A Study on

Patanjali Ayurved Limited

A Summer Internship Project Report Submitted to
Koneru Lakshamaiah Education Foundation (Deemed to be University) partial
fulfillment of the requirements for the award of the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by
MAMIDI AJAY KUMAR
(Reg. No: 22923020719)

Under the Guidance of

Dr. Durgaprasad Navulla
Assistant Professor
KL Business School

Department of KL CDOE Online BBA

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 ACKNOWLEDGMENT

I take this opportunity to acknowledge, all the people who rendered their valuable advice in bringing the
Mini Project to function.

As a part of the curriculum at KONERU LAKSHMAIAH EDUCATION FOUNDATION (DEEMED

TO BE UNIVERSITY) the Summer Internship Project enables us to enhance our skills, expand our
knowledge base.

I express my sincere thanks to DR. G. PARDHA SARADHI VARMA, VICE- CHANCELLOR,

KONERU LAKSHMAIAH EDUCATION FOUNDATION(DEEMED TO BE UNIVERSITY) for
giving me an opportunity to undertake this Summer Internship Project work.

I express my gratitude to DR. K. SHANATH KUMAR, DIRECTOR, KONERU LAKSHAMAIAH

CENTRE FOR DISTANCE AND ONLINE EDUCATION, for his valuable support in pursuing my
Summer Internship Project work.

I owe a deep sense of gratitude to Dr. Durgaprasad Navulla, Programme Co-ordinator, KL

CDOE(Centre for Distance and Online Education) Online BBA, and my guide (Dr. Durgaprasad
Navulla), for her cooperation at each and every stage of my work and for his patience and immense
support in completing this Summer Internship Project.

Finally, I wish to express my thanks to all the faculty of CDOE for their valuable suggestions in bringing
out my project in most successful manner.

MAMIDI AJAY KUMAR

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Table of Contents

S No Topic Page No
1 Certificate 3
2 Acknowledgements 4
3 Executive Summary 6
4 Chapter-1: Introduction 9
5 Chapter-2: Conceptual Discussion 21
6 Chapter-3: Research Methodology 28
7 Chapter-4: Data Analysis 30
8 Chapter-5: Finding and Conclusions 38
9 Chapter-6: Conclusion 42
9 Bibliography 44
10 Appendices

 Tables and Graph (If Any)

 Analytical Master Charts (If Any)

 Financial Statements (If Any)

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CHAPTER 1: INTRODUCTION
 OVERVIEW OF PATANJALI

 PROFILE OF THE ORGANISATION

 PROBLEMS OF PATANJALI

 COMPETITION INFORMATION

 SWOT ANALYSIS

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OVERVIEW OF PATANJALI

Patanjali Ayurved Limited is an Indian FMCG company. Manufacturing units and

headquarters are located in the industrial area of Haridwar while the registered office
is located at Delhi. The company manufactures mineral and herbal products. It has
also manufacturing units in Nepal under the trademark Nepal Gramudhyog and
imports majority of herbs in India from Himalayas of Nepal. According
to CLSA and HSBC, Patanjali is the fastest growing FMCG company in India. It
is valued at ₹3,000 crore(US$450 million) and some predict revenues of ₹5,000
crore (US$740 million) for the fiscal 2015–16. Ramdev baba has stated in his
interview with CNN-News18 that profit from Patanjali Products goes to charity.

Baba Ramdev established the Patanjali Ayurved Limited in 2006 along with Acharya
Balkrishna with the objective of establishing science of Ayurveda in accordance and
coordinating with the latest technology and ancient wisdom. Future Group which has
tied up with Patanjali sells about ₹30 crore (US$4.5 million) worth of Patanjali
products every month.

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PRODUCTION

Patanjali Food and Herbal Park at Haridwar is the main production facility operated
by Patanjali Ayurved.The company plans to establish further units in India and
in Nepal.

In 2016, the Patanjali Food and Herbal Park was given a full-time security cover of 35
armed Central Industrial Security Force (CISF) commandos.The park will be the
eighth private institute in India to be guarded by CISF paramilitary forces. Baba
Ramdev is himself a "Z" category protectee of central paramilitary forces.

PRODUCTS

Patanjali Ayurved produces products in the categories of personal care and food. The
company manufactures 444 products including 45 types of cosmetic products and 30
types of food products. According to Patanjali, all the products manufactured by
Patanjali are made from Ayurveda and natural components. Patanajali has also
launched beauty and baby products. Patanjali Ayurvedic manufacturing division has
over 300 medicines for treating a range of ailments and body conditions, from
common cold to chronic paralysis.

Patanajali launched instant noodles on 15 November 2015. Food Safety and Standards
Authority of India slapped a notice on the company as neither Patanjali nor Aayush,
which are the two brand names under which Patanjali got licenses, have got any
approval for manufacturing instant noodles.

SALES AND DISTRIBUTION

Patanjali Ayurved sells through nearly 4,700 retail outlets as of May 2016. Patanjali
also sells its products online and is planning to open outlets at railway stations and
airports. Patanjali Ayurveda has tied up with Pittie Group and Kishore Biyani's Future
Group on 9 October 2015. As per the tie-up with Future Group, all the consumer

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products of Patanjali will be available for the direct sale in Future
Group outlets. Patanjali Ayurveda products are also available in modern trade
stores including Reliance retail, Hyper city and Star Bazaar apart from online
channels. Patanjali Ayurved, co-founded by yoga guru Ramdev, is targeting
Rs 10,000-crore revenue in 2016-17, after sales grew 150 per cent in the
previous financial year to Rs 5,000 crore.

Patanjali Ayurved, maker of ayurvedic consumer products, is the fastest growing

consumer company in India. Yes, you heard it right. Credit Lyonnais Securities, a
foreign stockbroking company, has put out a report wishing for the company
promoted by Baba Ramdev, the yoga guru, to be listed on the stock market.

PROFILE OF THE ORGANISATION

Estd. Date 27 September2007

Company Patanjali Ayurveda Kendra Pvt.Ltd.
Promoters Mr. Babukaji Shrestha, President
Mr. Raju Shrestha, Managing Director
Mr. Pawman Subedi, Director

Type of Sole Distributor of Ayurvedic Product of Divya Pharmacy , Divya Yog

Business Sadhana, Divya Prakashan & Patanjali Ayurveda Ltd., Haridwar, India

Head Patanjali Ayurveda Kendra Pvt.Ltd

Office
Swotantramargh,Swoyambhu
Chakrapath, Kathmandu,Nepal
Tel: +977-1-4674666 / 4674777
Fax No.: +977-1-4033557

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 Email: patanjali@wlink.com.np / Patanjali@mail.com.np
www.patanjaliayurveda.com

Branch Patanjali Ayurveda Kendra Pvt.Ltd

Office
Millan Chowk, Butwal -11,
Rupandehi Nepal
Tel: +977-71-544714
Fax No.: +977-71-544715
Email: patanjali.b@wlink.com.np

Patanjali Ayurveda Kendra Pvt.Ltd

Patanjali Yog Peeth
Building, Waling -3,
Syangja,Nepal
Tel: +977-63-440601
Fax No.: +977-63-440601
Email: walingpatanjali@hotmail.com

Number of employees
Kathmandu 25 Nos.
Office
Butawal 7 Nos.
Office
Suppliers Divya Pharmacy , Haridwar,India
Divya Yog Sadhana, Haridwar,India
Divya Prakashan, Haridwar, India
Patanjali Ayurveda Ltd., Haridwar,India

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Govt. Company Registrar Office Tripureshower
Register on 2063.08.15 BS. Reg No. 42691.

Tax office on 2063.08.25 BS.

PAN/VAT No. 302445329.

Department Of Drug Administration

on 2063.10.19 BS. Reg No. 17243.
Department Of Ayurvedic Administration
on 2065.01.30 BS. Reg.No. 1789.

STORES

We all know that Baba Ramdev Ayurvedic products has got tremendous response
from the people and it had stood up to the people's expectation in both quality wise
and cost wise. Patanjali ayurvedic products which we used to get only in Patanjali
Ayurvedic stores located in rare cities few months ago got available into every town
today. Today you can buy Baba Ramdev Patanjali products in Big Bazaar too. You
can get them from many sources like Divya Patanjali Ayurvedic Stores, Average
super markets, Big Bazaar and from many other. People can also order Patanjali
products & medicines through online from almost all major eCommerce websites
along with official Patanjali Ayurveda online store.

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FIGURE 1.2

MISSION STATEMENT

1) TO REACH THE GREAT HEIGHTS

2) TO RESTART THE SWADESHI MOVEMENT

3) TO PRODUCE GOOD QUALITY PRODUCTS AT CHEAPER RATES

4) TO INTRODUCE INDIAN AYURVEDA TO THIS MODERN WORLD

5) TO CRACK THE MAXIMUM MARKET SHARE

VISION STATEMENT

1) TO BE A TOP AYURVEDA COMPANY AMONG ALL MNC’s

2) TO RE-INTRODUCE THE INDIAN AYURVEDA

3) TO CRACK THE WORLD’S ATTRACTION TO OUR INDIA

4) TO WORK FOR THE WELFARE OF HUMANIT

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PROBLEMS FACED BY PATANJALI

 Maintaining quality and brand promise – The key to buying any Patanjali
product is quality and purity (possibly, that’s why its cow milk ghee’s sales forms
~50% of its revenues). This stands as a core brand promise. Consumers associate
Patanjali with these attributes. Without a consistent adherence to quality standards
across all its product categories, Patanjali cannot shake the boardrooms of FMCG
giants. Quality becomes even more important as the company starts relying on
contract manufacturers for newer and “inconsistent” product categories. You just
can’t open an apparel and shoes manufacturing plant overnight, if you are running a
food and medicine plant!
 An ever expanding product portfolio with brand extensions – Few brands,
such as Virgin Group, have done a tremendous job at brand extensions, though with
failures in many categories. Considering Patanjali has forayed into categories (such as
shoes, apparels, home cleaning solutions, etc.) that are not directly linked with
ayurveda or purity or goodness, ensuring their loyal consumers do not get confused
with what it wants to do with the brand and how far it wants to stretch, could be a
challenge in the longer run.
 Absence of a key sub-branded range under Patanjali “Umbrella” -
Further, most of its products are branded under “Patanjali” umbrella and are then
linked with generic names such as Patanjali Atta Noodles, Patanjali ghee, Patanjali
Cornflakes. Their communication largely focuses around the name “Patanjali” and
not around any sub-brand. This could affect sales of their key categories, if
inconsistent product categories do not perform well. It can also confuse consumers if
Patanjali want to increase “product depth” and launch variants with minute
differences. Parle, a biscuit and snacks company, first nurtured its hide and seek range
to a “brand” and then

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launched newer “related” biscuit categories within Parle’s Hide and Seek range.
Patanjali can do something on similar lines.
 Image driven branding – Consumers don't just buy products to suit their
needs, instead they buy a solution that offers them value with “trust”. “Patanjali” is
largely co-branded/co-promoted with Baba Ramdev and his companion Acharya
Balkrishna. Any questions arising on their integrity will surely affect the brand’s
performance.
In my opinion, Patanjali should focus on fewer product categories that are linked
and consistent. They should also focus on creating sub-brands for newer product
lines with a solid brand architecture to offset any future risks associated with umbrella
brand “Patanjali”. This will help them create an even greater product depth and appeal
to different consumer segments. Moreover, a consumer who uses cow urine-based
“Patanjali Shuddhi” for home floor cleaning is less likely to buy “Patanjali Ghee”. So
you Patanjali folks, better use market analytical skills to market Ghee and Shudhi
together. Having said that, they should also, at least slowly, move away from a being
a “Baba image-driven” company, in case they wish to stay relevant and longer in the
Indian market.

COMPETITORS INFORMATION

Yoga guru Baba Ramdev has begun his five-day meditation and yoga camp at the
MMRDA Grounds at Bandra in Mumbai. Open to anyone, preparation for this began
days before with volunteers distributing pamphlets in all adjoining areas.

In camps such as these, Ramdev is known to push products from Patanjali Ayurved,
co-founded by him and Acharya Balkrishna. This camp has been no exception. Yoga
sessions are interspersed with talks on healthy living and how Patanjali has a solution
to every problem.

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Watching Ramdev's moves are rival consumer goods companies. The Rs 2,000-crore
Patanjali, looking to grow its turnover two-and-a-half times in FY16, is striking at the
heart of their business, making its presence felt across categories.

The stiff competition has prompted most of the fast-moving consumer goods (FMCG)
companies to hit back. Consider what the country's largest FMCG company
Hindustan Unilever (HUL) is doing: It has 'resurrected' its herbal brand Ayush,
launching it online. A bunch of new products across haircare, skin care and pain
balms have been launched on e-commerce platforms under Lever Ayush Therapy.
The plan is to take the brand to general trade in the future. The firm is also expected to
increase its 'natural' offerings, moving into newer categories such as health foods, oral
care, lip care etc.

HUL's managing director and chief executive Sanjiv Mehta says, "What we find is
that consumers' interest in natural/ayuvedic products is growing. It is one of the
emerging trends now. As a consumer goods company, we have to respond to this,
which is why Ayush, which existed in our portfolio, has now staged a comeback. We
also acquired Indulekha to grow our presence in the value-added hair oil segment. We
will continue to make investments in this area."

Companies that have been directly affected by Patanjali such as Dabur, Emami and
Himalaya - all three operate in the herbal/naturals space - say they will buttress their
portfolios, making their products relevant to consumers.

Harsh Agarwal, director of Emami, says he is open to acquisitions to strengthen his

firm's position in the herbal space. "Ayurveda has been around for a long time. I don't
see this as a new trend. But, the emergence of new players is happening right now.
We welcome them and will continue to fortify our range with new variants, launches
and acquisitions."

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Emami had acquired hair oil brand Kesh King last year and was also in the race to
acquire Indulekha before opting out. Agarwal says he is looking at new targets, some
of them located in the south.

Industry source say herbal and non-herbal companies are now going back to the
drawing board, looking at how they can incorporate natural ingredients when
developing new products.

Godrej Consumer, for instance, has launched a neem-based mosquito coil; a creme
hair colour that has coconut oil; and launched new variants under Godrej No 1, its
naturals platform in soaps. Sunil Kataria, business head (India and Saarc region) at
Godrej Consumer, says, "Our endeavour will be to fortify these products as we come
up with new innovations in other categories."

Colgate, whose volume growth has taken a hit on account of Patanjali's Dant Kanti
toothpaste, according to brokerage firm Credit Suisse, is aggressively advertising its
active salt neem toothpaste, launched a few months ago.

This toothpaste, a variant of Colgate's Active Salt toothpaste, was made in India to
address the herbal revolution, according to industry sources. Colgate is expected to
come up with more such offerings as Patanjali's threatens to eat into its business.

Dabur, on the other hand, is introducing new Ayurvedic products targeting men,
women, and children. Existing products such as Dabur Honey and Chawanprash are
being pushed aggressively in the marketplace as Patanjali positions itself as a price
warrior in these categories.

Himalaya - another herbal products company - recently launched its range of

wellness products which aim to provide therapeutic solutions to consumers. Products
ranging from anti-hairfall creams to pills for staying slim are part of this new
initiative.

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PREPARING TO PUT UP A FIGHT

 HUL
Company "resurrects" herbal brand, Ayush, launching it online. Plans to
increase "natural" offerings

 Emami
Firm open to acquisitions for strengthening the company's position in the
herbal space

 Godrej Consumer
Launches neem mosquito coil, a creme hair colour that has coconut oil, new
variants in naturals soaps

 Colgate
Firm aggressively advertising its active salt neem toothpaste, as its volume
was hit after Patanjali's Dant Kanti

 Dabur
Firm launching ayurvedic products. Pushing Dabur Honey and Chyawanprash
aggressively

 Himalaya
Recently launched its range of wellness products which aim to provide
therapeutic solutions to consumer

SWOT ANALYSIS OF PATANJALI

 STRENGTH :

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1) RAMDEV BABA , a brand image with 5,491.514 followers only
in Facebook .He can invest a lot into digital marketing , content marketing
with good returns.
2) So many followers of YOGA (20 crore ) and association of products with yoga
3) price 20-30% lower than other companies same segment categories
products
4) 100 AYURVEDIC FMCG products all herbal in nature
5) Strong government support

 WEAKNESS :
1) Lack of management graduates and think tanks
2) not much advertising like other companies due to which even some products of
patanjali are still unknown to all
3) Restrictions over distributions . You cant find every patanjali products in every
kirana stores or outlets.
4) packaging is poor as compared to other companies, for example packages of
soaps are so dull in color .

 OPPORTUNITIES :
1) natural/herbal care market alone in INDIA worth RS 9000 crore and 20-25%
ayurvedic .
2) YOGA followers to grow at national level and at international level so there
are opportunities to do marketing of their products more
3) Ties with retails like BIG BAZAAR . BIGBASKET.com where they can
promote their products.
4) Only 21% of revenues from pure ayurvedic products while another 39% from
herbal/cosmetics , 40% from foods. And so there is large space for patanjali to
explore more in each segment.

 THREAT:
1) HUL and its own ayurveda brand AYUSH which they are re-branding

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2) Himalaya worth 600 crore already in to skin care ayurveda segment whose
products are very popular
3) Challenges from DABUR INDIA and EMAMI who are planning for making
new strategies for playing in these segments.

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CHAPTER 2:
CONCEPTUAL DISCUSSION

The Patanjali saga has its genesis in the word that is synonymous with India’s gift to
the world- Yoga. In 2003, a relatively obscure TV channel called “Aastha TV”
opened its early morning slot for Baba Ramdev. Wearing only a saffron dhoti, he
would
appear every morning, and demonstrate various yogic postures, their benefits,
encouraging the audience to lead a healthy, simple and fit life. He soon became
very popular for his free yoga lessons, his easy-to-follow breathing techniques based
on his knowledge from several scriptures. In fact Baba Ramdev single-handedly
revived the ancient Indian practice of Pranayam- anulom and vilom- the breathing
techniques that were till then known only in limited circles. His simple earthy
appearance, easy approachability helped his popularity increase in leaps and bounds.
Ramdev started providing a heady cocktail of yoga, spirituality, health, Ayurveda
and lifestyle to a parched Indian audience that was struggling with these very issues,
especially in the fast paced metro cities in India. And millions started flocking to his
ashram to savor this tonic without a second thought.

THE EXPANSION

While Baba was the magnet that was pulling the audience to him, his close associate
and also an yurveda expert Acharya Balkrishna realized that this popularity wave and
the sheer trust and onfidence that Baba has earned can be expanded to encompass a
whole range of offerings. He amalgamated the yoga guru’s popularity and his
knowledge of ancient Ayurveda with best of technology and started providing a
whole range of medicinal products. Thus was born Patanjali Ayurveda Limited
(PAL), a company set up as a small pharmacy by Baba Ramdev and Acharya
Balkrishna, in 1997.Balakrishna owns 92% stake and the rest is held by an expat
Indian couple.
Baba Ramdev holds no stake in the company. PAL which began manufacturing
medicinal products initially, slowly and steadily ventured into segments like dental
care, cosmetics, and food products. The brand name Patanjali Ayurved combines the

18
names of India’s ancient herbal medicinal system of Ayurveda, and the famed yoga
saint of yore, Patanjali. The website of Patanjali Ayurved Ltd clearly mentions that
“it

19
the company’s website “it is all about reinventing the traditional knowledge of Yog
and Ayurved, rejuvenation of rural economy by arresting the flight of rural job
seekers to the urban slums, strengthening the health grid of the nation and the world,
mending the environmental imbalance……and finally fighting the tirade of western
culture on Indian panorama.” Thus it can be seen that PAL has built a strong
emotional connect with the consumers based on three clear platforms - first- a
“swadesi” platform, secondly- resuscitating the rural poor and their economy and
finally caring for the health of all by providing the products at very affordable prices.
This emotional branding is what has emerged as the strongest differentiating factor.
“Emotional Branding” emerged in the late 1990’s and is establishing itself as the new
paradigm for branding. It is defined as engaging the consumer on the level of senses
& emotions; forging a deep, lasting, intimate emotional connection to the brand that
transcends material satisfaction; it involves creating a holistic experience that delivers
an emotional fulfillment so that the customer develops a special bond with and a
unique trust in the brand. “Emotional Branding says that branding strategies should be
more about mindshare and “emotions share”, rather than market share.

The advantage it has is that once a consumer buys into the ayurveda philosophy, it's
not restricted to just one product.With acceptance comes extension as consumers end
up buying many categories simultaneously — a phenomenon not seen with other
FMCG companies where individual categories gain or lose a consumer to
competition. The company assures the consumers that getting rid the food of the
pollutants, poisonous pesticides and chemical fertilizers are their goal and
commitment. Thus they are always striving to achieve this by providing consumers
with eatables that are cultivated using
organic, natural manures and pest repellents. Another factor that is strongly in
Patanjali's favor is its
objective is to make products available to the consumer at the most reasonable price,
and therefore most of its products come at a substantial discount to existing
alternatives. The price differential itself may be enough for some consumers to make
the shift and for those in the low income class to become loyal customers of the given
product category. For example, Chyawanprash, one of Dabur’s flagship products is
nearly 25% more expensive than that of Patanjali’s. Similarly, Patanjali Honey is

20
priced at 43% lower than Dabur’s. This is possible for PAL as it remains perhaps the
only company in the FMCG space that didn’t spend or rely on advertising for its
scalability. Using an intelligent combination of strong word of mouth (WOM)
publicity and powerful endorsements by Baba Ramdev via his yoga camps, PAL has
been able to achieve an unprecedented scale and growth to the extent that it is now
making global & domestic rivals sweat. Coming out of nowhere, Patanjali Ayurved
is now India’s fastest-growing consumer products brand and established domestic
and global competitors like HUL, Colgate, Nestle, Dabur, Emami and Marico are
unnerved by the rocketing sales of its wide range of ayurvedic, nature based staples,
nutrition, cosmetics and personal care products of this company. An
exclusive store network proved a winning strategy. There are nearly 10,000 consumer
touch points as “Chikitsalayas” (Dispensaries) and “Aarogya kendras” (Health
centers). These are operated by third party vendors as exclusive Patanjali stores.
Brokerage house CLSA’s analysts Vivek Maheshwari
and Bhavesh Shah put Patanjali Ayurved in their annual “Wish you were listed” roll
last week, saying its topline exceeded that of listed firms like Jyothy Labs and Emami
Ltd.

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LITERATURE OVERVIEW

HYPOTHESIS INFORMATION

 BRAND IMAGE AND BRAND LOYALTY

Patanjali has piggy backed not only the awareness of Baba Ramdev but it is
built on the brand strength, firstly of Yoga and its proponent, Baba Ramdev,
and of Ayurveda. Followers of yoga, Ayurveda and Baba Ramdev were/are
its most ardent early adopters, and they spread the word to others on the
efficacy of the products. There is the added belief that something from this
heritage is likely to be pure, and Patanjali has been quite welcoming of
analysts and media to its offices to back this belief. They also have a research
lab, Patanjali Research Foundation, which, based on its website has a smallish
team building a framework to prove that yoga works.

 BRAND IMAGE AND CONSUMER PERCEPTION

In Indian scenario, perceptions about a particular brand are important
because Indian customers rely on the perception of their near and dear ones
before actually buying or using the product. The perceptions of the people
around us affect our decision to buy or not to buy the product. Perceptions are
highly subjective and thus easily distorted. The qualm of buying and not
buying continues into the mind or the black box of the prospective consumer
unless his decision is not supported by many. Thus in order to survive in the
marketing environment of a country like India, brands need to be positioned in
the minds of people. India is already an attractive destination for brands to set
in due to favorable marketing conditions. India has known to be a hub of
Herbal brands as well since the herbal products are deeply associated with the
spirituality sentiments of the people. A WHO (World Health Organization)
study estimates that about 80 percent of world population depends on natural
products for their health care instead of modern medicines primarily because
of side effects and high cost of modern medicine (Sharma, Shanker, Tyagi,

22
 Singh, & Rao, 2008) The worldwide herbal market products are around $6.2
billion and estimated to reach $5 trillion by the year 2050 (WHO & Kumar &
Janagam, 2011). This paper carries out a study on what factors affect buying
decision of the buyers for brand PATANJALI.

MARKETING MIX OF PATANJALI

Patanjali has a manufacturing unit in Nepal, working under the brand name of
Nepal Gramudhyog. India’s fastest growing FMCG company is valued at 3000
Crore and generated a revenue of 5000 Crore for the fiscal year of 2015-16.
Hindustan Uniliver and P&G are the FMCG companies, whose market share has
been potentially affected by Patanjali. P&G and Hindustan Uniliver are on back
foot and trying to lure customers back by providing huge discounts and impressive
offers.

PRODUCTS IN THE MARKETING MIX OF PATANJALI

AYURVED
Baba Ramdev is constantly pushing Indian people to start using Indian brands and
save the economical growth of the company. Patanjali is planning to take over all
reputed brands dealing in beverages and foods.
Some of the sectors where Patanjali products are already doing great:
 Foods – Including jams, biscuits, noodles, oats, pulses and many other lines of
food products.
 Beverages
 Healthcare & Medicines
 Personal care products
 Cleaning agents

Products that are already making news and have forced competitors to bring their
prices down in order to save their presence in the market:

23
Products where Patanjali is present and beating competition are
 Dabur Honey: Patanjali Ayurved is providing people with option to buy
quality honey at around 30% lesser price than Dabur.
 Colgate: Patanjali Ayurved is preaching how Colgate cheated people in early
days. And how ayurveda is the best way to treat your gums and your teeth.
 Patanjali Noodles: Patanjali Noodles rose to fame while Maggi was away from
the market and has done quite damage to Maggi, which once was the king of Noodle’s
market.

PRICING IN THE MARKETING MIX OF PATANJALI

AYURVED
Two factors that have made Patanjali Ayurved the fastest growing FMCG company in
India are: a) Use of Natural Ingredients and Ayurved and b) Pricing. Pricing plays an
extremely important role in putting Patanjali Ayurved ahead of its fierce competitors.
Hindustan Uniliver and P&G are trying their level best to cope up with the
competition but the love for Indian product growing in people is not helping them.
Patanjali is educating people about the benefits of using their products and are also
using price comparison as an effective marketing strategy. The pricing strategy is
clearly penetrative pricing because Patanjali knows that it cannot conquer the market
with higher prices. Plus, if the ingredients are natural and domestic, the cost of the
product is lesser too. There is a drop of 25-30 percent of price in almost every product
when compared to International Brands which is helping Patanjali reach each and
every household in India.

PLACE IN THE MARKETING MIX OF PATANJALI

AYURVED
Patanjali Ayurved is India’s fastest growing FMCG Company but it is not
stopping it from spreading its wing to neighboring countries like Nepal. Patanjali
has a manufacturing unit in Nepal. Patanjali also imports herbs from Himalayas in
Nepal; the well-established trade relation is helping Patanjali expand its wings in
Nepal with great ease.

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With the growing outreach in India and Nepal, Baba Ramdev surely will be
aiming to overtake market in lot of other countries. With impressive revenue of
5000 Crores, Patanjali is surely going to have a lot of fund for expansion and
growth.
In India, 1000’s of stores are now selling Patanjali products, and these stores are
exclusively selling Patanjali, making the local retailer quake. The penetration
levels will only rise further as the margins in the product are good too.

PROMOTION IN THE MARKETING MIX OF

PATANJALI AYURVED
Patanjali Ayurved goes with the Slogan “Prakriti ka Ashirwad”. Well, Patanjali
Ayurved has acquired the requisite fame and popularity among people because of
the globally recognized Yoga Guru, Baba Ramdev. This brand ambassador of
Patanjali is single handedly responsible for the success of the brand. His
contribution to people’s life through Yoga is incredible hence people felt aligned
towards him when he launched his very own Indian FMCG Company.

While a lot of people shifted to Patanjali Products because of Baba Ramdev, a

pool of Indians started following him when they realized how good and cheap
Patanjali products actually are. Patanjali Ad campaigns have always focused on
surpassing information to people that “revenue of Patanjali is for Charity and
not for Brand Owners”.Secondly, it is better that the revenue generated from day
to day products remains within India rather then the profits going out to foreign
companies.

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CHAPTER 3

RESEARCH METHODOLOGY

3.1 Title

“MARKETING STRATEGIES OF PATANJALI”

3.2 Title Justification

This title is justified as the project displays both the qualitative and quantitative
factors of Patanjali.

From local stores to Amazon, Patanjali products are everywhere.The product quality
is best in breed, the prices competitive and the distribution chanel is probably the best.

3.3 Objective of study

• To study the brand perception of ‘PATANJALI’ in minds of Consumers

• To know the attributes that a customer keeps in mind while buying

‘PATANJALI’ Products

• To study the satisfaction level of consumers after using ‘PATANJALI’ Products

3.4 Research Methodology

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This paper is based on primary data collected through questionnaires from 100 users
of Patanjali Products within Punjab. The questionnaire design is built up to know the
type of products people use, the reason for their buying such product and their post
buying satisfaction level from that product. Secondary sources have been used to
collect information about ‘Patanjali’ brands. Journals, articles, research reports and
government documents were reviewed to get the insight of the previous interventions
that the stakeholders and policy makers have already in place. Also websites of
natural products manufacturing company and online document were investigated to
conduct this research. To analyze the questionnaire results tools of descriptive
statistics, correlation, regression and non-parametric (chi-square) test have been used.

3.5 Data Collection

1. Primary Data Research Methodology

The process of collecting original data with the help of research with the help of
various methods like: - surveys, questionnaires, industry expert opinions, direct
observation and interviews. It is also known as field research. The data collected by
these methods is mostly interpreted scientifically to gain meaningful insights from it.

2. Secondary Data Research Methodology

Secondary Research was divided into two parts which was done from the related
websites and analysis of the academic journals. Websites like: secondarydata.com for
consumers and entrepreneur.com for owners was used.

3.6 Limitation of Study

The results of the study may not be generalized because researcher followed
convenient sampling method. Moreover, the study includes students with zero income
which may not give conclusive results as income affects the buying capacity too.
Also, Researcher could not gather much data from age group of 55 and above. The

27
bias cannot be excluded since the researcher only reached out to accessible area to
distribute and gather information. Time and resource constraint are other limitations
too.

CHAPTER 4
ANALYSIS

Patanjali Ayurved is a incorporated company under the Companies Act – Patanjali

Ayurved Limited. Though a corporate entity, its working and ideology is not
completely that can be compared to that of a perfect corporate culture. The company

is focussed on top‐line growth rather than profitability. Its business ideology is

inspired by Swami Ramdev’s ideologies to touch every life through Patanjali

which will help the consumers and be present in all the segments where the
consumers feel they can get a better product at a better price. The organisation
conducts its business on the following 3 main principles:

(1) Providing world‐class products to consumers (making sure the company does not

add any preservatives or uses natural preservatives as far as possible).

(2) Producing products in the most cost‐effective manner so that the products are

priced very reasonably.

(3) Whatever profits the company earns are ploughed back into business so that it can
invest the same for launch of new products, cost effectiveness or further capacity
expansion.
Patanjali will not launch any products that are harmful to the health of consumers and
detrimental to the health and lifestyle of the people. Hence, the company will not get
into product categories like tobacco and liquor which are bad for health. Going

28
forward, the company also plans to open 500‐600 branches of Acharyakulam

(educational institutions).

FIGURE 4.1 The 3 vital principles that drive Patanjali’s business

TARGETING MORE THAN 250% REVENUE GROWTH IN FY16

Patanjali clocked revenue of ~INR20.3bn in FY15 with EBITDA margin of ~20%.

The company targets to achieve revenue of INR50‐60bn in FY16 itself. Growth is

being driven by the company’s largest selling product, cow’s ghee (expected to be
INR12bn in FY16) followed by Dant Kanti and Kesh Kanti. Patanajali also has a
robust pipeline of new products, which will help achieve its target.
Patanjali operates via 3 business segments, viz., foods (foods, supplements,
digestives, dairy, juices, etc), FMCG (cosmetics (shampoo, soaps, facewash), home

29
care (detergent cakes, powder, liquid), etc) and ayurvedic products (healthcare
products for blood pressure, skin diseases, joint pain, etc). In FY15, of the total sales
of INR20.3bn, food and cosmetics contributed INR8bn each, while healthcare
products comprised the balance. The company has adequate capacity to achieve its

revenue target of INR50‐60bn in FY16.

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 TABLE 4.1

31
ASPIRES TO BE PART OF EVERY SKU IN KITCHEN

Patanjali is working on a kitchen concept, as part of which it will launch

products that will touch all categories of the SKUs used in an Indian kitchen. For
instance, the company already has products that are used in the Indian kitchen such as
dishwash bar, ghee, rice (has 3 variants of rice), pulses, spices, mustard oil, flour and
madhuram (replacement for sugar made out of jaggery) under the Patanjali brand
name .

FIGURE 4.2 Some Patanjali products used in the Indian kitchen

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ATTRACTIVE PRICING, NATURAL POSITIONING
ENSURE COMPETITIVENESS
Patanjali’s key strength, apart from its superior product quality, lies in pricing. The

company’s products are priced at ~15‐30% discount to competition, which makes it

an attractive proposition for consumers. It is able to offer such discounts primarily

because of having negligible A&P spend versus other consumer companies which

have A&P spends ranging from 12‐18%, as a % of sales. Another reason for the

discounts is the consumer‐centric ideology of the organisation and selling best quality

products at attractive price points. There may even be some products in the
company’s portfolio which are making losses or fetch low margins, but it continues to
sell these products to meet consumer needs.

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 TABLE 4.2

LOWER AND EFFECTIVE ADVERTISING AIDS LOWER

PRICING
Patanjali Ayurved has limited advertising expenses, which gives it enough leeway to
pass on the savings from lower ad spends by way of lower prices. The company
advertises in a limited way – news tickers, regional newspapers, some digital
advertising, etc., though going ahead it might start other forms of advertising too.
Patanjali has adopted the unique informationbased advertising. For instance, the
company highlights the positives of cow’s ghee, which automatically helps sale of
Patanjali Ghee. In the recent past, the company’s print advertising has seen a
marked increase.
For the consumers, Baba Ramdev remains the face of Patanjali and its products. Baba
Ramdev, during his yoga sessions, showcases the Patanjali products. After the
session, he makes the attendees aware of the benefits of using Patanjali products. Till
date,
34
close to 70mn people have come in contact with Baba Ramdev through his yoga
camps and it is believed that this can increase to 200mn going ahead. This
highlights the potential reach that the Patanjali brands can have without much
mainstream advertising. Also, being associated with Baba Ramdev helps in
creating a better perception among consumers that being ayurvedic offerings,
the Patanjali products are healthy.

ONLINE PLATFORM TO SPRUCE UP DISTRIBUTION

NETWORK
Many people complain that due to Patanjali’s weak distribution network its
products are not easily available everywhere and they are unable to buy them. To
address this concern, the company has chalked out an aggressive plan to improve its
presence on the online platform.

Currently, it is already selling its products through its web‐site,

www.patanjaliayurved.net, from where consumers can order the products and get
free delivery of the same if the order value exceeds INR499. Other companies like
bigbasket.com, etc., that also sell Patanjali products online have been barred from
doing so. The company is also implementing ERP for better mapping of inventory
(SAP has already been implemented). Patanjali will also be launching its mobile
app,
which will allow consumers to locate nearby outlets that are selling Patanjali products
and also facilitate online ordering of products.
Patanjali also sells its products through the Patanjali Chikitsalayas (where free
medical consultancy is given by medical practioners), Patanjali Arogya Kendras
(health and wellness centre) and Swadeshi Kendras (regular outlet). As for reach, the
company has close to 0.2mn outlets and 10,000 franchisee model of Chikitshalyas
and Arogya Kendras. Distributionwise, the company operates through 100 super

35
distributors (this will be bolstered going forward) who in turn supply to the

wholesalers and retailers (who operate through a 500‐600

strong sales team). As of now, the company has no plans to have direct reach.

Apart from online presence, Patanjali is also taking steps to enhance its overall
distributor coverage. The company has invited applications for distributorship of its
products. Being seized of the fact that that there is high demand for its products,
Patanjali is now offering separate distributorship for food and cosmetics compared to
the earlier system when one distributor managed both. Also, the company is giving
distributorship at the district, tehsil and mandi levels, which shows its confidence on
its the growth trajectory and demand for its products.

NEW PRODUCTS PIPELINE STRONG AND INNOVATIVE

Patanjali has a separate team for new product development. The company has been
able to leave a mark owing to the pace and frequency of new product launches. Its
robust R&D department has churned out new products in quick time and lower
costs. For instance, Patanjali started working on its own brand of instant noodles
post the Maggi issue and within a period of 3 months it is now ready with its own
instant noodles. The product has been sent for approval and is expected to be
launched within a period of one month (we got a chance to taste the product and really
liked it). The company has a robust and innovative pipeline of new products with
some set for launch soon and some others at R&D phase.

New products that are expected to be launched soon:

36
 Patanjali Noodles (will compete with instant noodle players like Nestle and ITC).

 Dant Kanti Advance (already has 3 variants of Dant Kanti toothpaste –

Regular, Medicated (similar to sensitive) and Junior).

 PowerVita (will provide competition to all health food drink companies

(Mondelez, GSK
Consumer) – this product is made up of ayurvedic ingredients like Brahmi, etc.).

 Sugar Free Chyawanprash (competition to chyawanprash manufacturing companies

like
Dabur and Emami).

 Powdered hair dye (the company has a separate unit, Coloroma, which manufactures
herbal colours and dyes).

 Divyapay (health drink comparable to tea) in dip dip format.

 Child range (the company is also planning to launch a children’s range

under Patanjali which will include products like baby oil, talcum powder,
baby soap, shampoo, etc).

Products at R&D phase

 Butter milk in powder form.
 Oats with masala.
 Chicory coffee (caffeine free).
 Weight gain and loss products.
 Madhuram – ginger and rose flavor.

CHAPTER 5

FINDINGS/OBSERVATIONS

37
PATANJALI AYURVEDA- ENTRY INTO FMCG
Patanjali started off manufacturing bulk ayurvedic medicines later branching its
operations into FMCG markets as well. Since, the FMCG market has low entry
barriers, Patanjali soon established itself as a major consumer goods’ manufacturer.
The recent trends clearly imply that the company’s priorities are shifting from
medicines to consumer goods, perhaps because the net revenues earned through
FMCG are on par with ayurvedic medicines.

PATANJALI AYURVEDA – CURRENT MARKET INSIGHTS

Patanjali as a brand currently has more than 350 products from Soap to Toothpaste
and from Oats to Health drinks. The 2014-2015 revenue of Patanjali Ayurveda
crosses Rs. 2000 crore figures. In January 2016, IIFL said “Patanjali Ayurveda Ltd
has, in a short span of less than a decade, recorded a turnover higher than what
several companies have managed to achieve over several decades. There is no doubt
that Patanjali is a disruptive force in the FMCG space and is a credible threat for the
incumbents.” The industrial data indicates that the brand has a market share of 4-5%.

FIGURE 5.1

38
 FIGURE 5.2

FOCUS ON REVENUE OVER PROFITABILITY

As per the report by edelresearch “The company is well on course to achieve its

targeted revenue of ~INR50‐60bn in FY16 (INR20.2bn in FY15). Even though the

thrust is not on profitability, the company managed to clock ~20% EBITDA margin in
FY15, aided by better cost management (latest machinery and strong R&D
capabilities) and lower A&P spends”
PROACTIVE MOVES IN INNOVATION
Patanjali Ayurveda is aggressively planning to enter into every consumer category.
Currently Patanjali Ghee is expected to be at INR 12 billion in the financial year 2016
and if it gains solid distribution expertise, it could pose a serious threat to its
competitors. An innovative R&D facility equipped with latest technology, Patanjali
has also launched a mobile app which helps the consumer to locate retail outlets and
for online ordering of Patanjali products

PATANJALI’S SUPPLY CHAIN MANAGEMENT

39
The three phases of patanjali’s supply chain are product flow, information flow and
cash flow. Patanjali has recently completed a tie up with Future group to sell the
products. They also sell their products through their own outlets opened in almost
every district/city of India. Each outlet has to send their demand to central office at
Hardiwar. Then as per the demand, various products are gathered from various units
of Patanjali. The items are delivered to outlets majorly through Patanjali transport.

FIGURE 5.3

SALES AND DISTRIBUTION – PATANJALI

 Patanjali provides sale of products online and can also be procured through
post by sending the money through demand draft
 Patanjali herbal products are available at Post Offices across the country
 Patanjali also has “Patanjali Chikatsalayas” and “Patanjali Arogya Kendra”
in almost all the cities of the country
To strengthen the distribution Patanjali is also implementing ERP which will help
them in managing the inventory.

PATANJALI‘S R&D FACILITY

Patanjali’s R&D center has all the advanced technology and machinery required for
testing the products. The company also has a separate R&D department for each of its
production units. The company also has a high-end central R&D facility.

PATANJALI’S PIPELINE
Patanjali has a very strong pipeline, thanks to their innovative and huge R&D setup.

The new products include:

 Patanjali yoga wear (Vastram)

 Dant Kanti Advance

40
  Sugar free Chyawanprash
 PowerVita
 Seabuck thorn dietry supplement

TABLE 5.1

41
CHAPTER 6
CONCLUSION

The Findings in the paper show that there are many significant factors that together
make up the buying decision of the product. Customers’ perception towards a brand
is built largely on the satisfactory value the user receives after paying for the product
and the benefits the user looks for. In the above study, a large portion of the user is
satisfied from Patanjali products. It
may be because of reasonable price of the product. It may be due to ability of the
product to cure the problem. The satisfaction brings in the retention of customer.
Patanjali is enjoying the advantageous position in market through spirituality element
involved in its products. However, it should not ignore the competitors like Naturals,
pure roots, Vindhya herbals. Patanjali in order to retain more customers and satisfy
them,must fulfill the claims made by the company before any other brand may
mushroom up and take away the benefits of marketing through spirituality.

Firms are increasingly recognizing that brands are among their most valuable assets
and are, therefore, intensifying the level of resources directed toward building them.
At least partially in response, academics are also intensifying the attention directed
toward understanding the meaning and value of brands and the process of branding.
This development in the branding literature, together with a more general evolution in
academic marketing thought,
is causing marketing scholars to rethink the logic of brand and branding.
Notwithstanding the trajectory that PAL treads in future, it undoubtedly is an exciting
development. Its central theme of “swadeshi” produce has resonated very well with
consumers, and more important, its quality benchmark is firmly established. A
market-disrupting force has emerged from the hinterlands of India that has shaken the
foundations of the well established players in the FMCG sector- global and domestic.
As of now at least, PAL rivals are frantically looking for a soothing balm to calm their
frayed nerves. Perhaps they can rush to the nearest Patanjali store for a magic potion.
Unlike global and domestic consumer firms, Patanjali has welcomed touring analysts
and potential business collaborators to its factories in Haridwar in India’s northern

42
Uttarakhand state. Again, unlike its rivals, Patanjali Ayurved has not yet spent a dime
on marketing or advertising, and its products currently sell on word-of-mouth. But
this could change soon. Now with hostile market conditions and mushrooming
competition, the company is relying on a blitzkrieg of advertising campaigns directed
at end-consumers. It has hired actor Hema Malini to endorse its biscuits and has also
increasing its visibility on mainstream television channels. According to BARC,
Patanjali became one of the top three most advertised brands on television in late
January 2016.

"The (Patanjali) products have the right to succeed, especially in ayurvedic categories
such as chyawanprash, honey and ghee," said Britannia's Berry, who has been
tracking Ramdev's biscuits closely. Given the aggression and rapid-fire pace of its
all- around strides, many of its well-known peers already seem overwhelmed with
this “swadesi” movement, which doesn’t look like receding anytime soon. However
the key question that remains to be answered is whether PAL will be able to sustain
this fast paced growth and handle the complexities of a widespread supply chain
without compromising on its quality and brand promise.

43
 BIBLIOGRAPHY

Books:
Kotler Philip ,Marketing Management:Analysis

Internet:
http://stellarix.com/fusce/a-report-on-patanjali-ayurveda/

http://www.thehindubusinessline.com/opinion/columns/a-reality-
check-on-patanjali/article8710429.ece

http://www.academia.edu/8147483/Marketing_through_spirituality
_A_case_of_Patanjali_Yogpeeth

http://www.marketing91.com/marketing-mix-patanjali/

http://paulwriter.com/patanjali-successful-indian-brand-extension/

https://www.linkedin.com/pulse/patanjali-indian-fmcg-giant-
making-strategies-challenges-bussi

http://www.business-standard.com/article/management/the-
patanjali-effect-116020800204_1.html

https://en.wikipedia.org/wiki/Patanjali_Ayurved

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