PATANJALI University Of Mumbai

[Link] Summary
Patanjali, founded in 2007 by Baba Ramdev and his aide Swami Acharya
Balakrishan has grown into a 5000 crore company in 2015. It has disrupted the entire
FMCG market with its unconventional growth story. The credit goes to Baba Ramdev
who has very meticulously decided the timeline for each action and delivered
unprecedented success. Patanjali’s vision is to provide herbal/ayurvedic/natural
solutions to all the problems and in this pursuit it is also elevating the livelihoods of
local farmers. It has leveraged the emotional route by bringing in the ‘Swadeshi’
angle to market its products. The drivers for Patanjali purchase are lower price points
which induces sampling and when they find no noticeable difference with the pricey
brands, they tend to stick to Patanjali. The key differentiators for Patanjali are its
herbal or ayurvedic offerings and the free consultation it provides to the customers at
Arogya Kendras/ Chikitsalayas through its certified Ayurvedic doctors. Besides it has
also increased its distribution channels through franchise stores, retail chains and
kirana stores. However the supply is not proportional to demand and a lot of
customers are not able to find the desired products. To solve this, they have invested
in food parks and have outsourced manufacturing to other SMEs while conducting
stringent checks to ensure consistent quality.
The strategy followed by Patanjali is unconventional in that they have not
made any significant investment in marketing and promotion and have relied on word
of mouth publicity. Baba Ramdev has done minimal promotion by endorsing the
brand in his yoga sessions televised on national channels. The FMCG giants cannot
rely on such a strategy because they cannot sell the products at such low prices or
provide free doctor consultations and other activities on a continuous basis. Thus it is
not feasible for other companies to follow this model.
The FMCG industry has a lot of big players with dominant market leaders in
each category. Patanjali is in direct rivalry with most of them and with time has been
able to take away market share from the best-selling brands. In retaliation, the market
leaders are bringing out newer herbal products at lower price points or putting into
action other strategies. However Patanjali has the advantage of being the forerunner
and have gained sufficient traction that it will be difficult to displace them. The
entrance of Patanjali has not just marked its increased share of the pie but it has also
managed to increase the size of the pie itself.

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Patanjali Ayurved was formed in January, 2006 as a private limited company

by yoga guru Ramdev and his partner Sri Acharya Balkrishnaji. In June, 2007, it was
converted to a Public Ltd. Company. It is registered under the Companies Act, 1956
and has its registered office in Bijwasan, New Delhi and three other offices in
Haridwar. The company was started with the vision of uplifting the life of Indian
farmers by locally sourcing the raw materials from them and making their lives better
while at the same time provide an opportunity to the Indian masses to move towards
healthy lifestyle by promoting Ayurveda and herbal products. Baba Ramdev started
off as a yoga trainer who featured in televised programs in Aastha and Sanskaar
channels and made Indians realize that they have forgotten Indian tradition and art
forms- one of them being yoga. He got wide acceptance and word of mouth publicity
helped him reach to a wider audience. He projected Yoga as a panacea to all the
health problems. In its first year of operations, 2008, Patanjali generated a revenue of
over 60 crores.1 Almost 10 years later, the homegrown venture has grown to be a
5000 crore company and is posing a threat to the well-established companies in the
FMCG domain.2

In terms of revenues and net profit, the company had nearly grown 10 times in
a span of 5 years.

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[Link] Analysis

The FMCG market in India is worth $49 billion USD as of January, 2016 and
is expected to grow to $103.7 billion USD by 2020.5 It is the India’s fourth largest
industry. The growing awareness, rising disposable income of the masses and easier
access are the key drivers of demand growth.
There is also an increased demand for premium products because of the
growing youth population. Besides the penetration into rural areas is increasing and
thus newer geographies are made into playgrounds for the myriad FMCG companies.
The FMCG industry has three main segments: Food and beverages (18%), Health care
(32%) and Household and personal care (50%).
The FMCG sector has witnessed a CAGR of 11.9% between 2007 and 2016.
The urban sector account for 65% of the revenues, while the semi-urban and rural
make up the rest 35%.6 The current trends in FMCG are product innovation (e.g.
Honitus: non-drowsy), product customization/mass customization, premiumization,
backward integration, outsourcing, increasing rural penetration, outsourcing,
expanding distribution networks, smaller sized SKUs, increasing private label
penetration and reducing carbon footprint.
After literature review, we performed the Porter’s Five Forces analysis to
determine the attractiveness of the industry, the details of which are as follows:

1. Bargaining power of Buyers (dealers, whole sellers)/ customers: HIGH

The switching cost is very low in case of FMCG products. FMCG market is
extremely competitive and hence every company fights to get the largest shelf
space at the most strategic locations to have greater visibility. On the contrary,
the products are low involvement products and are not highly differentiated.
Thus they ask for higher margins to stock the products. For the customer,
he/she has a wide array of choices. The Indian customer is price-sensitive as
well. So unless he/she sees value in the products or are given discounts it
would be difficult to persuade him/her to purchase. In such a setup, the dealer/
whole seller/ distributor/customer has higher bargaining power.

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2. Bargaining power of Sellers: LOW

They have typically low bargaining power, Big FMCG companies have more
power in deciding the pricing structure when they source from local farmers or
fragmented commodity supplier groups. The FMCG companies are also
moving towards backward integration with farmers so as to capture a larger
part of the value chain. They provide the expertise to these farmers and in
return are able to source raw materials at cheaper prices. Finally the big
FMCG companies are also signing MOUs with local government to source
items at fair prices from the farmers.

3. Threat of substitutes: HIGH

There are a lot of brands and hence an equal number of offerings from each
brand. The product differentiation is not superb and thus commoditization is
not uncommon. Thus threat of substitutes is quite high since there is a huge
number of products in the same category. Besides the switching cost is nil.
The only concern is the availability of products in particular channels.

4. Threat of new entrants: MEDIUM

Barriers to entry is quite high since it requires significant capital investment in
setting up distribution networks and brand promotion.7 The existing
distribution channels are already being used by the current players. The
economies of scale can be leveraged by only a few with expertise. The
established brands do a lot of marketing to build brand equity and thus it will
be difficult to beat them in their game. Unsustainable prices cannot be offered
as the newer companies do not have so much money to spare on promotion.

5. Competitive Rivalry: HIGH

The competitive rivalry is very high as the private label brands give heavy
discounts compared to the established brands. Thus the weak players are
ousted from the market. There are a huge number of players as the market is
highly fragmented. More MNCs are also coming to join the competition. The
established brands do a lot of branding to demand higher prices. So it is
difficult to gain market share in any categor

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[Link] Marketing Mix (4Ps) Strategy

Marketing Mix of Patanjali analyses the brand/company which covers 4Ps

(Product, Price, Place, Promotion) and explains the Patanjali marketing strategy.
The article elaborates the pricing, advertising & distribution strategies used by the
company.
Let us start the Patanjali Marketing Mix:
[Link]:
Patanjali Ayurved is an Indian FMCG company which started in 2006. Patanjali
has a diverse product offering in its marketing mix. The product range of Patanjali
had more than 400 types of FMCG goods like cosmetic products, food items,
haircare, skincare, toothcare etc. The company also has products which focus on
baby segment, healthcare and beauty products for men and women. Patanjali also
produces medicines and as per its sources, all its products are ayurvedic and free
of harmful chemicals. Patanjali food product range includes biscuits, noodles,
cornflakes etc. Patanjali has 300+ medicines for treating many ailments and body
conditions, from common cold to paralysis. Textile, jeans, kurta, pyjama etc is
also something which the company is focused on. Hence, this gives an insight in
the product mix of Patanjali.
[Link]:
Patanjali Ayurved has entered in an extremely competitive segment in the
Indian FMCG industry. The main players in India in this category are the likes
of HUL, P&G, Marico, ITC etc. Patanjali has ventured into various segments
and hence the pricing strategy in its marketing mix is defined by the
competition in that segment. Patanjali products are priced as per competition
so that it becomes easier for the customers to switch from their existing brand
and adopt their products. Patanjali noodles competes with Maggi, toothpaste
competes with Colgate, chywanprash competes with Dabur, cornflakes
compete with Kelloggs and hence forth. This clearly shows that Patanjali has
replicated the already successful existing FMCG model and is focused on
giving a healthier and natural variant to its target audience. Thus the prices of
Patanjali products are driven by segment, geography and most importantly
competition pricing.

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[Link]:
Patanjali has managed to reach a wide population in a short span of time.
Patanjali has an excellent distribution network as it has tied up with the likes
of Future group, Reliance retail, Hypercity etc. This has enabled the Patanjali
brand to ensure that its products are widely available across various cities and
towns in India. Close to 5000 retailers are actively promoting Patanjali
products along with smaller grocery stores. With the increase in ecommerce in
the Indian segment, Patanjali is also effectively increasing its presence online.
This would enable customers to simply add the products to their carts and they
can buy Patanjali products via COD, online payment etc which would be
delivered to their doorstep. The brand has also been able to expand
geographically outside India.

[Link]:
Patanjali has considered advertising for its products as a high priority for
driving sales. The promotion and branding in Patanjali marketing mix utilises
all media channels like print, TV, online ads, billboards etc. Patanjali's brand
ambassador is yoga guru Ramdev Baba, who has a staggering fan following,
which enabled the brand to catapult in the big league within a short span. The
advertisements of Patanjali has been aggressive where they have showcased
the importance of using natural and ayurvedic ways of making products. Their
advertisements have also been under scrutiny as they have alleged that its
competitors have been using harmful products. Patanjali advertisements
showcase their entire product range targeting the audience who want a healthy
lifestyle by using naturally curated products. The massive advertising exercise
by Patanjali has made it one of the fastest growing FMCG companies in India,
with annual revenues in excess of INR 5000 crores. Hence this gives an
overview on the marketing mix of Patanjali Ayurved FMCG company.

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[Link] FACTORS
[Link] Structure:
Director Acharya Balkrishna

Director Mukta Nand

Director Ajai Kumar Arya

Director Rakesh Mittal

Director Sumedha

Company Secretory Shashi Chandra Jha

The Board of Directors is formed of three founding people. Swami Acharya

Balkrishnaji is serving as the Managing Director of the company. Two other
members Swami Muktanandji and Sri Ajay Kumar Arya are also holding
positions as the Directors of the company. Swami Ramdev do not hold any
position or stake in the company but does act as the Ambassador for the entire
Patanjali
brand. The operations department is headed by Ramdev’s brother Ram Bharat.
Everyone else from the finance, logistics and other teams report to him He is
the informal CEO but designations are not very formalized within Patanjali.3
Patanjali has over 200,000 employees in total. They hire street-smart people
and do not look for MBA graduates only. This helps them to keep costs down
while also delivering unprecedented growth.

[Link] Channels:
 One of the main reasons that Patanjali can offer low prices to its customers
was because of its strong sales and distribution network.
 Patanjali Ayurved sells its products online as well as through its 4,700+ retail
outlets spread across the country.
 Patanjali Ayurveda has also tied up with Pittie Group and Kishore Biyani’s
Future Group to sell its consumer products through Future Group outlets.

 Patanjali Ayurved has also started its FMCG expansion in form of dealership
and distributorship channels across the country and expects wider growth in
overseas distribution as well

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Competitors:
1. Dabur India
2. Procter and Gamble
3. Marico
4. Nestle Ltd
5. HUL (Hindustan Unilever Limited)
6. Himalaya Herbal Healthcare

Products of Patanjali and Other Brands.

[Link] Types of Products Patanjali Other Brands

.
1 Facewash Patanjali Neem &Tulsi Himalaya Neem
Facewash Facewash
2 Toothpaste Dantkanti Cologate Active Salt
Neem Toothpaste
3 Hairoil Patanjali Kesh Kanti Emami Kesh King
Hairoil Hair Care
4 Honey Patanjali Honey Dabur Honey
5 Shampoo Patanjali Kesh Kanti Anti Head & Shoulder
Dandruff Shampoo Anti Dandruff
Shampoo
6 Chyawanprash Patanjali Chyawanprash Himani
Chyawanprash &
Dabur
Chyawanprash
7 Herbal Hand Wash Patanjali Anti Bacterial Dettol Handwash &
Herbal Hand Wash Lifeboy Handwash
8 Instant Noodles Patanjali Atta Noodles Maggie Atta
Noodles
9 Oats Patanjali Oats Safola Oats &

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Quaker Oats

 Companies like Colgate launched Vedshakti toothpaste and L’Oreal

introduced a new product with the natural ingredient in hair care range under
Garnier Ultra Blends.
 Godrej Consumer launched neem mosquito oil, a crème hair color that has
coconut oil and new variants in natural soaps.
 Hindustan Unilever (HUL) launched hair care products like Ayush
antidandruff neem shampoo, Ayush antidandruff neem conditioner, and skin
care products like Ayush saffron face cream and pain balms on e-commerce
platforms under Ayush Therapy

Top Competitors Of Patanjali

HUL is perceived as one of Patanjali Ayurved's biggest rivals. HUL was

founded in 1956, and its headquarters is in Mumbai, Maharashtra. Like
Patanjali Ayurved, HUL also works within the Consumer Goods field. HUL
has 194,355 fewer employees than Patanjali Ayurved.

Dabur India is one of Patanjali Ayurved's top rivals. Dabur India is a Public
company that was founded in 1884 in Ghaziabad, Uttar Pradesh. Dabur India
competes in the Household Products field. Compared to Patanjali Ayurved,
Dabur India has 192,856 fewer employees.

Emami is Patanjali Ayurved's #3 rival. Emami is a Public company that was

founded in Kolkata, West Bengal in 1974. Like Patanjali Ayurved, Emami
also competes in the Consumer Goods sector. Emami has 196,708 fewer

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employees vs. Patanjali Ayurved.

 Patanjali had made a string of enemies amongst the FMCG giants.

With its aggressive stance, it is giving each of its competitors a tough
time. Some of the notable mentions are Colgate, Dabur and HUL.
Colgate had lost around 5% of market share to Patanjali since it
launched its Dant Kanti. Dabur also lost a significant market share in
Chawanprash and honey. The bigger FMCG companies like HUL,
P&G, ITC, etc. are not affected to a great extent but Patanjali has
competing products in a lot of health and personal care, beauty
products and food and beverage products. It would not be long before
they recognize Patanjali as a threat and take counter measures. A few
companies have already taken steps. Colgate has launched a new
herbal toothpaste at a lower price point than Patanjali. HUL is creating
a new arm to produce herbal products and include them in their
product portfolio. They have also acquired ‘Ayush’11 recently to
increase their expertise in ayurvedic offerings.

Stakeholders Of Patanajli

Many of us are unaware of the fact that Baba Ramdev is not the owner of
Patanjali. He has no profit or share in the company.
The real owner of Patanjali is Acharya Balkrishana. Ha holds a massive share
of 94% in Patanjali Ayurved Ltd.
Acharya Balkrishna is the main stakeholder in Patanjali Ayurved. Then there
is an NRI couple, Sunita and Sarwan Poddar, followers of Ramdev, gave Balkrishna
the first loan to kick-start the business. They have a 3% shareholding
in Patanjali Ayurved.

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[Link] Factor
1. Political:
The present political environment is conducive to the growth of
Patanjali Ayurved in the country. Baba Ramdev is friendly to the
present government. He is a big supporter of Shri Narendra Modi,
Hon’ble PM of India. a. Stability: The present central government has
majority in the parliament. A stable government augurs well for the
organizations like Patanjali who want to move on a fast growth track
by investing heavily in the factors of production and marketing. b.
Taxation Policy: Governments taxation policies impact on the cost of
the input products and hence impacting on the final price of the
products. PAL input costs increases or decreases based on the taxation
policies of the government c. Government Support: Central
Government is promoting Ayurved and Yoga. Government of India
has a separate “Ayush – Ministry” to promote Yoga, Ayurved and
other traditional and complementary medicines. (Annexure 4) d.
Challenges faced from State Government: PAL is expanding its
operations but outside its home state, Uttarakhand, because of the lack
of cooperation from the present state government
2. Economic:
The following economic factors are impacting Patanjali Ayurved Ltd
and other organizations in its segment: a. Inflation rate: Moderate
inflation rate, an important factor in the mind of customer to look out
for value for money products. b. Tax Rates and Interest Rates: Higher
tax rates and interest rates impact upon the cost of capital adversely
and hence the manufacturing cost increases, making the products
costly in the market. c. GST: Implementation of Goods and Services
Tax will also help organizations like PAL. d. Since Patanjali Ayurved
procures its raw materials locally and thrust on exports is minimal, the
factors like currency exchange rates etc have no significant impact.
3. Social:

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a. Health consciousness: People are becoming more health conscious

and there is an increasing trend to spend on health and awareness
programs and products. b. Rise in life style diseases: Lifestyle diseases
like heart attacks, cancer, BP, Diabetes are on rise in the Indian
society. The main cause for this is chemicals in the food we eat and the
products we use apart from the lifestyle of an individual. People are
more inclined towards natural products
4. Technological:
a. Research & Development: Government has created a favorable
environment for R&D in India. Patanjali through Patanjali Yogpeeth
Trust at Haridwar is involved in R&D of ayurvedic and herbal
products. Baba Ramdev has claimed that their R&D has created
ayurvedic products which can cure deadly diseases like cancer. b.
Automation: Automation in drug production helps in mass production
of ayurvedic drugs without losing their effectiveness and efficacy. c.
Better means of communication, resulting in fast information disbursal
and penetration.
5. Environmental:
The science of ayurved is free of any hazardous chemicals. It has a
direct advantage over allopathic medicines as it has no side effects. b.
India is a rich source of certain herbs which may not be available
anywhere else in the world. c. The residues produced in ayurvedic
product manufacturing is far less harmful compared to that of an
allopathic manufacturing. d. Ayurvedic products are more environment
friendly compared to other chemical based products.

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[Link] Analysis
1. Strength
Patanjali sources most of the raw materials from local farmers and thus can
offer products at lower prices. All the products have some ayurvedic touch to
it. This appeals to the masses. Besides there are no chemicals used for
manufacture of the products. Having Baba Ramdev as the brand ambassador
leads to a transfer of credibility from Ramdev to the brand itself. Thus it does
not have to work hard to build trust among its customers. Finally Patanjali has
a very good distribution channel. It has 1200 Patanjali Chikitsalayas, 2500
Arogya Kendras, 7000 open stores in villages and 5600 marketing vehicles8
apart from tie-ups with hypermarkets like Big bazaar, Reliance retail,
Hypercity, Star Bazaar(Tata), D-mart, Spencer retail, More(ABG retail). It has
also recently tied up with Apollo pharmacy and thus had license to use its
22009 stores in India for distribution of its products. Baba Ramdev has strong
political affiliations which he can utilize to get benefits from the government.
He has already helped Patanjali secure loans at lower interest rates and is also
being offered subsidized land as food parks. These are the strengths of Baba
Ramdev but it is not sustainable if he deserts the company.

2. Weaknesses
The sourcing of the raw materials is done from local farmers and is therefore
dependent on the produce of these farmers. Thus the supply is not steady and
therefore they are not able to cater to the demand of the customers. It does not
have any definite strategy on scaling and thus might leave a trail of unsatisfied
customers behind since it would not be able to cater to their demand.
Secondly, the positioning is done to attract people above age group of 35 years
of age and it does not appeal to younger generations. This can seriously impact
growth of the company after a certain point if it cannot reposition its appeal
towards the younger generations. Thirdly, the packaging is not good or up to
the standard of the current big players. This might impact adoption of the
products. They have been trying to manufacture products in a lot of categories
but only a select few have been successful. They should try to build those into

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bigger brands rather than investing their resources in a lot of products so as to

gain market share. They are not focused as of now. Despite having a wide
distribution network, Patanjali does not sell their products through kirana
stores as extensively as other FMCG giants. This is crucial as one of the
insights regarding consumers’ purchase of FMCG products is that they
purchase them almost 90% of the time through kirana stores. Besides since
they price their products very low, therefore they are not able to give higher
margins to sellers which might lead to strained relations.

3. Threats
The differentiation that Patanjali has created is in terms of ayurvedic
knowledge and use of herbal and natural ingredients in the products. Secondly,
Patanjali products are generally available at lower price points compared to
other branded products. However, the competitors can easily make their foray
into the herbal space and they can spend big bucks on marketing their products
as well. Besides they have stronger distribution channels. Secondly the bigger
companies can always create newer brands to start a price war with Patanjali
(e.g. Colgate created Cibaca Vedshakti and is selling at lower price than
Patanjali)10. This might drain Patanjali’s resources in the long run compared
to the bigger companies who can burn more cash. Another strong point of
Patanjali is the backward integration with local farmers to source their
products. However other FMCG companies are also doing that to some extent.
If they begin to extend their backward integration, then it might create
sourcing problems for Patanjali.

4. Opportunities
The targeting can be changed to appeal to younger generations as it is yet to
capture that segment. For this they need to build a good brand which they can
do by working on advertising and packaging that appeals to broader segments.
They are trying to acquire more food parks in India so as to solve the problem
of sourcing. This will create stability in the availability of products and they
can cater to the increased demand. They can scale up even more through
franchise model or tie-ups with more supermarkets/hypermarket chains.
Finally, it can price its products a bit higher, especially the best-selling ones as
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people have become loyal and are willing to pay a premium.

[Link] LIFE CYCLE
A product is like a human being. It is born, grows up fast, matures and then
finally passes away. The product life cycle discusses the stages which a
product has to go through since the day of its birth to the day it is taken away
from the market.
The stage 1 is where the product is launched. A product launch is always
risky. You never know how the market will receive the product. There have
been numerous failures in the past to make marketers nervous during the
launch of the product. The length of the introduction stage varies according to
the product. Once the introductory phases are over, the product starts showing
better returns on investment. Your customers and channels begin responding.
There is better demand in the market and slowly the product starts showing
[Link] is a stage where competition may step in to squash the product
before it has completely launched. Any marketing mistakes done at this stage
affect the product considerably as the product is being exposed to the market
and bad news travels fast.
One of the problems associated with maturity stages in a technologically
advanced environment is the problem of duplication. Not only is the product
available in duplicate markets, but also there are several competing products
which arise with the same features and capabilities. As a result, the USP’s of
the product become less attrative.
1 product, 10 competitors, minimum profits, huge amount of manpower and
resources in use – A typical scenario which a product might face in its last
stage. In this stage the expenditures begin to equal the profits or worse,
expenses are more than profits.
Thus it becomes a typical scenario for the product to exit the market. It also
becomes advantageous for the company as the company can use resources it
was spending on the declining product on an altogether different project.
Patanjali has now a huge product portfolio under its brand. But scrutinizing
deeply, not all products were launched at the same time. Rather, they started
with few products and since then has been constantly innovating to come up
regularly with new products. Also, in comparison with other FMCGs,

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Patanjali is a fairly young company dating back to 2007. Hence all of its
products will be either in introductory or in the growth phase and has still a
long way to go before it reaches maturity.

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[Link] Product Developement

 After entering and expanding in the food and grain market in the last two
years. Patanjali has now announced to enter in the apparel sector with the
prospective launch of Patanjali Jeans and expand its presence in the fast food
sector, by opening Quick Service Restaurants which would provide over 400
vegetarian fast food items. In my view, QSR is a great idea, especially when
the food provided is believed to be organic and healthy and based on the
Indian ethos/Ayurvedic recipes.
 I am not convinced about the choice of “Swadeshi Jeans” as there is no
connection to either Indian ethos or Ayurveda.  Add the fact that for the first
time a Patanjali product would require a paid brand ambassador, as Ramdev is
not known to wear jeans.  Were Patanjali to launch a line of leisure wear along
the lines of Yoga clothes it would be a perfect extension. As of June 2018 the
launch of Patanjali jeans has been postponed by yet another year.
 Patanjali has more recently created waves by launching a telecom service on
the back of BSNL and a WhatsApp equivalent, Kimbho, which was rapidly
withdrawn after security concerns were exposed.  These attempts to expand
beyond FMCG could be because of flagging growth in that segment – the
company said they closed 31 March 2018 with roughly the same revenue as
the previous year.  Remains to be seen if its brand (and Ayurveda) are suitable
for the telecom and apparel space as well.

 The Indian market is growing enough that there is space for both the MNCs
and home grown biggies – as companies like Wipro and Godrej and Marico
have shown. Moreover, if India is able to transform itself into a soft power
brands like Patanjali will do well in affluent countries in the health food and
natural remedies segment.

1. The new ranges are:

2. Dairy products - This range will include cow milk, curd, chach and paneer.
3. Cattle feed and supplements - Dughdamrit
4. Range of frozen vegetables - Peas, Mix vegetables, sweet corn, potato fingers
(french fries)
5. Solar product range - Solar panels, solar street lights, solar hybrid invertor and
solar water pumps

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PATANJALI University Of Mumbai

6. Packaged drinking water range - Divya Jal

7. Patanjali's official Twitter handle also shared a glimpse of the products ranges
ready to be launched.
8. Patanjali’s Yoga Clothes

Failure Of New Product

Nearly 40% of Ayurveda products, including items from Baba Ramdev’s
Patanjali, were found to be of substandard quality by Haridwar’s Ayurveda and Unani
Office, a Right to Information (RTI) reply revealed.
Out of the 82 samples collected between 2013 and 2016, 32 failed the quality
test. Patanjali’s Divya Amla Juice and Shivlingi Beej were among the products that
failed to meet the quality standards.
Last month, the armed forces’ Canteen Stores Department (CSD) had
suspended the sale of a batch of Patanjali’s amla juice after it ‘failed’ a quality test
carried out at West Bengal Public Health Laboratory.
According to Uttarakhand state government lab report, the pH value- which measures
the alkalinity of water soluble substances- was found to be less than the prescribed
limit in the amla juice. Products with pH value less than seven could lead to acidity
and other medical complications.
The RTI reply also revealed that 31.68% of foreign matter was found in the
Shivlingi Beej.
Ramdev’s associate and Patanjali’s managing director, Acharya Balkrishna,

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denied the lab report. “Shivlingi Beej is a natural seed. How can we adulterate it?”, he
said and claimed that the report was an attempt to malign Patanjali’s image.
Besides Patanjali products, 18 samples of Ayurveda drugs such as
Avipattikara Churna, Talisadya Churna, Pushyanuga Churna, Lavan Bhaskar Churna,
Yograj Guggulu, Laksha Guggulu were also found substandard.
Over the years, Uttarakhand has emerged as a major hub of Ayurveda
products. Haridwar and Rishikesh have more than 1,000 dealers, manufacturers and
suppliers of Ayurveda medicines.
One of the manufacturers, Minor Forest Produce Processing And Research
Centre (MFP-PARC), said the drugs were supplied only after Uttrakhand Ayush
wing’s approval.

[Link]
Ramdev is the face and the man behind the whole brand of Patanjali
Ayurveda. The story started even before the idea of Patanjali was conceptualized.

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PATANJALI University Of Mumbai

Ramdev started as a yoga guru offering a healthy life style choice and quickly
escalated to fame by TV and live yoga sessions, which had a huge reach and created a
big impact on the Indian people. One of his erstwhile disciple & friend, Acharya
Balakrishna who also happens to be an Ayurveda expert, used this opportunity to
launch a range of Ayurveda & herbal products under brand Patanjali. Combining
these products with the yoga of Ramdev was a good move as they were
complementary to each other and helped each other as a sort of unwritten co-
branding. Patanjali products started to get promoted by Ramdev via the TV channel
(Aastha) and also in his yoga sessions. This association of Patanjali with the popular
and mass accepted yoga guru Ramdev has been a strong and favorable one. Hence
salience or awareness of the brand is high, significantly more in North India and parts
of Western India than other regions, the reason behind can be due to usage of Hindi as
its prime language of communication and promotion.
The brand recall is also quite high. The imagery that Patanjali carries is quite a
positive one, which is seen as a pure, good quality indigenous product and a healthier
alternative than other FMCG products typically found in market. In terms of
performance, by our market research and interviews, the customers are satisfied with
it. Most of the consumers feel that Patanjali is a brand that can be trusted and hence
advices each other to use these products. Since it is lifestyle choice of choosing the
healthier alternative among the existing brands, there is a resonance among the
consumers which results in strong brand loyalty. It is observed that once a consumer
starts using a particular Patanjali product, he or she starts using other products too of
the same brand since all are aligned with Ayurveda.
From its inception, Patanjali has been following ‘Branded House’ strategy that
is keeping everything under one umbrella brand, unlike most of the other FMCG
companies like HUL, P&G etc. which uses ‘House of Brands’ strategy i.e. there is a
standalone brand for each product line offering. This gives Patanjali a significant
advantage in building a unified brand for itself, its current range of products and new
products which are going to be launched since it can leverage on the already
established brand of Patanjali.
[Link]
Patanjali sells products in a very simple package. Now many people will feel
that this is not a good strategy. But the truth is that we work for Patanjali. With the

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PATANJALI University Of Mumbai

help of products such as Patanjali, promoting 'Ayurveda' and 'Health', simple

packaging can be a very effective way to advertise. With its natural appearance
(especially leaves and herbs), consumers feel health and well-being and feel attracted
to buy products.

[Link]
From the very beginning, the promotion strategy of Patanjali had two main
objectives. One was definitely to highlight the health benefits of using
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PATANJALI University Of Mumbai

Ayurveda products & to evoke the Swadeshi sentiment into the Indian
consumer’s mind. The other objective was to make aware of the customers
about the sinister way of the profit making by the FMCG giants which are
typically MNCs: that they not only fool the customers giving stale, adulterated
products but at the same time charging high price at the cost of exploiting our
farmers. All these promotions were carried out via various channels and
modes, some of which are as follows.

1. Direct marketing
Ramdev with his popular yoga guru image and organizing Yoga camps across
India round the calendar contributes to the direct marketing of the Patanjali
products where they are promoted and advertised along with the main events.

2. Word of Mouth
Most of the promotion is carried out indirectly by the followers of Ramdev
and the early adopters of Patanjali products who have found these products to
be good. While communicating with their family, friends, relatives, neighbors
and colleagues, they indirectly promote brand Patanjali by sharing their
positive experience with the products. Publicity through word of mouth form
users is something that tells that that the brand sells itself with minimal
promotion.

3. Media
Aastha channel is the TV media where Patanjali is heavily promoted. It mainly
started as a means to spread health awareness & yoga sessions to the masses.
But with the advent of Patanjali, this channel along with the yoga sessions
were leveraged to promote Patanjali products & the health benefits of
consuming or using it. This move was aligned since they were promoting
health products in a health related lifestyle show. Apart from this, Patanjali ads
are sometimes observed in few other channels and print media. . Recently, a
new campaign on radio has been launched by Baba Ramdev (Patanjali
apnaiye, desh ko aarthik aazadi dilaiye)15, which hovers around the idea of
providing financial independence to the nation by the use of indigenous
products.
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PATANJALI University Of Mumbai

4. Celebrity endorsement
Patanjali rarely did any celebrity endorsement since the popular face of
Ramdev was sufficient to carry on the promotion. His image as a yoga guru
totally aligned with the Ayurveda product offering of Patanjali. Celebrity
endorsement is something which was not previously in Patanjali’s promotion.
However lately, wrestler Sushil Kumar has been seen endorsing the Ghee
brand of Patanjali. But this is also to be kept in mind that this was not in a very
large scale promotion, nor the sports celebrity was a top shot. We are yet to
see a top shot celebrity endorsing brand Patanjali.

[Link]

From the product line up of Patanjali Ayurved, it can be safely assumed that it

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PATANJALI University Of Mumbai

does not segment the customer base as such, making the whole population its
potential customer. As per Ramdev’s vision of bringing welfare and manufacturing
good and unadulterated natural Ayurveda products easily available to the common
masses, this stance of not segmenting the market as such seems aligned. However on
analysis, a broad segmentation can be observed.

1. Geographic Segmentation (North India & South India)

It is observed that Patanjali products are a huge hit in the North Indian market
but not that much in South India. One reason might be that Ramdev being
from the Hindi belt and Aastha channel airing in Hindi language, its
prominence is not that much down in south. The same reason holds true for its
packaging, which uses either English or Hindi. To be noted that Patanjali owes
its huge success to Ramdev’s active image association with it.

2. Behavioral Segmentation (based on lifestyle and types of products

consumed or used)
The consumers can be segmented based on their lifestyle & health preference
and by the type of product they use. The main users of Patanjali products are
the people who are health conscious and want to use pure unadulterated
natural Ayurveda products.

3. Demographic segmentation (based on age)

A clear segmentation can be done based on age. The young generation, i.e.
typically children to young adult below the age of 35 years is a clear segment,
while the rest of the population aged more than 35 years are the other segment.
This segmentation based on age makes sense since young adults & children
enjoy life and often is not serious about health or life, which makes them not a
user of these products. On the other hand, once people turn a little old with the
onset of middle age, they start thinking about health & the future. These are
the people who generally make the purchase of Patanjali products.
4. Psychographic Segmentation
Based on the psychology and mindset of the people, this segmentation is taken
into account. There is huge overlap between the people who attend Ramdev’s
Yoga camps or follow him on Aastha. They perceive him as an ascetic and
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PATANJALI University Of Mumbai

hence his products too shall be good which makes them purchase these
Ayurveda products of Patanjali. Also to be noted is that Ramdev wanted to
create a Swadeshi sentiment among the customers and thus pitched against
FMCGs who are mainly MNCs or use raw materials/ procedure of foreign
origin.

[Link]

Currently Patanjali is competing in all FMCG categories catering to the whole

population, which is otherwise called Total Market Coverage Targeting
Strategy. They have diversified into almost all categories like oral care, hair

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PATANJALI University Of Mumbai

care, skin care, groceries, health drinks & supplementary, packaged food etc.
Also since they have no differential products within the same product
portfolio, this substantiates the fact that they are not targeting any particular
segment, rather serving the whole population with their offering. To reach to
the maximum number of potential customers, it has to target specifically
though. The house wives and the elderly of the house are the influencers and
decision makers in the purchase process of Ayurveda products. By just
producing packages with South Indian languages, the south market can be
targeted.
At present Patanjali is contending in all FMCG categories obliging the entire
populace, which is generally called Total Market Coverage Targeting
Strategy. They have expanded into all categories like oral care, hair care,
healthy skin, basic needs, health drinks and packaged beverages and so on.
Additionally since they have no differential items inside the same item
portfolio, this substantiates the fact that they are not focusing on a specific
section, rather serving the entire populace with their advertising. To reach to
the greatest number of potential customers, it needs to be more specific in its
targeting though. The housewives and the elderly of the house are the
influencers and chiefs in the buy procedure of Ayurveda items. By simply
producing packaging with South Indian dialects, the market in the south can
be focused on.

[Link] Marketing
1. [Link]
Digital Marketing Case Studies: [Link]

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PATANJALI University Of Mumbai

[Link] is their primary e-trade site. The whole range is in plain

view here and can be purchased on the web. Costs appear to be in INR.
Individuals may ignore it, however, need to recollect that none of our MNCs
really offer their items online inspite of their media remarks about how they
are grasping computerized, which obviously is more upscale than genuine
nowadays.

2.  [Link]
Digital Marketing Case Studies: [Link]
Presently [Link] is just on their corporate site. This is the place
they get into what they are about, the mission and reasoning and obviously
welcoming dealerships.
A large portion of it has been composed shabbily and an expert organization
may have made a superior showing with regards to of it.
So don’t anticipate that this is will an HBR contextual investigation on
composing statements of purpose. Yet, the dealership structure accessible on
the site is both silly and enlivening.
The intriguing part is that the structure requests that the merchant vow
devotion to the development.
Notice the watchwords ” I am a well-wisher and supporter of this development
and is resolved to dispose of MNC’s plunder to make the nation independent
and monetary superpower’
Final Words on Digital Marketing Case Study of Baba Ramdev’s
Brand Patanjali:
Baba Ramdev’s image appears to be very much designed and prepared for
takeoff. It appears to have all the enchantment elements of accomplishment.
 The brand has moved into e-business other than being accessible with retail
chains and under its own particular dispersion focuses.
 The Ramdev Medicines brand is prepared for the fare with outside trade
winning potential and could be an awesome achievement if advertised
effectively given the shortcoming that the West has for both Yoga and Herbal
choices.
 The brand pyramid has legs. Items are accessible online and through
disconnected retail.
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PATANJALI University Of Mumbai

 And at long last, it’s not just his organizations that are advanced. Baba
Ramdev is himself advanced. He has 541k devotees on Twitter. Our MNC
CEO’s are going to think that it’s hard to match his following sooner rather
than later. On Facebook Baba Ramdev has 5.7 million individuals liking his
page. Lastly in determination to get an insidious expression from the British,
no big surprise the MNCs in India and their CEOs are getting their pants in a
bunch.

[Link]
 Baba Ramdev’s Patanjali has made disruptive progress in the FMCG sector.
Within a span of less than 10 years, it has displaced ayurvedic market leaders

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PATANJALI University Of Mumbai

like Emami and Himalaya.

 Patanjali has become synonymous with ayurvedic products. While the total
demand is not being satisfied as of now, efforts are on to increase sourcing so
as to maintain steady supply of raw materials.
 The fill rate is 45-50% and can only increase from now on. They have
increased their margins for franchise stores as well as retail chains to around
10% and thus are getting better placement on the shelves.
 They are focused on serving the masses and thus cut corners in packaging and
advertising. This is changing as they are spending on advertising recently. The
radio campaign is the first proof of that. Ramdev Baba’s charisma has pushed
Patanjali to grow over 10 times in a span of less than 10 years.

 The FMCG giants are also taking steps to check the advancements of
Patanjali. However now that it has gained traction in the market and there is
overwhelming demand for its products, it will be difficult for them to win back
their lost market shares.

[Link]
 Quality as the most influential factor in purchasing decisions. The price is
also important for the purchase decision.

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PATANJALI University Of Mumbai

 The plan always attracts more consumers for a certain brand. At the same
time, before the final decision is taken, the consumer will give an idea of what
he sees most in the product.
 Price reductions and additional quantities are two important proposals / plans
that consumers encounter when buying
 People buy more products from the brand that fit the budget, more quantity +
less costs + quality.
 Because of the extra quantity with less or the same price, more satisfaction,
quality and other factors, the consumer must switch to a different brand.

[Link]

1. Marketing management analysis, planning, implementation, and control

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PATANJALI University Of Mumbai

by Philip Kotler –Book

2. NAME OF WEBSITE
[Link]
[Link]
[Link]
[Link]
[Link]

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