Patanjali Takes on Industry

Giants
Ivey Publishing
2016-08-31
Introduction
● Established in January 2006 as a consumer goods company
● Major stakeholders: Acharya Balakrishna(92%) and Sarvan and Sunita
Poddar(8%)
● In 2016, declared that revenues would supersede Colgate’s
● In FY2015/16, revenues grew by 125-150 per cent
● Rapidly emerged as a threat to: Colgate, HUL, P&G, Emami, Dabur, etc.
● Competitors had to launch herbal brands to keep up with the trend set by
Patanjali
● While the big question remained:
“Could Patanjali aggressively expand into more categories while maintaining
sustainable growth?”
Marketing Mix

-Product Portfolio:

•Started operating in 4 major categories-ayurvedic health products,food

products,skin-care and home-care products
•Company’s largest selling products were – cow’s ghee,Dant Kanti toothpaste nad
Kesh Kanti shampoo

-Pricing

•Priced their products 15-20 per cent less than industry leaders
•Sourcing of raw material directly from farmers,hence,eliminating intermediaries
and their margins
•Ensured better profitability and lower cost for consumers
Place:
-

•Franchise model were being used : Patanjali Chikitsalaya (dispensaries),Patanjali

Arogya Kendra (health centres),Swadesi Kendra (Indian-made goods)
•By 2015,Patanjali had 5,000 franchise stores
•Several online platforms such as Zopnow and BigBasket
•Mega stores were were targeted for A-class cities

-Promotion

•Baba Ramdev’s endorsement and promotions at yoga camps

•Word of mouth played a huge role
•In 2015,started started investing heavily in mass media marketing
•Content marketing was their greatest strength
•Partnered with Future Retail Group to increase brand viibility
•Allocates Rs.3 billion to advertising working with agencies such as DDB,Mudra and
McCaan
Major Competitors

HUL Colgate Dabur

Owned by Anglo-Dutch American multinational World’s Largest Natural

Company - Unilever. Company - New York. Health-care company.

Revenue FY2014-15 : Rs. Revenue FY2014-15 : Rs. Profit of Rs. 10.65 Billion
301.7 Billion 40.15 Billion in FY 2014-15

HUL planned to revive Colgate started investing Dabur planned to revamp

LEVER AYUSH, in order in Colgate Active Salt- it’s portfolio by
to combat Patanjali’s Neem Toothpaste- modernizing it’s
pure line of products. entered in herbal space. ayurvedic product line.
Major Competitors

Emami Himalaya Khadi Gram Udyog

Hair-care, skin-care, and Leading Ayurvedic Gramudyog Ashram-

health-care segments. Health care company. Hand-woven fabrics &
herbal personal-care
Revenue FY2014-15 : Rs. Sales FY2014-15 : Rs. products.
22.17 Billion 14.15 Billion
Ramdev aimed to
It acquired brand Kesh Company competed in integrate Khadi Gram
King & planned to look personal-care & health Udyog products with
for more brands in herbal care spaces and grew at those of Patanjali.
space. a rate of 25%. However, this bid failed.
Way Forward…

● Patanjali has aimed at becoming the biggest packaged consumer goods

company in India by 2020.

● Partnership with Future Retail shows that Patanjali has planned to reach out

to consumers by expanding through general and modern trade.

● In FY 2016/17, Patanjali has planned to focus on exports.