Professional Documents
Culture Documents
1.1 INTRODUCTION
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Fig. 1.1 – Personal Branding
He has made the consumers realize that Patanjali is the best. After gaining their trust he
converted them into genuine buyers and succeeded in promoting their products. With
this marketing strategy, users are aware of their products.
Baba Ramdev is running Patanjali with a sole objective of providing quality FMCG
products with low price as compared to its competitors. Patanjali typically provides
products being 10%-30% cheaper than competitors. Along with that it has infused
spirit in Indian audience to embrace desi products and boycott MNC, who are here
only to make profit.
Patanjali Ayurveda sells its products through nearly 10,000+ outlets. Patanjali also sells
its products online. It has its footprints on some of the railway stations and airports.
Patanjali Ayurveda has also started its FMCG expansion in the form of dealership and
distributorship channels across the country and expects wider growth in overseas
distribution as well.
The aim and vision were to combine science and ancient Ayurved knowledge to create
Ayurvedic products that were scientifically accepted. This approach starts with an
analysis of ancient Indian scientific texts, then moves on to the collection and discovery
of effective and authentic herbs, and finally to safety testing to produce a new product
that is effective. The business concentrates on cultivating a variety of endangered herbs
on its own. The Divya Yog Mandir Trust and Patanjali Yog Peeth, which ensures and
monitors the quality of the herbs used in the production. of the goods, carry out the
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mission. The principles of Good Industrial Practices (GMP) are strictly practised in the
manufacturing plant. The company prides itself on being environmentally friendly.
Patanjali’s digital marketing strategy revolved around connecting modern India with its
culture and heritage of medicine, Ayurved. Patanjali undoubtedly had a range of
products under its brand, but being a new evolving brand it had a good number of
competitors.
Baba Ramdev, the yoga master with the accompanying of millions who knows this
brand through his camps. Patanjali follows a unique word of mouth publicity model
and all the profit is without any advertisement as compared to other FMCG’s who spend
nearly 20-30% in advertisement.
Patanjali claims that their products are made with natural ingredients and are chemical
free further their products are comparatively cheaper around (10-20%) which helped
Baba Ramdev has continuously pitched Patanjali as a “Swadeshi” alternative to all the
MNC products “which help source Indians money abroad. The pitch has resonated well
among many Indians who now wish to purchase Patanjali’s products rather than other
companies‟. Patanjali plans to set 10 mega units, 50 semi-mega units and many small-
scale units and compete with MNC by ‘Swadeshikaran’ (Indianisation) of products like
jeans, other clothing, shoes, etc.
It is important to do a market research for all the businesses before venturing into a new
segment. Patanjali also did a market research and analysed that in ayurved FMCG
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market, there are only a few competitors manufacturing impure products. This gave
Baba Ramdev the idea of manufacturing natural products. The company
tagline “Prakriti ka aashirwaad” is also focused on purity of products only. The quality
of the product is the driving factor of success for the company.
The reason that Patanjali’s products sale surged is that they focused on all the relevant
aspects which are price, quality and quantity. The products offered by the company are
cheaper than the competitors and the quality they provide is better. Baba Ramdev
himself involves in all the company's processes just to ensure the quality and quantity
of the products. If you are thinking that raw material of the products enhances the
product quality then you are wrong as the suppliers used by HUL, ITC and other
companies are the same for Patanjali as well. It’s the natural herbs and plants used by
the company to enhance the products quality.
Like Baba Ramdev, nowadays it is mandatory for brands to be different than their
competitors. He used a barter trade system with a news channel for their products
promotion and marketing activities. This shows how determined he is to grow this
company by any means available. This is the ambition which all entrepreneurs need to
have. Also, he ventured after 20 years of yoga, the reason being that he was building
connections and goodwill. He also started the manufacturing in Haridwar where the
demand for these products is the most. So it is important that you plan ahead of things.
Another success driving strategy that Patanjali used was to set up stores in different
cities all over India so that with increasing demand the supply could also be met. It is
important that entrepreneur focuses on all the functions as everything is linked to one
another which boost the company's growth. Patanjali emerged and has changed the
concept of Ayurveda in a way like never before! All we have is the proven science and
the goodness of Ayurveda that is now available with a single click.
Apart from Patanjali products, Patanjali Yoga shows are also famous worldwide. Baba
Ramdev hosts the yoga camps. That’s the best way to promote the brand name and
create brand awareness. On the occasion of International Yoga Day, Baba Ramdev also
shared the importance of ayurvedic products. He promoted its brand by stating that they
sell good-quality products at a reasonable rate. Patanjali’s product marketing strategy
is focused on keeping it simple. Its simple packaging is a great way to attract
customers. Its products are ayurvedic i.e. herbal which highlights the benefits of natural
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and organic substances. Patanjali has beautifiers, edible items, skincare, dental care,
hair care, and household products.
Nowadays, your brand needs to stand out from the crowd. Baba Ramdev adopted a
barter trade system for promoting and advertising its products with a news channel.
This shows his determination to dream big to see his company growing through any
means feasible. Like every entrepreneur, Baba Ramdev had the same marketing
strategy.
Patanjali is a strong and large volume driven company with many prospects but ever-
rising threats as all other FMCG companies are now eyeing to take back their share of
the market. And to keep up with the market Patanjali is coming up with all different
types of marketing strategies in order to reach a wider and also the international market
with its “Prakriti ka aashirwaad” approach.
There was turbulence in the FMCG industry due to the price points with which Patanjali
had launched its herbal products. Baba Ramdev and team had the challenging task of
consistently creating and sustaining value for its customers. How long would the current
value proposition of ‘swadeshi, herbal, wellness and nutrition’ last? Would the current
pricing and digital marketing strategy of PAL targeted at the youth help it to achieve its
revenue target of US$3 billion by the end of FY 2017–2018
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There was a distinct shift in consumer preferences towards herbal products. This shift
had forced the organization to invest more in herbal products. Colgate, Nestle, Dabur,
Emami, Himalaya and HUL were reworking their strategies and expanding their
product portfolios with herbal ingredients to meet Baba Ramdev’s home-grown
challenge. In the race to grab market share, HUL, the largest FMCG firm in India, which
had revived its Ayush brand last year, had created, with herbal ingredients, a range of
products such as hair care, skin care, oral care and personal wash (soaps) in
collaboration with Arya Vaidya Pharmacy. HUL was also trying to add some novelty
to its products. For example, Ayush freshness gel, Ayush cardamom toothpaste had
cardamom (elaichi), which eliminated bad odour and gave fresh breath, Ayush natural
fairness saffron soap had saffron (kesar), which is known for its healing properties and
Ayush anti-dandruff fenugreek shampoo had fenugreek (methi) that has medicinal
properties.
American oral care giant Colgate has been pushing aggressively in the market its
Colgate Neem Active Salt toothpaste, which contained traditional Indian teeth cleansers
neem and salt, to take on ‘Dant Kanti’. Among the players in the FMCG market, two
strategies were quite popular. One, the established players were now taking Ayurveda
seriously, choosing to take on Baba Ramdev’s FMCG enterprise head-on. Two,
multinational corporations, which normally liked to keep their portfolio as international
as possible, have realized that it might not be the right strategy: to beat Baba Ramdev,
you have to be like him.
However, historically all the green and herbal products had ‘trust’ issues, which had a
direct impact on sales. The public perception of the organization, its promoters and its
product also had a direct impact on the ‘trust’ factor. How Baba Ramdev and his team
are going to sustain customer ‘trust’ for its herbal products, given the competitors were
also planning to launch similar herbal products in the market, would be interesting to
witness in the near future.
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1.2 FMCG SECTOR
Patanjali Ayurvedic Limited is one of the fastest growing Indian FMCG company
which was established in 2006 by Baba Ramdev along with Acharya Balkrishna.
Fast-moving consumer goods are products that sell quickly at relatively low cost.
These goods are also called consumer packaged goods.
FMCGs have a short shelf life because of high consumer demand (e.g., soft drinks and
confections) or because they are perishable (e.g., meat, dairy products, and baked
goods). These goods are purchased frequently, are consumed rapidly, are priced low,
and are sold in large quantities. They also have a high turnover when they're on the
shelf at the store.
Consumer goods are products purchased for consumption by the average consumer.
Fast-moving consumer goods are the largest segment of consumer goods. They fall
into the nondurable category, as they are consumed immediately and have a short shelf
life. Nearly everyone in the world uses fast-moving consumer goods (FMCG) every
day. They are the small-scale consumer purchases we make at the produce stand,
grocery store, supermarket, and warehouse outlet.
Because fast-moving consumer goods have such a high turnover rate, the market is not
only very large, it is also very competitive. Some of the world's largest companies
compete for market share in this industry including Tyson Foods, Coca-
Cola, Unilever, Procter & Gamble, Nestlé, PepsiCo, and Danone. Companies like
these need to focus their efforts on marketing fast-moving consumer goods to entice
and attract consumers to buy their products.
That's why packaging is a very important factor in the production process. The
logistics and distribution systems often require secondary and tertiary packaging to
maximize efficiency. The unit pack or primary package is critical for product
protection and shelf life, and also provides information and sales incentives to
consumers.
FMCGs are sold in large quantities, so they are considered a reliable source of revenue.
This high volume of sales also offsets the low profit margins on individual sales as
well.
As investments, FMCG stocks generally promise low growth but are safe bets with
predictable margins, stable returns, and regular dividends.
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Patanjali’s manufacturing unit and headquarters are located in industrial area of
Haridwar and the registered office is located in Delhi. It is involved in manufacturing
as well as distribution of products ranging from food, beverages to cosmetics and fabric
care. Since its inception in 2006 the company has made rapid advances in expanding
its reach across many segments and currently operates a plethora of brands.
Patanjali is present in almost all fast-moving consumer goods (FMCG) product lines
Its popularity is giving a tough time to companies such as HUL, P&G, Colgate–
Palmolive, Nestle, ITC, GCPL and Dabur India Limited. Patanjali even without any
film or cricket celebrity endorsement has been successful in attracting new customers.
The sales in categories such as toothpaste, ghee (clarified butter), hair oil, honey and
ayurvedic medicines picked up fast. The larger FMCG companies like Godrej
Consumer Products Limited (GCPL) with 119 years of legacy and Dabur India Limited
with 133 years of legacy had revenue of US$740 million (Moneycontrol, 2018) and
US$1.2 billion (Dabur India Limited, 2018) in fiscal year (FY) 2016–2017,
respectively. PAL’s revenue in FY 2016–2017 was U$1.54 billion and since the
revenue of Patanjali has shown a significant growth in its revenue in the market.
Revenue(Cr.)
12000
10000
8000
6000
4000
2000
0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
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Patanjali Ayurved, earned over 80% of Patanjali Group’s total revenue, such that its
operating revenue grew 6% to Rs. 9,023 crore in FY20.
The firm’s top-line growth remained higher than the previous year. In FY19, the
Ayurveda major had clocked Rs 8,330 crore turnover - 2.4% higher than Rs 8,136 crore
it had posted in 2017-18 (FY18).
Since its sales lost momentum in 2016-17 (FY17), Patanjali is yet to regain the
momentum it used to have earlier.
In 2014-15 and 2015-16 (FY16), its revenue had grown 86% and 100%, respectively.
In recent years, its net profit, too, has suffered. Despite double-digit growth, Patanjali’s
net profit fell well short of Rs 1,190 crore it had reported four years ago.
In FY20, its net profit margin stood at 4.67%, compared to 13.3% in FY17 and 16% in
FY16.
Some anticipated incomes of ₹5,000 crores ($720 million) for 2015–16. Patanjali
proclaimed its yearly turnover of the year 2016-17 to be ₹10,216 crores ($1.5 billion).
It was recorded thirteenth in the rundown of India's most confided in brands (The Brand
Trust Report) starting in 2018, and positions first in the FMCG classification.
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PRODUCT CATALOGUE OF PATANJALI
Grocery and staples Dals and pulses
Edible Oil and Ghee Ghee, Mustard Oil
Flour / Atta Atta, Besan, Others
Staples / Spices Spices, Salt, Rice
Ready Food Confectionery Biscuits, Cookies, Candies,
Chocolate bars
Snacks and Breakfast Honey, Papad, Namkeen
Sauces and Pickles Ketchup, Pickles
Sweets Murabba, Soan Papdi, Sweets
Beverages Juices and Fruit Drinks Apple, Amla, Litchi
Sharbat and Squash Squash, Sharbat
Personal Care Face Care Face cream, Lip care, Face
Body Care wash
Hair Care Body wash, Foot care, Lotions
Shampoo, Conditioner, Hair
Soaps and Hand wash Oil, Hair Colour
Oral Care Hand wash, Soaps
Toothbrush, Tongue Cleaner,
Make up Toothpaste
Shaving and Grooming Kajal, Sindoor
Shave Gel, Shave Cream
Health Care Health Drinks,
Chyawanprash, Nutrition
Supplements, Digestives
Households Worship related, Cleaning
and Washing, Herbal
Gulal
Some of the main products of Patanjali are Patanjali Moisturizer Cream, Patanjali
Multani Mitti Face Pack, Patanjali Aloe Vera Juice, Patanjali Yoga Sutra, Patanjali
Coconut Hair Wash, Patanjali Sheetal oil, Patanjali Sunscreen, Patanjali Aloe Vera
apricot Face Scrub, Patanjali Anti-Wrinkle Cream, and Patanjali Drishti Eye drop.
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New launches of Patanjali include Patanjali Noodles, Dant Kanti Advance, and Sugar-
free Chyawanprash, Power Vita, Seabuckthorn dietary supplement and powdered hair
dye. Other than the products related to lifestyle and health, the company has plans to
touch every consumer category.
Moderate estimating of Patanjali items is one reason for its solid infiltration in the
Indian market. As Baba Ramdev stated, the motivation behind Patanjali is Upkar and
not Vyapar. Patanjali aims to give great quality items at low costs.
The company manufactures mineral and herbal products. However, the company has
rapidly grown from medicinal and remedy based entity to a leading player in packaged
food, water, beverages, pulses, spices, religious, personal care, homecare, dairy and
other FMCG products. It also introduced the Coronil kit to cure Covid-19, which leads
to controversies.
Patanjali’s most sold products are Cow-Ghee with sales of (1467 Crores), followed by
Toothpaste (940 Crores) and them Shampoo (850 Crores). These three products
contributes ~35% of the total sales.
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1.3 BACKGROUND
Patanjali Ayurved Limited was established in 2006 with a thought of rural and urban
development. The company is not merely an organization but a thought of creating a
healthy society through Yog and Ayurved.
Patanjali values their consumers and they believe by providing quality products a
quality life for them is to be created. This is their primary apprehension and thus, they
are trying to take every measure to ensure quality like the Unique ID system to stop
fake products.
They recognize farmers as their main assets. They provide herbal and organic products
on contract farming. The company takes various initiatives for farmers to raise their
income and provide surety towards sale of their produce.
Farmers are provided with all sorts of technical-aid and necessary information about
efficient farming. Their manufacturing units process consumables like food items,
medicines etc. These are made available to consumers through a wide network of
Authorized Patanjali Stores and retails shops.
Their efforts in the sectors of social welfare, health, philosophy and spirituality are
guided by their values. They consider ‘guru satta’ and ‘bhagwat satta’ above everything
else. They believe in optimum utilization of our capabilities for the betterment of the
society. Also, functionality and concepts makes them a distinguished organization.
Their increasing processing units, retail outlets across the nation and the flourishing
sale-profit figures illustrate our glorious journey so far. Their consistency in growth and
expansion is due to the ever-increasing trust by their customers and the team of
Patanjali.
We are a leading name in the sector. We aim to grow and expand to enhance our concept
of wellness of individuals and the society.
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Sales (Rs.in Crores)
Profit Before Tax(PBT)
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India and abroad. In last one and a half decade, he has begun with a health revolution
in Indian and making people aware about herbal products and benefits of doing yoga.
It also has a website called “Patanjaliayurved.net”, which is the official Patanjali
Products online store. Customers are just a click away from the company's commitment
to delivering high-quality goods. Along with delivering high-quality goods, the
organisation is committed to providing excellent service and real-time assistance.
Patanjali offers a wide range of products, including food, cosmetics, medicine, CDs and
DVDs, books, and audio cassettes, all at reasonable prices.
Patanjali Ayurved Limited has unique project teams working on Total Quality
Management (TQM) projects, with the aim of making quality a way of life. This ensures
consistent batch-to-batch continuity and ensures that their customers receive the same
high-quality products regardless of where they buy them. Customer satisfaction is the
aim of all economic activity. It deals with the characteristics of human behaviour and
affects the buying behaviour of customers. It is a method, which helps to study the
needs of customers. It helps in knowing about the way customer think and perceive
about the brand and its products.
Patanjali Ayurved Limited manufactures over 2000+ items, including 45 types of
cosmetics and 50+ types of food, with the needs and satisfaction of its customers as a
top priority. Patanjali's product line caters to almost every Customer group. Patanjali's
strategy, according to various media reports, is to concentrate on the consistency,
affordability, and purity of the goods, which has proven to be effective. The main
Customer base for Patanjali is Baba Ramdev's followers, but the interesting part is the
popularity of Patanjali products among non-followers. The increasing health problems
that are lifestyle related and the controversies of the top brand like Nestle for its product
Maggi, Cadbury, Coco – Cola etc. really helped in strengthening the brand hold on its
customer base and attracting the new customers. Patanjali is also expanding its
customer base in metropolitan cities. The strong customer base in small cities results in
word of mouth, which will increase awareness of brand’s quality, purity and
authenticity.
Before the current downturn, the Haridwar firm had grown at almost 100 per cent year-
on-year between 2014 and 2017. The company had also managed to push its turnover
from nearly Rs 2,000 crore in 2014-15 to Rs 5,000 crore in 2015-16 before further
doubling it to Rs 10,000 crore in 2016-2017.
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FINANCIAL GROWTH OF PATANJALI
Other 10 28 26 40 221 65
Income
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1.4 SALES AND MARKETING DEPARTMENT OF PATANJALI
Almost everyone has somehow heard the name of Patanjali and also many have used
one of their products. The sales and marketing department of Patanjali hence proved
that they are very much updated with what their customers want and then delivering
them with their best made products with the help of various sales and marketing
strategies.
Marketing department promotes your business and drives sales of its products or
services. It provides the necessary research to identify your target customers and other
audiences. Depending on the company’s hierarchical organization, a marketing
director, manager or vice president of marketing might be at the helm. In some
businesses, a vice president of sales and marketing oversees both the marketing and
sales departments with a strong manager leading each department. It’s important to
keep a strong marketing department intact regardless of the economy so you remain
visible and keep sales strong.
Research is a pillar of all marketing activities. Without demographic research, product
developers don’t know what features to design into products that will appeal to
customers. Publicists won’t know what publications customers read or what industry
topics journalists are covering. Research is used to measure buying habits, product use
and opinions of your business as well as your competitors.
The better your research, the less money you will waste – for example, by buying ads
that won’t reach your customers or making a product that no one will buy.
A functional marketing department implements customer relationship management
functions to track and predict what customers want in their products. It connects the
customer to the product with hard data as well as emotional, qualitative information
that can help product designers differentiate your products from those of a competitor.
This information also helps marketing promotions by highlighting these differences in
marketing materials. A marketing department sets prices for products that recoup
development and promotional costs while
Marketing departments carry out promotional strategies for products and services, and
some may also incorporate promotional activities, such as public relations, for the
business as a whole. The promotions staff assists the sales force with sales promotions;
offers public relations support for product launches, trade shows and other events;
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purchases advertising that illustrates product benefits and features; and pitches the
product to media outlets. Promotion activities range from creating awareness of a
product to persuading customers to try and then buy the product.
Marketing works closely with sales in generating new business. Employees entice
prospects to engage with your company in some way, even if it’s just visiting the
website, and then uses incentives to get customers to continue thinking about the
product so that the sales team can convince them to buy the product. This is called
generating leads. Not every lead turns into a paying customer, so business development
is ongoing. It can also include identifying new markets for existing products or
discovering a need that current customers have for a modified version of an existing
product.
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1.4.1 ROLE OF MARKETING DEPARTMENT
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Producing marketing and promotional materials:
Your marketing department should create the materials that describe and promote your
core products and/or services. They should be kept up-to-date as those products and
services evolve.
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1.4.2 MARKETING DEPARTMENT FUNCTION
The marketing department monitors market trends and identifies consumer needs and
wants. The team then developed a marketing strategy to create more awareness and
purchases by customers. In addition, they perform various tasks and activities such as
market research, test marketing, advertising, and branding.
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Internal Factors
It includes the factors which lie within the organization or is concerned with the inner
atmosphere of the firm.
Nature of products
Product stages in its overall life cycle
Availability of funds
Company objectives
External Factors
External Factors is concerned with the factors outside the organization. They include
the following aspects:
Degree of competition
Efficiency of channel
The buying behaviour of a consumer
Control from the government side
In general, the marketing function can be associated with managing four marketing mix
variables: product, price, location, and promotion.
Product: The marketing team designs products to meet customer requirements, such as
the core function, quality, size, colour, and product packaging. Another role is to map
product positions, develop unique selling propositions, and design product
differentiation/standardization to suit market tastes and demands.
Price: The marketing division sets the right pricing strategy for the products sold.
Various pricing strategies include cost-plus pricing, competition-based pricing, loss
leader pricing, penetration pricing, and zone pricing. Which is the right pricing strategy?
It depends on factors such as market demand, production costs, and competitor pricing.
Promotion: The marketing division is responsible for informing and persuading
consumers to buy the company’s products. It combines various activities, such as
advertising, sales promotion, personal selling, direct marketing, sponsorship, and public
relations.
Place: The marketing division manages how the product reaches the customer. It
determines which distribution channels are used and how intensively. Thus, the product
is available in the right place and at the right time. It involves choosing the right channel
to market the product, for example, distribution, online purchasing, retail outlets, or even
vending machines.
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The following is the Marketing Mix of Patanjali which clearly shows all the details of
the 4Ps:
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Mission - Sales goals, Advertising objectives.
Money - Market share, Competition.
Message - Message generation, Message evaluation, Message execution.
Media - Reach, Frequency, Impact.
Measurement - Communication impact, Sales impact.
Patanjali is mainly doing informative advertisement with aims to create awareness and
knowledge of mew products or new features of existing products in the market. Such
as advertising of hair oil without mineral oil, pure honey, herbal soap and wheat
noodles.
Patanjali uses medias for marketing and advertising such as TV, newspapers, Social
medias such as Facebook, linked in, YouTube, twitter. Banners or holdings and also
through sponsoring games or social activities. The company is trying to reach customers
and make them aware about the products of company.
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E-COMMERCE OF PATANJALI
E-business describes the use of electronic means and platforms to conduct a company's
business. E-commerce means that the company or site offers to transect or facilitates
the selling products and services online. E-commerce has given rise in turn to e-
purchasing and e-marketing. E - Marketing describes company efforts to inform buyers,
communicate, promote, and sell its products and services over the internet.
In modern era it is essential and important to follow e-commerce for increase market
share and fight against competitors. For e-commerce practise Patanjali provide facility
to purchase products from their official web site by just one click on product which
consumer want. After purchasing customer can pay online amount of product by use of
credit and debit card of bank and cash on delivery facility also provided by Patanjali.
Especially Patanjali provide special discount on purchase of product up to 5-10% if
customer pay through debit and credit card of specific banks for the objective of sales
promotion. It is beneficial for the both parties for customer it is beneficial to pay less
price and for company it reduces commission to middlemen and other costs also.
Advantages of E-Commerce
• E-commerce provides the sellers with a global reach. They remove the barrier
of place (geography). Now sellers and buyers can meet in the virtual world,
without the hindrance of location.
• Electronic commerce will substantially lower the transaction cost. It eliminates
many fixed costs of maintaining brick and mortar shops. This allows the
companies to enjoy a much higher margin of profit.
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• It provides quick delivery of goods with very little effort on part of the
customer. Customer complaints are also addressed quickly. It also saves time,
energy and effort for both the consumers and the company.
• One other great advantage is the convenience it offers. A customer can shop
24×7. The website is functional at all times; it does not have working hours like
a shop.
• Electronic commerce also allows the customer and the business to be in touch
directly, without any intermediaries. This allows for quick communication and
transactions.
Disadvantages of E-Commerce
• The start-up costs of the e-commerce portal are very high. The setup of the
hardware and the software, the training cost of employees, the constant
maintenance and upkeep are all quite expensive.
• Although it may seem like a sure thing, the e-commerce industry has a high risk
of failure.
• At times, e-commerce can feel impersonal. So it lacks the warmth of an
interpersonal relationship which is important for many brands and products.
This lack of a personal touch can be a disadvantage for many types of services
and products.
• Security is another area of concern. Only recently, we have witnessed many
security breaches where the information of the customers was stolen. Credit
card theft, identity theft etc. remain big concerns with the customers.
• Then there are also fulfilment problems. Even after the order is placed there can
be problems with shipping, delivery, mix-ups etc. This leaves the customers
unhappy and dissatisfied.
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Patanjali follows e-commerce mainly in two ways which are as follows:
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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 analysed two
sources of Patanjali success story. They are:
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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
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massive following, Patanjali has focused a lot of its marketing efforts on converting
youngsters to appreciate its 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.
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Patanjali Advertisement and Campaign Strategy
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 Ayurveda has done great research on their target audience and understands
the message they should put across through their 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 targeted
the most essential items we all need, clothing.
Patanjali now wants to enter the garment market by providing the traditional ethnic
wears and changing the youth’s mind-set to lean more towards Swadeshi Ka
Swabhiman.
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# 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.
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SWOT ANALYSIS OF PATANALI
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Fig. 1.14 – SWOT Analysis
STRENGTH-
Brand Ambassador:
Baba Ramdev as the brand ambassador makes the appeal of the company extremely
high due to his charisma and image as a health and yoga expert across the world.
Right Time, Right Product:
Capitalising on the trend of healthy eating and natural products, Patanjali products was
well suited for the demands of the mass consumers
Pricing Strategy:
Patanjali Products are found to be 5-to-10% below the average price of its competitor
products. This gives them a massive edge, especially in a price-conscious market such
as India.
WEAKNESS-
Logistics:
Since Patanjali don’t have any long-term deals with transporters the company’s
planning got complicated and their cost got increased too.
Declining Revenue:
The company’s standalone consumer goods revenue declined more than 10 per cent in
the year ended March 2018 for the first time since 2013. Their strategy of high volume
and low pricing has started to hurt them.
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Lack of International Clientele:
Patanjali products dominate the local markets but it does not have clients in ASEAN
and European markets like its competitor Dabur does. Patanjali only enjoys an audience
in India due to its low pricing and Baba Ramdev’s influence. They need to expand to
other countries to diversify their business.
OPPORTUNITIES-
International Markets:
Patanjali can capitalise on India’s massive ex-pat audience. According to one case
studies, Patanjali enjoys its second-biggest market in the USA, where the NRI audience
are attracted to its nationalist and heritage driven brand image. They can extend this
into a proper international marketing and sales strategy.
Targeting the luxury market:
Patanjali till now has only focused on low priced and mass-consumed products. It can
capitalise on its natural and heritage driven brand to market more expensive and higher
quality products to appeal to and compete against better products.
THREATS-
Political Instability:
Due to the high politicisation of the brand, the company is bound to suffer political
winds of change. Investors tend to not support such organisations due to high
politicisation, a change in government and a fall of graces that can affect its
performance.
Whistle-Blowers:
There have been reports of degrading quality of the Patanjali products. Though not
sustainable in evidence, such rumours can over time erode even the best of brand
images.
Increasing competition:
With all the existing brands such as HUL and Dabur adjusting to the new Ayurveda
market of consumers, they have all adopted new strategies to compete with Patanjali,
with its element of surprise gone, it will face old and tested companies.
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1.5 ABOUT- WORK AREA
Patanjali built its one-of-a-kind retail organization. It began selling products through its
own channels of super distributors, distributors, Chikitsalayas (franchise dispensaries),
and Arogya Kendras.
Chikitsalaya – Pharmacies where specialists analyse patients for their health related
problems and suggest purchasing drugs from stores nearby. This is a unique system no
other organization thought of. Patanjali Arogya Kendras, a well-being and health focus
centre. Non-drug outlets are called Swadeshi Kendras. Additionally, the organization
has numerous restrictive outlets across India. Patanjali items can also be purchased
online.
Above chart shows how it can simply be explained as to how Patanjali’s distribution
works starting from:
Super Distributors with a total of 72+ who are spread across the country, who then
supply the goods to the Chikitsalayas, Distributors and then the Aarogya Kendra then
the Distributor further supplies the goods to the Retailers.
There have been made many alterations to the supply of goods as to how they will be
supplied to and to whom.
Now, the Chikitsalayas get their stock from the distributors. Also, the distributors are
now directly selling the supplies to the open market retail shops which are not linked to
Patanjali in any form by providing them the set amount of discounts on those products.
35
MY EXPERIENCE IN PATANJALI
So, till now that we have seen about the marketing strategies of Patanjali, the
flourishment of Patanjali in the FMCG sector and the details about Patanjali.
Let me now start with the details of what my roles were and what I learned while
working in this booming organization. I chose to interview here because the vision of
the company stood out to me which is ‘BHARAT SWABHIMAAN’- a vision for
empowering India in Ayurveda and tackling the monopoly of foreign MNCs in the
Indian FMCG sector with the ‘Make in India’ initiative.
The company puts detail in their product production and also to its employees by
providing the necessary training so that they can understand their products which will
further help them to market the products to the consumers. Patanjali focuses on the
outcomes of best results when a consumer consumes their product be it in the FMCG
category or in the medicinal sector. Patanjali used the age old concept of ‘Ayurveda’ to
then make natural, healthy and nourishing products and medicines in order to benefit
the market.
The Director of this particular Patanjali Chikitsalaya where I did my internship was
Mr.S.S Yadav. Here, the staff consisted of the director, the doctor, staff manager and
three of Jr. Business Executives in business development. The overall working
environment was very friendly and learning as we all used to discuss about the different
products and medicines benefits. The ayurvedic knowledge is very old and precious to
the firm.
Present days, Yoga Education is being imparted by many eminent Yoga Institutions,
Yoga Colleges, Yoga Universities, Yoga Departments in the Universities, Naturopathy
colleges and Private trusts & societies. Many Yoga Clinics, Yoga Therapy and Training
Centres, Preventive Health Care Units of Yoga, Yoga Research Centres etc. have been
established in Hospitals, Dispensaries, Medical Institutions and therapeutic setups.
39
Gaumukh Asana –
This asana can be done for 5 minutes. Spinal cord strong, useful in hemorrhoids,
beneficial for liver-kidney.
Bhujnagasan –
By doing this asana, height increases. With this, the tiredness of the body is reduced.
Get rid of stomach fat too.
Markatasan –
Get rid of back pain, get rid of every spinal problem, beneficial for cervical, gastric,
kidney.
Uttanapadasana-
Stretching in the chest and muscles, relieving back pain as well as every problem related
to the spinal cord. Along with this, there is a stretch in the neck and muscles with
diabetes control.
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Anulom Vilom -
First of all, sit in the posture of Padmasana. Now put the ring finger of the right hand
and the shortest finger on the left nose and put the thumb on the right nose. Fold the
index finger and middle finger together. Now fill the breath from the left nostril and
close it by mixing the ring finger and the smallest finger. After this, remove the thumb
from the right nose and exhale.
This posture can be done from 5 minutes to half an hour. By doing this asana, every
skin related, glowing skin, diabetes, brain problems, stress, keep the mind calm, helps
in keeping the blood circulation fit and keeping the digestive system fit.
Ujjayi Pranayama -
Breathe in and out for as long as possible. After this, close the right nostril and release
it from the left nostril. By doing this asana, the mind remains calm, gets rid of problems
like asthma, TB, migraine, insomnia, etc.
Udgith Pranayama -
To do this pranayama, sit down in Padmasana or Sukhasana and chant 'Om' with a calm
mind. By doing this pranayama, one gets relief from diseases like gall disease, metallic
disease, high blood pressure.
Surya Namaskar -
There are 12 full poses of this day. By doing this in front of the sun every morning in
the morning, the body gets plenty of vitamin D, which helps to keep the body strong
and healthy as well. Only seven of its days are full of energy.
41
CHAPTER 2
RESEARCH METHODOLOGY
For this particular research on the topic of examining customers buying behaviour
towards Patanjali products the type of research used is exploratory.
Potential customers in this generation are becoming more concerned about their health
and determined to enhance their standard of living, as shown by their preference for
products that protect their health while offering complete satisfaction. A Customer will
go through a purchasing behaviour process in order to purchase a product.
Exploratory research is the process of investigating a problem that has not been studied
or thoroughly investigated in the past. Exploratory type of research is usually conducted
to have a better understanding of the existing problem, but usually doesn't lead to a
conclusive result.
Researchers use exploratory research when trying to gain familiarity with an existing
phenomenon and acquire new insight into it to form a more precise problem. It begins
based on a general idea and the outcomes of the research are used to find out related
issues with the topic of the research.
In exploratory research, the process of the research varies according to the finding of
new data or insight. Also referred to as interpretative research or grounded theory
approach, the outcomes of this research provide answers to questions like what, how
and why.
42
Characteristics of Exploratory Research
• Exploratory research is inexpensive, highly interactive and open-ended in
nature.
• There is usually no prior relevant information available from past researchers.
• It has no predefined structure.
• It answers questions like how and why aiding the researcher to acquire more
information about the research.
• The absence of relevant information from past research means the researcher
will spend a lot of time studying materials in detail. Therefore, spending so
much time conducting exploratory research.
• Since there is no standard for carrying out exploratory research, it is usually
flexible and scattered.
• There must a few theories which can verify your outcome.
• Researchers cannot form a conclusion based on exploratory research.
• The research problem must be important and valuable
• Exploratory research mostly deals with qualitative data.
43
2.1.1 OBJECTIVES
44
2.2 DATA COLLECTION METHODS
The study is fundamental in nature and concentrates on the Patanjali brand. The data
for the research was both primary and secondary. Collection of data was necessary in
order to get all the information which was required for the study. Data are the facts and
statistics collected together for reference. There are two types of data which was used
for this study and its further explained as:
45
2.3 DATA COLLECTION TECHNIQUES
Primary Data:
The sources of primary data are usually chosen and tailored specifically to meet the
demands or requirements of particular research. Also, before choosing a data collection
source, things like the aim of the research and target population need to be identified.
This type of information is obtained directly from first hand sources i.e., the source of
origin which means where the data generated and they are not subjected to any
manipulation.
Sources:
• Questionnaires
• Discussions
• Observations
Secondary Data:
Secondary data is gathering information from previously published primary research.
In such a research you gather information from sources likes case studies, magazines,
newspapers, books, etc.
This data may either be an already published for others to use and is commonly known
as the second hand data i.e. the source of the data is collected by one person and is used
by another.
Sources:
• Internet
• Reports
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2.3.1 SAMPLING TECHNIQUE
Questionnaires feature either open or closed questions and sometimes employ a mixture
of both. Open-ended questions enable respondents to answer in their own words in as
much or as little detail as they desire. Closed questions provide respondents with a
series of predetermined responses they can choose from.
48
2.5 DATA ANALYSIS TECHNIQUES
For this particular study the different data analysis techniques which were used are as
follows-
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Online survey tool
The online survey tools are the software solutions that allow you to create, run, and
interpret different types of surveys. You can either send survey links via email, on social
media.
Advantages of Online survey tool
• Faster
• Cheaper
• Quick to analyse
• Easy for participants to use
• Easy to make
• More flexible
Google form is the online survey tool which was used in this study.
Google Forms is a free online software for creating surveys and questionnaires.
You need a Google account to make a Google Form, but you don't necessarily need an
account to fill a form.
You can personalize your Google Form with question types, a header image, and a
colour theme.
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Fig. 2.5– Working of Online Survey Tools
Surveys
Survey research allows you to gather large volumes of data that can be analysed for
frequencies, averages and patterns. Common uses of surveys include:
Describing the demographics of a country or region.
Gauging public opinion on political and social topics.
Evaluating satisfaction with a company’s products or an organization’s services.
Observations
Observations allow you to gather data on behaviours and phenomena without having to
rely on the honesty and accuracy of respondents. This method is often used by
psychological, social and market researchers to understand how people act in real-life
situations.
Case studies
A case study can be used to describe the characteristics of a specific subject (such as a
person, group, event or organization). Instead of gathering a large volume of data to
identify patterns across time or location, case studies gather detailed data to identify the
characteristics of a narrowly defined subject.
Rather than aiming to describe generalizable facts, case studies often focus on unusual
or interesting cases that challenge assumptions, add complexity, or reveal something
new about a research problem.
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2.6 LIMITATIONS
• Time constrained
• The chance of biased response can’t be eliminated though all necessary steps
were taken to avoid the same.
• Social and cultural influences
• Time duration of this survey was 5 days only
• The survey was limited to the area of the Thane
52
CHAPTER 3
DATA ANALYSIS AND INTERPRETATION
The above pie chart shows that out of 50 responses for this survey 52% were male and 48%
were female respondents.
From the above graph we can see that the age group of the respondents who participated in
this study were between the age of 21 years to 53 years.
53
Fig. 3.3– Income Level
The above pie chart shows that the participated respondents had their income ranging from
below rupees 1,00,000 to above rupees 1,50,000.
The above chart shows that out of 50 respondents 82% currently use Patanjali products and
18% of the respondents currently do not use any Patanjali products.
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Fig. 3.5– Future Usage of Patanjali Products
The above chart shows that out of the 50 respondents 92% of the respondents intend of using
Patanjali products in the future and the remaining 8% of the respondents do not intend of
using Patanjali products in the future.
The above chart shows the monthly spend of respondents on Patanjali products. 38%
of the respondents spend Less than Rs. 1,000 next comes 34% of respondents who
spend from Rs. 1,000 – Rs. 2,000 then 18% of respondents doesn’t spend even a single
penny and lastly, 10% of the respondents spend from Rs. 2,000 and more.
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Fig. 3.7– Exposure to Patanjali Products
The above chart shows how the 50 respondents who participated in this survey came to
know about Patanjali products, 35 respondents through advertisements, 25 respondents
through word of mouth, 12 respondents through TV show and the remaining 6
respondents answered none of the above.
The above pie chart shows, how often did the respondents used Patanjali products. 38%
use once in a week or more, 30% use daily, 16% use 2-3 times a month and the
remaining 16% do not use Patanjali products.
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Fig. 3.9– Reasons of using Patanjali Products
The above chart shows the reasons of the respondents for using Patanjali products. 29
respondents said no side effects, 28 of them said its trust worthy, 26 of them said they
are budget friendly, 23 of them said Patanjali products are more satisfying then other
brands and the remaining 14 and 8 respondents said they have no other alternative and
do not use it respectively.
The above chart shows the purchasing pattern of the respondents towards Patanjali
products. 28% buy in bulk, 28% buy only when they need, 24% buy in single pieces,
14% said they don’t buy Patanjali products and the remaining respondents rarely buy
Patanjali products.
57
Fig. 3.11– Most used Patanjali Products
Above chart shows that 29 respondents use personal care products of Patanjali, 25
respondents use groceries, 24 respondents use health care products, 19 of them use
ready foods, 20of them use household products, 7 of them use beverages products, and
the remaining 7 respondents don’t use any Patanjali products.
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CHAPTER 4
FINDINGS AND RECOMMENDATIONS
4.1 CONCLUSION
According to the survey which was conducted customer’s perception towards Patanjali
products are very much different from one another as it somewhat depends on their
liking of the products, word of mouth advertisement like after hearing good reviews on
such products, trust worthiness towards the brand, their satisfaction level after using
their products.
The various factors which customers consider while purchasing Patanjali products were
concluded in this study. Since Patanjali products are ayurvedic people see no side
effects in using them, the products are budget friendly, provide more satisfaction then
other brands products and many said they have no other alternative to some Patanjali
products in other brands.
Buying behaviour of customers towards Patanjali products can also be affected by their
income level, like a customer will buy small amounts of products at a time because of
spending restrictions. According to the study the respondents having the income level
of more than Rs.1,50,000 were buying more Patanjali products.
59
4.2 RECOMMENDATIONS
• Based on the study, customers lean more towards Patanjali products is because
they find them more satisfying then other brands products, has no side effects,
is budget friendly, trust worthy and some products have no alternative in other
brands. Hence, the company should focus on improving these factors more in
the future.
• Advertisements has been the biggest reason because of which 70% of the
respondents have come across Patanjali and the rest through word of mouth
promotion and TV show. So, the brand should increase their advertisement
strategy in order to catch more and more potential customers.
• The company should focus more on personal care, health care, grocery,
household and readymade foods which are considered the most used products
as per the study.
• The company can also start offer drives on the products which are not doing
good. So that, potential customers get attracted.
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BIBLIOGRAPHY
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• https://marqueex.com/marketing-strategy-of-patanjali-when-a-name-is-
enough/
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products-with-competitors/
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aims-to-double-its-revenue-to-rs-10-000-cr-in-2016-17-116042700061_1.html
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enough/
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SURVEY QUESTIONS
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