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Patanjali's Runaway Success
- Lessons in Consumer
Goods Marketing
Patanjali has emerged as a disruptive force in the Consumer Goods space. Within a
short span of time, the company has rolled out over 350 products (including variants)
across key Consumer Goods categories giving incumbents a run for their money.
Patanjali's Secret Sauce: The Marketing Mix
PRODUCT PRICE
PLACE PROMOTION
Grocery
Personal Care
Nutrition &
Supplements
Cattle Feed
Processed Food
Natural/Ayurvedic Value-based Pricing
Higher margins for
retailers, priced lower
than competition by
up to 30%
Yoga camps to create
awareness and
propagate Yoga for
wellness, YouTube
Channel, Social Media
Outreach, TVCs
Franchisee stores,
Super & Hyper-
markets, Online
Marketplace
No of TVCs
No of Times TVCs Played
17,676
15,985
15,573
15,495
13,495
13,178
Patanjali
Cadbury
Parle
Horlicks
Pond's
Fair & Lovely
0 5000 10000 15000 20000
Source: BARC.
Date Range: 23rd Jan - 29th Jan, 2016
17,676
(InCrores)
Revenue (in Cr.) Net Profit (in Cr.) Net Profit Margin (%)
0
2000
4000
6000
The Growth Story So Far
(in%)
Revenue Contribution Across
Categories
Revenue Contribution (in %) Growth Rate
Food
Healthcare
Toileteries
Dental Products
Haircare
Cosmetics
0
100
36.78%
19.13%
14.56% 10.93% 10.78% 7.38%
99.57%
30.58%
53.77%
45.86% 51.35%
40.70%
2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16
453 849 1,191
2,006
5,000
56 91
186 317
12.36%
10.72%
15.62%
15.80%
Sources:
http://www.livemint.com/Companies/hLEBBx17cFY5rPjTjmIP9O/The-Patanjali-
story.html
http://www.hindustantimes.com/Images/popup/2015/11/gfx_ramdev_2.jpg
http://timesofindia.indiatimes.com/photo/49202265.cms
Copyright © 2016 ICFAI E.D.G.E. All Rights Reserved.
Performance Against Competition - Sales & Growth Rate
5,431 4,681 4,430 3,982 2,334 2,031
FY 15 Sales (in Cr.)
(in%)
Compounded Annual Growth Rate (in
%)
64.5
38.9
22.7 20
15.2 13.2 12.9
Patanjali
Godrej Consumer
P&G
Dabur
Colgate
Emami
HUL
0
25
50
75
Dabur
Marico
Godrej Cons.
Colgate
Palmolive
P&G
Emami

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  • 1. Patanjali's Runaway Success - Lessons in Consumer Goods Marketing Patanjali has emerged as a disruptive force in the Consumer Goods space. Within a short span of time, the company has rolled out over 350 products (including variants) across key Consumer Goods categories giving incumbents a run for their money. Patanjali's Secret Sauce: The Marketing Mix PRODUCT PRICE PLACE PROMOTION Grocery Personal Care Nutrition & Supplements Cattle Feed Processed Food Natural/Ayurvedic Value-based Pricing Higher margins for retailers, priced lower than competition by up to 30% Yoga camps to create awareness and propagate Yoga for wellness, YouTube Channel, Social Media Outreach, TVCs Franchisee stores, Super & Hyper- markets, Online Marketplace No of TVCs No of Times TVCs Played 17,676 15,985 15,573 15,495 13,495 13,178 Patanjali Cadbury Parle Horlicks Pond's Fair & Lovely 0 5000 10000 15000 20000 Source: BARC. Date Range: 23rd Jan - 29th Jan, 2016 17,676 (InCrores) Revenue (in Cr.) Net Profit (in Cr.) Net Profit Margin (%) 0 2000 4000 6000 The Growth Story So Far (in%) Revenue Contribution Across Categories Revenue Contribution (in %) Growth Rate Food Healthcare Toileteries Dental Products Haircare Cosmetics 0 100 36.78% 19.13% 14.56% 10.93% 10.78% 7.38% 99.57% 30.58% 53.77% 45.86% 51.35% 40.70% 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 453 849 1,191 2,006 5,000 56 91 186 317 12.36% 10.72% 15.62% 15.80% Sources: http://www.livemint.com/Companies/hLEBBx17cFY5rPjTjmIP9O/The-Patanjali- story.html http://www.hindustantimes.com/Images/popup/2015/11/gfx_ramdev_2.jpg http://timesofindia.indiatimes.com/photo/49202265.cms Copyright © 2016 ICFAI E.D.G.E. All Rights Reserved. Performance Against Competition - Sales & Growth Rate 5,431 4,681 4,430 3,982 2,334 2,031 FY 15 Sales (in Cr.) (in%) Compounded Annual Growth Rate (in %) 64.5 38.9 22.7 20 15.2 13.2 12.9 Patanjali Godrej Consumer P&G Dabur Colgate Emami HUL 0 25 50 75 Dabur Marico Godrej Cons. Colgate Palmolive P&G Emami