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CopyrightIJIFR 2017

International Journal of Informative & Futuristic Research ISSN: 2347-1697

Volume 4 Issue 5 January 2017 www.ijifr.com

Abstract

With trade analysts ruling out Patanjali just as a fad, many of the big player FMCG companies are discussing the strong Patanjali brand in their board rooms. Patanjali is also being called the Indian Body Shop. We try to understand the buying behaviour of the consumers of Patanjali and also the most beneficial product mix of Patanjali and areas of opportunity for them through questionnaire and interviews. It is worth to know whether Patanjali can increase their market share, penetration and sales by deploying their resources to the popular products and leverage the most influential factor of customers buying decision for their growth. Through this we would also see whether Patanjali increasing their modes of supply chain has solved their problem of shortage of goods. This will help us understand the impact of Patanjali products on the FMCG business previously dominated by big shot companies like HUL, P&G and Nestle.

I. INTRODUCTION

Patanjali has grown from strength to strength and is giving big player FMCG companies a

run for their money. With recording net sales worth Rs. 2000 crores last year and targeting a

The Impact of Patanjali Products on the

FMCG Business Hither to Dominated by

Multi-Nationals like Hul, P&G, Nestle etc. Paper ID IJIFR/V4/ E5/ 061 Page No. 6361-6382 Subject Area

Management

Studies

Key Words

Fast Moving Consumer Goods, Non-Probability Convenience Sampling

Procedure, Advertisements, Quality, Baba Ramdev's Spirituality, Indigenous

Manufacturing, Ayurvedic Experience Patanjali Products, Kaiser-Meyer-

Olkin Measure, Bartlett's Test of Sphericity

1st Dr. Anuja Agarwal

Associate Dean,

Mukesh Patel School of Technology, Management

and Engineering , SVKMs NMIMS University Mumbai-Maharashtra

2nd Sakshi Gupta MBA Tech. Student

Mukesh Patel School of Technology, Management

and Engineering , SVKMs NMIMS University Mumbai-Maharashtra

3rd Srashti Gupta

4th Vinayak Nautiyal

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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 its 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 wont 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 Ramdevs 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

FMCGs. Hence to study the growing market of Patanjali our aim is to determine what

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factors are responsible for giving Patanjali a head over others FMCGs. 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 Patanjalis products and why large based customers are switching from multi nationals like HUL to Patanjalis 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 Ramdevs Patanjali is setting trend for HUL and how Baba Ramdevs 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 Patanjalis products a competitive

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advantage but distribution and stock outs remain a key factor. Patanjali Ayurved is

one of the Indias largest food and herbal parks in the world equipped with an excellent R&D facility and worldclass manufacturing machinery. Patanjali has completed its revenue target of INR 2000 crores in FY15 and now the management

has set a revenue target of INR 5000 crores in FY16. The company has low A&P

spends which leverages Baba Ramdevs brand pull, leads to provide its customers a discount of 1530% to competition, while other companies have A&P spends ranging from 1218%, as a % of sales. Even though the companys thrust is not on profitability, the company managed to regulate 20% EBITDA margin in FY15,

supported by better cost management which includes latest machinery and strong

R&D capabilities and lower A&P spends. Patanjali registered revenue CAGR of

64.7% over FY1215. Vyas (2015) believes Patanjali instead of outsourcing like established, listed FMCG

firms, it has flourished on a backward integration model, using large tracts of land to

cultivate and run its factories. Patanjali's revenues have more than quadrupled in the

past three years. Despite undercutting competitors, PAL's operating margin is around

20% higher than many of its peers which advertise aggressively. According to Pittie (2015), Patanjali is not just targeting its own distribution

Chikitsalayas, but also big retailers like Reliance Retail, Big Bazaar, Hyper City and

Star Bazaar are stocking Ramdev's FMCG products. But the real play is online.

While Patanjali's products are already available at e-commerce site BigBasket,

Ramdev is now aiming for Amazon too.To allow the consumers to locate nearby

outlets that are selling Patanjali products and also to facilitate online ordering of

products, Patanjali has launched its mobile app. Patanjali also sells its products

through the Patanjali Arogya Kendras, Swadeshi Kendras and Patanjali

Chikitsalayas. The company has 10,000 franchisee model of Chikitshalyas and

Arogya Kendras and around 2 lakh outlets that are selling Patanjali products. The

company operates through 100 super distributors.

Kumar (2014) reports that the Patanjali Mega Food Park (PMFP) has been envisaged to help in creation of infrastructure for food processing and a farm-to-plate supply chain system. It helps in maximum value addition by backward and forward

integration between the farmers, factory and the market. The supply chain doesnt have any intermediary in between but rather its a direct from supplier to producer to consumer. This also helps in reducing the cost because it avoids the unnecessary

commission cost and other related charges of the intermediaries.

Trend of Patanjali products: Singh and Rajni (2015) reports that PAL perhaps lacks most ingredients for building a large-scale consumer goods business, be its

negligible A&P (advertising & promotion) spends or distribution network. Yet, the

brand power of a yoga guru has brought PAL into the top league with topline

reportedly in excess of Jyothy Labs and Emami.

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Rani & Shukla (2012) analysed the trends of Patanjali products that have increased from 2008 to 2011.The Patanjali Ayurvedic Kendra in Pantnagar was started with 26

Patanjali products. These 26 products includes 13 products in medicinal, 9 products

in food and 4 products in cosmetic category. In 2008 total 63 products were

available at Patanjali Ayurvedic Kendra out of which 34 were medicinal, 22 were

food and 7 were cosmetic products followed with an addition of 22 products during

2009. Till 2012 there were 120 products available among which 44 are medicinal, 34

are food and 55 are cosmetic which says an increase of total 94 products in just 4

years.

Drawbacks of Patanjalis growth: A number of limitations perceived by customers, associated with products acted as barriers in consumer decision making process and

also affected consumer behaviour. Data showed that the problem of shortage of

products on retail outlet as the major limitation as reported by the majority of

respondents (88.88%). Only one retail outlet in Pantnagar market was another

limitation and reported by 63.33 percent respondents. No home delivery (43.33%)

and no any other alternative (36.66%) were also an issue till 2012.Consumers of

Patanjali products also suggested to improve consumer acceptability (51.11%).

Consumers suggested that Patanjali should provide the detailed information about

eve-products. 48.88% suggested improving the delivery system. About 44%

consumers suggested maintaining the regular delivery of products. More

advertisement (41.11%) and clarity in advertisement (37.77%) regarding the product

attributes were other suggestions given by the consumers. It was suggested by 30%

consumers that Patanjali should pack the products especially juice in small amount

in order to improve consumer acceptability. Easy availability of products at retail

shops by 28.88% consumers whereas 21.11% consumers suggested reducing the cost

of some cosmetic products like cream, cleanser, etc. There were 18-19% respondents

who suggested to increase production of products.

Khasgiwala and Bapat (2014) believe that despite of the great demand of Patanjali products, the company is still inefficient in its production and supply chain

management. They address the case of retail store owner of Patanjali Ayurveda in

Indore who himself is a highly satisfied consumer of Patanjali products that are low

priced with reasonably good quality. And more so the product becomes value rich

because they carry the name of Baba Ramdev on it but is frustrated with the

availability of these products for other consumers as well.

Patanjalis products have captured a huge lot of consumers within a short span of time providing its loyal customers with exclusive quality and reduced price products.

It has grown during these years with its excellent R&D facility, latest machinery,

better cost management and high tech infrastructure by constructing Indias largest Food and Herbal Park. It has also established its market online giving a stiff

competition to other FMCG companies. The trend of Patanjali products have

increased tremendously with few limitations of non-availability of products at retail

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stores, less number of retail outlets available and its irregular delivery system.

Despite of its great demand, company is still inefficient in its production and supply

chain management. The company is working on plugging the gaps in the supply

chain and distribution and plans to implement ERP for better inventory management

and consolidate its online presence. The company has worked on its objective of

empowering farmers economically. In upcoming years, due to its herbal base

products company might also leverage some tax exclusion under government

policies leading to increase in its profits and decreased prices of product. The main

marketing tool of the company is its good image after spirituality and is selling its

products under the name of Swami Ramdev. Since Patanjali has its production in-

house, it gives it a competitive advantage over MNCs like HUL, P&G, NESTLE etc.

III. RESEARCH METHODOLOGY

3.1 Description of Research Design and Procedures Used

This is a descriptive and causal research of quantitative nature under which

questionnaire study will be carried out. Also a descriptive qualitative research under

which an interview will be carried out is also a part of our design. An ethnographic

study will also be carried out in supermarkets to observe the nature of the buying

behaviour of the consumers.

3.2 Sources of Data

Participants in this study will include Patanjali consumers (a minimum of 30 participants of two age groups, i.e., 20-34 and 35-60 each and two gender, i.e., male

and female) who will be given a questionnaire. The participants will be selected by

giving it to family members, close friends and relatives. The sampling method to be

used is non probability convenience sampling to select participants. The elements

that will be characteristic of the sample will be sex, age, region and number of

family members. An effort will be made to collect data proportionately from male

and female sex, the age groups and the region. Also, shopkeepers of two Patanjali

Shops and some general stores will be interviewed. The two Patanjali shops are:

PatanjaliAarogya Kendra, Manoj Villa, Station Road, Vile Parle West, Mumbai 400056

PatanjaliChikitsalya, 241, Chandra Mahal Building, Princess Street, Mumbai 400002

3.3 Sampling Procedures

A non-probability convenience sampling procedure will be used.

3.4 Methods and Instuments of Data Gathering

Instrument #1 Questionnaire - Materials included is a questionnaire which include 14 questions which is given in the appendix A. The survey will measure the various

independent variables using Likert scale and after primary data collection the data

will be analysed using factor analysis with the help of SPSS. Also the distribution

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network most preferred by consumers and products which consumers hope Patanjali

should manufacture but is not in their product mix are asked. Even the buying

frequency and how consumers stumbled upon Patanjali will be asked besides the

usual demographic data.

Instrument #2 Interview The interview questions for the shopkeepers are included in the appendix B. For the interview part, shopkeepers of Patanjali shops will be

asked their products which are the most selling and also in shortage, the products

which are lying in the inventory and have low sales volume and lastly the products

which consumers enquire about but Patanjali doesnt manufacture. Instrument #3 Observation The buying behaviour of the consumers in

supermarkets and the interne will be observed under the ethnographic study to know

which products the consumers buy the most.

A questionnaire will be given to Patanjali consumers to know why they prefer Patanjali over other brands such as HUL, P&G and Nestle and the factors which are

most influencing. A personal interview with Patanjali shopkeepers will be conducted

about the FMCG products which are so much in demand that there is shortage for

them, products which are not sold much and lead to too much inventory in the

shelves and products about which customers inquire but Patanjali doesnt manufacture so that it gives them an opportunity in the various categories of

nutrition and supplements, grocery, home care, personal care and health care and if

possible the quantitative data to support these answers will be noted. For e-

commerce websites like Big Basket, Relaince Fresh Direct, ZopNow and Grofers,

we will try to find the popular products and the shortage products and try to validate

it with our previous data. A similar personal interview can be conducted for general

stores. In supermarkets like Big Bazaar, Relaince Retail, D Mart, Spencers Retail and HyperCITY we can collect data by mere observation about the products which

consumers buy.

3.5 Methods of Data Analysis

The methods of data analysis we are going to use are ANOVA, factor analysis and

correlation analysis using SPSS.

IV. ANALYSIS AND RESULTS

Gender, age and number of family members might have a relationship with various

perceptions. An analysis of variance (ANOVA) tested the perception level of people on

various factors by gender (female, male), age (20-34, 35-60) and number of family members

(1-5, 6-10) each independently. We used a level of significance of 0.05 for all statistical

tests.

Gender, age and number of family members might have a relationship with the

quality perception. People with different age showed a relationship with the quality

perception (F (1, 91) = 6.790, p = 0.011). Older people (n = 34, M = 4.000, SD = 0.7385)

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think more that the quality of Patanjali products is better than other brands than younger

people (n = 59, M = 3.492, SD = 0.9891).

Gender, age and number of family members might have a relationship with Baba

Ramdevs spirituality perception. People with different age showed a relationship with Baba Ramdevs spirituality perception (F (1, 91) = 6.790, p = 0.000).Older people (n = 34, M = 3.412, SD = 1.2090) believe more that Baba Ramdevs spirituality attracts them towards Patanjali products than younger people (n = 59, M = 2.237, SD = 1.0058).

Gender, age and number of family members might have a relationship with

indigenous manufacturing perception. People with different age showed a relationship with

indigenous manufacturing perception (F (1, 91) = 15.982, p = 0.000).Older people (n = 34,

M = 4.324, SD = 0.8061) think indigenous manufacturing influences them to buy Patanjali

products more than younger people (n = 59, M = 3.458, SD = 1.1036).


ayurvedic perception. People with different gender showed a relationship with the ayurvedic

perception (F (1, 91) = 4.484, p = 0.037). Female (n = 47, M = 4.085, SD = 0.8554) think

that the ayurvedic properties of Patanjali products influences them to use it more than male

(n = 46, M = 3.674, SD = 1.0122).


experience perception. People with different age showed a relationship with the experience

perception (F (1, 91) = 10.122, p = 0.002). Older people (n = 34, M = 4.235, SD = 0.6060)

think that their overall experience with the products of Patanjali is better than younger

people (n = 59, M = 3.695, SD = 0.8760).

Oneway

Gender

0.0 = Female

1.0 = Male

Table 1: Descriptives

N Mean

Std.

Deviation

Std.

Error

95%

Confidence

Interval for

Mean

Minimum Maximum

Lower

Bound

Upper

Bound

Price .0 47 3.574 .8532 .1245 3.324 3.825 2.0 5.0

1.0 46 3.500 .9832 .1450 3.208 3.792 1.0 5.0

Total 93 3.538 .9156 .0949 3.349 3.726 1.0 5.0

Advertisements .0 47 3.383 1.0540 .1537 3.073 3.692 1.0 5.0

1.0 46 2.935 1.1624 .1714 2.590 3.280 1.0 5.0

Total 93 3.161 1.1257 .1167 2.929 3.393 1.0 5.0

Quality .0 47 3.787 .8324 .1214 3.543 4.032 1.0 5.0

1.0 46 3.565 1.0253 .1512 3.261 3.870 1.0 5.0

Total 93 3.677 .9344 .0969 3.485 3.870 1.0 5.0

Baba Ramdev's

spirituality

.0 47 2.745 1.2763 .1862 2.370 3.119 1.0 5.0

1.0 46 2.587 1.1657 .1719 2.241 2.933 1.0 5.0

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Total 93 2.667 1.2188 .1264 2.416 2.918 1.0 5.0

Indigenous

manufacturing

.0 47 3.766 1.0470 .1527 3.459 4.073 1.0 5.0

1.0 46 3.783 1.1336 .1671 3.446 4.119 1.0 5.0

Total 93 3.774 1.0848 .1125 3.551 3.998 1.0 5.0

Ayurvedic .0 47 4.085 .8554 .1248 3.834 4.336 1.0 5.0

1.0 46 3.674 1.0122 .1492 3.373 3.975 1.0 5.0

Total 93 3.882 .9538 .0989 3.685 4.078 1.0 5.0

Available .0 47 3.191 1.0558 .1540 2.881 3.501 1.0 5.0

1.0 46 3.239 .9703 .1431 2.951 3.527 1.0 5.0

Total 93 3.215 1.0092 .1046 3.007 3.423 1.0 5.0

Recommendations .0 47 3.702 1.0615 .1548 3.390 4.014 1.0 5.0

1.0 46 3.674 .9441 .1392 3.394 3.954 1.0 5.0

Total 93 3.688 .9998 .1037 3.482 3.894 1.0 5.0

Experience .0 47 3.936 .7634 .1114 3.712 4.160 1.0 5.0

1.0 46 3.848 .8936 .1318 3.582 4.113 1.0 5.0

Total 93 3.892 .8270 .0858 3.722 4.063 1.0 5.0

Table 2: ANOVA

Sum of Squares df Mean Square F Sig.

Price Between Groups .129 1 .129 .152 .697

Within Groups 76.989 91 .846

Total 77.118 92

Advertisements Between Groups 4.670 1 4.670 3.797 .054

Within Groups 111.911 91 1.230

Total 116.581 92

Quality Between Groups 1.146 1 1.146 1.317 .254


Total 80.323 92

Baba Ramdev's spirituality Between Groups .578 1 .578 .387 .536


Total 136.667 92

Indigenous manufacturing Between Groups .006 1 .006 .005 .941


Total 108.258 92

Ayurvedic Between Groups 3.931 1 3.931 4.484 .037


Total 83.699 92

Available Between Groups .053 1 .053 .051 .821


Total 93.699 92

Recommendations Between Groups .019 1 .019 .018 .893


Total 91.957 92

Experience Between Groups .181 1 .181 .263 .609


Total 62.925 92

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Oneway

Age

0.0 = 20 - 34

1.0 = 35-60


N Mean

Std.

Deviation

Std.

Error

95%

Confidence

Interval for

Mean

Minimum Maximum

Lower

Bound

Upper

Bound

Price .0 59 3.492 .9168 .1194 3.253 3.730 1.0 5.0

1.0 34 3.618 .9216 .1581 3.296 3.939 1.0 5.0

Total 93 3.538 .9156 .0949 3.349 3.726 1.0 5.0

Advertisements .0 59 3.068 1.0965 .1427 2.782 3.354 1.0 5.0

1.0 34 3.324 1.1735 .2012 2.914 3.733 1.0 5.0

Total 93 3.161 1.1257 .1167 2.929 3.393 1.0 5.0

Quality .0 59 3.492 .9891 .1288 3.234 3.749 1.0 5.0

1.0 34 4.000 .7385 .1267 3.742 4.258 1.0 5.0

Total 93 3.677 .9344 .0969 3.485 3.870 1.0 5.0

Baba Ramdev's

spirituality

.0 59 2.237 1.0058 .1309 1.975 2.499 1.0 5.0

1.0 34 3.412 1.2090 .2073 2.990 3.834 1.0 5.0

Total 93 2.667 1.2188 .1264 2.416 2.918 1.0 5.0

Indigenous

manufacturing

.0 59 3.458 1.1036 .1437 3.170 3.745 1.0 5.0

1.0 34 4.324 .8061 .1382 4.042 4.605 2.0 5.0

Total 93 3.774 1.0848 .1125 3.551 3.998 1.0 5.0

Ayurvedic .0 59 3.746 .9209 .1199 3.506 3.986 1.0 5.0

1.0 34 4.118 .9775 .1676 3.777 4.459 1.0 5.0

Total 93 3.882 .9538 .0989 3.685 4.078 1.0 5.0

Available .0 59 3.322 .9727 .1266 3.069 3.576 1.0 5.0

1.0 34 3.029 1.0585 .1815 2.660 3.399 1.0 5.0

Total 93 3.215 1.0092 .1046 3.007 3.423 1.0 5.0

Recommendations .0 59 3.695 .9871 .1285 3.438 3.952 1.0 5.0

1.0 34 3.676 1.0363 .1777 3.315 4.038 1.0 5.0

Total 93 3.688 .9998 .1037 3.482 3.894 1.0 5.0

Experience .0 59 3.695 .8760 .1140 3.467 3.923 1.0 5.0

1.0 34 4.235 .6060 .1039 4.024 4.447 3.0 5.0

Total 93 3.892 .8270 .0858 3.722 4.063 1.0 5.0

Table 4: ANOVA

Sum of

Squares Df

Mean

Square F Sig.

Price Between Groups .343 1 .343 .407 .525


Total 77.118 92

Advertisements Between Groups 1.411 1 1.411 1.115 .294

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Total 116.581 92

Quality Between Groups 5.577 1 5.577 6.790 .011


Total 80.323 92

Baba Ramdev's

spirituality

Between Groups 29.753 1 29.753 25.325 .000


Total 136.667 92

Indigenous

manufacturing

Between Groups 16.173 1 16.173 15.982 .000


Total 108.258 92

Ayurvedic Between Groups 2.983 1 2.983 3.363 .070


Total 83.699 92

Available Between Groups 1.847 1 1.847 1.830 .179


Total 93.699 92

Recommendations Between Groups .007 1 .007 .007 .932


Total 91.957 92

Experience Between Groups 6.299 1 6.299 10.122 .002


Total 62.925 92

Oneway

Number of family members

0.0 = 1 - 5

1.0 = 6 - 10


N Mean

Std.

Deviation

Std.

Error

95%

Confidence

Interval for

Mean

Minimum Maximum

Lower

Bound

Upper

Bound

Price .0 75 3.533 .9054 .1046 3.325 3.742 1.0 5.0

1.0 18 3.556 .9835 .2318 3.066 4.045 2.0 5.0

Total 93 3.538 .9156 .0949 3.349 3.726 1.0 5.0

Advertisements .0 75 3.187 1.0867 .1255 2.937 3.437 1.0 5.0

1.0 18 3.056 1.3048 .3076 2.407 3.704 1.0 5.0

Total 93 3.161 1.1257 .1167 2.929 3.393 1.0 5.0

Quality .0 75 3.680 .9886 .1142 3.453 3.907 1.0 5.0

1.0 18 3.667 .6860 .1617 3.326 4.008 3.0 5.0

Total 93 3.677 .9344 .0969 3.485 3.870 1.0 5.0

Baba Ramdev's

spirituality

.0 75 2.693 1.2837 .1482 2.398 2.989 1.0 5.0

1.0 18 2.556 .9218 .2173 2.097 3.014 1.0 4.0

Total 93 2.667 1.2188 .1264 2.416 2.918 1.0 5.0

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Indigenous

manufacturing

.0 75 3.800 1.1271 .1301 3.541 4.059 1.0 5.0

1.0 18 3.667 .9075 .2139 3.215 4.118 2.0 5.0

Total 93 3.774 1.0848 .1125 3.551 3.998 1.0 5.0

Ayurvedic .0 75 3.893 1.0077 .1164 3.661 4.125 1.0 5.0

1.0 18 3.833 .7071 .1667 3.482 4.185 2.0 5.0

Total 93 3.882 .9538 .0989 3.685 4.078 1.0 5.0

Available .0 75 3.160 1.0140 .1171 2.927 3.393 1.0 5.0

1.0 18 3.444 .9835 .2318 2.955 3.934 2.0 5.0

Total 93 3.215 1.0092 .1046 3.007 3.423 1.0 5.0

Recommendations .0 75 3.653 1.0590 .1223 3.410 3.897 1.0 5.0

1.0 18 3.833 .7071 .1667 3.482 4.185 2.0 5.0

Total 93 3.688 .9998 .1037 3.482 3.894 1.0 5.0

Experience .0 75 3.893 .8314 .0960 3.702 4.085 1.0 5.0

1.0 18 3.889 .8324 .1962 3.475 4.303 3.0 5.0

Total 93 3.892 .8270 .0858 3.722 4.063 1.0 5.0

Table 6: ANOVA

Sum of

Squares Df

Mean

Square F Sig.

Price Between

Groups .007 1 .007 .008 .927


Total 77.118 92

Advertisements Between

Groups .250 1 .250 .195 .660


Total 116.581 92

Quality Between

Groups .003 1 .003 .003 .957


Total 80.323 92

Baba Ramdev's

spirituality

Between

Groups .276 1 .276 .184 .669


Total 136.667 92

Indigenous

manufacturing

Between

Groups .258 1 .258 .217 .642


Total 108.258 92

Ayurvedic Between

Groups .052 1 .052 .057 .812


Total 83.699 92

Available Between

Groups 1.174 1 1.174 1.155 .285


Total 93.699 92

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Recommendations Between

Groups .470 1 .470 .468 .496


Total 91.957 92

Experience Between

Groups .000 1 .000 .000 .984


Total 62.925 92

Factor Analysis is used to explore the factors that affect the consumers of Patanjali. The

descriptive statistics of the factor responses are measured.

Table 7: Descriptive Statistics

Mean Std. Deviation Analysis N

Price 3.538 .9156 93

Advertisements 3.161 1.1257 93

Quality 3.677 .9344 93

Baba Ramdev's spirituality 2.667 1.2188 93

Indigenous manufacturing 3.774 1.0848 93

Ayurvedic 3.882 .9538 93

Availability 3.215 1.0092 93

Recommendations 3.688 .9998 93

Experience 3.892 .8270 93

Kaiser-Meyer-Olkin Measure of Sampling Adequacy - This measure varies between 0 and

1. A value of 0.6 is a suggested minimum. The KMO measure for our analysis is 0.633 and

shows that the numbers of samples we have taken are adequate.

Bartlett's Test of Sphericity - This tests the null hypothesis that the correlation matrix is an

identity matrix. The measure should be less than 0.05. The significance value of our

Bartletts Test is 0.00. Hence the null hypothesis is rejected and a relationship exists between the factors.

Table 8: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .633

Bartlett's Test of Sphericity Approx. Chi-Square 164.783

Df 36

Sig. .000

Taken together, these tests provide a minimum standard which should be passed before a

factor analysis (or a principal components analysis) should be conducted. In our analysis we

have taken 9 variables, so we have 9 factors. We look only for the components that have

eigenvalues of 1 or more. So we determine how many components meet this criterion. The

initial eigenvalues for each component are listed in the 1stcolumn. Only the components 1, 2

and 3 have eigenvalues more than 1. So we can look at the percentage of variance that each

component explains. Component 1 has 30.231% variance, Component 2 has 16.262%

variance and Component 3 has 12.665% variance which gives us a cumulative variance of

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59.158% explained by these three components. So these three components have major

variance within this set of data.

Table 9: Total Variance Explained

Component

Initial Eigenvalues

Extraction Sums of Squared

Loadings

Rotation Sums of Squared

Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

1 2.721 30.231 30.231 2.721 30.231 30.231 2.051 22.784 22.784

2 1.464 16.262 46.493 1.464 16.262 46.493 1.770 19.666 42.450

3 1.140 12.665 59.158 1.140 12.665 59.158 1.504 16.708 59.158

4 .942 10.472 69.630

5 .783 8.699 78.329

6 .641 7.117 85.446

7 .580 6.450 91.895

8 .460 5.113 97.009

9 .269 2.991 100.000

Extraction Method: Principal Component Analysis.

The scree plot graphs the eigenvalue against the component number. We look for a change

for an elbow in the line. The only components above this break for elbow are retained. The

elbow breaks at component 3. So this explains that component 1, 2 and 3 captures much

more variance than any other component, while other successive components are accounting

for smaller and smaller amounts of the total variance. So we can suggest retaining only

component 1, 2 and 3. A plot of the eigenvalues is provided below.

Figure 1: Screen Plot

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The three components tell us about the major factors which should be considered first when

understanding the consumers of Patanjali products. In component 1, the most important

factor is advertisements whose value is 0.783. It means around 63 % variance in component

1 is explained by advertisements. It is followed by quality, experience and price showing

strong coefficients. This means that the 1st component is Value Communication. In

component 2 we have recommendations and ayurvedic as the important factors. Hence we

call this factor Word of Mouth because we know that people give recommendations about

ayurvedic products. In component 3 we have Baba Ramdevs spirituality and indigenous manufacturing. We can call this Baba Ramdevs indigenous factor as we can see Baba Ramdev promoting the swadeshi concept and hence people are getting attracted towards

Patanjali.

Table 10: Rotated Component Matrixa

Component

1 2 3

Advertisements .738 -.113 .033

Quality .711 .353 .134

Experience .680 .473 .121

Price .619 -.041 -.125

Recommendations -.090 .783 -.078

Ayurvedic .341 .646 .145

Indigenous manufacturing .144 .244 .790

Baba Ramdev's

spirituality -.026 .479 .527

Availability .093 .295 -.725

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 5 iterations.

For correlation analysis, it is a thumb rule that if the value of p is less than 0.05 then the

correlation is considered to be significant. The values of Pearson coefficient is from -1 to

1.The closer the value is to -1 to +1, the stronger the association is between the variables. In

this case, we have a positive correlation between quality and price with the value of p =

0.006 and r = 0.281 which means that there is a weak correlation, indicating the increase of

price would lead to a slight increase in quality.

Table 11 : Correlations

Price Quality

Price Pearson Correlation 1 .281**

Sig. (2-tailed) .006

N 93 93

Quality Pearson Correlation .281**

1


N 93 93

**. Correlation is significant at the 0.01 level (2-tailed).

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We have a positive correlation between quality and indigenous manufacturing with the

value of p = 0.009 and r = 0.271 which means that there is a weak correlation, indicating the

increase of indigenous manufacturing would lead to a slight increase in quality.


Quality

Indigenous

Manufacturing

Quality Pearson Correlation 1 .271**


N 93 93

Indigenous manufacturing Pearson Correlation .271**

1


N 93 93


We have a positive correlation between indigenous manufacturing and Baba Ramdev's

spirituality with the value of p = 0.000 and r = 0.378 which means that they are moderately

correlated, indicating the increase of Baba Ramdev's spirituality would lead to a moderate

increase in the indigenous manufacturing.


Indigenous

manufacturing

Baba Ramdev's

spirituality

Indigenous manufacturing Pearson Correlation 1 .378**


N 93 93

Baba Ramdev's spirituality Pearson Correlation .378**

1


N 93 93


We have a positive correlation between Ayurvedic products and quality with the value of p

= 0.000 and r = 0.445 which means that they are moderately correlated, indicating the

increase of Ayurvedic manufacturing would lead to a moderate increase in quality.


Ayurvedic Quality

Ayurvedic Pearson Correlation 1 .445**


N 93 93

Quality Pearson Correlation .445**

1


N 93 93


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We have a positive correlation between Ayurvedic manufacturing and Baba Ramdev's

spirituality with the value of p = 0.010 and r = 0.265 which means that there is a weak

correlation, indicating the increase of Baba Ramdev promoting the use of ayurvedic

products would lead to a slight increase in Ayurvedic manufacturing.


Ayurvedic Baba Ramdev's spirituality

Ayurvedic Pearson Correlation 1 .265*


N 93 93

Baba Ramdev's spirituality Pearson Correlation .265* 1


N 93 93

*. Correlation is significant at the 0.05 level (2-tailed).

We have a positive correlation between indigenous manufacturing and Ayurvedic products

with the value of p = 0.002 and r = 0.321 which means that there is a moderate correlation,

indicating the increase of indigenous manufacturing would lead to a moderate increase in

usage of Ayurvedic products by the consumers.


Indigenous manufacturing Ayurvedic

Indigenous manufacturing Pearson Correlation 1 .321**


N 93 93

Ayurvedic Pearson Correlation .321**

1


N 93 93


We have a negative correlation between Indigenous manufacturing and availability with the

value of p = 0.004 and r = -0.293 which means that there is a weak correlation, indicating

Indigenous manufacturing would lead to a decrease in availability. As we can see large

companies like HUL, P&G outsource their manufacturing activities and only concentrate on

marketing activities. Hence, they do not have any availability issues in the market.


Indigenous

manufacturing Available

Indigenous manufacturing Pearson Correlation 1 -.293**


N 93 93

Availability Pearson Correlation -.293**

1


N 93 93


We have a positive correlation between recommendations and Ayurvedic manufacturing

with the value of p = 0.002 and r = 0.314 which means that they are moderately correlated,

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indicating the increase of word of mouth would lead to a moderate increase in Ayurvedic

manufacturing.


Recommendations Ayurvedic

Recommendations Pearson Correlation 1 .314**


N 93 93

Ayurvedic Pearson Correlation .314**

1


N 93 93


From the various distribution channels, this is a compiled product portfolio of the best-

selling products of Patanjali.

Table 19: Popular Patanjali Products

Patanjali Products Popular

Nutrition and Supplements

Chyawanprash Badam Pak Ghee Honey Health Drinks Fruit Juice

Chyawanprash

Chyawanprash Special

Special Kesar Chyawanprash

Badam Pak

Ghee

Cow Ghee

Honey

Honey Pure

Health Drinks

Aloevera Juice/ Fibre Juice

Amla Juice

Grocery

Biscuits and Cookies Spices Candy Herbal Tea Jam Murabba Soan Papdi Natural Sugar Broken Cereals (Dalia) Gram Flour (Besan) Pickle Salt Mustard Oil Corn Flakes Dal (Pulses) Rice Noodles Oats

Wheat Atta

Navratna Atta

Biscuits and Cookies

Marie

Namkeen

Jam

Jam Mixed Fruit

Murabba

Amla Murabba

Pickle

Awla Pickle

Mustard Oil

Sarso Tel (Mustard)

Noodles

Atta Noodles

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Papad Namkeen Bura

Home Care

Agarbatti Dish Wash Bar Herbal Gulal

Dish Wash Bar

Super Dish Wash Bar

Personal Care

Skin Care Body Care

Face Wash

Face Cream

Face Pack

Foot Cream

Shave Gel

Scrubs

Dental Care Toothpaste

Tooth Brush

Tooth Powder (Manjan)

Hair Care Shampoo

Hair Oil

Conditioner

Hair Color

Body Care Toiletries

Detergent Powder

Detergent Cake

Hand Wash

Soaps

Eye Care

Skin Care

Body Care

Tejus Body Lotion

Face Wash

Face Wash Saundarya

Gel Aloevera

Gulab Jal

Face Wash Neem Tulsi

Face Cream

Anti Wrinkle Cream

Beauty Cream

Moisturizer Cream

Shave Gel

Herbal Shave Gel

Dental Care

Toothpaste

Tooth Paste Dant Kanti

Hair Care

Shampoo

Shampoo Kesh Kanti Natural

Shampoo Milk Protein Shikakai

Kesh Kanti Anti Dandruff Hair Cleanser Shampoo

Kesh Kanti Reetha Hair Cleanser Silk & Shine

Toiletries

Detergent Powder

Premium Detergent Powder (Machine)

Detergent Cake

Detergent Bar With Herbs

Hand Wash

Herbal Hand Wash

Soaps

Soap Ojas

Soap Mogra

Soap Multani Mitti

Neem Kanti

Haldi Chandan

Aloe Vera Kanti

Panchgavya Kanti Soap

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Rose Body Cleanser

Health Care

Digestives Health and Wellness

V. SUMMARY AND CONCLUSIONS Restatement of the Problem

The problem is to understand the important factors that affect the consumers on which Patanjali

should concentrate and within these factors see how the demographics affected and to identify

the best selling product of Patanjali and see which more products that consumer want Patanjali

to manufacture to diversify their product portfolio and in turn grab more market share.

Description of Procedures We used a questionnaire to find the various factors that affect consumers according to gender,

age and number of family members. We interviewed shopkeepers about the products of Patanjali

and also found out the popular Patanjali products on e-commerce websites such as ZopNow,

Bigbasket, Snapdeal, supermarkets such as Reliancefreshdirect and the official Patanjali website.

Major Findings We find that gender and age have a relationship with the various factors in determining the

consumers perception towards Patanjali products. People with older age are more inclined towards the quality, Baba Ramdevs spirituality, indigenous manufacturing and experience perception while in gender, female are more influenced by the ayurvedic products than male.

Thus we accept the first alternate hypothesis. By factor analysis we find that Patanjali should

mainly focus on advertisement, quality, price and experience which would ultimately lead to

value communication. The next think automatically works for them as people give positive word

of mouth or recommendation about Patanjalis ayurvedic products. The last thing which they should focus upon is Baba Ramdev promoting swadeshi manufacturing. After promoting it

towards consumers, Baba Ramdev has started promoting it to the shopkeepers also recently.

Thus we accept the second alternate hypothesis. We have also found a basket of products of the

most popular Patanjali products.

Conclusion and Implications Thus it reinforces our objectives that there is a relationship between the demographics and the

perception of Patanjali products and also the important factors for Patanjali.Baba Ramdev should

promote swadeshi more towards younger generation as older people are by default influenced

with it. Patanjali should try to convey the quality of products to men. Patanjali has increased

their advertisement expenditure and this can be seen in our results where advertisement is the

most important factor for consumers which are value communication.

Recommendations Baba Ramdev should promote swadeshi more towards younger generation because older

people are already influenced by swadeshi products.

They should spend more on advertisements as we can see the returns on the advertisement perception of the consumers. It should be targeted more towards women as they get easily

influenced wherever they see the health benefits of their family as they buy Patanjali

products more frequently because they are the homemaker.

The bestselling products on which they should focus are given in the analysis.

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The products which they should manufacture according to consumers are pasta, soft drinks, make up kit, variety in hair colours, daily product like cheese, ice-cream, paneer, variety of

sweets to distribute in festivals, sunscreens, perfumes, dairy products, milk, body wash,

chocolates, cosmetics, hair dye, they must be available in smaller packages / refill packs,

condoms, birth control pills, wines, anti repellent cream, hair gel, hair removal cream,

bathroom cleaner like sunny floor cleaner, hair color, bread, oil, chips and dips, cheap

stationery and books, muscle builder WEH protein like Endura Mass and baby products.

Limitations of the study

Region wise data couldnt be collected. The out of stock popular products were not identified.

Scope for future research

We can further identify popular out of stock products on which Patanjali should focus. According to the region wise data we can identify clusters and their product preference.

VI. REFERENCES

[1] Bhushan, R. (2015, December 28). Baba Ramdevs Patanjali becoming contender in consumer goods space; rival companies brace up for threat. ET Bureau, pp. 1 Retrieved from

http://articles.economictimes.indiatimes.com/2015-12-28/news/69356627_1_products-sunil-

duggal-consumer-goods-space

[2] Khasgiwala, V and Bapat, H. A Yogic Business Revolution: Back to the Future! IOSR Journal

of Business and Management (IOSR-JBM), 1, pp.59-67

[3] Kumar, V., Jain, A., Rahman, Z., and Jain, A. (2014, 15 May). Marketing through Spirituality: A

Case of Patanjali Yogpeeth. Procedia Social and Behavioral Sciences, 133, pp. 481-490 [4] Rani, S. and Shukla, C. (2012, 9 September). Trend of Patanjali Products: An Ayurvedic Magic

Wand for Healthy Living. Paripex Indian Journal Of Research, 1(9), pp.93-94 [5] Roy, A., Lath, P. and Sharma, T. (2015, October 1). PATANJALI AYURVED Waiting in the

wings. Edelweiss, pp.1-16

VII. BIOGRAPHIES

Dr. Anuja Agarwal is Associate Dean-Technology Management

MPSTME, NMIMS Mumbai. She has a Ph.D. in Management Studies

(Ph.D. Topic: Study of Applying Creativity, Design Thinking and

Innovation in Management Education) - Mumbai University and MCA,

B.Sc. (Computer Science). Her areas of specialization are Design

Thinking and Innovation in Management and Human Computer

Interaction .She has contributed in over 10 research papers which

consist of 6 International and 4 National Papers. She has also authored

2 case studies and is a keen speaker in various seminars and

conferences. Apart from that she has also co-authored in the section

titled Design Management in India in the Handbook of Design Management, published by Berg Publishers, UK in 2011.With a work experience of 24 years, including as a Visiting Faculty for

Design Thinking & Leadership at Malardalen University, Sweden, she has also conducted courses

on Innovation, Developed a Multidisciplinary Course on Smart Cities being offered to the students from all other schools under the NMIMS University.

Some of her recent achievements include:

http://articles.economictimes.indiatimes.com/2015-12-28/news/69356627_1_products-sunil-duggal-consumer-goods-spacehttp://articles.economictimes.indiatimes.com/2015-12-28/news/69356627_1_products-sunil-duggal-consumer-goods-space

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i.) Order of Merit Award for Academic Program on Smart Cities at the Business World Smart Cities

Conclave and Awards Function in New Delhi on the 21st December 2016.

ii.) Kyoto Design Lab Innovation Prize The Team Won the First Prize For Developing a Low-Cost Product to Help Manage Freezing in a Parkinsons Disease Patient, at the 24hr Design Challenge in July 2015 at the Design4Health Conference held at Sheffield Hallam University,

England.

Sakshi Gupta was born in Sri Ganganagar, Rajasthan on the 20th of

March, 1993. She is a final year student pursuing MBA (Tech.) Civil

with Operations, Project and Infrastructure Management as

Management Major at MPSTME, NMIMS Mumbai. She has worked as

an intern in the construction sector and Kalyani Steels Limited, a

reputed steel manufacturing sector company, in their Corporate Office

in Pune under the guidance of the Top Management. She was also an

Executive in Finance and Treasury Department for Civil Engineering

Student Association (CESA) from 2013 to 2015. Her research interests

include in the areas of operations, FMCG industry and technology

management.

Srashti Gupta is a final year student pursuing MBA (Tech.) Civil with

Finance as major at MPSTME, NMIMS Mumbai. She has undertaken

internships in construction sector and also as a project management

intern at Shapoorji Pallonji Pvt. Ltd., helping with the coordination and

key deliverables processes. Her research interests include the areas of

technology management, affordable housing and real estate financing

& pricing strategies.

Vinayak Nautiyal was born in Bombay on the 12th of September, 1994.

He is a final year student pursuing MBA (Tech.) Civil with Finance as

Management Major at MPSTME, NMIMS Mumbai. He has worked as

an intern in the realty sector and the investment banking division. His

research interests includes in the areas of technology management and

financial technology.

TO CITE THIS PAPER

Agarwal, A. , Gupta, S., Gupta, S. , Nautiya, V.l (2017) :: The Impact of Patanjali Products on the FMCG Business Hither to Dominated by Multi-Nationals like Hul,

P&G, Nestle etc. International Journal of Informative & Futuristic Research (ISSN: 2347-1697), Vol. 4 No. (5), January 2017, pp. 6361-6382, Paper ID: IJIFR/V4/E5/061

II. REVIEW OF RELATED LITERATUREIII. RESEARCH METHODOLOGYIV. ANALYSIS AND RESULTSV. SUMMARY AND CONCLUSIONSVI. REFERENCES

international journal of informative & futuristic...

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