1.

INTRODUCTION TO THE STUDY

The project entitled "MARKETING STRATEGIES OF PATANJALI

AYURVED" provides a comprehensive analysis regarding the performance of the
company and its products in the Market.

The project covers the aspects like Patanjali got success in such a competitive
market in a very short span of time and how competition from Patanjali prompts
FMCGs to hit back. The project covers the objective of the study that what is the
main motive behind the study on Patanjali Ayurved.

Through the project you will get know about that how Patanjali Ayurved
become a giant FMCG within 5 years. And how the Patanjali accomplished "Make
in India" concept. And how Patanjali is becoming a tough competitor in the market
for the MNCs and the Indian companies.

Patanjali is following the biggest "Swadeshi Movement". Patanjali's vision

and mission are discussed in the following project. And you will get to know about
the marketing mix of Patanjali Ayurved and SWOT analysis by Patanjali Ayurved.

And most important, the unique selling proposition (USP) of Patanjali

Ayurved. Project is concluded with the conclusion and suggestions.

1
 PATANJALI AYURVED
Patanjali Ayurved Limited, a Company registered under the Company's
Act, 1956 having its Registered Office at D-26, Pushpanjali, Bijwasan Enclave, New
Delhi 110061 and Works: 1. Unit-I at D-38, Industrial Area, Haridwar, Uttarakhand
2.Unit-II at YOGPEETH Maharishi Dayanand Gram, Delhi Highway, Haridwar,
and 3.Unit-IIIVill-Padartha, Haridwar, Uttarakhand, India.
The Company was originally formed as a Private Limited Company on 13th
January, 2006 and subsequently converted into Public Limited Company on 25th
June, 2007. Presently, the Board of Directors of the Company is managed by Sri
Acharya BAL KRISHNAJI as its Managing Director and Swami Muktanandji and
Sri Ajay Kumar Arya, are the Directors of the Company.

The Memorandum and Articles of Association of the Company, contains:

To manufacture, process, refine, formulate, import, export and deal in all
kinds of Ayurvedic and herbal Products, Life Savings Drugs etc. apart from so many
other related objects. The concept for forming this Company “hand and many more
suffering and leading unhealthy urban life style on the other was to "link the rising
destiny of millions of rural masses on the other.”
The View of the Respected Swami Ramdevji, the renowned Yoga Guru and
Sri Acharya Balkrishnaji, made the concept into writing through formation of the
Company "Patanjali Ayurved Ltd” is a company that functions like all other
companies under the Rules and Regulations of the Company Law Affairs and several
other Laws applicable for these type of Industries.
At micro level the challenge is no less tough. Along with PRANAYAM, the
wisdom of our ancient sages, the organic food products and herbal medicines
churned out of this unit, trying to undertake the threats to fight out the dreaded and

2
deadly diseases like cancer and AIDS. Claim for having found a lasting cure for
many other relatively more excessive but equally tormenting diseases like Diabetes,
Arthritis and Thyroid is already entrenched with thousands of patients cured with
fulfillment.
Superior quality of our products at a fair price is not the only concern that we
have. Getting our patients rid of their diseases is again too limited a goal for us to
seek. A holistic approach to improve the quality of life of all beings, world over, is
the purpose behind our being.
Getting eliminate the food we consume of the pollutants in the form of
poisonous pesticides and chemical fertilizers that our farmers use, is a goal that we
strive to accomplish by providing our people the eatables that are cultivated in
organic and natural manures and pest repellents.
The bringing of Ayurvedic medicines along with Pranayama, Asana, pure
food and natural drinks is a package perhaps the world was waiting for long, for the
two saints in the form of Swami Ramdevji and Acharya Balkrishnaji.
Units of Patanjali Ayurved Limited:
Already 12 successful units running including units for Packaging material
and Containers e.g. flour mill, candy plant, herbal cosmetic and detergent plants,
digestives unit, juice plant etc.
 Co-packing facility-Tetra Pak
 Multi-fruit juice processing line
 Neutraceutical Processing Line
Sale Channels:
Patanjali brand with national and international reach, more than 85,000 retail
channels accessible to Patanjali products.

3
 Employment Generation:
Currently Patanjali Ayurved Limited employs more than 6000 laborers in its
processing activities more than 400 sales staff.
Patanjali Ayurved Limited has more than 300 technically qualified
employees. Patanjali Ayurved Limited has provided more than 2,00,000
employment.

4
 Definitions of the Terms:

 Marketing:
Marketing is the subject and management of exchange relationships. The
American Marketing Association has defined marketing as "the activity, set of
institutions, and processes for creating. Communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large."
The techniques used in marketing include choosing target markets through
market analysis and market segmentation, as well as understanding methods of clout
on the consumer behavior.
From a societal point of view, marketing provides the link between a society's
material requirements and its economic patterns of response. This way marketing
satisfies these needs and wants through the advancement of exchange processes and
the building of long-term relationships.
In the case of nonprofit organization marketing, the aim is to deliver a message
about the organization's services to the applicable audience. Governments often
employ marketing to communicate messages with a social aspiration, such as a
public health or safety message, to citizens.

 Marketing Strategy:
A marketing strategy is a process or model to allow a company or organization
to focus limited resources on the best opportunities to increase sales and thereby
accomplish a sustainable competitive advantage.
Two Major Troop Of Marketing Strategies Can Be Distinguished:
(a) Strategies, which describe how to clout the relevant market. On the other
hand there are (b) Strategies, which describe, to which extend an organization
employs "power" or "force" to tackle market related issues.

5
 For (a) 4 different types can be differentiated:
 Segment Strategies: Which market in terms of product/customer-
combinations will be managed? Which products and /or services will be offered to
which customer segment?
 Strategies for Market Stimulation: Which marketing instruments
will be employed in order to develop certain preferences?
 Strategies for Market Itemization: Which fundamental market items
(in terms of structures) are useful? Does the organization employ mass marketing or
segment marketing techniques? Does the organization cover the entire market or
"only" parts of this market?
 Strategies for Market Areas: Which areal dimensions should be used
to implement a strategy?
For (b) 3 types can be distinguished, too:
 Pull Back Strategy: to make a strategic withdrawal (in military terms:
a fall back strategy)
 Assert Strategy: to assert and to extend a certain position.
 Competitive Strategy: to gain competitive advantage over its
competitors in the industry. It is aimed at creating defensive position in an industry
and generating a superior ROI (Return on Investment). Such type of strategies plays
a very important role when industry is very competitive and consumers are provided
with almost similar products.

 Marketing Mix:
Marketing involves a number of activities. To begin with, an organization may
decide on target group of customers to be served. Once the target group is decided,
the product is to be placed in the market by providing the appropriate product, price,

6
distribution and promotional efforts. These are to be combined or mixed in an
appropriate proportion so as to achieve the marketing goal. Such mix of product,
price, distribution and promotional efforts is known as Marketing Mix'.
According to Philip Kotler, "Marketing Mix is the set of controllable variables
that the firm can use to influence the buyer's response. The controllable variables in
this context refer to the 4 'P's [product, price, place (distribution) and promotion].
Each firm strives to build up such a composition of 4 P's, which can create highest
level of consumer satisfaction and at the same time meet its organizational
objectives.
Thus, this mix is assembled keeping in mind the needs of target customers,
and it varies from one organization to another depending upon its available resources
and marketing objectives.
Let us now have a brief idea about the four components of marketing mix.
 Product: Product refers to the goods and services offered by the
organization. A pair of shoes, a plate of dahi-vada, and a lipstick, all are
products. All these are purchased because they satisfy one or more of our
needs. We are paying not for the tangible product but for the benefit it will
provide. So, in simple words, product can be described as a bundle of
benefits which a marketer offers to the consumer for a price. While buying
a pair of shoes, we are actually buying comfort for our feet, while buying
a lipstick we are actually paying for beauty because lipstick is likely to
make us look good. Product can also take the form of a service like an air
travel telecommunication, etc. Thus, the term product refers to goods and
services offered by the organization for sale.
 Price: Price is the amount charged for a product or service. It is the second
most important element in the marketing mix. Fixing the price of the
product is a tricky job. Many factors like demand for a product, cost
7
 involved, consumer's ability to pay, prices charged by competitors for
similar products, government restrictions etc. have to be kept in mind
while fixing the price. In fact, pricing is a very crucial decision area as it
has its effect on demand for the product and also on the profitability of
the firm.
 Place: Goods are produced to be sold to the consumers. They must be
made available to the consumers at a place where they can conveniently
make purchase. Woolens are manufactured one large scale in Ludhiana
and you purchase them at a store from the nearby market in your town so,
it is necessary individuals and institutions like distributors, wholesalers
and retailers who constitute firm’s distribution network (also called a
channel of distribution). The organization has to decide whether to sell
directly to the retailer or through the distributors/wholesaler etc. It can
even plan to sell it directly to consumers.
 Promotion: If the product is manufactured keeping the consumer needs
in mind, is rightly priced and made available at outlets convenient to them
but the consumer is not made aware about its price, features, availability
etc., its marketing effort may not be successful. Therefore promotion is an
important ingredient of marketing mix as it refers to a process of
informing, persuading and influencing a consumer to make choice of the
product to be bought. Promotion is done through means of personal
selling, advertising, publicity and sales promotion. It is done mainly with
a view to provide information to prospective consumers about the
availability, characteristics and uses of a product. It arouses potential
consumer's interest in the product, compare it with competitors' product
and make his choice.

8
 2. COMPANY PROFILE

Patanjali Ayurved Limited is an Indian FMCG company. Manufacturing

units and headquarters are located in the industrial area of Haridwar while the
registered office is located at Delhi.
The company manufactures mineral and herbal products. It also has
manufacturing units in Nepal under the trademark Nepal Gramudhyog and imports
majority of herbs in India from Himalayas of Nepal. According to CLSA HSBC,
Patanjali is the fastest growing FMCG company in India. It is valued at RS.30
billion (US $ 470 million) and some predict revenues of RS.5,000 crore (US $
780 million) for the fiscal 2015–16. Patanjali declared its annual turnover of the
year 2016-17 to be estimated RS.10,216 crore (US $ 1.6 billion). Ramdev baba has
stated in his interview with CNN-News18 that profit from Patanjali Products goes
to charity.

9
Patanjali Ayurved Limited:

Type Private

Industry Consumer goods

Founded 2006

Ramdev Baba
Founder
Acharya Balkrishna

Headquarters Haridwar, Uttarakhand, India

South Asia and Middle East

List:
Area served
India

Nepal

10
 Bangladesh

Azerbaijan

Sri Lanka

Middle East

Foods, beverages, cleaning agents, personal care

Products
products, Ayurvedic medicine

Revenue Rs.10,561 crore (US$1.6 billion) (2016-17)

Number of
200,000 (2011–12)
employees

www.patanjaliayurved.net
Website
www.patanjaliayurved.org

11
 Product Catalogue

Dals And Pulses

Ghee, Mustard Oil
Grocery And Staples Edible Oil &Ghee
Atta, Besan, Others
Flour / Atta
Spices, Salt, Rice.
Staples Spices
Biscuits, Cookies,

Confectionery Candies, Honey, Papad,

Snacks & Breakfast Snacks, Namkeek,

Ready Food Ketchup, Pickles,
Sauces & Pickles
Sweets Murabba, Soan Papdi.

Apple, Amla, Litchi

Juices &Fruit Drinks
Beverages Squash, Sharbat
Sharbat & Squash

Face Cream, Lip Care,

Face Wash, Body Wash,
Face Care
Foot Care, Lotions,
Body Care
Shampoo, Conditioner,
Hair Care
Hair Oil, Hair Color,
Personal Care Sops And Hand wash
Hand Wash, Soaps,
Oral Care
Tooth Brush, Paste,
Make Up
Kajal, Shave Gel, Shave
Shaving And Grooming
Cream.

12
 Health Drinks,
Chyawanprash,
Health Care
Nutrition &Supplements
Digestives
Worship Related,
Households Cleaning &Washing,
Herbal Gulal

13
 2.1 Total Income Composition Of Patanjali Products And
Their Challenges

Total Income Composition

Food
Health care - 40%
ayurvedic
21%
FMCG
(cosmetics,
home care)
39%

This diagram shows the income composition of Patanjali Ayurved,

which shows that 21% of income is generated from health care ayurvedic
products of Patanjali, 40% of total income generated by Patanjali is from food
and beverages and around 39% of share of income is generated from
cosmetics and home care products of Patanjali.

14
 Challenges
 HUL and Dabur focusing back on Herbal.
 Late entrant to Advertising game.
 Noodle: a risky proposition? Scaling up and Global expansion.

15
2.2 Ramdev Expands Empire Beyond Yoga To FMCG, Business Poised
To Touch Rs. 2,000cr This Fiscal Year
Currently, Patanjali is
present in almost all categories
of personal care and food
products soaps, shampoos,
dental care, balms, skin creams,
biscuits, ghee, juices, honey,
Atta, mustard oil, masala, sugar
and much more going by current
turnover projections of Rs. 2,000 crore. This is despite the fact that most of
Patanjali's products are priced lower than its competitors.
What gives the company an edge is its very low expenses on
advertisements. In comparison, leading FMCG companies spend about 20-
30% of their sales on advertisements.
With the Patanjali brand's growing reach and popularity among
consumers, it's now being discussed in corporate boardrooms as well. This is
in sharp contrast to its quiet beginning in2007. As the demand for his products
grew, Baba Ramdev realized the huge scope within the FMCG sector and
started building the range, taking on deep-pocketed multinationals.

16
 2.3 Marketing Mix of Patanjali Ayurved

Founded in 2006 by Acharya BAL Krishna and Baba Ramdev, Patanjali

Ayurved is an Indian FMCG Company. Patanjali Ayurved happens to be the fastest
growing FMCG Company in India. Patanjali Ayurved imports herb from Himalayas
Nepal.

Patanjali is manufacturing its products in Nepal, working under the brand

name of Nepal Gramudhyog. Patanjali Ayurved is the India's fastest growing FMCG
3000 Crore and generated revenue of 5000 Crore for the fiscal year of 2015-16
Company is valued at Hindustan Uniliver and P&G are the FMCG companies,
whose market share has been potentially affected by Patanjali. P&G and Hindustan
Uniliver are on back foot and trying to pull customers back by providing huge
discounts and remarkable offers.

PRODUCTS PRICE
All Existing Value Based
Products + Herbal Pricing Alignment
Products to treat of Cost Customer
Cough & Cold & Competitors

PLACE PROMOTION
Franchisee Stores Yoga Shivir to
Super/Hyper create awareness
markets & Online YouTube Channel,
Marketplace (like Social Media to
souq.com target GULF
desertcart.ae) (MENA)

17
 2.3.1 Products in the Marketing Mix Of Patanjali Ayurved
Baba Ramdev is steadily pushing Indian people to start using Indian brands
and save the economic growth of the company. Patanjali is planning to take over all
reputed brands dealing in beverages and foods.

 The service (yoga) that Baba Ramdev is selling is the product.

 The product "Pranayama" is well suited for all irrespective of class, creed,
culture and hence this success.

 Swamiji's unique contribution has been to lead a healthy life through the
practice of simple breathing exercises understand and meet consumers'
needs and wants.

 The ambiance of Patanjali yogpeeth is world class.

 Swami Ramdev's Divya Medicines are claimed to be one hundred percent

natural, no or very little side effects.

 Medicines are available at a very low cost.

 Medicines can cure all the diseases from a simple cold to cancer.

Products Where Patanjali Is Present And Beating Competition Are:

 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 Ayurved is the best way to treat your gums and your
teeth.

18
 Patanjali Noodles: Patanjali Noodles rose to fame while Maggi was
away from the market and has done quite damage to Maggi, which once
been the king of Noodle's market.

19
 2.3.2. Pricing in the Marketing Mix of Patanjali Ayurved

Developing an effective pricing strategy remains the most important and

difficult part of the marketing process. For instance, a nominal 1 per cent increase in
price realization will boost net income by 6.40 per cent for Coca-Cola and 28.70 per
cent for Philips.

Baba Ramdev's fees of Pranayama is cheap in compare to other medical

treatment.

This is the cheapest and the only complete cure to most of the so called
incurable diseases like diabetes, cancer, HIV & AIDS too.

Product Patanjali’s Competitor’s

Quantity Competitor
Name Price Price

Cow Ghee 1ltr 450 710 Parsi Dairy

Saundarya Pears Face

60gm 60 80
Face Wash Wash

Honey 500gm 135 199 Dabur Honey

Kesh Kanti Head &

200gm 110 159
Shampoo Shoulder

Kanti Neem Himalaya

75gm 15 24
Soap Neem Soap

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Super Dish Vim Dish
175gm 10 150
Wash Bar Wash Bar

Corn Flakes Kellogg’s

500gm 145 182
Mix Corn Flakes

Detergent RIN Detergent

250gm 13 19
Powder Powder

Pineapple Dabur Real

1ltr 85 99
Juice Juice

Special Dabur
500gm 115 160
Chawanprash Chawanprash

21
 2.3.3. Place in the Marketing Mix of Patanjali Ayurved

Patanjali Ayurved is India's fastest growing FMCG Company but it is not

stopping it from spreading its wing to neighboring countries like Nepal. Patanjali has
a manufacturing unit in Nepal. Patanjali also imports herbs from Himalayas in
Nepal, the well-entrenched trade relation is helping Patanjali expand its wings in
Nepal with great ease.

With the growing outreach in India and Nepal, Baba Ramdev surely will be
aiming to overtake market in lot of other countries. With impressive revenue of 5000
crores.

In India, 1000's of stores are now selling Patanjali products, and these stores
are exclusively selling Patanjali, making the local retailer quake. The penetration
levels will only rise further as the margins in the product are good too.

22
 2.3.4. Promotion in the Marketing Mix of Patanjali Ayurved

Patanjali Ayurved goes with the Slogan "Prakriti ka Ashirwad". Well,

Patanjali Ayurved has acquired the requisite fame and popularity among people
because of the globally recognized Yoga Guru, Baba Ramdev. This brand
ambassador of Patanjali is single handedly responsible for the success of the brand.
His contribution to people's life through Yoga is incredible hence people felt aligned
towards him when he launched his very own Indian FMCG Company.

It is a well-entrenched fact that advertising affects consumers Baba Ramdev

has hit both the opinions as he is advertising and at the same time not advertising.

In the year 2002 when Aastha television channel started airing Baba Ramdev's
yogic classes overnight, Baba Ramdev became a sensation he had hundreds of
followers who morphed into thousands.

Millions around the country follow his program religiously and use Ayurvedic
medicines prescribed by him. His yoga sessions were beamed live into 170 countries.
Baba Ramdev's pack one DVD, two Video CDs written three books on Yoga,
Pranayama Herbal Remedies and Magazines are available.

He has mastered the art of mass customization and practices so that each
individual feels that he is talking to him individually.

23
 3. OBJECTIVE OF THE STUDY

The main objective to study this project is to know about the different
strategies of Patanjali Ayurved.

The Main Objectives in the Mind:

1. To study, whether Patanjali Ayurved products are genuine or not.

2. To study, why people prefer Patanjali Ayurved products.

3. To study, whether customers are satisfied using Patanjali products.

4. To study, whether the huge rise of indigenous Patanjali products good for our

country.

5. To study, whether is it good to buy Patanjali products for our Indian economy?

24
 4. SCOPE OF THE STUDY

1. To conduct this research the target population was children, middle age
men's and women's.
2. Targeted geographic areas of Nagpur, sample size of 100 people were
taken.
3. 100 people were given the questionnaire, and the questionnaire was the
combination of both open ended and closed ended.
4. Some dealer were also interviewed to know there prospective
5. Finally the collected data was analyzed and complied to arrive the
conclusion and suggestion.

25
 5. HYPOTHESIS INFORMATION

5.1. A Report on Patanjali Ayurved

By Varun Mishra Posted May 26, 2016. In Branding, Business, Front-page,
Health, Lifestyle, Marketing.

Patanjali started its operations with Patanjali Yogpeeth in Hardiwar,

Uttarakhand. Patanjali Yogpeeth is one of the biggest yoga institutes in the country.
Swami Ramdev and Acharya Balkrishanaji set up Patanjali Ayurved Ltd. for
treatment, research and development and for the manufacturing of Ayurvedic
medicines in Yoga and Ayurved.

Patanjali Yogpeeth offers treatment and scientific research and has brought a
coup when it comes to healthcare in the country with the combined approach of Yoga
and Ayurved.

The infrastructural facilities at Patanjali Yogpeeth includes an OPD for free

medical consultation, IPD of thousand beds, laboratory for test investigation of
radiology, cardiology and pathology, a yoga research division, free yoga classes,
high quality Ayurvedic medicines manufactured by Divya. Auditorium, apartments
for senior citizens, a grand museum and a sale channel of 11,000 square feet for
literature related to yoga and Ayurved.

 Patanjali Ayurved Entry into FMCG:

Patanjali started off manufacturing bulk ayurvedic medicines later branching its
operations into FMCG markets as well. Since, the FMCG market has low entry
barriers, Patanjali soon established itself as a major consumer goods’
manufacturer. The recent trends clearly imply that the company’s priorities are
shifting from medicines to consumer goods, perhaps because the net revenues
earned through FMCG are on par with ayurvedic medicines.
26
 Patanjali Ayurved - Current Market Insights:
Patanjali as a brand currently has more than 350 products from Soap to
Toothpaste and from Oats to Health drinks. The 2014-2015 revenue of Patanjali
Ayurved crosses Rs. 2000 crore figures. In January 2016, IIFL said “Patanjali
Ayurved Ltd has, in a short span of less than a decade, recorded a turnover higher
than what several companies have managed to achieve over several decades.
There is no doubt that Patanjali is a disruptive force in the FMCG space and is a
credible threat for the incumbents.” The industrial data indicates that the brand
has a market share of 4-5%.

 Patanjali Sales (2012-2015):

27
 Focus On Revenue Over Profitability:

As per the report by EDEL research “The company is well on course to

achieve its targeted revenue of ~INR50‐60bn in FY16 (INR20.2bn in FY15). Even
though the thrust is not on profitability, the company managed to clock ~20%
EBITDA margin in FY15, aided by better cost management (latest machinery and
strong R&D capabilities) and lower A&P spends”

 Proactive Moves in Innovation:

Patanjali Ayurved is aggressively planning to enter into every consumer

category. Currently Patanjali Ghee is expected to be at INR 12 billion in the financial
year 2016 and if it gains solid distribution expertise, it could pose a serious threat to
its competitors. An innovative R&D facility equipped with latest technology,
Patanjali has also launched a mobile app which helps the consumer to locate retail
outlets and for online ordering of Patanjali products

28
 Patanjali’s Supply Chain Management:

The three phases of Patanjali’s supply chain are product flow, information
flow and cash flow. Patanjali has recently completed a tie up with Future group to
sell the products. They also sell their products through their own outlets opened in
almost every district/city of India. Each outlet has to send their demand to central
office at Hardiwar. Then as per the demand, various products are gathered from
various units of Patanjali. The items are delivered to outlets majorly through
Patanjali transport.

Patanjali Supply Chain

 Sales and Distribution – Patanjali:

 Patanjali provides sale of products online and can also be procured
through post by sending the money through demand draft.
 Patanjali herbal products are available at Post Offices across the
country.
 Patanjali also has “Patanjali Chikatsalayas” and “Patanjali Arogya
Kendra” in almost all the cities of the country.
To strengthen the distribution Patanjali is also implementing ERP which will
help them in managing the inventory.

29
5.2. The Secret behind Patanjali’s Rise and Success
By Pankaj Gupta- Business line

 The company’s sales and distribution methods help it to keep its costs low
too:
Patanjali Ayurved, started in 2006 by the famous Yoga Guru Baba Ramdev, has seen
a meteoric rise in the past few years with revenues of ₹5,000 crore in FY16 from
₹450 crore in FY12. While Patanjali’s combination of low prices, ‘natural and pure’
proposition and ‘swadeshi’ positioning are widely acknowledged to be the reasons
behind success, what is not that well known is the critical role played by Patanjali’s
path-breaking sales and distribution strategy in driving this exceptional growth
trajectory.

Patanjali can offer low prices to consumers due to very low selling, administrative
and general costs at 2.5 per cent of revenues. Advertising spend in FY 16 at 6 per
30
cent is also well below the peer set. Critically, it has kept retail margins at half or
lower levels as compared to competition. The focus of the article is to demystify
how Patanjali scaled up distribution in an intensely competitive retail FMCG
environment in India despite low retail and A&P spends.

 Distribution strategy:
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.

 Another Distribution System:

In a new market, Patanjali first drives trials and consumption using dedicated stores.
These stores are essentially Ayurved clinics, run by entrepreneurs entirely with their
own investment. They are of three types – Arogya Kendra, Chikitsalaya and
Swadeshi Kendras.

Patanjali extends support in two ways: It trains and certifies medical practitioners
nominated by these stores in Ayurved, and provides usage of the Patanjali brand
name. This automatically bestows trust and credibility due to the rub-off effect of
Baba Ramdev’s credentials on Yoga and Ayurved.

In return, these stores provide various services. One is free consultation by certified
medical practitioners. This assures high footfalls and likelihood of building a large
scale of early adopters. It serves as a retail store. The entire range of around 200-260
SKUs is stocked across both OTC, pharmaceutical and FMCG products and there is
typically a weekly replenishment cycle. There is skillful cross-selling across

31
pharmaceutical and FMCG products. The presence of Ayurvedic medical
practitioners at the outlet is a major determinant of sales. On the days when the
medical practitioner is absent, sales fall 30-40 per cent! The average FMCG
throughput per dedicated store is typically at ₹6-7 lakh per month in a metro.

A powerful network effect is seen at these stores. Early adopters bring in additional
footfalls through strong word of mouth. The fact that a trustworthy consultation is
free in an important area such as healthcare provides a strong hook for passing on
recommendations to friends and relatives.

These stores also serve another function – product introductions are done extremely
efficiently and decisions to continue tweaking or scaling up the product and
communication mix can happen in a short time frame.

Currently, 10,000 dedicated stores (Chikitsalaya, Arogya Kendra, and Swadeshi

Kendras) contribute to 60 per cent of the company’s revenues. In Delhi NCR, one
of the older markets for Patanjali, there are over 400 of these stores whereas in a
newer market such as Mumbai, there are approximately 270 stores.

 The Pivot to GT:

Once a sizeable consumer base is built through these dedicated stores, these
consumers would expect Patanjali’s products to be available at general stores,
grocers and chemists in the vicinity of the dedicated store. These retailers are then
forced to stock up on Patanjali’s products for fear of losing out on a customer’s
goodwill. This builds a platform for the next stage of growth.
Various towns are at different stages of evolution. For instance, the company’s
biggest market, Delhi NCR, is in Stage 2 and is responsible for revenue of ₹1,500
crore.

32
In 2013, dedicated stores contributed to 80 per cent of total FMCG sales across GT
and the dedicated store network. As consumer awareness and pull were created, GT
started stocking Patanjali’s top products (oral care and honey) despite uncompetitive
margins. This pivot to GT continued resulting in dedicated stores’ contribution
falling to around 45 per cent today.

Mumbai is still a Stage 1 market; dedicated stores contribute to around 70 per cent
of FMCG sales across the GT and dedicated store network. As consumer trials and
consumer pull is created, it is increasingly evident that availability in general trade
would increase. Higher incidences of placards outside several outlets stating
‘Patanjali products are available here’ bear testimony to the same.

 Alternative channels:
While Patanjali’s scorching pace of growth has stupefied most FMCG players, the
concept of winning in alternative distribution channels is not new. Select players
have adopted a “flanker” strategy to bypass competition, entrench their position,
encircle and then launch a frontal attack in mainstream channels.

Notable examples include Starbucks’ consumer packaged goods (CPG) business.

Starbucks leveraged its retail store footprint to build a flourishing CPG business.
The intent was to capture a larger share of coffee consumption – reaching consumers
whenever they want great coffee.

The stores provided a perfect platform to drive effective sampling and build
partnerships with retail consumers. Starbucks then enhanced availability through a
tie-up with the CPG giant Kraft. Today, with its own network, these at-home
consumption products are now available in grocery stores, airports, hotels, and
convenience stores as well.

33
In the case of Yellow Diamond Wafers, the company targeted a relatively lesser
contested space – smaller mom-and-pop retailers within the intensely competitive
wafers market. Yellow Diamond also provided higher margins than competition to
ensure a very high shop share with those retailers. In six years, Yellow Diamond
grew to ₹700 crore. Yellow Diamond is now planning to enter the more mainstream
bigger retailers.

Developing an alternative channel strategy can help a company create white-space

opportunities and dominate them. This approach is valid both for incumbents as well
as new entrants into the FMCG market. The question is “will a company take risks
in a blue ocean and enjoy the associated upsides or will it try to compete in a red
ocean with a classical sales and distribution approach”? Time and risk appetite will
separate the winners from the rest of the pack.

34
 6. LIMITATIONS OF THE STUDY

Every attempt will be taken to obtain error free and meaning full result but as
nothing in this world is 100% perfect. I believe that there will be still the chance for
error on account of following limitations:-

1. Limited numbers of respondents.

2. Time limitation for compelling the project.

3. The data obtained in some cases may be biased.

4. Difficulty in communicating within the city while conducting the survey.

5. The information obtained from the consumers based on questionnaire was

assumed to be factual.

6. Since the survey is based on sampling method, it does not disclose the
character of entire customer.

7. Product unavailability for the consumers in the market is one of the biggest
limitations for Patanjali Ayurved.

35
 7. RESEARCH METHODOLOGY

Attaining accuracy in any research requires in depth study regarding the

subject. As the prime motive of the project if the project is to know the marketing
strategies of Patanjali Ayurved and how it is affecting Indian economy.

Research Design:
Type of Research: Descriptive Research

 Descriptive Research: Descriptive research includes Surveys and fact-

finding enquiries of different kinds. The main characteristic of this method is
that the researcher has no control over the variables, he can only report what
has happened or what is happening.

Data Sources: There are two types of data. Source of primary data for the present
study is collected through questionnaire and answered by consumers of Patanjali
Ayurved. The secondary data is collected from journals, books and through Internet
search.

 Primary Data: The data that is collected first hand by someone specifically
for the purpose of facilitating the study is known as primary data. So in this
research the data is collected from respondents through questionnaire.

 Secondary Data: For the company information I had used secondary data like
brochures, web site of the company etc. The Method used by me is Survey
Method as the research done is Descriptive Research.

36
Research Instruments: Selected instrument for Data Collection for survey is
Questionnaire.

 Questionnaire: A questionnaire is a research instrument consisting of a series

of questions (or other types of prompts) for the purpose of gathering
information from respondents. Although questionnaires are often designed for
statistical analysis of the responses, this is not always the case.

Sample Unit: 100 Respondents of different age groups, different profession and of
different gender.

Sampling Design: Convenience sampling.

Sampling Tools: Pie charts, averages graphs, ratio analysis graphs

37
 8. SWOT ANALYSIS

S – STRENGTH:

1. Baba Ramdev: The exponential growth of Patanjali can be credited to Baba

Ramdev and his popularity. For a newly formed FMCG in India, it would
have been impossible to show the kind of growth that Patanjali has shown
in such a short period of time. But the fan following and goodwill of Baba
Ramdev guaranteed that Patanjali grows quickly and becomes a routine
name in the Indian households.

2. Strong Patriotism: Patanjali has used the India card to its advantage and
has always marketed that it’s a brand made in India, for Indians. Most of the
brands in India are international brand. Patanjali actively asks Indians to buy
India made products to help the economy of the country. Besides this, the
quality of the products have helped in the fantastic growth of Patanjali.

3. Ayurved and Herbal: The Products that Patanjali offers are made from
Ayurved and Herbal natural components. The Swadeshi products also have
played an important role in the success of Patanjali. India has never been
low on plants or vegetation and we get a lot of naturally grown medicines in
our dense forests. As a result, India is one of the leaders in Ayurved.

4. Penetration Pricing: Patanjali products are generally priced at 20-30 %

lower than the competitive brands and thus it becomes impossible for the
competitive brands to compete with Patanjali on price. The company sources
the products directly from farmers and thus cuts on middlemen. Hence, they
are able to produce at lower costs.
38
5. Strong Distribution Channels: Patanjali products are sold through medical
centers such as Patanjali Chikitsalayas and Patanjali Arogya Kendras, non-
medical centers such as Swadeshi Kendras. Patanjali already has 15,000
outlets across India. Patanjali was earlier criticized for its distribution
strategy, but it has now improved it by distributing through General retail
outlets and has recently tied up with the Future group for distribution
through Modern retail. They have now transformed its weakness into
strength.

6. E-Commerce Advantage: Patanjali sells very well through the E-

commerce companies and has a lot of packages of products which it sells
online. So even if people are not nearby a Patanjali store, but they believe in
Baba Ramdev or want to purchase Indian products, then they can do so
online via E-commerce.

7. Word-of-Mouth Promotion: For a new company especially in the

consumer goods category, a high share of its expenditure goes into
advertisements and promotions. Patanjali followed a word-of-mouth
promotion strategy initially and did not spend much on promotions and
advertising. Patanjali depended on over the Brand loyalty of its customers.

8. Keeping Up With The Trends: Owned by Babas and Swamis, Patanjali

was supposed to be a conventional Indian company but it has surprised
everyone by bringing in various changes required to be at par with its
contemporary brands. Be it advertising using celebrities as Brand
ambassadors, Entering modern retail or using E-commerce as a platform.
39
 Patanjali has also understood the potential of digital media and social media
platforms and is also spending on these channels.

W – WEAKNESS:
1. Over Dependency On Ramdev: For many of its consumers, Patanjali is
still synonymous to Baba Ramdev and hence any actions of Baba Ramdev
will have repercussions on the brand itself. Baba Ramdev’s political
affiliations are also well known and hence if at all he is targeted for any
political vendetta, Patanjali will also suffer.

2. A Low Number of Manufacturing Units: Patanjali has set itself an

ambitious target of INR 10,000 crores for the fiscal year 2016-17. For that
to happen, Patanjali would need to set up manufacturing units in different
parts of the country which would require heavy investments. It also would
have to move from the word-of-mouth strategy to nationwide promotional
campaigns.

3. Penetration Pricing Is Not Long Term: Patanjali might have to

compromise on its pricing strategies if it wants to expand and thus it’s a big
challenge for Patanjali. It cannot sell at such low costs for a very long term.
Any company needs profits to drive more sales and therefore earn more
profits. Its a cycle. But if Patanjali does not earn much, then it cannot spend
much and cannot expand.

4. Product Dependence: While Patanjali has many products in its kitty but a
major part of its revenues are dependent on 5-6 of its main products such as

40
 its toothpaste and shampoo. They need to push the other products more to
achieve its ambitious target.

5. Low Margin To Distributors: Patanjali offers much lower margins to

distributors and retailers as compared to other consumer goods company,
since it is playing a game of volume and not margins. That’s the reason for
it being a demand run company.

6. Lack Of Experienced Management Graduates: Patanjali does not have a

large pool of management graduates and thinks tanks which can be a
problem when they look for expansion throughout the country or globally.

O – OPPORTUNITIES:
1. Growing organic sector: Patanjali has been successful in creating
awareness about the benefits of using herbal and natural products which
have created a market for itself. The awareness has spread and the demand
is ever growing.

2. Expand Rural: With the portfolio of products that Patanjali has, it has great
potential in the rural market and should look to expand its operations in the
vast rural market of India.

3. Going Global: Patanjali has a great opportunity to expand globally and can
look for Middle East and African nation in the beginning. Various other
companies such as Dabur have already expanded globally and have been
successful.

41
 4. Tie Ups: Patanjali has successfully tied up with Future group and should
continue tie up with modern retail chains and increase its E-commerce sales.

5. Diversify: While Patanjali is now present in retail products, it has not

entered clothing which is another area where competitors like Reliance and
Aditya Birla have expanded successfully. So Patanjali can plan on
diversifying its product portfolio even further to Khaadi, making it a fashion
statement and being true to the roots of Patanjali being an Indian brand.

T – THREATS:

1. Increasing Competition: FMCG majors such as HUL, Marico, etc. and

new entrants such as Sri Ayurved are also entering the organic market after
the awareness created by Patanjali which increases the competition in the
market.

2. Negative Word-of-Mouth: Any negative word-of-mouth created on social

media platforms can affect its position in the market.

3. Poor reap can affect business: Patanjali is heavily dependent on natural

ingredients and products and hence poor agricultural reap can affect its
sales.

4. Price war: A price war is good for consumers but it is detrimental for
business. The longer the price war, the more is the effect on the brand.
Companies like HUL, Colgate and others have been at the top for long.
They have deep pockets and they will naturally respond to Patanjali. Such

42
a price war will have drastic effect on Patanjali’s profitability, especially
because the brand is already selling at very low margins.

43
 9. STP ANALYSIS

SEGMENTATION:
From the product line up of Patanjali Ayurved, it can be safely assumed that
it does not segment the customer base as such, making the whole population its
potential customer. As per Ramdev’s vision of bringing welfare and manufacturing
good and unadulterated natural Ayurved products easily available to the common
masses, this stance of not segmenting the market as such seems aligned. However
on analysis, a broad segmentation can be observed.
1. Geographic Segmentation (North India & South India):
It is observed that Patanjali products are a huge hit in the North Indian market
but not that much in South India. One reason might be that Ramdev being
from the Hindi belt and Aastha channel airing in Hindi language, its
prominence is not that much down in south. The same reason holds true for
its packaging, which uses either English or Hindi. To be noted that Patanjali
owes its huge success to Ramdev’s active image association with it.
2. Behavioral Segmentation (Based On Lifestyle And Types Of Products
Consumed Or Used):
The consumers can be segmented based on their lifestyle & health preference
and by the type of product they use. The main users of Patanjali products are
the people who are health conscious and want to use pure unadulterated
natural Ayurved products.
3. Demographic Segmentation (Based on Age):
A clear segmentation can be done based on age. The young generation, i.e.
typically children to young adult below the age of 35 years is a clear segment,
while the rest of the population aged more than 35 years are the other segment.
This segmentation based on age makes sense since young adults & children

44
 enjoy life and often is not serious about health or life, which makes them not
a user of these products. On the other hand, once people turn a little old with
the onset of middle age, they start thinking about health & the future. These
are the people who generally make the purchase of Patanjali products.
4. Psychographic Segmentation:
Based on the psychology and mindset of the people, this segmentation is taken
into account. There is huge overlap between the people who attend Ramdev’s
Yoga camps or follow him on Aastha. They perceive him as an ascetic and
hence his products too shall be good which makes them purchase these
Ayurved products of Patanjali. Also to be noted is that Ramdev wanted to
create a Swadeshi sentiment among the customers and thus pitched against
FMCGs who are mainly MNCs or use raw materials/ procedure of foreign
origin.

TARGETING:
Currently Patanjali is competing in all FMCG categories catering to the whole
population, which is otherwise called Total Market Coverage Targeting Strategy.
They have diversified into almost all categories like oral care, hair care, skin care,
groceries, health drinks & supplementary, packaged food etc.
Also since they have no differential products within the same product
portfolio, this substantiates the fact that they are not targeting any particular segment,
rather serving the whole population with their offering. To reach to the maximum
number of potential customers, it has to target specifically though.
The house wives and the elderly of the house are the influencers and decision
makers in the purchase process of Ayurved products. By just producing packages
with South Indian languages, the south market can be targeted. At present Patanjali
is contending in all FMCG categories obliging the entire populace, which is
45
generally called Total Market Coverage Targeting Strategy. They have expanded
into all categories like oral care, hair care, healthy skin, basic needs, health drinks
and packaged beverages and so on.
Additionally since they have no differential items inside the same item
portfolio, this substantiates the fact that they are not focusing on a specific section,
rather serving the entire populace with their advertising. To reach to the greatest
number of potential customers, it needs to be more specific in its targeting though.
The housewives and the elderly of the house are the influencers and chiefs in the buy
procedure of Ayurved items. By simply producing packaging with South Indian
dialects, the market in the south can be focused on.

POSITIONING:
The positioning statement of Patanjali is derived to come to the following:
“For the mass Indian consumers, Patanjali Ayurved offers the complete range
of unadulterated natural/herbal/organic products which are a healthier alternative to
the other FMCG products at a significantly lower price.”
Ramdev wants to associate Patanjali holistically with Arogyam eco-system,
which means disease free long life. This is actually tying up of yoga, pranayama and
Ayurved to create such a possibility, something which Ramdev banks on.
He also links the idea of indigenous (Swadeshi) to the company’s products
and does cause marketing for the company by saying that they are helping the
farmers to earn more.
He projects Patanjali as a not-for-profit company and that it is there to serve
the masses. He mentions that they do not keep margins on most of the products and
hence the mouth-watering prices.

46
 10. UNIQUE SELLING PROPOSITION (USP)

Constructing a "Disease Free Society, Medicines Free World", embraced

dream of Baba Ramdev. It is declared that after comprehensive research of the
antique outcome of Pranayama Yoga during last numerous years, it has been
demonstrated now that proper Breathing Technique's practice can antidote all
diseases completely without medicines or surgery.

He claims to have trained 35,000 persons that are well equipped to hold yoga
classes in different regions of the country.

Patanjali Yoga Ashram has set up 535 branches and 15 more centers are in
the process of being entrenched.

This is engaged towards creating a new USP wherein any requirement of the
customers can be fulfilled to without setback.

This is the Unique Selling Proposition of Patanjali Ayurved.

47
 10.1 Patanjali Key to Success

1. Less Price:
Patanjali products are available at an attractive discount as compared to their
competition. The company sources products directly from farmers and cuts on
middlemen to boost profits. Hence, they are able to reduce their raw material
procurement cost and are able to produce goods at a much cheaper price.

2. Strong Distribution Channels:

Patanjali products are sold through three types of medical centers. These
include Patanjali Chikitsalayas which are basically clinics. Then there are
Patanjali Arogya Kendra's which are health and wellness centers. They also
have non-medicine channels called Swadeshi Kendra's.

3. Strong Brand Association Because Of Baba Ramdev:

Patanjali is able to create a brand perception of health and wellness among the
Indian masses, primarily because of Baba Ramdev's association. Hence, more
people are getting attracted to Patanjali's products and are re-buying products
more frequently.

4. Simple Packaging Gives It A Natural Look:

Patanjali sells its products with a very simple packaging. Now, many would
feel that it is not a good strategy but the truth is it is working for Patanjali.
With a product like Patanjali, where the message is to promote Ayurved and
'Health', simple packaging can be a very effective way of promotion. With a
natural look (especially with leaves and herbs), consumers get a feeling of
health and wellness and they are attracted to buy the product.

48
5. Promotion Through Media:
Baba Ramdev is considered to be a guru of yoga across the globe. He has been
very co-operative with press and media and has maintained good relationships
with them. Also, he is known to have good connections with many politicians.
So he used both the facts to publicize his company free of cost.

6. Word-Of-Mouth Promotion:
Advertising and promotions typically account for 12-20% of revenue
expenditure by consumer goods companies. When a new company gets into
the business, this spending is significantly higher. During the introduction
stage, Patanjali followed a unique word of mouth publicity model and the
entire revenue was without any advertising. It was because of the brand
loyalty of its customers that the word-of-mouth promotion proved so
successful for the company.

49
 10.2 Competition from Patanjali Prompts FMCG to Hit Back

Watching Ramdev's moves are rival consumer goods companies. The Rs.
2,000 crore Patanjali, looking to grow its turnover two-and-a-half times in FY16, is
striking at the heart of their Business, making its presence felt across categories.
The stiff competition has prompted most of the fast-moving consumer goods
(FMCG) companies to hit back. Consider what the country's biggest FMCG
Company Hindustan Unilever (HUL) is doing: It has resurrected' its herbal brand
Ayush, launching it online. A bunch of new products across hair care, skin care and
pain balms have been launched on e-commerce platforms under Lever Ayush
Therapy. The plan is to take the brand to general trade in the future. The firm is also
expected to increase its 'natural offerings, moving into newer categories such as
health foods, oral care, lip care etc.
HUL's managing director and chief executive Sanjiv Mehta says, "What we
find is that consumers' interest in natural/ayurvedic products is growing. It is one of
the emerging trends now.
As a consumer goods company, we have to respond to this, which is why
Ayush, which existed in our portfolio, has now staged a comeback. We also acquired
Indulekha to grow our presence in the value-added hair oil segment. We will
continue to make investments in this area."
Companies that have been directly affected by Patanjali such as Dabur,
Emami and Himalaya - all three operate in the herbal/naturals space says they will
buttress their portfolios, making their products relevant to consumers.
Harsh Agarwal, director of Emami, says he is open to acquisitions to
strengthen his firm's position in the herbal space. "Ayurved has been around for a
long time. I don't see this as a new trend. But, the emergence of new players is

50
happening right now. We welcome them and will continue to fortify our range with
new variants, launches and acquisitions."
Emami had acquired hair oil brand Kesh King last year and was also in the
race to acquire Indulekha before opting out. Agarwal says he is looking at new
targets, some of them located in the south Industry source say herbal and non-herbal
companies are now going back to the drawing board, looking at how they can
incorporate natural ingredients when developing new products.
Godrej Consumer, for instance, has launched a neem-based mosquito coil; a
cream hair color that has coconut oil; and launched new variants under Godrej No ,
it’s natural's platform in soaps Sunil Kataria, business head (India and Saarc region)
at Godrej Consumer, says, "Our endeavor will be to fortify these products as we
come up with new innovations in other categories."
Colgate, whose volume growth has taken a hit on account of Patanjali's Dant
Kanti toothpaste, according to brokerage firm Credit Suisse, is aggressively
advertising its active salt neem toothpaste, launched a few months ago.
This toothpaste, a variant of Colgate's Active Salt toothpaste, was made in
India to address the herbal coup, according to industry sources. Colgate is expected
to come up with more such offerings as Patanjali's threatens to eat into its business
Dabur, on the other hand, is introducing new Ayurvedic products targeting
men, women, and children. Existing products such as Dabur Honey and
Chawanprash are being pushed aggressively in the marketplace as Patanjali positions
itself as a price warrior in these categories.
Himalaya - another herbal products company recently launched its range of
wellness products which aim to provide therapeutic solutions to consumers. Products
ranging from anti-hair fall creams to pills for staying slim are part of this new
initiative.

51
Preparing to Put up A Fight:
 HUL: Company "resurrects" herbal brand, Ayush, launching it online.
Plans to increase "natural" offerings.

 Emami: Firm open to acquisitions for strengthening the company's

position in the herbal space Godrej Consumer Launches neem mosquito
coil, a cream hair color that has coconut oil, new variants in natural
soaps.

 Colgate: Firm aggressively advertising its active salt neem toothpaste,

as its volume was hit after Patanjali's Dant Kanti.

 Dabur: Firm launching ayurvedic products. Pushing Dabur Honey and

Chyawanprash aggressively.

 Himalaya: Himalaya recently launched its range of wellness products

which aim to provide therapeutic solutions to consumer.

52
 11. DATA ANALYSIS AND INTERPRETATION

Age:

AGE

10%
20%
10 TO 18
19 TO 25
30%
26 TO 50
50 TO 70
40%

Gender:

GENDER

35%
MALE
FEMALE
65%

53
Q1. Do You Use Patanjali Ayurved Products?

Maximum people in a particular surveyed area use Patanjali product as they

are cheaper to buy when compared to some other product manufactured by the MNC
companies.
So, about 80% of people use Patanjali product in a middle class family. And
Patanjali has that trust factor of naturally made product without any preservatives or
harmful chemicals.

54
Q.2. Which Category Product Of Patanjali Ayurved You Use?

MEDICINE

23% 12%
FOOD PRODUCT
22%
28% SUPER FOOD
15%

ATURVEDIC BODYCARE

AYURVEDIC
PUBLICATION

Survey was conducted for random 100 people of that particular area.

 25 people out of 100 people use medicine products of Patanjali and 45

people use food products manufactured by Patanjali Ayurved.
 30 people out of 100 opted that they use super food products manufactured
by Patanjali Ayurved.
 55 people use ayurvedic products naturally manufactured by Patanjali
Ayurved.

 45 people use ayurvedic publication products.

55
Q3. How Frequently You Use The Patanjali Ayurved Products?

60

50

40
60
30
40
20

10
0
0
WEEKLY MONTHLY YEARLY

60% of people use Patanjali product weekly

And 40% of people use Patanjali product monthly.

As it depends upon the use of the product and which type of product it is.

56
Q4. Would You Like To Recommend Patanjali Ayurved Products To Others?

80

70

60

50

40 75

30

20 35
25
10

2.5
0
DEFINITELY PROBABLY PROBABLY DEFINITELY
NOT NOT

What I concluded is maximum number of people are satisfied using Patanjali product
so, 75 people would definitely recommend the Patanjali product to other while 10
people where little dissatisfied of using Patanjali product.

35 people ticked that they will probably recommend the product to others .

57
And 25 will probably not recommend the product to other as it is their own personal
views regarding the usage of the product.

And due to some of the limitation of the study we could not find the correct results
regarding the study.

58
Q5. Why Do You Choose Patanjali Ayurved Products?

35
Natural in nature

45
Good quality cum maximum quantity

50
No negetive effects

65
Cheaper Price

0 10 20 30 40 50 60 70

As Patanjali target middle class people and as well as lower class people and of
middle age group and children. So, most of the people purchase the Patanjali
products as it is cheaper and in the budget for middle class people.

Health conscious people purchase Patanjali product as it is natural in nature and have
no negative effects.

59
So, about 35 people out of 100 random people purchase Patanjali because of its
affordability at cheaper price. 45 people purchase Patanjali product because it has no
negative effects.

50 people prefer Patanjali product because of its good quality at maximum quantity
About 65 people purchase Patanjali because it is natural in nature, according to this
study.

60
Q6. From Where Do You Buy It?

PATANJALI AYURVED

5%

20%
45%

30%

 45% of people prefer to purchase the Patanjali products from the Patanjali

stores itself.

 5% purchase from wholesaler.

 20% from retailer.

 30% of people order online patanjiali products.

61
Q7. Have You Seen Any Tangible Health Benefits Of Using Patanjali Ayurved
Products?

PATANJALI AYURVED

35%

65%

Customers using Patanjali products really felt health benefits of using

Patanjali Ayurved as Patanjali products are naturally made.

35% of people didn’t felt any hard and fast benefits of using Patanjali
products.

But 65% felt betterment after using Patanjali product.

62
Q8. Do You Find Them Affordable?

2%

27% 25%

DEFINITELY YES
PROBABLY YES
PROBABLY NOT
DEFINITELY NOT
46%

Maximum numbers of people finds them probably affordable.

46 people out of 100 people finds them affordable, while 25 people out of 100 people
definitely finds them affordable and at maximum quantity with good quality and at
cheaper rates.

2 people don't find them affordable, whereas 27 people out of 100 people random
surveyed ticked probably not.

63
Q9. Would You Like To Switch To Other Brands In Near Future?

PATANJALI AYURVED

21%

79%

Maximum numbers of people are satisfied using Patanjali product and they are not
going to switch the brand in near future.

79 people out of 100 will not going to switch the brand in near future, while 21
people out of 100 people are going to switch the brand in near future due certain
limitation of Patanjali Ayurved on which Patanjali had to work a lot.

64
Q10. Which Brand Would You Like To Switch In Near Future?

1%
DABUR INDIA LTD

25% SHRI BAIDYANATH

30%
ZANDU PHARMACEUTICAL

EMANI GROUP

9%
HIMALAYA DRUG
10% COMPANY
OTHERS
25%

The next best competitor of Patanjali Ayurved is Dabur India Ltd., about 30% people
want to switch to Dabur after Patanjali, where 10% people will go with Shri
Baidyanath.

And 25% - 25% people will go for Zandu Pharmaceutical works and Himalaya Drug
Company after Patanjali.

And 9% people will go for the Emani group. 1% people will go for others.

65
Q11. Are Patanjali Ayurved Products Genuine?

PATANJALI AYURVED

24%

76%

24 people out of 100 people said no that the Patanjali products are not genuine.

Whereas 76 people said that the Patanjali products are genuine and natural.

As Patanjali products are naturally made without any preservatives and without any
chemical substances.

That's why maximum no. of population considers Patanjali products genuine.

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Q12. Is The Huge Rise Of Indigenous Patanjali Products Good For Our
Country?

PATANJALI AYURVED
YES NO

3%

97%

As Patanjali products are manufactured in India

With each increase in sale of Patanjali product our imports will decrease which will
definitely affect our economic wealth.

And one of the most important thing this that they serve their customer a healthy
product which will definitely affect the health conditions of our country and our
country will grow Patanjali follows the path of "MAKE IN INDIA". About 97 people
out of 100 people believe that rise of Patanjali Ayurved is good for our country.

A reduction in imports will help improve the value of rupee against foreign
currencies, and make it a stronger currency. This can also help in paying less for
other major imports which may well increase oil and coal.

67
Q13. Is It Good To Buy Patanjali Ayurved Products For Our Indian
Economy?

PATANJALI AYURVED

NO 10

YES
90

0
20
40
60
80
100

 Most of the people said yes it is good to buy a Patanjali product for our

Indian economy as our exports will decrease and our economic stability will
be there in our economy.

 90 people out of 100 said yes.

 Employment will increase. (Also poverty elevation)

 Less dependent on products from outside. (Less imports due to increased

production)

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 While 10 people out of 100 said no because they think that it is causing

damage to our natural environment, excessive use of natural environment

can cause danger.

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Q14. Overall, How Much Satisfied You Are With Using Patanjali?

PATANJALI AYURVED

UNSATISFIED 10

SOMEWHAT
25
SATISFIED

SATISFIED
65
0
20
40
60
80

Maximum numbers of people are satisfied using Patanjali product.

65 people are completely satisfied of using product.

25 people out of 100 people are somewhat satisfied.

10 people out of 100 are unsatisfied of using Patanjali product.

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 12. FINDINGS

1. Quality is the most influencing factors in the purchase decision while price is

also an important for purchase decision.

2. Schemes always attract more and more consumers towards particular brand.

3. Simultaneously it gives idea about the factors which consumers look most in

the product before they make final decision.

4. Price off and extra quantity is the two main offers/schemes which consumers

have come across at the time of purchase.

5. People are ready to buy products of brand which suits their budget means

more quantity + less cost quality.

6. Extra quantity with less or same price, more satisfaction, quality and other

factors clout consumers to switch over to other brands.

7. People are more quality and price oriented.

8. Consumer remember that name of the product by the company name and also

from the past performance of that company

9. Demand is too much for Patanjali's products in market, because of that

shortage problem occurs in market regularly.

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 13. CONCLUSION

 Patanjali Ayurved has given a trouble to many marketers with its

individualistic ways of marketing.

 Patanjali Ayurved had rattled the whole FMCG's sector and bought a mutiny

in the industry in a very spell era.

 A point to note is that many people are buying due to its hedonic value

attached to the products.

 Hence, Patanjali is attracting brand trustworthy customers and not price

sensitive customers.

 Will Patanjali continue to grow at the same pace? Or will it prove to be a water

bubble, with this being a temporary phase for Patanjali and strong players
eventually coming up with strategies to recapture the loss market share? Only
time will tell.

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 14. SUGGESTIONS

 Most of the Patanjali consumers are facing problem like; products are not

available in the market regularly,

 So they are suggested to increase their stock and make sure that the products

are available in the market regularly

 So Patanjali Ayurved should increase their productivity and make sure that

there will be no shortage of products in the market.

 Renewable sources cannot push this much production. So, only tradition

energy sources will require, which will pollute air and water. So make sure
that increase in production may not harm the environment.

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 15. BIBLIOGRAPHY

 www.patanjaliayurved.org
 www.wikipedia.org
 www.patanjaliayurved.org
 www.stellarix.com
 www.easymarketingstreategies.com
 www.patanjaliayurved.com
 www.marketing91.com
 www.youthkiawaz.com
 www.businessstandard.com
 www.timesofindia.com
 Patanjali Ayurved, waiting in the wings, Edelweiss Research
 Mass Customization: The Success Story of Baba Ramdev, Mrinalini
Deshpande, Indian School of Mines.
 Research report on Indian FMCG Industry, AFS Action, July 13, 2013

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 16. ANNEXURE

QUESTIONNAIRE

A Study on “Marketing Strategies of Patanjali Ayurved"

(Please spend some time to fill this questionnaire)

Name:

Gender:

Age:

Occupation:

1. Do you use Patanjali Ayurved products?

Yes

No

2. Which category products of Patanjali Ayurved do you use?

Medicine

Food Product

Super Foods

75
 Ayurvedic Body Care

Ayurvedic Publication

3. How frequently you use the Patanjali Ayurved products?

Weekly

Monthly

Yearly

4. Would you like to recommend Patanjali Ayurved products to other?

Definitely Yes

Probably Yes

Probably Not

Definitely Not

5. Why do you choose Patanjali Ayurved products?

Natural in Nature

Good Quality cum Maximum Quantity

No Negative Effects

Cheaper Prices

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6. From where do you buy it?

Online Order

Retailer

Patanjali Stores

Wholesaler

7. Have you seen any tangible health benefits of using Patanjali Ayurved
products?
Yes

No

8. Do you find them affordable?

Definitely Yes

Probably Yes

Probably Not

Definitely Not

77
9. Would you like to switch to other brand in near future?

Yes

No

10. Which brand would you like to switch?

Dabur India Ltd.

Shri Baidyanath

Zandu Pharmaceutical Works

The Himalaya Drug Company

The Emami Group

Others

11. Are Patanjali Ayurved products genuine?

Yes

No

78
12. Is the huge rise of indigenous Patanjali Ayurved products good for our
country?

Yes

No

13. Is it good to buy Patanjali Ayurved products for our Indian economy?

Yes

No

14. Overall, how much satisfied you are with Patanjali Ayurved products?

Satisfied

Unsatisfied

Somewhat Satisfied

79
Thank You for Giving Your Precious Time to Fill the Questionnaire

(Research Conducted By Mukul Somgade)

80