Professional Documents
Culture Documents
INDEX
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Sl no.
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4
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7
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Title
INTRODUCTION.
ENVIRONMENTAL ANALYSIS USING
PESTLE.
SWOT Analysis.
PORTER’S 5 FORCES.
STP STRATEGY.
ISSUES MARKETING NEEDS TO
RESOLVE.
GROWTH PATH.
REFERENCES.
Page no.
3
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INTRODUCTION
Marketing through ancient Indian roots has become a very important topic for
discussion as it affects the consumer behaviour. Hence, the many organizations are
launching
and then selling their own products to the customers in order to capture the
market. Baba
Ramdev is the one of the famous gurus in teaching pranayam & yoga in India. Baba
through
Patanjali Yogpeeth, has launched many products not only based on ayurvedic
medicines but
also on FMCG goods as well.
Patanjali Yogpeeth located in Haridwar, Uttarakhand is one of the biggest Yoga
institutes in India and is named after the ancient Yog Guru Patanjali. The
institute is the first
flagship project of Swami Ramdevji Maharaj and Acharya Balkrishnaji Maharaj and has
been
set up not only for treatment, research and development in Yoga and Ayurveda, but
also for
the production and manufacturing of ayurvedic medicines. The plant is located on
the
Haridwar-Delhi highway at Kankhal, Haridwar. Patanjali Yogpeeth is an institution
where
scientific research and treatment are offered to everybody. The ambiance is not
less than
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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. Patanjali
Yogpeeth Trust,
a non-profit organisation started by Baba Ramdev, aims to carry out social
activities in all the
spheres such as health care, education and activities. Patanjali drives its Social
responsibility initiatives through Patanjali Yogpeeth Trust.
Patanjali Yogpeeth is bringing health revolution in the country with the
integrated approach of Yoga and Ayurveda. In addition to this, the boundaries of
the
organization have crossed the national boundaries and entered USA, UK, Canada, UAE
and
Nepal, etc. All these Trusts are working day & night to propagate and implement the
historical, noble and sublime aspects of Indian culture through the philosophy and
teachings
of Vedas, Upanishads, etc. along with Yoga and Ayurveda.
Patanjali Ayurved's Ayurvedic Manufacturing Division has over 300 medicines
for treating a range of ailments and body conditions, from common cold to chronic
paralysis.
Patanjali Ayurveda has a plan to build many units not only in India but also
abroad, in this
context work has already been started in Nepal. Patanjali Ayurveda has annual
turnover of
around Rs. 2000 crore. Patanjali Ayurveda manufactures 45 kinds of cosmetic
products.
For fiscal year 2014, Patanjali Ayurved Ltd, clocked a turnover of about Rs
1,200 crore, up from about Rs 850 crore a year earlier and Rs 450 crore in fiscal
2012, as per
the company filings and industry sources. During the current fiscal, Patanjali is
expected to
clock a turnover of over Rs 2,000 crore, according to Aditya Pittie, CEO, Pittie
Group. This
marks a phenomenal 67% jump from the previous fiscal year.
Thus, Patanjali Ayurved Ltd is not only a company which is running for profit.
It is a CONCEPT – which links the rising destiny of millions of rural masses on the
one hand
and many more suffering the onslaught of the unhealthy urban life style on the
other hand.
It is all about economically processing the farm produce into daily used products
ranging
from Ayurvedic health supplements to food and cosmetics and finally supplying them
mostly
to the urban world.
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POLITICAL- Tax policylabor lawenvironmental lawtrade restrictionstariffs
ECONOMICAL-Economic growthinterest ratesexchange ratesinflation
rate
SOCIAL-Cultural aspects, health consciousness,Population growth, age
distribution
TECHNOLOGICAL-R & D, automation, technological change.
ENVIRONMENTAL- Surroundings, environment law, conditions etc.
LEGAL- Regulatories, law, licences, patent etc.
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c) Technology Incentives And Rate Of Technological Change: - With the help of
biologists and technology, better options are being created in the company. With
the help of the available technology, new herbs are being notified and being used
in the new medicines. Moreover, company is also working for new farming ways.
LEGAL FACTORS:Ayurveda has its own medicines. There are lots of act related to
Ayurveda: The
medicine central council act-1970, the drugs and cosmetics act 1940 and rules made
thereunder, the drugs and magic remedies act 1954 and the rules made thereunder.
The drugs
and magic remedies act 1954 and the rules made thereunder for the same. Except this
there
are several rules and laws for Ayurvedic medicines and the processed by which
medicines are
being formed. Quality assurance need to be fulfilled by those medicines which are
being
prepared and laws are there for this process as well.
SWOT Analysis
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• Strong global
competitions
• Low export levels.
• Less promotion.
STRENGTH
WEAKNESS
•
Replication of product.
THREAT
• Infamous political attacks.
OPPURTUN
ITY
STRENGHTS:a) Low Operational Costs: - The Company enjoys low operational costs and
more
operational profit percentage compared to many other big players like Ranbaxy and
Sun pharmaceuticals.
SL NO
COMPANY
1
2
3
4
OPERATING
(Rupees)
72,06,071
7,14,70,400
6,16,14,800
5,22, 83,000
COST
in
country. The super distributors route the products to distributors who sells the
products to retail shops. The change in the supply chain has led to a positive
impact
on the business profile of the company as reflected in increasing sales through
ensuring wider availability of the products.
WEAKNESS:a) Strong Global Competition:- PAL has been extensively doing well in
India but to
establish it globally, needs a lot of strategy and hard work, due to the presence
of
well-established players in the market like BACFO, Himalaya etc.
b) Low Export Levels: - Presently the company is focused only in India. Extensive
growth globally has many hindrances from export policies, to international rules in
the field of medicines etc.
c) Less Promotion: - Where the major companies depend on promotion for its sales,
PAL
has kept itself out for some anonymous reasons. The trendz and statistics have
proven
that many companies have helped due to promotion. Promotion will help increase its
visibility in the market.
OPPORTUNITY:a) Untapped Rural Market: - Though the company associates itself with
rural India the
market penetration of PAL is weak in such areas. The major visibility of the
company
is in urban areas where the people are more health conscious. A rural market share
is
always there to be penetrated.
b) Rising Income and Purchasing Power: - The purchasing power of people have
increased. So, PAL can take a bit of liberty to increase the price. Especially in
the
sector where they are doing business, people can pay a bit more than what it is
being
sold now.
c) Export Potential: - Europe and America have always looked towards India for
effective Ayurvedic products. PAL can expand globally by establishing its market
even outside India. Neighbouring countries can also be a good potential.
THREATS:a) Political attacks: - There have always been attacks from the political
parties on
companies for adulteration. This can hamper their main USP i.e. trust.
b) Replication of Product: - Since the product are general in recipe or components,
can be easily replicated. This can lead to many small companies to emerge and
can increase competition.
c) Policies: - Since the company uses cultivated herbs as raw materials, any
policies
in future related to them can create hindrance in the growth of the company.
PORTER’S 5 FORCES
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Threat Posed by Substitutes –
Unless these issues are dealt with very fast, bad reputation could build up. So
consumer grievances and complaints should be addressed in a prompt way and get it
settled
offline without giving scope for much negative publicity. There have also been lots
of
customer complaints about irregular supplies and lack of stock for certain
products. By
implementing a better supply chain the company has to make sure that they won’t
lose their
existing customer base, who are loyal to the product to one of its rivals.
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STP STRATEGY
SEGMENTATION and TARGETING:
There is no specific segmentation for Patanjali Ayurved Limited. It follows
“MASS CUSTOMIZATION”. Mass customization is a marketing and manufacturing
technique that combines the flexibility and personalization of "custom-made" with
the low
unit costs associated with mass production.
Customer expectations of the service can be divided into two types - a)
desired service and b) adequate service. Desired service is the service that a
customer desires
and expects to get. Whereas an adequate service is one in which the minimal level
of service
which a customer is willing to accept based on his perception of service
acceptability. The
service provided by Baba Ramdev’s Patanjali is synchronizing well with the desired
service
expectations. Patanjali Yogpeeth, a multi-million rupee venture, Ramdev's dream
project, set
as a rival to World Health Organization only on the basis of sound service that it
boasts of
providing. The Patanjali Trust in Haridwar, Uttaranchal is equipped with all the
latest and
most sophisticated gadgets.
Patanjali targets both “Everyone who wants to live healthy” and “Anyone
suffering from any disease”. This is because it follows mass customization as
explained
above. The most important promotional activity involves yoga campaign by Baba
Ramdev
and the Patanjali trust. It has taken up the Social Responsibility to make people
healthy. The
organization is engaged in various good activities which are of great benefit to
the society.
Baba Ramdev has been giving importance on pranayam and yoga dimensions to target
the
mass population worldwide. Patanjali Yogpeeth is fully utilizing the historical
Indian roots
i.e. spirituality to competitive advantage, created by Baba Ramdev, to sell its own
products in
the market. Baba Ramdev's Patanjali Ayurved employs penetration strategy and cost
of goods
is very less. He tells people not to lose hope and not to depend on costly
treatments marketed
by various foreign brands. The diseases for which Indian population spends is much
more in
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hospitals, on the other side pranayam and yoga treat all the ailments completely
with cheap
and quality 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 incurable
diseases.
POSITIONING:
Patanjali as a brand Talks about “Being healthy is my birth right”. It helps
in improving life at low cost. Patanjali aims at providing excellent quality and
safe medicines
at a very cheap price compared to other foreign brands. They want people to make
our
country economically stronger by making them purchase medicines made in India by
Patanjali and not medicines made abroad. It is a well-established fact that
advertising affects
consumers. The literature on advertising has traditionally emphasized the
persuasive nature of
advertising: its purpose is to alter consumers' tastes for established brand names
or company
reputations. Hence, a more-advertised good is preferred over a less-advertised
good.
Whatever be the case, Baba Ramdev’s popular opinions of advertising and at the same
time
not advertising is unique in its nature. Baba Ramdev's live yoga classes have
become a
passion to not only citizens of India but all around the globe. This is the
positioning strategy
used by Patanjali.
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Therefore, within a very short span of time, Patanjali is a huge success
and is well known not only at national but also at international level. They have a
presence
now in international market. Patanjali Yogpeeth 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 Patanjali Yogpeeth has succeeded in creating a positive image through
ancient
Indian roots and using it to sell the products in the market.
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Intensive market research is the key to improve the existing products or to
introduce
new products into the market.
YOU HAVE BIG PLANS BUT FEW RESOURCES: Big plan is to make Patanjali a
global Indian Brand also aiming to acquire big market share of FMCG in India. But
with limited resources and lack of guidance PAL is already struggling hard to
maintain existing online store, unsatisfied whole sale retailers and many legal
cases
pointing the branding and patent issues. A good marketing strategy to convince and
compel everyone involved from distributors to consumers with a good skill set and
right use of technology is the need of the hour.
USING SOCIAL MEDIA TO GENERATE CUSTOMERS AND REVENUE: In this
age where major players like Himalaya, Johnson & Johnson, and HUL etc. are ruling
over the social media and continuously connecting with consumers via various forums
or promotional campaigns, it is hazardous for PAL for underestimating the power of
social media. Relying on mere Yoga Programmes for nationwide recognition is quiet
impractical. PAL should come up with similar promotional campaigns and increase
the number of customers.
Growth Path
Yoga and Ayurveda can be considered a combination that is the trend seen in
the health conscious population of the world. Patanjali brings these two together
as a daily
way of life into the world population. It is trying to set Yoga as a trend not only
in India but
around the world. It is also setting a new trend of marketing with digital
marketing.
The opportunities that Patanjali sees in the marketing environment is the presence
of a health conscious world where people are fed up with medicines that cause side
effects
worse than the actual disease that they are supposed to cure. Ayurveda and Yoga do
not have
any side effects. Capitalising on this opportunity Patanjali can expand its
operations around
the world where Yoga is followed and in place where herbal medicines are becoming
the
trend.
Its best approach to market the existing products would be “Integrative Growth
Strategy” and “Market Development”. Such kind of strategy stresses the importance
of a
consistent, seamless, multi-dimensional brand experience for the consumer.
Apart from yoga programmes in which Baba Ramdev promotes the Patanjali
products, other branding efforts like TV advertisements, print ads, radio etc. will
help in
reinforcement of the brand's ultimate message. Moreover, while continuing with the
intensive
marketing strategy, Patanjali should target particular segments where chances of
recognition
are really high. After successful awareness of ayurveda and Patanjali among people,
PAL
should sub-divide the current segment-Middle Aged people (Generally in age group
30-65)
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into further classes as well as introduce more segments and products related to
these
segments. Some of the segments which can easily grasp attention are:
Infant & Kids Care: A whole range of baby cosmetics, baby health drinks, kids
medicines can
be an eye catcher and with this range Patanjali can grab a good market share from
its big
players like Johnson & Johnson, Himalaya etc.
Middle age women: Falling health and their increasing incurable diseases is an
attractive
segment where investing time and money can reap good results.
Healthy & Ready-to-eat snacks: After the fall of Nestle's Maggi, market is open for
new
entrants. In such a scenario healthy &ready-to-eat snacks would be a big success in
the cities
where there is lack of time and for students.
Pregnant women or post natal care: Entire range of products which can aid the women
in
healthy delivery and post natal care is also an attractive sector.
Teenagers: Various Health Supplements required at the crucial growing age which can
easily
replace markets of Protein Shakes or other supplements preferred for good body
building,
Ayurvedic tonics for teenagers to cure acne and puberty related problems will also
attract
numerous customers who are looking for herbal options.
Patanjali has made its mark in the Indian market of ayurveda medicines but
the brand is familiar only in the Northern parts of the country. Patanjali stores
are hardly
visible in other parts of the country. Moreover, people are unaware of such a
brand. Store
visibility and placing their products in normal retail and pharmaceutical shops
will increase
the awareness as well as accessibility to the consumers.
REFERRENCES
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Patanjali Yogpeeth - Divya Yog Mandir (Trust), available:
http://www.divyayoga.com
http://www.slideshare.net/RaghuvendraSinghPari/presentation-for-
launchingpatanjali-yogpeeth-2
http://www.scribd.com/doc/61780413/Study-on-Patanjali-Yogpeeth-With-
OtherPharmaceutical-Companies#scribd
http://www.slideshare.net/kumardevk/marketing-stretegies-by-baba-ramdev?
next_slideshow=1
http://timesofindia.indiatimes.com/business/india-business/Ramdev-expands-
empirebeyond-yoga-to-FMCG-business-poised-to-touch-Rs-2000cr-
thisfiscal/articleshow/45861809.cms
http://www.thehindubusinessline.com/companies/ramdevs-patanjali-plans-
asplash/article5414874.ece
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