Patanjali Ayurved Ltd is an Indian FMCG company known for its herbal products. It has grown rapidly in recent years to become the 2nd largest FMCG company in India, overtaking older competitors. Patanjali utilizes marketing strategies such as associating with Baba Ramdev, promoting Indian/Ayurvedic products, keeping prices low, extensive advertising, and focusing on health-conscious customers. Its success is attributed to identifying opportunities, strong distribution channels, promoting national pride, and quality herbal products.

2. Case Study On
PATANJALI AYURVED LTD

3. What is FMCG?
• Fast-moving consumer goods (FMCG) or consumer packaged
goods (CPG) are products that are sold quickly and at relatively low
cost. Examples include non-durable goods such as packaged
foods, beverages, toiletries, over-the-counter drugs and many
other consumables. In contrast, durable goods or major appliances
such as kitchen appliances are generally replaced over a period of
several years.
• FMCG companies in India- Emami, Dabur, ITC , Brittania, Parle Agro
etc.

4. Characteristics of FMCG
• From the consumer's perspective
– Frequent purchase
– Low involvement (little or no effort to choose the item)
– Low price
– Short shelf life
– Rapid consumption
• From the marketer's perspective
– High volumes
– Low contribution margins
– Extensive distribution networks
– High stock turnover

5. Patanjali over other FMCG companies
• Patanjali Ayurved Ltd, the fast-moving consumer goods
company endorsed by Yoga guru Baba Ramdev, has
overtaken several older and more experienced rivals in the
year through March 2017.
• The company reported revenue of Rs 9,346 crore from its
FMCG business for 2016-17, it said on Thursday. Total
group revenue including sales from Divya Pharmacy, the
Ayurveda medicine division, touched Rs 10,561 crore.
• Patanjali is the country’s second-largest FMCG company
and the third-largest by FMCG business.

7. Introduction- Patanjali
• Patanjali Ayurved Limited is an Indian FMCG company.
• The company manufactures
mineral and herbal products.
• According to CLSA and HSBC,
Patanjali is the fastest growing
FMCG company in India.

8. Foundation
• Acharya Balkrishna established the Patanjali Ayurved
Limited in 2006 along with Swami Ramdev with the
objective of establishing science of Ayurveda in
accordance and coordination with the latest technology
and ancient wisdom.
• Manufacturing units and headquarters are located in the
industrial area of Haridwar while the registered office is
located at Delhi.

10. Initial Stages of Marketing
• Started their operation in 2009.
• Started selling Medicines.
• Less Advertisements
• No exclusive stores.
• Main revenue from Shivir counters and Medical Shops.
• Less revenue upto2012.

11. Entry in FMCG market
• In March 2012 Swami Ramdev announced entry of
Patanjali in fast moving consumer goods and herbal retail
market.
• Launched Herbal Cosmetics and Herbal Toothpastes.
• DantKanti was a big hit.
• Heavy expenditure in advertisements.
• Started providing franchises for exclusive stores.

12. Marketing Strategies
• Patanjali Ayurved Ltd has in their key face Swami
Ramdev- a famous personality. This is a bg hit for the
company.
• Promoting the concept of “Swadeshi” , giving emphasis on
India’s self-independence.
• Promoting an Indian product made with indigenous
ingredients and following the culture of ancient and
traditional India.
• Promoting organic nature of the product- a must product
for all health conscious people.

13. • Prices of the product has been kept very low in
comparison to the products of its kinds.
• Covering a wide range of products of daily needs.
• Huge expenditure on advertisements.
• Advertisements are done technically to promote
its organic nature, a product of perfect match with
India’s culture and tradition , and of course the
concept of Swadeshi.

14. Key to success
• Increasing number of health-conscious people.
• Less price
• Strong distribution channels
• Strong brand association with health
• Simple packaging, that gives it a ‘natural’ look
• Media promotions
• Word-of-mouth promotion

15. Market segmentation
• Patanjali Ayurved Ltd have such distinctive market
segmentation strategy.
• It tries to bring in its span middle class and lower class
people who are health conscious , however fails to afford
costly products.
• It tries to promote the organic mindset of the people
• It has products which satisfies the daily needs of the
common man.
• It ignites the feeling of Swadeshi which is a good
promotional strategy for selling products to Indian citizens.

16. Marketing mix
• Product- Organic products, ayurvedic and herbal
• Price- Comparatively lower price than the products of its
kinds.
• People- Aims at health conscious people
• Promotion- Huge advertisements, ignites the “Swadeshi”
feeling, promotion of organic products.
• Place- Opening a large number of patanjali stores in rural
and urban markets. Availabality of Patanjali products in
rural markets.

17. Oppurtunist attitude of Patanjali
• Patanjali always had opportunist attitude. In early 2000’s
when people started doing
yoga and became health
conscious then Patanjali brings
Ayurvedic Juices and medicines.
• When Maggi was banned in India they bring Atta noodle
in the market to capture the market of Maggi.
• Patanjali always had their hammer ready when the iron
was red hot.

18. Financial Data of Patanjali
• Revenue in Finance Year 2016-17 crossed 10000
Crores.
• Patanjali is expecting
that the revenue
will be 20000 Crores
in 2017-18.
• More than 2,00,000
Employees.

19. Production units of Patanjali
• Patanjali Food and Herbal Park at Haridwar is the main
production facility.
• Capacity of ₹350 billion.
• In the procession of expending the capacity to ₹600 billion
through new plants in Noida, Nagpur and Indore.
• Many other production units in Haryana and Uttarakhand
operating by subsidiaries of Patanjali.

20. Products range
Products of Patanjali fulfil the daily requirements of a
common man at a reasonable price which are very much
hygienic in nature and are organic in nature. Patanjali has
been producing more than 1000 products ranging from
• Natural Food Products
• Natural Health care
• Natural Personal Care
• Ayurvedic Medicines
• Herbal Home Care
• Patanjali Publications

26. Success of Patanjali
• Chain of more than 300000 distributers with maximum is
small towns and villages.
• More that 5000 exclusive Swadeshi stores.
• Consumer Reach of more than 50 Million.
• Online sales.
• Planning to open outlets at railway stations and airports.
• Sales in Future Bazaar outlets.
• Planning to expand coverage in Global Market.

27. Improvement Suggestions
• Strengthen their distribution channels
• Avoid falling into the ‘Icarus Paradox’: It refers to the
phenomenon of businesses failing abruptly after a
period of apparent success, where this failure is brought
about by the very elements that led to their initial
success
• Focus on quality

28. Conclusion
• Despite being at an initial stage Patanjali has given a headache to
many marketers with its unconventional ways of marketing. It has
disrupted the whole FMCG sector and bought a revolution in the
industry in a very short span of time.
• Patanjali follows a ‘Branded House’ strategy whereas other
companies in the consumer goods sector like P&G and HUL follow a
‘House of Brands’ strategy.
• It’s clear that Baba Ramdev understood the fact that without a solid
foundation, one will always have trouble creating anything of value.
From building a strong community before launch, to bringing back
Swadesh in our country, it looks like he took all the right decision or
maybe took the decisions and then made them right.