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    Troubling Time For Patanjali

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    Sanyam Agarwal
    Patanjali Ayurved Limited is an Indian consumer goods company established in 2006 by Baba Ramdev and Acharya Balkrishna. It produces Ayurvedic medicines and FMCG products. Patanjali grew rapidly due to its Ayurvedic-based FMCG products, low prices, health-conscious positioning, and Baba Ramdev's promotion. However, it saw a decline in revenue in 2018 due to issues like ignoring competition, poor management practices like aggressive expansion, and lack of advertising and innovation. Patanjali is now focusing on improving its supply chain, exploring international partnerships, and strengthening its FMCG product portfolio to regain growth.

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    Troubling Time For Patanjali

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    Sanyam Agarwal
    32 views32 pages
    Patanjali Ayurved Limited is an Indian consumer goods company established in 2006 by Baba Ramdev and Acharya Balkrishna. It produces Ayurvedic medicines and FMCG products. Patanjali grew rapidly due to its Ayurvedic-based FMCG products, low prices, health-conscious positioning, and Baba Ramdev's promotion. However, it saw a decline in revenue in 2018 due to issues like ignoring competition, poor management practices like aggressive expansion, and lack of advertising and innovation. Patanjali is now focusing on improving its supply chain, exploring international partnerships, and strengthening its FMCG product portfolio to regain growth.

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    Patanjali Ayurved Limited is an Indian consumer goods company established in 2006 by Baba Ramdev and Acharya Balkrishna. It produces Ayurvedic medicines and FMCG products. Patanjali grew rapidly due to its Ayurvedic-based FMCG products, low prices, health-conscious positioning, and Baba Ramdev's promotion. However, it saw a decline in revenue in 2018 due to issues like ignoring competition, poor management practices like aggressive expansion, and lack of advertising and innovation. Patanjali is now focusing on improving its supply chain, exploring international partnerships, and strengthening its FMCG product portfolio to regain growth.

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    32 views32 pages

    Troubling Time For Patanjali

    Uploaded by

    Sanyam Agarwal
    Patanjali Ayurved Limited is an Indian consumer goods company established in 2006 by Baba Ramdev and Acharya Balkrishna. It produces Ayurvedic medicines and FMCG products. Patanjali grew rapidly due to its Ayurvedic-based FMCG products, low prices, health-conscious positioning, and Baba Ramdev's promotion. However, it saw a decline in revenue in 2018 due to issues like ignoring competition, poor management practices like aggressive expansion, and lack of advertising and innovation. Patanjali is now focusing on improving its supply chain, exploring international partnerships, and strengthening its FMCG product portfolio to regain growth.

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    of 32

    PATANJALI

    Troubling Times for


    BUSINESS
    MODEL
    Patanjali
    GROUP 4
    ANKITA
    SANYAM
    ABHISHEK
    GOMEM
    Introduction - Patanjali
     Patanjali Ayurved
    Limited, the fastest growing FMCG
    Company in the country.

    Acharya Balkrishna established the Patanjali


    Ayurveda limited in 2006 along with Swami
    Ramdev with the objective of establishing
    science of Ayurveda in accordance and
    coordination with the latest technology and
    ancient wisdom
    OMPNY
    HISTORY
    Name - Patanjali Ayurved Limited

    Company Type – Unlisted Public


    company
    Industry - Consumer goods
    Area served - Indian Subcontinent and
    Middle East

    Company Profile Founded – 2006

    Headquarters – Haridwar, Uttarakhand,


    India

    Products- Foods, beverages, cleaning


    agents, personal care
    products, Ayurvedic medicine

    Total Assets - ₹4345 crore (2019)


    PATANJALI THE BRAND ….
    Amongst top 5 brands of India for highest recall
    value

    The competing brands like Baidyanath , Humdard


    has annual turnover of Rs 700 cr each , Dabur 8500
    cr whereas Patanjali alone turnover is at Rs 10,500 crPatanjali the
    brand . . .
    Why Patanjali Grew so Fast ???
    While Baidyanath and Humdard brands are
    still working on chatni and churan formula in
    their ayurvedic business since past 100 years
    Patanjali is doing the same ayurvedic
    business but incorporated these ayurvedic
    logic in FMCG goods
    Initial stages of Started their
    operation in 2009

    Marketing Started selling


    medicines

    Less advertisements

    No exclusive
    stores

    Main revenue from shivir


    counters and medical shops

    Less revenue
    upto 2012
    Initial Branding & Promotion
    Baba Ramdev took the
    opprtunity in his hands and has •Patanjali Ayurveda goes with the
    started influencing indians that
    how useful herbal patanjali slogan “Prakriti ka Ashirvaad.
    products actually are.
    .

    •Patanjali Ad compaigns have


    always focussed on surpassing
    information to people that “ •The brand ambassador of
    Revenue of Patanjali is for charity Patanjali ( Baba Ramdev ) is
    and not for brand owners” single handedly responsible for
    the success of
    Brand.
    Patanjali Speed of expansion
    Key Factors – In Success
    Patanjali - Ayurveda in FMCG Sector
    Patanjali – Marketing Strategy

    • Promoting Parent Brand i\o Product.


    Patanjali – Marketing Strategy
    • Low profit margins
    • Swadeshi Bhawana
    • Health consciousness
    • Partnership with –
     Chikitsalaya
     Arogya Kendra
     Swadeshi Kendra
    Patanjali – Distribution Network
    • Big Bazaar
    • Reliance Retail
    • Star Bazaar
    • Hyper City
    • More
    • D Mart
    • Appolo Pharmacy
    • Spencers
    • E-commerce
    Social Media Networking

    • 916 videos on youtube


    • Active followers on Twitters & Facebook
    USP :- Unique Selling
    Proposition

    Effects of Yoga
    • Valuable effects of Pranayama yoga and proper
    AYURVEDA breathing technique

    • Disease free society


    • Medicine free world
    Entry IN FMCG ( 2012)
    MARKETING MIX
    ODEL
    Marketing Mix Models
    PRICE PLACE
    Value Based Pricing Franchise Stores,
    Alignment of cost, Super/Hyper markets
    customers & & Online
    competitors. marketplace
    02 03

    PRODUCT
    PROMOTION
    All Existing Yoga Shivir,
    Products and Youtube,
    04 Social media
    herbal products 01 Free media
    for promotions
    different diseases
    .
    SWOT ANALYSIS
    • Low export levels
    • Strong competitors and
    • 100% natural products with S W availability of
    little side effects substitute products
    • Brand image of the trust • Less expenditure on
    • Considered socially marketing and promotional
    responsible for health of the Strengths Weakness activities
    society • No distribution network in
    • Established distribution rural areas
    network in urban areas
    • Changing lifestyle and rising
    income levels
    • Political Interference • Change in trend of
    • Removal of import Threats Opportunities becoming more health
    restrictions conscious and using more
    • Controversies
    T O organic products
    • Large domestic market
    • Rural market to be tapped

    IDEA
    MARKETING BRAND
    BUILDING 04 ADVERTISEMENTS
    03 ONLINE & OFFLINE SHOPPING EXPERIENCE
     Commercials on Star TV and
     Authentic and trained sales consultants ZEE TV
     Customers problems solved on 1:1  Simple ads to disseminate
    interaction info – INFOMERICALS
     Easy to navigate website UI with  No false promises
    full details  Spending is only 1 – 1.5
     HD resolution photos and videos % of revenues turnover
    of products
    02 YOGA SHOWS

     Pan India Yoga Shows 05 SOCIAL MEDIA


     Broadcasted in 170 countries
     3 books and 2 video CDs  500k followers on twitter
     6 million Facebook page likes
     50k subscribers for YouTube channel
    01 PERSONAL BRANDING
     11 million views on YouTube channel
     Cult personality and charisma of Baba  Language – Hindi and English
    Ramdev  Regular updates and replies
     535 branches of Patanjali Yog Ashram
    Financial Data of Patanjali
    Revenue in Finance year 2016-2017crossed
    10,000 Crores

    COMPANY
    ANALYSIS
    Troubling Times for Patanjali………..

    VALUE
    CHAIN
    ANALYSIS
    2018 : - Downfall in Revenue
    Major Reasons Why Patanjali Major
    Saw The Downfall In
    Reasons Why
    2018 Patanjali Saw
    The Downfall
    01 In 2018
    Ignoring competition

    04 Lack of
    Innovation

    02
    03

    Poor Management Lack of Advertising


    Lack of Innovation !
    Poor Management “Aggressive Expansion”
    Lack of advertisement !
    Lack of quality control !
    Tie Up with International Brands
    Patanjali Ayurved, which
    has constantly positioned
    itself as a ‘swadeshi’
    alternative to multinational
    products, is open to deals
    with global companies e.g
    LMVH.
    Depot Setup for Improving Supply Chain
    Focus on FMCG Products

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