Rise of Patanjali Ayurveda – not a coincidence but strategy.

2012 – 450 Crores
2013 – 850 Crores
2014 – 1200 Crores
2015 – 2000 Crore
2016 – 4500 Crores (estimated).

This is the market growth of Patanjali Ayurveda Limited in last four years and all multinational companies have strategically planned to retain their market share which is being captured by Patanjali very rapidly but Baba Ramdev’s strategies have foiled their efforts. In last write up we discovered some products, pricing, promotion and distribution strategies of Patanjali Ayurveda Limited and this time too I would like to comprehensively discuss strategies of Patanjali as Baba has jumped widely in consumer market with new products and strategies which have made nights sleepless for competitors. I would like to explain all strategies in a sequence starting with products followed by pricing, promotion & advertising and finally distribution.

Products – Started with some ayurvedic medicines and remedies, Patanjali rapidly widened it’s products range as consumers had been becoming conscious of health hazards of chemicals and other substances being used as ingredients. Baba encashed herbs and natural substances in Patanjali products and people who used those products recommended others to use Patanjali products. From dental cream to hair cleansers, cosmetics products like face cream & moisturizers, honey, soaps, detergents, spices, biscuits, squash, fruit juices, jam, breakfast cereals, pulses, atta noodles, health complements like chavyanprash etc were rapidly added into entire product rage of Patanjali Ayurveda Limited. Patanjali has never launched any product which are supposed to be affecting health and always campaigned against carbonated beverages and inorganic products. Patanjali has set up various manufacturing units in Uttrakhand state herbal food park near Haridwar. Patanjali has it’s own Gaushalas (cow pens ) where thousands of Indian cows are well looked after and cow products like milk, ghee are used in Patanjali products. Hindus are religiously attached with cows and use of cow product and preserving cows by Patanjali also drive people to use Patanjali products. Patanjali has strategically targeted elderly people, youngsters and children by launching and diversifying it’s products. From big packs to small sachets, products are available for individual to family needs. Company is set to launch Power Vita, a malted food drink for children and Ramdev claims Power Vita to be more sold than Bournvita, Horlicks, Complan and Boost in next couple of years.

Pricing – A big reason behind it’s rise, Patanjali’s all products are available in 20-30% lesser price as compared to products of other manufacturers. For instance, Kellogs sells corn flakes of 250 gram and 475 gram packing at the price of Rs. 95 and 159 respectively whereas Patanjali sells same products at the price of Rs. 85 and 145 respectively. Same is with all product range of PAL and consumers tend to incline towards Patanjali products for pricing as well as health reasons. Patanjali grows herbs and other ingredients in it’s own food and herb park so efforts are reduced to procure ingredients used in product manufacture. Apart from this Patanjali has never appointed any brand ambassador or any celebrity to promote it’s products. Other manufacturers spend hefty money to endorse brand ambassadors whereas Patanjali spends the same money in pricing of the product to have competitive advantage in the market.

Promotion and advertising – As mentioned above, Patanjali’s advertising budget is very less as compared to others. Patanjali has never endorsed any celebrity as brand ambassador for promotion of it’s products. Baba Ramdev himself is the brand ambassador of the PAL. Baba’s picture displayed on any store informs people about availability of Patanjali products there. “I am here not for Vyapar but for Upkar” (I am not here to do business but for welfare of people), said Baba Ramdev in an interview. PAL has now started TV advertisements of some Patanjali products but there too health advantages are concisely explained. Baba has said a big no to using half nude models in beauty products advertisements and false promises in the advertisements. “All we have to tell about benefits of herbs and natural products instead of using glamorous models and environment” says Baba Ramdev. Bharat Swabhiman, an organization established by Baba to promote Swadeshi (country made) products promotes Patanjali products at Yoga concerts. Bharat swabhiman and Baba Ramdev have millions of followers and are brand ambassadors of Patanjali Ayurveda Limited.

Distribution – Very important factor behind success in consumer market is the easy availability of the product. Initially Patanjali products were sold in exclusive franchises only where products of other manufacturers were not available. The exclusive Patanjali stores rapidly grew in last three years due to high demand of the products. Patanjali then made pact with some retailers like Pantaloons, Reliance retails to sell it’s products in their retail store but with separate kiosk or divisions. This made the products available for people visiting retail malls to have household shopping. Patanjali has recently done agreement with Snapdeal, a giant of e-commerce to sell the products online as e-commerce has wide share in retail market. From metro cities to urban and semi urban areas, Patanjali has penetrated into consumer market and consumers don’t have to go far to buy the products.

Patanjali Ayurveda Limited has risen on that level in last four years which took other FMCG companies two to three decades to reach. Patanjali has commercialized it’s business in non commercial way and consumers have trust on the products of the company. With 70 million followers behind Baba Ramdev, It will be tough for other FMCG companies to stop Patanjali to expand its wings in consumer market.

So, nothing is coincidence here, it’s all strategic and if consumers are getting benefitted of getting products in less prices with health advantages then it will be continuing.

Also read the similar articles –

Unstoppable Baba. Patanjali now predicts to be top FMCG company by one year.

Consumer behaviour strategies of Patanjali Ayurveda.

Rise of Patanjali Ayurveda – A coincidence or a strategy?