Post on 12-Apr-2017
Patanjali Ayurved Ltd.
Introduction • It 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 and HSBC, Patanjali is the fastest growing FMCG company in India. Ramdev baba has stated in his interview with CNN-News18 that profit from Patanjali Products goes to charity.
Timeline • 1997: In 1997, Patanjali Ayurved Limited
(PAL) started as a small pharmacy in Haridwar, by P.P. Swami Ramdev Ji Maharaj.• 2006 : Established as a Pvt Ltd. company .
Acharya Balkrishna established Patanjali Ayurved Limited as a formal private company on 13th January 2006 along with Baba Ramdev.
Timeline• 2010: The world’s largest food park opened On
5 January 2010, the world’s largest food park opened 20km from the holy city of Haridwar, Uttarakhand, India. The INR 500 cr Patanjali Food and Herbal Park is spread across ~95 acres in first phase; and has generated direct employment for 7,000 people. The construction started in February 2009 and was completed in a record time of less than a year
• 2012 : Hit revenues of Rs. 450 cr, 450 stores
MARKETING MIX MODEL
• PRODUCTAll Existing Products and herbal products for different diseases.• PRICEValue Based Pricing ,Alignment of cost customers & competitors. • PLACEFranchise Stores, Super/Hyper markets & Online marketplace• PROMOTION Yoga Shivir, Youtube, Social media ,Free media promotions
SEGMENTATION• Demographic basis –Age groups from 15-64• Psychographic basis –Personality, lifestyle and classTARGETING• 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
PRODUCT LINENUTRITION &SUPPLIMENTS
BADAM PAK
CHYAWANPRASH
GHEE
HONEY
HEALTH DRINK
FRUIT JUICE
GROCERY
CANDY
GRAM FLOUR
CORN FLAKES
HERBAL TEA
MUSTARD OIL
RICE
SALT,SPICES
MEDICINES
ASAVA
BHASMA
GUGGUL
PARPATI
SYRUP
VATI
PISHTA
CHURNA
HOME CARE
AGARBATTI
DISH WASH BAR
HERBAL GULAL
PERSONAL CARE
BODy LOTION
TOOTH BRUSH ,TOOT
H PASTE
EYE CARE
FACE CREAM ,AGING CREAM
HAIR OIL, SHAMPOO,
CONDITIONER
BOOKS & MEDIA
AUDIO CASSETTE
AUDIO CDS/MP3
ELECTRONIC ITEMS
DVDS & VCDS
BOOKS
HEALTH CARE
DIGESTIVE
HEALTH &
WELLNESS
MARKETING AND BRAND BUILDING
1. 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
2. YOGA SHOWS• Pan India Yoga Shows• Broadcasted in 170 countries• 3 books and 2 video CDs
PERSONAL BRANDING• Cult personality and charisma of Baba Ramdev• 535 branches of Patanjali Yog Ashram
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
SOCIAL MEDIA• 500kfollowers 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
DISTRIBUTION AND SUPPLY CHAIN
• 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
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
BRANDING STRATEGY
Patanjali says: “Pick our product - it is the same product with no harmful chemicals. Plus by buying our products, you are ensuring the money you spend stays in India”. And that additional value proposition is true for all their products and that is the reason they have branded every product as a “Patanjali product”. , Patanjali can simply offer a “no chemicals & swadeshi alternative” to the people who have got used to this new product
Loyal Community
While one might be tempted to believe that Patanjali has grown exponentially within such a short span of time, the fact is that it is a result of around 20 years of relentless work around Yoga and Ayurveda by Ramdev. In those 20 years Ramdev has built a extremely loyal community of followers.
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 vyakti nahee hai.
Company Analysis
STRENGTHS
• 100% natural products .• Brand image of the trust • Considered socially responsible for health of the society• Established distribution network in urban areas
WEAKNESS
• Low export levels• Strong competitors and availability of
substitute products• Less expenditure on marketing and
promotional activities • Less distribution network in rural areas
THREATS
• Political Interference• Removal of import restrictions• Controversies
OPPURTUNITIES
• 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
Patanjali’s Key To Success
1. Increasing number of health-conscious people: In recent times, people have become more health conscious which is evident from the fact that many companies are investing money in organic and Ayurvedic products.
2. 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
3. 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 modeland 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.
Conclusion
Swadeshi factor Patanjali is happy to co-exist with indigenous companies, multinational ones are a different matter. "Humara ek simple funda hai: MNCs ko replace karna (We have a simple principle: we want to replace MNCs)," said Ramdev."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.
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