PATANJALI-A SENSATION IN INDIAN FMCG MARKET

Founded in 2006 by Acharya Balkrishna and yogguru 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 of Nepal.

Patanjali has a manufacturing unit in Nepal, working under the brand name of Nepal Gramudhyog. India’s fastest growing FMCG Company is valued at 3000Crore and generated revenue of 5000Crore 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. In a short span of less than a decade, It is giving a tough competition to P&G and Hindustan Uniliver. Many companies like HUL, P&G, Dabur, and Himalaya are on back foot and trying to regain their customers back by providing huge discounts and impressive offers.

ADVANTAGES OF HAVING BABA RAMDEV

v  Patanjali has a major advantage as it is associated with a famous personality, “Baba Ramdev - a yoga guru”, who has a fan following of millions of people who directly popularize this brand through yoga camp. His direct interaction with consumers helped him promote the brand internationally.

v  Baba Ramdev is the brand that helped the brand grows with a very low advertising expenditure. Promotion of Patanjali is directly done by Baba Ramdev. Recently he was seen promoting his brand in Kapil Sharma’s Show and even in a reality show India’s best dramebaaz which has also been sponsored by Patanjali. He thinks brand will double its revenue to Rs.10000crores from 5000crores in India by the end of 2017.

PATANJALI’S MARKETING STRATEGIES THAT LEAD IT TO SUCCESS:

v  LESS PRICE: Patanjali products are available at an attractive discount as compared to their competition. It 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. Currently, Patanjali is making 20% operating profit which is higher than the industry average.

v  STRONG DISTRIBUTION CHANNEL: The distribution channel of Patanjali is very strong and big. They sold products through three medical centers and even through nonmedical centers. The products are available online and even on retail shops. The plan is to grow 1lakh outlets in next few years.

v  SIMPLE PACKAGING THAT GIVES IT A NATURAL LOOK: Patanjali sells its product with a very simple packaging. With a product like Patanjali, where the message is to promote ‘Ayurveda’ and ‘Health’, simple packaging can be a very effective way of promotion and that is why the company is able to do miracles with its simple yet effective packaging. 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.

v  WORD OF MOUTH PROMOTION: 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.

v  STRONG BRAND ASSOCIATION WITH HEALTH: Patanjali is able to create a brand perception of health and wellness among the Indian masses, primarily because of Baba Ramdev’s association with the brand who is considered to be a veteran of yoga. Hence, more people are getting attracted to Patanjali’s products and are re-buying products more frequently.

Patanjali has given a headache to many marketers with its different ways of marketing. It has disrupted the whole FMCG sector and bought a revolution in the industry in a very short span of time. A point to note is that many people are buying Patanjali products due to the value attached to the products. Hence it is attracting brand loyal customers and not price sensitive customers.

Will Patanjali continue to grow at the same pace and prove to be a dark horse in the race? 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 lost market share? Only time will tell.