A descriptive presentation on Patanjali Ghee covering the Patanjali History, Current situation of ghee market, Marketing model, SWOT, Pestle analysis, Porter model, Market segment, Positioning, competitors analysis with consumer survey on ghee, Market strategy its gaps, recommendations and Growth

1. Presented by
Avnish Bhutani- 20DM289
Aditi Mittal-20DM275
Ashmita Gupta-20DM269
Pranav Bharti-20DM282
Shrey- 20DM295
Rajat- 20DM283

2. • Patanjali Ayurveda Limited is
an Indian consumer
goods company, manufacturing
units and headquarters are
located in the industrial area
of Haridwar, Uttarakhand while
the registered office is located
at Delhi.
• The company
manufactures mineral and herbal
products.

4. HISTORY OF PATANJALI
Ramdev established the Patanjali Ayurved Limited in 2006 along with Balkrishna, with the objective of
establishing science of Ayurveda in accordance and coordination with the latest technology and ancient
wisdom.
After Patanjali Ayurved Limited was registered in January 2006, it was prominently known for its Ayurvedic
Medicines. PAL set up multiple medical clinics across the nation, under the name of Divya Chikitsalaya that
provided free diagnosis to people
. After providing their services in the Ayurvedic Medicines niche for around 6 years, in the year 2012,
Baba Ramdev & Acharya Balkrishna extended Patanjali Ayurved Limited into Indian Mainstream Retail
Sector.
Divya Pharmacy’s medicines were already a hit among the consumers & with their entry into the retail
sector, the duo launched a number of different grocery products into the market. Starting with common
household ayurvedic products Patanjali soon launched all sorts of small & big daily use items.

5. Ghee, which is widely used in Indian cooking, is the pure butter fat left over after
the milk solids and water are removed from butter. It is very fragrant with a rich
nutty taste and represents the second largest consumed dairy product in India,
after liquid milk.
The healthy growth of the market can be attributed to numerous forces.
Population growth, rising disposable incomes, easy availability, and growing
awareness about the benefits of ghee are some of the factors that are
broadening the growth aspects of the market.
For each of the states, the report provides a thorough analysis of the current and
historical value and volume trends, market share of key players and market
forecast. Currently, Uttar Pradesh represents the largest market of the total
ghee market in the country.
It is followed by Rajasthan and Madhya Pradesh. The competitive landscape of
the Indian ghee market has also been covered in this report. Some of the
prominent players operating in the market include GCMMF, RCDF, Mother Dairy,
Patanjali, SMC Foods, etc.
The market is further expected to reach a value of INR 4,653 Billion by 2024
GHEE MARKET IN INDIA

6. PATANJALI GHEE
• Ghee is commonly used in India and
Middle Eastern countries and is one of
the classes of clarified butter.
Traditionally ghee is made from cow’s
milk which is considered sacred in the
Hindu religion. It is a major ingredient in
the Hindu kitchen and is majorly used
on chapatis in Northern India. While
ghee has a lot more uses rather than
just in the kitchen.
• Patanjali Ghee is 100% butterfat and
primarily contains butter, milk proteins
and water. It is a great alternative to
butter and tastes very well. As it is low
in fat, ghee makes you healthier and
can also reduce cholesterol in
intestines.

7. Baba Ramdev-led Patanjali Ayurved on Tuesday said it has achieved a revenue of Rs
3,562 crore in April-September 2019-20

8. PRODUCT
• Healthy and nutritious product for all age group
• Good Quality and safe Packaging of product with Brand value
PRICING
• Value based pricing and
• Alignment of cost as per the competitors so that customers can switch from
existing brand and adopt their brands
PLACE
• Product available at distribution center and retail outlets (Arogya Kendra,
Chikitsalyas)
• Both online and offline availability
PROMOTION
• Personal branding by Baba Ramdev, Yoga shows, Yoga day ambassador Banners,
Media advertisement (TV Channels) , Social media marketing (Millions of
followers on twitter, facebook and YouTube)

9. STRENGTHS
•Founding father Baba Ramdev
•Word of mouth advertising
•Natural and herbal products
•Ghee marketed as Pure cow’s ghee
•Made in INDIA products
THREATS
•Negative publicity
•Controversies
•Increased competition by brands
like Amul, Mother dairy in ghee
segment
•New market entrants
OPPORTUNITIES
•Organic products –natural and
herbal
•Global market
•Rural market expansion
•Diversifying products
•Strategic tie-ups
WEAKNESSES
•Reliance on Baba Ramdev
•Limited margins for distributors
•Adulteration in ghee
•Limited presence in International
market

10. POLITICAL
•Baba Ramdev is very
well connected to
politics
• Political Relations helps
PATANJALI stand strong
in the business setup
ECONOMICAL
Made in India concept
followed, affordable
to middle class
SOCIAL
Popularity of Yoga,
Sentiments of public
attached with Baba
Ramdev, Health
consciousness
segmentation
TECHNOLOGICAL
Mobility & e-
commerce, transfer
of technology from
DRDO, technological
advancement in
medicine
LEGAL
•Several Laws governing
Patanjali like Medicine Control
Act, 1970, Drugs and Cosmetic
Act, 1940
•Actions in case of unlawful
activities
Eg. CORONIL
ENVIRONMENT
Eco friendly products
for example
Detergents, Natural
products with the
help of Bio-research
PESTLE ANALYSIS

11. • Key Countries like UK, US, Nepal, Dubai
• Online & Offline stores in IndiaGeographic
• All age groups except those with medical conditions, every
gender, family size and income group consume Patanjali gheeDemographic
• Different Personality, values, class and lifestyle of people have
access and like Patanjali gheePsychographic
Behavioral
• People have trust in the brand because of the value
created and brand image
• Spending habits and status have less affect and there
is high loyalty
MARKET SEGMENTATION

12. • Urban and upmarket rural.
• Parents of Kids and grown ups
• Age bracket of 20 Year – 40 Years
• Aspiring sports / fitness enthusiast
TARGETING

13. • PATANJALI positioned ghee in minds of consumers on the basis of two things:
1. The brand slogan of Patanjali is “Prakriti ka Aashirwaad” which means Blessings
of Nature. Patanjali is positioned as “Natural Products available at affordable
prices”.
2. The 2nd positioning plank is that of “Swadeshi Make” (Made in India)

14. Company Price (1Kg) Tagline USP
Patanjali 590 Prakriti ka Aashirvaad Natural and Pure, Swadeshi
Amul 520 Ek chammach amul ghee One spoon a day for better
digestion, glowing skin. And
energy
Aashirwaad 575 Mehek itni khaas, lae
sabko paas
SloCook Process
Gowardhan 585 Baat hai Khushi Ki Have Gowardhan Ghee when
occasion of Happiness
Mother Dairy 530 No Advertisement Great Taste
Good source of energy
Goodness of vitamin A
According to data with AdEx India, a division of TAM Media Research, Patanjali was the
third biggest FMCG advertiser in India in 2016, behind HUL and Dettol-maker Reckitt
Benckiser.
Between January and July of 2018, Patanjali had slipped to 11th place. It has
now further dropped to 40th rank in the same period of 2019.
COMPETITOR ANALYSIS

15. GROWTH
Owing to the spike in in-home consumption amid the corona virus
outbreak, Baba Ramdev's Patanjali Ayurved clocked its highest-ever
revenues in Q1FY21.Categories like ghee, toothpaste, and atta saw a
spike in demand in the last 3-4 months.
Patanjali Ayurved is also working on improving its direct distribution
reach and is in talks with retailers to install POS machines at outlets.
With a large number of orders coming in from the online space, Patanjali
Ayurved expects about 20 percent of its revenues to come from the digital
channel in 2-3 years. To accelerate growth through this channel, Patanjali
launched a trial version of its 'Order Me' app.
Haridwar-based Patanjali group, which has acquired debt-ridden
Ruchi Soya, expects to have a turnover of Rs 35,000-Rs 40,000 crore in
the next financial year and to become the largest company in the
FMCG sector in the coming years replacing market leader HUL, said
Yoga Guru Ramdev

16. PORTER’s 5 FORCE MODEL
1. Competition in the industry is High to Moderate.
• Patanjali has stiff competition with Amul, Mother dairy, Gowardhan, Others. Amul’s market share in Ghee is
around 20pc while that of Patanjali is 10pc. Patanjali is slowly catching up with Amul in terms of market share for
Ghee. Competitors are using different methods for capturing the market. For increasing the rural consumption,
Parag Milk Foods has launched sachets priced at Rs.5 for 9 ml and Rs.10 for 18 ml. These sachets are meant for
one-time use.
2. Threats of new entrants into the industry is Moderate to Low.
• Rise and growth of Patanjali has attracted new entrants in the market. ITC is the latest entrant in the market
under the brand name ‘Aashirvaad Svasti’. The brand has adopted regional approach to grow its business. It is
currently present in Southern market. Ruchi Group, India’s largest edible oil player, has acquired ghee & milk
powder brand Anik.
3. Bargaining power of suppliers is High to Moderate.
• Supply of Cow milk is limited in comparison to Buffalo milk. Buffalo milk account for largest share of the total
milk produced in the country.
4. Bargaining power of customers is High to Moderate.
• Brand loyalty is very low for Ghee. Consumers can switch brand easily or can move to potential substitutes
easily.
5. Threat of substitute is Moderate to Low.
• Olive Oil, Canola Oil, Refined oil, mustard oil & other fancy Oils are potential substitutes for ghee. Olive oil and
Canola Oil act as competitors as they are projected as oils which are better for health can help you to shed
weight and reduce liver fat, lipids and triglycerides. It will take some time before new products can have mass
appeal.

17. KEY FINDINGS FROM SURVEY
• Mostly respondents consume Patanjali food products in comparison to other
varieties available.
• 40% of the respondents consider ghee of good quality in comparison to just 8% who
consider ghee of poor quality.
• Two third of the consumers do not consume Patanjali ghee
• One third of the respondents consume Patanjali Products more than once in a week
whereas another third of the respondents prefer to consume it only occasionally
• Nearly 40% of respondents prefer Patanjali Ghee because it is a made in India brand
• Majority of the respondents are aware of different products of Patanjali.
• Approximately one-third respondents agree that Patanjali is adulterated.
• Almost half of the respondents have had a change in mindset after corona debacle
• Approximately 50% of the respondents think that a big brand like Patanjali
manipulates facts and figures

18. CONSUMPTION
OF GHEE
FREQUENCY OF
CONSUMPTION
CONSUMPTION
OF PRODUCTS

19. RATING THE
QUALITY OF GHEE
RANKING
AGREE
DISAGREE

20. •Value based strategy
•Word-of-mouth
Strategy
•Paid Advertising
MARKET STRATEGY
1. Quick development of products after seeing an opportunity in the competitor’s
product
eg. After Maggi Debacle and Corona Virus Outbreak
2. The price of Patanjali ghee is higher as compared to the other substitutes by its
competitors.
3. Excessive reliance on Baba Ramdev for word-of-mouth marketing which can be
a drawback.
GAPS

21. RECOMMENDATIONS
1. The user mindset is that the product is adulterated not pure however it has
passed the adulteration test it have lost the trust of user which needs to be
changed through more transparency with the quality & production details of
the products.
2. Positive and specific market practice instead of excess marketing of few
products.
3. Analysing the needs and wants of the end consumer through R&D before
directly launching the product on previous analysis basis as the market is ever
changing.
4. More outlets of Patanjali nearby the customers to provide accessibility and
availability as there was shortage of many products and excess of many others
in the store and Patanjali have started working towards resolving it by
maintaining adequate inventory and supply chain.
5. The Patanjali have its own app for grocery but is not used by most of the users
because of the bad user interface and many technical problems related to
location and payments. The Brand needs to work on improving the app for
better use specially with the increasing demand and need for online shopping.

22. THANK YOU