Professional Documents
Culture Documents
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ABOUT PATANJALI
Today, Patanjali is the most talked about brand and has become one of the leading FMCG
manufacturers. Its manufacturing is located in PATANJALI food & herbal park, Haridwar,
Uttrakhand (India).
PATNAJALI AYURVED LIMITED, a company
registered under the companys Act 1956 having its
registered office at D-26, Pushpanjali, Bijwasan
Enclave, New Delhi 110061. Founded in 2006 and
founders are Acharya Balkrishna and Baba Ramdev.
MD of the company is Acharya Balkrishna.
Revenue of the company is around 5000 crore (201516) and number of employees are 200,000
Products of the company: Food beverages, cleaning
agents, and personal health care products. The
company manufactures 444 products including 45
types of cosmetic products and 30 types of food
products. PATANJALI products are divided into 4
product categories:
1.
2.
3.
4.
Home Care
Natural Cosmetics
Natural Food
Natural Beverages
PATNAJALI AYURVED LIMITED has tie up with Pittie group and Kishore Biyanis future group
and as per the tie up with Future group, all the consumer products of PATANJALI are now available
for the direct sale in Future group outlets. PATANJALI Ayurved Limiteds products are also available
in modern trade stores including Reliance retail, hyper city and Star Bazar apart from online channels.
Patanjali Ayurved Ltds Vision:
BUILDING A BRAND
Wrapped in a saffron dhoti and graced with a witty tongue, Baba Ramdev pecked his first
controversy when he compared carbonated soft drinks to toilet cleaners at one of his yoga
sessions. This event probably can be considered to be his first war cry against the MNCs,
which eventually took silhouette in the form of his 'swadeshi' brand Patanjali. Additionally
the positioning strategy of being natural proved Patanjali different from me too category
and is the single most point of difference (PoD) yielding high returns to Patanjali Ayurved
Limited. Openly rejecting the West has helped PAL earn many followers taking it to dizzy
levels of popularity. Patanjali has the advantage of being connected with a personality, Baba
Ramdev, a yoga guru with a following of millions who popularizes this brand through his
camps. Below given Figure-1 provides information on revenue and profit for Patanjali.
There has been a mammoth increase of 250% in the total revenue earned by Patanjali in FY
2015-16 as compared to previous financial year. The net profit of Patanjali has witnessed a
growth of more than 200% from `156 Crores in FY 2015-15 to `317 Crores in FY 2015-16.
The numbers speak for themselves. However, a retaliation from existing FMCGs cannot be
over-ruled as they seem to have unmatched marketing capabilities; still Patanjali has been
brilliant enough in execution of its marketing strategy and have touched consumers so
profoundly that it has yielded to create a gigantic tsunami of emotional upsurge across the
entire country.
Baba Ramdev created a latent psychological need for his products through his Yoga and Pranayam
program named Bharat Swabhiman. Figure-2 below displays the journey of Patanjali starting from
creating the need in Indian consumers to a successful FMCG brand.
market much earlier by establishing an image of an organization which cares for healthiness through
natural products and being swadeshi.
There are many competitors in Indian market like HUL, Colgate-Palmolive, Nestle, ITC, etc. across
all the categories and in spite of the fact that all these FMCG companies have by and large similar
products available at nearly similar prices, Patanjali has successfully proved its products different
through their marketing strategies.
While using Patanjali products, Indian consumers have an instilled feeling of Nationalism in their
minds. They shun the products made by international companies and use the Patanjali products to help
the countrys economy grow. Patanjali consumers also experience emotional satisfaction and a feel of
pride on purchasing Patanjalis product (i.e. we are using our own product/we are using natural
product/we are contributing for our country/culture by not purchasing MNCs products.
Unlike existing FMCGs, Patanjali, it has its own branded outlets around the country. It has recently
signed up with the Future Group's network to achieve its sales targets. Its production units are
comparatively modest. The savings in distribution margins and the low overhead expenses
straightaway translates into a 20-25 per cent of cost advantage, providing Patanjali the leverage to
price
its
products
cheaper
than
its
rivals.
But, for its emergent base of consumers, it isn't just about a cheaper price. Patanjalis consumers
genuinely trust in the goodness of ayurveda and products being natural.
Patanjali expends only a diminutive fraction of its revenues on channels of mass media advertising.
As an alternative, Patanjali it lets its loyal consumers develop their confidence and trust from the
validations that Baba Ramdev delicately delivers amidst of his yoga asanas on Sanskar channel during
the day.
The below mentioned Figure-3 displays Ansoffs Matrix to provide better understanding of overall
product and market strategy of the Patanjali Group.
Although Ansoffs matrix is more than five decades old marketing tool, it still is very effective tool to
understand the diversification strategy of any organization (Richardson and Evans, 2007). It can be
vividly understood with this matrix that Patanjali is diversifying itself from ayurvedic medicine to
FMCG products.
Products:
Food beverages, cleaning agents,
personal health care products
Herbal OTC products to treat Cough
& Cold
Price:
Value based pricing
Alignment with cost, customer &
competitors
Place:
Franchisee Stores
Super/Hyper markets
Online Marketplace
Promotion:
Yoga Camps to create awareness
Astha Channel
Reporting Structure of sales force management: In the sales function, there is a VP at the top (Vice
President, Sales and Marketing) based at Haridwar and takes care of the all the territories across India.
Below VP there are RM (Regional Manager) looking after two-three states depending on the size of
states for example one RM looks after Chhattisgarh and Maharashtra. At the state level there is ZM
(Zonal manager) and below ZM there are ASM (Area Sales Manager). Below ASM, there are TSI
(Territory Sales In-charge). All these are on company payroll. Even TSI is also on company payroll.
Figure 8 displays the reporting structure of sales force management of Patanjali Ayurved Ltd.
Generally one RM looks after 2 states, e.g. there is one RM for C.G. and Maharashtra. Zonal Manager
is State Head and below ZM, there are 4 ASM in C.G. There are 42 TSI in C.G. There are 4 Superdistributors (SD) in C.G. One ASM generally looks after one Super distributor (SD). One TSI usually
looks after one distributor. There are 70 distributors and 25000 retailers in C.G. state and Raipur has 4
distributors. Figures 8 & 9 displays Reporting Structure of sales force management and Distribution
channels of Patanjali Ayurved respectively.
VP
ZM1
RM1
RM2
ZM2
ZMn
RMn
Company
Super
Distributor
Aarogya
Kendra
Distributors
Chikitsalaya
Retailer
Figure 9: Distribution channels of Patanjali Ayurved
1 Godown staff
4 Salesmen
1 Computer Operator
1 driver/supplier
loader/unloader
Minimum size of godown at distributor place is 1500 Sqft with 200 sqft of additional space for
loading and unloading and 200 sqft additional space for office. So a distributor should have minimum
2000 sqft space.
Each distributors turnover is approximately ` 25 Lakh/vertical/month.
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