History about patanjali

Patanjali Ayurved Limited is an Indian consumer goods company. Manufacturing units and
headquarters are located in the industrial area of Haridwar while the registered office is
located at Delhi.[5] The company manufactures mineral and herbal products. It also has
manufacturing units in Nepal under the trademark Nepal Gramudhyog[6] and imports
majority of herbs in India from Himalayas of Nepal.[7][8] According to CLSA and HSBC,
Patanjali is the fastest growing FMCG company in India. It is valued at ₹30
billion(US$420 million) and some predict revenues of ₹5,000 crore (US$700 million) for the
fiscal 2015–16.[9][10][11] Patanjali declared its annual turnover of the year 2016-17 to be
estimated ₹10,216 crore (US$1.4 billion).[12]Baba Ramdev has stated in his interview
with CNN-News18 that profit from Patanjali Products goes to charity.[13]

Baba Ramdev established the Patanjali Ayurved Limited in 2006 along with Acharya
Balkrishna with the objective of establishing science of Ayurveda in accordance and
coordination with the latest technology and ancient wisdom.[14][15][16]
Balkrishna owns 98.6% of Patanjali Ayurved, and as of March 2018, has a net worth of
US$6.1 billion

Revenue

Revenues
Year
(In ₹ Cror

2010-
317
11
2011-
453
12
2012-
841
13
2013-
1184
14
2014-
2,006
15
2015-
5,000
16
2016-
11,526
17
2017- 20000-
18 25000

Products
Patanjali Ayurved[27] produces products in the categories of personal care and
food.[28][29] The company manufactures more than 900 products including 45 types of
cosmetic products and 30 types of food products. According to Patanjali, all the products
manufactured by Patanjali are made from Ayurveda and natural
components[30][31][32][33][34] Patanjali has also launched beauty and baby products.[35]Patanjali
Ayurvedic manufacturing division has over 300 medicines for treating a range of ailments
and body conditions, from common cold to chronic paralysis.[36][37][38]
Patanjali launched instant noodles on 15 November 2015.[39][40][41] Food Safety and
Standards Authority of India slapped a notice on the company as neither Patanjali nor
Aayush, which are the two brand names under which Patanjali got licenses, have got any
approval for manufacturing instant noodles.[42][43][44][45]
In 2016, Patanjali has announced to enter the textile manufacturing centre. The company is
reported to manufacture not only traditional clothes such as Kurta Payjama but also popular
western clothes such as jeans.[46]
On 5 November 2016, Patanjali announced that it will set up a new manufacturing plant
Patanjali Herbal and Mega Food Park in Balipara, Assam by investing ₹1,200
crore(US$170 million) with the manufacturing capacity of 1,000,000 tonnes (2.2×109 lb) of
goods per year. The new plant will be the largest facility of Patanjali in India and will be
operational by March 2017. Patanjali already has around 50 manufacturing units
across India.[

STP

How Patanjali Ayurved Ltd (PAL)used STP model for its marketing strategy ?

Segmenting and Targeting

PAL has segmented its market based on

1. Demographic – Income, age etc.

2. Psychographic - Health Consciousness, Patriotism

PAL's target segment comprise of health conscious people who prefer “value for money”
natural products. PAL has products targeted at children (health drinks) and elderly people
with a wide range of ayurvedic products (ayurvedic medicines ayurvedic FMCG products).
Almost all products of PAL are affordable in market ,at a price 15% - 30% lower than the
competition. Hence the income segmentation strategy has worked.

Initially the products were targeted at lower and middle income groups but with the present
turnover of close to a billion dollars (Rs 5000 cr) this fiscal, it is evident that PAL's products
have buyers not only from the lower income and middle income segments but also from
health conscious upper middle and upper income segments. These 2 segments have found
value in PALS's natural and ayurvedic products.

Positioning: Patanjali uses mostly these two positioning strategy

1. The brand slogan of Patanjali is “Prakriti ka Aashirwaad” which means Blessings of Nature.
Patanjali is positioned as “Natural Products available at affordable prices”.

2. The 2nd positioning is that of “Swadeshi Make” (Made in India).

Both the positioning strategies have created wonders for Patanjali. These positioning
strategy has synergistically integrated with the brand Patanjali as India is considered to be
the birth place of Ayurved.

SWOT ANALYSIS
Baba Ramdev: The exponential growth of Patanjali can be credited to Baba Ramdev and his
popularity. For a newly formed FMCG in India, it would have been impossible to show the
kind of growth that Patanjali has shown in such a short period of time. But the fan following
and goodwill of Baba Ramdev guaranteed that Patanjali grows quickly and becomes a
routine name in the Indian households.

Strong patriotism: Patanjali has used the India card to its advantage and has always
marketed that its a brand made in India, for Indians. Most of the brands in India
are international brand. Patanjali actively asks Indians to buy India made products to help
the economy of the country. Besides this, the quality of the products have helped in the
fantastic growth of Patanjali.

Ayurveda and Herbal: The Products that Patanjali offers are made from Ayurveda and
Herbal natural components. The Swadeshi products also have played an important role in
the success of Patanjali. India has never been low on plants or vegetation and we get a lot of
naturally grown medicines in our dense forests. As a result, India is one of the leaders in
Ayurveda.

Penetration Pricing: Patanjali products are generally priced at 20-30 % lower than the
competitive brands and thus it becomes impossible for the competitive brands to compete
with Patanjali on price. The company sources the products directly from farmers and thus
cuts on middlemen. Hence, they are able to produce at lower costs. A comparison of prices
for some products is given below are given below.

Price Comparison Patanjali Other Brand

 Rs. 115
Rs. 160
Chyawanprash
(500 gm)
(500 gm)

Rs. 135 Rs. 199

Honey (500 gm) (500 gm)

Rs 110 Rs. 159

Shampoo (200 gm) (200 gm)

Strong Distribution channels: Patanjali products are sold through medical centres such as
Patanjali Chikitsalayas and Patanjali Arogya Kendras, non-medical centres such as Swadeshi
Kendras. Patanjali already has 15,000 outlets across India. Patanjali was earlier criticised for
its distribution strategy, but it has now improved it by distributing through General retail
outlets and has recently tied up with the Future group for distribution through Modern
retail. They have now transformed its weakness into a strength.

E-commerce advantage: Patanjali sells very well through the E-commerce companies and
has a lot of packages of products which it sells online. So even if people are not nearby a
Patanjali store, but they believe in Baba Ramdev or want to purchase Indian products, then
they can do so online via E-commerce.

Word-of-Mouth Promotion: For a new company especially in the consumer goodscategory,

a high share of its expenditure goes into advertisements and promotions. Patanjali followed
a word-of-mouth promotion strategy initially and did not spend much on promotions and
advertising. Patanjali depended on over the Brand loyalty of its customers.
Keeping up with the trends: Owned by Babas and Swamis, Patanjali was supposed to be a
conventional Indian company but it has surprised everyone by bringing in various changes
required to be at par with its contemporary brands. Be it advertising using celebrities as
Brand ambassadors, Entering modern retail or using E-commerce as a platform. Patanjali
has also understood the potential of digital media and social media platforms and is also
spending on these channels.

Weaknesses in the SWOT ANALYSIS OF PATANJALI :

Over dependency on Ramdev: For many of its consumers, Patanjali is still synonymous to
Baba Ramdev and hence any actions of Baba Ramdev will have repercussions on the brand
itself. Baba Ramdev’s political affiliations are also well known and hence if at all he is
targeted for any political vendetta, Patanjali will also suffer.

A low number of manufacturing units: Patanjali has set itself an ambitious target of INR
10,000 crores for the fiscal year 2016-17. For that to happen, Patanjali would need to set up
manufacturing units in different parts of the country which would require heavy
investments. It also would have to move from the word-of-mouth strategy to nationwide
promotional campaigns.

Penetration pricing is not long term: Patanjali might have to compromise on its pricing
strategies if it wants to expand and thus it’s a big challenge for Patanjali. It cannot sell at
such low costs for a very long term. Any company needs profits to drive more sales and
therefore earn more profits. Its a cycle. But if Patanjali does not earn much, then it cannot
spend much and cannot expand.

Product Dependence: While Patanjali has many products in its kitty but a major part of its
revenues are dependent on 5-6 of its main products such as its toothpaste and shampoo.
They need to push the other products more to achieve its ambitious target.

Low margin to distributors: Patanjali offers much lower margins to distributors and retailers
as compared to other consumer goods company, since it is playing a game of volume and
not margins. That’s the reason for it being a demand run company.

Lack of experienced management graduates: Patanjali does not have a large pool of
management graduates and thinks tanks which can be a problem when they look for
expansion throughout the country or globally.

Opportunities in the SWOT ANALYSIS OF PATANJALI :

Growing organic sector: Patanjali has been successful in creating awareness about the
benefits of using herbal and natural products whihavecreated a market for itself. The
awareness has spread and the demand is ever growing.
Expand Rural: With the portfolio of products that Patanjali has, it has great potential in the
rural market and should look to expand its operations in the vast rural market of India.

Going Global: Patanjali has a great opportunity to expand globally and can look for Middle
East and African nation in the beginning. Various other companies such as Daburhave
already expanded globally and have been successful.

Tie ups: Patanjali has successfully tied up with Future group and should continue tie up with
modern retail chains and increase its E-commerce sales.

Diversify: While Patanjali is now present in retail products, it has not entered clothing which
is another area where competitors like Relianc and Aditya birla have expanded successfully.
So Patanjali can plan on diversifying its product portfolio even further to Khaadi, making it a
fashion statement and being true to the roots of Patanjali being an Indian brand.

Threats in the SWOT ANALYSIS OF PATANJALI :

Increasing Competition: FMCG majors such as HUL, Marico, etc. and new entrants such as
Sri Ayurveda are also entering the organic market after the awareness created by Patanjali
which increases the competition in the market.

Negative Word-of-Mouth: Any negative word-of-mouth created on social media platforms

can affect its position in the market.

Poor reap can affect business: Patanjali is heavily dependent on natural ingredients and
products and hence poor agricultural reap can affect its sales.

Price war: A price war is good for consumers but it is detrimental for business. The longer
the price war, the more is the effect on the brand. Companies like HUL, Colgateand others
have been at the top for long. They have deep pockets and they will naturally respond to
Patanjali. Such a price war will have drastic effect on Patanjali’s profitability, especially
because the brand is already selling at very low margins.

After solar panels, Patanjali now

enters cow milk business
Baba Ramdev's PatanjaliAyurved Thursday announced its entry into the cow
milk segment by launching cow milk and milk-based dairy products, targeting
sales of around Rs 1,000 crore by FY2020.
The Haridwar-based firm has also ventured into packaged drinking water,
frozen vegetables, cattle feed without any urea, and solar panels in a major
product offensive.

Patanjali would supply cow milk in the markets of Delhi NCR, Rajasthan,
Mumbai and Pune areas of Maharashtra with a network of around 56,000
retailers, dispensing around four lakh litres milk on daily basis.

"We are aiming to have a business of Rs 1,000 crore by next fiscal. This fiscal,
we would have a business of Rs 500 crore," Baba Ramdev told reporters at
the launch here.

The company has a target to touch daily sales of around 10 lakh litres of cow
milk by FY2019-20, he added.

"We have set up a chain of our own collection centres and chilling centres in
the last two years," Ramdev added.

The company would directly procure milk from around one lakh farmers
through its network and would encourage them to rear indigenous cow
breeds.

Patanjali is transferring money directly in the bank accounts of farmers.

"Our milk would be cheaper than other established brands by Rs 2 at Rs 40

per litre," Ramdev added.

Besides regular milk, Patanjali would also introduce milk and herbal flavoured
milk and other value-added products in tetra packs, to target the niche
segment and area beyond their coverage area.

While commenting on Patanjali's entry into the cow milk segment, its rival
Mother Dairy which has a large presence in the Delhi NCR, welcomed the
move and said it would help farmers.

"As a category creator and frontrunner, we welcome competition, including

Patanjali, as we believe their foray will further help in increasing awareness on
the great values of Cow Milk and its impact on the rural economy and
farmers," a Mother Dairy Fruits and Vegetables Pvt Ltd spokesperson said.

Besides, Patanjali also launched its packaged drinking water brand 'Divya Jal'
in the Northern and Western market. It has also plans to introduce natural
mineral water and herb-infused water.

Moreover, it has also forayed into the frozen vegetable segment and has
introduced green pea, mix vegetables, sweet corn and potato finger variant.

"Our products would be around 50 per cent cheaper than our rivals," said
Ramdev.

While, in the cattle feed without any urea segment, it has launched 'Patanjali
Dugdhamrit' brand.

In the solar panel segment, Patanjali has started a plant producing panels
worth 60 MW.

Patanjali, which has recorded multi-fold growth in recent years, had witnessed
a marginal growth only last fiscal hit hard by the implementation of the GST
regime.

In the 2016-17 financial year, Patanjali had clocked a turnover of Rs 10,561

crore, registering a 111 per cent growth.

4P’S

The reasons for Patanjali’s accelerated growth in a 4P framework

are:

Product: Differentiated product that appeals to the Indian belief in

Ayurveda/natural remedies/‘hand’ medicine

Price: Discounted at 20 – 30% compared to competition. Low cost pack

sizes – health juice sachets start at Rs 5, making their product accessible to
many

Place: Distribution through Ayurvedic pharmacies which further strengthens

their health proposition. They have continued with their franchisee based
distribution strategy but their tie-up with Future Group has enlarged the
product’s footprint, making its products easily accessible to shoppers.
Though going by the complaints on complaintboard.in, there are several
complaints about Patanjali’s online services on its website, duplication of
products and quality of staff. Tie-ups with online retailers such as
bigbasket.com and Amazon have given it access to a growing middle class
base along with reducing its cost on promotions.

Positioning: Strong positioning on Ayurveda and health consistently

reinforced by its ‘brand ambassador”. Ramdev recently added social causes
to the identity of the band. During the Patanjali Conference in May 2017,
Ramdev launched a school for the children of deceased army officers,
offering them free education. He even commented that Patanjali as a brand
was not interested in making profits but developing the future of the country,
effectively appealing to the emotions of the masses.