PATANJALI CASE STUDY

QUESTION 1:
The competitors were launching various herbal product ranges to
counter PAL. Baba Ramdev knew that consumer ‘trust’ in the brand
building of herbal products was crucial. What are the various
options PAL should explore for keeping the present trust intact?
SOLUTION:
Competitors Analysis – Patanjali Success Strategy
HUL (Hindustan Unilever Limited), Dabur, and Baidyanath are Patanjali's main rivals. Despite being
a major player in both the FMCG and natural products industries, Patanjali was able to quickly turn
the tables in its favour. We looked at two different accounts of Patanjali's success. As follows:

1. Marketing Strategy:

 Patanjali was able to expand while generating incredible demand thanks to its brilliant marketing
strategy and high-quality products. As a result, it generated a profit of more than INR 9000
crores in 2019, as opposed to INR 700 crore in revenue for Baidyanath during the same period.

2. Branding:

 Al the products of Patanjali comes with a personal guarantee of Baba Ramdev who openly
criticizes MNC for looting the customer and providing them with unhealthy products. He has
been able to instill a faith among the consumers that all the Patanjali products are made from
herbal and organic extracts and have no side effects. Ramdev pegs his range of Patanjali
products on health and purity which signifies the success of products like Atta Noodles.

3. Digital Marketing Strategy of Patanjali:

 For its digital marketing initiatives, Patanjali takes a very all-encompassing approach. It has a
number of digital campaigns that emphasise how healthy and natural the company's products
are while showcasing them. With its incredible efforts, it has amassed a sizable Instagram
following. The strategy used by Patanjali is crowded. Its vast selection of products is the focus of
every post, which is why it has so many of them. Their posts aim to highlight the health
advantages and practical applications of these ingredients in everyday cooking. With such a large
customer base, Patanjali has concentrated a lot of its marketing efforts on getting kids to like its
products.

4. Pricing Strategy:
 Low Pricing strategy is one of the significant factors which have contributed for the growth of
PAL. Their products are priced 20-30% cheaper than their rivals and its acts as a pull factor for
the customer.

5. Advertisement Strategy:

 A marketing campaign involves promoting a product using a variety of media and online
resources. Their advertising strategy is comprised of the particular promotional materials they
produce. Because marketing campaigns are so important to the success or failure of any brand,
they must be carefully planned.

 The target audience of Patanjali Ayurved has been thoroughly studied, and the company is
aware of the message that should be conveyed through its advertisements and the best medium
for its campaign. The most memorable advertisements have been noted; take a look:

QUESTION 2:
The growth slide from more than 100 per cent to nearly zero can
mean the slowing down of Patanjali. What are the avenues PAL
should adopt to control the slow down?

SOLUTION:

Baba Ramdev sensed the Indian

QUESTION2

consumers’ temperament toward

price sensitivity and their penchant
for
culturally rooted products. To cater
to this, he developed a unique
model for PAL which embraced
unique branding and affordable
pricing attributes that shaped its
end-to-end business strategy
(Bhasin,
2017a). The ayurveda division of
Patanjali is the star performer with
products like Desi Ghee, Dant Kanti
toothpaste, Kesh Kanti shampoo,
herbal bath soap and Patanjali
Honey being the star performers for
the
brand. Patanjali ghee is the largest
selling product of the company.
Patanjali claims that its shampoo has
a 15 percent market share,
toothpaste 14 percent, face wash 15
percent, dishwash 35 percent, and
honey
50 percent. The snapshot of the
marketing mix of PAL seems to be
very unique, and it may be detailed
as the promise of delivering a
product with the use of genuine and
natural ingredients in sufficient
quan-
tities. The outcome results in a
brand experience which convinces
the consumer of the authenticity
and
goodness of the product indicating
that the promise is delivered. The
price is 15–30 percent lower than
the competitor brands. The use of
alternate media (online), word-of-
mouth publicity, Baba Ramdev
himself acting as a public relations
officer, yoga events, and real time
digital marketing, and the use of
multiple distribution channels
helped to build the brand. The
product portfolio of PAL includes
nutrition
and supplements, grocery and
staples, ready food, beverages,
personal care, healthcare,
household-
related products, and so on
unique branding and affordable
pricing attributes that shaped its
end-to-end business strategy
(Bhasin,
2017a). The ayurveda division of
Patanjali is the star performer with
products like Desi Ghee, Dant Kanti
toothpaste, Kesh Kanti shampoo,
herbal bath soap and Patanjali
Honey being the star performers for
the
brand. Patanjali ghee is the largest
selling product of the company.
Patanjali claims that its shampoo has
a 15 percent market share,
toothpaste 14 percent, face wash 15
percent, dishwash 35 percent, and
honey
50 percent. The snapshot of the
marketing mix of PAL seems to be
very unique, and it may be detailed
as the promise of delivering a
product with the use of genuine and
natural ingredients in sufficient
quan-
tities. The outcome results in a
brand experience which convinces
the consumer of the authenticity
and
goodness of the product indicating
that the promise is delivered. The
price is 15–30 percent lower than
the competitor brands. The use of
alternate media (online), word-of-
mouth publicity, Baba Ramdev
himself acting as a public relations
officer, yoga events, and real time
digital marketing, and the use of
multiple distribution channels
helped to build the brand. The
product portfolio of PAL includes
nutrition
and supplements, grocery and
staples, ready food, beverages,
personal care, healthcare,
household-
related products, and so on
 Baba Ramdev was aware of the Indian market's propensity for culturally rooted goods and its
sensitivity to price. He created a special model for PAL to address this, embracing distinctive
branding and reasonably priced features that shaped its end-to-end business strategy (Bhasin,
2017a).

 Products like Desi Ghee, Dant Kanti toothpaste, Kesh Kanti shampoo, herbal bath soap, and
Patanjali Honey are the brand's top sellers under the ayurveda division of Patanjali. The
company's best-selling item is Patanjali ghee.

 According to Patanjali, its products have market shares of 15% for shampoo, 14% for toothpaste,
15% for face wash, 35% for dishwashing, and 50% for honey. The promise to deliver a product
using only real, natural ingredients in adequate amounts appears to be the essence of PAL's
marketing mix, which appears to be very distinctive.

 The end result is a brand experience that persuades the customer that the product is genuine
and good, showing that the promise is kept. The cost is between 15 and 30 percent less than
that of similar brands. The brand was developed with the aid of alternative media (online),
word-of-mouth marketing, Baba Ramdev serving as his own public relations representative, yoga
events, real-time digital marketing, and the use of numerous distribution channels.

 The PAL product line includes foods and supplements, household goods, groceries and staples,
prepared foods, beverages, personal care products, healthcare products, and so forth.

 The company's flagship items, such as honey, toothpaste, and noodles, to name a few, have
already compelled rivals to lower their prices in an effort to maintain market share. Their main
source of income is ghee made from cow's milk, and according to market reports, this one
product accounts for more than $300 million of the top line's approximate $751 million value
(ibid., p. 3).

QUESTION3:

What are the marketing strategies PAL should adopt

in future?

SOLUTION:
 Future Outlook for Pantanjali
 Rural Push:

 Over 70% of India's 1.21 billion people live in the rural market, but they only make up 9% of its
FMCG production. As a result, improving distribution and support infrastructure in rural areas is
a crucial area on which it should concentrate.
 Research and development must be expanded; FMCG companies must focus on these areas as a
means of growth. Businesses that continue to succeed in this era of intense competition are
those with a culture that values using consumer insights to create either the next generation of
products or, occasionally, new item classes.
 Accordingly, Patanjali would need to invest a lot of money and effort into significant innovative
work of more modern item classifications. Emphasis on exports Patanjali has largely focused on
taking the residential market into consideration.
 Trades made in this way continue to make up a small portion of all transactions. Thus, it is
essential to concentrate on shipping goods while using Indian operations as a sourcing hub.
 The organisation targeted revenues of Rs. 10,000 crore for the fiscal years 2016–17 and 2018–
2019 of Rs. 20,000–25,000 crore. More than 5000 merchants, 15,000 stores, and 100 uber
bazaars make up its extensive deals channel.