3. The Baba Ramdev Phenomenon by Kaushik Deka traces the success story of
India’s celebrated yoga saint and his market dominance
Stronghold and expertise on the subject
Has a profit making venture that’s constantly growing
4. Hires the best
Understands the market
Believes in leveraging a successful personal brand
and connecting with the audience
8. 1
2
3
4
1997
PAL started as a small pharmacy in Haridwar
2006
Established as a Pvt. Ltd. company
2010
The world’s largest food park opened
TIMELIN
E
2012
Hit revenues of Rs. 450 cr, 450 stores
11. Strengths Weakness
OpportunitiesThreats
S W
T O
• Low export levels
• Strong competitors and
availability of substitute
products
• Less expenditure on
marketing and promotional
activities
• No distribution network in
rural areas
• Changing lifestyle and rising
income levels
• Change in trend of
becoming more health
conscious and using more
organic products
• Large domestic market
• Rural market to be tapped
• 100% natural products with
little side effects
• Brand image of the trust
• Considered socially
responsible for health of the
society
• Established distribution
network in urban areas
IDEA
SWOT ANALYSIS
• Political Interference
• Removal of import
restrictions
• Controversies
12. PRODUCT
All Existing
Products and
herbal products 01
for
different diseases
.
04
PROMOTION
Yoga Shivir,
Youtube,
Social media
Free media
promotions
03
PLACE
Franchise Stores,
Super/Hyper markets
& Online marketplace
PRICE
Value Based Pricing
Alignment of cost,
customers &
competitors.
02
SEGMENTATION
Demographic basis – Age groups from 15-64
Psychographic basis – Personality, lifestyle
and class
TARGETING
75% of the world’s population uses herbal care
products
65% of India’s rural population uses Ayurveda
remedies
Trend shift towards natural herbal products
POSITIONING
Ayurvedic products are positioned as products
who can treat diseases with zero side
effects
Juices and food products are portrayed as a
healthy way of life
MARKETING MIX MODEL
13. Market
Penetration
- Yoga Shows
- Spiritual
lessons in
ashram
Product
development
- Research in
Ayurveda and
herbal medicines
Market
Development
- Targeting youth
and newly
health conscious
customers
Diversification
- Cosmetics
- FMCG
products
- Health Drinks
EXISTING
PRODUCTS
NEWMARKETS
NEW
PRODUCTS
EXISTING
MARKETS
Products like Patanjali Shampoo and health
drinks are in growth stage of the life cycle
New diversified products like fertilizers and
clothing are in introductory stage
ANSOFF MATRIX
PRODUCT LIFE CYCLE
15. MARKETING AND
BRAND BUILDING
03 ONLINE & OFFLINE SHOPPING EXPERIENCE
Authentic and trained sales consultants
Customers problems solved on 1:1
interaction
Easy to navigate website UI with full details
HD resolution photos and videos of products
02 YOGA SHOWS
Pan India Yoga Shows
Broadcasted in 170 countries
3 books and 2 video CDs
01 PERSONAL BRANDING
Cult personality and charisma of Baba
Ramdev
535 branches of Patanjali Yog Ashram
04 ADVERTISEMENTS
Commercials on Star TV and
ZEE TV
Simple ads to disseminate
info – INFOMERICALS
No false promises
Spending is only 1 – 1.5
% of revenues turnover
05 SOCIAL MEDIA
500k followers on twitter
6 million Facebook page likes
50k subscribers for YouTube
channel
11 million views on YouTube
channel
Language – Hindi and English
Regular updates and replies
16. 0
5
10
15
20
25
30
35
40
Discount%
Patanjali vs Competitors Price Comparison
Product
Ghee
Toothpaste
honey
Bathing Soap
Chyawanprash
Facewash
Cornflakes
Juice
Shampoo
Detergent
e.g. Amla candies
PRODUCT
DEVELOPMENT – 3
PILLARS
1. COMPETITIVE PRICING
Why such low pricing?
Business Philosophy – “Upkar and Not Vyapar”
Make in-roads in lower and lower middle class of society
How is it possible?
Low input costs of production
Procurement of RM directly from farmers avoiding
middlemen
Very Low administrative expenses-
Patanjali – 2% , Industry – 10 %
Impact?
Profit Margin – 11.3%
Revenue – 2000 crores in FY 15
Revenue expected in FY 16 is 5000 crore
2. NATURAL RAW MATERIAL
3. INNOVATION
17. DISTRIBUTION SUPPLY CHAIN
Chikitsalyas
(1500)
Patanjali tied up with Future Group in 2015
Products to be sold in 245 Future Group stores pan
India
Expected sales are 8 crores per month via these stores
Retailers
(over 300000)
Super
Distributors (72)
Arogya
Kendra (3500)
Distributors
(2000)
Supplier
• Collect RM from rural households
• Some money given to villages for building roads,
schools etc.
Producer
• Demand for different item is placed at Haridwar
• Items delivered to distribution centers through
Patanjali’s own transport
Consumer
• Products available at distribution centers/retail
outlets
• Certified doctors also available at Chikitsalyas
No intermediaries at any stage
Significant cost saving on commissions
DISTRIBUTION AND
SUPPLY CHAIN
18. TIMING OF PRODUCT LAUNCH
Started with Ayurvedic medicine – established
faith
Next, health supplements and consumables –
cereals, wheat – “WoM publicity”
Finally FMCG products – soaps, detergents,
cosmetics, baby care products etc.
DESI TAG
Appeal to Indianess – shun MNC
products
“Swadeshi brand” – genuine and
pure
Refused foreign investment to protect
desi tag
HIRING POLICY
Emphasis on hiring expert people with domain knowledge
Doesn’t hire MBAs or “Digital Ninjas”
Preferred Degree – M.Sc. Biology or M.Sc. Pharma
COMPANY CULTURE
Very professional but not profit
maximization
Purpose driven – “reinvest in
society and nation”
Spiritual Culture – no
smoking/drinking
Dress code – white kurta
OTHER STRATEGIES
20. Toothpaste: Patanjali Ayurved is preaching how Colgate cheated people in early days. And how
ayurveda is the best way to treat your gums and your teeth.
Noodles: Patanjali Noodles rose to fame while Maggi was away from the market and has done
quite damage to Maggi, which once was the king of Noodle’s market.
21. Health Care - Patanjali, with its Ayurvedic product line, has capitalized well to the
changing preference of consumer towards organic and herbal products. According to
Nielsen, the health and wellness segment is worth a sizeable 33,000 crores business.
23. Maintaining quality and brand promise
An ever expanding product portfolio with
brand extensions
24. Absence of a key sub-branded range under Patanjali “Umbrella”
Image driven branding
25. The company may also can face impeding challenges in future. Some of the
budding challenges are:
1. Proper amount of training and skilled labour will be required to overcome
constraints that the industry has as a whole.
2. Promoting products in the international market because of improperly strategized
channels of doing business in the foreign market.
3. Determination of degree of localization is not clear and hence requires a lot of
research for various markets.
4. With growth becoming prominent lack of IT knowledge, trust, capital access,
research and innovation will become indispensably important.
5. ISM&H uses plant materials extensively for preparation of their drugs. Although
8000 plants are stated to have medicinal properties, only 500 of them are generally
used. So the resource exploitation is inappropriate.
27. 1. The laws governing the sectors will need to be re-enacted as an impact for
growing medicinal plants, manufacturing products and exports happening in this
arena.
2. Getting cooperation from sectors like Department of Culture, CII, ASSOCHAM,
FICCI.
3. The government needs to have new legislation covering food supplements and
nutraceuticals. The licensing of these is required.
