Patanjali products has no side effects on health 723 3.615 1

health claims made by the Patanjali for their FMCG

Products 677 3.385 3

Patanjali products are safer to use and easy to use 683 3.415 2

Patanjali products are more expensive 496 2.48 14

Variety available in the Patanjali Products is more

than other's 575 2.875 12

I do not consider looking at other brand Patanjali is

good enough 560 2.8 13

I usually recommend Patanjali product to my

friends and relatives 606 3.03 9

I believe that the Patanjali product are readily

available 667 3.335 4

I believe that being Indians we should buy swadeshi

products 640 3.2 6

Rise of FMCG Product you will continue to use or

not 605 3.025 10

Taste of Patanjali edible Product are good enough 619 3.095 8

Baba Ramdev a brand ambassador influences your

buying decision 636 3.18 7

I believe that Patanjali products give more value for

money that other brands 647 3.235 5

Non availability of Patanjali product 579 2.895 11




Total 8713

INTERPRETATION

After applying a ranking method, we found that most important variables which affects the purchase intention and

brand loyalty are the natural and healthy range of Patanjali products. Apart from that next important concern is the

availability of the product.

RECOMMENDATIONS

Patanjali is having good products but, not in every category. They are having good market share in dental

care and hair care; they should improve the quality of rest other products.

Edible products are not that much good in taste. So, company should be taken that in consideration.

They are increasing their price and it’s creating a competitive environment in market. So, due to that they

may lose the existing customers.




On the basis of secondary analysis and customers reviews, we found that they are doing some unethical

practice to promote their product. That may affect the brand image of the company. Company should avoid

these kinds of activities.

CONCLUSION

Based on the findings, we are able to identify that Patanjali products are carrying good brand image due to post

purchase satisfaction, natural and healthy ingredients, value for money products which further leads to brand loyalty

for Patanjali products and also reflect the emotional attachment with the brand.

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