Consumer Goods Industry in

India & Abroad

Overview, market size, growth trends, news resources

The consumer goods industry is a flourishing, enchanting place. Consider these facts:

 Ninety-four percent of people the world over recognise Coca-Cola’s red-and-

white logo.
 Wal-Mart records a profit of $1.8 million every hour on an average.
 The economy of McDonald’s would make it the 68th largest country in the
world, just ahead of Sri Lanka.
Be it their quality or price, taste or flavour, or packaging or ease of use, or even the
celebrities promoting them, there’s something about our favourite brands that make us love
them, sometimes beyond reason.

They are our daily must-haves, and we are almost always well-stocked for a week or month
or more. But we could still go out for some retail therapy.

What really are these things that we call “consumer goods”? Here’s a concise definition:

Consumer goods are products that are manufactured for use by individuals and sold through
retail outlets.
They include not only processed food and beverages, toiletries, cosmetics, and household
cleaning products, but also home appliances, and electronic goods. The list could go on and
on, of course.

Moving on to their classification: there are two types of consumer goods—durable goods and
non-durable goods. While durable goods last, and buyers can use them over a long period,
non-durable goods are consumed over a much shorter period.

Non-durable goods are better known as “fast-moving consumer goods” (FMCGs), or

consumer-packaged goods (CPGs). FMCGs move off shop shelves faster than other goods,
either because there is a huge demand for them or because they have a shorter shelf-life and
deteriorate rapidly.

Examples of FMCG products are processed food and beverages, toiletries, cosmetics,
household cleaning products, pet-care products, footwear, and over-the-counter drugs.

On the other hand, consumer durable goods usually have lifespans ranging from one to three
years or more. Examples are electronic goods, kitchen appliances, and leisure equipment.
They have a longer utility value than FMCG goods, and consumers require fewer repeat
purchases of durables.
Consumer durable goods can be further categorised into white goods (such as air-
conditioners, washing machines, refrigerators, and other domestic appliances), brown goods
(microwave ovens, electrical chimneys, mixers, grinders, irons, and fans), and consumer
electronics (such as PCs, mobile phones, TVs, camcorders, and digital cameras). Often, home
décor products and furniture are also called consumer durables.

The consumer goods industry is closely connected with other industries such as
manufacturing and technology. For its survival and progress, it depends a great deal on
advertising through various media and on retail outlets, such as shops, malls, franchise stores,
discount stores, and online platforms.

Consumer goods companies find themselves jostling with one another for market share, and
they take brand-building and product differentiation seriously. Many of the top players are
big conglomerates with wide portfolios of products.

History of the consumer goods industry

During the Second Industrial Revolution in the mid-19th century, goods began to be
manufactured on a large scale (see the post on the manufacturing industry).

Machines helped make goods, particularly those targeted at individuals and households,
available in large numbers at affordable prices. Gradually, the “consumer goods industry”
became well-established, first in the industrialised world and later in all parts of the world.

Looking back at recent history, from the mid-1967 to 2012, consumer goods companies did
better than their counterparts in other sectors.

A McKinsey Insights global report on the industry divides these 45 years into four eras: the
golden age of growth (1967 to 1985), when revenue soared; the era of expansion (1985-
2000), when margins broadened, thanks mainly to low input prices; the M&A (mergers and
acquisition) wave (2000-2007), when revenue increased but the total return to shareholders
(TRS) decreased; and the Great Recession (2007-2012), when revenue growth was limited.

The industry’s future

Today, the consumer goods industry is the favourite child of every nation’s economy. But
what about its future? Companies in the sector, be they global conglomerates or local
wannabes, can grow if they identify markets where they have the most potential, be they in
the developing or the developed world, and build effective strategies.

They could follow the example of a few local companies that have dared to venture out of
their comfort zones to explore new markets and are now reaping rich rewards.

One challenge is to evolve strategies of managing the prices of their inputs. Technology
advances, which have made possible online sales, 3D printing technology, and radio-
frequency ID (that helps improve supply-chain efficiency), present companies with
opportunities for growth.
Social media allows them to reach out to customers, and companies need to increasingly, and
more seriously, use these channels for brand-building.

Government regulations are likely to become stricter under pressure from consumers, who
are now more aware of health and safety, and companies will need to have an eye on this
situation as well.

In today’s marketplace, it is no longer enough for consumer goods companies to achieve

“product differentiation” (that is, make their products stand out in a crowd of competitors).

They need to create brands interesting. As Saatchi and Saatchi CEO Kevin Roberts says,
products should leave “lovemarks” — that is, build brand loyalty that goes “beyond reason.”

Quick facts and statistics

The largest market for the consumer goods industry is the US, followed by China. India,
Indonesia, Brazil, Mexico, and other developing countries are expected to be the new growth
engines for the sector.

In 2014, the global FMCG sector was worth $8 trillion, which is nearly the GDP of Japan and
Germany combined (India’s GDP is $2.05 trillion).

The top ten global FMCG companies, based on net sales in 2014, are Nestlé ($100 billion),
Proctor and Gamble ($83 billion), PepsiCo ($66.6 billion), Unilever ($66.1 billion), JBS ($49
billion), AB Inbev ($ 47 billion), Coco- Cola Company ($45 billion), Tyson Foods ($37
billion), Mondelēz ($34 billion), and Archer Daniel Midlands ($31 billion). The ten most
purchased brands globally are Coca-Cola (Coca-Cola Company), Colgate (Colgate-
Palmolive), Maggi (Nestlé), Lifebuoy (Unilever), Nescafé (Nestlé), Pepsi (PepsiCo), Lay’s
(PepsiCo), Knorr (Unilever), Dove (Unilever), and Tide (P&G), according to online sources.

The global consumer durables goods industry, on the other hand, was estimated to be worth
$13 trillion in 2013.

Consumer Goods industry in India

FMCG sector

India’s FMCG sector is worth $35 billion and is the fourth largest of its economy. India
continues to top the Nielsen’s global consumer confidence index (a measure of how people
feel about their own finances and their country’s current and future financial positions).

FMCGs were sold through 8.5 million outlets all over the country. Among the top companies
are ITC ($ 7 billion), Hindustan Unilever and Godrej (turnover $4 billion), Amul ($2.15
billion), Parle Agro ($1 billion), Marico ($850 million), Britannia Industries ($730 million),
Procter and Gamble ($83 billion), Nestlé ($87 billion), and Colgate Palmolive (global
turnover $17 billion). Dabur, Cadbury India, and Asian Paints are also included in the
toppers’ list by some sources.
The most loved brands in the country are Colgate, Parle, Wheel, Clinic Plus, Fair and Lovely,
Lifebuoy, Tata Salt, Lux, Rin, Britannia, Kwality Walls, and Nestlé.

Food and beverages have a more than 50 percent share of the FMCG market in India.
Personal care products (20 percent), tobacco products (15 percent), and household care
products (10 percent) come next.

FMCG companies reach their customers through retail stores, department stores, malls, and
franchisee outlets. Among the biggest names in the retail business are Shoppers Stop,
Reliance Retail, ITC-LRBD, Westside, Pantaloons Retail, Big Bazaar, and Aditya Birla
Retail.

The growth of rural markets has been a major factor in the improving fortunes of FMCG
companies. Nielsen predicts that the rural FMCG market alone will increase to $100 billion
by 2025. Companies have been quick to target it by creating specific products.

In urban areas, double-income couples and bigger disposal incomes have made consumers
switch from value products to high-quality goods. The quantity of foods purchased has also
increased.

The other drivers of the FMCG market are changing lifestyles, advertising, and foreign
investment. The government’s decision to relax licensing rules and allow 100 per cent foreign
direct investment (FDI) in single-brand retail and 51 per cent FDI in multi-brand retain have
helped the sector to no small extent.

The reduction in customs duty on machinery used by food units and the cut in excise duty on
food mixes have been a blessing.

However, the sector also faces some challenges, including relaxation of import restrictions,
and thereby greater availability of foreign brands, which might result in customers shifting to
these brands in place of domestic ones. The problems of the farming sector will affect sale in
rural areas.

Consumer durables sector

The Indian consumer durables sector was worth about $10 billion in the 2014-15 financial
year and is expected to grow to $12.5 billion in 2015-16. The sector is seeing tough
competition, as a result of which prices are coming down.

Among the top brands are Sony, Samsung, Whirlpool, LG, Godrej, Sony, Hitachi, Haier,
Blue Star, Carrier, Khaitan, Kelvinator, Videocon, Titan, TTK Prestige, Bajaj Electricals, HP,
Philips, VIP, and Siemens. Although domestic demand is growing, high-end products
continue to be imported. Similarly, there is high reliance on imports for components, such as
semiconductors.
Urban areas account for 65 percent of the consumer durables market. In cities, the demand
for LED TVs, split ACs, and laptops are increasing, whereas, in rural areas, more households
are purchasing refrigerators and mobile phones.

The government’s initiatives, such as the National Electronics Mission and digitisation of
television broadcasting and the setting up of electronic hardware technology parks, are likely
to facilitate the growth of the sector.

The challenges for the durables sector include the complex taxation system (the central and
state governments both levy taxes on goods), the availability and quality of raw materials
(only about 35 percent of electronic components can be sourced in India), the competition
from China and South Asian countries (which have specific advantages such as availability of
raw materials), and the high cost of finance.

Jobs in Consumer Goods industry in India

First, the headlines:

1. Many roles in the FMCG sector are interconnected, and you can jump roles,
especially at the beginning of your career.
2. Your degree is not your most important qualification for interviewers.
3. Listening skills are a most advantageous asset.
From a career perspective, too, the consumer industry, particularly the FMCG sector, is a
land of opportunities. It is also an exciting field, as the challenge is always to please the
consumers.

Generally speaking, two categories of jobs in the FMCG are available for graduates: jobs in
product processes and jobs in retail and marketing.

Companies look for candidates with engineering degrees for the first category, and those with
degrees in business and economics, marketing, advertising, and public relations for the
second category.

Jobs are available for engineering graduates and graduates with a background in product
design, merchandising, retail management, and procurement.

With the right personality traits and skills, a fresher can hope to rise to such managerial
positions as production manager, logistics and warehouse manager, purchase manager, retail
communications manager, and private label brands manager.

Popular degree courses include BSc and MSc in Retail Management and Fashion
Merchandising, MBA in Retail Management, and Bachelor of Fashion Retail Management.
Among diploma and certificate courses are Postgraduate Certificate and PG Diploma in
Marketing and Retail Management.

Top FMCG companies are continuing to hire from the best B-schools in the country. The
companies that are reported to be paying the best salaries are Cadbury India, Procter and
Gamble, Hindustan Unilever, Britannia Industries, Marico, Godrej Consumer Products,
GlaxosmithKline, Nestlé India, and Colgate Palmolive.

Consumer durables may not be as recession-resilient as the FMCG sector, but the
employment scenario here is equally bright. Positions in areas such as research, sales and
marketing, servicing and maintenance, finance, legal affairs, human resources, training, and
public relations and advertising are advertised.

Of course, starting your own store or becoming a franchise of a top brand may be interesting
options. Promoting your own choicest brands might prove to be more rewarding than retail
therapy—it might lay the foundation for a fulfilling career as a business person.

PATANJALI

OVERVIEW - PATANJALI AYURVED LIMITED

Patanjali Ayurved Limited, also popularly known as Patanjali, is an unlisted public company
incorporated on 13 January, 2006. It is classified as a public limited company and is located
in New Delhi, Delhi. It's authorized share capital is INR 50.00 cr and the total paid-up capital
is INR 41.32 cr.

Patanjali Ayurved Limited's operating revenues range is Over INR 500 cr for the financial
year ending on 31 March, 2021. It's EBITDA has increased by 10.84 % over the previous
year. At the same time, it's book networth has increased by 45.58 %.

Description: The company provides ayurvedic healthcare products. The company

manufactures ayurvedic formulations, food supplements, personal care, and medicines in the
form of tablets, syrups, oils, and pastes
Products & Services: NATURAL FOOD PRODUCT, NATURAL HEALTH CARE,
NATURAL PERSONAL CARE, AYURVEDIC MEDICINES, HERBAL HOME CARE,
PATANJALI PUBLICATIONS

Category: Manufacturer

The current status of Patanjali Ayurved Limited is - Active.

The last reported AGM (Annual General Meeting) of Patanjali Ayurved Limited, per our
records, was held on 20 September, 2021. Also, as per our records, its last balance sheet was
prepared for the period ending on 31 March, 2021.

Patanjali Ayurved Limited has five directors – Ram Bharat , Acharya Balkrishna etc.

The Corporate Identification Number (CIN) of Patanjali Ayurved Limited is

U24237DL2006PLC144789. The registered office of Patanjali Ayurved Limited is at D-26,
PUSHPANJALI, BIJWASAN ENCLAVE,, , NEW DELHI, Delhi.

REGISTERED DETAILS - PATANJALI AYURVED LIMITED

CIN
U24237DL2006PLC144789
INCORPORATION DATE / AGE
13 January, 2006 / 16 yrs
LAST REPORTED AGM DATE
20 September, 2021

AUTHORIZED CAPITAL
INR 5000.0 Lacs
PAIDUP CAPITAL
INR 4132.2108 Lacs
INDUSTRY*
Manufacturing (Chemicals and chemical products)

TYPE
Unlisted Public Company
CATEGORY
Company limited by Shares
SUBCATEGORY
Non-govt company

WEBSITE
http://patanjaliayurved.org/.
REGISTERED ADDRESS
D-26, PUSHPANJALI, BIJWASAN ENCLAVE,

NEW DELHI - 110061

Delhi - India

HOW TO DOWNLOAD PATANJALI AYURVED LIMITED REPORT

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FINANCIAL HIGHLIGHTS - PATANJALI AYURVED LIMITED

Provided here are the financial indicators for financial year ending on 31 March, 2021.

Operating Revenue Over INR 500 cr

EBITDA  10.84 %

Networth  45.58 %

Debt/Equity Ratio 0.46

Return on Equity 8.93 %

DIRECTORS - PATANJALI AYURVED LIMITED

  
The company has 5 directors and 2 reported key management personnel.
The longest serving director currently on board is Acharya Balkrishna who was appointed on
13 January, 2006. Acharya Balkrishna has been on the board for more than 16 years. The
most recently appointed director is Ajai Kumar Arya, who was appointed on 14 November,
2019.

Ram Bharat has the largest number of other directorships with a seat at a total of 17
companies. In total, the company is connected to 42 other companies through its directors.

13 January, 2006
Acharya Balkrishna
Director
11 December, 2013
Rakesh Mittal
Director
15 September, 2014
Sumedha
Director
30 September, 2014
YAJ DEV ARYA
KMP
01 October, 2017
Director
14 November, 2019
Ajay Kumar Arya
Director
02 November, 2020
VINEET PANT
KMP

BANK-WISE BIGGEST CHARGES ON ASSETS

PUNJAB NATIONAL BANKState Bank of IndiaOTHERS37.4%11.6%51.1%

Percenta
Bank
ge

PUNJAB
NATIONA 51.08
L BANK
 Percenta
Bank
ge

State Bank
11.55
of India

OTHERS 37.36

SIMILAR COMPANIES

INCORPORATION PAID UP
NAME STATE
YEAR CAPITAL

BLUE CUBE CHEMICALS

2013 Maharashtra 41.26 cr
INDIA PRIVATE LIMITED

HINDUSTAN INDUSTRIAL
1989 Gujarat 41.49 cr
CHEMICALS LIMITED

OTSUKA CHEMICAL (INDIA)

2006 Delhi 41.50 cr
PRIVATE LIMITED

AVO CARBON INDIA

1998 Tamil Nadu 41.07 cr
PRIVATE LIMITED

ENZENE BIOSCIENCES
2006 Maharashtra 40.84 cr
LIMITED

ORCHID PHARMA LIMITED 1992 Tamil Nadu 40.82 cr

STEIN SEAL COMPANY

2008 Karnataka 41.89 cr
(INDIA) PRIVATE LIMITED

LAZULINE BIOTECH
2011 Telangana 40.73 cr
PRIVATE LIMITED

DR. MOREPEN LIMITED 2001 Delhi 40.68 cr

LASA SUPERGENERICS
2016 Maharashtra 40.67 cr
LIMITED
See more...
SUBSIDIARY COMPANIES

INCORPORATION PAID UP
NAME STATE
YEAR CAPITAL

PATANJALI FOOD &

HERBAL PARK NOIDA Uttar Pradesh 2016 65.46 cr
PRIVATE LIMITED

PATANJALI FOOD &

HERBAL PARK NAGPUR Maharashtra 2016 50.00 cr
PRIVATE LIMITED

PATANJALI FOOD &

Jammu &
HERBAL PARK JAMMU 2017 10.00 lac
Kashmir
PRIVATE LIMITED

COMPANY NETWORK - PATANJALI AYURVED LIMITED

HOW TO USE COMPANY NETWORK OF PATANJALI AYURVED LIMITED

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common directorships between companies. It helps you find out other directorships of an
Indian director and where else he has business interests.

PROBLEMS FACED BY PATANJALI

Over the past decade, Ramdev’s Patanjali Ayurved has grown at a breakneck speed, rapidly
expanding from their mainstay of herbal products to fast food, soaps and even cosmetics. The
Rs 5,000-crore behemoth that employs 15, 000 people has left many established players
behind as it targets foreign markets and new regions.
But in recent weeks, Patanjali has run into a storm as several of its products have failed
quality tests and have been pulled from shelves. Here’s a look at the crisis that Patanjali is
facing:
1.Nepal asks Patanjali to recall products: In a public notice in June, Nepal’s department of
drug administration said six Patanjali medical products had failed microbial tests and found
to be substandard during inspections at various outlets and tests on specimens.
2.Products of substandard quality: Two Patanjali products -- Divya Amla Juice and
Shivlingi Beej – were found to be of substandard quality of Haridwar’s Ayurveda and Unani
Office, a Right to Information (RTI) reply revealed in May.
3.Army removes Amla juice: The Canteen Stores Department (CSD), the retailing entity
selling consumer goods to the armed forces suspended the sale of a batch of products of
Ayurved’s amla juice in April after it failed to clear a laboratory test.
4.Adverse reviews: Many Patanjali products started receiving “adverse feedback” from
consumers and retailers in March.
5.Misbranding: Last year, a local court in Haridwar fined Patanjali Rs 11 lakh for
“misbranding and putting up misleading advertisements” of their products.
6.Violating safety norms: Patanjali Ayurved was served notice by the government for
violating food safety norms in manufacturing atta noodles two years ago. This followed
reports that the atta noodles had failed food safety regulator norms.

SWOT ANALYSIS OF PATANJALI

S Stands For Strengths

As an essential component of SWOT, a company’s strength is its asset to plan its expansion.
Patanjali has several strengths that make them one of the fastest-growing FMCG company
India
 Babu Ramdev ( Face of Patanjali ): Baba Ramdev, a spiritual guru of
Hinduism, is the father of Patanjali. Baba Ramdev is the only reason for the
exponential growth story of Patanjali. The spiritual guru serves as a brand
ambassador and has used his popularity and fame to get consumers to buy his
products. Through his influence and power, Baba Ramdev has managed to boost
the growth of the company. By leveraging the religious, moral, ethical, and
spiritual aspects of society, the guru has strengthened his customer base.
Patanjali would not be such a great brand if Baba Ramdev was not its brand
ambassador.
 Affordable Pricing: Patanjali products are mostly priced 20-30% lower than
competing brands, making it impossible for competing brands to compete with
Patanjali on pricing Strategy. The company sources the products directly from
the farmers, cutting out middlemen. Therefore, they are able to produce at a
lower cost.
 Made In India Branding: Patanjali has used the emotional Strategy to its
advantage and has always marketed that it is a brand made in India and Made for
Indians. Most brands in India are international brands. Patanjali actively
encourages Indians to buy products made in India to support the country’s
economy. Moreover, the quality of the products also contributed to the
spectacular growth of Patanjali.
 Ayurvedic and Herbal: The products that Patanjali offers are made from
natural Ayurvedic and herbal components. Swadeshi products have also played
 an important role in Patanjali’s success. India has a lot of naturally grown
medicines in our dense forests. As a result, India is one of the leading countries
in Ayurveda.
 Distribution System: Patanjali’s products are sold through medical centers like
Patanjali Chikitsalayas and Patanjali Arogya Kendras as well as non-medical
centers like Swadeshi Kendras. Patanjali already has 15,000 outlets across India.
Patanjali was earlier criticized for its distribution strategy but has now improved
it by taking up distribution through general retail outlets and recently partnered
with Future Group for distribution through modern retail outlets.
 Employees: Patanjali has over 200,000 employees working on various products.
 Marketing Strategy: Patanjali took advantage of word of mouth. Patanjali was
one of the first brands to use this strategy. Initially, the company did not rely on
any other form of marketing. Word-of-mouth proved to be beneficial for
Patanjali as followers of the yoga camp Baba Ramdev promoted and endorsed
the brand. In recent years, the company has been promoting its products in all
advertising campaigns. Moreover, Patanjali has consolidated its market position
by opening medical and non-medical centers.

W Stands For Weakness 

Everyone has positive and negative sides; so does Patanjali his weaknesses. Though Patanjali
remains one of the major FMCG companies in India, there are many weaknesses that can
become a nightmare for Patanjali’s growth.

 Too Many Products To Focus: Ever since Patanjali gained its glory it has
launched many products in a short period of time which makes it very hard to
focus on products quality. Due to this problem, Patanjali’s most products were
low in sales ( 60/100 ).
 Pricing Strategy: Patanjali must revise its current pricing strategy or the
company will not be viable. The current pricing strategy results in low-profit
margins which are only necessary for the company to survive. The company
may face high labor and raw material costs if it does not change its pricing
strategy.
 Involving in Controversial Issues: The company relies heavily on Baba
Ramdev himself. The man is not only a business magnate but also a public
figure. The spiritual guru has been involved in many controversies. Recently,
Baba Ramdev had to apologize to the people of Assam for the harsh and
insensitive remarks made by a Patanjali associate. Satinath Barale, a yoga
teacher and Patanjali associate, made outrageous remarks about the Vaishnava
saint Srimanta Shankardev at a yoga camp. After the incident, there was a
massive public outcry. The reactions were so severe that Baba Ramdev itself had
to issue an apology. Incidents like this can tarnish the image of the brand.
 Lower Margins For Distributors: Patanjali offers much lower profit margins
to wholesalers and retailers than other consumer product companies because it is
a volume game, not a margin game. That is the reason why it is a demand-driven
company.
 Inexperienced Management: Patanjali does not have a large pool of
management graduates and thinks tanks, which can be a problem if the company
wants to expand nationwide or globally.
O Stands For Opportunities

 Too Many Products To Focus: Ever since Patanjali gained its glory it has
launched many products in a short period of time which makes it very hard to
focus on products quality. Due to this problem, Patanjali’s most products were
low in sales ( 60/100 ).
 Global Markets: Global markets provide fertile ground for a business like
Patanjali. Spirituality is popular among the inhabitants of Africa, Asia,
Americans, and the Middle East. The company needs to learn from its
Competitors like Unilever, Amul, and Dabur, etc, and go ahead with a similar
plan of action. Thanks to Baba Ramdev, the company has a direct link with
yoga. The company can expand to regions where yoga is a common practice
such as Far East Asia.
 Expansion in Rural Areas: Currently, the company is not very active in rural
India, which is crucial for any business. Patanjali needs to expand in the rural
areas and cater to the rural areas accordingly. It would be easier for Patanjali to
expand in rural areas as rural consumers prefer natural products which are
affordable.
 Instant Food Business: The brand can open quick-service restaurants like
Haldiram and offer food that uses natural and organic ingredients. This can
complement the company’s offerings and help generate higher revenues. By
offering food, the company can build a stronger image in the Indian market.

T Stands For Threats

 Competition: Big players like Marco, HUL, P&G, and Dabur are already giving
tough competition to Patanjali. Newer entrants like Sri Ayurveda are also
increasing competition for Patanjali.
 Ayurvedic: Many companies are starting as Ayurvedic FMCG company and
even big players are coming up with their own Ayurvedic products.
 Negative publicity: The company faced a serious crisis when the Nepal
Department of Drug Administration issued a public notice to Patanjali stating
that some of its medicinal products were of “inferior quality”. The products had
failed microbiological tests to detect mold, bacteria, and other toxins. This crisis
led to negative word of mouth that damaged the company’s reputation.

COMPETITIVE ANALYSIS
Competitors Analysis – Patanjali Success Strategy 

The major competitors for Patanjali are HUL(Hindustan Unilever Limited), Dabur, and
Baidyanath. Both of these FMCG and Natural products industry giants, yet Patanjali
succeeded in turning the tables in its favour, in a short period. We have analyzed two sources
of Patanjali success story. They are:

 
1. Targeted Marketing Strategy

Every product runs with a targeted marketing strategy that later acts as the major reason
behind a product’s success. Brands like Baidyanath made quality products that attracted
consumers but could never find a successful targeted marketing strategy way to expand.
Patanjali with its brilliant marketing strategy yet high-quality products was able to expand
while generating amazing demand from its successful marketing strategy. As a result, it
earned a profit of more than INR 9000 crores in 2019, whereas Baidyanath’s turnover is only
INR 700 crore in the same year.

2. Face Value

The second vital reason is “Face value”. With the growing media and face value, brand
ambassadors act as a trust stamp. Ramdev Baba is known for his yoga and ayurvedic
knowledge for years added to the success of Patanjali’s marketing strategy. His face in
various advertisement campaigns created trust amongst the consumers which acted as a vital
reason for it to be a hit in the market.
These two factors are the core pillars of Patanjali’s success strategy. With a brilliant
marketing campaign and branding strategy, they outmanoeuvred well-established companies
like Dabur and Baidyanath.
Now let us take a look at Patanjali’s digital marketing and advertisement strategy.
 

Digital Marketing Strategy of Patanjali

Patanjali has a very holistic approach to its digital marketing efforts. It has several digital
campaigns that revolve around showcasing its products and reiterating how healthy and
natural the products are. With its amazing effort’s it has reached a massive following on
Instagram.

Patanjali’s approach is two thronged. It boasts such a massive array of products that all its
posts revolve around showcasing these products. Their posts try to showcase the health
benefits and ways to use these products in ordinary day cooking. With such a massive
following, Patanjali has focused a lot of its marketing efforts on converting youngsters to
appreciate it’s products.
Secondly, Patanjali uses Baba Ramdev as its brand ambassador on their posts, very
frequently. They have successfully married their healthy products with the brand image of a
yoga guru, known for curing the country of daily ailments through healthy living. With
digital marketing efforts, they have made sure this image sticks and the customers are heavily
swayed by this stratagem.
Now let us look at the advertisement campaign strategy of Patanjali and understand the
versatile way they have evolved into a health-conscious FMCG company and carved a
massive market.
 
Patanjali Advertisement and Campaign Stratagey

A marketing campaign means using different types of media and online platforms for
promoting a product. The specific pieces of promotion they create constitute their
advertisement strategy. They have to be carefully planned as marketing campaign plays a
major role in any brand’s success or failure. 
Patanjali Ayurved has done great research on their target audience and understands the
message they should put across through heir advertisements and which campaign medium is
most effective for their strategy.
We have noted the advertisements that were the most memorable, have a look:

#Swadeshi ka swabhiman

After achieving great success in the FMCG sector, Patanjali has now entered into the brand
apparel segment with its new brand named “Paridhan.

Invoking the national image of cloth weaving, Patanjali has made a move on to the textile
industry. With the rising concerns of dependence on other countries for necessities, and
combining itself with the “Make in India” trend, Patanjali has targetted the most essential
items we all need, clothing. 

# Healthy India banaenge, Patanjali biscuit khaenge

Patanjali has launched its biscuit with the tagline “Healthy India banenge, Patanjali biscuit
khaenge” which means “India shall be healthy, Patanjali biscuits is what we shall eat”.
Patanjali claims that their biscuits contain zero maida, sugar, and trans fats, and are healthier
than any other biscuits. Taking a moment marketing spin at the growing obesity in the 21st
century and sugary food overload, Patanjali marketed itself as a healthy option for biscuits.
This struck a nerve with the Indian audience, especially with the 35-year-old+ customer
segment, who daily enjoy a biscuit with their teas as a lifestyle habit.

CONCEPTUAL DISCUSSION

Customers’ perception towards a brand is built largely on the satisfactory value the user
receives after paying for the product and the benefits the user looks for. In the above case
study, we noted that a large portion of the user is satisfied with Patanjali products. It may be
because of the reasonable price of the product or due to the ability of the product to cure their
health problem. 

The satisfaction brings in the retention of customers. Patanjali is enjoying an advantageous

position in the market by capitalising on a brand image that resonates with every Indian
citizen’s sense of patriotism. However, it should not ignore competitors like Naturals, pure
roots, Vindhya herbals. Patanjali to retain more customers and satisfy them must fulfil the
claims made by the company before any other brand may start-up and take away the benefits
of marketing through spirituality.

NEWSPAPER
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