Patanjali was founded in 2006 by yoga guru Baba Ramdev and Acharya Balakrishna as a private company to uplift farmers and promote healthy lifestyles in India. It has since grown to a 5000 crore company posing threats to established FMCG brands. Patanjali utilizes Baba Ramdev's popularity and appeals to nationalism by promoting ayurvedic products. However, it faces challenges from its reliance on Ramdev, limited manufacturing units, and inability to expand its traditional Ayurvedic positioning to southern and younger markets.
2. Patanjali- A Revolution
• Patanjali ayurveda was formed in january 2006 as a private limited
company by yoga guru BABA Ramdev and his partner shri Acharya
Balakrishna ji which is converted to public limited in 2007.
• The vision was to uplift the condition of farmers and at the same
time make Indian masses aware of healthy lifestyle.
• In almost 12 years, the homegrown company has grown to 5000
crore company and is posing threats to many established
companies in FMCG sector and is now one of the leading sector in
FMCG.
3. Strengths
1. Strong brand ambassador - Baba
Ramdev
2. Strong Sense of Patriotism
3. Ayurveda and Herbal Brand
4. Keeping up with the latest trends
5. Strong Distribution
Channels.
Weaknesses
1. Over dependency on Ramdev
2. A low number of manufacturing
units
3. Penetration Pricing Strategy is not
viable in the long-term
4. Low Distributor Margins
5. Product Dependence
Opportunities
1. Growth in Demand for Organic
Products
2. Expansion into the rural market
3. Global Expansion
4. Strategic Tie-ups
5. Diversification
Threats
1. Competitive Environment of
the Indian Market
2. Impact of a possible poor reap
SWOT
4. • GEOGRAPHIC (NORTH & SOUTH INDIA)
• DEMOGRAPHIC (BASED ON AGE)
• BEHAVIORIAL (BASED ON LIFESTYLE AND TYPES OF
PRDUCTS USED)
• PSYCHOGRAPHIC
SEGMENTATION
• COMPETING IN WHOLE FMCG PRODUCTS CATERING
WHOLE POPULATION (TOTAL MARKET COVERAGE
TARGETING STRATEGY)
• INFLUENCERS ARE ELDERLY AND HOUSE WIVES
TARGETTING
• PROVIDING HEALTHIER, SAFER AND AYURVEDIC
PRODUCTS
• IDEA OF “SWADESHI” PRODUCTS BY BABA RAMDEV
POSITIONING
STP Of Patanjali
5. Target Audience and Market
Target Audience
• Targeting mostly people of age group of 35 & above
• Also, people of middle class or lower-middle class
• Unable to attract younger generations
• May seriously impact growth after a certain point
Target Market
• Very successful to capture the North-Indian market
• But unable to influence south Indian market
• Packaging as per South-Indian preference can help to grow
6. Marketing Mix
1. PRODUCT :- Operates in 4 major
categories:-
• Ayurvedic health products
• Food Product and Processes
• Skin – care product
• Home – care products.
Massive Product Range
Vast Product Portfolio
Getting into Yoga -Wear
2. PRICE :- 15-30 % less price because
of less Advertising and Promotion
spend versus other companies. For
eg, price of 500gm Dabur honey is
Rs.199 as compared to Rs.145 of
Patanjali.
8. Customer Value Patanjali Is Providing
Pocket-friendly pricing-
Low pricing wins the heart of Indian consumers.
Emotional attachment towards country-
The Swadeshi feeling generated by claiming the
use of Indian ingredients-Ayurveda in its products.
Huge variety of products-
From daily needs to beauty and health care, it has
become the leader in FMCG with wide product variation.
9. Serving distribution channels-
Patanjali uses an App “GOFRUGAL” to help the
distributors keep updating their stock or to order any new stock that will be
directly conveyed to the company through the App.
10. Company Value Uniqueness Inimitable
Feature
Non-Substitutable
Quality Products at
low cost
Huge range of
Products
Direct sourcing
from farmers and
Cost control
Trade margins and
Price
Unique Ayurveda/Yoga
association
(Ram Dev Baba)
Strong Product
Portfolio Brand
Strongest
Distribution
Scale and global
expertise
Legacy Top-of-mind
Recall
Innovative
Products
Good Distribution
Network
Scale and global
expertise
Brand Legacy
Ayurveda backed
up by Science
Ayurveda backed
up by Science
Scale and global
expertise
Brand Legacy
Competitor and Competitive Advantage
12. Preference of Patanjali Products
Patanjali Ghee - 21
Patanjali Pulses - 4
Source- Data surveyed from family and friends
13. Consumer Perception of Patanjali Products Being Natural, Herbal And Ayurvedic
Source- Data surveyed from family and friends
14. Profit Margin
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Chyawanprash Baby Care Pooja Saaman Juice Cosmetics Patanjali Atta,
Patanjali
Basmati Rice
Ghee Patanjali
HealthCare
• Average profit margin ranges between 10 – 15% on MRP for
retailers Source- Data surveyed from family and friends
15. Marketing strategies of Patanjali
1.Patanjali swadeshi samriddhi card- Providing insurance. The cardholder or
card holder's nominee will get upto Rs. 5.00 Lacs in case of death or up to Rs.
2.5Lacs in case of permanent disability.
2.Targeting health conscious people- In recent times, people have become
more health conscious which is evident from the fact that many companies are
investing money in organic and Ayurveda products.
3.Less price- Patanjali products are available at an attractive discount as
compared to its competition.
16. 4.Strong distribution network- Patanjali Ayurveda products are also available in local
retail stores as well as modern trade stores including Reliance retail, hyper city and Star
Bazaar apart from online channels.
5.Word-of-mouth promotion- During the introduction stage, Patanjali followed a
unique word-of-mouth publicity model and the entire revenue was without any
advertising.
6.Brand ambassador Baba Ramdev- Yoga Guru Baba Ramdev being the promoter of
the herbal products produced by Patanjali is the vital advantage that Patanjali has over
any other FMCG company in India.
17. Future Marketing Strategies
Technology based solution: A mobile App integrating a
wearable device with Fitness with Yoga and Dietary features
together.
Can try to introduce new face along with Baba Ramdev who
is associated with Ayurveda or Yoga.
Introduce a return policy for distributors.
Using South Indian dialects for packaging and promotion.
Can introduce instant mixes for dishes.
18. • No return policy
• Stock out
• Irregular supply
• Hindi packaging vs South Indian
sales
• Over Dependency On Baba
Ramdev
• Unfocused Product Launch
• Lack of transparency
• Quality standard issues
Critics
