Baba Ramdev's decades-long promotion of yoga and Ayurveda created a large, loyal consumer base when Patanjali was launched. Patanjali offers affordable herbal products that appeal to Indian nationalism while providing healthier alternatives to mainstream brands. Through word-of-mouth promotion, large production facilities, and an emphasis on natural ingredients, Patanjali has achieved great success, becoming a top FMCG company in India within only 5 years and posing a major threat to multinational corporations.

1. DECODING THE SUCCESS STRATEGIES
OF PATANJALI
Presented By- Pooja Patel
Date: 27th April 2017

3. =
“Neither I Own a Single Share
Of Patanjali Ayurved, Nor Do I
Take a
Single Penny to Promote it”-
Baba Ramdev

4. BABA RAMDEV: BRAND
 Today, more than one billion people know Him in this country, and the whole
world knows Him as brand Ambasador of Yoga and Ayurveda.
 Success root of Patanjali Ayurveda goes back decades when Baba Ramdev
started his campaign of Yoga / Bharat Swabhiman / Swadeshi Abhiyan.
 During his campaign, a message was seeded deeply in subconscious mind
over the years by making aware people for Healthy life with swadeshi
products.
 Baba Ramdev not only prepared a huge future consumer class by
brainwashing but successfully turned these class of consumer later on on
launching of his brands for initial demand creation which most of
company fails. All these took more than decades time.
 “People trust us, and that’s what is making Patanjali big,” - Baba Ramdev

5. INTRODUCTION
 Private Limited Company – Indian FMCG Company
 Established in 2006
 Founder: Acharya Balkrishna, Baba Ramdev
 Objective: Establishing science of Ayurveda in
accordance and coordination with the latest technology
and ancient wisdom.
 Headquarter:Haridwar
 Net Worth: Rs.30 Billion
 Patanjali Ayurved has launched several products without
any market research unlike other companies, “We don’t
need to follow the standard marketing practices. If your
basics are strong, then nobody can beat you.” - Acharya
Balkrishna

6. VISION AND MISSION
 To be Top Ayurveda
Company
 To Re-introduce Indian
Ayurveda
 To Crack world Attraction
to Our India
 To work For welfare of
Humanity
 To reinvent our
Traditional Knowledge of
Yoga and Ayurveda
 To Restart Swadeshi
Movement
 To Produce Good Quality
Products at cheap Rates
 To Introduce Indian
Ayurveda To this Modern
World
 To Crack Maximum
Market Share
Vision Mission

7. PRODUCTS OFFERED BY PATANJALI:
444PRODUCTS

8. PRODUCT LINE

10. SWOT ANALYSIS:
Strenghts Weakness Opportunities Threats
Brand Name No Standard
Advestising
Possibility of
Becoming World’s
Top MNC
Govt. Regulation
TQM Lower
Concentration on
Other top Countries
Expansion Maximum Taxes
Excellent Marketing
Strategy
Maximum Marketing
Share
Lack of Support
From Foreign
Govts.
Famous Personlity
Affordable Price
and Charming
Product

11. SEGMENT, TARGET GROUP AND POSITIONING
• Segment:
• People Looking
for Healthy
FMCG Products
• Target Group:
Middle and Upper
Middle Class
Families who
Prefer Ayurvedic
Products
• Positioning:
Patanjali offers
Healthier and
Safer Products in
FMCG Category

12. COMPETITION
Example:
 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.

13. ACHIEVEMENT:
 Gaint In FMCG in Only 5 Years
 Accomplish Make In India Concept.
 Highest Turnover of Rs. 5000 cr
 Maximum Outlet in Minimum Time :15000 exclusive
outlets
 Biggest Swadeshi Movement
 Tough Competition for MNC and Indian Conterparts

14. REASONS BEHIND SUCCESS OF PATANJALI
 Major Advantage to Patanjali is it is associated with Famous
Personality Baba Ramdev.
 Product Strategy: Beyond Patanjali’s flagship ayurvedic range of
products, their strategy is to simply create products that people are
already used to using and not try to innovate with the core positioning of
the product (think cereals, biscuits etc). Even the product names are very
similar. This is very clever, as it significantly reduces the friction for the
end consumer, as this requires no change in their behaviour if they opt
for a Patanjali products.
 Timing: The consumer awareness about impact of harmful chemicals, in
what they eat and use, has been growing rapidly and is an at a all time
high. So there couldn’t have been a better time to launch a brand that
offers “no harmful chemicals”.
 Loyal Community: While one might be tempted to believe that Patanjali
has grown exponentially within such a short span of time, the fact is that
it is a result of around 20 years of relentless work around Yoga and
Ayurveda by Ramdev. In those 20 years Ramdev has built a extremely
loyal community of followers.

15.  Digital marketing: https://www.patanjaliayurved.net is their
main e commerce website. The Entire range is on display
here and can be bought online. None of the MNCs
actually sell their products online.
 Distribution Strategy: “Own Distribution Channel and low
Advertisement Spend” 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.
 Competitive Price: Pricing. Pricing plays an extremely
important role in putting Patanjali Ayurved ahead of its fierce
competitors. 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
penetrative pricing.Plus, if the ingredients are natural and
domestic, the cost of the product is lesser too.

16. PATANJALI’S ONLINE PORTAL:

17.  Swadeshi Advantage: The ambitious plans of Patanjali
are in accordance with Make in India Concept, giving it a
stronger moral pedestal to stand on as compared to as
compared to the MNCs. Patanjali’s product line in mostly
Ayurveda and even its Shampoos and Toothpaste are produced
from natural ingredients hinting at a healthier lifestyle. In short, its
product appeal to Indian Nationalism and a sense of Swadeshi,
which might help it in getting an even greater market share.
 Brand Strategy: Patanjali says: “Pick our product - it is the
same product with no harmful chemicals. Plus by buying our
products, you are ensuring the money you spend stays in
India”. Even if you look at their advertisements, they don’t
promote individual products . Instead, they promote the entire
brand which helps them save marketing and advertising costs
as well.

18.  Simple packaging, that gives it a ‘natural’ look: Patanjali sells its
products with a very simple packaging. With a product like Patanjali,
where the message is to promote ‘Ayurveda’ and ‘Health’, simple
packaging can be a very effective way of promotion and that is why
the company is able to do miracles With a ‘natural’ look consumers
get a feeling of health and wellness.
 Word-of-mouth promotion: Advertising and promotions account for
12-20% of revenue. During the introduction stage, Patanjali followed
a unique word-of-mouth publicity model . It was because of the brand
loyalty of its customers that the word-of-mouth promotion proved
successful.
 Increasing number of health-conscious people: People have
become more health conscious. Patanjali, with its Ayurvedic product
line, is able to somehow capitalise on this changing consumer
behaviour and hence capture more market share.
 Emotional satisfaction and feeling proud in some way i.e. we are
using our own product / we are using natural product / we are
contributing for our country /culture by non purchasing MNC’s
Products.

19.  State of the manufacturing facility and food
park: The world’s largest food park opened 20km from the holy city of Haridwar,
Uttarakhand, India. Patanjali Food and Herbal Park is spread across ~95 acres in first
phase; and has generated direct employment for 7,000 people. The construction started
in February 2009 and was completed in a record time of less than a year. Construction
work included the building of warehouses, research and development centres, variable
humidity stores, multi-commodity cold storages, pre-cooling chamber, and a ripening
chamber.


20. CONCLUSION
 Patanjali has given a headache to many marketers
with its unconventional ways of marketing. It has
disrupted the whole FMCG sector and bought a
revolution in the industry in a very short span of
time. A point to note is that many people are buying
Patanjali products due to the hedonic value
attached to the products. Hence, Patanjali (unlike
its competitors) is attracting brand-loyal customers
and not price-sensitive customers.

21. Thank You