Patanjali Ayurved

An Unconventional Business Machine

Strategic Management
Group 5 (Section B)

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 Agenda
What do you think is the future of Patanjali Ayurved? Is it going to be a market
leader? Why or why not?
What are the key aspects of Patanjali's strategy? What is Patanjali's competitive
advantage?
Who are the key competitors and how are they going to react? What should be
Patanjali's response? How should it avoid imitation?
How do you execute a strategy for a company for which 'Business is a by-
product'?
How would you compete with a company for which 'Business is a by-product'?
What will be your three strategic recommendations to Patanjali?

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 Q1. What do you think is the future of Patanjali Ayurved? Is it going to be a
market leader? Why or why not?

A phenomenal growth rate in net profit in the range of 60-100%

Consumer demand driven with a unique CONCEPT
Backed by the retail king Kishore biyani and a supportive
government could set inroads to a large market share in India.

While a market challenger would choose one particular strategy, but

patanjali chose to use
Frontal attack - Products at Lower price than its competitors
Flank attack - Created a market for products like Aloe vera oil,
amla juice and fulfilled the gap by providing healthy food
alternatives like healthy noodles
Encirclement attack - With the resources available with patanjali
it has aimed to capture the market on several fronts which
includes food, healthcare, toiletries, dental, haircare and
cosmetics
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 Q2. What are the key aspects of Patanjali's strategy? What is Patanjali's
competitive advantage?

Patanjali's Competitive advantage -

Overall cost leadership
Differentiation
Customer Intimacy
Technology (Automated Production Lines)
Credibility, Customer's loyalty

Purity Of Raw Materials, Innovation

Key aspects of Patanjali's Strategy-

Market needs, Patanjali has a diverse product line
The effective word of mouth strategy combined with Baba Ramdev's brand image
Competitive pricing which is possible because of minimal advertising and promotion cost
Strong retail network with Future group
Major focus on R&D owing to quality products
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 Q3. Who are the key competitors and how are they going to react? What
should be Patanjali's response? How should it avoid imitation?
Key Competitors: HUL, Dabur, Marico, Emami. Competitors, particularly multinationals, have been driven to retool
their portfolios to introduce matching items at similar price points in order to reclaim market share.Having a
spiritual leader s a face of the company, who has so many followers for yoga, gives huge credibility to Patanjali.
Its not everyone's cup of tea to question the credibilty of Ayurved products by Patanjali. FMCGs can either grow
in ayurvedic sector or challenge patanjali credibility.

Colgate Dabur Hindustan Unilever

To compete with Patanjali's Sales dropped, they would HUL would strategize to regain customer
Dant Kanti , Colgate is need to lower the price and confidence enhancing credibility in Ayush Range in
developing Cibaca Vedshakti, a switch back to ayurvedic ayurvedic industry or enhance the product range
low-cost herbal toothpaste. of Ayush Brand. It would attack on weak area
segment of patanjali- Hair care & Cosmetics.

Patanjali's Response
The company needs to focus on market trend, market research and increase advertising. Patanjali would expand its customer
base in Eastern & Southern India. It could go global. It should work on new product portfolios.It should manage all business
verticals well , have planned expansion and improve supply chain.The company has to maintain product quality.
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 How should it avoid imitation?
Continuous product innovation will reward Patanjali for the risk it will take and the imitator, though will
achieve profits by imitating but will not be able to overtake.
Apart from providing exceptional customer service, product modifications, and product variety, Patanjali
can also reward customers for their loyalty or frequency.
Imitators will always be left behind if they don't improve the quality of their product or service on a
regular basis and seek continual feedback.

Q4. How do you execute a strategy for a company for which 'Business is a by-product'?
Focus on product innovation/ relaunches/ development of new markets.
Drive down raw material costs
Build brand loyalty which can be achieved through various means like face value, using a brand
ambassador could further act as a trust stamp
Targeted Marketing Strategy for every product
Collect data, through various methods in large numbers as that can guide the company, where to
improve in operations or product offering
Invest in the logistical systems and have good distribution channels
Product acquistions and joint ventures
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 Q5. How would you compete with a company for which 'Business is a by-
product'? What will be your three strategic recommendations to Patanjali?
A company for which business is a by-product tells us that its focus is less on profit and more on cost-cutting.

The MNCs can counter Patanjali by rolling out their ayurvedic products and "swadeshi" products without
necessarily compromising on price. For eg. Colgate "Ved shakti" is (position defence) countering frontal attack
of Patanjali Dant Kanti. Also HUL's relaunch of their Ayush brand.

Strategic recommendations for Patanjali

Focus on healthcare category
Patanjali needs to focus more on the healthcare
category which has 2nd highest revenue share of
the company but the lowest growth rate of all
categories.
Organizarional Structure
The company could do well with having a more defined
and detailed organizational structure, especially when it
plans to hire people from other FMCG companies and
MBAs from top institutes

Market Research Brand Imagery

As Patanjali scales up and reach more people,
they will have to do market research and
market surveys.
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They should also concentrate on developing sub-brands
for additional product lines that have a strong brand
architecture in order to mitigate any potential risks linked
with the umbrella brand "Patanjali".

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 Thank-You
Anmol Thusoo M120-21
Ayush Kumar Das M126-21
Ayush Ravindra Gajbhiye M127-21
Bhumitra Sahwal M131-21
Chandegara Harshit Vallabhbhai M132-21
Gaiakwad Saurabh Ramanbhai M141-21
Gazal Singla M143-21
Kangana Malhotra M152-21
Siddharth Elamon M195-21
Taher Driver M206-21
Ashitha D004-21

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