Researchprojectbyirshadshaikh Converted1 210405154402
Researchprojectbyirshadshaikh Converted1 210405154402
AYURVEDA)"
A project submitted to
SUBMITTED BY
This is to certify that Mr IRSHAD SHAIKH has worked and duly completed her/his
Project Work for the degree of Bachelor of Management Studies under the Faculty of
Commerce in the subject of RESEARCH PROJECT and her/his project is entitled,
“Mrs VAISHALI KOTHIYA” under my supervision.
I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of any
University.
It is his own work and facts reported by her/his personal findings and investigations.
Guiding Teacher
Date of submission:
Declaration by learner
I the undersigned Mr IRSHAD SHAIKH here by, declare that the work embodied
in this project work titled A Study On Marketing Strategy Of Patanjali Ayurveda
forms my own contribution to the research work carried out under the guidance of
Mrs. Vaishali Kothiya is a result of my own research work and has not been
previously submitted to any other University for any other Degree/ Diploma to this or
any other University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.
Certified by
To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.
I would like to thank my Principal, Dr. Satinder Kaur Gujralfor providing the
necessary facilities required for completion of this project.
I take this opportunity to thank our CoordinatorMrs. Vaishali Kothiya for her moral
support and guidance.
I would also like to express my sincere gratitude towards my project guide Mrs.
Vaishali Kothiya whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference
books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.
I. CERTIFICATE
II. DECLARATION
III. ACKNOWLEGMENT
INDEX
SR.NO PAGE NO.
INTRODUCTION 6
1.
1.1 HISTORY 8
RESEARCH METHODOLOGY 9
2.
OBJECTIVES 11
HYPOTHESIS 12
SCOPE OF STUDIES 13
LIMITATIONS OF STUDY 14
SAMPLE SIZE 15
DATA COLLECTION 16
3. LITREATURE REVIEW 18 - 74
5. FINDING 90
6. CONCLUSION 91
7. SUGGESTIONS 93
8. BIBLIOGRAPHY 94
INTRODUCTION TO THE STUDY
Acharya Balkrishna established Patanjali Ayurveda Limited in the year 2006 taking
inspirationfrom YOGRISHI BABA RAMDEV for the objective of establishing
science of Ayurveda in accordance and co-ordinating with the latest technology and
ancient wisdom.
In March 2012, when Ramdev has announced his entry into fast moving consumer goods
and Herbal Retail Markets with his “SWADESHI” line of products, the Yoga Guru today has
emergedas one of India’s more successful brands in the otherwise less penetrated rural
markets too as his 150-200 dedicated outlets in 2012 have grown to almost 4000 now,
prompting Ramdev to sell the FMCG range in the open market too.
Baba Ramdev established the Patanjali Ayurved Limited in 2006 along with Acharya
Balkrishna with the objective of establishing science of Ayurveda in accordance and
coordination with the latest technology and ancient wisdom.
Already 12 succeessful units running including units for packaging materials and
containers e.g flour mill, candy plant, herbal cosmetics and detergent plant, digestive
unit, juice plants etc.
Sale Channels: Patanjali brand with national and international reach, more than 85000
retail channels- accessible to Patanjali products.
EMPLOYMENT GENERATION
Currently PAL employs more than 6000 laborers in its processing activities.
Attaining accuracy in any research requires in depth study regarding the subject. As
the primemotive of the project is to know the marketing strategies of Patanjali
Ayurveda and how it is affecting Indian Economy.
Descriptive research includes Surveys and Fact findings enquiries of different kinds.
The maincharacteristics of this method is that the researcher has no control over the
variables; he canonly report what has happened or what is happening.
DATA SOURCES: There are two types of Data. Source of Primary Data for the
present study iscollected through questionnaire and answered by the consumer of
Patanjali Ayurveda.
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 fromrespondents 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 doneis Descriptive Research.
To Study their different strategies for their survival in the hyper competitive Indian
FMCG Sector.
To Find out how the digital marketing strategies have affected the sale of Patanjali
Products.
In the scientific method, the hypothesis is constructed before any applicable research
has
been done, apart from a basic background review. You ask a question, read up on
what hasbeen studied before, and then form a hypothesis.
A hypothesis is usually tentative; it's an assumption or suggestion made strictly for the
objective of being tested.
NULL HYPOTHESIS
The null hypothesis reflects that there will be no observed effect in our experiment. In a
mathematical formulation of the null hypothesis, there will typically be an equal sign.
This hypothesis is denoted by H0. There is no significance difference between the age
groups on the consumers buying behavior.
ALTERNATE HYPOTHESIS
The alternative or experimental hypothesis reflects that there will be an observed effect for
our experiment. In a mathematical formulation of the alternative hypothesis, there will
typically be aninequality, or not equal to symbol. This hypothesis is denoted by either Ha
or by H1. There is a significance difference between the age groups on the consumers
buying.
Scope Of The Study
The research provided fruitful information about Patanjali Ayurveda Kendra PvtLtd.
For conducting the research, the target population was Childrens, Mens andWomen.
The project data was collected and analyzed by creating google forms andthrough the
survey method.
Limitation of The Study
1) Time Constraints.
2) Limited number of Respondents.
3) Could’nt visited to the head office.
4) The data obtained in some cases may be biased.
5) Difficulty in communicating within the city while conducting the survey.
6) The information obtained from the consumers based on questionnairewas
assumed to be factual.
7) Since the survey is based on sampling method, it does not disclose the
characterof the entire customer.
8) Product unavailability in the market is one of the biggest limitationfor the
Patanjali Ayurveda.
SAMPLE SIZE OF THE STUDY
No. of.
Variables Sub Samples Percentage
Respondents
Male 128 64.0
Gender
Female 72 36.0
Business 20 10.0
Employees 28 14.0
Students 60 30.0
Occupation
Agriculture 28 14.0
Daily Wages 24 12.0
House wife 40 20.0
Less than 3 44 22.0
Family
3-5 120 60.0
members
Above – 5 36 18.0
Less than 10,000 20 10.0
Income 10,001-20,001 84 42.0
Group 20,001-30,000 60 30.0
Above 30,000 36 18.0
DATA COLLECTION OF THE STUDY
The data collection of this study is collected through questionnaire from respondents.
MARKETING :
Marketing is the subject of the Management of exchange
relationships. The American
Marketing Association has defined marketing as “the activity,
set of institutions, and processesfor creating, communicating,
delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large”.
Competition Strategies.
MARKETING MIX:
Let us now have a brief idea about The four components of marketing mix:
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
tricky job. Many Factors like Demand for a product, cost involved, consumers
ability to pay, prices charged by the competitors for similar
products, governmentrestrictions etc. have yo be kept in mind
while fixing the price. In fact, pricing is a very crucial
decision area as it has effect on demand for the product and
also on the profitability of the firm.
All their products are either 100% natural or with the minimum of chemical
ingredients.
The Soundarya Face Wash is highly popular with only natural ingredients
in it’s such as tulsi, amla, aloe vera, neem and orange peel extract. The
Patanjali Sunscreen is all natural, made ofcucumber, wheat germ, mango
ginger, turmeric, fenugreek, aloe vera, coconut oil and with an
SPF 30.
Apart from the above-listed products, some of the other most popular
and highly rated products include the Aloe Vera gel, Multani Mitti
soap, Tejus beauty cream, Badam Rogan,Divya Kanti Lep face mask,
Boro Safe Antiseptic Cream, rose water and more.
For overall health, try their Amala juice which can be mixed with their
Aloe Vera juice to curemany ailments naturally.
You can buy Patanjali Products from Flipkart or
Amazon
Contents:
With skin care products, a massive concern always remains about the chemicals that
are usedin cosmetics. Moreover, several foreign brands also tend to be tested on
animals which is a major ethical concern. Similarly, imported products sometimes
also contain animal-derived matter which is a strict no-no for vegetarians
2
herbs and 100% natural.
Here’s the detailed list of all skin care options in the Patanjali bouquet:
Face Wash
Face Scrub
23
5.2 Hair Care Products
The hair of Indian women is considered to be their pride. Indeed, of all the countries
in the world, Indians are envied for their lush black hair. But in these days of mighty
air pollution andvehicular smoke, keeping your hair clean and well-maintained can be
quite a task
Moreover, shampoo brands by multi-nationals tend to position themselves as containing fancy
ingredients like “Pro nourishment”, “Beta-carotene” etc. No one really knows what this
ingredient are. For all you know, these are heavy lab-created chemicals which will give your hair
a temporary shine but damage it in the longer run.
The secret behind the glorious hair of Indians is the time-honored tradition of Ayurveda. Wehave
all used shikakai at some point in our life to make our hair lustrous. Patanjali’s hair products
bring the same Ayurvedic formulations in a bottle. Here is the complete range of Patanjali’s hair
care products.
Shampoo
Conditioner
75gm
27
MOGRA BODY CLEANSER 75gm 25
Soaps, shaving creams, detergents: there is so much variety available in the products
that sometimes it becomes hard to make a choice. Moreover, it often happens that we
have topurchase different brands in order to meet our daily need of toileteries.
For example, a company that makes shaving cream might not manufacture detergent.
Similarly, you don’t want to use some random product that contains chemicals for
washing
your little infants.
Thankfully, Patanjali offers all the toiletries products that you need under one
single umbrella.And the fact that this products are natural and contain no
chemicals is definitely an added bonus.
Here is a complete list of Patanjali’s toiletries products:
DETERGENT POWDER SUPERIOR 1kg 65
Detergant cake
DETERGENT CAKE POPULAR 250gm 12
Handwash
HAND WASH REFIL PACK
200ml 40
Eye Care
Drishti eye drop 15ml 25
Shishu Care
SHISHU CARE BODY LOTION 100ML 85
30
5.4 Herbal Home Products by Baba Ramdev
Finding Ayurvedic medicines easily can be a task especially in big cities. Often, one
has to travel a long distance to find a specialized shop that sells the herbal and
Ayurvedic items that you need. And these might not necessarily be medicines.
Research has shown that consuming Ayurvedic herbs on a daily basis makes your
immune syste.m strong while negating all the ailments in your body in order to keep
you fit. We have all been made to drink turmeric milk atsome point by our grandma.
And we have also known of elders who have been extremely fit and active by
regularly consuming amla juice. Similarly, several world-renowned sportspersons
have talked about how they stayed fit by eating a couple of spoons of
Chyawanprasheveryday
As far as kitchen needs go, ghee forms an important part of the diet of any Indian
household.In many towns and cities, it is difficult to find pure unadulterated ghee
unless you make it at home yourself which is a time-consuming process.
For all these herbal and traditional products, all you need to do is visit the nearest
Patanjalistore.
Aggarbati
Sr.No
MADHURAM YAJNA SUGANDHAM 25gm
1
MADHURAM WHITE FLOWER 25gm
2
MADHURAM SANDAL 28gm
3
MADHURAM MEDITATION 28gm
4
MADHURAM JASMINE 28gm
5
MADHURAM ROSE 28gm
6
MADHURAM AMBER 25gm
7
MADHURAM OUDH 25gm
8
MADHURAM KONARK 24gm
9
MADHURAM UTSAV 24gm
10
MADHURAM LAVENDER 28gm
11
Pachak Hing Peda 100gm 100GM 3
GULKAND 400GM 5
3
AMRIT RASAYAN 1KG 160
Chyawanprash
Badam Pak
Gheee
Health Drinks
Amla Aloevera Juice with Lichi Flavour 70GM 5
Aloevera Juice with Fibre and Orange Flavour (L) , Read Review 1100GM 200
36
5.6 Food Products
We all remember the famous ban on Maggi noodles a couple of years ago. This was done
afterthe government found unacceptable amount of lead in these noodles. Similarly, there
have been several concerns about the biscuits and namkeens that are available in the
market.Whilesome of them contain hydrogenated vegetable oils, there are also issues with
the quality of maida which is used to produce them.
Patanjali has an entire range of food products which have become mightily popular around
thecountry over the last few years. Here’s a range of some food products made by
Patanjali:
BUSCUITS AND COOKIES
Herbal Tea
DIVYA PEYA 100GM 50
DIVYA HERBAL PEYA 50GM 50GM 70
Corn Flakes
CORN FLAKES MIX 500GM 145
CHOCO FLAKES 125GM 55
Noodles
ATTA NOODLES 70GM 15
Atta Noodles Chatpata 60GM 10
Atta Noodles Classic 60GM 10
Namkeen
38
MOONG DAL NAMKEEN 200GM 52
Spices
AJOWAN 100GM 38
Jam
MIXED FRUIT JAM 500GM 70
GUAVA JAM 500GM 150
PINEAPPLE JAM 500GM 70
Sugar Products
MADHURAM SUGAR (JAGGERY POWDER) 1KG 60
Pickle
AMLA PICKLE 1KG 95
APPLE CHUTNEY 500GM 75
TOMATO KETCHUP 500GM 70
LEMON PICKLE 400GM 65
Oats
OATS 200GM 35
Bura
Bura 1KG 65
Candy
MANGO CANDY 250GM 55
BEL CANDY 500GM 140
AMLA CANDY 500GM 140
40
AMLA CHATPATA 500GM 45
Murabba
Mustard oil
Rice
Papad
Dental Care
Their home products, especially the cleaners are also highly rated among customers. Theirskyrocketing sales
are a testimony of their products.
Compared to brands like Forest Essentials and Kama Ayurveda, Patanjali is the most affordableline of genuine
Indian Ayurvedic products.
42
PRODUCT SIZE PATANJALIPRICE COMPETINGBRAND SIZE PRICE
(in
(g) (g) (in Rs)
Rs)
This diagram shows the income composition of Patanjali Ayurveda, which shows that 21% of
income is generated from healthcare ayurvedic products of Patanajali, 40% of the total
incomegenerated by patanjali is from food and beverages and around 39% of share of
income is generated from cosmetics and hame care products of patanjali.
Patanjali is a swadeshi brand with a main aim of creating awareness among Indian
people about swadeshi products. One of the main objectives of the company was
market penetration
as there were already strong players like Hindustan Unilever, Dabur, Baidyanath,
Reckitt Benckiser, and Procter & Gamble. So, in order to increase its products
acceptance in the market Patanjali sells its products at a discounted rate. The profit
generated is either reinvested in R&D or used for social welfare. On one side where
big brands like HUL,P&G,RB produce and sell FMCG products and brands like
Dabur and Baidyanath produce and sell ayurvedic products, Patanjali as a brand
combines both FMCG as well as ayurvedic products, but sells its products as FMCG.
Hence, its customers show more interest towards its productsas the get the benefit of
Ayurveda as well. As per the report of the Edelweiss: “Patanjali‟s management has
set revenue target ~ INR 20000cr and is confident of achieving it, led by its presence
in most consumer categories. The company is working on plugging the gaps in the
supply chain and distribution with plans afoot to implement ERP (for better inventory
management) and consolidate its online presence. Strong innovation and new
products pipeline, pricing discounts to the peers (15-30) %”
Patanjali – Strategies andChallenges
Patanjali, Yog guru Baba Ramdev’s , has gained a huge mind and
pocket-share (lately) with a multitude of new products getting launched
(almost) every month. From their controversial “Maggi” to Shuddhi, a
cow urine-based floor cleaning solution, the company has jumped into
various product categories. Patanjali, which started selling its products
through their own stores in key Indian cities many years ago, has now
partnered with a leading retailer, Future Group (operator of Big Bazaar)
to sell its branded products and appeal to the rural-urban consumer. It has
also started selling its products through traditional mom-and-pop stores
thisyear to penetrate deeper.
Anti-foreign campaigns – Time and again, Baba Ramdev raised voices to boycott
“foreign” products, ranging from shampoos to colas, by showing their ill-effects. This
further created a loyal consumer base that promoted word-of-mouth advertising for
Patanjali and cleared ways for different product categories.
Loyal employee structure– It is said that most of their employees are volunteers and,
from manufacturing to selling, most of them do not take regular wages.
No financial burden and minimal advertising budget – Baba Ramdev’s ~40 crore
corpus, that he garnered from his Yoga shivirs, satellite television shows and
donations,was utilised to kick start the empire. Further, Patanjali relies heavily on
word-of-mouth advertising, with a few commercials (such as for cow’s ghee) to
strengthen its brand identity and promise.
Challenges
Maintaining quality and brand promise – The key to buying any Patanjali product
is quality and purity (possibly, that’s why its cow milk ghee’s sales forms ~50% of its
revenues). This stands as a core brand promise. Consumers associate Patanjali with
these attributes. Without a consistent adherence to quality standards across all its
product categories, Patanjali cannot shake the boardrooms of FMCG giants. Quality
becomes even more important as the company starts relying on contract manufacturers
for newer and “inconsistent” product categories. You just can’t open an apparel and
shoes manufacturing plant overnight, if you are running a food and medicineplant!
An ever expanding product portfolio with brand extensions – Few brands, such as
Virgin Group, have done a tremendous job at brand extensions, though with failures in
many categories. Considering Patanjali has forayed into categories (such as shoes,
apparels, home cleaning solutions, etc.) that are not directly linked with ayurveda or
purity or goodness, ensuring their loyal consumers do not get confused with what it
wants to do with the brand and how far it wants to stretch, could be a challenge in the
longer run.
do not perform well. It can also confuse consumers if Patanjali want to increase
“product
depth” and launch variants with minute differences. Parle, a biscuit and snacks
company, firstnurtured its hide and seek range to a “brand” and then launched newer
“related” biscuit categories within Parle’s Hide and Seek range. Patanjali can do
something on similar lines.
Image driven branding – Consumers don't just buy products to suit their needs,
insteadthey buy a solution that offers them value with “trust”. “Patanjali” is largely
co- branded/co-promoted with Baba Ramdev and his companion Acharya Balkrishna.
Any questions arising on their integrity will surely affect the brand’s performance.
Suggestions:
In my opinion, Patanjali should focus on fewer product categories that are linked
and consistent. They should also focus on creating sub-brands for newer product
lines with a solidbrand architecture to offset any future risks associated with umbrella
brand “Patanjali”. This will help them create an even greater product depth and appeal
to different consumer segments. Moreover, a consumer who uses cow urine-based
“Patanjali Shuddhi” for home floor cleaning is less likely to buy “Patanjali Ghee”. So
you Patanjali folks, better use market analytical skills to market Ghee and Shudhi
together. Having said that, they should also, at
least slowly, move away from a being a “Baba image-driven” company, in case they
wish to
VISION
Keeping Nationalism, Ayurveda and Yog as our pillars, we are committed to create a
healthiersociety and country. To raise the pride and glory of the world, we are
geared up to serve people by bringing the blessings of nature into their lives. With
sheer dedication, scientific approach, astute planning and realism, we are poised to
write a new success story for the world.
MISSION
Making India an ideal place for the growth and development of Ayurveda and a
prototype forthe rest of the world.
. Baba Ramdev is constantly pushing Indian people to start using Indian brands and
save the economical growth of the company. Patanjali is planning to take over all
reputed brands dealingin beverages and foods.
Some of the sectors where Patanjali products are already doing great:
Foods – Including jams, biscuits, noodles, oats, pulses and many other lines of food
products.
Beverages
Cleaning agents
Products that are already making news and have forced competitors to bring their
prices downin order to save their presence in the market
Dabur Honey: Patanjali Ayurved is providing people with option to buy quality
honey ataround 30% lesser price than Dabur.
Colgate: Patanjali Ayurved is preaching how Colgate cheated people in early days. And
howayurveda is the best way to treat your gums and your teeth.
Patanjali Noodles: Patanjali Noodles rose to fame while Maggi was away from the
marketand has done quite damage to Maggi, which once was the king of Noodle’s
market.
Two factors that have made Patanjali Ayurved the fastest growing FMCG company in
India are:
a) Use of Natural Ingredients and Ayurved and b) Pricing. Pricing plays an extremely
important role in putting Patanjali Ayurved ahead of its fierce competitors. Hindustan
Uniliver and P&G are trying their level best to cope up with the
competition but the love for Indian product growing in people is not helping
them
Patanjali is educating people about the benefits of using their products and are also
using pricecomparison as an effective marketing strategy. The pricing strategy is
clearly penetrative pricingbecause Patanjali knows that it cannot conquer the market
with higher prices. Plus, if the ingredients are natural and domestic, the cost of the
product is lesser too. There is a drop of 25-30 percent of price in almost every product
when compared to International Brands which is helping Patanjali reach each and
every household in India
Place in the marketing mix of Patanjali Ayurveda
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-established trade relationis 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,
Patanjali is surely going to have a lot of fund for expansion and growth.
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 asthe margins in the product are good too.
While a lot of people shifted to Patanjali Products because of Baba Ramdev, a pool of
Indians started following him when they realized how good and cheap Patanjali
products actually are. Patanjali Ad campaigns have always focused on surpassing
information to people that “revenueof Patanjali is for Charity and not for Brand
Owners”. Secondly, it is better that the revenue generated from day to day products
remains within India rather then the profits going out to foreign companies. Till date,
Indians did not have many alternatives to foreign products but nowthey do have
localised products.
Baba Ramdev took the opportunity in his hands and has started influencing Indians by
sharing information about price gap and how useful herbal Patanjali products actually
are. Baba Ramdevhas ceased the opportunity with both hands and has made huge
difference to the branding of Patanjali Ayurveda. Now, Patanjali is also selling the
products online through E-commerce, increasing their penetration even further.
Only time will tell how people from around the world are going to receive Patanjali
products asan alternative of products from Hindustan Uniliver and P&G.
SWOT Analysis of Patanjali with USP, Competition, STP (Segmentation,
Targeting, Positioning) - Marketing Analysis
9.1 Patanjali
Sector FMCG
Positioning
9.3 Patanjali SWOT Analysis
Strong brand ambassador with Baba Ramdev as its facehelped boost the
business for Patanjali
Patanjali offers new products, new style of marketing etchas changed the
market dynamics
Strengths
Weaknesses
Big players have their existing model which is sturdy,which can overcome
new competition from Patanjali
Threats
9.4 Patanjali Competition
Competitors
The brandguide table above concludes the Patanjali SWOT analysis along with its
marketing and brand parameters. Similar analysis has also been done for the
competitors of the companybelonging to the same category, sector or industry
PATANJALI KEY TO SUCCESS
While Ramdev is busy propagating Yoga and Ayurveda to create a market for the
products,Balkrishna is creating the products. Their partnership has been phenomenal,
but there are also many other reasons behind the success story.
In 1995, Ramdev was a little known yoga teacher in Haridwar when his close
associate, Acharya Balkrishna, and him set up Divya Pharmacy - under the aegis of
Ramdev 's guru,Swami Shankar Dev's, ashram - to make Ayurvedic and herbal
medicines. The medicinesproved so popular that Ramdev and Balkrishna sought to
scale and diversify into other products. But that proved difficult since Divya
Pharmacy was registered under a trust.
At the same time, with Ramdev's popularity soaring, substantial funds began to come
in - sizeable loans from the likes of NRIs Sarwan and Sunita Poddar, as well as locals
such as Govind Agarwal - which in turn helped to get bank loans. Thus was born
Patanjali Ayurved as aprivate company in 2006, which has since rolled out a range
of products - in healthcare, hair care, dental care, toiletries, food and more - at
breathtaking speed.
"When Divya Pharmacy was set up, we hardly had the money to pay for the
registration," Ramdev told Business Today last year. "For the first three years, till
1998, we distributed the medicines free. From buying the raw materials to grinding
and mixing, we dideverything ourselves," he added.
Today, Balkrishna stands among the richest men in India and Patanjali as one of the
mainplayers in the Indian fast moving consumer goods (FMCG) sector. While
Ramdev is busy
propagating Yoga and Ayurveda to create a market for the products, Balkrishna is
creating theproducts. Their partnership has been phenomenal, but there are also many
other reasons behind the success story:
Media attention: Ramdev rose to national fame as a yoga guru through his
programmes on TVchannels - Sanskar in 2001 and Aastha from 2003. He readily
acknowledges the role of the media in his rise. "Patanjali ko bananey mein ek se 10
per cent humara role hai, baaki role media ka hai (My own role in the rise of Patanjali
is just one to 10 per cent, the rest of the credit goes to the media)," he told Business
Today website.
Smart pricing: Yet another reason for Patanjali's success is the thrift it practices.
"Our profit margins are miniscule because the main aim is not to make profit," said
Ramdev. "Profiting from patients is against the philosophy of Ayurveda, so we aim at
minimum profit from our health products. Our input costs are low because we source
directly from farmers, avoiding middlemen." Salaries are also modest. "Humare
yahaan crore ki salary paane waala koi vyaktinahee hai, (There is no one in our
company who is paid crores as salary)," he added. "Most companies have
administrative costs of around 10 per cent of their revenue, but in our case itis just
two percent."
Variety of products: Already, a few Patanjali products have made major inroads -
apart fromdesi ghee, its toothpaste Dant Kranti, for instance, launched in March 2010,
brought in revenues of Rs 200 crore in 2014/15. Patanjali has also ventured out to
produce many other new items that were mostly produced by foreign companies in
recent months. Patanjali alsosells toothpastes, unpolished pulses and detergents.
"We don't want to put anyone down, but we would like to instil swadeshi pride so that
Indian money does not go out of the country." He is aware that the competition is
gunning for him. "The MNC mindset is such that whenever an Indian does anything,
MNCs think we are competing with them," he said. "MNCs are creating special war
rooms to combat Patanjali. Weare not into any such war rooms. We don't analyse
other companies' strategies or conduct market surveys and feasibility studies. It is only
when people ask for cheap and healthy options
Advertising: Patanjali's own advertising was limited in the past, but has increased
considerablyof late, with ads appearing on general entertainment TV channels (GECs)
such as Star and Zee. The company has also reached out to regional Southern
channels.
Competition from Patanjali prompts FMCGsto hit back
Yoga guru Baba Ramdev has begun his five-day meditation and yoga camp at the
MMRDA Grounds at Bandra in Mumbai. Open to anyone, preparation for this began
days before withvolunteers distributing pamphlets in all adjoining areas.
In camps such as these, Ramdev is known to push products from Patanjali Ayurved,
co- founded by him and Acharya Balkrishna. This camp has been no exception. Yoga
sessions areinterspersed with talks on healthy living and how Patanjali has a solution
to every problem.
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 largest FMCG company
Hindustan Unilever(HUL) is doing: It has 'resurrected' its herbal brand Ayush,
launching it online. A bunch of new
products across haircare, 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 thefuture. 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/ayuvedic products is growing. It is one of the
emerging trends now. As a consumer goods company, we have to respond to this, 5
also acquired Indulekha to grow ourpresence 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 - say they will buttress their
portfolios, making their products relevant to consumers.
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 locatedin the south.
Industry source say herbal and non-herbal companies are now going back to the
drawingboard, looking at how they can incorporate natural ingredients when
developing new products.
Emami
Firm open to acquisitions for strengthening the company's position in the herbal space
Godrej Consumer
Launches neem mosquito coil, a creme hair colour that has coconut oil, new variants
innaturals soaps
Colgate
Firm aggressively advertising its active salt neem toothpaste, as its volume was hit
afterPatanjali's Dant Kanti
Dabur
Himalaya
Recently launched its range of wellness products which aim to provide therapeutic
solutions to consumer
Godrej Consumer, for instance, has launched a neem-based mosquito coil; a creme
hair colourthat has coconut oil; and launched new variants under Godrej No 1, its
naturals platform in soaps. Sunil Kataria, business head (India and Saarc region) at
Godrej Consumer, says, "Our endeavour 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 theherbal revolution, 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, andchildren. 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
fromanti-hairfall creams to pills for staying slim are part of this new initiative.
Quality as the most influencing factors in the purchase decision while price isalso an
important for purchase decision.
Schemes always attract more and more consumers towards particular brand.
Simultaneously, it gives idea about the factors which consumers look most in the
productbefore they make final decision.
Price off and extra quantity is the two main offers/schemes which consumers have
come across at the time of purchase.
People are ready to buy products of brand which suits their budget means more
quantity
Extra quantity with less or same price, more satisfaction, quality and other factors
cloutconsumers to switch over to other brands.
Consumer remember that name of the product by the company name and also from the
past performance of that company.
CONCLUSION
Patanjali Ayurveda has given a trouble to many marketers with its individualisticway
of marketing.
Patanjali Ayurveda had rattled the whole FMCG’s Sector and bought a mutiny in the
A point to note is that many people are buying due to its hedonic value attachedto 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 stratigies to recapture the loss market share? Only time will tell.
There is doubtlessly Patanjali is a problematic drive in the FMCG space and is a solid
risk for the occupants, yet Patanjali has its difficulties. A political relationship with
anypolitical gathering is a twofold edged sword as a change in political administration
implies terrible news.
For another, Patanjali does not have a multitude of B-school directors and advertisers,
at HUL. An indication of that hole was noticeable when, after the dispatch of the atta
noodle,the Food Safety and Standards Authority of India said that Patanjali did not
have any significant bearing for endorsements.
Ramdev figures all endorsements are set up and it might be a scheme to censure him.
Inthe event that he is not kidding, and it appears he is, it's most likely time for
Ramdev to get some administration heave in his positions.
SUGGESTIONS
Most of the patanjali consumers are facing problem like; products are not available in
themarket regularly.
So, they are suggested to increase their stock and make sure that the products are
available inthe market regularly.
So, Patanjali Ayurveda should increase their stock 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 willrequire.
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