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PROJECT REPORT

ON

A STUDY OF MARKETING STRATEGY OF PATANJALI.

Submitted in partial fulfillment of requirement of Bachelor of Business


Administration (B.B.A) General

BBA VIth SEMESTER


BATCH 2015-2018

Submitted to: Submitted By:


Ms. Reeta Nagari MOHIT SAXENA
40424501715

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL


KALKAJI

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ACKNOWLEDGEMENTS

A lot of effort has gone into this training report. My thanks are due to many
people with whom I have been closely associated. I would like all those who have
contributed in completing this project. First of all, I would like to send my sincere
thanks to Ms.REETA NAGARI for her helpful hand in the completion of my
project.

I would like to thank my entire beloved family & friends for providing me monetary
as well as non – monetary support, as and when required, without which this
project would not have completed on time. Their trust and patience is now
coming out in form of this project.

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CERTIFICATE

This is to certify that the Project Report titled “A STUDY OF MARKETING


STRATEGY OF PATANJALI.” is an academic work done by MOHIT SAXENA,
Enrolment Number 40424501715 submitted in the partial fulfillment of the
requirement for the award of the degree of Bachelor of Business Administration
at Jagannath International Management School, Kalkaji, New Delhi, under my
guidance and direction.
To best of my knowledge the report is original and has not been copied or
submitted anywhere else. It is an independent work done by her.

Signature :
Ms.REETA NAGARI
JIMS, Kalkaji, New Delhi

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CONTENTS

Title Page Certificate of completion Page No.

Acknowledgement 2

Certificate of completion 3

Contents with page no. 4

Executive Summary 5

Introduction 6

Objective 15

Literature Review 17

Company Profile 51

Research methodology 65

Analysis and Findings 69

Limitations 80

Recommendations 81

Conclusions 82

Appendices 84

Biblography 86

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EXECUTIVE SUMMARY

Marketing through spirituality has become a significant topic of discussion as it


affects the consumption behavior of people. Therefore, spiritual organizations are
launching and selling their own products for the customers to capture the market.
Here, in this study, yoga and pranayam are considered as the dimensions of
spirituality and it is observed that people generally rely on a spiritual guru for
performing yoga and pranayam. Swami Ramdevji is the most famous guru in
teaching yoga and pranayam in India and he, through PatanjaliYogpeeth, has
launched several products not only based on ayurvedic medicines but also on
FMCG. Hence, this paper talks about marketing through spirituality through the
case study and success story of PatanjaliYogpeeth. The research uses a
qualitative approach to collect data from various officials of PatanjaliYogpeeth
through unstructured face-to-face interviews. The study revealed that yoga and
pranayam are very effective tools in marketing through spirituality and influence
the consumption behavior of masses. PatanjaliYogpeeth is best suited example
to study the present topic.

This study seeks to understand the growth of Procter & Gamble through the in-depth
analysis of marketing strategies it has adopted over a long period of time to stay
ahead in the market place. This study explains how PATANJALI has maintained its
position by exploring the strategies. The study also explains how PATANJALI
became the world leader billion dollar brand from a local candle and soap maker.
Further it seeks how CSR and Advertising help PATANJALI to create and brand
image for quality and innovation.

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CHAPTER-I
INTRODUCTION

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India’s FMCG sector is the fourth largest sector in the economy and creates
employment for more than three million people in downstream activities. Its
principal constituents are Household Care, Personal Care and Food &
Beverages. The total FMCG market is in excess of Rs. 85,000 Crores. It is
currently growing at double digit growth rate and is expected to maintain a high
growth rate. FMCG Industry is characterized by a well-established distribution
network, low penetration levels, low operating cost, lower per capita consumption
and intense competition between the organized and unorganized segments.

The Rs 85,000-crore Indian FMCG industry registereded a healthy growth in the


third quarter of 2008-09 despite the economic downturn. Unlike other sectors, the
FMCG industry did not slow down since Q2 2008 and registered a double digit
growth rate. The industry is doing pretty well, bucking the trend. As it is meeting
the every-day demands of consumers, it will continue to gro. Market share
movements indicate that companies such as Marico Ltd and Nestle India Ltd, with
domination in their key categories, have improved their market shares and
outperformed peers in the FMCG sector. This has been also aided by the lack of
competition in the respective categories. Single product leaders such as Colgate
Palmolive India Ltd and Britannia Industries Ltd have also witnessed strength in
their respective categories, aided by innovations and strong distribution. Strong
players in the economy segment like Godrej Consumer Products Ltd in soaps and
Dabur in toothpastes have also posted market share improvement, with revived
growth in semi-urban and rural markets.

By 2015, the sector is predicted to scale up to US$33.4 billion. The sector


generates 5% of total factory employment in the country and is creating
employment for three million people, especially in small towns and rural India.

With more players entering the FMCG sector, particularly the skin care, hair care,
deodorants, convenience foods, and health foods markets,

• Indian consumers have more choices than ever.

• Some are even willing to pay premium prices for their “higher” aspirations

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• Margin are becoming thinner for FMCG players as they battle higher raw
material costs and invest more in marketing, slick packaging and distribution
networks to gain volume and retain/gain market shares

Industry Analysis:

India’s FMCG Market Size (In USD Billion)

Industry Dynamics:

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Higher Penetration of the Rural Population

Many companies are deepening their penetration in the rural areas as:

 The FMCG sector in the urban areas is becoming quite saturated (though it will
continue to dominate in the next 8 – 10 years) while the penetration in the rural
areas are only about 1%.
 The rural areas have and will continue to make up more than 50% (153 million)
of India’s total households and accounting for more than its current 66%
contribution to total FMCG consumption.
 Rural India has a large consuming class with 41 per cent of India's middle-
class and 58 per cent of the total disposable income.
 Currently, nearly 34% of the offtake of FMCG companies come form rural
areas. Companies like PATANJALI , ITC and Colgate have already established
good distribution networks in these regions. Other companies would start
catering to these regions in near future.
 Between 2005 and 2010, the FMCG sector in the rural and semi-urban areas
will experience some 50% growth, at a CAGR of 10% and increase its market
size to nearly US$ 23 billion from the 2005 level of US$11.4 billion

Demand for FMCG products is set to boom by almost 60 per cent by 2007 and
more than 100 per cent by 2015. This will be driven by the rise in share of middle
class (defined as the climbers and consuming class) from 67 per cent in 2003 to
88 per cent in 2015. The boom in various consumer categories, further, indicates
a latent demand for various product segments. For example, the upper end of
very rich and a part of the consuming class indicate a small but rapidly growing
segment for branded products. The middle segment, on the other hand, indicates
a large market for the mass end products. The BRICs report indicates that India's
per capita disposable income, currently at US$ 556 per annum, will rise to US$
1150 by 2015 - another FMCG demand driver. Spurt in the industrial and services
sector growth is also likely to boost the urban consumption demand.

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Swot Analysis of FMCG sector in India

Strengths:

• Low operational costs

• Presence of established distribution networks in both urban and rural areas

• Presence of well-known brands in FMCG sector

Weaknesses:

• Lower scope of investing in technology and achieving economies of scale,


especially in small sectors

• Low exports levels

• "Me-tooʺ products, which illegally mimic the labels of the established brands.
These products narrow the scope of FMCG products in rural and semi-urban
market.

Opportunities:

• Untapped rural market

• Rising income levels, i.e. increase in purchasing power of consumers

• Large domestic market- a population of over one billion.

• Export potential

Threats:

• Removal of import restrictions resulting in replacing of domestic brands

• Slowdown in rural demand

• Tax and regulatory structure

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Industry Category and Products:

Household Care

Personal Wash:-

The market size of personal wash is estimated to be around Rs. 8,300 Cr. The
personal wash can be segregated into three segments: Premium, Economy and
Popular. The penetration level of soaps is 92 per cent. It is available in 5 million
retail stores, out of which, 75 per cent are in the rural areas. PATANJALI is the
leader with market share of 53 per cent; Godrej occupies second position with
market share of 10 per cent. With increase in disposable incomes, growth in rural
demand is expected to increase because consumers are moving up towards
premium products. However, in the recent past there has not been much change
in the volume of premium soaps in proportion to economy soaps, because
increase in prices has led some consumers to look for cheaper substitutes.

Detergents:-

The size of the detergent market is estimated to be Rs. 12,000 Cr. Household
care segment is characterized by high degree of competition and high level of
penetration. With rapid urbanization, emergence of small pack size and sachets,
the demand for the household care products is flourishing. The demand for
detergents has been growing but the regional and small

unorganized players account for a major share of the total volume of the
detergent market. In washing powder PATANJALI is the leader with 38 per cent
of market share. Other major players are Nirma, Henkel and Proctor & Gamble.

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Personal Care

Skin Care:-

The total skin care market is estimated to be around Rs. 3,400 Cr. The skin care
market is at a primary stage in India. The penetration level of this segment in
India is around 20 per cent. With changing life styles, increase in disposable
incomes, greater product choice and availability, people are becoming aware
about personal grooming. The major players in this segment are Hindustan
Unilever with a market share of 54 per cent, fol-lowed by CavinKare with a
market share of 12 per cent and Godrej with a market share of 3 per cent.

Hair Care:-

The hair care market in India is estimated at around Rs. 3,800 Cr. The hair care
market can be segmented into hair oils, shampoos, hair colorants & conditioners,
and hair gels. Marico is the leader in Hair Oil segment with market share of 33
per cent; Daburoccu-pies second position at 17 per cent.

Shampoos:-

The Indian shampoo market is estimated to be around Rs. 2,700 Cr. It has the
penetration level of only 13 per cent in India. Sachet makes up to 40 per cent of
the total shampoo sale. It has low penetration level even in metros. Again the
market is dominated by PATANJALI with around 47 per cent market share;
PATANJALI occupies second position with market share of around 23 per cent.
Antidandruff segment constitutes around 15 per cent of the total shampoo market.
The market is further expected to increase due to increased marketing by players
and availability of shampoos in affordable sachets.

Oral Care:-

The oral care market can be segmented into toothpaste - 60 per cent;
toothpowder - 23 per cent; toothbrushes - 17 per cent. The total toothpaste
market is estimated to be around Rs. 3,500 Cr. The penetration level of

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toothpowder/toothpaste in urban areas is three times that of rural areas. This
segment is dominated by Colgate-Palmolive with market share of 49 per cent,
while PATANJALI occupies second position with market share of 30 per cent. In
toothpowders market, Colgate and Dabur are the major players. The oral care
market, especially toothpastes, remains under penetrated in India with
penetration level 50 per cent.

Personal Care Products’ Market Sizes (In USD Million)

Food & Beverages

Food Segment :-

The foods category in FMCG is gaining popularity with a swing of launches by


PATANJALI , ITC, Godrej, and others. This category has 18 major brands
aggregating Rs. 4,600 Cr. Nestle and Amul slug it out in the powders segment.
The food category has also seen innovations like softies in ice creams, ready to
eat rice by PATANJALI and pizzas by both GCMMF and Godrej Pillsbury.

The size of the food processing industry exceeds US$65.6 billion.

• The size of the semi-processed/ready-to-eat food segment is over $1.1 billion.

Of the food processing industry,

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 Bread and biscuits sales exceeds US$1.7 billion;
 Health beverage sales exceeds US$ 230 million;
 Ice cream exceeds US$188 million
 Chocolates sales exceeds US$73 million

• The soft drink (carbonated beverages and juices) market is in excess of US$1
billion, predominantly urban (>70%), and its consumption is highly seasonal.

• Major players in this segment include Hindustan Lever, Nestle, Cadbury and
Dabur

Tea :-

The major share of tea market is dominated by unorganized players. More than
50 per cent of the market share is capture by unorganized players. Leading
branded tea players are PATANJALI and Tata Tea. In the hot beverage market,
tea rather than coffee dominates. Coffee is consumed largely in the southern
states.

Coffee :-

The Indian beverage industry faces over supply in segments like coffee and tea.
However, more than 50 per cent of the market share is in unpacked or loose
form. The major players in this segment are Nestlé, PATANJALI and Tata Tea.

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OBJECTIVE

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OBJECTIVES OF THE STUDY

 To identify the factors that has led to the success of PATANJALI over a long
period of time to stay ahead in the market place.

 To analyze the advertisement and corporate social responsibility budgets of


PATANJALI to make (sustain) brand image

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CHAPTER-II
LITERATURE REVIEW

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Sales promotion decisions are significantly affected by whether the company
decides to do to pull or push strategies to accomplish its objectives. Such a
decision may require a little or a lot of cooperation from resellers. The
requirements to implement one strategy might be little more than to just stock the
product by the retailers. The other strategy may demand more participation from
resellers such as the ability to explain to the consumers as to how a product
works.
In case of using a pull strategy, marketing efforts are directed at the ultimate
consumer and consumer promotions such as consumer contests and
sweepstakes, rebates, coupons, free samples, consumer premiums, etc are
used. If this strategy is also chosen to include advertising, there are large
advertising expenditures. The objective of such promotional efforts would be to
create sufficient consumer demand to pull the product through the channels, that
is the consumers are encouraged to demand the product from retailers who in
torn place orders with wholesaler or manufacturer to meet the consumer
demand.
PULL
This strategy may require little promotional efforts from the resellers except to
stock input the product on shelves.
A pull strategy is appropriate when
 The product demand as high.
 It is possible to differentiate the product on the basis of real or emotional
features,
 Brand consumers show high degree of involvement in the product
purchase,
 There is reasonably highly brand loyalty and consumers make brand
choice decision before they go to the store.
PUSH
If a firm decides to use push strategy, its efforts are directed at resellers and the
manufacturer becomes very dependent on their personal selling abilities and
efforts. The promotional efforts are focused at pushing the product through the
distribution channels; the resellers may be required to display, demonstrate and
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offer discounts, to sell the product. The communication to resellers is generally
through trade circulars or the sales force.
PUSH

Push strategies generally appropriate for product categories where there is low
brand loyalty and many acceptable substitutes are available in the market. It
may also be suitable for relatively new products or when the brand choice is
often made in response to displays in the stores, the product purchase is
unplanned or on impulse and the consumer is familiar and has reasonably
adequate knowledge about the product. Manufacturers, who cannot afford to
engage in sustained mass advertising, often use push strategy and offer effective
incentives to dealers.
Retailer promotion: Buy Cadbury’s products worth Rs.3000/- and get any 30
chocolates worth Rs.5 each free.
Through this offer the company is pushing its product to the retailers and now
that the retailer has enough incentive the retailer stocks more and thus it
becomes essential for the retailer to push the product to the consumers.
Pull promotions Push promotions Push promotions
(Manufacturer to consumer) (Offered to trade) (Offered by retailer)

Product life cycle and pull or push strategies


It is quite important for brand managers to analyze and identify the stage of a
particular brand in its life cycle before deciding about using sales promotion.
During the stage of product introductions, a product requires different sales
promotional tactics.
Likewise, during the product growth stage, its maturity and the decline stages,
the sales promotion tactics required are likely to be quite different. Promotional
strategies are also likely to be affected for different non-durable and durable
products. Also important in the development of promotional strategy would be
the target audience is towards whom the
 Introduction stage

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When the product is being introduced, the major objective is to increase the trial
rate and distribution of the product. For increasing trial sampling, coupons,
demonstration which are all pull promotions, can be used. To make the product
available in distribution channels, it may become necessary to use some kind of
incentive scheme for the resellers to encourage them and minimise their risk
associating stalking a new product. Manufacturers can offer display allowances
to resellers to make the product highly visible. There could be liberal guarantees
to take back the stocks, if unsold, to reassure the trader. These are all push
promotions. For most new products, it would be difficult to be successful without
pull promotions. In fact when new products are introduced, much more
emphasis is given to pull rather than push promotions.
 Cadbury is introducing the new brand bytes having an introductory offer
Rs5 off which will be available through the coupons that are distributed
with newspapers like the Times of India.
Growth stage
In this stage, the dominant objectives are to expand the market for increasing the
number of new customers who would try the product for the first time and to
encourage the repeat purchase by those who have already tried the product.
Another important objective is to expand or at least maintain the distribution. For
increasing trial, pull promotions are appropriate however as the trial rate
increases free samples become quite an expensive proposition. To encourage
repeat purchase by consumers, in pack or on-pack coupons can be used.
This would also help in converting those customers who have already tried the
product into regular users of the product. Another tool of sales promotion that
can be used is to offer bonus packs containing additional quantity at the same
price as an incentive to encourage repeat purchase. To expand the distribution,
push promotions such as different types of discounts, free goods that increase
the profitability of the trade, can be used.
 Maturity stage
When the product is in maturity stage, many similar brands are available to
customers. Due to price discounts or other extra benefits, consumers often
switched brands. This phenomenon of brand switching is more common if the
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product category happens to be one of low involvement. The sales promotional
strategy in this stage can focus on attracting maximum number of brand
switchers, reward and reinforce the loyalty of regular users and use more of push
promotions to build inventories with resellers. Many tools of sales promotion
such as premiums, price discounts, extra goods, displays, dealer contests,
feature advertising become important.
Generally a combination of pull and push promotions prove more effective during
maturity stage of a product life cycle. The market share of the brand is an
important factor in gaining the support of resellers.
Techniques Of Sales Promotions
Consumer market sales Trade sales promotions Sales force sales
promotions promotions

Price discounts Off-Invoice Allowance Sales contests


Price pack deals Buying allowance Incentives
Rebates/refunds Display and advertising Awards and prizes
allowance
Continuity programs Buy back allowance Premiums (gifts)
Coupons Bill back allowance Sales meetings
Samples Count and recount Training
Allowance
Contests and sweepstakes Slotting allowance Sales manuals etc.
Premiums and advertising Merchandise allowance
specialties
Free trials POP displays
Brand placement Cash rebate
Event sponsorship Free goods
Product warranties Trade coupons
Exchange offers Dealer listing
Internet promotions Dealer loaders
Low interest financing Sales contests
Free service camps SPIFFS (push money)
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Incentives
Sales training programs
Trade shows
Consumer sales promotions
Sales promotions directed at the end-user, whether by the manufacturer or the
retailer, are called consumer sales promotions. Manufacturer announced
promotions to consumers are based on ‘pull’ strategy of the manufacturer and
retailer announced promotions to consumers constitute ‘push’ strategy of the
retailer.
Objectives of consumer market sales promotions
The following basic objectives can be pursued with sales promotions in the
consumer market.
 Stimulate trial purchase
When a firm wants to attract new users sales promotions tools can reduce the
consumer’s risk of trying something new. A reduced price or offer of a rebate
may stimulate trail purchase.
 Pantene when it was launched did a lot of sampling, to stimulate trail
purchase. Their efforts have surely shown results, with Pantene being one
of the top selling brands in India today.
 Stimulate repeat purchases
In-package coupons good for the next purchase, or the accumulation of points
with repeat purchases, can keep consumers loyal to a particular brand.
The most prominent frequency programs are found in the airline industry where
competitors try to retain their most lucrative costumers by enrolling them for
various perks such as frequent flyers can earn free travel, hotel stays, gifts etc.

Stimulate larger purchases


Price reductions or two-for-one sales can motivate consumers to stock up on a
brand, thus allowing firms to reduce inventory or increase cash flow.
Many soaps brands are doing sales promotions to stimulate larger purchases.
When people generally come to buy soaps, and see the offers like,
 Introduce a new brand
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Because sales promotions can attract attention and motivate trial purchase, it is
commonly used for new brand introductions.

 Combat or disrupt competitors strategies


Because sales promotions often motivate consumers to buy in large quantities or
try new brands, they can be used to disrupt competitors marketing strategies. If a
firm knows that one of its competitors is launching a new brand or initiating a new
advertising campaign, a well-timed sales promotions offering deep discounts or
extra quantity can disrupt the competitor strategy. Add to the original discount an
in-package coupon for future purchases, and a marketer can severely
compromise competitor’s efforts.
Contribute to Integrated Marketing Communications
In conjunction with advertising, direct marketing, public relations and other
programs being carried out by a firm, sales promotions can add yet another type
of communication to the mix. Sales promotions suggest an additional value, with
price reductions, premiums, or a chance to win a prize.

Techniques of consumer sales promotions

 Price discounts or price-off deals.


Price deals are probably the most commonly used promotional techniques. A
price deal for a customer means a reduction in the price of the promoted product
and the consumer saves money on purchase.
 Boost 500gm pack, Rs. 10 off on normal price, now available at Rs. 90
only.
Price discounts are communicated through POP advertising, window displays,
sales people, advertising in newspapers, magazines and TV ads.
Determining the quantum of discount depends on the consumer’s price
perceptions and may be difficult to decide.
Such promotions work very well in gaining the attention of consumers,
particularly at the point of purchase among similar brands and may also
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encourage unplanned or impulse buying. If there are three different models of a
product and because of the discount offered the price of the higher end model is
appears, not too high to the consumer as compared to the lesser priced model,
then the consumer may buy the higher end model.
The main advantage of this tool is that it has a very Strong consumer response
Such discounts offer immediate value and strong consumer response.
The Flexibility and convenience of implementation is another advantage. Price
offers are extremely flexible in the sense that the producer has total control on
the number of units being promoted and the market area in which the offer will be
given. If different packs of the same brand are available, the marketer can
choose the one size that is not selling well.
A discount offer may rapidly lose its advantage if competitors announce a similar
offer. In fact, competitors are very likely to retaliate leading to the danger of
triggering a promotion wall in which no one benefits except the consumer.
Such discounts are short term and are unlikely to produce any long-term gains
because the incentive is to purchase now by creating sense of urgency. When
the discount is withdrawn the sales may fall below the level of pre-promotion
period. And in the long run the sales would return to pre-promotion period level.

 Price pack deals


Price pack deals are also called value packs.
They can take any of the two forms: one is bonus pack and banded pack.
In case of a bonus pack, an additional quantity of the same product is offered
free when the standard pack size of the product is purchased at the regular price.
 Cadbury temptation offers 10% extra free. 200gms+20gms
 Boost 500grm jar gives 20% more free.
A variation of this offer is when the marketer develops special packs of the
product containing more quantity but the price is proportionately low. This is a
method to “load” the consumer up with the product. This technique is often used
to introduce a new large size of the product or to encourage continued usage and
also to increase consumption.

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The offer is termed as “banded pack” when 2 or more units of the products are
sold at a reduced price compared to the regular price.
Another variation of this technique is “buy 1 get 1 free” or some similar offer, it
could be “same for less” or “more for the same.”
The main advantage of this tool is that extra product may encourage increased
usage and help sustain the habit. Also among other similar brands, a bonus pack
stands out at the point of sale.
 Refunds And Rebates
Refund is the repayment of total money paid for purchase, while the rebate
represents repayment of only part of the money paid for the purchase. Refund
offers seems to work very well in guaranteeing the trial of a product or service
since there is no risk involved for the customer because of the promise of total
refund of the purchase amount.
Refunds and Rebates play an important role in the consumer durable segment
because the product price is reduced to a great extent because of the rebate
offer.
 Coupon
A coupon entitles a buyer to a designated reduction in price for a product or
service. Coupons are the oldest and most widely used form of sales promotions.
Coupons bear an expiry date and cannot be redeemed after the cut off date.
Coupons can be of 3 types:
 Direct to the consumer
 Media distributed
 Product distributed.
The main Advantages of coupons are:
 Encourage brand switching
 Stimulate trial for a product
 Take off the attention from price
Many companies to create more product trials has coupons in the newspapers
and magazines which avail you some rupees off on thereproducts Contests And
Sweepstakes Contests and sweepstakes can draw attention to a brand like no
other sales promotions technique. A contest has consumers compete for prizes
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based on skill or ability. Winners in a contest are determined by a panel of judges
or based on which contestant comes closest to a predetermined criterion for the
contest. Contests tend to be somewhat expensive to administer because each
entry must be judged against winning criteria. Contests were very often used
earlier where people has to write slogans, poems, stories etc. generally “I like the
product because …” and the best ones won prizes. But off lately, contests are
becoming less and sweepstakes increasing. People are more willing to play on
luck rather than participate by showing their abilities. A sweepstake is a
promotion in which winners are determined purely by chance.
Consumers need only to enter their names in the sweepstakes as a criterion for
winning. Some popular types of sweepstakes also use “scratch-off cards”.
Contests and sweepstakes often create excitement and generate interest for a
brand, but the problems of administering these promotions are substantial.
One problem is that the game itself may become the consumer’s primary focus,
while the brand becomes secondary. The technique thus fails to build long-term
affinity for the brand.
 Britannia khao world cup jao campaign has taken the market by a swing.
Under the offer you collect points available on Britannia biscuit packets and
exchange 100 points for a scratch card, which has various gifts and the 100
world cup tickets. The offer was actually introduced during the last world cup and
had shown phenomenal results. Sale increased tremendously; there was an
increase in the sales by 25%, claims the company. So it is being done this year
too. This year too the contest is showing good results.
 Sampling
Getting consumers to simply try a brand can have a powerful effect on future
decision-making. Sampling is a sales promotion technique designed to provide a
consumer with an opportunity to use a brand on a trial basis with little or no risk.
Saying that sampling is a popular technique is an understatement. Sampling is
particularly useful for new products, but should not be reserved for new products
alone. It can be used successfully for established brands with weak market share

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Techniques used in sampling:
 In-store sampling
 Door-to-Door sampling
 Newspaper sampling
 On-package sampling
 Mobile sampling
Trial offers
Trial offers have the same goal as sampling – to induce consumer trial use of a
brand- but they are used for more expensive items.
Ex: exercise equipment, appliances, consumer electronics, etc. the expense to
the firm of course can be formidable. Segments chosen for this sales promotion
technique must have high sales potential.
 Premiums and advertising specialties
Premiums
They are items offered free or at a reduced price, with, the purchase of another
item. Many firms offer a related product free.
There are 2 options available for the use of premiums:
1. A free premium provides consumers with an item at no cost, the item is
included in the package of the purchase item.
2. A self-liquidating premium requires a consumer to pay most of the cost of
the item received as a premium. In this promotion offer the consumer is
required to send a specified sum of money along with a proof of purchase
to claim the premium.
Premiums have become very common today. Many companies are offering lots
and lots of premiums. The main advantage of Premiums is that they offer not
only that one product but also another product, which may influence the
customer, a lot to buy the product. Especially if the other product is worth it.
Also new products are given free with established brands to stimulate trial of the
new brand.
 Buy a Cadbury Bournvita and get a dairymilk worth rs 10 free
Advertising specialties
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Popular advertising specialties are caps, t-shirts, toys, mugs, mouse pads, pens,
calendars, etc.
Advertising specialties have 3 key elements:
A message placed on a useful icon, and given to consumers with no obligation.
 Pepsodent toothpaste 100gm pack get free dental insurance worth
Rs.1000, this is a very effective strategy because it is giving you’re the
guarantee that nothing can happen to your teeth. The Rs.1000 insurance
speaks a lot for its brand and its product thrust.
 Buy any Nestle chocolate and get tatoo free.
Many other kids products are influence a lot by such specialties especially liked
by the kids like tattoos, masks, tazo, cricket bats etc. hence products that have
such offers sell more than the other brand available.
 Ruffles lays, get free Tazo,
 Rasna, get free Prankies
Continuity/frequency Programmes
In recent years, one of the most popular sales promotion techniques among
consumers has been “frequency Programmes”. The main objective of such
Programmes is encouraging repeat purchases or repeated visits to particular
retail shops. Frequency Programmes offer consumers discounts or free product
rewards for repeat purchase or patronage of the same brand or company.
sBrand placement
Brand placement often referred to, as product placement is the sales promotions
technique of getting a marketer’s brand featured in movies and television shows.
The use of a brand by actors and actresses or the mere association of the brand
with a popular film/ television show can create a positive image and have a huge
impact on the sales of a brand.
Marketers and advertisers used to think that brand placements affected only
consumers’ perceptions of a brand, much like advertising. But recent brand
placements have shown that the technique can have a sales impact like a
traditional sales promotions.

28
Brand placement has varying results; if the brand name is spoken aloud the
impact can be dramatic but less obvious placements, referred to as background
placements are considered by some as a waste of money.
 Coke in Yaadein , Pepsi in Khushi
 Pass Pass in Yaadein
Event sponsorship
When a firm sponsors or co-sponsors an event such as a rock concert, a cricket
match, etc. the brand featured in an event immediately gains credibility with the
event audience. The audience attending an event already has a positive attitude
and affinity for the contest – they choose to attend. When this audience
encounters a brand in this very favourable reception environment, the brand
benefits from the already favourable audience attitude.
 Coke and Pepsi keep sponsoring many events.
 Exchange offers
If a family bought a refrigerator 10 years ago and the machine is still giving
reasonable service then the family is unlikely to buy a newer and more advanced
version of the refrigerator unless they get rid of the older one by selling it to our
country is prepared to throw it as junk. Same thing is true for a number of
products such as televisions, microwave ovens, washing machines, cars, two-
wheelers, computers, etc.
This segment of present owners is sizeable enough yet to sell new brands to
those who already own a similar product is not easy. To attract this segment,
manufacturers regularly announce exchange offers.
Consumer durables market is the one where exchange offers are used the most.
Almost all the TVs, Refrigerators, Washing Machines, etc. have exchange offers.

 Internet promotions
They are the most recent form of sales promotions. They are promotions that are
done via the Internet. It is becoming increasingly popular because of the large
use of Internet. But still it has a lot to develop.
Marketing communications

29
Marketing communications breaks down the strategies involved with marketing
messages into categories based on the goals of each message. There are
distinct stages in converting strangers to customers that govern the
communication medium that should be used.
Advertising

 Paid form of public presentation and expressive promotion of ideas


 Aimed at masses
 Manufacturer may determine what goes into advertisement
 Pervasive and impersonal medium
 Functions and advantages of successful advertising
 Task of the salesman made easier
 Forces manufacturer to live up to conveyed image
 Protects and warns customers against false claims and inferior products
 Enables manufacturer to mass-produce product
 Continuous reminder
 Uninterrupted production a possibility
 Increases goodwill
 Raises standards of living (or perceptions thereof)
 Prices decrease with increased popularity
 Educates manufacturer and wholesaler about competitors' offerings as
well as shortcomings in their own.
 Objectives
 Maintain demand for well-known goods
 Introduce new and unknown goods
 Increase demand for well-known goods/products/services
 Requirements of a good advertisement
 Attract attention (awareness)
 Stimulate interest
 Create a desire
 Bring about action
 Eight steps in an advertising campaign
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 Market research
 Setting out aims
 Budgeting
 Choice of media (television, newspaper, radio)
 Choice of actors (New Trend)
 Design and wording
 Co-ordination
 Test results
 Personal sales
Oral presentation given by a salesman who approaches individuals or a group of
potential customers:
 Live, interactive relationship
 Personal interest
 Attention and response
 Interesting presentation
 Sales promotion
 Short-term incentives to encourage buying of products:

An example of this is coupons or a sale. People are given an incentive to buy,


but it does not build customer loyalty, nor encourage repeat buys in the future. A
major drawback of sales promotion is that it is easily copied by competition. It
cannot be used as a sustainable source of differentiation.
 Marketing Public Relations (MPR)
 Stimulation of demand through press release giving a favourable
report to a product
 Higher degree of credibility
 Effectively news
 Boosts enterprise's image
 Customer focus
Many companies today have a customer focus (or customer orientation). This
implies that the company focuses its activities and products on consumer
demands. Generally there are three ways of doing this: the customer-driven
31
approach, the sense of identifying market changes and the product innovation
approach. In the consumer-driven approach, consumer wants are the drivers of
all strategic marketing decisions. No strategy is pursued until it passes the test of
consumer research. Every aspect of a market offering, including the nature of the
product itself, is driven by the needs of potential consumers. The starting point is
always the consumer. The rationale for this approach is that there is no point
spending R&D funds developing products that people will not buy. History attests
to many products that were commercial failures in spite of being technological
breakthroughs. A formal approach to this customer-focused marketing is known
as SIVA Solution, Information, Value, Access). This system is basically the four
Ps renamed and reworded to provide a customer focus. The SIVA Model
provides a demand/customer centric version alternative to the well-known 4Ps
supply side model (product, price, place, promotion) of marketing management.
Product -> Solution
Promotion -> Information
Price -> Value
Place ->Access
The four elements of the SIVA model are:
 Solution: How appropriate is the solution to the customer's
problem/need?
 Information: Does the customer know about the solution? If so, how and
from whom do they know enough to let them make a buying decision?
 Value: Does the customer know the value of the transaction, what it will
cost, what are the benefits, what might they have to sacrifice, what will be
their reward?
 Access: Where can the customer find the solution? How
easily/locally/remotely can they buy it and take delivery?
 This model was proposed by ChekitanDev and Don Schultz in the
Marketing Management Journal of the American Marketing Association,
and presented by them in Market Leader - the journal of the Marketing
Society in the India.
Product focus
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In a product innovation approach, the company pursues product innovation, then
tries to develop a market for the product. Product innovation drives the process
and marketing research is conducted primarily to ensure that a profitable market
segment(s) exists for the innovation. The rationale is that customers may not
know what options will be available to them in the future so we should not expect
them to tell us what they will buy in the future. However, marketers can
aggressively over-pursue product innovation and try to overcapitalize on a niche.
When pursuing a product innovation approach, marketers must ensure that they
have a varied and multi-tiered approach to product innovation. It is claimed that if
Thomas Edison depended on marketing research he would have produced larger
candles rather than inventing light bulbs. Many firms, such as research and
development focused companies, successfully focus on product innovation (Such
as Nintendo who constantly change the way Video games are played). Many
purists doubt whether this is really a form of marketing orientation at all, because
of the ex post status of consumer research. Some even question whether it is
marketing. An emerging area of study and practice concerns internal marketing,
or how employees are trained and managed to deliver the brand in a way that
positively impacts the acquisition and retention of customers (employer
branding). Diffusion of innovations research explores how and why people adopt
new products, services and ideas. A relatively new form of marketing uses the
Internet and is called Internet marketing or more generally e-marketing, affiliate
marketing, desktop advertising or online marketing. It typically tries to perfect the
segmentation strategy used in traditional marketing. It targets its audience more
precisely, and is sometimes called personalized marketing or one-to-one
marketing.
With consumers' eroding attention span and willingness to give time to
advertising messages, marketers are turning to forms of permission marketing
such as branded content, custom media and reality marketing.

Price is one the elements of the marketing mix that generates revenue, while the
other elements generate costs. It is one of the easiest elements to adjust. It takes

33
a lot of time and money to adjust the other elements like product features,
channels and even promotion.
Traditionally, the price of a product was a major determinant of buyer choice.
Although non-price factors have become important, still price remains as the
most important determining factor of market share and profitability.
Companies do their pricing in a variety of ways. In small companies the prices
are often set by the Boss or the Owner of the company. In larger companies the
price is handled by division and product-line managers. Even here the top
management sets the general pricing guidelines and policies which the
managers should keep in mind while pricing their product.
Setting the price: The company must set is price in accordance with the value
delivered and perceived by the customer. If the price is higher than the value
then the company will miss potential profits and if the value is higher than the
price, then the company will fail to harvest potential profits.
Selecting the price objective: The company should first decide where it wants
its position in the industry. The clearer a firm’s objectives the easier it is to set the
price.
Determining the demand: Each price will lead to a different level of demand
and therefore have a different impact on a company’s marketing objectives. The
relation between alternative prices and the resulting current demand is captured.
In normal conditions, demand and price are inversely proportional, the higher the
price the lower the lower the demand and the higher the demand the lower the
price. Companies want to work with customers who are less price-sensitive. But,
the internet on the other hand has increased the price sensitivity of people. If
shopping online if one visits two or more websites, then looking for the same
product, he will buy from that website which sells the product for the lowest price.
Estimating costs: Demand sets a ceiling on the price the company can charge
for its product. Costs set the floor. The company’s costs take two forms fixed and
variable. Fixed costs do not vary with production or sales revenue. But, variable
costs vary with the production. The more the company produces the more the
variable costs.

34
Analyzing the price of the competitors: A company must always keep in mind
the price of its competitors. Before changing its price a company must consider
the possible outcomes of the price change. It should consider whether the price
change will initiate a price-war.
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2.0 Whether you produce good or service, you incur expenditure for producing
and selling it in the market. Thus you do need to set price of the product or
service to recover the expenditure. The most common determinants of price are
demand and supply. Let us understand this by means of a simple example.

Market structures could be of the following types:

 Pure competition

 Monopoly

 Monopolistic competition and

 Oligopolistic competition.

Pricing under pure competition

2.5 A purely competitive market is characterized by a large number of buyers


and sellers, non-heterogeneous product, and easy entry and exit. As the number
of buyers and sellers are large, no individual buyer or seller can influence market
price. Thus, a farmer who produces a few tones of rice and a household who
consumes a few quintals of rice has no say in the price of rice, and they could
sell and buy any quantity of this product at the ruling price in the market. Please

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note that no individual buyer or seller but all of them taken together determine the
price in such market.

2.6 Individual demand schedules put together yield aggregate market


(demand) for the good and similarly individual supply schedules put together
result in aggregate (market) supply. The intersection of the aggregate supply and
aggregate demand curves determines the equilibrium price and quantity. At the
so determined price, individual firms may sell any quantity and individual buyers
could purchase any quantity of the product in the market.

2.7 Since the cost of production varies from firm to firm, it is possible for a
firm in the ‘short-run’ to earn above normal profit even in a purely competitive
market. This is possible till the cost of production is less than the revenue earned
by sale of the product. To put it aptly, a firm will produce so long as its marginal
cost (i.e. the cost of producing an additional unit of production) is less than the
marginal revenue (i.e. the revenue generated by sale of each additional unit of
production). The firm maximizes its profit at a price where the marginal cost
equals marginal revenue. It is not possible for the firm to earn profit beyond this
point when marginal cost exceeds the marginal revenue.

2.8 It is important to note, however, that inability on the part of the firm to earn
profits does not necessarily mean that the firm will stop producing. In fact, the
firm can continue to produce in the short-run so long as the marginal revenue is
greater than the average variable cost (- well, total cost is generally divided into
fixed cost i.e. the cost that remains fixed irrespective size of production, and
variable cost i.e. the cost that varies with the size of production. You will be
introduced to this concept of fixed and variable cost in greater detail at a later
chapter). Clearly thus it makes sense for the firm to produce rather than closing
down and losing the fixed cost which is a sunk cost.

2.9 We observed thus that in the short-run in a purely competitive market it is


possible for a firm to make above normal profits while at the same time a firm
36
could exist even when it is losing in absolute terms (total cost terms). This,
however, is not true in the ‘long-run’. The obvious question is ‘why’. Recall that
entry or exit is easy under pure competition. Thus in a situation when (in the
short-run) a firm makes above normal profits, it sends signal to new firms to enter
the market. Entry of new firms implies increase in supply which in turn reduces
price. Reduction in price means reduction in revenue for the existing firm and
resultant decline in profit. This trend continues until the above normal profit
(economic profit) is completely eliminated and the firms earn only normal profit.
The market stabilizes at this point as the new firms do not have any incentive to
enter the market yielding only normal profit. Similarly, in a situation (in the short
run) when firms are losing, some firms for whom the marginal revenue is less
than the average variable cost, would leave the market. Exit of firms would imply
decrease in supply which in turn would lead to increase in price. In such an event
the existing firms adjust their output level and the firms continue to exit until the
above normal (economic) loss gets completely eliminated. In the long-run thus
only those firms remain which make normal profit or for whom the economic loss
is zero. Under pure competition, the price of a good accurately reflects the
opportunity cost of manufacturing it.

Pricing under pure monopoly

2.10 Monopoly market is characterized by single seller, no close substitute of


product and difficult entry for new entrants. The above understanding of price
determination under pure competition would help you appreciate the price
determination under monopoly. Recapitulate that under pure competition a firm
can earn above normal profit only in the short-run and that above normal profit
peters out in the long-run. Unlike this, under pure monopoly the monopolist firm
earns super normal profit even in the long-run. This is primarily because it is
difficult for new firms to enter the market.

2.11 The fact that there is a single seller under pure monopoly does not,
however, mean that it can charge any price. If it raises price too high, the buyers
37
may not have the capacity to buy its product. The monopolist firm therefore
adjusts its output level for profit maximization although the price at equilibrium
level of output exceeds the average cost.

2.12 Key conditions that give rise to monopolies are economies of scales and
barriers to entry. Electricity generation, gas supply etc. are some examples
representing economies of scale. Left to themselves, they will charge monopoly
prices and restrict output. The absence of any competitive threat will also
probably leave such organizations wasteful, inefficient and sluggish.
Case of PatanjaliYogpeeth

4.1 About Patanjali Yogpeeth - Divya Yog Mandir (Trust)


PatanjaliYogpeeth in Haridwar, Uttarakhand is one of the largest Yoga
institutes in India and named after the ancient Yog Guru Patanjali. The
institute is flagship project of Swami RamdevjiMaharaj and Acharya
BalkrishnajiMaharaj and has been set up not only for treatment, research
and development in
Yoga and Ayurveda, but also for the manufacturing of ayurvedic medicines.
It is located on the HaridwarDelhi highway at Kankhal, Haridwar.
PatanjaliYogpeeth is an institution for scientific research and treatment
which offers treatments for all. The ambiance of PatanjaliYogpeeth is world
class. It has been constructed in almost 100 acres and designed to have
buildings, car parks, and a landscape to rival the best of Delhi's housing
projects. A team of over 200 qualified doctors have been trained and are
already attending to over 2500 patients daily. Free consultation is being
done for all patients as well as medicines are made available to
economically weaker persons at concessional rates.

PatanjaliYogpeeth has already brought a health revolution in the country


with the integrated approach of Yoga and Ayurveda. Besides this, the
boundaries of the organization have also crossed the national boundaries
in USA, UK, Canada, Nepal, etc. All these Trusts are devoted day and night

38
to propagate and implement the noble and sublime aspects of Indian
culture the philosophy and teachings of Vedas, Upanisads, etc. along with
Yoga and Ayurveda.

PatanjaliYogpeeth has been constructed in two phases and their


infrastructural facilities include:

4.1.1 PatanjaliYogpeeth - Phase-I


This is a very important part of infrastructure of PatanjaliYogpeeth and
inaugurated on 6th April, 2006. The vast infrastructure includes:

 An OPD for free medical consultation to six to ten thousand patients and
IPD of one thousand beds
 Facilities for test investigations of pathology, radiology, cardiology, etc. by
ultra - modern machines, along with Panchkarma and Satkarma
 Yog Research Department equipped with the latest machines for
establishing Yoga on the criteria of modern medicine
 Free Yoga classes by Yoga teachers (each for 1-
hour duration)
 Free Ayurveda and Yoga therapeutic consultation by
well - trained Vaidyas
 An elegant Yajna is performed daily on Vedic and
scientific tradition.
 Panchkarma-Chikitsa, SatkarmaChikitsa, salya (surgical) Chikitsaeksara-
sutra, karnabhedana, agnikarma, dental and eye treatment services
available at the lowest cost
 High quality ayurvedic medicines manufactured Patanjali Pathological
Laboratory and Research Centre by Divya Pharmacy is available at the
lowest price
 Books, VCD/DVD, MP3 , Audio CD are also available
 Facilities of library and reading room, along with a cyber cafe, are
available

39
 Divya Herbal Park located near Phase-I.

4.1.2 PatanjaliYogpeeth - Phase II


Inaugurated on 1st April, 2009, PatanjaliYogpeeth II includes following
facilities:

 A huge air conditioned auditorium of 60,000 square feet has been


constructed where thousands of participants can practice together yoga,
pranayam, meditation, etc.
 A huge Panchkarma and satkarmacentre of 44,000 square feet where
about 1000 persons could be benefited daily Panchkarma and Satkarma
therapy
 A huge langar hall of 20,000 square feet where visitors could take free
meals (Prasad)
 350 apartments for accommodating healthy, competent and dedicated
senior citizens under vanaprastha ashram
 A grand museum built upon 50,000 square feet
 A sale outlet of 11,000 square feet for literature related to yoga and
ayurveda
 Bharat Mata NamanSthal where the sacred soil is collected from more
than 600 districts of India has been preserved.

40
5. Marketing Strategy of PatanjaliYogpeeth

5.1 Targeting Masses through Pranayam and Yoga


No one can help admiring the simplicity of the techniques for practicing
the different pranayam (controlled breathing) which His Holiness Swami
RamdevJiMaharaj has evolved and has been teaching to the common
mass in India. One finds the methods taught by Swamiji very simple for any
lay person to pick up and follow. It is the simplicity in the technique that is
making Pranayam a part of life to common man. Pranayam were there in
text books for long time but, no one from the common mass in India did
have access to it for the techniques of practicing them were very complex.

There were also some words of caution attached to such instructions that
any deviation from the practicing techniques would cause immense harm to
a person. This gave birth to an idea that Pranayam should never be
attempted to be practiced individually and should only be practiced in the
guidance and vigil of a trained Yoga teacher (Guru). Such rigid rules,
complexity in practicing techniques and above all the caution that, any
deviation in the practicing techniques would cause immense harm to the
person, took Pranayam far away from common mass and was finally lost
and buried. No one dared to practice such an art which would cause harm
to them if there is even a slightest of deviation in the technique.

Swamiji has done a tremendous job in breaking this concept of fear in


common mass about the harm caused by Pranayam. His Holiness has
devised very simple techniques for practicing the Pranayam which are very
easily picked up by any common man just by watching the T.V. His
Holiness Swamiji has also assured the common mass that Pranayam can
never cause harm to any person attempting to practice individually. Swamiji
has exhumed the Indian ancestral science of Pranayam from the grave of
darkness, fear and monopoly of a few and presented it in its simplest form
for the welfare of the mankind. Swamiji has removed the veil of darkness

41
and the mystery of Pranayam is unfolding itself to the common mass in
India.

5.2 Positioning of Patanjali Yogpeeth


The activities, through which PatanjaliYogpeeth wants to project its
image in the minds of people, are categorized into following four categories:

5.2.1 Ascetic Lifestyle (Sadhna)


Sadhna is the main aim of any spiritual organization. Baba Ramdev is
influenced by the ideology of MaharshiDayanandSaraswati, who laid great
importance on yoga and pranayam. To promote Sadhna, great emphasis is
laid down on yoga and pranayam. Various methods, like organizing
YogShivirs (camps), broadcasting through TV channels, making CDs and
DVDs of yoga, etc., are adopted to promote yoga and pranayam. Holistic
approach to yoga is adopted which includes Gnanyog, Dhyanyog,
Bhaktiyog and Rajyog. Swamiji wants to see country becoming Yogic India.

5.2.2 Education (Shiksha)


PatanjaliYogpeeth is trying to establish traditional system of teaching which
incorporates education with Indian culture that will take care of nation’s
economic, social and spiritual needs, and to work in tandem with such
institutions already existing. The main motive behind all the activities is
character building, moral boosting and knowledge of culture, awakening of
national pride, equitable society, arrangement of study and teaching of
Veda, Upanishad, etc., for the welfare of world. Various initiatives taken in
this regard include establishment of PatanjaliAyurved College, University of
Patanjali, Gurukul at Rewari and many other institutes. All the initiatives
work towards integration of knowledge and wisdom.

5.2.3 Health (Swasthya)


Health Revolution is one of the founding objectives of Patanjali family.
Patanjali is trying to promote Ayurveda system of Medicine and practice
ancient Indian Treatment system which includes Panchkarma, Naturopathy,
42
Yajna therapy etc. To achieve this, various medicines are prepared by
Patanjali under PatanjaliAyurved, Divya Pharmacy etc. Patanjali Food and
Herbal Park is established to provide pure and herbal products to people.
PatanjaliChikitsalayas and PatanjaliArogya Kendra are established in
various cities across the country to make Ayurvedic medicines available to
the people.

5.2.4 Entrepreneurship (Swawlamban)


Patanjali aims at promoting indigenous entrepreneurship among the people
of the country and to reduce the dependence on the west. Patanjali Food
and Herbal Park is established to bring about agricultural revolution in the
country which gives farmers best price for their produce. Various self help
groups are also constituted to promote indigenous entrepreneurship. All
these activities combined leads to Spiritual entrepreneurship.

5.3 Marketing Mix


In order to know exactly the reason for success of Baba Ramdev, it is
imperative to throw some light on the marketing mix rudiments. To be a
successful marketer it is important that all the marketing mix elements have
to be fine tuned to support and strengthen brand personality.

5.4 Product strategy

5.4.1 Pranayam and Yoga: A Package for Various Diseases


Swami Ramdev'sDivya Medicines are claimed to be one hundred percent
natural, made from potent herbs available in the Himalayas, with no or very
little side effects. They have proven extremely effective for combating all
forms of sickness and disease. Along with these medicines, Swamiji
recommends patients to also adopt the practice of pranayam, which will
strengthen the immune system and quicken the healing process. Ramdev
Baba opines that pranayam and yoga are the complete Ancient Indian
Therapy, which is a Medical Science in itself that cures any physical or

43
mental medical condition completely, without any side effects. Swami
Ramdev has proved and declared on Indian and International TV Channels,
pranayam and yoga is the complete natural cure for all physical and mental
ailments. But if medicines are required they are also available and these
packages of medicines are available at a very low cost. The medicines can
cure all the diseases from a simple cold to cancer. In a bid to promote
ayurveda, Swami Ramdev's Trust has tied up with 600 qualified ayurvedic
practitioners who are offering treatment to masses for a variety of diseases,
some of them termed incurable by the modern system.

5.4.2 FMCG Products


Patanjali has also introduced FMCG products to diversify in the market.
Indian FMCG market is a market which has a very wide range of
customers. There are many competitors in all the categories and although
they all have similar products available at almost similar prices, Patanjali is
trying to prove it different through their marketing strategies. However, entry
to this business is easy (low entry barriers) and this fact has been utilized
very efficiently to result in combined benefit for both Patanjali and the
consumers.

Table-1: PatanjaliVs Other Brands


Product Brands of Patanjali Some of the Competitive
Brands
Sharbat/ Amla, Bel, Brahmi, Gulab, Kissan Squash, Rooh-
Squash KesharBadam, Orange, Nimbu, afza, Minute Maid, Rasna
Mango
Juice AloeVera, Anar, Amla, orange Real, Priyagold, Godrej
and Kissan Juices
Jam Apple ,Pineapple and Mix Fruit Kissan, SIL, Tops, Druk
Jam
Salt SaindhaNamak Tata, Annapurna
Chyawanaprash Sada, Special Chyawanaprash Dabur, Baidyanath,

44
ZandukesariJiwan
Flour ArogyaAata Aashirwad, Annapurna
Candy Amla, Anardana DaburHazmola
Washing Ujjwal Arial, Surf-excel, Tide
Powder

As seen from the above Table, the major products of the Patanjali Food
Park are sharbat (Juice concentrates), jam, salt, chyawanaprash, flour
candy, washing powder, etc. The advantage with all these products is that
these are made of natural products and don’t have any side effects at all.
But as there are so many players existing in the market, that Patanjali
products have a tough competition to face with.

Overall, product/market strategy of the Patanjali group can be understood


through Ansoff’s Matrix (Ansoff, 1957) as shown in Figure-1 below. Ansoff’s
matrix, despite of being more than fifty year old marketing tool, still has a
great contributor to understand the diversification strategy of the
organization (Richardson and Evans, 2007). It can be clearly understood
from the matrix that PatanjaliYogpeeth is diversifying itself from ayurvedic
medicine to FMCG products.

Fig.1: Ansoff’s Matrix for PatanjaliYogpeeth

45
5.5 Pricing Strategy

Developing an effective pricing strategy remains the most important and


difficult part of the marketing process. As far as the pricing of FMCG
products is concerned, the pricing strategy is a mix of skimming and
penetration. Some products are costly than other competitive brands and
some are cheap. But, in case of pranayam and yoga, Baba Ramdev's uses
a penetration strategy and cost is very less. He urges people not to lose
hope or suffer and depend on expensive treatments. The diseases for
which Indian population spend much more in hospitals, pranayam and
yoga treat all the ailments completely without costly medicines, operations
or surgery. It is amazing, but it is claimed to be true that this is the
cheapest and the only complete cure to most of the so called
incurablediseases like Diabetes, Cancer, HIV and AIDS too.

5.6 Supply Chain Management (SCM)

Patanjali follows a very smooth Supply chain management. The three parts
of supply chain are product flow, cash flow and information flow. In supply
chain of Patanjali all these are maintained very smoothly. Supply Chain of
Patanjali can be well understood with the help of some examples. First we
will take the example of sale of Patanjali products. They sell their products
only through their own outlets opened in almost every district/city of India.
Each outlet sends its demand to central office at Haridwar. Then based on
demand, different products are gathered from various units of Patanjali viz.
Divya Pharmacy, PatanjaliAyurved, Patanjali Foods etc. Then the items are
delivered to the respective outlets mainly through Patanjali transport. This
shows a good example of Supply chain management. Next we can take the
case of Patanjali Gram at Uttarkashi. Here Swami Haridasji has presented
46
a very good example of SCM. They collect cow urine from rural
households. After initial filtration, it is sent to Patanjali Food and Herbal
Park where it is processed and is sent to various Patanjali outlets for
distribution. The part of money received from the sale of cow urine is kept
by Patanjali Food and Herbal Park Limited as processing cost and the rest
is sent to the village. Some amount is distributed to the people as a price of
cows urine, rest is used for the development of the village like establishing
necessary infrastructure, building schools etc. The Patanjali Mega Food
Park (PMFP) has been envisaged to help in creation of enabling
infrastructure for food processing and a comprehensive ‘farm-to-plate’
supply chain system. The initiative aims to seek maximum value addition
by backward as well as forward integration between the farmers, factory
and the market. It can be said that the supply chain doesn’t have any
intermediary in between but rather it’s 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.

Fig.2: Supply Chain of Patanjali

5.7 Sales and Distribution

Patanjali follows various modes of distribution for their products.

 They provide sale of products through their website with online payment
facility. These products can be procured through post also by sending the
required amount through demand draft etc.
 Patanjali has opened “PatanjaliChikitsalayas” and “PatanjaliArogya
Kendra” in almost all the cities of the country from where all the

47
Patanjaliproducts can be procured easily. A Patanjali trained Ayurvedic
doctor also sits in every PatanjaliChikitsalaya from whom consultation
can be obtained regarding various medicines.
 Patanjali herbal products are also available at Post offices
across the country.
 A shop is established for sale of products wherever a yoga
camp is organized.
 Patanjali has prepared disease specific CDs which they sell
through their various outlets.

5.8 Promotional Strategy

Baba Ramdev's live yoga classes became a passion. And it all began in
the year 2002 when Sanskar television channel started airing Baba
Ramdev's yogic classes; overnight, Baba Ramdev became a sensation he
had hundreds of followers who morphed into thousands. Then Sanskar
channel's rival Astha channel signed him. In two years time he was a hit
and with him also the channel benefited. His TV shows have the largest
TRP. Today, he is one of the biggest draws on Indian television. He can be
seen not only on religious channels like Aastha, but also news and features
channels like AajTak, India TV and Sahara One. Millions around the
country follow his programmes religiously and use Ayurvedic medicines
prescribed by him. There was an eight-month waiting period before one
could see Ramdev; he was being booked that far ahead by television
channels for his live yoga classes each morning. His yoga sessions were
beamed live into 170 countries. Also, Baba Ramdev's pack i.e., one DVD,
two Video CDs, three books on yoga, pranayam and herbal remedies, and
Magazines are available. This set of four promotional materials with a
Research Oriented Monthly Magazine of Yog, Spiritualism, Ayurveda,
Culture and Tradition-YogSandesh available in 5 languages can do much
to lure customers. Even healthy people are following his yoga pranayam
regimen, as available in his DVDs, VCDs, Books and magazines etc., to
48
keep fit. Baba Ramdev has got the pulse of the basic needs of people
which is not only limited to food, clothing and shelter but also includes a
healthy life style, and has managed to fine tune his offerings to suit the
needs of all. He has mastered the art of mass customization and practices
the art dexterously so much so that each individual feels that he is talking to
him individually.

Broadly speaking, the promotional marketing strategy of PatanjaliYogpeeth


includes the following:

 The most important promotional activity involves yoga campaign by Baba


Ramdev and the Patanjali trust.
 Advertising through business journals and newspapers in India and
abroad with the help of an advertising agency.
 The company has established a web site in the internet. This will ensure
international visibility and marketing.
 Group regularly interacts to industry and business associations.
 Group also has interaction with foreign embassies/trade counsels in
India.
 They are also bringing out attractive brochures and other literature with
the help of advertising agency.

6. SWOT analysis of PatanjaliYogpeeth

The SWOT Analysis of the PatanjaliYogpeeth is explained as follows.

6.1 Strengths:
 Natural products without any kind of side effects
 Innovative use of spirituality
 Presence of established distribution networks in urban areas
 Solid base and image of the trust
 Social Responsibility to make people healthy

49
6.2 Weaknesses:
 Strong competitors and availability of substitute products
 Low exports levels
 High price of some products
 Absence of established distribution networks in rural areas
 Very less promotional activities

6.3 Opportunities:
 Large domestic market – over a billion populations
 Untapped rural market
 Changing lifestyles and rising income levels, i.e. increasing
per capita income of consumers ¾Export potential and tax and
duty benefits for setting exports units

6.4 Threats:
 Political interference
 Controversy created by other groups regarding Patanjali
products
 Removal of import restrictions resulting in replacing of
domestic brands
 Temporary Slowdown in Economy can have an impact on
FMCG Industry

50
CHAPTER III
COMPANY PROFILE

51
Patanjali Ayurveda Kendra Pvt Ltd was officially inaugurated by
ParamPujyaYogRisi Swami RamdevjiMaharaj& Ayurveda ShiromaniRishikalpa
Acharya Shree BalkrishnajiMaharaj on 27 September 2011 (2064/6/10 B.S.) and
started its operation as an Patanjali Ayurveda Kendra Pvt Ltd at swoyambhu,
Katmandu, Nepal with the ultimate aim of providing holistic, natural and effective
Ayurveda treatment. Patanjali Ayurveda Kendra Pvt Ltd. has registered in 2006
to company Registar, Government of Nepal. The company has authorized to
operate sales of Ayurvedic Medicines and publication. It was established with the
main purpose of curing and preventing common ailments by Ayurveda and
importing all kind of Ayurvedic medicines, audio-visual materials and literatures
of Divya Pharmacy, DivyaYogSadhana and DivyaPrakashan, Haridwar, India to
distribute in Nepal.
The Kendra was committed in taking guidance of all the advanced methods of
effective treatment procedures of Ayurveda. The Center was equipped with
Ayurvedic Doctors, Pathology Department, Pharmacy, Counseling Department
and many more facilities. The Ayurvedic doctors were trained from Haridwar and
in-house for a minimum period of 2-3 months before being put into professional
practice.
Patanjali Ayurveda Kendra had made achievements in treating thousands
suffering from diseases like osteoarthritis, rheumatoid arthritis, osteoporosis, low
back ache, cervical spondylsis, psoriasis, allergic respiratory disorders, multiple
sclerosis, age related mental stress and rheumatic diseases. Ayurveda is a
holistic healing science. Going beyond just curing an ailment, Ayurveda aims at
total well being of the individual – his mind, body and spirit.

Patanjali Ayurveda Kendra Pvt Ltd was officially inaugurated by


ParamPujyaYogRisi Swami RamdevjiMaharaj& Ayurveda
52
ShiromaniRishikalpaAcharya Shree BalkrishnajiMaharaj on 27 September 2011
(2064/6/10 B.S.) and started its operation as an PatanjaliAyurveda Kendra Pvt
Ltd at swoyambhu, Katmandu, Nepal with the ultimate aim of providing holistic,
natural and effective Ayurveda treatment.

About Us

Patanjali Ayurveda KendraPvt Ltd. has registered in 2012 to company Registar,


Government of Nepal. The company has authorized to operate sales of
Ayurvedic Medicines and publication. It was established with the main purpose of
curing and preventing common ailments by Ayurveda and importing all kind of
Ayurvedic medicines, audio-visual materials and literatures of Divya Pharmacy,
DivyaYogSadhana and DivyaPrakashan, Haridwar, India to distribute in Nepal.

The Kendra was committed in taking guidance of all the advanced methods of
effective treatment procedures of Ayurveda. The Center was equipped with
Ayurvedic Doctors, Pathology Department, Pharmacy, Counseling Department
and many more facilities. The Ayurvedic doctors were trained from Haridwar and
in-house for a minimum period of 2-3 months before being put into professional
practice.

Patanjali Ayurveda Kendra had made achievements in treating thousands


suffering from diseases like osteoarthritis, rheumatoid arthritis, osteoporosis, low
back ache, cervical spondylsis, psoriasis, allergic respiratory disorders, multiple
sclerosis, age related mental stress and rheumatic diseases. Ayurveda is a
holistic healing science. Going beyond just curing an ailment, Ayurveda aims at
total well being of the individual – his mind, body and spirit.

53
Board of Directors

Name: Mr. Babukaji Shrestha


Chairman
Phone: +977-1-4674666/777 (Ext. 213)
Email: Patanjali@wlink.com.np

Name: Mr. Raju Shrestha


Managing Director
Phone: +977-1-4674666/777 (Ext . 213)
Email: Patanjali@wlink.com.np

Name: Dr. PawamanSuvedi


Director- Operation
Phone: +977-1-4674666/777 (Ext . 214)
Email: Patanjali@wlink.com.np

We recently visited PatanjaliAyurved’s (Patanjali) Food and Herbal Park at


Haridwar and met the management team. It is one of the largest food and herbal
parks in the world equipped with world‐class manufacturing machinery and R&D
facility. Management has set a revenue target of ~INR50‐60bn in FY16
(INR20.2bn in FY15) and is confident of achieving it, led by its presence in most
consumer categories. The company is working on plugging the gaps in the
supply chain and distribution with plans afoot to implement ERP (for better
inventory management) and consolidate its online presence. Strong innovation
and new products pipeline, pricing discounts to the peers (15‐30%), ayurvedic
and natural propositions with low A&P spends (leveraging Baba Ramdev’sbrand
pull) lend Patanjali’s products an edge over competition. However, distribution
remains a key monitorable.

54
Thrustonrevenueoverprofitability;onlinemovestospurgrowth

Despitebeingacorporateentity,PatanjaliadherestoBabaRamdev’sconsumer‐centri
cideologies.Hence,thefocusisonrevenueandnotprofitability. The company is well
on course to achieve its targeted revenue of ~INR50‐60bn in FY16 (INR20.2bn
in FY15). Even though the thrust is not on profitability, the company managed to
clock ~20% EBITDA margin in FY15, aided by better cost management (latest
machinery and strong R&D capabilities) and lower A&P spends.
Toimproveitsdistributionreach,itisstrengtheningitsonlinepresence.Patanjali is also
implementing ERP which will help in inventory mapping. Shortly, a mobile app
will also be launched to help locate retail outlets and for online ordering of
Patanjali products.

Newproductpipelinestrongandinnovative

Patanjaliboastsofastrongnewproducts’pipeline.Theproductsarenotonlyinnovative,
butreasonablypricedtoo.AcentralR&Dfacilityequippedwithlatesttechologyalongwit
haseparatenewproductdepartmenthavehelpedinliningupaseriesofnewlaunchesov
ernextfewmonths. The new launches pipeline includes: Patanjali Noodles,
DantKanti Advance, Sugar free Chyawanprash, PowerVita, Seabuck thorn
dietary supplement and powdered hair dye, among others.

Aforcetoreckonwith

OverFY12‐15,PatanjaliregisteredrevenueCAGRof64.7%.Thecompanyhasaggres
siveplantoentereveryconsumercategory(keepingasidethosethatimpactlifestyleand

health).Atthecurrentjuncture,thoughitspresenceinmanycategoriesmaynotqueerthe
pitchforotherconsumergoodscompanies(eachcategorynottoobigtoimpactexceptG
hee,whichisexpectedtobeINR12bninFY16),overthelongterm,gainingpalpabledistri
butionprowesscouldposeaseriousthreattocompetition.Patanjali’s proactive moves
in innovation have been crucial for its growth. Other consumer companies will

55
need to step up innovations, particularly in the herbal and ayurvedic space
(distribution strength will come handy) to counter competition.

The3principlesvitalforgrowth

PatanjaliAyurvedisaincorporatedcompanyundertheCompaniesAct–
PatanjaliAyurvedLimited.Thoughacorporateentity,itsworkingandideologyisnotcom
pletelythatcanbecomparedtothatofaperfectcorporateculture.Thecompanyisfocuss
edontop‐linegrowthratherthanprofitability.Its business ideology is inspired by
Swami Ramdev’s ideologies totouch every life through Patanjali which will help
the consumers and be present in all thesegments where the consumers feel
they can get a better product at a better
price.Theorganisationconductsitsbusinessonthefollowing3mainprinciples:
(1) Providingworld‐classproductstoconsumers(makingsurethecompanydoesnota
ddanypreservativesorusesnaturalpreservativesasfaraspossible).

56
(2) Producingproductsinthemostcost‐effectivemannersothattheproductsarepriced
veryreasonably.

(3) Whateverprofitsthecompanyearnsareploughedbackintobusinesssothatitcanin
vestthesameforlaunchofnewproducts,costeffectivenessorfurthercapacityexpa
nsion.

Patanjaliwillnotlaunchanyproductsthatareharmfultothehealthofconsumersanddetr
imentaltothehealthandlifestyleofthepeople.Hence,thecompanywillnotgetintoprodu
ctcategoriesliketobaccoandliquorwhicharebadforhealth.Goingforward,thecompan
yalsoplanstoopen500‐600branchesofAcharyakulam(educationalinstitutions).

Ready Food Confectionery Biscuits,Cookies,Candies


Snacks&Breakfast Honey,Papad,snacks,Namkeek

Sauces&Pickles Ketchup,Pickles

Sweets Murabba,SoanPapdi

Perosnal FaceCare FaceCream,LipCare,Facewash


Care
BodyCare BodyWash,Footcare,Lotions

HairCare Shampoo,Conditioner,HairOil,HairColor

Soaps&Handwash Handwash,soaps

OralCare Toothbrush,paste

Makeup Kajal

ShavingandGrooming ShaveGel,Shavecream

Fig.1:The 3 vitalprinciplesthatdrivePatanjali ’sbusiness

57
58
Targetingmorethan250%revenuegrowthinFY16
Patanjaliclockedrevenueof~INR20.3bninFY15withEBITDAmarginof~20%.Thec
ompanytargetstoachieverevenueofINR50‐60bninFY16itself.Growthisbeingdrive
nbythecompany’slargestsellingproduct,cow’sghee(expectedtobeINR12bninFY1
6)followedbyDantKantiandKesh
Kanti.Patanajalialsohasarobustpipelineofnewproducts,whichwillhelpachieveitsta
rget.

Patanjali operates via 3 business segments, viz., foods (foods, supplements,


digestives,dairy, juices, etc), FMCG (cosmetics (shampoo, soaps, facewash),
home care (detergentcakes, powder, liquid), etc) and ayurvedic products
(healthcare products for blood pressure,skin diseases, joint pain, etc). In FY15,
of the total sales of INR20.3bn, food and cosmeticscontributed INR8bn each,
while healthcare products comprised the balance.
ThecompanyhasadequatecapacitytoachieveitsrevenuetargetofINR50‐60bninFY1
6.

59
60
Lowerandeffectiveadvertisingaidslowerpricing
PatanjaliAyurvedhaslimitedadvertisingexpenses,whichgivesitenoughleewaytop
assonthesavingsfromloweradspendsbywayoflowerprices.Thecompanyadvertise
sinalimitedway–
newstickers,regionalnewspapers,somedigitaladvertising,etc.,thoughgoingahead
itmightstartotherformsofadvertisingtoo.Patanjali has adopted the unique
informationbased advertising. For instance, the company highlights the
positives of cow’s ghee, whichautomatically helps sale of Patanjali Ghee. In the
recent past, the company’s printadvertising has seen a marked increase.

Fig.3:Patanjali ’sinformativeprintadvertisements‐KeshKantiandGhee

Source: Company, Edelweiss research

61
Onlineplatformtospruceupdistributionnetwork
ManypeoplecomplainthatduetoPatanjali’sweakdistributionnetworkitsproductsar
enoteasilyavailableeverywhereandtheyareunabletobuythem.Toaddressthisconc
ern,thecompanyhaschalkedoutanaggressiveplantoimproveitspresenceontheonli
neplatform.
Currently,it isalreadysellingits productsthrough
its
web‐site,www.Patanjaliayurved.net,fromwhereconsumerscanordertheprod
uctsandgetfreedeliveryofthesameiftheordervalueexceedsINR499.Other
companies likebigbasket.com, etc., that also sell Patanjali products online have
been barred from doingso.The company is also implementing ERP for better
mapping of inventory (SAP hasalready been implemented). Patanjali will also be
launching its mobile app, which willallow consumers to locate nearby outlets that
are selling Patanjali products and alsofacilitate online ordering of products.

PatanjalialsosellsitsproductsthroughthePatanjaliChikitsalayas(wherefreemedica
lconsultancyisgivenbymedicalpractioners),PatanjaliArogyaKendras(healthandw
62
ellnesscentre)andSwadeshiKendras(regularoutlet).As for reach, the company
has close to 0.2mnoutlets and 10,000 franchisee model of
ChikitshalyasandArogyaKendras.
Distributionwise,thecompanyoperatesthrough100superdistributors(thiswillbebol
steredgoingforward)whointurnsupplytothewholesalersandretailers(whooperatet
hrougha500‐600strongsalesteam).Asofnow,thecompanyhasnoplanstohavedire
ctreach.

Fig.5:Patanjali ayurved.net

Source: Company, Edelweiss research

Apartfromonlinepresence,Patanjaliisalsotakingstepstoenhanceitsover
alldistributorcoverage.Thecompanyhasinvitedapplicationsfordistributor
shipofitsproducts.Beingseized of the fact that that there is high
demand for its products, Patanjali is now offeringseparate
distributorship for food and cosmetics compared to the earlier system
when onedistributor managed both. Also, the company is giving

63
distributorship at the district, tehsilandmandi levels, which shows its confidence
on its the growth trajectory and demand forits products.

64
RESEARCH METHODOLOGY

65
Scope of the thesis work

Research methodology can be defined as, it is used to give a clear cut idea on
what the researcher is carrying out his or her research. In order to plan in a right
point of time and to advance the research work methodology makes the right
platform to the researcher to mapping out the research work in relevance to
make solid plans.

More over methodology guides the researcher to involve and to be active in his
or her particular field of enquiry. Most of the situations the aim of the research
and the research topic won’t be same at all time it varies from its objectives and
flow of the research but by adopting a suitable methodology this can be
achieved.

Research Design:

According to “Claire Seltiz”, a research design is the arrangement of condition


and analysis of data in manner that aims to combine relevance to the research
purpose with economy in procedure.

Determining sources of Data:

There are two main sources of data

1. Primary data

2. Secondary data

Primary Data: It consists of original information’s collected for specific

Purpose. Primary data for this research, data are collected through a direct
source like survey to obtain the first hand information is others resources are
written below.

 Survey.

66
 Face to face interaction.

Secondary Data: It consists of information that already exists somewhere and


has been collected for some specific purpose in the study. The secondary data
for this study is collected from various sources like,

 Books.
 Website.
 Newspaper.
 Financial Magazine. ( weekly , business world etc)

PRIMARY DATA :Through questionnaire and one to one discussion.

SECONDARY DATA :Internet, Book , Past research.

Sample Size and Design:


A sample of 100 people was taken on the basis of convenience. The actual
consumers were contacted on the basis of random sampling.

Research Period:
Research work is only carried for 2 or 3 weeks.

SCOPE OF THE WORK


The awareness level among the public and corporate about e-commerce is not
very high, so the organizations should come up with the awareness programs in
the form of services and workshops to increase awareness about the associated
benefits. Digital Marketing is the practice of promoting products and services
using digital distribution channels to reach consumers in a timely, relevant,
personal and cost-effective manner.

67
JUSTIFICATION OF THE CHOOSING TOPIC
The Indian FMCG sector is the fourth largest sector in the economy with a total
market size in excess of US$ 13.1 billion. It has a strong MNC presence and is
characterized by a well-established distribution network, intense competition
between the organized and unorganized segments and low operational cost.
Availability of key raw materials, cheaper labour costs and presence across the
entire value chain gives India a competitive advantage. The FMCG market is set
to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration
level as well as per capita consumption in most product categories like jams,
toothpaste, skin care, hair wash etc in India is low indicating the untapped market
potential. Burgeoning Indian population, particularly the middle class and the
rural segments, presents an opportunity to makers of branded products to
convert consumers to branded products.
The slow growth rate witnessed through the years 2017 to 2004 by the FMCG
sector was revived in FY’05, registering a growth rate of about 6%. The growth
was mainly driven by improved performance of personal care products such as
shampoos, deodorant, hair dyes, soap, toiletries, etc and penetration into the
rural and semi-urban areas of India. Rural marketing has become a critical factor
in boosting bottom lines.
This study will give the detailed insight of FMCG sector in India and how it has
surmounted the downturn faced in the past. How the companies like HUL has
changed their marketing strategies to overcome their shrinking profit margins and
beat competition.

68
CHAPTER-IV
ANALYSIS AND FINDINGS

1. Preference given to different advertising mediums by clients in year 2017

69
50%

45%
44%

40%

35%

30% 28%
Percentage

25%

20%
17%
15%

10% 8%

5% 4%

0%

TV Print Radio Internet Others


Advertising Medium

Result: 44% customers preferred print media in year 2017 for advertisement
purpose to use the Brand Management apart from this almost 65% of the FMCG
company spending huge money over the Advertisement in the web , TV and
electronically.

2. Revenue received in year 2017 through different FMCG Companies to


the different advertisement segment of the Media

70
60%

51%
50%

40%
Percentage

30%
27%

20%

13%

10%
6%
3%

0%

TV Print Radio Internet Others


Advertising Medium

Result: 51% of revenue is generated by the print media from the advertisement
of the various FMCG company brands like Coca cola , Vatika i.e. Dabur which
still has unique brand preference for the Print Media while after launching Radio
FM service this industry earned almost 13% of the revenue from the PATANJALI
company and the biggest contributor.

71
3 . Do you find any seasonal variation promoting the FMCG product
through various advertisement channel?

11%

NO

Yes

89%

Result: 89% agencies have No Seasonal variation in terms of the capacity of the
FMCG spending over the Advertisement where as 11% of the people suggested
yes FMCG business is almost non Seasonal but it makes sense to say
Advertisement industry does have slight seasonal variance from the FMCG
Company for the advertisement.

72
4. Percentage break-up of receiving advertisements in different languages

Regional/Others
6%

English
24%

Hindi
70%

Result: 70% advertisements are received in Hindi language. It is a known fact


that English speaking people in India are growing day and day out but the best
medium through which FMCG is promoting their products is Hindi because they
know it is one common language which is understood by everybody in India

73
.

5.From which sector do you receive more advertisement?

A. FMCG
B. Service
C. Consumer Durable
D. Others

Advertisement Frequency
PATANJALI 58%
Consumer Durable 12%
Service 19%
Others 11%

Advertisment Frequency

Others
11%

Service
19%
FMCG
Consumer 58%
Durabel
12%

74
Result: As per my study FMCG is contributing highest advertisement spend in
respect to others like Telecom, consumer Durable or the service sector.
PATANJALI has contributed 58% of the revenue in total advertisement
Industries.

6. Which parameter do you prefer most while advertising?

0.0%
11.4%

Low Cost

High Quality
47.7%

Coverage area of
advertising medium
40.9%
Other

Result: 47.7% clients considered coverage area of advertising medium as most


important parameter. Adding to this 40.09% of the people suggested that High
quality of advertisement is required because it reflects your quality standard and
the different parameter to sustain the growth of the company.

75
7. How much percentage of your revenue, you spend for advertisement?

More than 10% Less than 1%


11% 8%

1-3%
7-10%
24%
19%

4-6%
38%

Result: 38% clients spend 4-6% of their revenue for advertisement purpose
which is about 100 to 115 Crore rupees invested by the FMCG Company for
promoting their goods and services to the consumer. Although this cost some
time create problem to the company because they fear if they reduce this cost
might be the sales go down and the competitor will gain the market share.

76
8. How often do you give advertisement in one month?

4, 5%

12, 14%
0-5 times

43, 48% 6-10 times

11-15 times
29, 33%

More than 15
times

Result: 48% clients give advertisement for 0-5 times in one month i.e. the
changing the Advertisement sequence although PATANJALI company Airing
almost every day 10-15 times their advertisement in TV, Print Media, Internet so
they can capture large number of the consumer.

77
9. Are you satisfied with the services of advertising agencies?

Cost

0, 0%
5, 6% 15, 17%
Highly Satisfied

Satisfied
25, 28%
Indifferent

Dissatisfied

Highly
Dissatisfied

43, 49%

Result: Max. Clients are satisfied with cost structure. As per our result suggested
that 15.17% of the client are highly satisfied with the Advertisement cost they
incurred by the advertisement agency knowing the fact Innovation and creativity
is required lot of work.

78
FINDINGS & INFERENCES

1) Patanjali has very well created its desired image of premium product
company.
2) Patanjali almost 80% of Patanjali customers are satisfied with the quality
and value provided to them in the pricing model of Patanjali .
3) Patanjali has maintained its growth rate and position in the market from a
period of decade by rightly choosing and implementing the marketing mix
strategies.
4) Patanjali believes in fulfilling csr and to get a reputation of a csr company
over a period of time.
5) Patanjali is a premium class company with its product are only in premium
segments except one rejoice in india.

79
LIMITATIONS

However I shall try my best in collecting the relevant information for my


research report, yet there are always some problems faced by the researcher.
The prime difficulties which I face in collection of information are discussed
below:-
1. Short time period: The time period for carrying out the research was
short as a result of which many facts have been left unexplored.
2. Lack of resources: Lack of time and other resources as it was not
possible to conduct survey at large level.

3. Small area for research: The area for research was too small due lack of
resources to reach mass population

80
RECOMMENDATION

1) As Indian market is dominated by the middle class and workers class,


PATANJALI should come up with some products in that segment with such
marketing strategies that does not effect the image of premium products.
2) PATANJALI should come up with more brands in Indian market as it is
worlds 4th largest as it only has its 7-8 brands in India out of 100 plus
brands overseas.
3) PATANJALI should have a different balance sheet in each country to
recognize its most profitable segments as of now it does it overseas.
4) PATANJALI may come up with its own retail outlet to make distribution easy
and making sure that its products are available easily to its target market.

81
CONCLUSION

Most of the people believe in doing good and become spiritual. It has also been
found in the past that spirituality affects the buying behavior of the people
(Standiferet al., 2010). Spiritual gurus make use of up to date media to stay
connected to their devotees and also impact their consumption behavior
(Warrier,
2003). As far as PatanjaliYogpeeth is concerned, Baba Ramdevji has also
influenced life of many with pranayam and yoga, though this influence is for
welfare of people. Therefore, within a very short span of time, Patanjali has
made a huge success and become well known not only at national but also at
international level. Swami Ramdevji has emphasized on pranayam and yoga
dimensions of spirituality to target the mass population worldwide.
PatanjaliYogpeeth is fully utilizing this spiritual competitive advantage, created
by Swami Ramdevji, to sell its own products in the market. PatanjaliYogpeeth is
not only selling its ayurvedic medicines, but also diversifying itself through
selling of FMCG products. Moreover, the organization is engaged in various
good activities which are of great benefit to the society. It is trying to imbibe
good character in masses with good health through yoga and ayurveda. Hence,
it can be said that PatanjaliYogpeeth has succeeded in creating a positive
image through spirituality and using it to sell the products in the market.

Product management is a middle level management function that can be used to


manage a products life cycle and enables a company to take all the decisions
needed during each phase of a product‟s life cycle. The moment of introduction
and of withdrawal of a product is defined by the use of product management by a
Product Manager. A Product Manager exists for three basic reasons. For starters
he manages the revenue, profits, forecasting, marketing and developing activities
related to a product during its life cycle. Secondly, since to win a market requires
deep understanding of the customer, he identifies unfulfilled customer needs and
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so he makes the decision for the development of certain products that match the
customers and so the markets needs. Finally he provides directions to internal
organization of the company since he can be the eyes and ears of the products
path during its life cycle. To improve a product success during each of its phase
of its life cycle (development - introduction – growth – maturity – decline), a
product manager must uphold the following three fundamentals.
Understand how product management works: When responsible for a given new
product, a product manager is required to know about the product, the market,
the customers and the competitors, so that he can give directions that will lead to
a successful product. He must be capable of managing the manufacturing line as
well as the marketing of the product. When the product manager has no specific
authority over those that are involved in a new product, he needs to gather the
resources required for the organization to meet product goals. He needs to know
where to look and how to get the necessary expertise for the success of the
product.
Maintain a product / market balance: The product manager as the person that will
make a new product to work, needs to understand and have a strong grasp of
the needs of the customer / market and therefore make the right decisions on
market introduction, product life cycle and product cannibalization. To achieve
the above he must balance the needs of the customers with the company‟s
capabilities. Also he needs to balance product goals with company objectives.
The way a product‟s success is measured depends on where the product is in its
life cycle. So the product manager must understand the strategic company
direction and translate that into product strategy and product life cycle position.
Consider product management as a discipline: Managing a product must not be
taken as a part time job or function. It requires continuous monitoring and review.
Having said that, it is not clear why many companies do not consider product
management as a discipline. The answer lies in the fact that product
management is not taught as engineering or accounting i.e. does not have
formalized training.

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APPENDICES

1. Preference given to different advertising mediums by clients in year 2017

2. Revenue received in year 2017 through different FMCG Companies to


the different advertisement segment of the Media

3 . Do you find any seasonal variation promoting the FMCG product


through various advertisement channel?

4. Percentage break-up of receiving advertisements in different languages

5.From which sector do you receive more advertisement?

6. Which parameter do you prefer most while advertising?

7. How much percentage of your revenue, you spend for advertisement?

8. How often do you give advertisement in one month?


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9. Are you satisfied with the services of advertising agencies?

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BIBLIOGRAPHY
Books:

o Marketing Management by Phillip Kotler - 2009


Websites:

www.google.co.in
www.hulfnbservices.com
www.nestle.com
www.managementparadise.com

 Kotler Phillip, Marketing Management, Millennium edition. (Prentice hall of


India).
 Business today
 Business World,
 Business India,
 A&M, Brand Equity,
 Economic Times
 CMIE reports
 www.indiainfoline.com
 www.domain_b.com
 www.agencyfaqs.com
 www.nil.com
 www.cadburys.com
 www.web-enable.com/industry/enabling-scm.asp
 indiainfoline.com
 askjeeves.com

Business Magazines:

Business Today Magazine.


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Business Standard &
India Today.

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