PATANJALI : Atmanirbhar Bharat ki Neev

Company Intro:

Founded in 2006 by Acharya Balkrishna and Baba Ramdev, Patanjali Ayurved is

an Indian FMCG Company. Patanjali Ayurveda happens to be the fastest

growing FMCG Company in India. Patanjali Ayurveda imports herbs from Himalayas of Nepal.

Objective:

Establishing science of Ayurveda in Accordance and coordinating with the latest Technology and ancient Wisdom.

Vision:

Keeping nationalism, Aryurved and yog as our pillars, Patanjali is committed to Create a healthier country. To raise the pride and glory of the world, Patanjali is geared up to serve people by bringing the blessings of nature into their Lives.

With sheer dedication, scientific approach, astute planning and realism, Patanjali is 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 for the rest of the World

Turnover:

In 2018-19, Patanjali Ayurved had alone reported a revenue of Rs 8,329 crore, Patanjali has achieved a revenue of Rs 3,562 crore in April-September 2019-20, the highest ever in the first half of any financial year. The Haridwar-based firm has reported a revenue of Rs 1,793 crore in April-June and Rs 1,769 crore in July-September in the ongoing fiscal year.

Growth Strategy:

Growth Strategy is designed to expand an organization’s performance usually as measured by sales, profits, product mix, market coverage, market share, etc.

Reach:

• Patanjali’s household penetration had increased from 27.2% in 2016 to 45.4% in 2017.

• While Maggi remained the fastest growing brand with a global reach, Patanjali’s jaw-dropping increase of 400 million customer reach points in Asia made it officially the biggest grower in 2017.

In 2017 it focused its marketing activity in southern and rural India, with south India seeing the highest penetration growth (183%) and rural areas having far higher growth than urban.

• Patanjali’s product offering is as diverse as it can get. It spans

across various product lines with a very low “product mix

consistency”.

•  Patanjali Ayurved also announced its foray into the dairy segment by launching milk and milk-based products, including curd and cheese, targeting sales worth Rs 1,000 crore from the segment.

S.W.O.T. Analysis :

Competitive Strategy :

Brand Strategy

Patanjali Ayurveda has products ranging from dairy, cookware, eatables, cosmetic products, and so many others. Baba Ramdev is of the opinion that the idea of using “Made in India” products should be the ultimate goal.

The strategy of Made in India has worked wonders for Patanjali Using campaigns like Swadeshi vs Videshi Brands. and Baba Ramdev has made the best use of his Swadesh oriented fan following in endorsing his ‘Swadeshi‘ products & positioning

them against ‘Videshi’ Products.

Patanjali Ayurveda is already en route to establish mega production facilities in Noida, Nagpur, Indore along with Andhra Pradesh in the list. The Company also has small scale units which range over at about 50 in number which make papad, pickles, mustard oil, salt,

jam, etc. and so on. It is also estimated that the organization would also be tapping into the apparel line, pure drinking water, and security services as well. This is their ultimate brand strategy.

The Verdict

Patanjali Ayurveda is literally an organization that has risen far above its competitors like clockwork.

The mindset behind this is to use “khadi” OR “desi” products and to banish any foreign competitors from the country. A meticulous case study done by Patanjali for increasing their brand value and strategy has definitely worked wonders for them. It is no doubt that it is No. 1 in India.

No Financial burden and minimal adverstising budget 

Baba Ramdev's 40 crores corpus, that he garnered from his yoga shiviris, satellite television shows and donations, was utilized to kick start the empire. Further Patanjali relies heavily on word-of-mouth advertising, with a few commercials to strengthen its brand identity and promise.

Patanjali remains perhaps the only company in the FMCG space that didnt rely on advertising for its scalability during its nascent years. Word of mouth publicity and powerful endorsements by Baba Ramdev via his yoga camps helped build scale.

Brand Value 

The estimated revenue as of 2017-18 for the Patanjali Group of Companies is about $159 million, which is unlike anything that has ever been witnessed before.

"In the next five years, Patanjali is touted to be one of

the top players in the FMCG sector with the total brand

 value of over $288 billion."

What gives Patanjali an edge over its competitors?

1. Pricing :- Patanjali undercuts its competition by 15-30% across product categories. It’s shampoos cost less than P&G and Unilever’s offerings, its Noodles are Rs 10 less than Nestle’s Maggi, its cornflakes cost less than Kellogg’s offerings, it’s biscuits cost less than Brittania’s offerings, and so on. In its own ‘ayurvedic’ products category, of course, it tends to cost less than comparable allopathic medical brands as well.

2.Umbrella brand approach : Another interesting strategy of the company has been to avoid creating sub-brands. So whereas Unilever and P&G focus on building individual brands, Patanjali’s strategy has been to create a mother-brand and market multiple products under its name. Which is not to say that it does not use individual brand ambassadors, such as Olympian Sushil Kumar and actor Hema Malini.

3. Appeal to Patriotism : The real ownership of companies can be so complex that it is difficult for people to realise that Hindustan Unilever and P&G India are more Indian in their ownership than the parent companies that they are associated with. However, the advertising and branding of Patanjali has succeeded in creating the impression that it is the only 'Indian' brand in the market and that buying their products is an expression of nationalism much like chanting 'Bharat Mata ki jai'.

Conclusion :

From the above, it is clear that Patanjali Ayruveda is on a fast growth trajectory. The only possible hiccups it might face are from expanding into too many categories too quickly, and reputation damage that may be caused if they get into any trouble with the Food and Drug Administration. But failing that, there is no doubt that this brainchild of two religious gurus with no prior experience in running a business, let alone one as competitive as FMCG, have shown tremendous resilience and acumen to grow to where they are today.