Minor Project Final
Minor Project Final
Minor Project Final
I BHUMIKA MAGGO, Enrolment No. 11517001722 from BBA-II Sem, Shift I of the
Tecnia Institute of Advanced Studies, Delhi hereby declare that the Major Project Report
(BBA-311) entitled A STUDY OF MARKETING STRATEGIES ON PATANJALI is
an original work and the same has not been submitted to any other Institute for the award
of any other degree. A presentation of the Major Training Report was made on 25 May,
2023 and the suggestions as approved by the faculty were duly incorporated.
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TECNIA INSTITUTE OF ADVANCED STUDIES
NAAC ACCREDITED GRADE “A” INSTITUTE
MAJOR PROJECT REPORT (BBA 114)
CERTIFICATE
Designation: Assistant
Professor
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ACKNOWLEDGEMENT
Any accomplishment requires the effort of many people, and this work is no different.
Racing against time and fast approaching deadlines, the fact that I was able to complete
this project on time would not have been possible without the help and support of many
people. I thank all of them whose patience and support were very instrumental.
I also thank them for making me learn the ethics and culture of corporate world. The kind
of value addition that I have done to my existing knowledge base is exceptional and I will
cherish all these moments throughout my life.
It gives me immense pleasure in mentioning the name of my project guide Ms. Shilpa
Lalwani who’s helping hand led to the completion of my project.
I would also like to thank my family and friends for providing me with monetary as well
as non-monetary support, as and when required. Their trust patience is now coming out in
form of this.
Last but not the least I would like to thank all of them who directly or indirectly helped
me in completing this project that will go a long way in my career, the project is really
knowledgeable and worth cheri
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CONTENTS
1. undertaking 2
2. certificate 3
3. knowlegement 4
4. Contents 5
5 List of Tables 6
6 Executive Summary 7
7 Introduction 8
8 Objective 16
9 Literature Review 18
10 Company Profile 29
11 Research Methodology 34
13 Limitation 52
4 Fig.5.2 pricing 39
11 Fig.5.9 Weakness 50
12 Fig.5.10 Opportunity 51
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EXECUTIVE SUMMARY
The following project is made on the topic “A STUDY OF MARKETING STRATEGIES OF
PATANJALI”. In this project you will get to know about what marketing strategy is and what
are the marketing strategies of Patanjali.
Marketing Strategy refers to a business's overall game plan for reaching prospective
consumers and turning them into customers of their products or services. A marketing
strategy contains the company’s value proposition, key brand messaging, data on target
customer demographics, and other high-level elements. A thorough marketing strategy covers
"the four Ps" of marketing—product, price, place, and promotion.
The objective of this study is to discuss various aspects of marketing strategies and
understand the marketing strategies of Patanjali along with SWOT analysis.
Patanjali Ayurved came into the FMCG market and flourished nearly instantly with the help
of their brilliant marketing strategy and brand positioning. Having catered to the old reliance
of the country on ayurvedic products and medicines, Patanjali marketed itself as pure and
herbal and won over the Indian hearts and minds.
Patanjali was one of the fastest-growing FMCG companies in India in 2016. It was valued at
^3,000 crore (equivalent to ^37 billion or US$480 million in 2020).
For this particular project secondary data followed by descriptive research design is followed.
Conclusion of the project is that it can be said that one who takes challenges can acquire
success with effective and efficient management skills. Being among the competitive market
the company has acquired a huge market share and customer loyalty within a small period of
time.
The essence and foundation of the company emphasizes on going back to the roots. It has
clicked on all levels, has made its place among thousands of other brands and thus, is here to
stay!
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INTRODUCTION
WHAT IS MARKET?
A market is a place where parties can gather to facilitate the exchange of goods and
services. The parties involved are usually buyers and sellers. The market may be physical
like a retail outlet, where people meet face-to-face, or virtual like an online market, where
there is no direct physical contact between buyers and sellers.
A marketing strategy refers to a business's overall game plan for reaching prospective
consumers and turning them into customers of their products or services, marketing
strategy covers "the four Ps" of marketing—product, price, place, and promotion.
A clear marketing strategy should revolve around the company's value proposition, which
communicates to consumers what the company stands for, how it operates, and why it
deserves their business.
There are four elements that make up the marketing mix, in which the 4P’s of marketing
are found to shape the crucial strategies to generate profits in the company and boost
sales:
• Product strategies
• Pricing strategies
• Packaging strategies
• Promotion strategies
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BENEFITS OF A MARKETING STRATEGY
Market research can help chart the efficacy of a given campaign and can help identify
untapped audiences to achieve bottom-line goals and increase sales.
A marketing strategy will detail the advertising, outreach, and public relation campaigns
to be carried out by a firm, including how the company will measure the effect of these
initiatives.
They will typically follow the "four P's". The functions and components of a marketing
plan include market research to support pricing decisions and new market entries, tailored
messaging that targets certain demographics and geographic areas, platform selection for
product and service promotion—digital, radio, Internet, trade magazines, and the mix of
those platforms for each campaign, and metrics that measure the results of marketing
efforts and their reporting timelines.
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WHAT DO THE 4P’S MEAN IN A MARKETING STRATEGY?
The 4 P's" are product, price, promotion, and place. These are the key factors that are
involved in the marketing of a good or service. The 4 P's can be used when planning a
new business venture, evaluating an existing offer, or trying to optimize sales with a
target audience. It can also be used to test a current marketing strategy on a new audience.
For an effective marketing strategy, it is necessary to know your competition and know
that what you offer to your clients has the added value that the competition does not have
(FAB ANALYSIS- features, advantages, and benefits).
After this define your target market in a demographic and psychographic way, this will
help to know why they need to buy product I services from you.
There are several ways to make marketing strategies effective, so it is necessary to focus
on the most important communication channels (traditional and virtual media) and to be
able to carry out the strategies with a successful follow-up of the implementation of the
strategies.
• Analyse the position in the market: Identify the target audience, the competition
and what is happening in the company. In addition, define which are the strong
aspects and those that you should optimize.
• Establish goals: create achievable brand and sales objectives and determine the
time frame to reach them.
• Design and tactics: after you examine the landscape, create the lines of action
based on strategies you know.
• Implement controls: Define how you will measure goal achievement and how you
expect performance to gradually improve
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TYPES OF MARKETING STRATEGY
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1.Portfolio Marketing Strategy-:
Analyse which products are sold, and which are not in order to decide which ones are still
on the market and continue with their manufacturing process since keeping the products
that are not generating economic income must be discarded.
This strategy is to decide which segments the market has been classified into. The
segmentation can be of three types:
• Differentiated: when addressing each of the market segments that have been
identified with a different offer and positioning. This strategy has a higher cost,
but it will allow to satisfy the specific needs of each selected segment
• Undifferentiated: segments with different needs are identified, but the company
chooses to address them with the same offer, in order to try to get the largest
number of customers
• Concentrated: only one of the market segments is chosen. This avoids making
efforts in other segments and allows the ca2mpaign to be focused. This is the most
effective strategy for companies that are growing
The segmentation strategy is derived from previous market research in order to classify
the segments and make good decisions about them.
• Benefit: this strategy is based on positioning the product for the benefit it offers
• Quality/price: offering the highest quality at a competitive price
• Attributes: position the product by the attributes it has
• Use/application: position based on the use or application given to the product
• Categories: position yourself as a leader in a product category
• Competitor: compare your products with those of your competitors, this is a
classic strategy
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When we talk about positioning strategy as a concept, we must consider that we are designing
three different strategic marketing keys: the positioning of the company, the positioning of
the brand and the positioning before the consumer.
This strategy is formed by the strategies of the marketing mix or also called the 4Ps of
marketing are variables of great importance to achieve the commercial objectives that the
organization has. The 4 variables are product, price, distribution, and promotion.
Distribution: packaging, storage, order management, inventory control, point of sale location
and transport
It will maintain customer loyalty. It will prevent them from leaving with the competition
thanks to the constant creativity and good customer service that the company will provide to
its consumers. It can include discounts, promotions, gifts, etc.
This strategy is based on the creation of content such as: articles, computer graphics, eBooks.
This type of strategy can be used as a blog where you can:
Publish news, trends and information about the company or specific product
Reviews
A direct-customized message is implemented with the client. The consumer values the fact
that the company communicates in a personal way for him/her as close ties are created.
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Today most companies do digital marketing something that was not common several years
ago. Being just one click away from information makes this strategy popular.
Inbound marketing, used to attract and convert customers organically through useful content
Web search engines to make the brand appear in the first options, among others
With the type of strategies mentioned you can visualize what objectives you achieve and
what results you want to bring to your company in a short term.
This strategy focuses on competitive value. You must define where you are in the market
compared to your competition.
If you are below, you can also stay there, in case fighting for a higher place is
counterproductive.
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OBJECTIVE
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OBJECTIVE OF THE STUDY
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LITERATURE REVIEW
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LITERATURE REVIEW FOR THE MARKETING STRATEGIES OF PATANJALI
VINOD KUMAR (2013) says that Marketing through spirituality has become a significant
topic of discussion as it affects the consumption behaviour of people. Therefore, spiritual
organizations are launching and selling their own products for the customers to capture the
market.
Here, in this study, yoga and pranayama are considered as the dimensions of spirituality and
it is observed that people generally rely on a spiritual guru for performing yoga and
pranayama. Swami Ramdev is the most famous guru in teaching yoga and pranayama in India
and he, through Patanjali Yogpeeth, has launched several products not only based on
ayurvedic medicines but also on FMCG.
Hence, this paper talks about marketing through spirituality through the case study and
success story of Patanjali Yogpeeth. The research uses a qualitative approach to collect data
from various officials of Patanjali Yogpeeth through unstructured face- to-face interviews.
The study revealed that yoga and pranayama are very effective tools in marketing through
spirituality and influence the consumption behaviour of masses.
No one can help admiring the simplicity of the techniques for practicing the different
pranayama (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 Pranayama a part of life to common man. Pranayama was there in
textbooks 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.
Swamiji has done a tremendous job in breaking this concept of fear in common mass about
the harm caused by pranayama. His Holiness has devised very simple techniques for
practicing the pranayama 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 pranayama
can never cause harm to any person attempting to practice individually
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1. Positioning of Patanjali Yogpeeth
The activities, through which Patanjali Yogpeeth wants to project its image in the minds
of people, are categorized into following four categories:
Sadhana is the main aim of any spiritual organization. Baba Ramdev is influenced by the
ideology of Maharshi Dayanand Saraswati, who laid great importance on yoga and
pranayama. To promote Sadhana, great emphasis is laid down on yoga and pranayama.
Various methods, like organizing Yog Shivirs (camps), broadcasting through TV
channels, making CDs and DVDs of yoga, etc., are adopted to promote yoga and
pranayama. Holistic approach to yoga is adopted which includes Gnanyog, Dhyanyog,
Bhaktiyog and Rajyog. Swamiji wants to see country becoming Yogic India.
• Education (Shiksha)
• Health (Swasthya)
Health Revolution is one of the founding objectives of Patanjali family. Patanjali is trying
to promote Ayurveda system of Medicine and practice ancient Indian Treatment system
which includes Panchakarma, Naturopathy, Yajna therapy etc. To achieve this, various
medicines are prepared by Patanjali under Patanjali Ayurved, Divya Pharmacy etc.
Patanjali Food and Herbal Park is established to provide pure and herbal products to
people. Patanjali Chikitsalayas and Patanjali Arogya Kendra are established in various
cities across the country to make Ayurvedic medicines available to the people.
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• Entrepreneurship (Swawlamban)
Patanjali aims at promoting indigenous entrepreneurship among the people of the country
and to reduce the dependence on the west. Patanjali Food and Herbal Park is established
to bring about agricultural revolution in the country which gives farmers best price for
their produce. Various self-help groups are also constituted to promote indigenous
entrepreneurship. All these activities combined leads to Spiritual entrepreneurship.
2. Marketinq Mix
In order to know exactly the reason for success of Baba Ramdev, it is imperative to throw
some light on the marketing mix rudiments. To be a successful marketer it is important
that all the marketing mix elements have to be fine-tuned to support and strengthen brand
personality.
3. Product Strategy
Swami Ramdev's Divya Medicines are claimed to be one hundred percent natural, made
from potent herbs available in the Himalayas, with no or very little side effects. Along
with these medicines, Swamiji recommends patients to also adopt the practice of
pranayama, which will strengthen the immune system and quicken the healing process. In
a bid to promote ayurveda, Swami Ramdev's Trust has tied up with 600 qualified
ayurvedic practitioners who are offering treatment to masses for a variety of diseases,
some of them termed incurable by the modern system.
• FMCG Products
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.
4. Pricing Strategy
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Developing an effective pricing strategy remains the most important and difficult part of
the marketing process. As far as the pricing of FMCG products is concerned, the pricing
strategy is a mix of skimming and penetration. Some products are costly than other
competitive brands and some are cheap. But, in case of pranayama and yoga, Baba
Ramdev's uses a penetration strategy and cost is very less. He urges people not to lose
hope or suffer and depend on expensive treatments. The diseases for which Indian
population spend much more in hospitals, pranayama and yoga treat all the ailments
completely without costly medicines, operations, or surgery.
Patanjali follows a very smooth Supply chain management. The three parts of supply
chain are product flow, cash flow and information flow. In supply chain of Patanjali all
these are maintained very smoothly. They sell their products only through their own
outlets opened in almost every district/city of India. Each outlet sends its demand to
central office at Haridwar.
Then based on demand, different products are gathered from various units of Patanjali
viz. Divya Pharmacy, Patanjali Ayurved, Patanjali Foods etc. Then the items are
delivered to the respective outlets mainly through Patanjali transport. Supply chain
doesn’t have any intermediary in between but rather it’s a direct from supplier to
producer to consumer. This also helps in reducing the cost because it avoids the
unnecessary commission cost and other related charges of the intermediaries.
• 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 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.
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8. Promotional Strategy
Broadly speaking, the promotional marketing strategy of Patanjali Yogpeeth includes the
following
• Advertising through business journals and newspapers in India and abroad with
the help of an advertising agency.
• The company has established a web site on the internet. This will ensure
international visibility and marketing.
• Group regularly interacts to industry and business associations.
• Group also interacts with foreign embassies/trade counsels in India.
• They are also bringing out attractive brochures and other literature with the help of
advertising agency.
SAMBHAVI SHUKLA (2017) says that Patanjali began working with Patanjali
Yogpeeth in Haridwar, Uttarakhand. Patanjali yogpeeth is one of the largest yoga labs in
the United States. Swami Ramdev and Acharya Balkrishna is Patanjali Ayurveda Ltd.
was established for treatment, research and development Ayurveda Yoga and Ayurveda
produces pharmaceutical products.
Baba Ramdev constantly tries to use the Indian brand by saving Indian people and the
economic growth of the company. Patanjali is planning to buy all the well-known brands
that deal with beverages and food. The service (yoga) that Baba Ramdev sells is the
product. This product "Pranayama" is suitable for everyone, regardless of class, religion,
culture, and success.
Dabur Honey: Patanjali Ayurveda offers you the possibility to buy high-quality honey
with about 30% less than Dabur.
Colgate: Patanjali Ayurveda preaches in the beginning how Colgate deceived people.
And Ayurveda is the best way to treat gums and teeth.
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Patanjali noodles: Patanjali noodles have become famous while Maggi was away from
the market and certainly had damaged Maggi, once the king of the noodle market.
Developing an effective pricing strategy is the most important and difficult part of the
marketing process. Baba Ramdev's Pranayama's costs are cheaper than other medical
treatments. It is the cheapest and only treatment to treat most of the so- called incurable
diseases such as diabetes, cancer, and AIDS.
Patanjali Ayurveda is the fastest growing FMCG company in India, but it is not surprising
to neighbouring countries like Nepal. Patanjali has a factory in Nepal. Patanjali also
imports Nepalese Himalayan herbs. An established trade relationship helps Patanjali to
significantly expand its wings in Nepal. In India, 1,000 stores sell Patanjali products,
which sell exclusively to Patanjali, causing a local salesman to cause an earthquake. The
penetration rate will be higher because the margin of the product is good.
Patanjali Ayurveda is with the slogan "Prakriti ka Ashirwad". Now Patanjali Ayurveda
has earned a reputation and popularity among the people thanks to Baba Ramdev, a
globally recognized yoga expert.
In 2002, the Aastha television channel began broadcasting Baba Ramdev's yoga classes.
At night, Baba Ramdev impressed hundreds of followers who turned into thousands of
people. Millions of people across the country use Ayurvedic medicines, which receive
religious instruction and are prescribed by their programs. His yoga session was broadcast
live in 170 countries.
1. Low price
2. Strong distribution channels
3. Baba Ramdev because of health and strong brand association
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5. Media Promotion
6. Patanjali followed a unique word-of-mouth model, with no ads on total revenue.
ANURADHA YADAV (2018) says that The Case talks about the marketing strategy of
India’s fastest growing FMCG brand Patanjali, with a tremendous revenue growth rate of
100 percent for the past five years. Patanjali’s product line ranges from healthcare,
personal care, home care, to food and more. These included Patanjali Chikitsalayas which
were franchise dispensaries and clinics along with doctors. Now days Patanjali is also
moving towards digital marketing which is a new integrated marketing strategy of this
group.
See, when someone forces you to try out a product you might have a bias to reject it as
‘overselling’. But here no-one was pushing anything, only an environment was created
where you wanted to see if the alternative to above evils was usable. How Patanjali
Promotes Itself Through Digital Marketing?
1. NET-: net is their main e-commerce website. The entire range is on display here
and can be bought online. Prices seem to be in INR. People may laugh it off but
need to remember that none of our MNCs actually sell their products online in
spite of their media comments about how they are embracing digital, which of
course is more stylish than real these days.
2. ORG-; Now org is almost their corporate website. This is where they get into what
they are about, the mission and philosophy and of course inviting dealerships.
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The magic ingredients of success of Patanjali-:
a) The brand has moved into e-commerce besides being available with retail chains and
under its own distribution centres.
b) The Ramdev Medicines brand is ready for export with foreign exchange earning
potential and could be a great success if marketed successfully given the weakness that
the West has for both Yoga and Herbal alternatives.
c) The brand pyramid has legs. Products are available online and through offline retail.
d) And finally, it’s not only his companies that are digital. Baba Ramdev is himself
digital. He has 541k followers on Twitter.
Our MNC CEOs are going to find it difficult to match his following in the near future. On
Facebook Baba Ramdev has 5.7 million people liking his page.
TANU SHUKLA, ROHAN SANGHAVI (2017) says that marketing is not just about
selling a particular product. Selling is only the cover of this book or tip of this iceberg -
marketing. According to Drucker (Management consultant, educator) the aim of
marketing is to know the consumer base so well that the product fits the customer very
well and the product sells itself. Coming to the more formal definition of marketing
management. Kotler defines marketing management as the art choosing target markets
and getting, keeping customers through creating, delivering and superior customer value.
For this, Patanjali uses the ‘Branded House’ strategy wherein they advertise the Patanjali
- brand as a whole instead of promoting individual products or group of products
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separately. Choosing a correct branding architecture is very crucial for the success of a
company especially when it has just entered the market as a completely fresh brand.
Patanjali was already a brand before entering into the FMCG space. It was also known for
spreading knowledge and awareness about yoga and ayurveda. Also, there were millions
of people who believed in Baba Ramdev and his ways. So, choosing Branded House
approach was the best way to conquer the market. They just wanted a trademark product
or uniqueness in some of their products which would allow them to start a brand.
Patanjali started with ghee and other basic products which they claimed to be purest of
all. After establishing ‘Patanjali’ as a trusted brand they knew that they could convey
quality and other assurances for the individual product brands and, perhaps most
importantly in the long run, some of the currently individual brands could be more easily
converted to the parent or corporate brand saving, the company significant money in
brand building companies.
Keeping it simple: Patanjali has adopted a strategy different from the rest. The ads by
Patanjali are pretty straight forward and contain no false information. The company wants
simple ads just to disseminate information about its brand, says Balkrishna. “We don't
make any false promises ads in our ads. The ads are more like infomercials,” he adds. The
ads of Patanjali talk about the product and its promise to consumers.
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Fig3.1 The Advertisement Spends Division of Patanjali Ayurved Limited
It has many advantages. From the demand side it facilitates quick adoption and diffusion
of products and creates ‘goodwill’ among the initial customers which leads to rapid word
of mouth publicity. From the supply side it leads to a greater cost efficiency for the
manufacturer and large turnovers keep the retailers and distributors motivated.
Patanjali takes a clear advantage from its ‘Swadeshi’ concept. With the ideas that people
should consume goods manufactured in their own country and the money should not flow
outside the country, Baba Ramdev has managed to gain confidence of the consumers.
The concept of Swadeshi is based on four pillars - the products are better than
multinationals, they are cheaper, the financial gain are not used for personal benefits, and
upliftment of the country is the main aim.
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COMPANY PROFILE
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PATANJALI AYURVEDA
We have come far away from the age of Ayurveda and backyard medicine. There was a
time when medicines and organic products were hard to find. But all our ailments have
been taken care of by popping a pill or two
Patanjali emerged and has changed the concept of Ayurveda in a way like never before!
As India’s fastest FMCG Company, Patanjali Ayurveda is one of the well- known
companies which offers Ayurvedic and natural products. The company offers a very wide
range of products including household, grocery, food, and beverages including clothing.
WHAT IS PATANJALI?
Patanjali also called Gonardiya, or Gonikaputra, was a sage in Ancient India, the word
"Patanjali" is a compound name from "patta" ("falling, flying") and "anj" ("honour,
celebrate, beautiful") or "Anjali" ("reverence, joining palms of the hand"). It is estimated
from analysis of his works that it was between the 4th and 5th centuries CE. He is
believed to be an author and compiler of a number of Sanskrit works. The greatest of
these are the Yoga Sutras, a classical yoga text.
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The founders had begun with a thought of establishing a healthy society by improving the
living standard of common people. Their target is to create revolutionary products, for
preventing and curing acute ailments, which is 100% natural. They imported the latest
technology and all types of Ayurvedic aid and literature to form the best output from the
natural inputs.
The company makes chemical free herbal products across its different production units.
The company made major acquisitions with various companies. Future Group has joined
the Patanjali family which has enhanced the company’s overall productivity along with
better and sourced logistic system.
PRODUCTION
Patanjali Food and Herbal Park in Haridwar is the company's main production facility.
With a production capacity of ?35,000 crore (equivalent to ?400 billion or US$5.2 billion
in 2020), it is expanding to a capacity of ?60,000 crore (equivalent to ?730 billion or
US$9.6 billion in 2020) through new production units in Noida, Nagpur, and Indore.
In 2016, the Patanjali Food and Herbal Park received 35 full-time, armed Central
Industrial Security Force (CISF) commandos. The park will be the eighth private institute
in India to be guarded by paramilitary CISF forces.[27] In 2017, the Patanjali group
launched their caller tune with Vaibhav Saxena's "Swadeshi Swabhiman, Rashtra Seva
Ka Abhiyan"
1. Dabur India
2. Procter and Gamble
3. Marico
4. ITC
5. Nestle Ltd.
6. HUL (Hindustan Unilever Limited)
7. Baidya Nath
8. Emami
9. Himalaya Herbal
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Now with aggressive venturing into all FMCG products, Patanjali faces heavy
competition from almost every major brand.
• In 2016, Patanjali was awarded the "Bharat Jyoti Award” by the India
International Friendship Society
• "Bloomberg Special Recognition Award" to Acharya Balkrishna in 2016
• In 2014, Patanjali was recognized as "Ayurveda Expert" in an Ayurveda Summit,
held in Gujarat
• "Manav Ratan" award by Antarrashtriya Manav Milan Organization in 2013
• Honoured by "Sanskrit Prasarini Sabha", Assam in November 2013
• Awarded "Spirit and Entrepreneurship Award" towards humanity by ISOL
Foundation in 2011
• "UNSDG 10 Most Influential People in Healthcare Award" to Acharya
Balkrishna.
• Patanjali ayurved reported a 9% jump in its revenue in FY21 and the net profit
grew 14%. The net profit of Patanjali was Rs 485 crore while its revenue was
around Rs 1000 Crores. The fast-moving consumer goods (FMCG) major
Patanjali Ayurved has reported a 22% growth in its net profit for 2019-20 (FY20).
According to the financial data accessed by business intelligence platform Toffler,
the group’s flagship entity reported Rs 423 crore net profit for the year, compared
to Rs 349 crore it had posted in 2018-19 (FY19).
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Fig.4.1 revenue of Patanjali ayurveda across India
In recent years, its net profit, too, has suffered. Despite double-digit growth,
Patanjali’s net profit fell well short of Rs 1,190 crore it had reported four years ago.
In FY20, its net profit margin stood at 4.67%, compared to 13.3% in FY17 and 16%
in FY16.
Patanjali has a wide range of quality products - Natural Food Products, Natural Health
Care, Natural Personal Care, Ayurvedic Medicines, Herbal Home Care & Patanjali
Publication with 50000000+ consumer reach, 300000+ stores reach, 1000+ products and
5000+ Patanjali stores.
Patanjali Food and Herbal Park at Haridwar is the primary creation office of Patanjali
Ayurved. The organization has a creation limit of ?35,000 crores ($5.1 billion) and is
growing to a limit of ^60,000 crores through its new generation units at a few spots,
including Noida, Nagpur, and Indore.
Patanjali Ayurved produces items in the class of individual consideration and food. The
organization makes more than 2,500 items, including 45 sorts of corrective items and 30
kinds of sustenance items.
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RESEARCH
METHODOLOGY
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Research methodology simply refers to the practical “how” of any given piece of research.
More specifically, it’s about how a researcher systematically designs a study to ensure
valid and reliable results that address the research aims and objectives.
Research design
There are two prominent research designs that are used widely, namely, descriptive
design and experimental design.
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Descriptive design
Descriptive research designs help provide answers to the questions of who, what, when,
where and how associated with a particular research problem; a descriptive study cannot
conclusively ascertain answers to why.
Descriptive research is used to obtain information concerning the current status of the
phenomena and to describe “what exists “with respect to variables or conditions in a
situation.
Experimental design
A blueprint of the procedure that enables the researcher to maintain control over all factors
that may affect the result of an experiment. In doing this, the researcher attempts to
determine or predict what may occur.
Experimental research is often used where there is time priority in a causal relationship
(cause precedes effect), there is consistency in a causal relationship (a cause will always
lead to the same effect), and the magnitude of the correlation is great. The classic
experimental design specifies an experimental group and a control group. The independent
variable is administered to the experimental group and not to the control group, and both
groups are measured on the
same dependent variable. Subsequent experimental designs have used more groups and
more measurements over longer periods. True experiments must have control,
randomization, and manipulation.
Data collection
Data Collection is a term used to describe a process of preparing and collecting business
data - for example as a part of process improvement or similar project. Data can be
collected by two methods: -
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• Primary data
Primary data is to be collected by the concerned project researcher with relevance to his
problem. So, the primary data is original in nature and is collected first hand.
• Secondary data
It is the data already existing, which has gone through some standard analysis. Under the
secondary data, the company’s annual reports, broachers, pamphlets, newspapers, journals,
and internet were taken into consideration.
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ANAYSIS AND FINDINGS
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SEGMENTATION, TARGETING, POSITIONING IN THE
MARKETING STRATEGY OF PATANJALI
Like any other FMCG company, it uses the mix of demographic and psychographic
segmentation strategies to make its offerings appropriate to the particular set of customer
groups.
It uses a product based and value-based positioning strategies to establish a sense of trust
and satisfaction of being healthy in the mind of the customers.
Baba Ramdev is constantly pushing Indian people to start using Indian brands and save the
economic growth of the company. Patanjali is planning to take over all reputed brands
dealing in beverages and foods.
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PATANJALI PRODUCTS
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
• Healthcare & Medicines
• Dabur Honey: Patanjali Ayurved is providing people with option to buy quality
honey at around 30% lesser price than Dabur.
• Colgate: 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.
• Patanjali 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.
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
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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
price comparison as an effective marketing strategy. The pricing strategy is clearly
penetrative pricing because 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.
Fig.5.2 pricing
PLACE IN THE MARKETING MIX OF PATANJALI AYURVED
Patanjali Ayurved is India’s fastest growing FMCG Company, but it is not stopping it
from spreading its wing to neighbouring countries like Nepal. Patanjali has a
manufacturing unit in Nepal. Patanjali also imports herbs from Himalayas in Nepal; the
well-established trade relation is 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 funds for expansion and growth.
In India, 1000’s of stores is now selling Patanjali products, and these stores are exclusively
selling Patanjali, making the local retailer quake. The penetration levels will only rise
further as the margins in the product are good too.
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O C&F Warehouse
O Factories
□ Proposed Factories
Patanjali Ayurved goes with the Slogan “Prakriti ka Ashirwad”. Well, Patanjali Ayurved
has acquired the requisite fame and popularity among people because of the globally
recognized Yoga Guru, Baba Ramdev. This brand ambassador of Patanjali is single
headedly responsible for the success of the brand. His contribution to people’s life through
Yoga is incredible hence people felt aligned towards him when he launched his very own
Indian FMCG Company.
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Fig.5.4 promotion of Patanjali
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 “revenue of 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
than the profits going out to foreign companies. Till date, Indians did not have many
alternatives to foreign products but now they 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 Ramdev has 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.
Every product runs with a targeted marketing strategy that later acts as the major reason
behind a product’s success. Brands like Baidyanath made quality products that attracted
consumers but could never find a successful targeted marketing strategy way to expand.
Patanjali with its brilliant marketing strategy yet high-quality products was able to expand
while generating amazing demand from its successful marketing strategy. As a result, it earned
a profit of more than INR 9000 crores in 2019, whereas Baidyanath’s turnover is only INR
700 crore in the same year.
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• Face Value
The second vital reason is “Face value”. With the growing media and face value, brand
ambassadors act as a trust stamp. Ramdev Baba is known for his yoga and ayurvedic
knowledge for years added to the success of Patanjali’s marketing strategy. His face in
various advertisement campaigns created trust amongst the consumers which acted as a
vital reason for it to be a hit in the market.
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CORNFLAKES CHVAWANPRASH
Patanjali's Patanjalis
Corn Hakes mix 250 Chyawanprasti 1
gm for *85 500 gm kg for *185
for *145
M«r 1kg for *280
xewocxs
250 gm for *91 475
gm for *159
TOOTHPASTE
Patanjali's
Patanjali's Oam Kami
250gmfor*12 100 gram for *35
van mjMma a* - AM CoigM* lOO gram for
WondanonAHMm) *42
130 gm for *10
Patanjali has a very holistic approach to its digital marketing efforts. It has several digital
campaigns that revolve around showcasing its products and reiterating how healthy and
natural the products are. With its amazing effort’s it has reached a massive following on
Instagram.
Patanjali’s approach is two thronged. It boasts such a massive array of products that all its
posts revolve around showcasing these products. Their posts try to showcase the health
benefits and ways to use these products in ordinary day cooking. With such a massive
following, Patanjali has focused a lot of its marketing efforts on converting youngsters to
appreciate it’s products.
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Fig.5.6 Digital Marketing Strategy of Patanjali
Secondly, Patanjali uses Baba Ramdev as its brand ambassador on their posts, very
frequently. They have successfully married their healthy products with the brand image of
a yoga guru, known for curing the country of daily ailments through healthy living. With
digital marketing efforts, they have made sure this image sticks and the customers are
heavily swayed by this stratagem.
marketing campaign means using different types of media and online platforms for
promoting a product. The specific pieces of promotion they create constitute their
advertisement strategy. They have to be carefully planned as marketing campaign plays
a major role in any brand’s success or failure.
Patanjali Ayurved has done great research on their target audience and understands the
message they should put across through heir advertisements and which campaign
medium is most effective for their strategy.
#Swadeshi ka swabhiman
After achieving great success in the FMCG sector, Patanjali has now entered into the
brand apparel segment with its new brand named “Paridhan.
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Invoking Fig.5.7 Patanjali Advertisement and Campaigning Strategy
the national image of cloth weaving, Patanjali has made a move on to the textile industry.
With the rising concerns of dependence on other countries for necessities, and combining
itself with the “Make in India” trend, Patanjali has targeted the most essential items we all
need, clothing
Patanjali has launched its biscuit with the tagline “Healthy India banenge, Patanjali biscuit
khaenge” which means “India shall be healthy, Patanjali biscuits is what we shall eat”.
Patanjali claims that their biscuits contain zero Maida, sugar, and trans fats, and are
healthier than any other biscuits. Taking a moment marketing spin at the growing obesity
in the 21st century and sugary food overload, Patanjali marketed itself as a healthy option
for biscuits. This struck a nerve with the Indian audience, especially with the 35-year-old+
customer segment, who daily enjoy a biscuit with their teas as a lifestyle habit.
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SWOT ANALYSIS
In this section of the report, we will be conducting SWOT analysis on Patanjali, in which
we will analyse the brand by its strengths, weaknesses, opportunities & threats. In
Patanjali SWOT Analysis, the strengths and weaknesses are the internal factors whereas
opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Patanjali
to benchmark its business & performance as compared to the competitors. Patanjali is one
of the leading brands in the FMCG sector.
STRENGTH
• Strong Patriotism: Patanjali has used the India card to its advantage and has
always marketed that it’s a brand made in India, for Indians. Most of the brands in
India are international brand. Patanjali actively asks Indians to buy India made
products to help the economy of the country. Besides this, the quality of the
products has helped in the fantastic growth of Patanjali.
• Ayurveda And Herbal: The Products that Patanjali offers are made from
Ayurveda and Herbal natural components. The Swadeshi products also have played
an important role in the success of Patanjali. India has never been low on plants or
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vegetation, and we get a lot of naturally grown medicines in our dense forests. As a
result, India is one of the leaders in Ayurveda.
• Strong Distribution Channels: Patanjali products are sold through medical centres
such as Patanjali Chikitsalayas and Patanjali Arogya Kendra, nonmedical centres
such as Swadeshi Kendra. Patanjali already has 15,000 outlets across India.
Patanjali was earlier criticised for its distribution strategy, but it has now improved
it by distributing through General retail outlets and has recently tied up with the
Future group for distribution through Modern retail. They have now transformed its
weakness into a strength.
• E-Commerce Advantage: Patanjali sells very well through the E-commerce
companies and has a lot of packages of products which it sells online. So even if
people are not nearby a Patanjali store, but they believe in Baba Ramdev or want to
purchase Indian products, then they can do so online via E-commerce.
• Penetration Pricing: Patanjali products are generally priced at 20-30 % lower than
the competitive brands and thus it becomes impossible for the competitive brands to
compete with Patanjali on price. The company sources the products directly from
farmers and thus cuts on middlemen. Hence, they are able to produce at lower costs.
A comparison of prices for some products is given below are given below.
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{500 gm} {500 gm}
WEAKNESS
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products such as its toothpaste and shampoo. They need to push the other products
more to achieve its ambitious target.
• Low Margin To Distributors: Patanjali offers much lower margins to distributors
and retailers as compared to other consumer goods company, since it is playing a
game of volume and not margins. That’s the reason for it being a demand run
company.
• Lack Of Experienced Management Graduates: Patanjali does not have a large
pool of management graduates and thinks tanks which can be a problem when they
look for expansion throughout the country or globally.
Fig.5.9 Weakness
OPPORTUNITIES:
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THREATS:
• Increasing Competition: FMCG majors such as HUL, Marico, etc. and new
entrants such as Sri Ayurveda are also entering the organic market after the
awareness created by Patanjali which increases the competition in the market.
• Negative Word-Of-Mouth: Any negative word-of-mouth created on social
media platforms can affect its position in the market.
• Poor Reap Can Affect Business: Patanjali is heavily dependent on natural
ingredients and products and hence poor agricultural reap can affect its sales.
• Price War: A price war is good for consumers, but it is detrimental for
business. The longer the price war, the more is the effect on the brand.
Companies like HUL, Colgate and others have been at the top for long. They
have deep pockets.
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•
LIMITATION
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THE FOLLOWING ARE THE LIMITATION OF THE STUDY OF
MARKETING STRATEGIES OF PATANJALI:
1. The data and information collected and analysed for the study is secondary data which only allows us
to draw conclusions based on the study and findings of theoretical data.
2. Time is an important limitation.
3. The sources from which secondary data is collected may not be accurate so there is a scope of
inaccuracy.
4. Facts and figures in this project may lack authenticity.
5. Findings based on this study cannot be used in any other consumer good company.
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RECOMMENDATION AND
CONCLUSION
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So, these were the marketing strategy of Patanjali. Patanjali has been crowned all over the
market. It has taken over the entire FMCG sector and has become a revolutionary company
over a short period.
Not only their products are 100% pure but they are also available at a cheaper price in
comparison to their competitors. It has succeeded in obtaining a loyal customer base and its
products are available all over India.
Patanjali is the quickest developing organization in the Indian FMCG segment, a $50 Billion
industry.
From cleanser and bread rolls to ghee and noodles, and now clothing and footwear - no
indigenous organization has fabricated such a well-differentiated item portfolio. It has
developed more than multiple times in income in the most recent five years and is an
unmatched accomplishment in India's FMCG industry.
The organization focused on incomes of Rs.10,000 crore for FY 2016-17 and Rs. 20,000 -
25,000 crore in FY 2018. It has a broad deals channel of more than 5000 merchants, 15,000
stores, and 100 uber bazaars.
Patanjali, being a Swadeshi brand has always been in the limelight because of its Ayurvedic
products. Each of their steps has been cleverly strategized to bring the best to the brand. Even
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after facing a few setbacks, the company is standing tall as ever, being the fastest-growing
company in the Indian FMCG sector.
Patanjali is expected to go a long way in the future, only if it manages to keep itself ahead of
competitors.
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BIBLIOGRAPHY
AND ANNEXURES
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THE PROJECT HAS BEEN COMPLETED WITH THE HELP OF THE
FOLLOWING SOURCES-:
www.marketinq91.com/marketinq-strateqy-pataniali/
https://iide.co/case-studies/patanjali-marketinq-strateqy
https://marqueex.com/marketinq-strateqy-of-patanjali-when-a-name-is-enouqh
https://www.mbaskool.eom/marketinq-mix/products/17131
-patanjali.htmlhttps://en.wikipedia.org/wiki/Patanjali Ayurved PATANLI-with-cover-paqe-
v2.pdf (d1wqtxts1xzle7.cloudfront.net) Microsoft Word - BITS Pilani ICEBM 2017
Proceedings (researchqate.net) Marketing through Spirituality: A Case of Patanjali Yogpeeth
- ScienceDirect