Presented by:-

• 19F001:- Abhay Kumar Singh • 19F008:- Ankit K. Jha

• 19F002:- Abhinam Patel • 19F009:- Ankita Paul
• 19F003:- Abhisek Dash • 19F010: Anuj Negi
• 19F005:- Aishwarya Gupta • 19F011:- Arpit Sharma
• 19F007:- Ananthu K • 19F012:-Aseem Kant Gupta
• Pantanjali Ayurved Limited (PAL) is a FMCG brand founded by
Baba Ramdev and his associate Balkrishna in 2006.
• Believes in Delivering Heathy, Herbal, Ayurvedic, and
Affordable products.
• Deals in 400+ products in 9+ categories
• Sales growth rate:- 93%+ per annum.
Product
• Till 2012 only OTC Ayurvedic medicines and Products, like ghee and honey.
• After Mar-2012, 100+Products launched simultaneously.
• Categories:- Packed foods, Cosmetics, Toiletries, Spices Etc.
• Presented as of Superior Quality
• Herbal, Organic and ayurvedic substitutes.
• By 2016 product portfolio increased to 400+ Products
• New Categories added:- Grocery, Homecare, Personal care, Nutrition and
Supplements
Marketed as affordable Pan India

Prices was 15-37% lower then of

Popular in Northern and Western India
competitor products

Not so popular in Southern and Eastern

Part of India
 Since, 2003 People were engaged with
Ramdev as the main endorsee Ramdev as yoga guru and an spiritual
leader.
Since 2003, he had been making the
Popular among middle class Hindi
consumer aware of herbal products and
speaking consumers of northern India.
its benefits.
Till 2015 Negligible A&P Expenditure. Mainly Popular in consumers aged 35
Depended on Word of mouth. years and above.
Since 2016- Aggressive advertisement,
30-40% more then well established Not so popular among youths.
competitors
85% on Print, television and Radio
Rest 15% on outdoor marketing.
Celebrity endorsee:-
Hema Malini, Sushil Kumar.
 Unique and low cost initiatives
➢ Reduced administrative cost
● Top management salary
● Succession planning
● Criteria to be employee of PAL
● Modest salary of employees
➢ Supply chain efficiency
● Raw material procurement and nearby
manufacturing facility
● Backward integration by cultivating the
endangered herbs and raw material
● Domestic manufacturing plant and contract
manufacturing.
Marketing strategy

Common brand name

Reduced branding cost

Advertising & promotion- word of mouth

 Distribution plan
• Franchise model- low cost option
compared to wholesaler distributor
& retailer model PAL Franchise stores
• Tier 1, tier 2, tier 3 cities.
• Modern retail format; super- Year 2012 2016
markets, hyper-markets, e-
commerce platforms. Number of
100 15,000
• Modern retailers- shop-in-shop stores
• Permission on discount
• Partnered with Amazonbussiness.in
& Walmart.
• E-commerce platforms.
 Financial Performance
• Revenue in 2007-08 was
$9.05 million.
• Average year-over-year
growth was 93%.
• Revenue in 20015-16 was
$747 million. (40% turnover in
2015-16)
• 2015-16 shows 147%
growth in revenue as
compared to previous year.
 Top Four FMCG in India According to analysis
(2015-16) (2016-17)

1. HUL ($4.8 billion) 1. HUL

2. Nestle India 2. Nestle India
3. Dabur 3. Patanjali
4. Patanjali 4. Dabur
 Impact of PAL on Competition
• Rise of PAL resulted in loss if significant market share of leading
FMCG firms of India like, HUL, Nestle, Dabur, P&C and many
more.
• PAL created a new market segments of consumers interested in
herbal, ayurvedic and organic products.
• In 2015, competitors like Colgate, which lost 2.27% of market
share, realised the growth in demand for herbal and organic
products and decided to enter into herbal products category.
• They claimed that PAL products were faith-based products and
consumers were buying them due to their trust in Ramdev.
• Competitors not only have to face the challenge of new market of
herbal products but also have to compete with low prices of PAL.
• Dabur Honey lost a significant share of market to PAL’s honey as PAL’s
products were 40% cheaper. But, instead of focusing on price Dabur
decided to focus on quality and product innovation. It introduced
two ayurvedic health tonic, Dasmularishta and Ashokarishta.
• Other competitors also tried to penetrate the market by introducing
new herbal products or by acquiring small Ayurveda firms. Like,
Emami acquired a medicinal hair oil brand, Kesh King.
Controversies
• 300 judicial cases had been filed against Ramdev, his associate, and PAL.
• In 2011, the IMA appealed to GOI to take strict actions BABA because they
believed his claims of curing AIDS, Cancer and heart disease through Yoga and
Ayurvedic products were false and unsubstained.
• In 2013, the state of Uttrakhand, which was ruled by Congress, filed 81 cases
against Ramdev and the Patanjali Yog Peeth regarding the purchase of farming
lands without the consent of the farmers.
• In 2014, the credit rating agency, CARE, employeed by PAL to rate Patanjali
Food and Herbal Park, suspended the rating process.
• However BJP in 2014 closed several cases against Ramdev due to lack of
evidence.
• One of the first allegations against PAL’s products was that it’s
medicinal and herbal products contained bone powders.
• In 2012, some food samples from PAL which included salt and
mustard oil failed laboratory tests.
• In 2015, FSSAI found that PAL had launched atta noodles
brand without approval.
• PAL’s product quality issue was also supressed due to
Ramdev’s good relation with the central government.
• Industry experts also claimed that Ramdev was behind 2015
Nestle Maggi’s controversy in India.
 CHALLENGES FOR PAL
• Quality Issues
 Consumers Started complaining gradually about the quality of
the products.
 The Best selling products also had quality issues.
 E.g. Dant Kanti (Toothpaste) causing ulcers and bugs in wheat
flour and aata noodles.
 PAL’s only premium priced product Ghee was said to be
consisting of fungus.
 PAL’S RESPONSE TO QUALITY ISSUES.
 Ramdev denied all charges attributing it to be conspiracy from
competitors.
 He Stated in FMCG space MNC’s grow at rate of 4-5%, whereas
PAL grew at 150% per annum.
 This would put other FMCG’s into crisis zone in 3-5 years and
that’s why they are conspiring against us.
 According to PAL, They always produce superior quality
products.
Distribution challenges
• Sustainability of any FMCG company lays on its
distribution strategy.
• Less revenue in southern and eastern markets
• 90% of FMCG sales in India are through Kirana stores,
where Patanjali is available only at 2,00,000 Kirana
stores.(low margin of 5-6%)
• Less popularity among Indian youth
PAL’s Response
• Extensive investment in distribution portfolio
• 250 Retail outlets.
• 54 million towards A & P expenditure.(contract with
celebrities)
• Diversification of product line to attract youth.
 Revenue ($million)
800
747
700

600

500

400

300 302.87

200
178
126.73
100
67.71
47.44
24.3
0 9.05
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Revenue ($million)
 Growth rate %
180
168.51
160

146.64
140

120

100
95.23
87.17
80
70.15
60

40 42.73 40.46

20

0 0
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Growth rate %
 The Road Ahead:
PAL as a disruptor in the FMCG sector.
• Patanjali without much advertisement and promotional practices has become a
giant in the FMCG sector. Now at some point I believe that it has a big place in the
already saturated Indian market.
• Ripples that it meant to create are now craters and Patanjali seems to have a good
hold over market share. It majorly caters to the middle class consumers via its
herbal products and doesn't seem to change its focus. Also in the FMCG sector its
staple products are for mass distribution and its claims to serve at lower prices than
the market won’t hold for long.
• Growth observed so far will not be attainable if PAL doesn't choose traditional
modes of marketing and supply chain as well. A big part of the success is because of
the image and rapport created my Mr. Ramdev (Baba ji), and which has under come
under threat again in CORONIL issue. If PAL stays away from controversy and
assures quality, it can retain its position or even grow.
• And if PAL uses traditional marketing and supply chain wisdom, it may not be able
to sell at promised prices which can be an issue with consumers. As many retailers
are not excited to sell their products with low margins, only their popularity along
the lines of Amul can enable them to do so.
Formulating a winning strategy
• Vision: To retain their way of projecting the Patanjali brand i.e.,
Premium Quality, genuine ayurvedic consumer and medicinal products
at Right price.
• Objectives : Penetration in southern and eastern region ( By
Collaborating with southern spiritual and Yoga gurus), Awareness
among Youth.
• Values: Work on product quality to retain loyal customers. Cross
Language Barrier. Avoiding fake/overambitious marketing tricks.
THANK YOU