This document provides an overview of Patanjali Ayurved Limited, an Indian FMCG company founded in 2006 by Balkrishna and Baba Ramdev. It summarizes Patanjali's path-breaking sales and distribution strategy that has driven exceptional growth, scaling distribution in a competitive retail environment despite low retail and advertising spends. The document also reviews Patanjali's product portfolio, pricing, placement, promotion strategies as well as its target segment, positioning and revenue statistics. Plans for expansion into new product categories, services and manufacturing are also outlined.

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G O E N K A C O L L E G E O F C O M M E R C E A N D
B U S I N E S S A D M I N I S T R A T I O N
Patanjali
Ayurved Limited

2. PATANJALI
- Prakriti ka ashirwad
The Patanjali Ayurved Limited is an Indian FMCG
company. Founded in 2006 by Balkrishna, Baba
Ramdev . Manufacturing units and headquarters
are located in the indusrtial area of Haridwar while
the registered office is located at Delhi. The
company manufactures mineral and herbal
products.

3. Strategy
 Patanjali Ayurved, has seen a meteoric rise in the
past few years with revenues of ₹5,000 crore in
FY16 from ₹450 crore in FY12. While
Patanjali’s combination of low prices,
‘natural and pure’ proposition and ‘swadeshi’
positioning are widely acknowledged to be the
reasons behind success, what is not that well
known is the critical role played by Patanjali’s
path-breaking sales and distribution strategy
in driving this exceptional growth trajectory.

4. Strategy
 Patanjali can offer low prices to consumers due
to very low selling, administrative and
general costs at 2.5 per cent of revenues.
Advertising spend in FY 16 at 6 per cent is also well
below the peer set. Critically, it has kept retail
margins at half or lower levels as compared to
competition. Patanjali scaled up distribution
in an intensely competitive retail FMCG
environment in India despite low retail and
A&P spends.

5. 4 p’s
 Product
 The product range of Patanjali had more than 400 types of FMCG
goods like cosmetic products, food items, haircare, skincare, toothcare
etc.
 Price:
 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.
 Place
 Patanjali has managed to reach a wide population in a short span of
time.
 Promotion
 The promotion and branding in Patanjali marketing mix utilises all
media channels like print, TV, online ads, billboards etc.

6. STP
 Segment
 People looking for healthy FMCG products
 Target Group
 Middle and upper middle class families who prefer
ayurvedic products
 Positioning
 Patanjali offers healthier and safer products in the
FMCG category

7. Statistics
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1000
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3000
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2005 2010 2015 2020
REVENUE (in cr)
REVENUE (in
cr)

8. New products and services
 Child care & Baby food.
 Restaurant chain “POSTIK” .(Currently in Punjab)
 opening exclusive patanjali malls.
 Due to crisis of raw materials, ayurvedic trees and
components being scarce patanjali not only started
cultivation but also motivates farmers to produce
ayurvedic trees, leading to job creation.
 Clothing line .

9. Things they are planning .
 Making online tie-up. (with for eg-Amazon,Flipkart)
 New setups and manufacturing plants.
 Creating Food parks in Andhra Pradesh , Madhya
Pradesh, North east .
 (This will be an act of csr .) as many farmers are
committing suicide patanjali is taking initiatives to
generate more employment among farmers .

10. Things to Reengineer
 They follow a Direct channel which decreases their
reach.
 Plan for a new brand ambassador to attract youth
(e.g. Noodles, power vita, chocolate bars ).
 Most of the products are not recognized . (more
advertisement)
 Competitors are moving their way tackling and
planning to face the real competition. (e.g. cibaca by
Colgate)

11. Thank You.