2. Introduction Acharya Bal Krishna established Patanjali Ayurveda Limited
in the year 2006 taking inspiration from Yoga rishi Baba
Ramdev for the objective of establishing science of
Ayurveda in accordance and coordinating with the latest
technology and ancient wisdom.
Patanjali Ayurveda was first started by manufacturing
medicinal products. Gradually they have expanded their
range from medicines to food items and cosmetics.
Baba Ramdev chose the path of swadeshi and by
establishing Patanjali Ayurveda he presented an indigenous
option to buyers, on the other side he gave competition to
different FMCG companies.
In March 2012, when Ramdev announced his entry into the
fast moving consumer goods and herbal retail markets with
his 'swadeshi' line of products, the yoga guru today has
emerged as one of India’s more successful brands in the
otherwise less penetrated rural markets too as his 150-200
dedicated outlets in 2012 have grown to almost 4,000
now, prompting Ramdev to sell the FMCG range in the
open market too.
3. • The fast-growing Patanjali is eyeing Rs 10,000 crore with a
stupendous 150 per cent growth expected this year.
• The global herbal market is growing fast, about 15-20percentage
points faster than the rest , and the premium segment is growing even
faster.
4. Vision
1. To be a top Ayurveda company
among all MNC’s
2. To Re-introduce the Indian
Ayurveda
3. To crack the world’s attraction
to our India
4. To work for the welfare of
Humanity
5. To reinvent our traditional
knowledge of Yoga and
Ayurveda
5. 1.To reach the great heights
2. To restart the swadeshi
movement
3. To produce good quality products
at cheaper rates
4. To introduce Indian Ayurveda to
this modern world
5. To crack the maximum market
share.
7. Strength Weakness
Opportunity Threats
1. Launched too many products in a short
time
2. Issue with advertising council of India
1. Can tap overseas market as Ayurveda is
increasingly getting awareness
2. Can enter more segments in personal
hygiene, FMCG etc.
3. Can also diversify in apparels
1. Prominent FMCG players coming up with their
own variants of Ayurveda products
2. Big players have their existing model which is
sturdy, which can overcome new competition
from Patanjali
1. Extensive marketing has pulled people
into accepting its products as a healthier
and safer option
2. Strong brand ambassador with Baba
Ramdev as its face helped boost the
business
3. New products, new style of marketing etc
has changed the market dynamics
S
w
O
T
8. The company is planning to venture in to
packaged cow milk, khadi & animal feed this
year . Patanjali uses natural ingredients and
herbs to manufacture its products .they have
state of the art R&D facility, involved in the
latest research in the products which can
benefit their target market .it has few star
products In the products portfolio .
Patanjali cow ghee was worth RS1380 crore
in FY 2015-16,the herbal toothpaste dant
kanti was worth 425 crores. Shampoo and
hair oil under the brand name kesh kanti,did
a turnover of RS325crores.
SOURCE:
https://www.google.co.in/search?q=products+o
f+patanjali&biw=1517&bih=681&source=lnms&
tbm=isch&sa=X&ved=0ahUKEwjjidOapPHRAhW
ILo8KHfgJD
9. PRICE
Patanjali special
Chyawanparsh RS 115
Dabur chyawanparsh
RS 160
Patanjali Honey RS 135
Dabur honey RS 199
Patanjali Soundarya face
cream Rs 60
Pears face wash RS 80
Patanjali corn flakes
mix RS 145
Kellogg's corn flakes
original RS 182
Patanjali products are sold at a price of 15 to 30% lower than that of
competition .except for Patanjali cow ghee, which is sold at premium in
the market, every other product has a market penetration pricing
strategy . the pricing strategy has helped Patanjali establish itself in the
market place.
Establishing Brands which did not consider Patanjali a competition
initially , are now forced to sit and take notice .HUL has reported
slowest growth in revenue in the last 6 years .Colgate ,one of the MNCs
worst hit by the growth since last 4 years .A comparison of few well
known brands of Patanjali Ayurveda with competition
SOURCE:
https://www.google.co.in/search?q=products+of+patanjali&biw=1517&bih
=681&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjjidOapPHRAhWILo8K
HfgJDpMQ_AUIBigB
10. PROMOTION Baba Ramdev through his yoga shrivirs not only talks about the different yoga postures and their benefits in
curing the diseases but also about Patanjali ayurved products adding in a healthy life style and a disease free
life .this is one of the most potent promotion tools also used by PAL
Word of mouth communication
PAL’S advertisement in print & digital media is
readily seen
PAL has also embraced digital marketing and has a well designed facebook page & twitter
account
Public Relation
Patanjali ayurved has its channel on youtube which features more than 200 videos on yoga and
product information
11. DISTRIBUTION
Patanjali's Distribution Muscle There is a huge gap between demand
and supply, admits Acharya Bal Krishna, MD of Patanjali Ayurveda,
who's recently been in the news for his 94% stake in the organization.
(A development touted as a strategic move to take the limelight off
Baba Ramdev who has been the face of the company all this while).
Bal Krishna tells us that besides 1200 Patanjali Chikitsalayas, 2500
Aarogya Kendras, 7000 open stores in villages, and 5600 marketing
vehicles, his team is working ..
Read more at:
http://economictimes.indiatimes.com/articleshow/52306425.cms?ut
m_source=contentofinterest&utm_medium=text&utm_campaign=cp
pst
In addition to that, Patanjali has modern trade tie ups with Big Bazaar and the likes of
Reliance Retail, Hyper city, Star Bazaar (Tata Group), D-Mart, Spencer Retail, More (Aditya
Birla Retail), Apollo Pharmacy, which allows it to cover over 4500 stores across India. Not
to mention now you can order Patanjali products via e-comm sites/apps like Amazon, Big
Basket, and Grofers. But here's the thing: Modern trade only forms ~10% of the FMCG
sales pie, says Vijay Udasi, SVP - sales effectiveness
Read more at:
http://economictimes.indiatimes.com/articleshow/52306425.cms?utm_source=contentofi
nterest&utm_medium=text&utm_campaign=cppst
12. Group sale, profitability & financial position
• According to brickwork ratings Patanjali has bagged Rs.154.70 crore
in FY14 on profitability front and doubled its profits in FY15 at Rs.
308.79 crore.
• The company's Dant Kanti toothpaste posted sales of Rs 450 crore in
2015-16 and Kesh Kanti shampoo and hair oil posted Rs 350 crore
sales in less than a year.
• From the year 2014-2016 patanjali’s sales have been scorching, with
revenues growing at a 55 per cent annual rate when the FMCG market
was inching up at 8-9 per cent.
13. • Patanjali’s market share is just 5 per cent to Colgate’s 55 (Danti kanti).
• In FY15, Patanjali Ayurved reported a 23 per cent operating profit margin with a
16 per cent net profit margin.
• 5 products of patanjali have played a crucial role in company’s revenue growth:
• Patanjali Cow Ghee:Revenue generation of Patanjali Cow Ghee was Rs 1308
crore FY15-16
• Patanjali’s Dant Kanti (toothpaste):posted sales of Rs 425 crore in 2015-16.
• Patanjali Kesh Kanti: Achieved Rs 325 crore sales in less than a year.
• Patanjali Noodles and the final product is aloevera gel.
Future Plans-
• Patanjali aims to hit the target of 10,000 crore annual revenue by the end of Year
2017.
• Company is going to look at an e-commerce strategy and focus on strengthening
our exports to at least 10-12 countries FY17
14. Brand building & Marketing Tactics of
Patanjali.
Patanjali is India’s fastest consumer growing brand.
According to Nielsen Health & Ayurvedic market is of 33,000 crore & has
increased by 6%.
Niche Product Strategy- Shishu care, Herbal Kajal etc.
Aggressive Product launch- Patanjali Corn flakes, shaving cream,jeans Shoes etc.
Advertisement are based on information & awareness driven rather than promotion.
Patanjali Advertisement budget 100Cr V/s H.U.L. 2,500Cr.
100% profit will go for charity.
SWADESHI Strategy.
Targeted audience by fear of diseases & Patriotism.
Environment is created where an alternative is problem solver.
Baba Ramdev & his team tells the evils of MNC’s, Corruption of corporates &
exploitation of farmers & country
15. Co- Branding.
Marketing through spirituality.
Marketing through Yoga Camps.
Data base of people visiting camps & pitching them.
Powerful Partnership with T.V. & telecasting Yoga world wide.
Ex-Aastha Channel early morning
Branded house strategy v/s House of Brands.
All product in one advertisement.
Packaging showing the leaves & herbs.
Strong Brand Association.
Tied up with Amazon to sell its products.
16. Efficient Content & Digital marketing
Case of content & Digital marketing.
The brand Patanjali was associated to
Only health conscious & women's but company wanted this to be also
adopted by age group of 12-35.
Company gave C.Marketing to POKKT- video adds who created
video adds in mobile games as people need to watch videos of
Patanjali & get extra life or power etc in the game environement.
The add unit was optional not intrusive which resulted in brand recall
& +ve association with the brand.
Results – Impression delivered with in a month was 31,50,935 out of
which the completed full video views were 28,44,215.(90%)
20. Recommendation & conclusion
Strengthen their distribution channels.
Avoid falling into the ‘Icarus Paradox’.
Focus on quality.
Come up with chain of naturopathy centres.
Come up with chain of Beauty spas.
Hike All middlemen's margin for pushing the product.
A point to note is that many people are buying Patanjali products
due to the hedonic value attached to the products, so company
must maintain it & continue.