Patanjali

Little wonder that Patanjali's success is now the talk of boardroom

discussion too so much so thatnot just kiranas but big retailers like
Reliance Retail, Big Bazaar, Hyper City and Star Bazaar are also
stocking Ramdev's FMCG products. But the real play is online. While
Patanjali's products are already available at e-commerce site
BigBasket, amazon.com, Flipkart, etc
 Introduction
Acharya Balkrishna established Patanjali Ayurved Limited in the
year 2006 taking inspiration from Yogrishi Baba Ramdev for the
objective of establishing science of Ayurveda in accordance and
coordinating with the latest technology and ancient wisdom.

Patanjali Ayurved was first started by manufacturing medicinal

products. Gradually they have expanded their range from medicines to
food items and cosmetics.

Baba Ramdev chose the path of swadeshi and by establishing

Patanjali Ayurved he presented an indigenous option to buyers, on the
other side he gave competition to different FMCG companies.

In March 2012, whenRamdevannounced his entry into the fast

moving consumer goods and herbal retail markets with his 'swadeshi'
line of products, the yoga guru today has emerged as one of Indias
more successful brands in the otherwise less penetrated rural markets
too as his150-200 dedicated outlets in 2012 have grown to almost
4,000 now, prompting Ramdevto sell theFMCG range in the open
market too.
 How Patanjali functions??
Patanjali Ayurved Ltd is a concept that links the rising destiny of
millions of rural masses on the one hand and many more suffering the
onslaught of the unhealthy urban life style.

The produce will be picked up right from the farms, thereby increasing
the effective income of the farmers.It is all about reinventing our
traditional knowledge of Yoga and Ayurved, rejuvenation of rural economy,
arrest of the flight of rural job seekers to the more demeaning urban
slums, strengthening the health grid of the nation and the world, mending
the environmental imbalanceand finally fighting the tirade of western
culture on Indian panorama.

PATANJALI AYURVED Ltd functions under the regulations of the

company law affairs. The motive is to provide superior quality products at
a fair price and getting our patients rid of their diseases.

Getting rid the food we consume of the pollutants in the form of

poisonous pesticides and chemical fertilizers that our farmers use, is a
goal that we strive to achieve by providing our people the eatables that
are cultivated in organic and natural manures and pest repellents.
 Contd
To establish a State of art Modern Food, Juice and Herbs processing
plant with latest technology at Padartha, Haridwar in the foot hills of
Uttarakhand.

Identify areas, Villages, Farmers, Cooperatives, Self Help Groups and

clusters for growing crops of desired standards, for both quality and
quantity.

To provide the necessary technology and knowhow to the farmers of the

catchment areas of Uttarakhand and Uttar Pardesh, for growing organic
crops and other premium, plantations.

Liasioning with central and state financial corporations, banks and other
sources to finance our registered farmers enter into forward marketing
contracts with the registered farmers. Collecting the farm produce through
our mobile collection centres and primary collection centres.

Safe and quick transportation of the produce from collection centres to the
main processing centres, with a view to reduce wastage of perishables.
Ensuring direct and decent remunerations to the farmers. Low cost of
processing of the farm produce. High volumes will ensure Economies of
Scale. Supply of Quality products through a wide net work of Patanjali sale
centres throughout the country.
 Products
Ayurvedic

Herbs

Foods

Juices

Cosmetic
 The Success Story
It all started in 2002 when Baba Ramdevs mass yoga camps telecasted through the leading
spiritual channels (which were the new trend then) across the country. These camps, besides being
a free yoga classes for the television viewers, built a big brand for Baba Ramdev and placed him in
a positive light as a person you can trust on. These yoga camps also somehow kindled a new
interest in healthy exercises and Ayur Veda.
Baba was in the limelight as he became a part of many political as well as non-political (and rather
silly) controversies like cure of Cancer, AIDS, and homosexuality by yoga. His argument for the
replacement of sex education in schools with yoga education and his speeches that stated western
medicine companies as con were a part of hundreds of controversies he was a part of.
Between all this, patanjali was born in 2006. Or rather, as researchers say, was being planned from
2003 itself. Patanjali is actually managed by Acharya Balkrishna (Ramdevs partner since 1995).
The products were initially marketed and promoted during the yoga camps (which has been
attended by around 20 crore, or almost a sixth of the indian population till now). Since the yoga
classes were conducted for free, people were convinced that the Baba was not in it for the money
(this trick always work)
 Patanjali Yogpeeth was a set up in Haridwar; a hindu pilgrimage site, Baba wore saffron,
propagated swadeshi psyche, and the main focus was on Yoga and Ayurvedic medicines.
The Patanjali brand was set, years prior to the foundation of the actual FMCG Company.
The key player here was a simple business whose brand identity and brand image were in
line. Unlike other herbal brands, it had its brand ambassador as a real life yoga guru who
preached yoga and Ayurveda all his life and hence their brand identity and brand image
was in the same line. Celebrities like Amitabh Bachchan did promote herbal brands like
Dabur, but it was hard for people to associate a film star with a herbal brand.
Since the brand was directly associated with the Baba, all his network which is
577,000 Twitter Followers
53,248 Subscribers with 13,191,201 Video Views on YouTube
6936960 likes on facebook with 408359 talking about Baba
This, being a lot more than his competitor companies, was used to promote the products.
 Baba Ramdev also had a good support from the BJP government as they

always had his back during the time of controversies. He was also called to lead

the world yoga day celebration on 21st june, 2015 by the prime minister

himself.

Luck can do wonders sometime, but when used with brains. Baba Ramdev was

successful in making a 3000 crore company just by his own name. But this

could backfire on him as well. His every action, every social media post, every

word he speak has been associated with the brand and hence Baba Brand has

to be a bit more cautious in everything he do, speak, eat, type, or wear.

 Coverage
A chain of over 20,000 distributors with
maximum in village, small towns.

Exclusive Swadeshi Stores

Patanjali branded stores & Arogya Kendras

Distribution through Kirana stores.

Pitching the 4As of Marketing
Acceptability

Affordability

Accessibility

Awareness
 Spirituality: The X Factor
The Hindu population

Relating the products with spiritual values rather

than fashion.

The Baba effect.

 Distribution Strategy
Patanjalis combination of low prices, natural and pure proposition and swadeshi
positioning are widely acknowledged to be the reasons behind success, what is not that
well known is the critical role played by Patanjalis path-breaking sales and distribution
strategy in driving this exceptional growth trajectory.
Patanjali can offer low prices to consumers due to very low selling, administrative and
general costs at 2.5 per cent of revenues. Advertising spend in FY 16 at 6 per cent is also
well below the peer set. Critically, it has kept retail margins at half or lower levels as
compared to competition.
Distribution strategy
Patanjali has followed a two-stage distribution strategy in general trade (GT):
Stage 1: Create a strong alternative distribution system for demand creation and building
word-of-mouth advocates
Stage 2: Pivot to GT once a sizeable consumer base is generated from Stage 1
 In a new market, Patanjali first drives trials and
consumption using dedicated stores. These stores
are essentially Ayurveda clinics, run by
entrepreneurs entirely with their own investment.
They are of three types Arogya Kendra,
Chikitsalaya and Swadeshi Kendras.
Patanjali extends support in two ways: It trains and
certifies medical practitioners nominated by these
stores in Ayurveda, and provides usage of the
Patanjali brand name. This automatically bestows
trust and credibility due to the rub-off effect of
Baba Ramdevs credentials on Yoga and Ayurveda.
 In return, these stores provide various services. One is
free consultation by certified medical practitioners.
This assures high footfalls and likelihood of building a
large scale of early adopters. It serves as a retail store.
The entire range of around 200-260 SKUs is stocked
across both OTC, pharmaceutical and FMCG products
and there is typically a weekly replenishment cycle.
There is skillful cross-selling across pharmaceutical
and FMCG products. The presence of Ayurvedic
medical practitioners at the outlet is a major
determinant of sales. On the days when the medical
practitioner is absent, sales fall 30-40 per cent! The
average FMCG throughput per dedicated store is
typically at 6-7 lakh per month in a metro.
 A powerful network effect is seen at these stores.
Early adopters bring in additional footfalls through
strong word of mouth. The fact that a trustworthy
consultation is free in an important area such as
healthcare provides a strong hook for passing on
recommendations to friends and relatives.
These stores also serve another function product
introductions are done extremely efficiently and
decisions to continue tweaking or scaling up the
product and communication mix can happen in a
short time frame.
 The pivot to GT

Once a sizeable consumer base is built through these

dedicated stores, these consumers would expect
Patanjalis products to be available at general stores,
grocers and chemists in the vicinity of the dedicated
store. These retailers are then forced to stock up on
Patanjalis products for fear of losing out on a
customers goodwill. This builds a platform for the
next stage of growth.
Various towns are at different stages of evolution. For
instance, the companys biggest market, Delhi NCR, is
in Stage 2 and is responsible for revenue of 1,500
crore.
 In 2013, dedicated stores contributed to 80 per
cent of total FMCG sales across GT and the
dedicated store network. As consumer awareness
and pull were created, GT started stocking
Patanjalis top products (oral care and honey)
despite uncompetitive margins. This pivot to GT
continued resulting in dedicated stores
contribution falling to around 45 per cent today.
THANK YOU