Remedial Assignment

Detailed Analysis of Products and their Marketing Strategies of

PATANJALI group

Anshul Thakur
Roll No. 2014058
Section A

Prof. Milind Fadnavis

Institute of Management Technology, Nagpur

Patanjali Ayurved, manufacturer of ayurvedic products, is the fastest

growing FMCG company in India. Credit Lyonnais Securities, a foreign

stockbroking company, has put out a report desiring for the company
promoted by Baba Ramdev, the yoga guru, to be listed on the stock
market.
Patanjali is bigger than Emami and Jyothy Labs and is perhaps the fastest
growing FMCG company in India and with revenue exceeding
2500 crore (US$380 million) in 2014-15.

Ownership
The company was formed by Baba Ramdev in 1997. He joined hands with
Acharya Balkrishna (CEO), a scholar of Ayurveda, Sanskrit and Vedas in
1990s to manufacture ayurvedic medicines. Ramdev focused on Yoga
while Balkrishna assumed responsibility of spreading the Ayurveda
business.
Baba Ramdev does not hold any stake in Patanjali Ayurveda Ltd.
Balakrishna is believed to own 92%. The balance 8% stake is held by
Sarwan and Sunita Poddar, a Scotland-based non-resident Indian couple.
The two are affiliated with the UK Trust of Patanjali Ayurveda and have
donated land to the trust in UK.

Revenue
These are the past records of Patanjalis turnover and the company is
growing at an incredible rate!

2012: Rs 450 crore

2013: Rs 850 crore
2014: Rs 1,200 crore
2015: Expected to climb to about Rs 2,500 crore.

Thats a 67% jump from last year, and a 500% growth from its inception in
2012. Patanjali has grown five times in three years. Ramdev is reported
to have said in one of his interviews that he is expecting to see the
revenue jump to Rs 10000 crore. That means Patanjali has literally taken
over Emami which was founded in the 1970s as an idea and started
running by 1974 and currently has a revenue of 1700 crore.

Store profits: Patanjali has 5,000 franchisee retail stores. Retailers told
CLSA that their average gross turnover is Rs 25,000 every day. Profit
margins for retailers vary about 10-20% across product categories.

FMCG Products
Patanjali Ayurved has its reach in all the categories of personal and food
products. The company manufactures 800 kinds of products including 45
kinds of cosmetic products and 30 different types of food products
like mustard oil, flour, butter, biscuits, spices, oil, sugar, juice, honey etc.
Patanjali Ayurved products are cheaper as compare to other company
products available in the market because they spend very less on
advertising and marketing their products.
Patanjali Ayurved's Ayurvedic Manufacturing Division has over 300
medicines for treating a range of ailments and body conditions, from
common cold to chronic paralysis.
Patanjali has also introduced FMCG products to diversify in the market.
Indian FMCG market is a market which has a very wide range of

customers. There are many competitors in all the categories and although
they all have similar products available at almost similar prices, Patanjali
is trying to prove it different through their marketing strategies. However,
entry to this business is easy (low entry barriers) and this fact has been
utilized very efficiently to result in combined benefit for both Patanjali and
the consumers.

As seen from the above Table, the major products of the Patanjali Food
Park are sharbat (Juice concentrates), jam, salt, chyawanaprash, flour
candy, washing powder, etc. The advantage with all these products is that
these are made of natural products and dont have any side effects at all.
But as there are so many players existing in the market, that Patanjali
products have a tough competition to face with.

Competitors

The competitors of Patnajali Ayurveda are

Dabur India Ltd.

The Himalaya Drug Company
The Emami Group
Shri Baidyanath
Charak Pharmaceuticals
Hamdard (Unani)
Zandu Pharmaceuticals Works
Vicco Laboratories

Controversy
The instant noodles brand launched by yoga teacher Ramdev has not
obtained mandatory product approvals from the Food Safety and
Regulatory Authority of India, officials said, even though Patanjali Atta
Noodles packets display an FSSAI licence number.

Atta Noodles
Patanajali Ayurved, the FMCG venture promoted by yoga guru Baba
Ramdev, on Monday 15 Nov 2015 launched noodles aiming to take on
Nestles Maggi. But till date the FDI has not received any requests for the
approval of the noodles.

Overall, product/market strategy of the Patanjali group can be understood

through Ansoffs Matrix (Ansoff, 1957) as shown in Figure-1 below. Ansoffs
matrix, despite of being more than fifty year old marketing tool, still has a
great contributor to understand the diversification strategy of the
organization (Richardson and Evans, 2007). It can be clearly understood
from the matrix that Patanjali Yogpeeth is diversifying itself from ayurvedic
medicine to FMCG products.

SWOT Analysis of Patanjali Yogpeeth

Marketing Strategy of Patanjali Yogpeeth

Targeting Masses through Pranayam and Yoga
No one can help admiring the simplicity of the techniques for practicing
the different pranayam (controlled breathing) which His Holiness Swami
Ramdev Ji Maharaj has evolved and has been teaching to the common
mass in India. One finds the methods taught by Swamiji very simple for
any lay person to pick up and follow. It is the simplicity in the technique
that is making Pranayam a part of life to common man. Pranayam were
there in text books for long time but, no one from the common mass in
India did have access to it for the techniques of practicing them were very
complex.
There were also some words of caution attached to such instructions that
any deviation from the practicing techniques would cause immense harm
to a person. This gave birth to an idea that Pranayam should never be
attempted to be practiced individually and should only be practiced in the
guidance and vigil of a trained Yoga teacher (Guru). Such rigid rules,
complexity in practicing techniques and above all the caution that, any
deviation in the practicing techniques would cause immense harm to the
person, took Pranayam far away from common mass and was finally lost

and buried. No one dared to practice such an art which would cause harm
to them if there is even a slightest of deviation in the technique.
Swamiji has done a tremendous job in breaking this concept of fear in
common mass about the harm caused by Pranayam. His Holiness has
devised very simple techniques for practicing the Pranayam which are
very easily picked up by any common man just by watching the T.V. His
Holiness Swamiji has also assured the common mass that Pranayam can
never cause harm to any person attempting to practice individually.
Swamiji has exhumed the Indian ancestral science of Pranayam from the
grave of darkness, fear and monopoly of a few and presented it in its
simplest form for the welfare of the mankind. Swamiji has removed the
veil of darkness and the mystery of Pranayam is unfolding itself to the
common mass in India.

Sales and Distribution

Patanjali follows various modes of distribution for their products.

They provide sale of products through their website with online

payment facility. These products can be procured through post also
by sending the required amount through demand draft etc.
Patanjali has opened Patanjali Chikitsalayas and Patanjali Arogya
Kendra in almost all the cities of the country from where all the
Patanjali products can be procured easily. A Patanjali trained
Ayurvedic doctor also sits in every Patanjali Chikitsalaya from whom
consultation can be obtained regarding various medicines.
Patanjali herbal products are also available at Post offices across the
country.
A shop is established for sale of products wherever a yoga camp is
organized.
Patanjali has prepared disease specific CDs which they sell through
their various outlets.

Partnerships
Future Group
Patanjali Ayurveda recently declared its tie-up with Future Group on 9
October, 2015 under which, all the consumer products of the Patanjali
group will be available for the sale in the latters Nilgiris, Food Bazar, Food
Hall, Big Bazaar retail outlets.

References
1. http://economictimes.indiatimes.com/industry/consproducts/fmcg/patanjali-enters-big-retail-with-future-group-tieup/articleshow/49285002.cms
2. file:///C:/Users/user/Downloads/Marketing_through_spirituality_A_cas
e_of.pdf
3. http://caconnectindia.com/ca-ipcc/patanjali-sucess-story/
4. https://in.finance.yahoo.com/news/10-stunning-facts-baba-ramdev053501185.html

5. http://www.iosrjournals.org/iosr-jbm/papers/ies-mcrc-volume1/11.pdf