A STUDY ON STRATEGIES OF

PATANJALI AYURVED

Submitted By
MOHD ADIL SHAIKH

UNDER THE GUIDANCE OF

Mrs. VARSHA MAHESHWARI

A PROJECT SUBMITTED IN PARTIAL

FULFILMENT OF MMS TO

VIDYALANKAR INSTITUTE OF TECHNOLOGY

Wadala (East), Mumbai 400 037

March 2020

1
 A STUDY ON STRATEGIES OF

PATANJALI AYURVED

Submitted By
MOHD ADIL SHAIKH

UNDER THE GUIDANCE OF

Mrs. VARSHA MAHESHWARI

A PROJECT SUBMITTED IN PARTIAL FULFILMENT OF

MMS TO

VIDYALANKAR INSTITUTE OF TECHNOLOGY

Wadala (East), Mumbai 400 037

March 2020

Signature of Faculty Guide Head Of Department

2
 DECLARATION

This is to declare that the study presented by me to Vidyalankar Institute of Technology,

Head of Departmentin
Signature of Faculty Guide
completion of the Master in Management Studies (MMS) under the “A STUDY ON
STRATEGIES OF PATANJALI AYURVED” has been accomplished under the guidance of
Mrs. VARSHA MAHESHWARI.

MOHD ADIL SHAIKH

3
 ACKNOWLEDGEMENT

My project “A STUDY ON STRATEGIES OF PATANJALI AYURVED” has been a great

learning experience. I was exposed to the different areas at SFIPL and gained valuable
experience, which I will always recall with a sense of satisfaction and pride.

This is to acknowledge Mrs. Varsha Maheshwari under whose guidance I have been able to
successfully complete this project and effectively come to a very successful conclusion.

To all my colleagues who have helped me either directly or indirectly, I am grateful for their
valuable inputs. This project would not have been possible without their help.

MOHD ADIL SHAIKH

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 INDEX

TOPICS PAGE NUMBER

INTRODUCTION

Summary

Company profile

Mission and Vision

Objective of the study

Literature review

Marketing Strategies

Porter’s Five forces

PESTAL Analysis

SWOT Analysis

Marketing Mix

Unique Selling Preposition

Patanjali Ayurveda Key to success

Limitation

Annexure

Reference

5
 INTRODUCTION

The project title “A STUDY ON STRATEGIES OF PATANJALI AYURVED” provides a

comprehensive analysis regarding the performance of the company and its products in the
market. The project covers the aspects like Patanjali got success in such a competitive market
in a very short span of time and how competition from Patanjali prompts FMCGs to hit back.
The project covers the objective of the study that what is the main motive behind the study on
Patanjali Ayurveda. Through the project you will get know about that how Patanjali
Ayurveda become a giant FMCG within 8 years. And how the Patanjali accomplished
“MAKE IN INDIA” concept. And how Patanjali is becoming a tough competitor in the
market for the MNCs and the Indian companies. Patanjali is following the biggest
“SWADESHI MOVEMENT”. Patanjali’s vision and mission are discussed in the following
project. And you will get to know about the marketing mix of Patanjali Ayurveda and SWOT
analysis, Porter’s five forces Model, PESTEL Analysis followed by Patanjali Ayurveda. And
most important the unique selling proposition (USP) of Patanjali Ayurveda. Project is
concluding with the conclusion and suggestions.

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 SUMMARY

Patanjali Ayurved, founded in 2007 by Baba Ramdev and his adviser Swami Acharya
Balakrishan has grown into a 12000 crore company in 2019. It has disrupted the entire
FMCG market with its unconventional growth story. The credit goes to Baba Ramdev who
has very meticulously decided the timeline for each action and delivered unprecedented
success. Patanjali’s vision is to provide herbal/Ayurvedic/natural solutions to all the problems
and in this pursuit it is also elevating the livelihoods of local farmers. It has leveraged the
emotional route by bringing in the ‘Swadeshi’ angle to market its products. The drivers for
Patanjali purchase are lower price points which induces sampling and when they find no
noticeable difference with the pricey brands, they tend to stick to Patanjali. The key
differentiators for Patanjali are its herbal or Ayurvedic offerings and the free consultation it
provides to the customers at Arogya Kendras/ Chikitsalayas through its certified Ayurvedic
doctors. Besides it has also increased its distribution channels through franchise stores, retail
chains and kirana stores. However, the supply is not proportional to demand and a lot of
customers are not able to find the desired products. To solve this, they have invested in food
parks and have outsourced manufacturing to other SMEs while conducting stringent checks
to ensure consistent quality. The strategy followed by Patanjali is unconventional in that they
have not made any significant investment in marketing and promotion and have relied on
word of mouth publicity. Baba Ramdev has done minimal promotion by endorsing the brand
in his yoga sessions televised on national channels. The FMCG giants cannot rely on such a
strategy because they cannot sell the products at such low prices or provide free doctor
consultations and other activities on a continuous basis. Thus it is not feasible for other
companies to follow this model. The FMCG industry has a lot of big players with dominant
market leaders in each category. Patanjali is in direct rivalry with most of them and with time
has been able to take away market share from the best-selling brands. In retaliation, the
market leaders are bringing out newer herbal products at lower price points or putting into
action other strategies. However, Patanjali has the advantage of being the forerunner and
have gained sufficient traction that it will be difficult to displace them. The entrance of
Patanjali has not just marked its increased share of the pie but it has also managed to increase
the size of the pie itself.

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 COMPANY PROFILE

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. The company manufactures mineral and herbal products. It also has
manufacturing units in Nepal under the trademark Nepal Gramudhyog and imports majority
of herbs in India from Himalayas of Nepal. 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 crores (US$700 million) for the fiscal 2015–16. Patanjali
declared its annual turnover of the year 2016-17 to be estimated ₹10,216 crores (US$1.4
billion) and for 2017-18 it is around ₹12000 crores. Baba Ramdev has stated in his interview
with CNN-News18 that profit from Patanjali Products goes to charity. l care products, dental
care products, food products, cosmetics, toiletries, hair care products, and other products. It
offers food and beverages, such as flour, ghee, confectionary, oil, pickles, honey, spices,
juices, and sharbats; personal care products, which include soaps, baby creams, mehandi,
hand washes, toothpaste, body oils, rose water, etc.; ayurvedic products, which include
general-digestives and chyawanprash; and other-capsules, churnas, etc. The company offers
ayurvedic products for the treatment of cancer, AIDS, diabetes, arthritis, thyroid, and more. It
provides its products through distributors, mega-stores, and chikitsalayas. Patanjali Ayurved
Limited was incorporated in 2006 and is based in Haridwar, India.

TOTAL INCOME COMPOSITION OF PATANJALI PRODUCTS AND THEIR

CHALLENGES

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This diagram shows the income composition of patanjali Ayurveda, which shows that 21% of
income is generated from health care ayurvedic products of patanjali, 40% of total income
generated by patanjali is from food and beverages and around 39% of share of income is
generated from cosmetics and home care products of patanjali.

Challenges:

HUL and Dabur focusing back on Herbal

Late entrant to Advertising game

Noodle: a risky proposition?

Scaling up and Global expansion

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 MISSION AND VISION OF PATANJALI AYURVEDA

• MISSION

1. To reach the great heights

2. To restart the swadeshi movement

3. To produce good quality products at cheaper rates

4. To introduce Indian Ayurveda to this modern world

5. To crack the maximum market share.

• VISION

1. To be a top Ayurveda company among all MNC’s

2. To Re-introduce the Indian Ayurveda

3. To crack the world’s attraction to our India

4. To work for the welfare of Humanity

5. To reinvent our traditional knowledge of Yoga and Ayurveda

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 OBJECTIVE OF THE STUDY

The main objective to study this project is to know about the different strategies of Patanjali
Ayurveda.

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 LITERATURE REVIEW

Patanjali started its operations with Patanjali Yogpeeth in Haridwar, Uttarakhand. Patanjali
yogpeeth is one of the biggest yoga institutes in the country. Swami Ramdev and Acharya
Balkrishanaji set up Patanjali Ayurveda Ltd for treatment, research and development and for
the manufacturing of Ayurvedic medicines in Yoga and Ayurveda.

Patanjali Yogpeeth offers treatment and scientific research and has brought a coup when it
comes healthcare in the country with the combined approach of Yoga and Ayurveda.

The infrastructural facilities at Patanjali Yogpeeth includes an OPD for free medical
consultation, IPD of thousand beds, laboratory for test investigation of radiology, cardiology
and pathology, a yoga research division, free yoga classes, high quality ayurvedic medicines
manufactured by Divya pharmacy, facilities of library and reading room along with a cyber
café, a huge auditorium, apartments for senior citizens, a grand museum and a sale channel of
11,000 square feet for literature related to yoga and Ayurveda.

Patanjali Ayurveda- Entry into FMCG

Patanjali started off manufacturing bulk ayurvedic medicines later branching its operations
into FMCG markets as well. Since, the FMCG market has low entry barriers, Patanjali soon
entrenched itself as a major consumer goods’ manufacturer. The recent trends clearly imply
that the company’s preference are shifting from medicines to consumer goods, perhaps
because the net revenues earned through FMCG are on par with ayurvedic medicines.

Patanjali Ayurveda – Current Market Insights

Patanjali as a brand currently has more than 350 products from Soap to Toothpaste and from
Oats to Health drinks. The 2014-2015 revenue of Patanjali Ayurveda crosses Rs. 2000 crore
figures. In January 2016, IIFL said “Patanjali Ayurveda Ltd has, in a short span of less than a
decagon, recorded a turnover higher than what several companies have managed to
accomplish over several decagons.

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Patanjali’s Performance (2010-11 to 2017-18)

Proactive moves in Innovation

Patanjali Ayurveda is aggressively planning to enter into every consumer category. Currently
Patanjali Ghee is expected to be at INR 12 billion in the financial year 2016 and if it gains
solid distribution expertise, it could pose a serious threat to its competitors. An innovative
R&D facility equipped with latest technology, Patanjali has also launched a mobile app
which helps the consumer to locate retail channels and for online ordering of Patanjali
products

Patanjali’s Supply Chain Management

The three phases of patanjali’s supply chain are product flow, information flow and cash
flow. Patanjali has recently completed a tie up with Future group to sell the products. They
also sell their products through their own channels opened in almost every district/city of
India. Each channel has to send their demand to central office at Hardiwar. Then as per the
demand, various products are gathered from various units of Patanjali. The items are
delivered to channels majorly through Patanjali transport.
 

Sales and Distribution – Patanjali

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Patanjali provides sale of products online and can also be get hold of through post by sending
the money through demand draft

Patanjali herbal products are available at Post Offices across the country

Patanjali also has “Patanjali Chikatsalayas” and “Patanjali Arogya Kendra” in almost all the
cities of the country

To strengthen the distribution Patanjali is also implementing ERP which will help them in
managing the inventory.

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 MARKETING STRATEGIES

A marketing strategy is a process or model to allow a company or organization to focus

limited resources on the best opportunities to increase sales and thereby accomplish a
sustainable competitive advantage.

Two major troop of marketing strategies can be distinguished: (a) Strategies, which describe
how to clout the relevant market. On the other hand, there are (b) Strategies, which describe,
to which extend an organization employs “power” or “force” to tackle market related issues.

(a) 4 different types can be differentiated:

Segment strategies: Which market in terms of product/customer-combinations will be

managed? Which products and /or services will be offered to which customer segment?
Strategies for market stimulation: Which marketing instruments will be employed in order to
develop certain preferences?
Strategies for market itemization: Which fundamental market items (in terms of structures)
are useful? Does the organization employ mass marketing or segment marketing techniques?
Does the organization cover the entire market or “only” parts of this market?
Strategies for market areas: Which areal dimensions should be used to implement a
strategy?

(b) 3 types can be distinguished, too:

Pull back strategy: to make a strategic withdrawal (in military terms: a fall back strategy)

Assert strategy: to assert and to extend a certain position

15
Competition strategies.

• MARKETING MIX

Marketing involves a number of activities. To begin with, an organization may decide on its
target group of customers to be served. Once the target group is decided, the product is to be
placed in the market by providing the appropriate product, price, distribution and promotional
efforts. These are to be combined or mixed in an appropriate proportion so as to achieve the
marketing goal. Such mix of product, price, distribution and promotional efforts is known as
‘Marketing Mix’. According to Philip Kotler “Marketing Mix is the set of controllable
variables that the firm can use to influence the buyer’s response”. The controllable variables
in this context refer to the 4 ‘P’s [product, price, place (distribution) and promotion]. Each
firm strives to build up such a composition of 4‘P’s, which can create highest level of
consumer satisfaction and at the same time meet its organizational objectives. Thus, this mix
is assembled keeping in mind the needs of target customers, and it varies from one
organization to another depending upon its available resources and marketing objectives. Let
us now have a brief idea about the four components of marketing mix.

Product: Product refers to the goods and services offered by the organization. A pair of
shoes, a plate of dahi-vada, and a lipstick, all are products. All these are purchased because
they satisfy one or more of our needs. We are paying not for the tangible product but for the
benefit it will provide. So, in simple words, product can be described as a bundle of benefits
which a marketer offers to the consumer for a price. While buying a pair of shoes, we are
actually buying comfort for our feet, while buying a lipstick we are actually paying for beauty
because lipstick is likely to make us look good. Product can also take the form of a service
like an air travel, telecommunication, etc. Thus, the term product refers to goods and services
offered by the organization for sale.

Price: Price is the amount charged for a product or service. It is the second most important
element in the marketing mix. Fixing the price of the product is a tricky job. Many factors
like demand for a product, cost involved, consumer’s ability to pay, prices charged by
competitors for similar products, government restrictions etc. have to be kept in mind while
fixing the price. In fact, pricing is a very crucial decision area as it has its effect on demand
for the product and also on the profitability of the firm.

Place: Goods are produced to be sold to the consumers. They must be made available to the
consumers at a place where they can conveniently make purchase. Woolens are manufactured
on a large scale in Ludhiana and you purchase them at a store from the nearby market in your

16
town. So, it is necessary that the product is available at shops in your town. This involves a
chain of individuals and institutions like distributors, wholesalers and retailers who constitute
firm’s distribution network (also called a channel of distribution). The organization has to
decide whether to sell directly to the retailer or through the distributors/wholesaler etc. It can
even plan to sell it directly to consumers. The choice is guided by a host of factors about
which you will learn later in this chapter.

Promotion: If the product is manufactured keeping the consumer needs in mind, is rightly
priced and made available at outlets convenient to them but the consumer is not made aware
about its price, features, availability etc., its marketing effort may not be successful.
Therefore, promotion is an important ingredient of marketing mix as it refers to a process of
informing, persuading and influencing a consumer to make choice of the product to be
bought. Promotion is done through means of personal selling, advertising, publicity and sales
promotion. It is done mainly with a view to provide information to prospective consumers
about the availability, characteristics and uses of a product. It arouses potential consumer’s
interest in the product, compare it with competitors’ product and make his choice.

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 PORTER’S FIVE FORCES ANALYSIS

• Bargaining power of Buyers (dealers, whole sellers)/ customers:

HIGH

The switching cost is very low in case of FMCG products. FMCG market is extremely
competitive and hence every company fights to get the largest shelf space at the most
strategic locations to have greater visibility. On the contrary, the products are low
involvement products and are not highly differentiated. Thus they ask for higher margins to
stock the products. For the customer, he/she has a wide array of choices. The Indian customer
is price-sensitive as well. So unless he/she sees value in the products or are given discounts it
would be difficult to persuade him/her to purchase. In such a setup, the dealer/ whole seller/
distributor/customer has higher bargaining power.

• Bargaining power of Sellers: LOW

They have typically low bargaining power, Big FMCG companies have more power in
deciding the pricing structure when they source from local farmers or fragmented commodity
supplier groups. The FMCG companies are also moving towards backward integration with
farmers so as to capture a larger part of the value chain. They provide the expertise to these
farmers and in ret urn are able to source raw materials at cheaper prices. Finally, the big
FMCG companies are also signing MOUs with local government to source items at fair
prices from the farmers.

• Threat of substitutes: HIGH

There are a lot of brands and hence an equal number of offerings from each brand. The
product differentiation is not superb and thus commoditization is not uncommon. Thus threat
of substitutes is quite high since there is a huge number of products in the same category.
Besides the switching cost is nil. The only concern is the availability of products in particular
channels.

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 • Threat of new entrants: MEDIUM

Barriers to entry is quite high since it requires significant capital investment in setting up
distribution networks and brand promotion. The existing distribution channels are already
being used by the current players. The economies of scale can be leveraged byonly a few
with expertise. The established brands do a lot of marketing to build brand equity and thus it
will be difficult to beat them in their game. Unsustainable prices cannot be offered as the
newer companies do not have so much money to spare on promotion.

• Competitive Rivalry: HIGH

The competitive rivalry is very high as the private label brands give heavy discounts
compared to the established brands. Thus the weak players are ousted from the market. There
are a huge number of players as the market is highly fragmented. More MNCs are also
coming to join the competition. The established brands do a lot of branding to demand higher
prices. So it is difficult to gain market share in any category.

• Conclusion:

Thus the overall industry is only mildly attractive for new entrants because of the huge
investment and marketing costs. However, Porters five forces have a weakness as it
undermines the core competencies of the company which it may utilize to earn profits.

19
 PESTLE ANALYSIS

• Political

Present political climate is favourable to Patanjali as it is close to government and it is

following government initiative like ‘Make in India’ campaign. Government is promoting
Ayurveda through “Ayush – Ministry” to promote Yoga, Ayurved and other traditional and
complementary medicines. That gives Patanjali a huge boost as it itself claims it to be an
Ayurvedic company. Government’s taxation policies affect the cost of the input products,
hence affecting the final price of the products. PAL input costs increases or decreases based
on the taxation policies of the government.

• Economic

Inflation rate affects the buying nature of consumer. With inflation rate increasing
continuously, people are looking for cheaper and effective substitutes. With the brand and
trust of Patanjali, it has formed the potential substitute. Since the raw materials for the
manufacturing are from the natural environment and the company focuses only in retailing in
India alone, the factors like fluctuating global economy and currency fluctuations have no
significant impact. Implementation of Goods and Services Tax GST) will also help PAL.
Higher tax rates and interest rates affect the cost of capital adversely increasing the
manufacturing cost. This makes the products costly in the market.

• Social

The people of India are becoming more health conscious; and want to consume organic
products. Rise in healthy FMCG products from 2284.4 US $ million in 2003 to 9000 US $
million in 2016 acknowledges the above statement. This particular trend opens up the market
for PAL, which offers trusted Ayurvedic products. The affordable price also helps them to
cover the whole market size. In India, average life expectancy, which used to be around 42 in
1960, steadily climbed to around 48 in 1980, 58.5 in 1990 and around 62s in 2000. The
improvement in life expectancy attributes to better diet and health consciousness among
people. This particular trends enhance the scope of companies like PAL.

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 • Technological

Government has created favourable climate for R&D work in country. Patanjali has in house
R&D facility; using which they are developing new products in Ayurvedic way. Few
examples are as below: For the manufacturing unit in the company, it has high frequency
drier unit for quick liquefaction a fluid wed processor. Tablet compressing device with the
capacity for preparing one lac tablet per hour. High speed auto coater for coating the tablets
Utility centre has been set up in the production unit has two generators with boilers and
compressors Company has PLC controlled packing machine having capacity of 300-400 volts
with automatic blister packing equipment 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. Company is also working for
new farming ways.

• Legal

There are several rules and laws for Ayurvedic medicines and the process by which
medicines are prepared: o The Medicine Central Council Act-1970, o The Drugs and
Cosmetics Act 1940 and rules made thereunder o The Drugs and Magic Remedies Act 1954
and the rules made thereunder. Quality assurance needs to be fulfilled by those medicines,
which are being prepared and laws are there for this process as well.

• Environmental

The main problem, which Ayurveda has to confront, is seasonable herbs and their locations.
There are many herbs, which are available in winter season, autumn season or in summer
season. Some herbs are available only on the mountains at very high location and some of
them are not easily identifiable. Technology can help to construct area where we can do the
artificial farming for those herbs by maintaining temperature according to the herbs. As the
company itself calls itself a Ayurvedic company, it is favourable to environment and has no
side effects to people nor environment.

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 SWOT ANALYSIS

S-STRENGTH

 Brand Name

 Strong TQM

 Excellent Marketing Strategy

 Innovative Personality

 Cheap price cum Charming Products

W- WEAKNESS

 No standard advertising

 Lower Concentration on Other top countries

 Lower Marketing strategies

O-OPPORTUNITIES

 Possibility of Becoming World’s Top MNC

 Expansion

 Maximum Marketing Share

T-THREATS

 Govt. Regulations

 Maximum Taxes

 Lack of Support from Foreign Government.

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 MARKETING MIX OF PATANJALI AYURVEDA

Founded in 2006 by Acharya BAL Krishna and Baba Ramdev, Patanjali Ayurveda is an
Indian FMCG Company. Patanjali Ayurveda happens to be the fastest growing FMCG
Company in India. Patanjali Ayurveda imports herbs from Himalayas Nepal.

Patanjali is manufacturing its products in Nepal, working under the brand name of Nepal
Gramudhyog. Patanjali Ayurveda is the India’s fastest growing FMCG Company is valued at
3000 Crore and generated a revenue of 5000 Crore for the fiscal year of 2015-16.

Hindustan Uniliver and P&G are the FMCG companies, whose market share has been
potentially affected by Patanjali. P&G and Hindustan Uniliver are on back foot and trying to
pull customers back by providing huge discounts and remarkable offers.

PRICE
PRODUCT Value Based
All Existing Products + Pricing
Herbal Products to Alignment of Cost,
treat Cough & Cold Customer &
Competitors

PLACE PROMOTION
Franchisee Stores,
Super/Hyper markets & Yoga Shivir to create
Online Marketplace awareness, YouTube
Channel, Social Media
(like souq.com, to target GULF (MENA)
desertcart.ae)

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 • PRODUCTS IN THE MARKETING MIX OF PATANJALI
AYURVEDA

Baba Ramdev is steadily pushing Indian people to start using Indian brands and save the
economic growth of the company. Patanjali is planning to take over all reputed brands
dealing in beverages and foods.

The service (yoga) that Baba Ramdev is selling is the product.

The product "Pranayama" is well suited for all irrespective of class, creed, culture and hence
this success.

Swamiji's unique contribution has been to lead a healthy life through the practice of simple
breathing exercises.

Understand and meet consumers' needs and wants.

The ambiance of patanjali yogpeeth is world class.

Swami Ramdev's Divya Medicines are claimed to be one hundred percent natural, no or very
little side effects.

Medicines are available at a very low cost.

Medicines can cure all the diseases from a simple cold to cancer.

Products where Patanjali is present and beating competition are

Dabur Honey: Patanjali Ayurveda is providing people with option to buy quality honey at
around 30% lesser price than Dabur.

Colgate: Patanjali Ayurveda is preaching how Colgate cheated people in early days. And
how Ayurveda is the best way to treat your gums and your teeth.

Patanjali Noodles: Patanjali Noodles rose to fame while Maggi was away from the market
and has done quite damage to Maggi, which once was the king of Noodle’s market.

24
 • PRICING IN THE MARKETING MIX OF PATANJALI
AYURVEDA

Developing an effective pricing strategy remains the most important and difficult part of the
marketing process.

For instance, a nominal 1 per cent increase in price realization will boost net income by 6.40
per cent for Coca-Cola and 28.70 per cent for Philips.

Baba Ramdev's fees of Pranayama is cheap in compare to other medical treatment.

This is the cheapest and the only complete cure to most of the so called incurable diseases
like diabetes, cancer, HIV & AIDS too.

25
 • PLACE IN THE MARKETING MIX OF PATANJALI AYURVEDA

Patanjali Ayurveda is India’s fastest growing FMCG Company but it is not stopping it from
spreading its wing to neighboring countries like Nepal. Patanjali has a manufacturing unit in
Nepal. Patanjali also imports herbs from Himalayas in Nepal; the well-entrenched trade
relation is helping Patanjali expand its wings in Nepal with great ease.

With the growing outreach in India and Nepal, Baba Ramdev surely will be aiming to
overtake market in lot of other countries. With impressive revenue of 5000 Crores.

In India, 1000’s of stores are now selling Patanjali products, and these stores are exclusively
selling Patanjali, making the local retailer quake. The penetration levels will only rise further
as the margins in the product are good too.

26
 • PROMOTION IN THE MARKETING MIX OF PATANJALI
AYURVEDA

Patanjali Ayurveda goes with the Slogan “Prakriti ka Ashirwad”. Well, Patanjali Ayurveda
has acquired the requisite fame and popularity among people because of the globally
recognized Yoga Guru, Baba Ramdev. This brand ambassador of Patanjali is single handedly
responsible for the success of the brand. His contribution to people’s life through Yoga is
incredible hence people felt aligned towards him when he launched his very own Indian
FMCG Company.

It is a well-entrenched fact that advertising affects consumers.

Baba Ramdev has hit both the opinions as he is advertising and at the same time not
advertising.

In the year 2002 when Aastha television channel started airing Baba Ramdev's yogic classes;
overnight, Baba Ramdev became a sensation he had hundreds of followers who morphed into
thousands.

Millions around the country follow his programed religiously and use Ayurvedic medicines
prescribed by him.

His yoga sessions were beamed live into 170 countries.

Baba Ramdev's pack one DVD, two Video CDs written three books on Yoga, Pranayama
Herbal Remedies and Magazines are available.

He has mastered the art of mass customization and practices so that each individual feels that
he is talking to him individually.

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 UNIQUE SELLING PROPOSITION (USP)

Constructing a "Disease Free Society - Medicines Free World", embraced dream of BABA
RAMDEV.

It is declared that after comprehensive research of the antique outcome of Pranayama Yoga
during last numerous years, it has been demonstrated now that proper Breathing Technique's
practice can antidote all diseases completely without medicines or surgery.

He claims to have trained 35,000 persons that are well equipped to hold yoga classes in
different regions of the country.

Patanjali Yoga Ashram has set up 535 branches and 15 more centres are in the process of
being entrenched.

This is engaged towards creating a new USP wherein any requirement of the customers can
be fulfilled to without setback.

This is the unique selling proposition of Patanjali Ayurveda.

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 PATANJALI KEY TO SUCCESS

1. Less Price:

Patanjali products are available at an attractive discount as compared to their competition.

The company sources products directly from farmers and cuts on middlemen to boost profits.
Hence, they are able to reduce their raw material procurement cost and are able to produce
goods at a much cheaper price.

2. Strong Distribution Channels:

Patanjali products are sold through three types of medical centers. These include Patanjali
Chikitsalayas which are basically clinics. Then there are Patanjali Arogya Kendra’s which are
health and wellness centers. They also have non-medicine channels called Swadeshi
Kendra’s.

3. Strong Brand Association with Health Because Of Baba Ramdev:

Patanjali is able to create a brand perception of health and wellness among the Indian
masses, primarily because of Baba Ramdev’s association. Hence, more people are getting
attracted to Patanjali’s products and are re-buying products more frequently.

4. Simple Packaging Gives It A Natural Look:

Patanjali sells its products with a very simple packaging. Now, many would feel that it is not
a good strategy but the truth is it is working for Patanjali. With a product like Patanjali, where
the message is to promote ‘Ayurveda’ and ‘Health’, simple packaging can be a very effective
way of promotion. With a natural look (especially with leaves and herbs), consumers get a
feeling of health and wellness and they are attracted to buy the product.

5. Promotion through Media:

Baba Ramdev is considered to be a guru of yoga across the globe. He has been very co-
operative with press and media and has maintained good relationships with them. Also, he is
known to have good connections with many politicians. So he used both the facts to publicize
his company free of cost.

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6. Word-Of-Mouth Promotion:

Advertising and promotions typically account for 12-20% of revenue expenditure by

consumer goods companies. When a new company gets into the business, this spending is
significantly higher. During the introduction stage, Patanjali followed a unique word of
mouth publicity model and the entire revenue was without any advertising. It was because of
the brand loyalty of its customers that the word-of-mouth promotion proved so successful for
the company.

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 LIMITATION OF THE STUDY

Limited numbers of respondents

Time limitation for compelling the project.

The data obtained in some cases may be biased.

Difficulty in communicating within the city while conducting the survey.

The information obtained from the consumers based on questionnaire was assumed to be
factual.

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 ANNEXURE

1. Do you use Patanjali Ayurveda products?

Yes No

2. Which category products of Patanjali Ayurveda you use?

MEDICINE FOOD PRODUCT SUPER-FOODS

AYURVEDIC BODY CARE AYURVEDIC PUBLICATION

3. How frequently you use the Patanjali Ayurveda products?

Weekly Monthly Yearly

4. Would you like to recommend Patanjali Ayurveda products to other?

Definitely Definitely not Probably Probably not

5. Why do you choose Patanjali Ayurveda products?

Natural in Nature Good Quality with Maximum Quantity

No Negative Effects Cheaper Prices

6. From where do you buy it?

Online order Retailer

Patanjali stores Wholesaler

7. Have you seen any tangible health benefits of using Patanjali Ayurveda products?

Yes No

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8. Do you find them affordable?

Definitely Definitely not Probably Probably not

9. Would you like to switch brand in near future?

Yes No

Overall, how much satisfied you are with Patanjali Ayurveda products?

Satisfied Somewhat satisfied Unsatisfied

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 REFERENCE

http://stellarix.com/fusce/a-report-on-patanjali-ayurveda/

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