Patanjali Ayurved Limited was started in 2007 and has grown rapidly to become a leading Indian FMCG brand. It manufactures over 400 products including cosmetics, food, and medicines. Patanjali pursues an Ayurvedic approach and sells through over 15,000 exclusive outlets as well as online. It promotes through yoga classes led by Baba Ramdev, television appearances, and online promotions. Key to Patanjali's success has been competitive prices, product differentiation using Ayurveda, and support of Baba Ramdev's large following. It aims to further expand sales through online platforms and new product categories.

1. Case study of
Rising Indian
FMCG Brand
Patanjali
Prepared by:
Suhag Mistri
(Business Consultant MMTCS)

2. Objective:
– To share 4 P’s of Rising Indian FMCG brand
Patanjali.

3. About the Organization
– Patanjali ayurved limited, started in 2007, (Initiated in 1997)
– Who owns the company?:
– Acharya Balkrishna
– Former CEO SK patra, an IIT-IIMA alumnus, left the company in 2014
– Turnover: 5,000 crore (US$740 million) for the fiscal 2015–16₹
– Patanjali also sells its products online
– Patanjali ayurveda has tied up with pittie group and kishore biyani's future group (30 cr.) On 9
October 2015.
– Claims the company is not for business but ‘social change’
– In 2016, the patanjali food and herbal park was given a full-time security cover of 35 armed central
industrial security force (CISF) commandos.
– The park will be the eighth private institute in India to be guarded by cisf paramilitary forces.
–

4. Product Portfolio
– The company manufactures 444 products including 45 types of cosmetic
products and 30 types of food products.
– Invest over Rs1,150 crore in the current fiscal to set up six processing and one
R&D center

6. Category wise sales

7. Revenues

9. Cash Flow
– From YOGA:
– Rs. 11 lakh to become a member of Patanjali Yogpeeth, Ramdev's flagship yoga
institute
– Rs. 5 lakh for founder members
– Rs. 2.5 lakh for patron members
– Rs. 1 lakh for life members and so on.
– Current turnover of Patanjali Rs. 5000 Crore
– Year 2015 Profit after tax Rs. 316 Cr.
– Donation in trust (Rs 87.89 crore in FY14)

10. Customer Profiling:
– Health conscious consumer
– Want qualitative products at cheaper prices (Compared to other companies)
– Indians who want to use Indian products and help national development
(‘Bharat Swabhiman Andolan’ )
– Those who want to use Ayurveda (Safe) products which has natural
advantages
– Baba Ramdev’s Followers (20 Crore attendees till date through 5 lakh Yoga
teachers)

12. Price:

13. Place:
– Patanjali Ayurved sells through nearly:
– 15,000 exclusive outlets (Will be grown to 1,00,000)
– 5000 franchisee outlets till May 2016.
– Big Bazaar: 30 Cr. Monthly
– Online Sales:

14. Promotion
– Unsolved problem: Consumers are somewhat unsure of the benefits of the current products
– Solution: Ayurvaidic products from expert of Ayurveda and functioning of human body (Yoga)
– Yoga Classes
– Tele-Vision (All Age group)
– Online promotions (On site)
– Soon on Amazon
– Two Brand ambassador:
– Baba Ramdev (Physical fitness expert)
– Acharya Balkrishna (Ayurveda expert)
– Price Competitiveness (Word of mouth)
– Product Differentiation
– Appointed: McCann and Mudra global consultancy agency for promotion (Advertisement on TV)

16. Key Success factors
– More than 1 lakh free yoga classes every day
– Database of camp visitors
– Year 2002 : aastha television shows
– Partnership with various prominent T.V channels world wide
– High profits (local sourcing) is minimum marketing expenses
– Support for narendra modi during the 2014 lok sabha elections (advantages under
make in india)
– Cash cow products:
– Ghee, honey and toothpaste

17. In Process:
– Reliance Retail store, Reliance Fresh entered into agreement and offered exclusive kiosks.
– Expand sales to online and bring it on e-commerce majors like Amazon.
– Patanjali will focus on six big product portfolios to drive its growth:
– A breakfast range including cornflakes,
– 'healthy' noodles,
– Ghee,
– Kesh Kanti (hair care products),
– Dant Kanti (oral care products), which is already a Rs 250 crore range, and
– Chaywanprash.
– Power Vita as a direct competitor to brands like Bournvita (Market size of the malted food
drinks business in India is Rs. 20,000 crore )
– Hiring executives from FMCG rivals.

18. Sources:
– Times of India
– Economic times
– Simplus Information Services Pvt. Ltd.
– Wikipedia
– Patanjali Website