IBS Hyderabad

Academic Year – 2020-22

MARKETING MANAGEMENT 1
Semester 1
Course Faculty: Dr.Dwarakanath Sirguppi
Group Project: Product strategy of PATANJALI

Student Name (Registration Number) Brand Selected

Aakash PATANJALI
Hansa
Sindhu
Sonalika
Srivatsan
Sumit

Learning Outcomes from this Group Project Task: Rise of Patanjali: To analyze the strategy
followed by Patanjali, it’s feasibility if followed by other business houses and impact on global
FMCG companies

Declaration:
We declare that this assignment is our work and we have not copied it from any other student’s work or
from any other source except where due acknowledgement is made.

For Course Instructor’s use only:

Marks Obtained: Max. Marks: …………………………

Comments (For Instructor’s use only)

General Observations Suggestions for Improvement
 EXECUTIVE SUMMARY

Patanjali, founded in 2007 by Baba Ramdev and his aide Swami Acharya Balakrishan has grown

into a 5000 crore company in 2015. It has disrupted the entire FMCG market with its
unconventional growth story. The credit goes to Baba Ramdev who has very meticulously
decided the timeline for each action and delivered unprecedented success. Patanjali’s vision is
to provide herbal/ayurvedic/natural solutions to all the problems and in this pursuit it is also

elevating the livelihoods of local farmers. It has leveraged the emotional route by bringing in
the ‘Swadeshi’ angle to market its products. The drivers for Patanjali purchase are lower price
points which induces sampling and when they find no noticeable difference with the pricey
brands, they tend to stick to Patanjali. The key differentiators for Patanjali are its herbal or
ayurvedic offerings and the free consultation it provides to the customers at Arogya Kendras/
Chikitsalayas through its certified Ayurvedic doctors. Besides it has also increased its
distribution channels through franchise stores, retail chains and kirana stores. However the
supply is not proportional to demand and a lot of customers are not able to find the desired
products. To solve this, they have invested in food parks and have outsourced manufacturing to
other SMEs while conducting stringent checks to ensure consistent quality. The strategy
followed by Patanjali is unconventional in that they have not made any significant investment in
marketing and promotion and have relied on word of mouth publicity. Baba Ramdev has done
minimal promotion by endorsing the brand in his yoga sessions televised on national channels.
The FMCG giants cannot rely on such a strategy because they cannot sell the products at such
low prices or provide free doctor consultations and other activities on a continuous basis. Thus
it is not feasible for other companies to follow this model.
 CONTENTS

Sr No. Particulars Page No.

1. Acknowledgement 4-7

2. Abstract 8-9

3. 1. .Introduction 12
2.1 Company Profile
2.3 About Patanjali Ayurved
2.4 Vision and Mission of Patanjali
2.5 Product line of Patanjali
2.6 Marketing Mix of Patanjali
2.7 USP of Patanjali
2.8 SWOT Analysis
2.9 Patanjali key to success

4. 3.Competition from Patanjali prompts FMCG’s 13-16

5. References 20
 ACKNOWLEDGEMENT
With immense pleasure, we would like to present this project report on Marketing of Patanjali Ayurveda
Ltd. We take the opportunity to express our gratitude to all of them who in some or the other way helped
us to accomplish this project. The study cannot be completed without their guidance, assistance,
inspiration and cooperation.

We would like to thank with a deep sense of gratitude to Dr.Dwarakanath Sirguppi sir to shape our
understanding towards the project. & it was because of his immense help and support that this project has
been duly completed.

However, we accept the sole responsibility for any possible error and would be extremely grateful to the
readers of this project if they bring such mistakes to our notice.
 ABSTRACT

The topic for research is PATANJALI & ITS COMPETITORS - A COMPARATIVE STUDY.
The main objective of this project was to study the Marketing Strategy of PATANJALI, the
effectiveness of using “AYURVEDA’’ and ‘’SWADESHI’’ as Unique Selling Proposition by
PATANJALI. The project covers the aspects like patanjali got success in such a competitive
market in a very short span of time. And how PATANJALI is proposition (USP) of Patanjali
Ayurveda. Becoming a tough competitor in the market for the MNCs and the Indian companies.
Patanjali is following the biggest “SWADESHI MOVEMENT”.

Patanjali’s vision and mission are discussed in the following project. And you will get to know
about the marketing mix of PATANJALI AYURVEDA and SWOT analysis followed by
Patanjali Ayurveda, and most important the unique selling price.

This report deals with Patanjali and its marketing strategy. It also focuses on marketing mix,
competitors, campaigns, advertisement strategy, and to top it all off, understand Patanjali with a
SWOT analysis.

2.INTRODUCTION

2.1 ABOUT THE COMPANY- PATANJALI AYURVEDA LTD

Patanjali Ayurved Limited is an Indian FMCG Company.It was established in 2006 by Acharya
Balkrishna and Baba Ramdev ,with a thought of rural and urban development and objective of
establishing science of Ayurveda in accordance and coordination with latest technology and
ancient wisdom. It all originated in 2002, when Baba Ramdev's mass yoga camps were broadcast
across the country on the country's main spiritual channels (which were the new trend at the
time). These camps, in addition to giving free yoga instruction to television viewers, helped to
establish Baba Ramdev as a well-known figure who can be trusted. Patanjali Ayurved came into
the FMCG market and flourished nearly instantly with the help of their brilliant marketing
strategy and brand positioning. Having catered to the old reliance of the country on ayurvedic
products and medicines, Patanjali marketed itself as pure and herbal and won over the Indian
hearts and minds.

Manufacturing units and headquarters are located in the industrial area of Haridvar while the
registered office is located in Delhi.Patanjali Ayurved imports herbs from the Himalayas of
Nepal. Patanjali has a manufacturing unit in Nepal, working under the brand name of Nepal
Gramodyog. It is India’s fastest growing FMCG company and is valued at 3000 Crore .Patanjali
food and flavour park at Haridwar is the main production facility operated by Patanjali Ayurveda
. Patanjali is indulged in all the sectors of FMCG . The products are famous because of their low
cost and good quality.

2.2 ABOUT PATANJALI AYURVEDA

Patanjali Ayurveda is a new approach to improve and accelerate the Herb mineral drug discovery
and development process. Patanjali Ayurveda has excellent expertise & facilities for
manufacturing & research- process development of Herb mineral preparations, Organic
synthesis, isolation and structure elucidation, Biological screening, toxicological testing and
pharmacokinetics. Patanjali-a brand set up by PATANJALI AYURVEDA LTD is backed by
robust preaching and promotion of World renowned Guru Swami Ramdevji and an international
authority on Ayurveda and Traditional Herbs. The company is set up with an objective to
provide superior quality of products at fair price and to get their customers rid off the chronic
diseases by providing products which are organic and natural. Patanjali Ayurved Limited
produces quality Herbomineral preparations. To monitor quality, the Divya Yog Mandir Trust
and Patanjali Yog Peeth grow many endangered herbs on its farmland. The principles of Good
Manufacturing Practices (GMP) are rigorously followed in the plant and Company prides itself
on being environment friendly.

The Company manufactures ayurvedic formulations, food supplements, personal care, and
medicines in the form of tablets, syrups, oils, and pastes. Patanjali Ayurved serves customers in
India.
They aim at valuing their consumers and believe by providing quality products a quality life for
them can be created. This is their primary apprehension and thus, they try to take every measure
to ensure quality like the Unique ID system to stop fake products.

They recognize farmers as 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. Our 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.

2.3 MISSION AND VISION STATEMENT OF PATANJALI

Patanjali’s mission focuses on “Making India an ideal place for the growth and development of
Ayurveda and a prototype for the rest of the world.”

While Patanjali’s Vision focuses on “Keeping Nationalism, Ayurveda and Yoga as our pillars,
and are committed to create a healthier society and country. To raise the pride and glory of the
world, we are geared up to serve people by bringing the blessings of nature into their lives. With
sheer dedication, scientific approach, astute planning and realism, we are poised to write a new
success story for the world.”

2.4 MARKETING MIX

1. Product - Baba Ramdev is continuously encouraging Indians to start buying Indian products
in order to help the company's economic success. Patanjali is planning to acquire all well-known
beverage and food companies.Some of the industries where Patanjali goods have previously
shown to be successful include:
● Jams, cookies, noodles, cereals, lentils, and a variety of other culinary goods are among
the products available.
● Beverages
● Medicines & Healthcare
● Personal care items
● Agents of cleaning

Products where Patanjali is present and beating

competition are:

❖ Dabur Honey: Patanjali Ayurveda is providing

people with the option to buy quality honey at
around 30% lesser price than Dabur.
❖ Patanjali Ayurveda is teaching about how
Colgate deceived people in the beginning. And
how Ayurveda is the most effective treatment for your gums and teeth.
 ❖ Patanjali Noodles: Patanjali Noodles grew to prominence when Maggie was absent from
the market, and it has wreaked havoc on Maggie, which was previously the king of the
noodle industry.

Starting at 2007 with a humble range of products, Patanjali had quickly diversified into a vast range of
offerings. around 800 products 13 including 250 medicinal products, 45 cosmetic products and 30 food
products. Broadly, the product category of Patanjali can be classified as follows: Ayurveda Medicinal
products, Organic natural juices, Groceries, Oral/ dental care, Hair care, Skin care.

It is interesting to analyze how Patanjali has rolled out its product portfolio and where it is heading
towards in the near future. It started its products with chawanprash, honey, organic natural juice and
Ayurveda medicinal products, which directly resonates with what Ayurveda stands for. But slowly it
started to copy the product portfolio of everything that a typical FMCG company should have. With the
launch of toothpaste, shampoo, beauty products, noodles etc., it surely is expanding to become one of the
FMCG power houses with a differential offering of Ayurvedic range by the sheer number of products in
each of the categories.

Product Strategy & Development

Unlike most of the typical FMCG company practices, Patanjali has never been into any formal
market research to find out what product should they come up with or what market they should
enter. Rather they believe in the strategy of making the products first and then taking it to the
market. Many a times, there has been instances where they entered into a new product category
which some other company has been doing it for years. Low price, purity and innovation are the
three main drivers of the product development strategy of Patanjali. A good example of this can
be of the Patanjali Amla Candy. Before it was launched, there were numerous amla products in
the market, hence the market can be said to be existing. But this particular amla product in the
form of candy was unheard of before, which is a truly innovative move from the company. As
for the low price and purity aspects, this product qualifies them too. The amla farmers were
facing loss at a point of time since the market was very small, though amla has many health
benefits. Ramdev took a risk and started promoting the health benefits of amla leveraging his
huge following. This promotion was shortly followed by the product launch of amla juice and
amla candy, which was a hit product in the market. Another example where Patanjali delivered
in the lines of purity can be the Desi Ghee. There has been always an inherent concern among
the consumers about the availability of pure ghee. This need of the customers did not require an
extensive market research to develop a product based on this line since Patanjali always worked
form the base of the pyramid

2. Price - Patanjali Ayurved is India's fastest growing FMCG firm due to two factors:
a) the use of natural ingredients and Ayurveda,
b) Patanjali Ayurveda's pricing is crucial in placing the company
ahead of its tough competition.
Hindustan Unilever and P&G are doing everything they can to keep
up with the competition, but the rising popularity of Indian products
isn't helping them. Patanjali uses price comparison as a marketing
tactic as well as teaching people about the benefits of utilizing their
goods. Patanjali's pricing approach is obviously penetrative, since it
recognises that increasing costs will not be enough to win the market. Furthermore, if the
ingredients are natural and domestic, the product's cost is lower. When compared to international
brands, nearly every product has a price reduction of 25-30%, allowing Patanjali to reach every
family in India.

3.Place - Patanjali Ayurved is India's fastest-growing FMCG company, but that hasn't stopped it
from expanding into neighbouring Nepal. In Nepal,
Patanjali operates a manufacturing facility. Patanjali also
buys plants from Nepal's Himalayas, and the well-
established commercial relationship is allowing Patanjali to
develop rapidly in Nepal.
Baba Ramdev would undoubtedly seek to dominate the
market in a number of other nations as his popularity grows
in India and Nepal. Patanjali will undoubtedly have enough
funds for development and growth, thanks to its excellent income of 5000 crores. Thousands of
businesses in India now carry Patanjali goods, and these outlets sell Patanjali solely, causing
local retailers to tremble. The product's margins are also high, thus penetration levels will only
increase.

Promotion -The slogan of Patanjali Ayurved is "Prakriti ka Ashirwad." Because of the

worldwide known Yoga Guru, Baba Ramdev, Patanjali
Ayurved has gained the necessary reputation and popularity
among the general public. Patanjali's brand ambassador is
single-handedly accountable for the company's success. People
felt connected with him when he established his own Indian
FMCG company because of his tremendous impact on people's
lives via Yoga. Baba Ramdev seized the opportunity and
began influencing Indians by disseminating information about
the price disparity and the efficacy of herbal Patanjali goods. Baba Ramdev has grasped the
chance with both hands and created a significant change in Patanjali Ayurveda's branding.
Patanjali is now offering its goods online through E-commerce, significantly expanding their
reach.Only time will tell how people throughout the world react to Patanjali goods as a
replacement for Hindustan Unilever and P&G products.
Patanjali has placed significant premium on product advertising in order to increase sales.
Patanjali's marketing mix includes print, television, online adverts, billboards, and other media
channels for promotion and branding. Yoga guru Ramdev Baba is Patanjali's brand ambassador,
and his massive fan base has helped the company catapult into the big league in a short period of
time.
Patanjali's marketing have been forceful, emphasising the necessity of employing natural and
ayurvedic manufacturing.Baba Ramdev is in full control of Patanjali. The goods were first
promoted and sold during yoga camps, the camps were attended by 18 crore people close to one
sixth of the total Indian population. People decided that the Baba was not in it for the money
since the yoga lessons were free (this trick always works). The Idea that paved the way for the
success of patanjali. people were inclined to buy the product and were also willing to pay as
much as it costs, in fact the higher the price higher the demand.

Pull Marketing with Umbrella Branding

PAL used a unique mix of marketing capabilities. It adopted non-conventional ways of launching
products into the market.

PAL followed three philosophies when it introduced any product in the market. These
included Swadeshi (manufactured in India) products, Ayurvedic products (Herbal) (no chemicals,
preservatives, etc.) and products with value proposition around wellness and nutrition. This approach was
entirely different as compared to competitive brands. PAL leveraged this philosophy to win the trust of
customers. Baba Ramdev highlighting the all-Swadeshi philosophy mentioned:Unlike big business groups,
my advertising work is handled by Vermillion, an Indian advertising agency. In all its advertisements, PAL
consistently highlighted its herbal (non-chemical) content. PAL claimed that the company’s products
were superior in terms of wellness aspects compared to all other similar products available in the market
from competing brands.
2.6 Product line of Patanjali-

Product Line length analysis:- A product line is a group of related products all
marketed under a single brand name that is sold by the same company. Companies sell
multiple product lines under their various brand names, seeking to distinguish them from
each other for better usability for consumers.

Different categories of Patanjali’s product line

1. Natural Health Care:

 Digestives:Patanjali pachak contain ajwain, hing, fenugreek, and properties of

lemon, which give us a healthy digestive system. Patanjali pachak (digestive)
hing goli is made by blending with rich natural and organic herbs along with
spices in the right proportion. Cure the problems like gas, acidity, constipation,
etc. Now, eat with open heart and digest with patanjali pachak hing goli.        

 Chyawanprash:Patanjali chyawanprabha is a scientifically formulated herbal

product with no added sugar having more than 40 herbs. To understand the
prevalence of diabetes in India. Patanjali chyawanprabha is prepared with
approved artificial sweeteners, which does not rapidly affect the blood glucose
level after consuming the product. This product is tasty and good for pre-diabetic.

 Ghee: Patanjali Cow Ghee is full of nutritive properties and an ideal diet. Cow
ghee increases memory, intellect, the power of digestion, Ojas, Kapha and fat.
Regular consumption of ghee or inclusion of ghee as part of the diet, is
recommended for those seeking weight gain.

2.Natural Food Products :

 Murabba- Patanjali Amla Murabba is made including the contribution of sweet

of Amla. It is also a rich source of vitamin C. Patanjali Amla Murabba has been
blended with ingredients like Amla (Indian Gooseberry) and sugar. They are
absolutely amazing and good to get the clutch of our taste. The benefits of in
taking Amla Murabba is good for curing many diseases.
 Dalia, poha and Vermicelli-Patanjali Barley Dalia is a highly nutritious
breakfast cereal made from barley. It also aids in weight loss and contains essential
fiber. As a healthy breakfast or evening snack. Patanjali Barley Dalia is best for the
health.  Barley dalia is an astonishing breakfast meal and is packed with dietary fiber,
proteins, minerals and vitamins for an energetic and healthy metabolism.

 Dal Pulses-Patanjali Unpolished Chana Dal is highly nutritious and provides a

great source of protein. Patanjali Unpolished Chana dal is tastier when compared to
their polished counterparts as the natural taste, flavor and nutrients are intact. also,
you are reducing the health risk as it does not contain harmful polishing agents.

3.Ayurvedic Medicine

 Kwath-Divya Giloy Kwath brings to you the goodness of giloy which has very
effective and multifarious medicinal properties. Giloy cures fevers from viral
infections (dengue, chikungunya, etc.) and helps you recover holistically. Giloy
cures cold and weakness due to low platelet count. It detoxifies your system and
gives you glowing skin. Giloy also boosts your immunity and keeps diseases at bay.

 Packages for Diseases - Covid-19 Immunity Booster Kit: Tested & Verified
medicine from PATANJALI Research Institute.

 Asava-Patanjali Lohasava is an Ayurvedic medicine for Anemia. It contains naturally

processed Iron. Lohasava contains 4 – 10 % of self generated alcohol in it which acts as
a media to deliver water and alcohol soluble the active herbal components to the body.
 Oil -Peedantak oil is very useful in relieving the joint pains, back pain, knee pain,
cervical spondylitis, slip disc, wounds, all kinds of pains, inflammation and pain etc.
Muscles gain more strength and power if the joints are massaged with this oil. And
moreover, the process of bone formation is well-balanced; hence peedantak oil is highly
beneficial, mainly in arthritis, osteoporosis, rheumatoid and gout etc. 

4. Health Homecare products :

 Agarbatti and Dhoops-Aastha pooja products are made from best quality

ingredients & aimed at creating a divine atmosphere. It is considered the natural
fragrance and the ayurvedic herbs has a great significance in controlling diseases
and purifies the environment. Hence this dhoop is made with natural herbs. It
helps to stablish the connection between Aatma (inner soul) & Parmatma (almighty god)
intact.  

 Toiletries-Patanjali Germi X Floor Cleaner is a hypochlorite free disinfectant. A

unique formulation which kills 99.9 % germs, removes stains & leaves a pleasant
fragrance. Safe to use on all type of surfaces like ceramic, marble, granite & mosaic.

 Dishwash Bar and Gel-Lemon combined with wood ash naturally acts as a
superior cleansing and disinfecting agent. It's an organic product and made of
non-toxic and natural ingredients. This soap doesn't contain any artificial
additives like colors, fragrances, enzymes, bleaches or harmful chemicals. Ideal
for all types of dishes including ceramic and non-stick ware.  
5.Natural Personal Care:

 Skin Care-Patanjali saundarya aloevera gel is an instant solution for pimples, wrinkles &
glowing fair skin. The primary ingredient in this gel is aloevera, which has been proven
to possess strong healing properties. It can soothe the damaged skin and enhance its
repair process. It is used for treating several skin ailments including acne, burns, wounds
& sun damage.

 Hair Care-Patanjali Kesh Kanti Silk & Shine Hair cleanser removes dryness, softens
rough hair & provide hair shine with natural herbs such as sesame oil, amla, honey and
bhringraj. It softens & detangles hair, cleanse the hair and scalp of oiliness, grime &
environmental toxins.

 Body Care-This body cleanser is loaded with goodness of bio actives of precious
herbs, which treat skin disorder & improve skin glow.

6.Nutrela Nutrition:
 Patanjali Nutrela Kid’s Superfood is a scientifically designed advanced formula as per ICMR
guidelines for every growing kid for 4-12 yrs in delicious chocolate flavor . An ideal blend
of milk protein & vitamins with botanical extracts. It is 100% vegetarian, GMO free,
gluten free, no artificial color, preservative free and trans fat free. A balanced nutrition for
active growth with essential amino acids.

7. Samridhi Card:

 Patanjali Swadeshi Samriddhi card provides-

1. The cardholder or card holder's nominee will get upto Rs. 5.00 Lacs in case of death or up to
Rs. 2.5Lacs in case of permanent disability due to accident subject to terms and condition of the
Scheme.

2. Swadeshi Nishtha Sahyog will be provided only if the cardholder has purchased a
minimum of Rs. 6000/- in last 180 days from the date of the accident.
3. Cardholder Military/Paramilitary and Police personnel died during any terrorism incidence
will also be covered in the definition of an accident for the purpose of financial assistance under
the scheme.

4. For activation of the card, the user has to visit the nearest Patanjali Mega Store, Arogya
Kendra or Patanjali Chikitsalye to activate the card.

5. Patanjali will announce about the particular date for the disbursement of financial assistance
on his official website on the Quarterly/Half yearly basis.

2.7 UNIQUE SELLING PROPOSITION (USP)

BABA RAMDEV’S dream is to build a Disease Free Society- World free from medicines. Proper
breathing techniques can cure all diseases completely without any medical help. Researchers shows that
this is the outcome of pranayama yoga. There are around 35,000 well trained people who hold yoga
classes in different regions of the country.

Patanjali Yogapeeth has set up 540 branches and 15 more centres are in the process of being established.
This fulfill the requirements of all the customers as they believe that their responsibility is to make people
feel healthy.

2.8 Swot Analysis

Strengths

● Innovative & Harmless Products – Being Natural, Patanjali’s products are mostly
harmless, thus generating more demand for them. Also, they have a history of creating
innovative products to fulfil customer needs.
● Strong Distribution Network – Patanjali has a large distribution network in the country,
covering not just the Urban, but also the rural areas of the nation, helping them cater to a
larger group of people.
● Image Of Trust – Owing to the social image of Baba Ramdev & Acharya Balkrishna,
Patanjali has a solid image of trust in the eyes of its consumers. This image goes a long
way in profiting the company to serve people better.
● Social Responsibility – From free Chikitsalayas to Hospitals & other social works that
Baba Ramdev & Acharya Balkrishna have been doing over the years, helps create a
better image of Patanjali in the eyes of its consumers, further helping them do better.
● Initiatives such as Make in India and Swadeshi – The firm has long advocated for the
use of Desi goods. This has been a big element of their marketing plan, and it's worked
out well for them. The frosting on the cake has been their lower-cost products, which
have bolstered these programmes even more.

Weaknesses
 Reliance on Baba Ramdev – The company relies heavily On Baba Ramdev himself. The man is not only
a business magnate but also a public figure. The spiritual guru has been in and out of a lot of
controversies. Recently, Baba Ramdev had to apologize to the people of Assam for the harsh and
insensitive comments made by a Patanjali official. Satinath Barale, a yoga instructor and Patanjali
employee made outrageous comments about Vaishnava saint Srimanta Shankardev at a yoga camp. The
aftermath of the event saw massive public outcry. The backlash became so severe that Baba Ramdev
himself had to issue an apology. Incidents like this can tarnish the image of the brand.
 Current Pricing Strategy – Patanjali needs to revise its current pricing strategy or else the company will
fail to sustain itself. The current pricing strategy gives low-profit margins which are necessary for
Patanjali’s survival. The company will have to deal with high labor, and raw materials cost if it doesn’t
change its pricing strategy.
 Excessive Product Offerings – Patanjali has way too many products in its portfolio. Some of these are
profitable while others fail to generate any profit. Despite having such a diverse product portfolio only  5
or 6 products like shampoo and toothpaste generate high revenues. The company needs to discontinue
low profit products or solidify them so they can generate substantial profits.
 Lower Margins for Distributors – Patanjali’s core focus is on volume and not on margins. It offers
lower margins to distributors as opposed to other companies that deal in consumer goods. For this reason,
the company is a demand run company.
 Limited presence in International Market – Patanjali is a brand that has an International appeal thanks
to its exotic outlook. However, it has mainly restricted itself in the Indian market. Baba Ramdev has an
international audience, and he can provide an incentive in regions where his strongest demographic base
is located like Nepal. Additionally, the company needs to target the younger Indian demographic that is
internet savvy and technologically advanced.

Opportunities
● In inclination to Herbal and Natural- People are relying more on natural and herbal
goods these days due to the safety of the items. This offers up a lot of possibilities for
Patanjali to explore.
● Untapped Market- Patanjali still has a lot of unexplored markets to grab, despite the fact
that it distributes to a big portion of India. This mostly refers to rural and domestic
markets in Southern and Eastern India.
● Changing Ways of Life – People today's hectic lifestyles force them to work harder at
staying healthy, and there's no better way to do it than with natural goods. And Patanjali
may take use of this to expand much further.
 ● Export Potential — Baba Ramdev is well-known outside of India, and Patanjali may
leverage this to grow their foreign market by exporting additional goods over time. This
will allow them to investigate additional undiscovered revenue streams.

Threats
● Product in controversy- The fact that some Patanjali products have been the subject of
controversy may cause people to be suspicious. This has the potential to detract from the
company's original positive image.
● Increase in Competition – Big companies like Marco, HUL, and Dabur already give Patanjali
tough competition. Newer entrants in the market like Sri Ayurveda are also increasing the
competition for Patanjali.
● Negative publicity – The company faced a major crisis when the Nepal Department of Drug
Administration issued a public notice to Patanjali stating that they had found some of its medical
products to be of “sub-standard quality.” The products had failed their microbial tests which were
used to detect mold, bacteria, and other toxins. This crisis resulted in negative word of mouth that
damaged the company’s reputation.

PATANJALI KEY TO SUCCESS

1. Less Price:

Patanjali products are available at cheaper prices compared to their competition. The company
sources products directly from farmers and cuts the middlemen cost to increase the profits.
Hence, they are able to reduce their raw material procurement cost and produces goods at a much
cheaper cost.

2. Strong Distribution Channels:

Patanjali products are sold through different mediums. These include Patanjali Chikitsalayas which
are basically clinics. Then there are Patanjali Arogya Kendra’s which are health and wellness centres.
They also have non-medicine mediums called Swadeshi Kendra’s.

3. Strong Brand Association with Health Because Of Baba Ramdev:

People are re-buying patanjali products frequently and getting attracting towards the brand.
Because of the association of Baba Ramdev patanjali is able to create the brand perception of
health and wellness among Indians.

4. Simple Packaging Gives It A Natural Look:

Patanjali follows the strategy of simple packaging. Many feels that it is not a good strategy but it
has worked for patanjali. For the brand like Patanjali, where the message is to
promote‘Ayurveda’ and ‘Health’, simple packaging can be a very productive way of promotion.

With a natural look consumers get a feeling of health and wellness and they are attracted towards
the brand.

5. Promotion through Media:

Baba Ramdev is considered as the guru of yoga across the world. He has maintained a good
relationship with media and press by being co-operative with them. Also, he has also maintained
good connections with many politicians. So he used both the facts to publicize his company free
of cost.

6. Word-Of-Mouth Promotion:

Advertising and promotions typically account for 12-25% of revenue expenditure by consumer
goods companies. When a new company gets into the business, this spending is significantly
higher. During the initial stage, Patanjali followed a unique strategy of word of mouth publicity
model and the entire profit was without any advertising. It was because of the brand loyalty of its
customers that the word-of-mouth promotion proved so successful for the company.

Growth at Patanjali Ayurved Limited - PAL had built one of the world’s largest
food parks near Haridwar. It had tied up with various organizations for the supply of finished products
and raw material. PAL collaborated with Future Group and Reliance Fresh (modern retail chain) for
deeper penetration and availability of its products. The company had a distribution network of more than
4,000 distributors, 10,000 exclusive stores and 100 mega-marts. Due to increased customer demand,
leading stores like Spencer’s Retail, Big Bazaar, Reliance Fresh, HyperCity, SRS Retail and a large
number of Kirana (mom and pop) stores were stocking and selling PAL products. The company also sold
products through its own e-commerce .