School of Management and Entrepreneurship

International Marketing
(MKT629)
MBA 2019-21

PROJECT REPORT:
Analysing Marketing Strategy of “Patanjali Products” in USA
Submitted To: Prof. Subir Bandyopadhyay

SUBMITTED BY:
GROUP - 1
Ritika Sharma (1910120028)
Ashutosh Choudhary (1910120007)
Narpat Yadav (1910120023)
Vikas Yadav (1910120042)
Kaustuv Chatterjee (1910120016)
Mayank Sharma (1910120021)

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Table of Contents
INTRODUCTION.....................................................................................................................................3
CORE BENEFIT.......................................................................................................................................3
CONSUMER DECISION PROCESS...........................................................................................................5
DIFFERENCES IN INDIAN AND US CONSUMER BUYING PROCESS...............................6
TARGET CONSUMER SEGMENT............................................................................................................6
MARKETING MIX PLANS.......................................................................................................................7
1. PRICE.......................................................................................................................................7
2. ADVERTISING AND PROMOTION.................................................................................10
3. DISTRIBUTION OR PLACE STRATEGY........................................................................11
4. PRODUCT(S).........................................................................................................................13
CONCLUSION.......................................................................................................................................13
REFERENCES........................................................................................................................................14

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INTRODUCTION

Patanjali Ayurved, an Indian consumer goods company, is based in the industrial area of

Haridwar, Uttarakhand, while its registered office is in Delhi, with production units and

headquarters.

Mineral and herbal products are manufactured by the business. Patanjali is the fastest

growing FMCG business in India, according to CLSA and HSBC. According to data

provided by the Tofler business intelligence platform, Patanjali Ayurved Ltd posted a 21.56

percent rise in standalone net profit to Rs 424.72 crore for the financial year 2019-20. For the

2018-19 financial year the firm posted a net profit of Rs 349.37 crore.

The above figures are not from any major FCMG companies such as HUL, Nestle, P&G.

This is the "Patanjali Ayurveda Limited" growth storey of India's blue-eyed boy. Started in

1997 as a small pharmacy, Patanjali nearly developed its Ayurveda business from scratch and

quickly gained market share and shelf space, challenging existing multinational brands in all

categories it has forayed into.

As of 2018, it was ranked 13th in the list of most trusted Indian brands (The Brand

Confidence Report) and ranks first in the category of FMCG.

CORE BENEFIT

Within a short span of time, the brand has become a household name and there are reasons to

support it. Being in demand for Herbal, the company has always aimed to give customers the

best of nature. They made it a point when doing this to keep it light on the wallets of the

buyers, which is not the same as other high-end brands selling herbal products. Patanjali

products have been loved by customers as they not only provide performance but are also

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safe to use. In enormous turnovers and revenues, the confidence factor that the brand has

built among customers pays them. While the company provides a huge range of products in

each category, several herbal products have been added to the list of favourites of consumers.

We have planned to launch below mentioned Patanjali product to USA which belong majorly

to the healthcare sector:

1. Patanjali Coronil: The Ayurvedic medicine Coronil, which has Ashwagandha,

Giloy, and Tulsi as main components (natural) for the treatment of coronavirus within

14 days, was launched on July 2, 2020 at Patanjali Yogpeeth in Haridwar. In addition

to offering control and cure for the infection, the medicine that claims '100%

favourable outcomes' also assists in primary and secondary prevention.

CONSUMER DECISION PROCESS

A backbone of the Indian economy, the FMCG industry crosses every aspect of human life.

Consumer behaviour will primarily rely on their purchase decision or physical practises

involving the procurement, assessment, use and disposal of goods and services.

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Consumers are looking for healthier goods along with quality, as there is a great knowledge

of the healthy lifestyle in modern India.

A large portion of users are pleased with Patanjali products, as per the International Journal

of Innovative Technology and Exploring Engineering (IJITEE). It could be because of the

product's fair price. It could be because of the product's ability to cure the problem.

Satisfaction leads to customer retention. Through the spirituality factor involved in its goods,

Patanjali is enjoying the advantageous marketplace.

Patanjali reports to have used herbal and ayurvedic products, because of which it enjoys,

through the spirituality aspect, the advantageous position on the market. The word of mouth

canals has a big influence through advertising.

Owing to the COVID-19 outbreak, why, what, and how customers buy is evolving. The most

basic needs have been focusing on customer priorities, sending demand for hygiene, cleaning

and staple goods soaring, while non-essential categories are slumping. The factors affecting

brand decisions are also evolving as the trend of "buy local" accelerates. As new customers

move online for grocery shopping, digital commerce has also seen a boost, an increase that is

likely to be sustained post-outbreak.

Our need for the essential necessities of life takes precedence in times like these. It comes as

no surprise that the top priority for the customers, followed by the health of friends and

relatives, is personal health. Other leading priorities are food and medical protection,

financial security, and personal safety.

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DIFFERENCES IN INDIAN AND US CONSUMER BUYING PROCESS

Patanjali Coronil: Currently people affected from Coronavirus in India buy Patanjali

Coronil tablets, in order to naturally cure and boost immunity from the novel virus in the time

stamp of 14 days. The same pattern would be followed in USA to let people boost their

immunity from the coronavirus. One of the major differences would be the climatic

conditions in USA. Coronil might be beneficial for people living in India but the ingredients

used in the product might not benefit the people living in USA.

According to a recent Pew Research Center study of government information, about half of

U.S. adults (52 percent) lived in middle-income households in 2018, who are capable of

affording the various products of Patanjali.

TARGET CONSUMER SEGMENT

INDIA:

1. Demographic: Income level in India although steadily rising still poor, lower middle

class, middle class and upper middle class form a very big chunk of Indian

population. These classes look for affordable products with good quality (especially

lower middle class).

Recently as patanjali marketed its product patanjali coronil as COVID management

drug due to which it has been in a lot of demand in India as well as abroad. Revenue

generated by coronil in just 4 months from its launch is near to 250 crores.

2. Geographic: Geographically the areas with larger no. of corona cases seems to have a

larger sale of Coronil.

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 3. Behavioural: Since Baba Ramdev is a Yog Guru and people have a mindset of

patanjali products being 100% Ayurvedic and beneficial for health, Coronil made an

impact on the mind of people that it would be beneficial and will strengthen the

immune system. Also, as no other alternative were present at the time when coronil

was introduced, a huge demand for the product was seen.

USA

1. Demographic: As Baba Ramdev is yog guru and even in United States people follow

the Yoga. Patanjali even has its foot in USA. Usually, the areas of USA where Indians

are high in population is the target market of Patanjali.

2. Geographic: Coronil is being sold in the areas that are highly affected by the COVID

19 cases as an immunity booster.

3. Behavioural: Indian People in USA tend to choose patanjali products over other

products because of the Make in India or the “SWADESHI” Product. Also, as

Ayurveda is considered as a historic method of treatment and no alternative for

treatment of COVID 19 were available, so Coronil would be able to make its market

in USA.

MARKETING MIX PLANS

1. PRICE

The use of natural ingredients and Ayurveda and pricing. Pricing plays an extremely

important role in putting Patanjali Ayurveda ahead of his difficult competitors. Hindustan

Uniliver and P&G are doing their best to cope with competition, but people's love for Indian

product is not helping them.

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Patanjali educates people about the advantages of using their goods and also uses price

comparison as an efficient marketing tool. The pricing strategy is clearly penetrating pricing

because Patanjali recognises that it cannot conquer the higher priced market. Plus, if the

products are local and domestic, the quality of the product would also be lower. Almost every

product has a 25-30% drop in price compared to the Foreign Brands that are supporting

Patanjali.

Proposed Price of Patanjali Coronil in USA: $16.47

Price of Patanjali Coronil in India: Rs 496

There is Change in Price of Following Reasons:

1. Taxes and Import Duties

 One of the key factors influencing the prices of commodities is the disparity in

taxes and import duties across countries. Brazil, for example, has an incredibly

high import duty or tariff of 60%, which makes imported goods such as cars and

phones so much more costly.

 State taxes, too, make a significant difference. If San Francisco has a sales tax of

8.5 per cent and London has a value-added tax (VAT) of 20 per cent, this will

greatly impact the prices charged by consumers. There is a major disparity in the

treatment of sales tax and VAT when it comes to exports and imports. When the

products are exported, VAT is paid on the item, but there is no sales tax.

 As far as oil prices are concerned, prices differ considerably due to subsidies in

some countries and fuel taxes in other countries. That is why gas is absurdly cheap

in oil-producing nations such as Venezuela and Saudi Arabia. In the United States,

taxes vary from state to state.

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 2. Perceived Value

Another significant consideration is that costs for products such as appliances and

automobiles are not necessarily determined based on the cost of manufacturing them. A

commodity may have a higher perceived value in one country compared to another. A

popular brand could have a perceived high value in one country and may be marketed there

as a luxury brand, allowing the business to charge a higher premium. Also, the expense of

doing business in a country may influence rates. The recruiting of workers and the

establishment of stores would not be same in every Country

Other Factors:

1. Transportation Costs

When dealing with commodities or other tangible items, the cost of shipping them must be

included, resulting in different prices when the goods are examined from two different places.

2. Transaction Costs

Since transaction costs exist and can vary across different markets and geographic regions,

prices for the same products can often vary across markets. Where transaction costs, such as

the cost of locating a suitable trading counterparty or the cost of negotiating and

implementing a contract, are higher, the price of a product would tend to be higher than in

other markets with lower transaction costs.

3. Legal Restrictions

Legal obstacles, such as capital controls or in the case of wages, immigration restrictions, can

lead to persistent price differentials rather than one price. These would have a similar impact

on transport and transaction costs and may also be thought of as a form of transaction cost.

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 4. Market Structure

Since the number of buyers and sellers (and the willingness of buyers and sellers to enter the

market) can vary between markets, the concentration of the market and the ability of buyers

and sellers to set prices may also vary.

2. ADVERTISING AND PROMOTION

Creative: (Coronil) #CurseTheVirus: This would be a video that will begin with showing

news articles related to multiple Covid vaccines failing to pass the final tests results. After

that a person dressed like a doctor will ask some provoking questions like:

Are you waiting eagerly for the Covid vaccine?

Are you taking all the precautions to safeguard yourselves from Covid?

Are you sure you are doing enough to gain the required immunity?

Are you tired of having 5-6 tablets of multivitamins daily?

After that a person will be shown discarding 5-6 tablets of different multivitamins (without

any brand visible) in trash and replacing it with a single pack of Patanjali Coronil. A quick

unboxing of the Coronil pack is shown describing how easy it is to take. After that the doctor

comes back and says “You gotta have this before it’s too late. Precaution is better than cure”.

Ads Broadcasting

 All the creatives will be aired on all the social media handles including Instagram,

Facebook, and Youtube.

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  Using Youtube Ads, we will be able to put our ads in front of people who we consider

as our target audience.

 Will use Instagram and Facebook promotions using the CPC model.

 Will use Google Ads with a budget cap.

 Will print our creative’s posters on local newspapers.

 Will use Netflix to host our ads.

3. DISTRIBUTION OR PLACE STRATEGY

1. Selling through retail outlets:

Patanjali can partner with Wall mart and Target, USA to sell their products. There are about

324 million people residing in the U.S. And every week, about 140 million clients visit

Walmart in person or online, many of them checking their shopping lists. 75% of the

population of the United States lives within 10 miles of a Target store.

2. Selling its products online:

Patanjali can partner with Amazon to sell their products. In 2018, the US e-commerce market

share of Amazon reached 49%. That's 5% of all country-wide retail spending. More than 12

million items are available on Amazon. In the US, 95 million consumers are associated with

Amazon Prime. Amazon leads the list of the United States' most popular shopping apps. The

Amazon app was downloaded by 150.6 million smartphone users in September 2019. 89

percent of consumers believe that they are more likely to purchase Amazon goods than other

e-commerce sites, based on a survey of more than 2000+ US customers.

3. Opening outlets at railway stations and airports:

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Patanjali can partner with local vendors or open their own stores at railway stations and

airports of USA. 1.8 billion people ride by rail each year and millions of passenger journeys

begin, end or pass through the stations every day. In 2019, U.S. airlines and foreign airlines

serving the U.S. brought an all-time high of 1.0 billion scheduled service passengers through

the system (domestic and international), 4.8 percent higher than the previous record high of

965.4 million achieved in 2018. The system-wide rise year-over-year resulted from a 4.9 per

cent increase in the number of passengers on domestic flights (777.9 million passengers in

2019) and a 4.4 per cent increase in passengers on flights to and from the U.S. and

international airlines.

4. Yoga Shivir and campus to indirectly sell the product:

Patanjali can start teaching people of USA yoga in parks or open centers for teaching yoga

and they can start selling their products at these locations itself. According to a report, about

37 million individuals in the U.S. practice yoga. This is up from 20 million three years ago,

meaning that in just a few years, yoga has almost doubled. It also means it's practiced by

about one out of ten individuals, which is pretty amazing, twenty years ago, not many of

them would have thought it would be so big this quickly. 72 percent of practitioners are

women and 28 percent are men, a recent study finds.

5. Using franchise model distribution network:

Patanjali can adopt the franchise model distribution network and open its own stores in USA.

Aa far as location is concerned, they should concentrate their stores in those areas that is

more population of people who perform yoga and Indians as well.

4. PRODUCT(S)

We are focusing on the product line of Healthcare and Medicine with the launch of Patanjali

Coronil.

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Reason: Patanjali healthcare and medicine products especially Coronil is based on Ayurveda

and have many medicinal applications for skin, hair, digestion, oral treatment, weight loss,

and more.

Benefits: Help people to boosts their immune system during corona pandemics. These

products also help in take care of human health from sickness, blood pressure, cholesterol,

etc. and reduces stress.

CONCLUSION

COVID-19 is a health and economic crisis that affects consumer perceptions, behaviours, and

shopping habits in a sustainable way. Although many individuals shifted to Patanjali products

because of Baba Ramdev, when they realised how fine and cheap Patanjali products are a

pool of Indians began following him. The same approach can be used to attract the US

citizens as well. Baba Ramdev seized the opportunity in his hands and began to influence

Indians by sharing price gap data and how beneficial herbal Patanjali products are. With both

hands, Baba Ramdev discarded the chance and made a major difference to the branding of

Patanjali Ayurveda. Now via e-commerce, Patanjali is also selling goods online, growing

their penetration even further. Both India and USA are very large FMCG markets, which are

prevalent in both markets and can also help Patanjali expand. Hence, Patanjali should try

expanding to USA as well, as there is no other alternative at present in this pandemic.

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