Professional Documents
Culture Documents
Patanjali-ConsumerBehaviour Project
Patanjali-ConsumerBehaviour Project
Behavior Project
2017
Submitted by-
Monika Chauhan
PGP/20/034
Patanjali: Capturing the Indian Market Monika Chauhan PGP/20/034
Table of Contents
Table of Figures
"India is at the cusp of the FMCG S-curve and there is significant room to grow over the next
5-10 years. A nominal GDP growth rate of roughly 12 percent over the next three years
could signal an FMCG growth by over 15 per cent, depending on player action"
- Bain & Company
The fast-moving consumer goods (FMCG) segment is the fourth largest sector in the Indian
economy. Although the industry has witnessed a slowdown for the past three years it shows a
potential to grow by more than 15 percent over the subsequent years given the players focus
on improving brand penetration rather than on expanding product lines by bringing in more
products.
Segmentation
Major segments of FMCG Sector
FMCG goods are popularly known as
shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household
accessories and extends to few durables like electronic goods. These are generally the
commodity items meant for daily frequent consumption and offer a high margin.
Soft drinks, Tea & Coffee Hair Care and synthetic detergents)
Bottled water etc. Deodorants & Perfumes etc. furniture polish etc.)
Though the FMCG industry has faced slow growth in recent years, overall its growth trajectory
has been positive and shows similar trends in coming years too. Majority of the growth can be
accessibility, increased disposable income and hence purchasing power, and changing
Major Players
Studies show that 62 of the top 100 brands in Indian FMCG market are owned by MNCs,
leaving the balance for domestic players. Although Patanjali is giving tough competition to
each of these MNCs by continuously eating away their market shares. Some of the major
Hindustan Unilever Ltd., ITC (Indian Tobacco Company), Nestl India, AMUL, Dabur
India, Asian Paints (India), Cadbury India, Britannia Industries, Procter & Gamble Hygiene
ABOUT PATANJALI
Patanjali is one of the main FMCG players in India that has set up an enormous market for
itself in a matter of moments. A few reports propose that the brand, established by Baba
Ramdev, a famous Yoga Guru, is focusing on an income above Rs 20,000 Crores in FY18. Be
it shampoos, toothpaste, cleansers, beats, grains, sugar, or whatever other FMCG thing,
Patanjali offers everything by means of their single image and multi-mark retail locations. The
brand has extended its essence over each niche and corner of the nation and has a solid hold in
North, East and West. In doing as such, Patanjali has eaten into the piece of the overall industry
of these multi-national brands and has a solid informal exchange if not more. Patanjali
appreciates tremendous open help and has been advancing the brand with the possibility of
contaminated free items through its promoting efforts. Over a period, it has developed as a
gigantic test to a portion of the generally solid players, for example, HUL, Colgate, RB, and
Nestle. Patanjali organizers have been consistently making explanations assaulting these
MNC's and making a development that will corner these players in the market.
Patanjali: Capturing the Indian Market Monika Chauhan PGP/20/034
Product Mix
Patanjali is posing tough competition to all major FMCG brands by diversifying into almost
all major FMCG product lines. It majorly focuses into 4 business segments, viz., ready foods
(foods, supplements, digestives, dairy, juices, etc.), personal care (cosmetics, shampoo, soaps,
facewash, etc.), home care (detergent cakes, powder, liquid), etc) and ayurvedic products
(healthcare products for blood pressure, skin diseases, joint pain, etc).
Patanjali has focused on the Behavioral Segmentation of the Indian customer market focusing
Cult Followers
Indian customer market is majorly dominated by millions of people who are the followers of
various spiritual organizations, gurus and cults. Major names include Osho, Art of Living and
Ramdev Babas Patanjali Yogapeeth. These organisations exert an huge influence on the lives
and minds of these people and the choices they make in their daily lives. This is why the
marketers treat this segment as a distinct one and is targeted very differently.
Indian brands exploit this opportunity to the best by targeting this customer segment with a
range of products and services by resting on this influence factor. The marketers either enter
into partnership with these organizations or through some other ways keeping up with and
respecting the legal and ethical boundaries involved. This customer segment is the source of
endless opportunities and is the key target of Patanjali as a product and service provider.
Patanjali Ayurved is a fused organization under the Companies Act Patanjali Ayurved
Limited. In spite of the fact that a corporate substance, its working and belief system is not
where the shoppers feel they can show signs of improvement item at a superior cost. The
Providing worldclass items to purchasers (ensuring the organization does not include
any additives or utilizations normal additives beyond what many would consider possible).
Producing items in the most costeffective way with the goal that the items are evaluated
sensibly.
Whatever benefits the organization gains are furrowed once again into business so it
can contribute the same for dispatch of new items, cost viability or further limit extension.
Patanjali is focused on not dispatching any items which may be hurtful to the wellbeing of
customers in any manner or hinder their wellbeing or their way of life. Thus, the organization
Beyond Patanjali's leading ayurvedic product range, their straegy is to just make items that
individuals are already using and are aware of or are comfortable using rather than putting it
endeavors to develop new innovative products. Indeed, even the item names are fundamentally
the same as already existing products in the market. This move is extremely smart, as it
fundamentally lessens the efforts in convincing the end customer to shift to the product.
But how do the customer choose Patanjali as a brand over the competitors brand, pick its
product (which is new to them) over something that they have already been using. Patanjali
promises them something that the customers would want to buy but the other product doesnt
offer. So Patanjali uses the positioning statement for its products: Pick our product - it is the
same product with no harmful chemicals. Plus, by buying our products, you are ensuring
the money you spend stays in India. This additional value proposition is true for all their
products and that is the reason they have branded every product as a Patanjali product.
Patanjali: Capturing the Indian Market Monika Chauhan PGP/20/034
Patanjali offers a no chemicals & swadeshi alternative to the customers to influence them
Patanjali works on the kitchen concept, i.e. launching products that will touch all categories of
Patanjali as a brand has established it name in the Indian market and a very high recall in
customers mind in a very short period of time through various marketing techniques as well
as positioning the products in a way that customers readily accepted it and adopted it over the
The characteristics of the market segment targeted by Patanjali is such that the value
proposition offered by Patanjali suits the segment and customer readily accept the brand. The
customers targeted are the ones who are health conscious, believe a lot in natural products and
Patanjali: Capturing the Indian Market Monika Chauhan PGP/20/034
other natural ways like yoga, follows these programmes and are heavily influenced by Baba
Ramdev. Thus, the products coming from a brand with his face gains acceptance very quickly.
The primary research conducted (telephonic interviews of 4 people of different age groups
varying between 28-55 years) showed that they had started using the Patanjali products as the
brand positioned itself on the concept of purity and originality in a way that it provides natural
benefits, minimum usage of chemicals, affordable prices and was heavility promoted by the
yoga expert Baba Ramdev. Also, the programmes featured on channels like Aastha explain
the ingredients in the Patanjali products making them more acceptable and reliable.
Once I visited the free counselling provided by the doctors sitting in Patanjali centres
and he recommended me to use Patanjali Trifala for better digestion. It worked although
Patanjali products use natural ingredients and therefore are not harmful.
Multi-grain aata provided by Patanjali is very healthy and similar are the other food
products.
Though some products are expensive, but they contain natural ingredients and are
Patanjali dank kanti is a good toothpaste and keeps the teeth healthy. Also, it doesnt
contain Sulphur.
We wanted to try Patanjali but it was not so easily available. Now that the products are
available in various other stores also, we have started using several products and we
liked them.
spirituality.
Patanjali's key strength, apart from its superior item quality, lies in its pricing strategy. Majority
of the share of the organization's items is evaluated at ~1530% markdown to the competition,
which makes it an appealing proposition for the buyers. Also, Patanjalis another reason of
offering rebates and discounts is its consumercentric approach to offer best quality products
at affordable prices.
Contrary to the popular perception as mentioned above, not all Patanjali products are priced at
low amount. The pricing structure varies from low-cost items to products which are priced high
as compared to the competition. Thus, Patanjali doesnt only play on price in every product
category. Patanjali ghee, for instance is priced at a premium. Reason being the health factor
related to it, lack of easy availability of cow ghee, and purity concept related to the food
Patanjali launched its products portfolio starting with Ayurvedic medicinal products and
established FAITH in customers mind. Next, they came up with health supplements and
consumables like cereals, wheat floor, spices etc. placing itself as a brand of Indian Kitchen.
Thus, Patanjali has slowly but steadily moved from category to category and captured
While one may be enticed to trust that Patanjali has developed exponentially within such a
short period of time, the truth of the matter is that it is a consequence of around 20 years of
tenacious work around Yoga and Ayurveda by Baba Ramdev. In those 20 years, Baba Ramdev
Patanjali: Capturing the Indian Market Monika Chauhan PGP/20/034
has manufactured a to a great degree steadfast group of supporters. Over years, he has
constructed a notoriety and trust even among his non-devotees. With regards to picking
between any product of Unilever, P&G, Nestle and so on in comparison to Baba Ramdevs
Unconventional Advertising
Patanjali has embraced the unique information based promotions. For example, Patanjali
features the positives of cows ghee, which consequently increases the sales Patanjali Ghee.
For the customers, Baba Ramdev remains the substance of Patanjali and its items. Baba
Ramdev, amid his yoga sessions, exhibits the Patanjali items. After the session, he makes the
participants mindful of the advantages of utilizing Patanjali items. Till date, near 70million
individuals have interacted with Baba Ramdev through his yoga camps and it is trusted this
can increment to 200million proceeding. This features the potential achieve that the Patanjali
brands can have without much standard publicizing. Additionally, being related with Baba
Ramdev helps in making a superior recognition among purchasers that being ayurvedic
Many customers grumble that because of Patanjali's powerless dissemination organize its items
are not effectively accessible all over the place and they can't get them. To address this worry,
the organization has chalked out a forceful arrangement to enhance its essence on the online
stage. At present, Patanjali is now offering its items through its online website,
www.patanjaliayurved.net, from where buyers can arrange the items and get free conveyance
of the same if the request esteem surpasses INR499. Apart from the company-owned website
channel, Patanjali products are now also available on Online grocery markets like Bigbasket
and Grofers. The organization is likewise executing ERP for better mapping of stock (SAP has
Patanjali: Capturing the Indian Market Monika Chauhan PGP/20/034
just been actualized). Patanjali will likewise be propelling its portable application, which will
enable purchasers to find close-by outlets that are offering Patanjali items and furthermore
In a highly competitive and fast-moving market like FMCG sector, getting the right consumer
insights and growing sales is a challenge for all the organisations, but Patanjali has been
successful in doing so to a very large extent. Patanjali has applied its knowledge and
relationships with the mass public to uncover consumers needs, motives and attitudes which
has enabled the firm to take the right strategic decisions regarding the positioning, branding,
Source Credibility
The key insight revealed from how Patanjali value proposition has been successful so
extensively is the credibility of the product and information source. The product offered comes
Patanjali: Capturing the Indian Market Monika Chauhan PGP/20/034
from Patanjali which is promoted by Baba Ramdev, who is perceived to be very trustworthy,
likeable and expert in health matters. Thus, the credibility of the brand is huge in the eyes of
the customers and they are not very reluctant in adopting the brand.
What works for Patanjali is the way that the promoter of the brand is likewise its image envoy,
and stands for good wellbeing and deep sense of being. He is putting forth items that are
situated as being unadulterated. Customers are progressively looking for solid living.
Unmistakably, there is a fit between what Ramdev remains for, what his items offer and what
Certainly, there are different brands that have made "Ayurveda" their USP. Delhi-based Dabur
India Ltd was based on that suggestion. So was Bengaluru-based Himalaya Drug Co. Be that
as it may, the distinction is that Ramdev and, by a large extent, Patanjali is believed to be the
living example of all that is natural. Ramdev is the first thing. He is fit, does yoga and
advances non-substance items. His wellbeing messages discover reverberation in his items.
That is the place his allure lies. Many consumers say they believe in the brand because Baba
Ramdev is talking about these products on television so they must be goodhe wont lie,
they say.
Patanjali has set up faith in customers mind through its ayurvedic range of medicinal products
which was the first category to be launched by Patanjali. Slowly, it has moved on to other
category playing on the faith factor created amongst the customers and always making sure
that the products live up to the expectations created, even surpass them at times.
Patanjali: Capturing the Indian Market Monika Chauhan PGP/20/034
The development in numbers can be credited to Ramdev's advertising mastery, as well. He's
watchfully shrouded his business keenness behind his saffron robes, sermons on otherworldly
existence and yoga, and clear straightforwardness. Be that as it may, in Patanjali he's discreetly
Patanjali would have to focus more and more on R&D and innovation as a means of growth
including improving processes to increase product quality and reduce price. Patanjali has
already developed a culture that promotes using key consumer insights and will continue to do
to create either the next generation of products or even new product categories.
With International Yoga Day being celebrated at such a large scale, with increasing health
awareness amongst people, with people globally moving towards natural ways of health
maintenance, Patanjali has a very strong foothold in the kind of products needed to target these
new markets and has the best value proposition as compared to other MNCs in FMCG market
which would attract these customers. Thus, Patanjali should plan going international in
REFERENCES
http://www.firstpost.com/business/fmcg-growth-seen-accelerating-over-15-in-next-2-3-yrs-
says-a-study-3322386.html
https://blog.ipleaders.in/indian-fmcg-sector-new-trends/
http://www.indianmba.com/Faculty_Column/FC851/fc851.html
http://www.livemint.com/Opinion/30a5WR5HDjU8Rau68JRkgI/Patanjali-Ayurved-Of-
savvy-marketing-and-smart-pricing.html