Minor Project ON: 1 Meera Bai Institute of Technology
Minor Project ON: 1 Meera Bai Institute of Technology
Minor Project ON: 1 Meera Bai Institute of Technology
ON
SUBMITTED TO
LECTURER 42590601715
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MEERA BAI INSTITUTE OF TECHNOLOGY
TABLES OF CONTENT
Certificate…………………………………………………………………………………….........3
Acknowledgement………………………………………………………………………...............5
2 Executive summary…………………………………………………………………………13
3 Company profile…………………………………………………………………………….14
3.1 About Patanjali Ayurveda
3.2 Vision and mission of Patanjali Ayurveda
3.3 Marketing mix of Patanjali Ayurveda
3.4 USP of Patanjali Ayurveda
3.5 SWOT analysis
3.6 Patanjali key to success
3.7 Competition from Patanjali prompts FMCG’s to hit back
4 Literature review…………………………………………………………….........................31
4.1 Hypothesis information
4.1.1 A report on Patanjali Ayurveda by Varun Mishra.
4.2 Research methodology
4.3 Scope of study
4.4 Limitation of study
7 Annexure…………………………………………………………………………………….56
8 Bibliography………………………………………………………………………………60
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CERTIFICATE
This is to certify that the research project initiated to certify that it is the innovative effort of
“RITIKA GUPTA”, ROLL NO- 42590601715 and it has been accomplished under my
guidance.
As a part of curriculum work of “RITIKA GUPTA” who carried out the project under my
supervision for the partial fulfillment of BACHELOR OFBUSSINESS ADMINISTRATION
degree under GURU GOBIND SINGH INDRAPRASTH UNIVERSITY, DELHI for the year
2015-2018.
SUPERIVISOR
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DECLARATION BY THE CANDIDATE
I hereby declare that the work, which is being presented in the project, entitled “MARKETING
STRATEGIES OF PATANJALI AYURVEDA” is an authentic record of my own work
carried out by me under supervision and guidance of MRS. SUNITA CHUGH, project guide,
MEERA BAI INSTITUTE OF TECHNOLOGY, MAHARANI BAGH, DELHI-65.
This project was undertaken as a part of the curriculum of GURU GOBIND SINGH
INDRAPRASTHA UNIVERSITY, DELHI, for the partial fulfillment of BBA from MEERA
BAI INSTITUTE OF TECHNOLOGY, MAHARANI BAGH.
I have not submitted the matter embodied here in this project for the award of any other degree/
diploma.
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ACKNOWLEGEMENT
It is my sensual gratification to present this report. Working on this project was an incredible
experience that will have a tremendous impact on my career.
I would like to express my sincere thanks to my project guide MRS. SUNITA CHUGH for a
regular follow up and valuable suggestions provided throughout.
She has always been an origin of spark and direction. I also thank all the respondents who have
given their valuable time, views and valid information for this project.
RITIKA GUPTA
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1. INTRODUCTION TO THE STUDY
PATANJALI AYURVEDA
PATANJALI AYURVEDA LIMITED, a Company registered under the Company’s Act, 1956
having its Registered Office at D-26, Pushpanjali, Bijwasan Enclave, New Delhi – 110061 and
Works: 1. Unit-I at:D-38, Industrial Area, Haridwar, Uttarakhand; 2.Unit-II at :YOGPEETH,
Maharishi Dayanand Gram, Delhi Highway, Haridwar; and 3.Unit-III:Vill-Padartha, Haridwar,
Uttarakhand, India.
The Company was originally formed as a Private Limited Company on 13th January, 2006 and
subsequently converted into Public Limited Company on 25th June, 2007. Presently, the Board
of Directors of the Company is managed by Sri Acharya BAL KRISHNAJI as its Managing
Director and Swami Muktanandji and Sri Ajay Kumar Arya, are the Directors of the Company.
To manufacture, process, refine, formulate, import, export and deal in all kinds of Ayurvedic
and herbal Products, Life Savings Drugs etc. apart from so many other related objects. The
concept for forming this Company was to “link the rising destiny of millions of rural masses on
the one hand and many more suffering and leading unhealthy urban life style on the other”.
The View of the Respected Swami Ramdevji, the renowned YOGA GURU and Sri Acharya
Balkrishnaji, made the concept into writing through formation of the Company “PATANJALI
AYURVEDA LIMITED”. PATANJALI AYURVEDA Ltd is a company that functions like all
other companies under the Rules and Regulations of the Company Law Affairs and several other
Laws applicable for these type of Industries.
At micro level the challenge is no less tough. Along with PRANAYAM, the wisdom of our
ancient sages, the organic food products and herbal medicines churned out of this unit, trying to
undertake the threats to fight out the dreaded and deadly diseases like CANCER and AIDS.
Claim for having found a lasting cure for many other relatively more excessive but equally
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tormenting diseases like Diabetes, Arthritis and Thyroid is already entrenched with thousands of
patients cured with fulfillment.
Superior quality of our products at a fair price is not the only concern that we have. Getting our
patients rid of their diseases is again too limited a goal for us to seek. A holistic approach to
improve the quality of life of all beings, world over, is the purpose behind our being.
Getting eliminate the food we consume of the pollutants in the form of poisonous pesticides and
chemical fertilizers that our farmers use, is a goal that we strive to accomplish by providing our
people the eatables that are cultivated in organic and natural manures and pest repellents.
The bringing of Ayurvedic medicines along with Pranayama, Asnaas, pure food and natural
drinks is a package perhaps the world was waiting for long, for the two saints in the form of
SWAMI RAMDEVJI and ACHARYA BALKRISHNAJI,
Already 12 successful units running including units for Packaging material and Containers e.g.
flour mill, candy plant, herbal cosmetic and detergent plants, digestives unit, juice plant etc.
Sale Channels: Patanjali brand with national and international reach, more than 85,000 retail
channels-accessible to Patanjali products
Employment Generation:
Currently PAL employs more than 6000 laborers in its processing activities.
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PAL has more than 300 technically qualified employees.
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1.1.OBJECTIVE OF THE STUDY
The main objective to study this project is to know about the different strategies of Patanjali
Ayurveda.
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1.2.DEFINITION OF TERMS
1.2.1. MARKETING
Marketing is the subject and management of exchange relationships. The American Marketing
Association has defined marketing as "the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large."
The techniques used in marketing include choosing target markets through market analysis and
market segmentation, as well as understanding methods of clout on the consumer behavior.
From a societal point of view, marketing provides the link between a society's material
requirements and its economic patterns of response. This way marketing satisfies these needs and
wants through the advancement of exchange processes and the building of long-term
relationships.
In the case of nonprofit organization marketing, the aim is to deliver a message about the
organization's services to the applicable audience. Governments often employ marketing to
communicate messages with a social aspiration, such as a public health or safety message, to
citizens.
Two major troop of marketing strategies can be distinguished: (a) Strategies, which describe how
to clout the relevant market. On the other hand there are (b) Strategies, which describe, to which
extend an organization employs “power” or “force” to tackle market related issues.
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For (a) 4 different types can be differentiated:
Strategies for market stimulation: Which marketing instruments will be employed in order to
develop certain preferences?
Strategies for market itemization: Which fundamental market items (in terms of structures) are
useful? Does the organization employ mass marketing or segment marketing techniques? Does
the organization cover the entire market or “only” parts of this market?
Strategies for market areas: Which areal dimensions should be used to implement a strategy?
Pull back strategy: to make a strategic withdrawal (in military terms: a fall back strategy)
Competition strategies.
Marketing involves a number of activities. To begin with, an organization may decide on its
target group of customers to be served. Once the target group is decided, the product is to be
placed in the market by providing the appropriate product, price, distribution and promotional
efforts. These are to be combined or mixed in an appropriate proportion so as to achieve the
marketing goal. Such mix of product, price, distribution and promotional efforts is known as
‘Marketing Mix’. According to Philip Kotler “Marketing Mix is the set of controllable variables
that the firm can use to influence the buyer’s response”. The controllable variables in this context
refer to the 4 ‘P’s [product, price, place (distribution) and promotion]. Each firm strives to build
up such a composition of 4‘P’s, which can create highest level of consumer satisfaction and at
the same time meet its organizational objectives. Thus, this mix is assembled keeping in mind
the needs of target customers, and it varies from one organization to another depending upon its
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available resources and marketing objectives. Let us now have a brief idea about the four
components of marketing mix.
Product: Product refers to the goods and services offered by the organization. A pair of shoes, a
plate of dahi-vada, and a lipstick, all are products. All these are purchased because they satisfy
one or more of our needs. We are paying not for the tangible product but for the benefit it will
provide. So, in simple words, product can be described as a bundle of benefits which a marketer
offers to the consumer for a price. While buying a pair of shoes, we are actually buying comfort
for our feet, while buying a lipstick we are actually paying for beauty because lipstick is likely to
make us look good. Product can also take the form of a service like an air travel,
telecommunication, etc. Thus, the term product refers to goods and services offered by the
organization for sale.
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 is a tricky job. Many factors like
demand for a product, cost involved, consumer’s ability to pay, prices charged by competitors
for similar products, government restrictions etc. have to be kept in mind while fixing the price.
In fact, pricing is a very crucial decision area as it has its effect on demand for the product and
also on the profitability of the firm.
Place: Goods are produced to be sold to the consumers. They must be made available to the
consumers at a place where they can conveniently make purchase. Woolens are manufactured on
a large scale in Ludhiana and you purchase them at a store from the nearby market in your town.
So, it is necessary that the product is available at shops in your town. This involves a chain of
individuals and institutions like distributors, wholesalers and retailers who constitute firm’s
distribution network (also called a channel of distribution). The organization has to decide
whether to sell directly to the retailer or through the distributors/wholesaler etc. It can even plan
to sell it directly to consumers. The choice is guided by a host of factors about which you will
learn later in this chapter.
Promotion: If the product is manufactured keeping the consumer needs in mind, is rightly priced
and made available at outlets convenient to them but the consumer is not made aware about its
price, features, availability etc., its marketing effort may not be successful. Therefore promotion
is an important ingredient of marketing mix as it refers to a process of informing, persuading and
influencing a consumer to make choice of the product to be bought. Promotion is done through
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means of personal selling, advertising, publicity and sales promotion. It is done mainly with a
view to provide information to prospective consumers about the availability, characteristics and
uses of a product. It arouses potential consumer’s interest in the product, compare it with
competitors’ product and make his choice.
2. EXECUTIVE SUMMARY
The project covers the aspects like Patanjali got success in such a competitive market in a very
short span of time and how competition from Patanjali prompts FMCGs to hit back.
The project covers the objective of the study that what is the main motive behind the study on
Patanjali Ayurveda.
Through the project you will get know about that how Patanjali Ayurveda become a giant FMCG
within 5 yr.
And how Patanjali is becoming a tough competitor in the market for the MNCs and the Indian
companies.
And you will get to know about the marketing mix of Patanjali Ayurveda and SWOT analysis
followed by Patanjali Ayurveda.
And most important the unique selling proposition (USP) of Patanjali Ayurveda.
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3. COMPANY PROFILE
Introduction:
Patanjali Ayurveda Kendra Ltd was officially inaugurated by Pram Yoga Rishi Swami
Ramdevji & Ayurveda Shiromani Rishikalpa Acharya Shree Balkrishnaji on 27 September 2007
(2064/6/10 B.S.) and started its operation as an Patanjali Ayurveda Kendra Ltd at swoyambhu,
Katmandu, Nepal with the ultimate aim of providing holistic, natural and effective Ayurveda
treatment.
Profile:
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Head Office Patanjali Ayurveda Kendra Pvt.Ltd
Swotantramargh,Swoyambhu
Chakra path, Kathmandu, Nepal
www.patanjaliayurveda.com
Number of employees
Kathmandu Office 25 Nos.
Bank Details
Name Bank of Katmandu
Beneficiaries Details
Name Patanjali Ayurveda Kendra Pvt.Ltd
Address Swoyambhu, Kathmandu
A/C Number 470000061438 / 060100061438
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Division Of Drug Administration
On 2063.10.19 BS. Reg. No. 17243.
PRODUCT CATALOGUE
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TOTAL INCOME COMPOSITION OF PATANJALI PRODUCTS AND THEIR
CHALLENGES
This diagram shows the income composition of patanjali Ayurveda, which shows that 21% of
income is generated from health care ayurvedic products of patanjali, 40% of total income
generated by patanjali is from food and beverages and around 39% of share of income is
generated from cosmetics and home care products of patanjali.
Challenges
• HUL and Dabur focusing back on Herbal
• Late entrant to Advertising game
• Noodle: a risky proposition?
Scaling up and Global expansion
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RAMDEV EXPANDS EMPIRE BEYOND YOGA TO FMCG, BUSSINESS POISED TO
TOUCH RS. 2,000cr THIS FISCAL YEAR.
Currently, Patanjali is present in almost all categories of personal care and food products --
soaps, shampoos, dental care, balms, skin creams, biscuits, ghee, juices, honey, Atta, mustard oil,
masala, sugar and much more. Going by current turnover projections of Rs 2,000 crore,
This is despite the fact that most of Patanjali's products are priced lower than its competitors.
What gives the company an edge is its very low expenses on advertisements. In comparison,
leading FMCG companies spend about 20-30% of their sales on advertisements.
With the Patanjali brand's growing reach and popularity among consumers, it's now being
discussed in corporate boardrooms as well. This is in sharp contrast to its quiet beginning in
2007. As the demand for his products grew, Baba Ramdev realized the huge scope within the
FMCG sector and started building the range, taking on deep-pocketed multinationals.
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3.2.MISSION AND VISION OF PATANJALI AYURVEDA
MISSION:-
VISION:-
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3.3.MARKETING MIX OF PATANJALI AYURVEDA
Founded in 2006 by Acharya BAL Krishna and Baba Ramdev, Patanjali Ayurveda is an Indian
FMCG Company. Patanjali Ayurveda happens to be the fastest growing FMCG Company in
India. Patanjali Ayurveda imports herbs from Himalayas Nepal.
Patanjali is manufacturing its products in Nepal, working under the brand name of Nepal
Gramudhyog. Patanjali Ayurveda is the India’s fastest growing FMCG Company is valued at
3000 Crore and generated a revenue of 5000 Crore for the fiscal year of 2015-16.
Hindustan Uniliver and P&G are the FMCG companies, whose market share has been potentially
affected by Patanjali. P&G and Hindustan Uniliver are on back foot and trying to pull customers
back by providing huge discounts and remarkable offers.
PRICE
PRODUCT Value Based Pricing
All Existing Products +
Herbal Products to treat Alignment of Cost,
Cough & Cold Customer &
Competitors
PLACE PROMOTION
Franchisee Stores,
Super/Hyper markets & Yoga Shivir to create
Online Marketplace awareness, YouTube
Channel, Social Media to
(like souq.com, target GULF (MENA)
desertcart.ae)
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PRODUCTS IN THE MARKETING MIX OF PATANJALI AYURVEDA
Baba Ramdev is steadily 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.
The product "Pranayama" is well suited for all irrespective of class, creed, culture and hence this
success.
Swamiji's unique contribution has been to lead a healthy life through the practice of simple
breathing exercises.
Swami Ramdev's Divya Medicines are claimed to be one hundred percent natural, no or very
little side effects.
Medicines can cure all the diseases from a simple cold to cancer.
Dabur Honey: Patanjali Ayurveda is providing people with option to buy quality honey at around
30% lesser price than Dabur.
Colgate: Patanjali Ayurveda 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.
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PRICING IN THE MARKETING MIX OF PATANJALI AYURVEDA
Developing an effective pricing strategy remains the most important and difficult part of the
marketing process.
For instance, a nominal 1 per cent increase in price realization will boost net income by 6.40 per
cent for Coca-Cola and 28.70 per cent for Philips.
This is the cheapest and the only complete cure to most of the so called incurable diseases like
diabetes, cancer, HIV & AIDS too.
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PLACE IN THE MARKETING MIX OF PATANJALI AYURVEDA
Patanjali Ayurveda 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-entrenched 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.
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 as
the margins in the product are good too.
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PROMOTION IN THE MARKETING MIX OF PATANJALI AYURVEDA
Patanjali Ayurveda goes with the Slogan “Prakriti ka Ashirwad”. Well, Patanjali Ayurveda 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 handedly 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.
Baba Ramdev has hit both the opinions as he is advertising and at the same time not advertising.
In the year 2002 when Aastha television channel started airing Baba Ramdev's yogic classes;
overnight, Baba Ramdev became a sensation he had hundreds of followers who morphed into
thousands.
Millions around the country follow his programed religiously and use Ayurvedic medicines
prescribed by him.
Baba Ramdev's pack one DVD, two Video CDs written three books on Yoga, Pranayama Herbal
Remedies and Magazines are available.
He has mastered the art of mass customization and practices so that each individual feels that he
is talking to him individually.
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3.4.UNIQUE SELLING PROPOSITION (USP)
Constructing a "Disease Free Society - Medicines Free World", embraced dream of BABA
RAMDEV.
It is declared that after comprehensive research of the antique outcome of Pranayama Yoga
during last numerous years, it has been demonstrated now that proper Breathing Technique's
practice can antidote all diseases completely without medicines or surgery.
He claims to have trained 35,000 persons that are well equipped to hold yoga classes in different
regions of the country.
Patanjali Yoga Ashram has set up 535 branches and 15 more centers are in the process of being
entrenched.
This is engaged towards creating a new USP wherein any requirement of the customers can be
fulfilled to without setback.
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3.5.SWOT ANALYSIS
S-STRENGTH
1. Brand Name
2. Strong TQM
3. Excellent Marketing Strategy
4. Innovative Personality
5. Cheap price cum Charming Products
W- WEAKNESS
1. No standard advertising
2. Lower Concentration on Other top countries
3. Lower Marketing strategies
O-OPPORTUNITIES
T-THREATS
1. Govt. Regulations
2. Maximum Taxes
3. Lack of Support from Foreign Government.
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3.6.PATANJALI KEY TO SUCCESS
1. 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. Hence,
they are able to reduce their raw material procurement cost and are able to produce goods at a
much cheaper price.
Patanjali products are sold through three types of medical centers. These include Patanjali
Chikitsalayas which are basically clinics. Then there are Patanjali Arogya Kendra’s which are
health and wellness centers. They also have non-medicine channels called Swadeshi Kendra’s.
Patanjali is able to create a brand perception of health and wellness among the Indian masses,
primarily because of Baba Ramdev’s association. Hence, more people are getting attracted to
Patanjali’s products and are re-buying products more frequently.
Patanjali sells its products with a very simple packaging. Now, many would feel that it is not a
good strategy but the truth is it is working for Patanjali. With a product like Patanjali, where the
message is to promote ‘Ayurveda’ and ‘Health’, simple packaging can be a very effective way of
promotion. With a natural look (especially with leaves and herbs), consumers get a feeling of
health and wellness and they are attracted to buy the product.
Baba Ramdev is considered to be a guru of yoga across the globe. He has been very co-
operative with press and media and has maintained good relationships with them. Also, he is
known to have good connections with many politicians. So he used both the facts to publicize his
company free of cost.
6. 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
model and 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.
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3.7.COMPETITION FROM PATANJALI PROMPTS FMCG TO HIT BACK
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 biggest FMCG Company Hindustan Unilever (HUL) is
doing: It has 'resurrected' its herbal brand Ayush, launching it online. A bunch of new products
across hair care, 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 the future. 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, which is why Ayush, which
existed in our portfolio, has now staged a comeback. We also acquired Indulekha to grow our
presence 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.
Harsh Agarwal, director of Emami, says he is open to acquisitions to strengthen his firm's
position in the herbal space. "Ayurveda has been around for a long time. I don't see this as a new
trend. But, the emergence of new players is happening right now. We welcome them and will
continue to fortify our range with new variants, launches and acquisitions."
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 located in
the south.
Industry source say herbal and non-herbal companies are now going back to the drawing board,
looking at how they can incorporate natural ingredients when developing new products.
Godrej Consumer, for instance, has launched a neem-based mosquito coil; a crème hair color that
has coconut oil; and launched new variants under Godrej No 1, its natural’s platform in soaps.
Sunil Kataria, business head (India and Saarc region) at Godrej Consumer, says, "Our endeavor
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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 Dent 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 the
herbal coup, 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, and
children. 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 from anti-hair fall
creams to pills for staying slim are part of this new initiative.
HUL
Company "resurrects" herbal brand, Ayush, launching it online. Plans to increase "natural"
offerings
Emami
Firm open to acquisitions for strengthening the company's position in the herbal space
Godrej Consumer
Launches neem mosquito coil, a crème hair color that has coconut oil, new variants in naturals
soaps
Colgate
Firm aggressively advertising its active salt neem toothpaste, as its volume was hit after
Patanjali's Dent Kanti
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Dabur
Firm launching ayurvedic products. Pushing Dabur Honey and Chyawanprash aggressively
Himalaya
recently launched its range of wellness products which aim to provide therapeutic solutions to
consumer.
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4. LITERATURE REVIEW
By Varun Mishra Posted May 26, 2016 in Branding, Business, FrontPage, Health, Lifestyle,
Marketing 3 0
Introduction
Patanjali started its operations with Patanjali Yogpeeth in Hardiwar, Uttarakhand. Patanjali
yogpeeth is one of the biggest yoga institutes in the country. Swami Ramdevji and Acharya
Balkrishanaji set up Patanjali Ayurveda Ltd for treatment, research and development and for the
manufacturing of ayurvedic medicines in Yoga and Ayurveda.
Patanjali Yogpeeth offers treatment and scientific research and has brought a coup when it comes
healthcare in the country with the combined approach of Yoga and Ayurveda.
The infrastructural facilities at Patanjali Yogpeeth includes an OPD for free medical
consultation, IPD of thousand beds, laboratory for test investigation of radiology, cardiology and
pathology, a yoga research division, free yoga classes, high quality ayurvedic medicines
manufactured by Divya pharmacy, facilities of library and reading room along with a cyber café,
a huge auditorium, apartments for senior citizens, a grand museum and a sale channel of 11,000
square feet for literature related to yoga and Ayurveda.
Patanjali started off manufacturing bulk ayurvedic medicines later branching its operations into
FMCG markets as well. Since, the FMCG market has low entry barriers, Patanjali soon
entrenched itself as a major consumer goods’ manufacturer. The recent trends clearly imply that
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the company’s preference are shifting from medicines to consumer goods, perhaps because the
net revenues earned through FMCG are on par with ayurvedic medicines.
Patanjali as a brand currently has more than 350 products from Soap to Toothpaste and from
Oats to Health drinks. The 2014-2015 revenue of Patanjali Ayurveda crosses Rs. 2000 crore
figures. In January 2016, IIFL said “Patanjali Ayurveda Ltd has, in a short span of less than a
decagon, recorded a turnover higher than what several companies have managed to accomplish
over several decagons.
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Proactive moves in Innovation
Patanjali Ayurveda is aggressively planning to enter into every consumer category. Currently
Patanjali Ghee is expected to be at INR 12 billion in the financial year 2016 and if it gains solid
distribution expertise, it could pose a serious threat to its competitors. An innovative R&D
facility equipped with latest technology, Patanjali has also launched a mobile app which helps
the consumer to locate retail channels and for online ordering of Patanjali products
The three phases of patanjali’s supply chain are product flow, information flow and cash flow.
Patanjali has recently completed a tie up with Future group to sell the products. They also sell
their products through their own channels opened in almost every district/city of India. Each
channel has to send their demand to central office at Hardiwar. Then as per the demand, various
products are gathered from various units of Patanjali. The items are delivered to channels
majorly through Patanjali transport.
Patanjali provides sale of products online and can also be get hold of through post by sending the
money through demand draft
Patanjali herbal products are available at Post Offices across the country
Patanjali also has “Patanjali Chikatsalayas” and “Patanjali Arogya Kendra” in almost all the
cities of the country
To strengthen the distribution Patanjali is also implementing ERP which will help them in
managing the inventory.
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4.2. RESEARCH METHODOLOGY
Attaining accuracy in any research requires in depth study regarding the subject. As the prime
motive of the project if the project is to know the marketing strategies of Patanjali Ayurveda and
how it is affecting Indian economy.
RESEARCH DESIGN
Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main
characteristic of this method is that the researcher has no control over the variables; he can only
report what has happened or what is happening.
DATA SOURCES
There are two types of data. Source of primary data for the present study is collected through
questionnaire and answered by consumers 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 from respondents
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 done is Descriptive Research.
RESEARCH INSTRUMENTS
SAMPLE UNIT
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100 respondents of different age groups, different profession and of different gender.
SAMPLING DESIGN
Convenience sampling.
SAMPLING TOOLS
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4.3. SCOPE OF THE STUDY
To conduct this research the target population was children, middle age men’s and women’s.
Targeted geographic area of Delhi/NCR, sample size of 100 people were taken.
100 people were given the questionnaire, and the questionnaire was the combination of both
open ended and closed ended.
Finally the collected data was analyzed and complied to arrive the conclusion and suggestion.
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4.4. LIMITATION OF THE STUDY
Every attempt will be taken to obtain error free and meaningfull result but as nothing in this
world is 100% perfect.
I believe that there will be still the chance for error on account of following limitations:-
The information obtained from the consumers based on questionnaire was assumed to be factual.
Since the survey is based on sampling method, it does not disclose the character of entire
customer.
Product unavailability for the consumers in the market is one of the biggest limitation for
Patanjali Ayurveda.
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5. DATA ANALYSIS AND INTERPRETATION
AGE:-
PATANJALI AYURVEDA
10%
20%
10 TO 18
19 TO 25
30%
26 TO 50
50 TO 75
40%
GENDER:-
PATANJALI AYURVED
35%
FEMALE
MALE
65%
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Q1. DO YOU USE PATANJALI AYURVEDA PRODUCTS?
PATANJALI AYURVED
NO
20%
YES
80%
Maximum people in a particular surveyed area use patanjali product as they are cheaper to buy
when compared to some other product manufactured by the MNC companies.
So, about 80% of people use patanjali product in a middle class family.
And patanjali has that trust factor of naturally made product without any preservatives or harmful
chemicals.
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Q2. WHICH CATEGORY PRODUCT OF PATANJALI AYURVEDA YOU USE?
PATANJALI AYURVED
25
45
MEDICINE
FOOD PRODUCT
45
SUPER FOOD
AYURVEDIC BODYCARE
AYURVEDIC PUBLICATION
55
30
Survey was conducted for random 100 people of that particular area.
25 people out of 100 people use medicine products of patanjali and 45 people use food products
manufactured by patanjali Ayurveda.
30 people out of 100 opted that they use super food products manufactured by patanjali
Ayurveda.
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Q3. HOW FREQUENTLY YOU USE THE PATANJALI AYURVEDA PRODUCTS?
PATANJALI AYURVED
70
60
50
40
30
20
10
0
WEEKLY MONTHLY YEARLY
PATANJALI AYURVED
As it depends upon the use of the product and which type of product it is.
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Q4. WOULD YOU LIKE TO RECOMMEND PATANJALI AYURVEDA PRODUCTS
TO OTHER?
Series 1
75
80
70
60
50
35
40
25
30
20
10 10
0
DEFINITELY DEFINITELY NOT PROBABLY PROBABLY NOT
Series 1
What I concluded is maximum no. of people are satisfied using patanjali product so, 75 people
would definitely recommend the patanjali product to other while 10 people where little
dissatisfied of using patanjali product.
35 people ticked that they will probably recommend the product to others.
And 25 will probably not recommend the product to other as it is their own personal views
regarding the usage of the product.
And due to some of the limitation of the study we could not find the correct results regarding the
study.
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Q5. WHY DO YOU CHOOSE PATANJALI AYURVEDA PRODUCTS?
Series 1
35
cheaper price
no negative effects 45
natural in nature 65
0 10 20 30 40 50 60 70
Series 1
As patanjali target middle class people and as well as lower class people and of middle age group
and children.
So most of the people purchase the patanjali products as it is cheaper and in the budget for
middle class people.
Health conscious people purchase patanjali product as it is natural in nature and have no negative
effects.
So, about 35 people out of 100 random people purchase patanjali because of its affordability at
cheaper price. 45 people purchase patanjali product because it has no negative effects.
50 people prefer patanjali product because of its good quality at maximum quantity.
About 65 people purchase patanjali because it is natural in nature, according to this study.
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PATANJALI AYURVED
WHOLESALER, 5%
RETAILER, 20%
PATANJALI STORES
45%
ONLINE SHOPPING,
30%
45% of people prefer to purchase the patanjali products from the patanjali stores itself.
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Q7. HAVE YOU SEEN ANY TANGIBLE HEALTH BENEFITS OF USING PATANJALI
AYURVEDA PRODUCTS?
PATANJALI AYURVED
35
65
YES NO
Customers using patanjali products really felt a health benefit of using patanjali Ayurveda as
patanjali products are naturally made.
35% of people dint felt any hard and fast benefits of using a patanjali product.
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Q8. DO YOU FIND THEM AFFORDABLE?
PATANJALI AYURVED
DEFINITELY
DEFINITELY NOT
PROBABLY NOT
PROBABLY
45 people out of 100 people find them affordable, while 25 people out of 100 people definitely
find them affordable and at maximum quantity with good quality and at cheaper rates.
2 people don’t find them affordable, whereas 35 people out of 100 people random surveyed
ticked probably not.
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Q9. WOULD YOU LIKE TO SWITCH THE BRAND IN NEAR FUTURE?
PATANJALI AYURVED
YES NO
Maximum no. of people are satisfied using patanjali product and they are not going to switch the
brand in near future.
85 people out of 100 will not going to switch the brand in near future, while 15 people out of 100
people are going to switch the brand in near future due certain limitation of patanjali Ayurveda
on which patanjali had to work a lot.
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Q10. WHICH BRAND WOULD YOU LIKE TO SWITCH IN NEAR FUTURE?
PATANJALI AYURVED
35
30
30
25 25
25
20
15
10 10
10
0
DABUR INDIA LTD. SHRI BAIDYANATH ZANDU HIMALYA DRUG THE EMAMI GROUP
PARMACEUTICAL COMPANY
WORKS
PATANJALI AYURVED
The next best competitor of patanjali Ayurveda is dabur India ltd., about 30 people want to
switch to dabur after patanjali, where 10 people will go with shri baidyanath.
And 25-25 people will go for zandu pharmaceutical works and Himalaya Drug Company after
patanjali
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Q11. ARE PATANJALI AYURVEDA PRODUCTS GENUINE?
Sales
25
75
YES NO
25 people out of 100 people said no that the patanjali products are not genuine,
Whereas 75 people said that the patanjali products are genuine and natural.
As patanjali products are naturally made without any preservatives and without any chemical
substances.
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Q12. IS THE HUGE RISE OF INDIGEIOUS PATANJALI PRODUCTS GOOD FOR
OUR COUNTRY?
PATANJALI AYURVED
120
100
80
60
40
20
0
YES NO
PATANJALI AYURVED
With each increase in sale of patanjali product our imports will decrease which will definitely
effect our economic wealth.
And one of the most important thing this that they serve their customer a healthy product which
will definitely affect the health conditions of our country and our country will grow.
About 99 people out of 100 people believe that rise of PatanjaliAyurveda is good for our
country.
A reduction in imports will help improve the value of rupee against foreign currencies, and make
it a stronger currency. This can also help in paying less for other major imports which may well
increase: oil and coal.
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Q13. IS IT GOOD TO BUY A PATANJALIAYURVEDA PRODUCTSFOR OUR INDIAN
ECONOMY?
PATANJALI AYURVED
NO
YSE
0 10 20 30 40 50 60 70 80 90 100
PATANJALI AYURVED
Most of the people said yes it is good to buy a patanjali product for our Indianeconomy as our
exports will decrease and our economic stability will be there in our economy.
While 10 people out of 100 said no because they think that it is causing damage to our natural
environment, excessive use of natural environment can cause danger.
Less dependent on products from outside. (Less imports due to increased production)
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Q14. OVERALL, HOW MUCH SATISFIED YOU ARE WITH USING PATANJALI
AYURVEDA PRODUCTS?
PATANJALI AYURVED
70
60
50
40
30
20
10
0
SATISFIED UNSATISFIED SOMEWHAT SATISFIED
PATANJALI AYURVED
Renewable sources cannot push this much production. So, only tradition energy sources will
require. Which will pollute air and water.
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6. FINDINGS
Quality as the most influencing factors in the purchase decision while price is also 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 product
before 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
+ less cost + quality.
Extra quantity with less or same price, more satisfaction, quality and other factors
clout consumers 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
Demand is too much for Patanjali’s products in market, because of that shortage problem occurs
in market regularly.
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CONCLUSION
Patanjali Ayurveda has given a trouble to many marketers with its individualistic ways of
marketing.
Patanjali Ayurveda had rattled the whole FMCG’s sector and bought a mutiny in the industry in
a very spell era.
A point to note is that many people are buying due to its hedonic value attached to the products.
Hence, patanjali is attracting brand trustworthy customers and not price sensitive customers.
Or will it prove to be a water bubble, with this being a temporary phase for patanjali and strong
players eventually coming up with strategies to recapture the loss market share?
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SUGGESTIONS
Most of the patanjali consumers are facing problem like; products are not available in the market
regularly,
So they are suggested to increase their stock and make sure that the products are available in the
market regularly.
So patanjali Ayurveda should increase their productivity 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 will
require.
So make sure that increase in production may not harm the environment.
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QUESTIONNAIRE
A STUDY ON
NAME:
GENDER:
AGE:
OCCUPATION:
Yes No
MEDICINE
FOOD PRODUCT
SUPER FOODS
AYURVEDIC PUBLICATION
Weekly
Monthly
Yearly
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4. WOULD YOU LIKE TO RECOMMEND PATANJALI AYURVEDA PRODUCTS TO
OTHER?
Definitely
Definitely not
Probably
Probably not
Natural in Nature
No Negative Effects
Cheaper Prices
Yes No
Definitely
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Definitely not
Probably
Probably not
Yes No
Shri baidyanath
Yes No
Yes No
Yes No
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14. OVERALL, HOW MUCH SATISFIED YOU ARE WITH PATANJALI AYURVEDA
PRODUCTS?
Satisfied
Unsatisfied
Somewhat satisfied
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BIBLIOGRAPHY
http://www.patanjaliayurved.org/about.html
http://en.m.wikipedia.org/wiki/marketing
http://www.easy-marketing-strategies.com/definition-marketing-strategy.html
http://www.stellarix.com/fusce/a-report-on-patanjali-ayurveda/
http://patanjaliayurveda.com/en/company-profile/
http://timesofindia.indiatimes.com/business/india-business/Ramdev-expands-empire-
beyond-yoga-to-FMCG-business-poised-to-touch-Rs-2000cr-this-
fiscal/articleshow/45861809.cms
http://www.marketing91.com/marketing-mix-patanjali/
http://www.youthkiawaaz.com/2016/07/patanjali-ayurveda-why-business-is-booming/
http://www.business-standard.com/article/companies/competition-from-patanjali-
prompts-fmcgs-to-hit-back-116011800008_1.html
http://download.nos.org/srsec319new/319EL20.pdf
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