Demand Pattern and Consumer Satisfaction of Patanjali Products

Demand Pattern and Consumer Satisfaction Of Patanjali Products
CHAPTER I
1.1 INTRODUCTION
Patanjali Ayurved Limited (Patanjali) incorporated on 13th January 2006 is an

Indian FMCG company to manufacture, process, refine, formulate, import, export and deal in
all kinds of Ayurvedic and Herbal products and Life Savings Drugs etc. The company
currently manufactures more than 1000+ products across different categories and is coming
with a variety of new products as well. Its manufacturing units and headquarters are located
in the industrial area of Haridwar while the registered office is located in Delhi. It also has
manufacturing units in Nepal under the trademark Nepal Gramudhyog and imports majority of
herbs in India from Himalayas of Nepal.
The company’s main promoter is Acharya Balkrishnan, who owns 94% of the company and
the remaining is owned by Mr.Sarwan Poddar and Mrs.Sunita Poddar, a NRI couple. The
company and its products have been popularised by Baba Ramdev, a yoga guru who has a
significant following across India. Patanjali runs 12 units including some units for Packaging
Material and Containers e.g. flour mill, candy plant, herbal cosmetics and detergent plants,
digestive units, juice plants etc. Patanjali specialises in Health Care, Beauty Care, Food,
Home Care and Hair Care products.
There are nearly 10,000 consumer touch points as ‘Chikitsalays’ (Dispensaries) and
‘Aarogyakendras’ (health centres). These are operated by third parties as Patanjali exclusive
stores. Recently, Patanjali has tied up with Future Group and other retailers to increase their
reach with a determined strategy to cater to maximum customers. Patanjali is now in the
process of starting mega-marts – modern retail formats of 3000-5000 square feet, which
would stock only Patanjali products. One such store has recently been opened in Nagpur. It
also has an e-commerce portal through which it sells its products, the sales team of 400+ and
K.C. College, Churchgate Page 1

300+ technically qualified engineers are supported by more than 6000 labourers in its
processing activities.
According to CLSA and HSBC, Patanjali is the fastest growing FMCG company in India.Its
current net worth is about 10,000 Crores. Ramdev baba has stated in his interview with CNN-
News18 that all the profits from Patanjali Products goes to charity.
1.2 SCOPE OF THE STUDY
The ever changing marketing scenario and heightened competition over the globe has
amplified the role of brand at unparalleled level. Every person is a consumer of different
brands at the same time. The choice and usage of a particular brand by the consumer over
the time is affected by the quality benefits offered by the brand especially when it comes to
brand of eatables and cosmetics. Consumer satisfaction is derived when he compares the
actual performance of the product with the performance he expected out of the usage. Philip
Kotler (2008) observed that “Satisfaction is a person's feeling of pleasure or disappointment
resulting from product's perceived performance (outcome) in relation to his or her
expectations”. If the perceived benefits turns out to be almost the same as expected, the
customer is highly satisfied and that is how the company achieves loyalty of the customer
towards the products.
In the Indian scenario, perceptions about a particular brand are important because Indian
customers rely on the perception of their near and dear ones before actually buying or using
the product. The perceptions of the people around us affect our decision to buy or not to buy
the product. The qualm of buying and not buying continues into the mind or the black box of
the prospective consumer unless his decision is not supported by many. Thus in order to
survive in the marketing environment of a country like India, brands need to be positioned in
the minds of people. India is known to be a hub of Herbal brands since herbal products are
deeply associated with the spiritual sentiments of the people. A WHO (World Health
Organisation) study estimates that about 80 percent of world population depends on natural
products for their health care instead of modern medicines primarily because of side effects
and the high cost of modern medicine. This paper carries out a study on what factors affect
the buying decision of the buyers and consumer satisfaction for brand PATANJALI.
The company is set up with an objective to provide superior quality of products at fair price
and to get their customers rid off the chronic diseases by providing products which are
organic and natural. This concept of Herbal and Pure has gained momentum in India and
across the world since people nowadays are more centered towards keeping themselves
near to Nature due to their commercialised routines.
1.3 OBJECTIVES OF THE STUDY
 To know the attributes that a customer keeps in mind while buying Patanjali Products.
 To study the satisfaction level of consumers after using Patanjali Products.

 To study the demand pattern based on demographics of the consumers buying

Patanjali Products.
 To study the possible reasons for disliking or non usage of Patanjali Products.
1.4 LIMITATIONS OF THE STUDY
Utmost care has been taken with regard to the collection, classification and analysis of data.
However, the study is subjected to the following limitations:
 Geographical limitations (Restricted to Mumbai Region only)
 Small sample size, as it is a survey with 110 respondents covering the area of
Mumbai.
 Basically based on primary data, hence we can’t argue that the research is applicable
in every condition, time and place.
 Short time duration, with in such short span of time it is too much difficult to analyse
the topic.
 Lack of respondent’s support and understanding, as while filling the survey form they
were not able to fill them correctly and some were unwilling to divulge certain details
like name, family income etc.
CHAPTER II
2.1 REVIEW OF LITERATURE

Rarely do capital market experts look beyond the universe of companies listed on the stock
exchanges. Their spreadsheets, presentations and analysis revolve around the financial
ratios of listed companies that report their revenues and profits at regular intervals. But, there
is one unlisted company that is now on the radar of almost all the big brokerages; it is not
burning cash and boasts of a loyal following, traits that are uncommon in the e-commerce
space where profits are a distant dream. The company is Patanjali Ayurved Ltd (PAL).
Patanjali has grown from strength to strength and is giving big player FMCG companies a run
for their money. Patanjali is clearly targeting much older FMCG majors like Colgate-
Palmolive, Nestle, Dabur and HUL. Its wide array of products including spices, pulses,
chyawanprash, toothpaste, shampoo, toothbrush, instant noodles, tea, jam, corn flakes and
also beauty products compete directly with products from the heavyweights. A quick glance
at the packaging of a PAL product usually makes it clear which market-leader is being
targeted; the design similarities do not seem coincidental. Patanjali is also taking on the big
players in other geographies, exporting its products to Canada, the USA, Mauritius and UK,
among other countries.
With recording net sales worth Rs. 5000 Crores last year and a net sales worth Rs. 10000
Crores this financial year, Patanjali has really come a long way. Everything is working right
for them. This type of growth is very astonishing for an Indian company competing with
foreign players like HUL, P&G and Nestle. It has already crossed the sales of many
established players. Baba Ramdev, price and quality are the three most important factors

working for them. With trade analysts estimating that Patanjali will cross the Rs. 20,000
crores mark by 2020, it is definitely a force to reckon with and take notice of before it is too
late. Strategic alliances with many E- Commerce business and supermarkets like Big Bazaar
and Reliance Fresh Direct, it has increased its value chain. Patanjali has realised that to
succeed they have to enhance their distribution from the traditional Patanjali Arogya Kendra
or Chikitsalyas.
Patanjali has a diverse product portfolio from having nutrition and supplements to grocery,
from home care to personal care and health care. It has just entered into the health juice
products trying to compete with Real and Tropicana. Cow ghee is its most famous product.
With expansion plans in Maharashtra, Patanjali wants to step up its production so that it can
meet the growing demand of products and avoid shortage. It is also thinking of setting up a
food plant somewhere in south of India. With low advertising spends, Patanjali has still been
able to carve a name for itself. But in recent times it has amplified its advertisements. The
price of Patanjali products are around 20% lower than that of their competitors and it is a
huge reason why it is gaining popularity besides eating into the market share. On the quality
front also it is excellent as it leverages its image of being ayurvedic and swadeshi factor.

The recommendations of Patanjali are working very good for the brand itself as people are
recommending it to their friends and family members. It seems that there is more
acceptability of the brand amongst older people than younger people but it won’t take time for
that to change. With demand so great that people at Marine Lines pull up the shutter after 7
pm to get the products even after the shop is closed for the day for counting cash. It can be
seen that it has carved a place for itself amongst the consumers. It is the next Indian Body
Shop.

2.2 VISION AND MISSION

2.3 THE 3 PRINCIPLES VITAL FOR GROWTH
The 3 Vital Principles That Drive Patanjali’s Business

Patanjali Ayurved is an incorporated company under the Companies Act – Patanjali Ayurved
Limited. Though a corporate entity, its working and ideology is not completely that can be
compared to that of a perfect corporate culture. The company is focussed on top‐line growth
rather than profitability.
Its business ideology is inspired by Swami Ramdev’s ideologies
‘To touch every life through Patanjali which will help the consumers and be present in
all the segments where the consumers feel they can get a better product at a better
price.’
The Organisation Conducts Its Business On The Following 3 Main

Principles:-
 Providing world‐class products to consumers (making sure that the company does not
add any preservatives or uses natural preservatives as far as possible).
 Producing products in the most cost‐effective manner so that the products are priced

very reasonably.
 Whatever profits the company earns are ploughed back into business, so that it can
invest the same for launch of new products, cost effectiveness or further capacity
expansion.
Patanjali will not launch any products that are harmful to the health of consumers and
detrimental to the health and lifestyle of the people. Hence, the company will not get into
product categories like tobacco and liquor which are bad for health. Going forward, the
company also plans to open 500‐600 branches of Acharyakulam (educational institutions).
2.4 SHAREHOLDERS, DIRECTORS, PROMOTERS,

ORGANISATIONAL STRUCTURE AND CULTURE
Shareholders

NRI couple Mrs.Sunita Poddar and Mr.Sarwan Poddar, followers of Ramdev, gave
Balkrishna the first loan to kick-start the business. They have a 3% shareholding in Patanjali
Ayurved, while the loan has since been repaid and Balkrisna has a 94% share holding.
Name Of Shareholder %Age Of Shares Held

Balkrishna Acharya 94%
Poddar Sarwan 3%
Poddar Sunita 3%
Directors
Acharya Balkrishna- Managing Director

Acharya Balkrishna, the man behind Patanjali Ayurved's stratospheric success, is unlike any
traditional CEO. At 43, he may have many contemporaries, but his management style differs
vastly. Although Balkrishna uses an iPhone, his work station doesn't have a computer. That's
not all. Attired in a traditional white kurta and dhoti, he prefers to read from printouts stacked
on his desk and speaks largely in pure Hindi.
Balkrishna was born to Sumitra Devi and Jay Vallabh on July 25, 1972 in Haridwar. His
parents are natives of Baglung, Nepal, but his father was working in Haridwar when
Balkrishna was born. He joined Kalwa Gurukul, Haryana in 1988. Here he met the person
widely known today as the Yoga Guru Swami Ramdev. They soon developed a bond that
shaped their destiny. After Balkrishna completed his post-graduation from Sampurnanand
Sanskrit University in Varanasi, he travelled across India to study plants and their medicinal
value, a key element of Ayurveda.
In the year 1993, he and Ramdev were living in the Himalayan caves of the Hindu pilgrim
town of Gangotri, a popular haunt among holy men and ascetic near the source of India’s
holiest river, the Ganges. Because of his knowledge of herbs, Balkrishna started getting
frequent requests from visitors for medicines for common ailments. This planted the seed for
the establishment of charitable organisations of ayurvedic medicines and treatments. The
duo founded an Ayurvedic Medicine-manufacturing unit named Divya Pharmacy in Haridwar
in 1995. Later Balkrishna helped Ramdev to set up a number of other businesses.

Balkrishna holds a 94% stake in Patanjali Ayurved, but he doesn't take home a salary. Yet,
he works for 15 hours a day, even on Sundays and other holidays during the year. He claims
he hasn't taken a single day's leave either. "I work daily from 7 am to 10 pm. While a normal
person would work for 8 hours a day, I work for 15 hours through the week. I am doing the
job of five people," Balkrishna told TOI in a recent interview at 'Sadbhawna', the head office
which is basically an ayurvedic hospital.
Balkrishna believes it's this "hard work" that has enabled Patanjali Ayurved to become a
Rs 10,000-crore company within a short span of time. Unlike other companies in FMCG,
Patanjali Ayurved's marketing strategies have defied traditional norms. While other
companies are cautious about new product launches, Patanjali has gone the whole hog, and
has over 400 stock keeping units.
Most companies conduct market research before entering new categories. Patanjali, on the
other hand, has launched products in multiple categories almost simultaneously — be it
toothpaste, biscuit or beauty care — with no external market research whatsoever.
"Whatever we have made, we have kept the consumer need in mind. Nobody had thought
that people will also drink amla juice," said Balkrishna to TOI.
Even its umbrella brand strategy where 'Patanjali' overarches all sub-brands is something
marketing gurus advocate against. Balkrishna believes Patanjali has changed the consumer
perception that Indian products are inferior to international products. "We don't need to follow
the standard marketing practices. If your basics are strong, then nobody can beat you,"
Balkrishna said.
The company has now projected an audacious turnover target of Rs 10,000 crore in the
current fiscal. Balkrishna is under pressure to accelerate the pace of growth. That's the
reason why he doesn't believe in wasting time and has already placed orders for machinery
even before zeroing in on the new plant sites.
When he began the journey 10 years ago on personal loans, Balkrishna didn't think Patanjali
would come this far. "I had to take Rs 50-60 crore personal loan. Prior to this, I did not even
have a personal account in a bank," said Balkrishna.
Balkrishna is a recipient of several awards like Bloomberg Special Recognition Award,

Ganga Ratan Award, Spirit & Entrepreneurship Award by ISOL etc. He has also authored
several books like Bhakti Geetanjali, Ayurveda: its principles and philosophies to name a few.

Ramdev Baba- Main Promoter
Ramdev was born on 25 December 1965 to Ram Niwas Yadav and Gulabo Devi at
Hazaribag Ali Saiyad Pur village of Mahendragarh district, Haryana. Both of his parents were
farmers. He claims he became paralysed when he was two & half and was later cured by
practicing Yoga. He studied Indian scripture, Yoga and Sanskrit in
various Gurukuls (schools). He was the student of Acharya Baldevji in Gurukul Kalwa.
Ramdev took sanyasi diksha and adopted the name Swami Ramdev from Swami Shankar
Dev Ji. While living in Kalwa Gurukul in Jind district, Haryana, Ramdev offered free yoga
training to villagers. Then he moved to Haridwar in Uttarakhand, where he practiced self
discipline at Gurukul Kangri Vishwavidyalaya.
Ramdev founded the Divya Yog Mandir Trust in 1995. In 2003, Aastha TV began featuring
him in its morning yoga slot. There he proved to be telegenic and gained a large following. A
large number of people, celebrities from India and abroad attended his Yoga camps. He
taught yoga to many celebrities like Amitabh Bachchan, Shilpa Shetty and in foreign countries
including Britain, the US and Japan. He also addressed Muslim clerics at their seminary
in Deoband, Uttar Pradesh. In 2006, he was invited by Kofi Annan to deliver a lecture on
poverty alleviation at a United Nations conference. Yogi Haider, considered the face of yoga
in Pakistan, says that his ambition is to popularise yoga like Ramdev Baba did in India.
He is the face and the main promoter of Patanjali. The credit of Patanjali’s success goes to
him as Patanjali has reached such heights because of his efforts and huge fan following. He
is a recipient of awards like Padma Vibushan, Sri Chandrashekharendra Saraswati National
Eminence Award to name a few. He is also the judge of a reality show 'Om Shanti Om.

Organisation Structure
The Board of Directors is formed of three founding people. Swami Acharya Balkrishnaji is
serving as the Managing Director of the company. Two other members Swami Muktanandji
and Sri Ajay Kumar Arya are also holding positions as the Directors of the company. Swami
Ramdev does not hold any position or stake in the company but does act as the Ambassador
for the entire Patanjali brand. The operations department is headed by Ramdev’s brother
Ram Bharat. Everyone else from the finance, logistics and other teams report to him He is
the informal CEO but designations are not very formalised within Patanjali. Patanjali has over
2,00,000 employees in total. They hire street-smart people and do not look for MBA
graduates only. This helps them to keep costs down while also delivering unprecedented
growth.
Organisational Culture: Building Blocks
Though Patanjali might not be regarded as a complete corporate set up, but the company
has been taking significant steps to professionalise the management and incorporating the
necessary processes and technology in the work culture. Patanjali is emerging as an
“Employer of Choice’’ as many professionals are independently coming forward to work with
the company. There any many professionals who are managing different units and have past
work experience in companies like Dabur, Shehnaz Hussain, SGH Labs, Alkem Laboratories,
etc. Patanjali is currently advertising for many positions. The company has tied up with all
major hiring agencies like naukri.com, linkedin, etc., to get the best talent from the industry to
work for it. As for the processes, the company is moving towards a KRA‐based working
system and is defining its processes and internal control systems. SAP has already been
implemented which has led to automation in majority of the processes. The company is
currently in the process of implementing ERP. Overall, the organisational culture is very
employee friendly as the company engages in a lot of training and development programmes
for its employees. It also engages in career counselling and mentoring activities.
The work culture too is unique. Everyone is greeted with an 'Om'. There are restrictions on
eating meat, smoking and drinking. However, Patanjali Ayurved boasts of a gender diversity
ratio of 30:70. Patanjali is not a great pay master though. Balkrishna said people come to
work here with a sentiment to serve. When TOI enquired about how he manages his work life
balance, as he is a workaholic who works 15 hours a day, "I enjoy it. It is like picnic for me,"
flashing a Dant Kanti smile.

2.5 REVENUES, PROFITS AND SALES DISTRIBUTION MODEL

In terms of revenues and net profit, the company has nearly grown 20 times in a span of 6
years.
Revenues For The Past 6 Year In Crores:-
Year Revenue in Crores (Rs)
2011-12 453.38
2012-13 848.56
2013-14 1191.14
2014-15 2028.03
2015-16 4819.61
2016-17 10516
Net Profits For The Past 6 Year In Crores:-
Year Net Profits in Crores (Rs)
2011-12 55.89
2012-13 91.33
2013-14 185.67

2014-15 316.60
2015-16 450
2016-17 820
Net Profits in Crores (Rs)

900
800
700
600
500
400 Net Profits in Crores
(Rs)
300
200
100
0
Sales Distribution Model:-
From The Pie Chart It Can Be Inferred That:-

 The majority (79%) of the sales is concentrated to Eatables, Beauty and Home Care.
 The sales of Beauty and Home Care Products is 39%.
 The sales of Eatables is 40% and it holds the largest share in the Model.
 Patanjali has to take efforts in the Health Care and Ayurvedic Medicines category, as
this has the least sales of 21%.
2.6 THE GROWTH OF PATANJALI
 Patanjali, which manufactures mineral and herbal products has leapt from 173 rd rank
to 15th position in the latest Brand Trust Report.
 Patanjali’ s products are widely used in the country and across the globe for its natural
and ayurvedic properties.

 Patanjali, which is run by yoga guru Baba Ramdev and Acharya Balkrishna, an
Ayurveda expert reached INR 20 billion mark in 2015.
 Patanjali, currently has three plants near Haridwar and is spread over 170 acres and
was set up in 2009 under the government’s Mega Food Park scheme. The concept of
Patanjali is based on the traditions of Ayurveda.
 Patanjali’s annual turnover for the year 2016-17 increased to Rs 10000 crores. Its
previous turnovers were of Rs 5000 crore in 2015-16, Rs 2500 crores in 2014-15, Rs
1200 crores in 2013-14, Rs 850 crores in 2012-13 and Rs 450 crores in 2011-12.
 The main aim of Patanjali is to end the dominance of multinational corporations that
have for decades been capitalising on the country’s market.
 In all, Patanjali manufactures 1000+ products.
 In Haridwar, Patanjali is set to disrupt the FMCG market, which is so far dominated by
MNCs. The company provides employment to more than 2,00,000 people.
 Patanjali owns 600 acres in Nagpur, where it will build more capacities. In addition, it
plans to set up plants in Karnataka, Assam, and Madhya Pradesh- all part of its plan to
expand capacity and increase its manufacturing footprint.
2.7 SOME FACTS, FIGURES AND EXPERT OPINIONS

 According to Layak and Singh (2015) report ‘Desi bustle v/s MNC muscle’ stating
how Ramdev’s Patanjali is setting a trend for HUL and how Baba Ramdev’s
unconventional marketing and strong follower base coupled with aggressive pricing
has helped him overtake established players in ayurvedic FMCG like Emami and
Himalaya.
 Roy, Lath and Sharma (2015) believe that strong innovation and new products
pipeline, pricing discounts to the peers, ayurvedic and natural propositions with low
A&P spends and manufacturing indigenously lend Patanjali’s products a competitive
advantage but distribution and stock outs remain a key factor. Patanjali Ayurved has
one of India’s largest food and herbal parks in the world equipped with an excellent
R&D facility and world‐class manufacturing machinery. Patanjali has completed its
revenue target of INR 10000 crores in FY 16-17 and now the management has set a
revenue target of INR 20000 crores by FY 19-20. The company has low A&P spends
which leverages Baba Ramdev’s brand pull, leads to provide its customers a discount
of 15‐30% to competition, while other companies have A&P spends ranging from 12‐
18%, as a % of sales. Even though the company’s thrust is not on profitability, the
company managed to regulate 20% EBITDA margin in FY15, supported by better cost
management which includes latest machinery and strong R&D capabilities and lower
A&P spends.
 Vyas (2015) believes Patanjali instead of outsourcing like established, listed FMCG
firms, it has flourished on a backward integration model, using large tracts of land to
cultivate and run its factories. Patanjali's revenues have more than quadrupled in the
past three years. Despite undercutting competitors, PAL's operating margin is around
20%.
 According to Pittie (2015), Patanjali is not just targeting its own distribution
Chikitsalayas, but also big retailers like Reliance Retail, Big Bazaar, Hyper City and
Star Bazaar are stocking Ramdev's FMCG products. But the real play is online. While
Patanjali's products are already available on E-Commerce sites. To allow the
consumers to locate nearby outlets that are selling Patanjali products and also to
facilitate online ordering of products, Patanjali has launched its mobile app. Patanjali
also sells its products through the Patanjali Arogya Kendras, Swadeshi Kendras and
Patanjali Chikitsalayas. The company has 10,000 franchisee model of Chikitshalyas
and Arogya Kendras and around 2 lakh outlets that are selling Patanjali products. The
company operates through 100 super distributors.
 Kumar (2014) reports that the Patanjali Mega Food Park (PMFP) has been envisaged
to help in creation of infrastructure for food processing and a ‘farm-to-plate’ supply
chain system. It helps in maximum value addition by backward and forward integration
between the farmers, factory and the market. The 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.
 Singh and Rajni (2015) reports that PAL perhaps lacks most ingredients for building a
large-scale consumer goods business, be its negligible A&P (advertising & promotion)
spends or distribution network. Yet, the brand power of a yoga guru has brought PAL
into the top league.
 Rani & Shukla (2012) analysed the trends of Patanjali products that have increased
from 2008 to 2011.The Patanjali Ayurvedic Kendra in Pantnagar was started with 26
Patanjali products. These 26 products includes 13 products in medicinal, 9 products in
food and 4 products in cosmetic category. In 2008 total 63 products were available at
Patanjali Ayurvedic Kendra out of which 34 were medicinal, 22 were food and 7 were
cosmetic products followed with an addition of 22 products during 2009. Till 2012 there
were 120 products available among which 44 are medicinal, 34 are food and 55 are
cosmetic which says an increase of total 94 products in just 4 years
 A study conducted in 2012 mentioned the following drawbacks of Patanjali’s : A

number of limitations perceived by customers, associated with products acted as
barriers in consumer decision making process and also affected consumer behaviour.
Data showed that the problem of shortage of products on retail outlet as the major
limitation as reported by the majority of respondents (88.88%). Only one retail outlet in
Pantnagar market was another limitation and reported by 63.33 percent respondents.
No home delivery (43.33%) and no any other alternative (36.66%) were also an issue
till 2012.Consumers of Patanjali products also suggested to improve consumer
acceptability (51.11%). Consumers suggested that Patanjali should provide the
detailed information about eve-products. 48.88% suggested improving the delivery
system. About 44% consumers suggested maintaining the regular delivery of
products. More advertisement (41.11%) and clarity in advertisement (37.77%)

regarding the product attributes were other suggestions given by the consumers. It
was suggested by 30% consumers that Patanjali should pack the products especially
juice in small amount in order to improve consumer acceptability. Easy availability of
products at retail shops by 28.88% consumers whereas 21.11% consumers suggested
reducing the cost of some cosmetic products like cream, cleanser, etc. There were 18-
19% respondents who suggested to increase production of products.
 Patanjali’s products have captured a huge lot of consumers within a short span of
time, providing its loyal customers with exclusive quality and reduced price products. It
has grown during these years with its excellent R&D facility, latest machinery, better
cost management and high tech infrastructure by constructing India’s largest Food and
Herbal Park. It has also established its market online, giving a stiff competition to other
FMCG companies. The trend of Patanjali products have increased tremendously with
few limitations of non-availability of products at retail stores, less number of retail
outlets available and its irregular delivery system. Despite of its great demand,
company is still inefficient in its production and supply chain management. The
company is working on plugging the gaps in the supply chain and distribution and
plans to implement ERP for better inventory management and consolidate its online
presence. The company has worked on its objective of empowering farmers
economically. In upcoming years, due to its herbal base products, the company might
also leverage some tax exclusion under government policies leading to an increase in
its profits and decreased prices of products. The main marketing tool of the company
is its good image after spirituality and the idea of selling its products under the name of
Swami Ramdev. Since Patanjali has its production in house, it gives it a competitive
advantage over MNC’s like HUL, P&G, NESTLE etc.
 In a 57-page report released in January 2017, IIFL (India Infoline) said, “Patanjali
Ayurved Ltd has, in a short span of less than a decade, recorded a turnover higher
than what several companies have managed to achieve over several decades. There
is no doubt that Patanjali is a disruptive force in the FMCG space and is a credible
threat for the incumbents.” IIFL is of the view that the growing appeal of ayurvedic and
‘natural’ products, along with factors like low price and allowing consumers to express
Indianess in an increasingly nationalistic environment, will help Patanjali achieve sales
of Rs.20,000 crore by FY20. IIFL states that Patanjali’s highest impact will be on

CHAPTER III
3.1 HYPOTHESIS
1) Based on demographic data, is there any specific demand pattern which can be
observed?
 H1 :- According to the Demographics, the maximum demand is by consumer in the

age group of 46-60 and more than 60.
 H2 :- The main cause of the demand and liking for Patanjali products is:-
 Low Price
 Good quality
 It is Herbal
2) The level of Consumer Satisfaction observed ?
 H3 :- The level of consumer Satisfaction is neutral (3 on a scale of 1-5, 5 being

Extreme Satisfaction)
3.2 ASSUMPTIONS
 All the questions were well understood by the respondents.
 All the answers are filled honestly by the respondents.
 There was no biased opinion on the part of the respondents while filling the form.
 There was no external influence on the respondents while filling the form.

3.3 RESEARCH DESIGN AND METHODOLOGY
 Research Design:- In this paper we have used applied research as data source and
application is on day-to-day basis. The research is based on data collected through a
survey which makes it descriptive in objectivity and conclusive in nature.
 Sampling Design:- A convenient random sample was chosen as respondents varied

from students, young professionals and senior citizens.
 Sample Size:- Population sample size of 110 respondents were taken.
 Area of Study:- The study covered respondents from Mumbai and Navi Mumbai.
 Period of Study:- The study was conducted for one month, from 20th August to 20th
September, 2017.
 Research Methodology:- The research is based on Primary and Secondary Data.
 Data Collection:- Data was collected through primary as well as secondary sources.
For primary data collection, a survey was conducted through a Questionaire form.
Secondary data was collected through referring Websites, Journals and
News paper Articles.
 Primary Data:- With a view to assimilating first-hand information, a questionnaire was

tailored both with qualitative and quantitative questions. The questionnaire was
administered to as many as 110 respondents.
 Secondary Data: Secondary data was obtained mainly through referring Websites,
journals and News paper Articles.
 Techniques used for Data Collection:

1) Questionnaire
2) The Rating Scale
3) Multiple choice questions

CHAPTER IV
4.1 INDUSTRY ANALYSIS
The FMCG market in India is worth $49 billion USD as of January, 2016 and is expected to
grow to $103.7 billion USD by 2020.5 It is the India’s fourth largest industry. The growing
awareness, rising disposable income of the masses and easier access are the key drivers of
demand growth. There is also an increased demand for premium products because of the
growing youth population. The penetration into rural areas is increasing and thus newer
geographies are made into playgrounds for the myriad FMCG companies. The FMCG
industry has three main segments: Food and beverages (18%), Health care (32%) and
Household and personal care (50%).
The FMCG sector has witnessed a CAGR of 11.9% between 2007 and 2016. The urban
sector account for 65% of the revenues, while the semi-urban and rural make up the rest
35%.6. The current trends in FMCG are product innovation (e.g. Honitus: non-drowsy),
product customization/mass customization, backward integration, outsourcing, increasing

rural penetration, outsourcing, expanding distribution networks, smaller sized SKUs,

increasing private label penetration and reducing carbon footprint.
4.2 MICHAEL PORTER’S 5 FORCES ANALYSIS OF FMCG

INDUSTRY
Bargaining Power Of Buyers (Customers):- HIGH
The switching cost is very low in case of FMCG products. FMCG market is extremely
competitive and hence every company fights to get the largest shelf space at the most
strategic locations to have greater visibility. On the contrary, the products are low
involvement products and are not highly differentiated. Thus they ask for higher margins to
stock the products. For the customer, he/she has a wide array of choices. The Indian

customer is price-sensitive as well. So unless he/she sees value in the products or are given
discounts it would be difficult to persuade him/her to purchase. In such a setup, the customer
has higher bargaining power.
Bargaining Power Of Suppliers :- LOW
They have typically low bargaining power, Big FMCG companies have more power in
deciding the pricing structure when they source from local farmers or fragmented commodity
supplier groups. The FMCG companies are also moving towards backward integration with
farmers so as to capture a larger part of the value chain. They provide the expertise to these
farmers and in return are able to source raw materials at cheaper prices. Finally the big
FMCG companies are also signing MOUs with local government to source items at fair prices
from the farmers.
Threat Of Substitutes:- HIGH
There are a lot of brands and hence an equal number of offerings from each brand. The
product differentiation is not superb and thus commoditization is not uncommon. Thus threat
of substitutes is quite high since there are a huge number of products in the same category.
Besides, the switching cost are nil. The only concern is the availability of products in
particular channels.
Threat Of New Entrants:- MEDIUM
Barriers to entry is quite high since it requires significant capital investment in setting up
distribution networks and brand promotion.The existing distribution channels are already
being used by the current players. The economies of scale can be leveraged by only a few
with expertise. The established brands do a lot of marketing to build brand equity and thus it
will be difficult to beat them in their game. Unsustainable prices cannot be offered as the
newer companies do not have so much money to spare on promotion.
Competitive Rivalry: HIGH
The competitive rivalry is very high as the private label brands give heavy discounts
compared to the established brands. Thus the weak players are ousted from the market.
There are a huge number of players as the market is highly fragmented. More MNCs are also
coming to join the competition. The established brands do a lot of branding to demand higher
prices. So it is difficult to gain market share in any category.

CONCLUSION:-
Thus the overall industry is only mildly attractive for new entrants because of the huge
investment and marketing costs. However Porters five forces have a weakness as it
undermines the core competencies of the company which it may utilize to earn profits.
4.3 MANUFACTURING AND R&D
Patanjali has its main production plant or rather the headquarters in Haridwar. It has world
class state-of-the-art facility where all the products are manufactured. This is valuable
because most of the products are produced here. The value comes not from just producing
but from producing natural and herbal products. In a sense, it is rare as well, as the scale of
production of ayurvedic or herbal products is unprecedented. However, this is neither costly
nor inimitable. But it is non-substitutable since the production cannot take place at such a
scale without the plant. Thus it is a source of competitive advantage for Patanjali.
As far as manufacturing is concerned, Patanjali does 90% manufacturing in‐house. However,

going ahead to meet demand and therefore enhance capacity it is open to even third‐party
manufacturing or opening new plants. The company has zero waste technology wherein
whatever is left after usage of the raw material is further processed for further usage.

Patanjali Food And Herbal Park:- One Of The Biggest World Class Facility
Patanjali Food and Herbal Park is one of the largest food park in the world spread over 150
acres. Construction of the park was completed in record time of 10 months and the park has
been in operation for over 5 years now (park construction started in Feb 2009 and it started
operations in January 2010). Patanjali has 3 manufacturing units in Haridwar. It is a world
class plant equipped with the best machinery installed by companies like Tetra Pack, Alfa
Laval etc.

Application Of Technology And Know-How Of Ayurveda
The raw materials for all Patanjali products are derived from Ayurveda and are naturally
available. The herbs, and the knowledge about the medicinal benefits and how to mix these
herbs to arrive at the magic product is something Patanjali has expertise in. This makes the
resource valuable and rare. The competitors like Dabur and other brands which do produce
herbal products do not do so at such a large scale. It is inimitable and non-substitutable as
there are no solutions to this. You have to know the formulation to be able to produce them.
Patanjali is privy to all the secrets of Ayurveda and thus has a competitive advantage over
other brands.
Robust R&D Ensures Quality And New Product Development
Patanjali’s R&D facility is well equipped with all the latest machinery necessary for testing the
products. The company has a separate R&D department for each of the production units
where the manufactured products are tested. The company also has a high‐end central R&D

facility situated at the park. This facility ensures the products meet high quality standards and
is undertakes R&D for new product development.
Future Plan Of Expansion As Shared With TOI Dated March 17, 2016
If the breakneck speed at which Patanjali Ayurved is growing is not enough of a bad news for
established FMCG companies in the country, there is more in the pipeline. Baba Ramdev's
company is on course to set up four more manufacturing units across India within the next
couple of years, giving every FMCG company in the country a run for their money.
In addition, it is also setting up a dairy facility for cow milk in Ahmednagar in Maharashtra to
mark its foray into packaged milk. "We are in talks to set up a plant in Maharashtra. We are
also in talks to set up units in Madhya Pradesh and Punjab. We are also planning (a
manufacturing unit) in Andhra Pradesh," said Acharya Balkrishna, MD, Patanjali Ayurved.
Speaking in chaste Hindi for over an hour and a half, the founder-director of Patanjali
Ayurved discussed the company's growth plans in detail with TOI.
The company has earmarked Rs 1,000 crore for its expansion projects in the next financial
year. The funds, which will be used for the new units, are a mix of internal accruals and bank
loans from SBI and Punjab National Bank. Patanjali Ayurved has already ordered
machineries and is in the process of buying land in these states. During the 'Make In India'
week in February, the company signed an agreement with Maharashtra to set up a unit in the
state.
Patanjali Ayurved is expanding into these states so that it can easily source its raw materials.
"In Maharashtra, we are particularly interested because Vidarbha and Marathwada are in our
sights. We can source raw materials from the farmers directly," Balkrishna said.
At present, the company has its only manufacturing unit near this holy town in Uttarakhand,
which was started 10 years ago and over the years has expanded into a 150-acre facility.

Interestingly, it's a conscious decision on the part of the company to not expand in
Uttarakhand where it already employs about 10,000 people, largely locals.
One of the main reason is government apathy. "We don't want to expand in Uttarakhand
anymore. They (the administration) have created a lot of problems for us politically. We will
go to other states," Balkrishna said. Without detailing the problems which were created by the
government, he said, "They create situations not conducive for business."
On Patanjali's foray into the dairy business, the senior official said that it's already present in
the whole milk powder segment, and now plans to enter the cow milk segment. "We have
bought a plant in Ahmednagar in Maharashtra.It is a new plant with a capacity of 12 lakh
litres per day, but it is currently shut. We will have to invest a lot of money in it since we are
planning a capacity of 70-80 lakh litres," Balkrishna said.
So is Patanjali Ayurved setting up manufacturing units only in NDA-ruled states? "No, there's
nothing like that," Balkrishna said. The company's top deciding factor to set up a unit is the
availability of raw materials, which is critical to its affordable pricing strategy. "In Maharashtra,
for instance, let any party rule politically, because it's a big state and a big thought, there is a
huge farm belt. MP, too, has the same situation," he said. Balkrishna said that he is willing to
set up a unit , provided it offers abundant raw materials for Patanjali's products.
4.4 4 Ps OF MARKETING
4.41 PRODUCT

Patanjali boasts of having 1000+ products in majorly 5 categories like Homecare, Beauty
Care, Healthcare, Food and Ayurvedic medicines. Most of the products are manufactured by
Patanjali and are herbal and naturally made. The major reason for the success of Patanjali
products is it being of good quality at affordable prices.
Aspires To Be Part Of Every SKU In Kitchen:-
Patanjali is working on a kitchen concept, as part of which it will launch products that will
touch all categories of the SKUs used in an Indian kitchen. For instance, the company
already has products that are used in the Indian kitchen such as dishwash bar, ghee, rice
(has 3 variants of rice), pulses, spices, mustard oil, flour and madhuram (replacement for
sugar made out of jaggery) under the Patanjali brand name .
Product catalogue
Health Care

Price
Type Products Weight
(Rs)
Badam Pak 250 gm 130 Rs

Badam Pak
Badam Pak 500 gm 250 Rs
Chyawanprash 1 kg 190 Rs
Special Chyawanprash 1 kg 250 Rs

Chyawanprash
Special Chyawanprash 500 gm 130 Rs
Pachak Ajwain 100 gm 46 Rs
Pachak Anardana Goli 100 gm 35 Rs
Pachak Chhuhara 100 gm 45 Rs
Pachak Hing Goli 100 gm 55 Rs
Pachak Hing Peda 100 gm 35 Rs
Digestives Pachak Hing Peda 200 gm 60 Rs
Pachack Jal Jeera 200 gm 60 Rs
Pachak Jeera Khatti Mithi Goli 100 gm 35 Rs
Pachak Methi Nimbu 100 gm 32 Rs
Pachak Shodhit Harad 100 gm 35 Rs
Jamun Vinegar (L) 570 gm 65 Rs

Gulab Sharbat (L) 750 gm 100 Rs
Litchi Drink 65 ml 5 Rs
Fruit Juice
Orange Squash 750 ml 75 Rs
Patanjali Mango Drink 65 ml 5 Rs
Desi Ghee 500 gm 270 Rs

Ghee
Desi Ghee 1 kg 510 Rs
Amrit Rasayana 500 gm 85 Rs
Amrit Rasayana 1 kg 160 Rs
Ashvagandha Capsule 5 gm 50 Rs
Ashvashila (capsule) 5 gm 70 Rs
Health & Wellness Gulkand 400 gm 55 Rs
Isabgol Bhusi 100 gm 90 Rs
Kesar 1 gm 285 Rs
Musli Pak 200 gm 350 Rs
Shilajeet Capsule 5 gm 85 Rs
Shilajeet Rasayan 20 gm 35 Rs
Shilajeet Rasayan 40 gm 70 Rs
Shilajeet Sat 20 gm 100 Rs
Patanjali Power Vita 500 gm 205 Rs
Patanjali Cow’s Whole Milk Powder 200 gm 65 Rs

Health & Wellness
Badam Rogan 60 ml 110 Rs
Balm 25 gm 40 Rs
Shatavar Churna 100 gm 90 Rs
Youvan Churna 100 gm 200 Rs
Aloe Vera Juice With Orange Flavour (L) 1 ltr 200 Rs
Health Drinks Aloevera Juice With Fiber (L) 1 ltr 180 Rs
Amla Aloevera Juice with Lichi Flavour 70 gm 5 Rs

Amla Juice (L) 500 ml 55 Rs
Amla Juice (L) 1100 gm 100 Rs
Arjun Amla Juice 500 ml 80 Rs
Giloy Juice 500 gm 80 Rs
Giloy Amla Juice 500 ml 90 Rs
Karela Amla Juice (L) 570 gm 75 Rs
Lauki Amla Juice (L) 1 kg 90 Rs
Thandai Powder 500 gm 190 Rs
Tulsi Panchang Juice 570 gm 90 Rs
Pure Honey Multiflora 250 gm 75 Rs

Honey
Pure Honey 250 gm 70 Rs
Grocery
Type Products Weight Price /
Marie Biscuits 120 gm 12 Rs

Biscuits & Cookies
Nutty Delite 100gm 15 Rs

Patanjali Doodh Biscuits 50gm 5 Rs
Patanjali Doodh Biscuits 100 gm 10 Rs
Nariyal Biscuit 100 gm 10 Rs
Nariyal Biscuit 300 gm 30 Rs
Orange Delite Biscuits 75 gm 10 Rs
Elaichi Biscuit 75 gm 10 Rs
Aarogya Biscuit 100 gm 10 Rs
Bandhani Hing 10 gm 20 Rs
Bandhani Hing 25 gm 40 Rs
Black Pepper Powder 100 gm 125 Rs
Black Pepper Whole 100 gm 120 Rs
Chaat Masala 100 gm 36 Rs
Choley Masala 100 gm 45 Rs
Coriander Powder 100 gm 30 Rs
Spices Cumin Whole 100 gm 40 Rs
Fenugreek Whole 100 gm 20 Rs
Garam Masala 100 gm 65 Rs
Red Chilli Powder 200 gm 60 Rs
Sabzi Masala 100 gm 38 Rs
Turmeric Powder 100 gm 24 Rs
Turmeric Powder 200 gm 43 Rs
Ajowan 100 gm 38 Rs

Amla Candy 500 gm 140 Rs
Candy Amla Chatpata 500 gm 145 Rs
Bel Candy 500 gm 140 Rs
Mango Candy 250 gm 55 Rs
Divya Peya 100 gm 50 Rs

Herbal Tea
Divya Herbal Pey 50 gm 70 Rs
Mix Fruit Jam 500 gm 70 Rs
Jam Pineapple Jam 500 gm 70 Rs
Guava Jam 500 gm 150 Rs
Amla Murraba 1 kg 120 Rs
Apple Murraba 1 kg 140 Rs

Murabba
Bel Murabba 1 kg 110 Rs
Harad Murabba 1 kg 115 Rs
Chocolate Soan Papdi 250 gm 160 Rs
Elaichi Soan Papdi 500 gm 105 Rs

Soan Papdi
Elaichi Soan Papdi 250 gm 55 Rs
Orange Soan Papdi 250 gm 55 Rs

Sugar Madhuram Sugar Jaggery Powder 1 kg 60 Rs
Barley Dalia 500 gm 30 Rs
Broken Cereals Wheat Dalia 500 gm 22 Rs
Pushtahar Dalia 500 gm 40 Rs
Gram Flour Patanjali Besan 500 gm 90 Rs
Amla Pickle 1 kg 95 Rs
Lemon Pickle 400 gm 65 Rs

Pickle
Tomato Ketchup 500 gm 70 Rs
Apple Chutne 500 gm 70 Rs
Mustard Oil Kachi Ghani Mustard Oil (L) 950 gm 135 Rs
Choco Flakes 125 gm 55 Rs
Corn Flakes Corn Flakes Mix 250 gm 85 Rs
Corn Flakes Mix 500 gm 145 Rs
Unpolished Rajma (chitra) 1 kg 100 Rs

Pulses
Unpolished Chana 1 kg 58 Rs

Unpolished Arhar Dal 1 kg 88 Rs
Unpolished Chhole 1 kg 65 Rs
Basmati Rice Diamond 1 kg 145 Rs
Basmati Rice Diamond 5 kg 700 Rs
Rice Basmati Rice Gold 1 kg 110 Rs
Basmati Rice Gold 5 kg 510 Rs
Basmati Rice Silver 1 kg 75 Rs
Basmati Rice Silver 5 kg 360 Rs
Atta Noodles 70 gm 15 Rs
Noodles Atta Noodles Chatpata 60 gm 10 Rs
Atta Noodles Classic 60 gm 10 Rs
Bura Patanjali Bura 1 kg 65 Rs
Oats 200 gm 35 Rs
Oats
Oats 500 gm 75 Rs
Medicine

Type Products Weight Price
Dashmool Kwath 100 gm 20 Rs
Giloya Kwath 200 gm 20 Rs
Jwarnashak Kwath 100 gm 45 Rs
Kayakalp Kwath 100 gm 40 Rs
Medha Kwath 100 gm 50 Rs

Kwath
Mulethi Kwath 100 gm 30 Rs
Nirgundi Kwath 100 gm 15 Rs
Peedantak Kwath 100 gm 30 Rs
Phal Ghrit 200 gm 330 Rs
Parijat Kwath 100 gm 15 Rs
Sarvkalp Kwath 100 gm 25 Rs
Swasari Kwath 100 gm 50 Rs
Totala Kwath 100 gm 20 Rs

Vrikkdoshhar Kwath 100 gm 40 Rs
Arogya Vati 40 gm 60 Rs
Arogyavardhani Vati 20 gm 40 Rs
Arogyavardhani Vati 40 gm 80 Rs
Arshkalp Vati 20 gm 35 Rs
Arshkalp Vati 40 gm 65 Rs
Chandraprabha Vati 20 gm 40 Rs
Chandraprabha Vati 40 gm 80 Rs
Vati Chandraprabha Vati 60 gm 120 Rs
Chitrakadi Vati 20 gm 50 Rs
Giloy Ghanvati 40 gm 90 Rs
Hridyamrit Vati 20 gm 100 Rs
Hridyamrit Vati 40 gm 200 Rs
Jwarnashak Vati 20 gm 45 Rs
Kayakalp Vati 20 gm 70 Rs
Kayakalp Vati 40 gm 140 Rs
Khadiradi Vati 20 gm 45 Rs
Kutajghan Vati 20 gm 50 Rs
Lavangadi Vati 20 gm 40 Rs
Vati
Madhukalp Vati 40 gm 60 Rs
Maha Sudarshan Vati 20 gm 80 Rs
Medha Vati 20 gm 80 Rs

Medha Vat 40 gm 160 Rs
Medohar Vati 50 gm 80 Rs
Madhunashini 60 gm 200 Rs
Madhu Kalp Vati 40 gm 60 Rs
Mukta Vati 120 gm 190 Rs
Neem Ghan Vati 40 gm 90 Rs
Peedantak Vati 20 gm 45 Rs
Peedantak Vati 40 gm 90 Rs
Punarnavadi Mandur 20 gm 30 Rs
Punarnavadi Mandur 40 gm 60 Rs
Putrajeevak Beej 200 gm 75 Rs
Raj Pravartani Vati 20 gm 50 Rs
Sanjivani Vati 20 gm 40 Rs
Sanjivani Vati 40 gm 80 Rs
Sarivadi Vati 20 gm 60 Rs
Stri Rasayan Vati 20 gm 50 Rs
Stri Rasayan Vati 40 gm 95 Rs
Tulsi Ghanvati 40 gm 90 Rs
Vati
Udramrit Vati 20 gm 30 Rs
Udramrit Vati 40 gm 60 Rs
Vistindukadi Vati 20 gm 40 Rs
Vriddhivadhika Vati 20 gm 40 Rs
Vriddhivadhika Vati 40 gm 80 Rs

Vrikkdoshhar Vati 20 gm 60 Rs
Younamrit Vati 5 gm 250 Rs
Abhrak Bhasm 5 gm 20 Rs
Godanti Bhasm 5 gm 5 Rs
Godanti Bhasm 10 gm 10 Rs
Bhasma Hajrul Yahud Bhasm 5 gm 15 Rs
Hirak Bhasm 300 mg 720 Rs
Kapardhak Bhasm 5 gm 10 Rs
Kapardhak Bhasm 10 gm 20 Rs
Kasis Bhasm 5 gm 15 Rs
Kulya Mishran 10 gm 75 Rs
Lauh Bhasm 5 gm 15 Rs
Makar Dhwaj 2 gm 85 Rs
Mandur Bhasm 5 gm 15 Rs
Mukta Sukti Bhasm 5 gm 15 Rs
Bhasma Mukta Sukti Bhasm 10 gm 30 Rs
Rajat Bhasm 2 gm 200 Rs
Saptamrit Lauh 10 gm 20 Rs
Shankh Bhasm 5 gm 5 Rs
Shankh Bhasm 10 gm 10 Rs
Sphatik Bhasm 5 gm 10 Rs
Tamra Bhasm 1 gm 25 Rs

Tamra Sindoor 1 gm 25 Rs
Tankan Bhasm 5 gm 5 Rs
Trivang Bhasm 5 gm 25 Rs
Vang Bhasm 5 gm 25 Rs
Ajmodadi Churna 100 gm 60 Rs

Churna
Amla Churna 100 gm 30 Rs
Ashwagandha Churna 100 gm 60 Rs
Avipattikar Churna 100 gm 50 Rs
Baheda Churna 10 gm 6 Rs
Bakuchi Churna 50 gm 25 Rs
Bilwadi Churna 100 gm 45 Rs
Brahmi Churna 100 gm 30 Rs
Divya Churna 100 gm 50 Rs
Churna Gashar Churna 100 gm 85 Rs
Haridrakhand 100 gm 70 Rs
Haritki Churna 100 gm 35 Rs
Kutki Churna 50 gm 115 Rs
Lavan Bhaskar Churna 100 gm 65 Rs
Mulethi Churna 100 gm 45 Rs
Naag Kesar Churna 100 gm 90 Rs
Panchkol Churna 50 gm 40 Rs

Pushyanug Churna 100 gm 55 Rs
Sitopaladi Churna 10 gm 10 Rs
Sitopaladi Churna 25 gm 25 Rs
Shatavar Churna 100 gm 90 Rs
Swet Mushli 100 gm 325 Rs
Shuddh Konch Beej Churan 100 gm 45 Rs
Trikatu Churna 10 gm 15 Rs
Trikatu Churna 25 gm 35 Rs
Churna
Triphala Churna 100 gm 25 Rs
Udarkalp Churna 100 gm 50 Rs
Vatari Churna 100 gm 55 Rs
Youvan Churna 100 gm 200 Rs
Gokshuradi Guggul 20 gm 30 Rs
Gokshuradi Guggul 40 gm 70 Rs
Kaishore Guggul 20 gm 30 Rs
Kaishore Guggul 40 gm 60 Rs
Kanchnar Guggul 20 gm 35 Rs
Guggul
Kanchnar Guggul 40 gm 70 Rs
Lakshadi Guggul 20 gm 40 Rs
Mahayograj Guggul 20 gm 55 Rs
Mahayograj Guggul 40 gm 110 Rs
Saptvisanti Guggul 20 gm 50 Rs

Singhnad Guggul 20 gm 30 Rs
Singhnad Guggul 40 gm 60 Rs
Trayodshang Guggul 20 gm 30 Rs
Triyodshang Guggul 40 gm 60 Rs
Guggul
Triphla Guggul 20 gm 35 Rs
Triphla Guggul 40 gm 70 Rs
Yograj Guggul 20 gm 30 Rs
Yograj Guggul 40 gm 60 Rs
Ekangveer Ras 5 gm 30 Rs
Kamdudha Ras 5 gm 20 Rs
Kamdudha Ras 10 gm 40 Rs
Kumar Kalyan Ras 1 gm 1000 Rs
Laxmi Vilas Ras 20 gm 60 Rs
Parpati / Ras Laxmi Vilas Ras 40 gm 120 Rs
Mahawat Vidhwansan 5 gm 30 Rs
Ras Manikya 1 gm 10 Rs
Ras Raj Ras 1 gm 515 Rs
Ras Sindoor 1 gm 15 Rs
Shila Sindoor 1 gm 25 Rs
Swarna Vasant Malti 1 gm 315 Rs
Parpati / Ras Swasari Ras 10 gm 15 Rs
Swarna Makshik 5 gm 20 Rs

Tal Sindoor 1 gm 25 Rs
Swet Parpati 5 gm 10 Rs
Tribhuvankirti Ras 20 gm 50 Rs
V.V.Chintamani Ras 1 gm 500 Rs
Vasant Kusmakar Ras 1 gm 370 Rs
Yogender Ras 1 gm 815 Rs
Anu Taila 100 ml 60 Rs
Bala Taila 100 ml 130 Rs
Kayakalp Taila 100 ml 70 Rs
Ksirbala Taila 100 ml 135 Rs
Mahamash Taila 100 ml 210 Rs

Oil
Prasarini Taila 100 ml 150 Rs
Saindhavadi Taila 100 ml 75 Rs
Sahacharadi Taila 100 ml 180 Rs
Somraaji Taila 100 ml 60 Rs
Triphaladi Taila 100 ml 145 Rs
Godhan Ark Godhan Ark (L) 480 gm 40 Rs
Jahar Mohra Pishti 5 gm 20 Rs
Pishti Kaharava Pishti 5 gm 40 Rs
Mukta Pishti 2 gm 60 Rs

Mukta Pishti 3 gm 90 Rs
Praval Panchamrit 5 gm 80 Rs
Praval Pishti 5 gm 30 Rs
Praval Pishti 10 gm 60 Rs
Sangeyasav Pishti 5 gm 15 Rs
Giloy Sat 5 gm 25 Rs
Giloy Sat 10 gm 50 Rs
Abhayarishta (L) 500 gm 75 Rs
Arjunarishta (L) 500 gm 80 Rs
Ashokarishta (L) 450 ml 75 Rs
Ashwagandharista (L) 500 gm 100 Rs

Arishta
Dashmularishta (L) 500 gm 105 Rs
Khadirarishta (L) 500 gm 75 Rs
Kutjarishta (L) 500 gm 60 Rs
Punarnavarishta (L) 500 gm 60 Rs
Sarswatarishta (L) 500 gm 105 Rs
Arvindasava (L) 270 gm 55 Rs
Kumaryasava (L) 500 gm 75 Rs
Asava Lohasava (L) 530 gm 85 Rs
Mahamanjishthadi Kwath (pravahi) (L) 500 gm 75 Rs
Patrangasava (L) 500 gm 85 Rs

Ushirasava (L) 500 gm 65 Rs
Vidangasava (L) 500 gm 60 Rs
Divya Dhara 10 ml 30 Rs
Liv D 38 Syrup (l) 280 gm 75 Rs
Liv D 38 Tablet 40 gm 70 Rs
Syrup
Pradarsudha Syrup (for Leucorrhea) 200 ml 75 Rs
Pradarsudha Syrup (for Menorrhagia) 210 gm 80 Rs
Swasari Pravahi 250 gm 50 Rs
Home Care
Type Products Weight Price /
Madhuram Amber 25 gm 20 Rs
Madhuram Jasmine 28 gm 20 Rs
Agarbatti
Madhuram Konark 24 gm 20 Rs
Madhuram Lavender 28 gm 20 Rs

Madhuram Meditation 28 gm 20 Rs
Madhuram Oudh 25 gm 20 Rs
Madhuram Rose 28 gm 20 Rs
Madhuram Sandal 28 gm 20 Rs
Madhuram Utsav 24 gm 20 Rs
Madhuram Vangandha 24 gm 20 Rs
Agarbatti
Madhuram White Flower 25 gm 20 Rs
Madhuram Yajna Sugandham 25 gm 20 Rs
Dish Wash Ba Super Dish Wash Bar 175 gm 10 Rs
Hawan Samagri Divya Hawan Samagri 500 gm 50 Rs
Personal Care
Type Products Weight Price
Body Ubtan 100 gm 60 Rs
Body Care Lip Balm Strawberry 10 gm 25 Rs
Gulab Jal 120 gm 30 Rs

Herbal Suhag Teeka 3 gm 75 Rs
Peedantak Oil 100 gm 60 Rs
Switraghan Lep 100 gm 40 Rs
Aquafresh Body Cleanser 75 gm 24 Rs
Haldi Chandan Kanti Body Cleanser 75 gm 13 Rs
Haldi Chandan Soap 150 gm 25 Rs
Kanti Almond Kesar 75 gm 19 Rs
Kanti Aloevera 75 gm 13 Rs
Soaps
Kanti Aloevera 150 gm 25 Rs
Kanti Neem 75 gm 15 Rs
Kanti Panchgavya 75 gm 13 Rs
Kanti Rose 75 gm 19 Rs
Lemon Honey Kanti 75 gm 19 Rs
Lemon Body Cleanser 125 gm 45 Rs
Mogra Body Cleanser 75 gm 25 Rs
Multani Mitti Body Cleanser 75 gm 35 Rs

Soaps
Ojas Aquafresh 75 gm 24 Rs
Patanjali Mint Tulsi 75 gm 24 Rs
Patanjali Rose Body Cleanser 125 gm 45 Rs
Saundarya Cream Body Cleanser 75 gm 13 Rs

Saundarya Mysore Super 100 gm 35 Rs
Coconut Hair Wash 150 ml 95 Rs
Conditioner Damage Control 100 gm 60 Rs

Conditioner
Hair Conditioner Colour Protection 120 gm 60 Rs
Herbal Mehand 100 gm 35 Rs
Drishti Eye Drop 15 ml 25 Rs
Eye Care Herbal Kajal 3 gm 90 Rs
Mahatrifala Ghrit 200 gm 380 Rs
Skin Care Aloevera Gel 60 ml 40 Rs
Aloevera Gel 150 ml 80 Rs
Aloevera Moisturizing Cream 50 gm 75 Rs
Anti Wrinkle Cream 50 gm 150 Rs
Beauty Cream 50 gm 70 Rs
Boro Safe 50 gm 40 Rs
Face cream
Moisturizer Cream 50 gm 75 Rs
Kanti Lep 50 gm 70 Rs
Saundarya Anti Aging Cream 15 gm 300 Rs
Saundarya Swarn Kanti Fairness

15 gm 399 Rs
Cream
Sun Screen Cream 50 gm 100 Rs

Honey Orange Face Wash 60 gm 45 Rs
Face wash Neem Tulsi Face Wash 60 gm 45 Rs
Orange Aloevera Face Wash 60 gm 45 Rs
Lemon Honey Face Wash 60 gm 45 Rs
Face wash Rose Face Wash 60 gm 45 Rs
Saundraya Face Wash 60 gm 60 Rs
Apricot Face Scrub 60 gm 60 Rs
Face Pack Multani Mitti 60 gm 60 Rs

Face pack
Neem Aloevera With Cucumber Face

60 gm 60 Rs
Pack
Foot cream Crack Heal Cream 50 gm 60 Rs
Herbal Shaving Cream 100 gm 55 Rs
Shave Gel 50 gm 40 Rs
Shaving Cream
Patanjali Activated Carbon Facial

60 gm 60 Rs
Foam
Kesh Kanti Anti Dandruff Hair

200 gm 110 Rs
Cleanser
Shampoo Kesh Kanti Anti Dandruff Pouch 10 gm 3 Rs
Kesh Kanti Milk Protein Hair Cleanser

10 gm 3 Rs
(Pouch)

Kesh Kanti Milk Protein 200 gm 95 Rs
Kesh Kanti Natural 200 gm 75 Rs
Kesh Kanti Reetha 200 gm 85 Rs
Kesh Kanti Reetha Hair Cleanser

10 gm 3 Rs
(Pouch)
Shampoo
Kesh Kanti Shikakai 200 gm 95 Rs
Kesh Kanti Aloe Vera Hair Cleanser 200 gm 75 Rs
Almond Oil 100 gm 50 Rs
Amla Hair Oil 100 gm 40 Rs
Coconut Hair Oil 210 gm 65 Rs
Kayakalp Taila 100 gm 70 Rs

Oil
Kesh Kanti Hair Oil 120 gm 130 Rs
Patanjali Kesh Kanti Oil 300 ml 250 Rs
Sheetal Oil 100 ml 55 Rs
Tejus Tailum 100 gm 60 Rs
Dant Kanti 25 gm 10 Rs
Dant Kanti 100 gm 40 Rs
Toothpaste Dant Kanti 200 gm 75 Rs
Dant Kanti Junior 100 gm 35 Rs
Dant Kanti Medicated 100 gm 45 Rs

Dant Kanti Advanced 100 gm 90 Rs
Active Care Tooth Brush 70 gm 20 Rs
Curvy Tooth Brush 50 gm 15 Rs
Junior Tooth Brush 20 gm 15 Rs
Tooth brush Sensitive Tooth Brush 22 gm 30 Rs
Soft Tooth Brush 30 gm 10 Rs
Tooth Brush 10 gm 8 Rs
Triple Action Tooth Brush 90 gm 25 Rs
Tooth powder Divya Dant Manjan 100 gm 65 Rs
Detergent Cake Popular 120 gm 6 Rs
Detergent Cake Popular 250 gm 12 Rs

Detergent Cake
Detergent Cake Superior 125 gm 8 Rs
Detergent Cake Superior 250 gm 16 Rs
Detergent Powder Popular 250 gm 13 Rs
Detergent Powder Popular 500 gm 24 Rs
Detergent Powder Popular 1 kg 46 Rs

Detergent Powder
Detergent Powder Superior 250 gm 17 Rs
Detergent Powder Superior 500 gm 33 Rs
Detergent Powder Superior 1 kg 65 Rs

Detergent Powder Ujjwal 250 gm 17 Rs
Somya Liquid Detergent 500 ml 80 Rs
Hand Wash 250 ml 55 Rs

Hand Wash
Hand Wash Almond Kesar 175ml 90 Rs
Hand Wash Refil Pack 200 ml 40 Rs
Olive Hand Wash 175ml 90 Rs
Shishu Care Body Lotion 100 ml 85 Rs
Shishu Care Body Wash Gel 100 ml 75 Rs

Child Chare
Shishu Care Hair Oil 100 ml 70 Rs
Shishu Care Massage Oil 100 ml 85 Rs
Jal Neti Pot 50 gm 40 Rs
Latest Products Anulom Vilom Yantra 200 gm 500 Rs
Cold Relief Inhaler 1 ml 40 Rs

Product Strategy & Development
Unlike most of the typical FMCG company practices, Patanjali has never been into any
formal market research to find out what product should they come up with or what market
they should enter. Rather they believe in the strategy of making the products first and then
taking it to the market. Many a times, there have been instances where they entered into a
new product category which some other company has been doing it for years. Low price,
purity and innovation are the three main drivers of the product development strategy of
Patanjali. A good example of this can be of the Patanjali Amla Candy. Before it was
launched, there were numerous amla products in the market, hence the market can be said
to be existing. But this particular amla product in the form of candy was unheard of before,
which is a truly innovative move from the company. As for the low price and purity aspects,
this product qualifies them too. The amla farmers were facing loss at a point of time since the
market was very small, though amla has many health benefits. Ramdev took a risk and
started promoting the health benefits of amla leveraging his huge following. This promotion
was shortly followed by the product launch of amla juice and amla candy, which was a hit
product in the market. Another example where Patanjali delivered in the lines of purity can be
the Desi Ghee. There has been always an inherent concern among the consumers about the
availability of pure ghee. This need of the customers did not require an extensive market
research to develop a product based on this line since Patanjali always worked form the base
Product Life Cycle

Patanjali has now a huge product portfolio under its brand. But scrutinizing deeply, not all
products were launched at the same time. Rather, they started with few products and since
then have been constantly innovating to come up regularly with new products. Also, in
comparison with other FMCGs, Patanjali is a fairly young company dating back to 2006.
Hence all of its products will be either in introductory or in the growth phase and has still a
long way to go before it reaches maturity.
Introductory Stage:-
Ayurveda means life-knowledge, which was a system of medicine practiced in India since
ages. Ramdev was the one who materialized and commoditized that knowledge and broke
the barrier of using Ayurveda not only in medicine but in consumable products too. With this
vision, Patanjali was started in 2006. Few products which are in the introductory stage are
fertilizers and floor cleaners. Clearly, the innovators and early adopters are those who are
followers of Ramdev and middle age to old people who are health conscious and believe in
the Ayurveda.
Growth Stage :-
The meteoric rise of Patanjali started from 2012. From 2012 to 2015, it posted CAGR of
64.7% of revenue growth and sales worth Rs. 10000 crore in 2017. Patanjali is already past
the gap between early adopter & early majority. Many of its best-selling products like ghee
and Dant Kanti have reached the growth stage.
New Products Pipeline Strong And Innovative

Patanjali has a separate team for new product development. The company has been able to
leave a mark owing to the pace and frequency of new product launches. Its robust R&D
department has churned out new products in quick time and lower costs. For instance,
Patanjali started working on its own brand of instant noodles post the Maggi issue and
within a period of 3 months it is now ready with its own instant noodles.
The company has a robust and innovative pipeline of new products with some set for launch
soon and some others at R&D phase.
New Products That Are Recently Launched/

Expected To Be Launched Soon
 Patanjali Noodles (will compete with instant noodle players like Nestle and ITC)
 Dant Kanti Advance (already has 3 variants of Dant Kanti toothpaste – Regular,
Medicated (similar to sensitive) and Junior)
 PowerVita (will provide competition to all health food drink companies (Mondelez, GSK
Consumer) – this product is made up of ayurvedic ingredients like Brahmi, etc.)
 Sugar Free Chyawanprash (competition to chyawanprash manufacturing companies
like Dabur and Emami)
 Seabuck thorn dietary supplement in collaboration with DRDO (made under a
technology‐sharing agreement with DRDO (used by army personnel in tough terrains
as a source of nutrients)). This product will have richness of all the necessary nutrients
and will be made available to civilians)
 Powdered hair dye (the company has a separate unit, Coloroma, which manufactures
herbal colours and dyes)
 Divyapay (health drink comparable to tea) in dip dip format
 Child range (the company is also planning to launch a children’s range under Patanjali
which will include products like baby oil, talcum powder, baby soap, shampoo, etc)
Products At R&D Phase

 Butter Milk In Powder Form

 Oats With Masala
 Chicory Coffee (Caffeine Free)
 Weight Gain And Loss Products
 Madhuram – Ginger And Rose Flavour
 Divya Jal- Packaged Drinking Water
Soon to launch ‘Swadeshi Jeans’
After food, medicines and cosmetics, the yoga guru-turned-tycoon who discovered the
business potential of everything homegrown is ready to raid the next big consumer market:
branded apparel .Ramdev’s Patanjali Ayurved Ltd is preparing to launch its ‘swadeshi” line of
clothes for men, women and children by April. Patanjali will have different products in each
category—value-for-money clothes for the masses and apparel that would have the snob
value meant for the classes. Patanjali is working on a suitable brand name aligned with its
‘swadeshi’ agenda. The apparel line will initially be made available across 250 exclusive retail
outlets in April 2018, Besides the wide network of Patanjali stores, they will also be sold at
other apparel retailing outlets across the country, including Kishore Biyani-led Future Group’s
Big Bazaar.. In an Interview To Mint in May 2015, Ramdev had said his company would
work with handloom weavers to save them from distress and revive the khadi industry.
Patanjali is entering a market projected to grow over 9% every year till 2022 from about Rs2
trillion in 2012, according to a 2013 report by retail consulting firm Technopak.“Extending
brands beyond core is always challenging,” said Rajat Wahi, Partner, Management
consulting at Deloitte India. “But the company has shown strong marketing acumen before
and has its own fan following, which may be helpful,” he said.
4.42 PRICE

Attractive pricing, natural positioning ensures competitiveness
Patanjali’s key strength, apart from its superior product quality, lies in its pricing. The
company’sproducts are priced at 15‐30% discount to competition, which makes it an
attractive proposition for consumers. It is able to offer such discounts primarily because of
having negligible A&P spend versus other consumer companies which have A&P spends
ranging from 12‐18%, as a % of sales. Another reason for the discounts is the consumer‐
centric ideology of the organisation and selling best quality products at attractive price points.
There may even be some products in the company’s portfolio which are making losses or
fetch lowmargins, but it continues to sell these products to meet consumer needs.
A significant amount, sometimes as high as 20-30% of the sales goes into marketing,
packaging & advertising in the case of a typical MNC FMCG. But in the case of Patanjali,
these costs are low since they do not market or advertise their products as their competitors
nor they spend on fancy packaging. Also, they either directly source the raw materials from
the farmers or grow them in their farms. This helps them significantly to keep the costs low.
Moreover, their manufacturing plants are located nearby the sourcing locations. Patanjali
does not spend on extensive market research like other FMCG companies. Also they don’t
hire high paying officials in their company. As claimed by Ramdev, he does not even take
anything home, while most of the promotions are carried out by him. This is one of the main
reasons why Patanjali can offer products at such a low price.
The lesser price for each product in each category has created a Cost Advantage for
Patanjali. Middle class people find it as a good reason to switch to these products. Even it
urges the first time users to purchase it and give it a try.

4.43 Place (Distribution Network And Supply Chain Management)
The main manufacturing unit is in Haridwar, where all the production & manufacturing takes
place. From there on, the products are rolled out in two formats: offline and online.
Offline
Patanjali Chikitsalaya, Arogya Kendra and Retail Stores:-
These are channels and outlets which are handled directly by Patanjali, from distribution to
procurement. The Patanjali Chikitsalaya offers free Ayurveda doctor consultation over &
above stocking the Patanjali products, irrespective of whether the customer makes the final
purchase or not. The Patanjali Arogya Kendra is similar to Chikitsalaya, the only difference
being that the presence of a doctor is not compulsory here. The exclusive retail stores are
minimal & simplistic, stocking only Patanjali Ayurveda products and thus giving the
customers an easy & large offering to choose from. As for reach, the company has close to
20,000 outlets and 10,000 franchisee model of Chikitshalyas and Arogya Kendras.
Distributionwise, the company operates through 100 super distributors (this will be bolstered
going forward) who in turn supply to the wholesalers and retailers (who operate through a
500‐600 strong sales team).

Big Bazaar:-
As a part of a tie up with Future group, Patanjali products are made available in Big Bazaar
retail outlets. The distribution is handled by Future group in this case. But even here, the
Patanjali products generally have a separate shelf or row of their own hence breaking away
the clutter from the ‘me too’ products of FMCG companies where there is almost no
differentiation.
Yoga Camps:-
Baba Ramdev actively organizes yoga camps across India round the calendar, which lasts
for at least 1 week in every place where it is organized. This 1week period also provides an
opportunity to promote extensively and sell these Patanjali products.
Post Office:-
Patanjali products are made available in various post offices all over the country. This is an
extremely break through strategy, something which is less explored and something not
adopted by any other FMCG company. Since post offices’ are generally frequented by the
pensioners and old people, it serves as a place where they can make the purchases while
standing in queues.

Online
Patanjali Online Stores:-
Many people complain that due to Patanjali’s weak distribution network its products are no
easily available everywhere and they are unable to buy them. To address this concern, the
company has chalked out an aggressive plan to improve its presence on the online platform.
Patanjali maintains 2 websites from where their products can be purchased online. They
even have an App on Google Play. Offering this online option was a good move from the
company’s side since it gives high convenience to the customers, who are mostly shifting
towards online shopping. Also, these websites serve as a one stop place where a customer
or potential buyer can view the entire range of products that Patanjali has to offer, which
sometimes is not possible in an offline brick & mortar store. By this, he can choose & select
which product to buy & makes the purchase from the offline store in the case he does not buy
online.

Third Party Online Platforms :-
Patanjali products are also available on various e-commerce platforms like Amazon, Flipkart,
Snapdeal and Big Basket to name a few. This is a good strategy since it is a platform which
is frequented by millennials who want convenience and choice of purchase. It also acts as a
promotional tool since Patanjali products can come up in the deals or ads section of these
sites, hence attracting the attention of the customers who might end up buying

Other Efforts
Advertisement For Inviting Distriubutors In Brand Equity Dated September 6, 2017

Apart from online presence, Patanjali is also taking steps to enhance its overall distributor
coverage. The company has invited applications for distributorship of its products. Being
seized of the fact that there is high demand for its products, Patanjali is now offering
separate distributorship for food and cosmetics compared to the earlier system when one
distributor managed both. Also, the company is giving distributorship at the district, tehsil and
mandi levels, which shows its confidence on its the growth trajectory and demand for its
products.The company is also implementing ERP for better mapping of inventory (SAP has
already been implemented).
Application Form For Distributors, Found Online
Supply Chain Management
Haridwar (H.O) Depot Distributor Agency/ Retail

(District Levels) Store
Model for FMCG
Haridwar (H.O) Depot Patanjali Chikitsalaya

(District Levels)
Model for Ayurvedic Medicines
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 the three are
maintained. Supply Chain of Patanjali can be understood with the help of few examples. We
may take sale of Patanjali products as a reference point. They sell their products through
their own outlets present in almost every district/city of India. Each outlet sends its demand to
central office at Haridwar. Based on these demand, 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 primarily through Patanjali transport. This shows a well
defined Supply Chain Management. Next, taking the case of Patanjali Gram at Uttarkashi,

the cow urine is collected from rural households. After initial filtration, it is sent to Patanjali
Food and Herbal Park where it is processed and is sent to various Patanjali outlets for
distribution. A part of money received from the sale of cow urine is kept by Patanjali Food
and Herbal Park Limited as processing cost and the rest is sent to the village Some amount
is distributed to the people as a price of cows urine, rest is used for the development of the
village like establishing necessary infrastructure, building school s etc. The Patanjali Mega
Food Park (PMFP) has been envisaged to help in creation of enabling infrastructure for food
processing and a comprehensive ‘farm-to-plate’ supply chain system. The initiative aims to
seek maximum value addition by backward as well as forward integration between the
farmers, factory and the market. It can be said that the 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
4.44 PROMOTION
Face Of Patanjali:-
Patanjali is piggybacking on the image of Ramdev Baba. Baba Ramdev is the brand
ambassador of Patanjali and has projected it as a healthy, natural and organic solution to all
the problems. He shot to fame through yoga which was simple and easily adopted. This gave
him credibility. He used this credibility to relaunch Patanjali and has associated better health
with Patanjali. He is the reason why Patanjali could grow so quickly and is so popular today.
Thus the brand image created is valuable as it is giving sleepless nights to other FMCG
brands who have been in India for the past 50 years or more. It is not rare to have a good
brand image but the brand ambassador of such charisma is rare. It is non-imitable for the
same reason that the brand’s image is directly linked to Baba Ramdev.

Distinguishing Factors:-
While all FMCG brands have good packaging and good marketing, Patanjali has its own
ways to build credibility. It has provided certified ayurvedic doctors, which has helped
increase the trust of the Patanjali brand. This has led to a positive word of mouth and are
thus valuable, rare and non-substitutable. It is not possible for other FMCG giants to go for
this strategy as they cannot hire ayurvedic doctors to recommend their cosmetics and other
products, neither is it possible to hire doctors with MBBS degrees as it would be a costly
value proposition. Thus it is inimitable as well.
MARKETING STRATEGIES
From the very beginning, the promotion strategy of Patanjali had two main objectives. One
was definitely to highlight the health benefits of using Ayurveda products and to evoke the
Swadeshi sentiment into the Indian consumer’s mind. The other objective was to make aware
of the customers about the sinister way of the profit making by the FMCG giants which are
typically MNCs: that they not only fool the customers giving stale, adulterated products but at
the same time charging high price at the cost of exploiting our farmers. All these promotions
were carried out via various channels and modes, some of which are as follows.:-
Low And Effective Advertising:-

Patanjali Ayurved has limited advertising expenses, which gives it enough leeway to pass on
the savings from lower ad spends by way of lower prices. The company advertises in a
limited way – news tickers, newspapers, some digital advertising, etc. Patanjali has adopted
the unique information based advertising. For instance, the company highlights the positives
of cow’s ghee, which automatically helps sale of Patanjali Ghee. In the recent past, the
company’s print advertising has seen a marked increase.For the consumers, Baba Ramdev
remains the face of Patanjali and its products. Baba Ramdev, during his yoga sessions,
showcases Patanjali products. After the session, he makes the attendees aware of the
benefits of using Patanjali products. Till date, close to 70mn people have come in contact
with Baba Ramdev through his yoga camps and it is believed that this can increase to 200mn
going ahead. This highlights the potential reach that the Patanjali brands can have without
much mainstream advertising. Also, being associated with Baba Ramdev helps in creating a
better perception among consumers that as they are ayurvedic, the are healthy.
Direct marketing:-
Ramdev with his popular yoga guru image and organizing Yoga camps across India round
the calendar contributes to the direct marketing of the Patanjali products where they are
promoted and advertised along with the main events.
Word of Mouth:-
Most of the promotion is carried out indirectly by the followers of Ramdev and the early
adopters of Patanjali products who have found these products to be good. While
communicating with their family, friends, relatives, neighbors and colleagues, they indirectly
promote brand Patanjali by sharing their positive experience with the products. Publicity

through word of mouth form users is something that tells that that the brand sells itself with
minimal promotion.
Branding:-
Ramdev is the face and the man behind the whole brand of Patanjali Ayurveda. The story
started even before the idea of Patanjali was conceptualized. Ramdev started as a yoga guru
offering a healthy life style choice and quickly escalated to fame by TV and live yoga
sessions, which had a huge reach and created a big impact on the Indian people. One of his
erstwhile disciple and friend, Acharya Balakrishna who also happens to be an Ayurveda
expert, used this opportunity to launch a range of Ayurveda and herbal products under brand
Patanjali. Combining these products with the yoga of Ramdev was a good move as they
were complementary to each other and helped each other as a sort of unwritten co-branding.
Patanjali products started to get promoted by Ramdev via the TV channel (Aastha) and also
in his yoga sessions. This association of Patanjali with the popular and mass accepted yoga
guru Ramdev has been a strong and favorable one. Hence salience or awareness of the
brand is high, significantly more in North India and parts of Western India than other regions,
the reason behind can be due to usage of Hindi as its prime language of communication and
promotion. The brand recall is also quite high. The imagery that Patanjali carries is quite a
positive one, which is seen as a pure, good quality indigenous product and a healthier
alternative than other FMCG products typically found in market. In terms of performance, the
customers are satisfied with it. Most of the consumers feel that Patanjali is a brand that can
be trusted and hence advice each other to use these products. Since it is lifestyle choice of
choosing the healthier alternative among the existing brands, there is a resonance among the
consumers which results in strong brand loyalty. It is observed that once a consumer starts
using a particular Patanjali product, he or she starts using other products too of the same
brand since all are aligned with Ayurveda.
From its inception, Patanjali has been following ‘Branded House’ strategy that is keeping
everything under one umbrella brand, unlike most of the other FMCG companies like HUL,
P&G etc. which uses ‘House of Brands’ strategy i.e. there is a standalone brand for each
product line offering. This gives Patanjali a significant advantage in building a unified brand

for itself, its current range of products and new products which are going to be launched
since it can leverageon the already established brand of Patanjali.
Celebrity Endorsement:-
Patanjali rarely did any celebrity endorsement since the popular face of Ramdev was
sufficient to carry on the promotion. His image as a yoga guru totally aligned with the
Ayurveda product offering of Patanjali. Celebrity endorsement is something which was not
previously in Patanjali’s promotion. However lately, wrestler Sushil Kumar has been seen
endorsing the Ghee brand of Patanjali. But this is also to be kept in mind that this was not in
a very large scale promotion, nor the sports celebrity was a top shot. We are yet to see a top
shot celebrity endorsing brand Patanjali.
Media:-
Aastha channel is the TV media where Patanjali is heavily promoted. It mainly started as a
means to spread health awareness & yoga sessions to the masses. But with the advent of
Patanjali, this channel along with the yoga sessions were leveraged to promote Patanjali
products and the health benefits of consuming or using it. This move was aligned since they
were promoting health products in a health related lifestyle show. Apart from this, Patanjali
advertisements are observed in other channels and print media. A new campaign on radio
was launched by Baba Ramdev (Patanjali apnaiye, desh ko aarthik aazadi dilaiye) which
hovered around the idea of providing financial independence to the nation by the use of
indigenous products.
4.5 SEGMENTING, TARGETING AND POSITIONING ANALYSIS

SEGMENTATION
From the product line up of Patanjali Ayurved, it can be safely assumed that it does not
segment the customer base as such, making the whole population its potential customer. As
per Ramdev’s vision of bringing welfare and manufacturing good and unadulterated natural
Ayurveda products easily available to the common masses, this stance of not segmenting the
market as such seems aligned. However on analysis, a broad segmentation can be
observed.
Geographic Segmentation (North India And South India):-
It is observed that Patanjali products are a huge hit in the North Indian market but not that
much in South India. One reason might be that Ramdev being from the Hindi belt and Aastha
channel airing in Hindi language, its prominence is not that much down in south. The same
reason holds true for its packaging, which uses either English or Hindi. To be noted that
Patanjali owes its huge success to Ramdev’s active image association with it.
Behavioral Segmentation (Based On Lifestyle And Types Of Products Consumed );-
The consumers can be segmented based on their lifestyle & health preference and by the
type of product they use. The main users of Patanjali products are the people who are health
conscious and want to use pure unadulterated natural Ayurveda products.
Demographic Segmentation (Based On Age) :-
A clear segmentation can be done based on age. The young generation, i.e. typically children
to young adult below the age of 35 years is a clear segment, while the rest of the population
aged more than 35 years are the other segment. Once old or with the onset of middle age,
people start thinking about health and future. These are the people who generally make the
purchase of Patanjali products.
Psychographic Segmentation (Based OnThe Psychology And Mindset Of The People):-
There is huge overlap between the people who attend Ramdev’s Yoga camps or follow him
on Aastha. They perceive him as an ascetic and hence his products too shall be good which
makes them purchase these Ayurveda products of Patanjali. Also to be noted is that Ramdev

wanted to create a Swadeshi sentiment among the customers and thus pitched against
FMCGs who are mainly MNCs or use raw materials/ procedure of foreign origin.
Targeting
Currently Patanjali is competing in all FMCG categories catering to the whole population,
which is otherwise called Total Market Coverage Targeting Strategy. They have diversified
into almost all categories like oral care, hair care, skin care, groceries, health drinks and
supplementary, packaged food etc. Also since they have no differential products within the
same product portfolio, this substantiates the fact that they are not targeting any particular
segment, rather serving the whole population with their offering. To reach to the maximum
number of potential customers, it has to target specifically though. The house wives and the
elderly of the house are the influencers and decision makers in the purchase process of
Ayurveda products. By just producing packages with South Indian languages, the south
market can be targeted.
Positioning

“For the mass Indian consumers, Patanjali Ayurveda offers the complete range of
unadulterated natural/herbal/ organic products which are a healthier alternative to the other
FMCG products at a significantly lower price.”
Ramdev wants to associate Patanjali holistically with Arogyam eco-system, which means
disease-free long life. This is actually tying up of yoga, pranayama and Ayurveda to create
such a possibility, something which Ramdev banks on.
He also links the idea of indigenous (Swadeshi) to the company’s products and does cause
marketing for the company by saying that they are helping the farmers to earn more. He
projects Patanjali as a not-for-profit company and that it is there to serve the masses. He
mentions that they do not keep margins on most of the products and hence the mouth-
watering prices.
4.6 SWOT ANALYSIS
Strengths
Patanjali sources most of the raw materials from local farmers and thus can offer products at
lower prices. All the products have some ayurvedic touch to it. This appeals to the masses.
Besides there are no chemicals used for manufacturing of the products. Having Baba
Ramdev as the brand ambassador leads to a transfer of credibility from Ramdev to the brand
itself. Thus it does not have to work hard to build trust among its customers. Patanjali also
has a very good distribution channel. It has tie-ups with hypermarkets like Big bazaar,
Reliance retail, Hypercity, Star Bazaar(Tata), D-mart, Spencer retail, More(ABG retail). It has
also recently tied up with Apollo pharmacy and thus had license to use its 22009 stores in
India for distribution of its products. Baba Ramdev has strong political affiliations which he
can utilize to get benefits from the government. He has already helped Patanjali secure loans

at lower interest rates and is also being offered subsidized land as food parks. These are the
strengths of Baba Ramdev but it is not sustainable if he deserts the company.
Weaknesses
The sourcing of the raw materials is done from local farmers and is therefore dependent on
the produce of these farmers. Thus the supply is not steady and therefore they are not able
to cater to the demand of the customers. It does not have any definite strategy on scaling and
thus might leave a trail of unsatisfied customers behind since it would not be able to cater to
their demand. Secondly, the positioning is done to attract people above age group of 35
years of age and it does not appeal to younger generations. This can seriously impact growth
of the company after a certain point if it doesn’t reposition its appeal towards the younger
generations. Thirdly, the packaging is not good or up to the standard of the current big
players. This might impact adoption of the products. They have been trying to manufacture
products in a lot of categories but only a select few have been successful. They should try to
build those into bigger brands rather than investing their resources in a lot of products so as
to gain market share. They are not focused as of now. Despite having a wide distribution
network, Patanjali does not sell their products through kirana stores as extensively as other
FMCG giants. This is crucial, as one of the insights regarding consumers’ purchase of FMCG
products is that they purchase them almost 90% of the time through kirana stores. Besides
since they price their products very low, therefore they are not able to give higher margins to
sellers which might lead to strained relations.
Opportunities
The targeting can be changed to appeal to younger generations as it is yet to capture that
segment. For this they need to build a good brand which they can do by working on
advertising and packaging that appeals to broader segments. They are trying to acquire more
food parks in India so as to solve the problem of sourcing. This will create stability in the
availability of products and they can cater to the increased demand. They can scale up even
more through franchise model or tie-ups with more supermarkets/hypermarket chains.
Finally, it can price its products a bit higher, especially the best-selling ones as people have
become loyal and are willing to pay a premium. This benefit can be passed on to the sellers
in the form of higher margins which would lead to better sales.

Threats
The differentiation that Patanjali has created is in terms of ayurvedic knowledge and use of
herbal and natural ingredients in the products. Secondly, Patanjali products are generally
available at lower price points compared to other branded products. However, the
competitors can easily make their foray into the herbal space and they can spend big bucks
on marketing their products as well. Besides they have stronger distribution channels.
Secondly the bigger companies can always create newer brands to start a price war with
Patanjali (e.g. Colgate created Cibaca Vedshakti and is selling at lower price than Patanjali).
This might drain Patanjali’s resources in the long run compared to the bigger companies who
can burn more cash. Another strong point of Patanjali is the backward integration with local
farmers to source their products. However other FMCG companies are also doing that to
some extent. If they begin to extend their backward integration, then it might create sourcing
problems for Patanjali.
4.7 ANSOFF’S MATRIX

The Ansoff Matrix is a strategic planning tool that provides a framework to help executives,
senior managers, and marketers devise strategies for future growth
Market Penetration:-
In market penetration strategy, the organization tries to grow using its existing offerings
(products and services) in existing markets. In other words, it tries to increase its market
sharein current market scenario.This involves increasing market share within existing market
segments. This can be achieved by selling more products or services to established
customers or by finding new customers within existing markets. Here, the company seeks
increased sales for its present products in its present markets through more aggressive
promotion and distribution.
This can be accomplished by: (i) Price Decrease; (Ii) Increase In Promotion And Distribution
Support; (Iii) Acquisition Of A Rival In The Same Market; (iv) Modest Product Refinements
Market Development:-
In market development strategy, a firm tries to expand into new markets (geographies,
countries etc.) using its existing offerings. This can be accomplished by (i) Different Customer
Segments (Ii) Industrial Buyers For A Good That Was Previously Sold Only To The
Households; (iii) New Areas Or Regions About Of The Country (iv) Foreign Markets.
This strategy is more likely to be successful where:- (i) The firm has a unique product
technology it can leverage in the new market; (ii) It benefits from economies of scale if it
increases output; (iii) The new market is not too different from the one it has experience of;
(iv) The buyers in the market are intrinsically profitable.
Product development:-
In product development strategy, a company tries to create new products and services
targeted at its existing markets to achieve growth.
This involves extending the product range available to the firm's existing markets. These
products may be obtained by: (i) Investment in research and development of additional
products; (ii) Acquisition of rights to produce someone else's product; (iii) Buying in the
product and "branding" it; (iv)Joint development with ownership of another company who
needs access to the firm's distribution channels or brands.
Diversification:-
In diversification an organization tries to grow its market share by introducing new offerings in
new markets. It is the most risky strategy because both product and market development is
required.
(i) Related Diversification - Here there is relationship and, therefore, potential synergy,
between the firms in existing business and the new product/market space.
(a) Concentric diversification
(b) Vertical integration.
(ii) Unrelated Diversification: This is otherwise termed conglomerate growth because the
resulting corporation is a conglomerate, i.e. a collection of businesses without any
relationship to one another.A strategy for company growth through starting up or acquiring
businesses outside the company’s current products and markets
CHAPTER V

5.1 DATA CLASSIFICATION, TABULATION, ANALYSIS AND

INTERPRETATION
The analysis is based on Primary Data collected through survey forms from 110 respondents.
Q1) Have you ever used Patanjali Products?
Yes No Total
95 15 110
14%
Yes
No
86%
Results:-
 Out of 110 respondents, 95 respondents agree that they use Patanjali products
 Out of 110, 15 respondents don’t use Patanjali products.
Interpretation:-
Consumers of this era have increasingly become more aware about health and quality
of life. They are smart enough to understand what needs to be fulfilled and how
can they fulfill those needs and wants. Apart from the basic needs and wants, they
are focusing on demanding a healthy lifestyle. Being disease free has become their
motto and they have realized the importance of Ayurveda as well. Keeping in mind
this growing demand some companies like Patanjali has come forward to fulfill those
demands. As the study is focused on the customers using Patanjali products, the above
question has focused on asking the consumer about his utility.
The ones answering Yes to Q1 were asked to answer Q2 to Q7. The ones who answered No
were asked to directly Q7.

Among The 95 Who Answered Yes, This Is The Demographic Segmentation Based On
 Gender:-
Women Men Total

65 30 95
32%
Women
68% Men
Results:-
 65 of 95 respondents are women.

 30 of 95 respondents are men.
Interpretation:-
It is the women of the house who decides on the products relating to home, health and
beauty care therefore it is observed that more women as compared to men use Patanjali
products.
 Age Wise Segmentation For Women (Age In Years):-
< 18 18- 30 31- 45 46- 60 > 60 Total

1 14 15 18 17 65
1%
26% 22% < 18

18- 30
23% 31- 45
28% 46- 60
> 60
 Age Wise Segmentation For Men (Age In Years):-
< 18 18- 30 31- 45 46- 60 > 60 Total

0 3 5 10 12 30
0%
10% < 18
40% 17%
18- 30
31- 45
33% 46- 60
> 60
Results:-
 Highest Sales in women is noticed in the age groups of 46-60 and more than 60.
 Highest Sales in men is noticed in the age groups of 46-60 and more than 60.
Interpretation:-

The onus of Patanjali’s sales lies on the shoulders of Ram Dev Baba, who has a huge fan
following amongst the people in the age group of 46- 60 and the people aged above 60. Also
people in this age group prefer natural products and ayurvedic medicines. This is the
possible reasons why the age group of 46- 60 and above 60 sees the highest sles in both
men and women.
 Marital Status Of Women:-
Married Unmarried Total

47 18 65
28%
Married
72% Unmarried
 Marital Status Of Men:-
Married Unmarried Total

23 7 30
23% Married
77% Unmarried
Results:-
 Amongst women, 47 out of 65 are married and 18 are unmarried.

 Amongst men, 23 out of 65 are married and 7 are unmarried.
Interpretations:-

It is observed that married men and women use Patanjali more than unmarried people. This
is could be because married men are more conscious about their health.
 Profession Of Women:-
Student 13
Homemaker 17
Service 23
Business 4
Unemployed 2
Others 6
Total 65
3%
6% Student
9% 20%
Homemaker
Service
26%
36% Business
Unemployed
Others
 Profession Of Men:-
Student 2
Homemaker 0
Service 13
Business 5
Unemployed 0
Others 10
Total 30

7% 0%
Student
33% Homemaker
43% Service
Business
17%
Unemployed
0%
Others
Results:-
 Amongst women it is observed that the highest sales are from homemakers and
women in service.
 Amongst men it is observed that the highest sales are from men in service and others.
Here others mostly includes retired men.
Interpretation:-
As homemakers and retired people are more price conscious, it is observed that they make
more purchase of Patanjali products. Also service people think about costs as they have
limited supply of money to shed.
 Annual Income Of Family For Women (In Rupees):-
< 5 Lakhs 5- 10 Lakhs 10- 20 Lakhs > 20 Lakhs Total

28 24 7 6 65
9%
11% 43% < 5 Lakhs
5- 10 Lakhs
37% 10- 20 Lakhs
> 20 Lakhs

 Annual Income Of Family For Men (In Rupees):-
< 5 Lakhs 5- 10 Lakhs 10- 20 Lakhs > 20 Lakhs Total

7 16 5 2 30
7% 23%
17% < 5 Lakhs
5- 10 Lakhs
10- 20 Lakhs
53% > 20 Lakhs
Results:-
 Amongst women the highest sales is from the income group of < 5 lakhs.
 Amongst men the highest sales is from income group of 5-10 Lakhs.
Interpretations:-
It is observed that the maximum sales are from the middle class income group as they are
price sensitive. They are the ones who focus on value for money. As Patanjali products are
available in their outlets or in shopping marts like Big Bazaar, the people in this income
bracket are the ones who frequent malls and tend to pick Patanjali as it is price competitive.
Q2) When was the 1st time you used it?
About 1- 3 3- 6 >6
a Year Years Years Years Total
Back Back Back Back
Women 19 25 12 9 65
Men 4 15 5 6 30

25
25
19
20
15
15 12
9
10 6
4 5
5
0
About a 1- 3 Years 3- 6 Years > 6 Years
Year Back Back Back Back
Women Men
Results:-
 The majority of the respondents (both men and women) started using Patanjali
Products for the 1st time 1- 3 years back.
Interpretations:-
This is the time when Patanjali started gaining momentum and marketing themselves. This is
also the time when people started recognising Patanjali as a brand. So this is the time when
most people started using it for the 1st time because of the sudden hubaboo surrounding it.
Q 3) Which Patanjali Products have you used? How often do you use them?
 Number Of People Using It (Women):-
Products Once Sometimes Regularly Total

Beauty Care (Shampoos,
Creams, Bathing Soaps, 13 22 15 50
Toothpastes, Hair Oils)
Ayurvedic Medicines 11 10 6 27
Eatables (Biscuits, Spices,
Noodles, Oats Candies, 8 21 15 44
Namkeen)
Health Care (Juices, Honey,
Ghee, 7 17 17 41
Chyawanprash)
Home Care (Detergents, Dish 4 11 23 38
Wash Bars)

22 23
25 21
20 17 17
15 15
13
15 11 10 11
8 7
10 6
4
5
0
Beauty Eatables Health Home
Care Medicines Care Care
Once Sometimes Regularly
 Number Of People Using It (Men):-
Products Once Sometimes Regularly Total

Creams, Bathing Soaps, 8 6 4 18
Ayurvedic Medicines 2 5 8 15
Noodles, Oats Candies, 2 12 7 21
Namkeen)
Ghee, 5 4 13 22
Chyawanprash)
Home Care (Detergents, Dish 2 1 9 12
Wash Bars)
14
13
12
12
10
9
8 8
8
7
6
6
5 5
4 4
4 2 2 2
2
1
0
Beauty Ayurvedic Eatables Health Care Home Care
Care Medicines
Once Sometimes Regularly

Results:-
 Women use beauty care the most and ayurvedic medicines the least.
 Men use health care the most and home care the least.
Interpretations:-
The data shows that women are more beauty conscious than health conscious and therefore
spend most on beauty products. On the other hand men are more health conscious and
prefer spending on health care products. Both man and women spend equally on eatables.
Q4) Rate the products you have used on a scale of 1 –5 based on your satisfaction. 1
beaing the least satisfied and 5 being the most satisfied.
 Satisfaction Rating By Women:-
Products 1 2 3 4 5 Total
Creams, Bathing Soaps, 8 8 12 15 7 50
Ayurvedic Medicines 5 6 7 4 5 27
Noodles, Oats Candies, 6 9 12 11 6 44
Namkeen)
Ghee, 7 6 11 10 7 41
Chyawanprash)
Home Care (Detergents, Dish 2 4 12 12 8 38
Wash Bars)
16
15
14 12 12 1212
12
11 11
10
10
9
8 8 8
8
7 7 7 7
6 6 6 6
6
5 5
4 4
4 2
2
0
Care Medicines
Series1 Series2 Series3 Series4 Series5

 Satisfaction Rating By Men:-
Products 1 2 3 4 5 Total
Creams, Bathing Soaps, 3 4 5 2 4 18
Ayurvedic Medicines 1 1 6 4 3 15
Noodles, Oats Candies, 2 4 6 5 4 21
Namkeen)
Ghee, 5 2 6 5 4 22
Chyawanprash)
Home Care (Detergents, Dish 0 2 3 4 3 12
Wash Bars)
6 6 6
6
5 5 5 5
5
4 4 4 4 4 4 4
4
3 3 3 3
3
2 2 2 2
2
11
1
0
0
Care Medicines
Series1 Series2 Series3 Series4 Series5
Results:-
 For women it is observed maximum people have rated Patanjali Products a 3 on 5

except for beauty care where most people have rated it a 4 on 5.
 For men it is observed maximum people have rated Patanjali Products a 3 on 5 except
for home care where most people have rated it a 4 on 5.
Interpretation:-
The data shows that most of the products are rated a 3 on 5 by both men and women.
Therefore the satisfaction level is neutral.

Q5) Why do you/ start using/ like Patanjali Products?
Females Males
Got Influenced to
Advertisements 11 7
Low Price 21 10
Good Quality 18 11
It is Herbal 22 14
Friend/ Relative
Recommended 14 6
Made In India 14 9
Devotion Towards
Ram Dev Baba 10 7
Family Influence 8 9
Others 1 0
25 21 22
18
20 14 14 14
15 11 10 11 11 10
7 6 7 8 9
10
5 1 0
Influenced…
Relative…
0
Towards…
Made In India
Devotion
It is Herbal
Low Price
Others
Good Quality
Influence
Friend/
Family
Got
Females Males
Results:-
 It is observed that maximum people purchase Patanjali Products because they are low
priced, good quality and herbal.
Interpretation:-
It is observed that people are now preferring herbal product as they are beneficial for the
health as we can seeing that maximum people (both men and women) are choosing Patanjali
as it is Herbal. The other reason being good quality at affordable prices.

Q6) Do you prefer Patanjali Products over other brands?
Yes No Total
Females 43 22 65
Males 24 6 30
Total 67 28 95
50 43
40
30
24 22
20
6
10
0
Yes No
Females Males
Results:-
 Out of 95, 67 prefer Patanjali over other products out of which 43 are women and 24
are men.
 Out of 95, 28 do not prefer Patanjali over other products out of which 22 are women
and 6 are men.
Interpretation:-
It is observed that even though people use Patanjali Products, some people are still there
who prefer other products over Patanjali. This maybe due to certain factors which can be a
huge threat to Patanjali as consumers might switch to other brands. Patanjali needs to work
on the flaws to retain their customers.
Q7) Why do you not use/ dislike the product?
Note:- This question is answered by the ones who have never used Patanjali Products
(Q1) as well as the ones who have used Patanjali but prefer other products (Q6).

Who Have Used But

Dislike Never Used
Females Males
High Prices 0 0 0
Low Quality 2 0 1
Prefer Branded Products 4 0 4
Other Products Are Better 7 1 4
Friend/ Relative Asked Not To 0 0 1
Disbelief Towards Ramdev Baba 1 0 3
Satisfied With The Product Currently
Using 4 2 2
Not Aware Of Patanjali Products 0 0 0
No Particular Reason 6 1 2
Suffered From Allergy Or Reaction After
Use 1 0 1
Others 4 0 1
7 6
7
6 4 4 4 4 4
5 3
4 2 22 2
3 1 1 1 1 1 1 1 1
2 000 0 0 00 0 000 0 0
1
Branded…
Products…
Relative…
With The…
Particula…
Towards…
From…
Suffered
Disbelief
Others
High Prices
Not Aware
Quality
Satisfied
Friend/
Prefer
Low
Other
Of…
No
Who Have Used But Dislike Females

Who Have Used But Dislike Males
Not Used Ever
Results:-
 It is observed that the major cause of non usage or dislike is preference of branded
products or other products.
Interpretation:-
From the data we can infer that other products are a major cause of concern for Patanjali. To
sustain in the market it has to undertake steps to combat competition or else survival would
become difficult. Patanjali should also try to establish as a brand rather than a low cost
product.

5.2 HYPOTHESIS TESTING
From The Primary Data Analysis It Is Observed That:-
1) Based On Demographic Data, There Is A Specific Demand Pattern Which Can Be

Observed:-
 According to the Demographics, the maximum demand is by consumers in the age

group of 46-60 and more than 60.
Therfore H1 is proved.
 The main cause of the demand and liking for Patanjali products is:-
 Low Price
 Good quality
 It is Herbal
Therfore H2 is proved.
2) The Level Of Consumer Satisfaction Observed Is:-
 The level of consumer Satisfaction observed is neutral (3 on a scale of 1-5, 5 being

Extreme Satisfaction).
Therefore H3 is proved.

CHAPTER VI
6.1 ISSUES AND RECOMMENDATIONS
Issue 1: Stock-Out:-
With almost 600 products scattered in multiple FMCG categories, the product portfolio of
Patanjali is large and has become inconsistent, which is causing confusion among customers
and also shifting away from its core value proposition. For example, the noodles or biscuit
category falls neither under the Ayurveda bracket nor it is an Indian food or recipe, both of
which were core to Patanjali. Also just by flooding the market initially with the sheer volume of
their numerous products, now it is posing a challenge to the company to maintain demand-
supply, to avoid stock-out of best-selling products and clearing the less selling products.
Recommendation:-
Patanjali should cut off manufacturing or marketing the products which are not aligned with
their core value of providing Ayurvedic products which has health benefits. By this, they can
retain and strengthen their position as the market leader in Ayurveda and herbal products.
Also by this process, they will have a smaller portfolio than present, which will enable them to
divert all these resources into those products. Quality will enhance significantly, packaging
can be improved & steady demand-supply can be maintained as a result along with many
other possibilities.

Issue 2: Fill Rate And Sporadic Supply:-
The supply and distribution of Patanjali is inadequate and sporadic. Many a times, there is
more supply than required and at times, there is very low supply. According to one source,
the fill rates of Patanjali products are in the range of 40-50 per cent. On the other hand,
multinational consumer goods companies such as Nestlé and HUL have a fill rate of 85-90
per cent. The distributor margins are as low as 5% compare to 8-10% as offered by other
FMCG companies. Most of Patanjali products are hence sold on MRP owing to very low
margins.
Recommendation:-
Cutting down the existing SKU to a reasonable number will help Patanjali gain traction as
they can optimize on the supply demand and give a little more margin to the distributors and
retailers. In the second phase, it is recommended to increase the production capacity by
increasing the number of production units. As a result, they can leverage economies of scale
and hence work on the adequate and timely supply as well as give a better margin to the
distributors and retailers. In the light of this, it should consider setting up production plants in
South India to enter more aggressively in this market. Overall, a hub-and-spoke model would
be beneficial for a smooth Pan-India distribution. Also, careful selection of distributors is
recommended who understand their local supply-demand well. To increase reach, it should
be available in local kirana stores too.
Issue 3: Outsourcing:-
Outsourcing and quality has always been a concern for Patanjali. Many of its products like
biscuits, corn flakes etc. are outsourced to other companies, only the marketing and final
product is rolled out under Patanjali brand. This has raised questions over the Ayurveda
offering of those products as well as the quality. Instances have been found where insects,
fungus were found in its packaged products, products are stocked with a future
manufacturing date etc. All this is causing a trouble to the brand. Though Ramdev wants
customers to believe that this is some sort of conspiracy by the MNCs, in the long run it won’t
help.
Recommendation:-
It is observed that manufacturing of only those products are outsourced which is not a core
offering of Patanjali nor align with its values like the biscuits and cornflakes. Hence Patanjali

should really consider moving out from such categories. As a result, they can keep the quality
of their core offerings intact which are mostly manufactured in-house. Also, since by this
process they are cutting short their portfolio, they can focus more on the quality of the
present products. On top of this, they should still implement stringent quality check and
assurance process. This can be done by periodic industry standard quality testing and
publishing the results in public.
Issue 4: Advertising Spend Vs Low Prices:-
With a high ambition of directly taking on the MNCs, of lately Patanjali has started spending a
bomb on their advertising and promotion. Only in the first two quarters of the current fiscal
year, it is estimated that Patanjali has spent around Rs 360 crore, which is around 7% of
FY2016 sales revenue of Rs 5000 crore, while the operating margin was around 23%.
Naturally, this will put pressure to increase the price.
Recommendation:-
Since the company is in its growth phase, it is natural that it will have ambitious plans ahead.
We recommend that in the light of such plans, it should always think in the long term and do
not suddenly increase the price of its products since most of the customers are still in
adoption stage and diffusion needs time. Increasing the price to bear the cost of promotions
and other activities may prove fatal to the company and the customers may switch back to
the commonly available FMCG goods.
Issue 5: Hindi Packaging Vs South India Sales:-
Most of the packaging and promotion are in Hindi only, with few instances where English is
used alongside Hindi. While it is understandable that Patanjali wanted to evoke a Swadeshi
feeling and also started mainly catering to North India, now that it has its presence in South
India, it is creating an issue among customers. Many a times, a customer gets discouraged
from purchasing a Patanjali product since he does not understand Hindi script about what is
written on the pack or what is in the promotional poster. Overall, it hinders the adoption and
diffusion in South India particularly.
Recommendation:-
It would be recommended that it is high time that Patanjali considers using vernacular
language of respective states of South India in both their promotion and packaging there.

This will result in a greater connect between the brand and the customer, which is expected
to result in the increase of sales of Patanjali products.
Issue 6: Unfocussed Product Launch:-
Following a strategy of increasing market share, Patanjali has flooded the market with its
huge variety of products, which are launched very frequently and there is a very short
duration between two launches. This huge array of product line often confuses the customer
and also deviates the company from its original value offering of Ayurveda products. Few
products sell well, while some products take a long time to clear the shelf since the customer
might find a better alternative.
Recommendation:-
It is already recommended previously that Patanjali should cut down the product lines which
are not aligned with its core offering. Apart from that, Patanjali should consider going for a
trial version with samples in a small locality. If the product clicks, then only they should go for
mass production scale for that product.
Issue 7: Over-Reliance On Ramdev Baba:-
Since Ramdev Baba is at the heart of the brand, any attack on the personality of the
individual is like a direct blow to the brand itself. Time and again, Ramdev did come on the
limelight for various reasons like using his influence and political tie-ups to get cheap lands
and other incentives. This creates an adverse effect on the Patanjali brand itself.
Recommendation:-
It is true that without Ramdev Baba, the success story of Patanjali might be different. But still
in concern with the above issue, Patanjali should start linking the product quality and features
and other related stuff in their promotion than depending on Ramdev Baba alone.

6.3 CONCLUSION
There are Businessmen,
There are Entrepreneurs,
And then there are people who leave you thinking,
‘WHAT JUST HAPPENED’
Baba Ramdev’s Patanjali has made disruptive progress in the FMCG sector. Within a span of
about 10 years, it has displaced ayurvedic market leaders like Emami and Himalaya.
Patanjali has become synonymous with ayurvedic products. While the total demand is not
being satisfied as of now, efforts are on to increase sourcing so as to maintain steady supply
of raw materials. The fill rate is 45-50% and can only increase from now on. They have
increased their margins for franchise stores as well as retail chains to around 10% and thus
are getting better placement on the shelves. They are focused on serving the masses and
thus cut corners in packaging and advertising. This is changing as they are spending on
advertising recently. The radio campaign is the first proof of that.
Ramdev Baba’s charisma has pushed Patanjali to grow over 10 times in a span of about 10
years. The FMCG giants are also taking steps to check the advancements of Patanjali.
However now that it has gained traction in the market and there is overwhelming demand for
its products, it will be difficult for them to win back their lost market shares.

BIBLIOGRAPHY
Research Papers
 Dr.Harish B. Bapat(2015), A Yogic Business Revolution: Back to the Future!

 Vinod Kumar(2014), Marketing through spirituality: A case of PatanjaliYogpeeth
 http://stellarix.com/fusce/a-report-on-patanjali-ayurveda/
 Research Paper by Edelweiss found at https://www.edelresearch.com/showreportpdf-
30172/PATANJALI_AYURVED_-_VISIT_NOTE-OCT-15-EDEL
Online News Paper Articles
 http://economictimes.indiatimes.com/articleshow/51848023.cms?utm_source=content
ofinterest&utm_medium=text&utm_campaign=cppst
 Jwalit Vyas, Economic Times,February 29,(2016), Baba Ramdev’sPatanjali starts
to take a toll on some FMCG firms, http://economictimes.indiatimes.com/industry/
cons-products/fmcg/baba-ramdevs-patanjali-starts-to-take-a-toll-on-some-fmcgfirms/
articleshow/51183398.cms?from=mdr
 http://www.livemint.com/Companies/ULjE6ydPbzOlg5j8w0glwJ/Baba-Ramdev-to-
launch-Patanjali-branded-clothes-eyes-Rs500.html
 http://www.thehindu.com/news/cities/mumbai/business/fastmoving-ayurvedic-
goods/article8187124.ece
Weblinks
 https://www.zaubacorp.com/company/PATANJALI-AYURVED-
LIMITED/U24237DL2006PLC144789
 http://www.ijifr.com/pdfsave/05-02-2017904IJIFR-V4-E5-061.pdf
 http://timesofindia.indiatimes.com/business/india-business/Patanjali-to-set-up-4-more-
plants-in-2-years/articleshow/51433651.cms
 http://reviewsimpact.com/patanjali-products
KunalAnand,January13,(2015),Here’s why Baba Ramdev’s Rs.5000 crore empire
is makingcorporateIndiauncomfortable,http://www.indiatimes.com/news/india/
here%E2%80%99s-why-baba-ramdev%E2%80%99s-200-crore-empire-ismaking-
corporate-india-uncomfortable-229410.html

ANNEXURE
Survey On Demand Pattern And Consumer Satisfaction Of Patanjali

Products
This survey is being conducted to find out the demand pattern and consumer satisfaction of
Patanjali products. This survey is solely being conducted as a part of a college research
project and no information given by the respondents will be disclosed to anyone under any
circumstances.
Name (Optional):-__________________________ Gender:- Male Female
Age in years:- Less than 18 18-30 31-45 46-60 > 60
Marital Status:- Unmarried Married
Profession:- Income (Annual Income of Family in Rs):-
Student Business < 5 Lakhs 5-10 Lakhs
Homemaker Unemployed 10-20 Lakhs > 20 Lakhs
Service Others
Please tick the applicable box. There can be more than 1 choice suitable in some places.
1) Have you ever used Patanjali Products? Yes No.
If No then please directly answer Q7. If Yes then please answer Q2 to Q7.
2) When was the 1st time you used it?
About a year back 1-3 Years back 3-6 Years back > 6 years back
3) Which Patanjali Products have you used? How often do you use them?
Products Once Sometimes Regularly Never

Beauty Care (Shampoos, Creams, Bathing
Soaps, Toothpastes, Hair Oils)
Ayurvedic Medicines
Eatables (Biscuits, Spices, Noodles, Oats
Candies, Namkeen)
Health Care (Juices, Honey, Ghee,
Chyawanprash)
Home Care (Detergents, Dish Wash Bars)
P.T.O.

4) Rate the products you have used on a scale of 1-5 based on your satisfaction. 1 being the
least satisfied and 5 being the most satisfied.
Products 1 2 3 4 5
Cosmetics (Shampoos, Creams, Bathing Soaps,
Ayurvedic Medicines
Eatables (Biscuits, Spices, Noodles, Oats
Candies, Namkeen)
Health Care (Juices, Honey, Ghee,
Chyawanprash)
Home Care (Detergents, Dish Wash Bars)
5) Why do you use/start using/like Patanjali products?
Got influenced by the advertisements. Friend/Relative Recommended
Low Price Made in India
Good Quality Devotion towards Ramdev Baba
It is Herbal Family Influence
Others (Please Specify) _______________________________________________
6) Do you prefer Patanjali Products over other brands?
Yes No
7) Why do you not use/dislike the product?
High Prices Disbelief towards Ramdev Baba
Low Quality Satisfied with the product currently using
Prefer branded products Not aware of Patanjali products
Other products are better No particular reason
Friend/Relative asked not to Suffered from allergy or reaction after use
Others (Please Specify) ______________________________________________
_________________________Thank You__________________________

Demand Pattern and Consumer Satisfaction of Patanjali Products

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Demand Pattern and Consumer Satisfaction of Patanjali Products

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Demand Pattern and Consumer Satisfaction Of Patanjali Products

Patanjali Ayurved Limited (Patanjali) incorporated on 13th January 2006 is an

K.C. College, Churchgate Page 1

1.2 SCOPE OF THE STUDY

1.3 OBJECTIVES OF THE STUDY

 To study the satisfaction level of consumers after using Patanjali Products.

K.C. College, Churchgate Page 3

 To study the demand pattern based on demographics of the consumers buying

1.4 LIMITATIONS OF THE STUDY

 Geographical limitations (Restricted to Mumbai Region only)

2.1 REVIEW OF LITERATURE

K.C. College, Churchgate Page 4

K.C. College, Churchgate Page 5

K.C. College, Churchgate Page 6

K.C. College, Churchgate Page 7

2.2 VISION AND MISSION

K.C. College, Churchgate Page 8

2.3 THE 3 PRINCIPLES VITAL FOR GROWTH

The 3 Vital Principles That Drive Patanjali’s Business

K.C. College, Churchgate Page 9

Its business ideology is inspired by Swami Ramdev’s ideologies

The Organisation Conducts Its Business On The Following 3 Main

K.C. College, Churchgate Page 10

2.4 SHAREHOLDERS, DIRECTORS, PROMOTERS,

K.C. College, Churchgate Page 11

Name Of Shareholder %Age Of Shares Held

Acharya Balkrishna- Managing Director

K.C. College, Churchgate Page 12

K.C. College, Churchgate Page 13

Balkrishna is a recipient of several awards like Bloomberg Special Recognition Award,

K.C. College, Churchgate Page 14

Ramdev Baba- Main Promoter

K.C. College, Churchgate Page 15

Organisational Culture: Building Blocks

K.C. College, Churchgate Page 16

2.5 REVENUES, PROFITS AND SALES DISTRIBUTION MODEL

Revenues For The Past 6 Year In Crores:-

Year Revenue in Crores (Rs)

Net Profits For The Past 6 Year In Crores:-

Year Net Profits in Crores (Rs)

K.C. College, Churchgate Page 17

Net Profits in Crores (Rs)

Sales Distribution Model:-

From The Pie Chart It Can Be Inferred That:-

K.C. College, Churchgate Page 18

2.6 THE GROWTH OF PATANJALI

K.C. College, Churchgate Page 19

 In all, Patanjali manufactures 1000+ products.

2.7 SOME FACTS, FIGURES AND EXPERT OPINIONS

K.C. College, Churchgate Page 20

 A study conducted in 2012 mentioned the following drawbacks of Patanjali’s : A

products. More advertisement (41.11%) and clarity in advertisement (37.77%)

K.C. College, Churchgate Page 23

 H1 :- According to the Demographics, the maximum demand is by consumer in the

2) The level of Consumer Satisfaction observed ?

 H3 :- The level of consumer Satisfaction is neutral (3 on a scale of 1-5, 5 being

 All the questions were well understood by the respondents.

 All the answers are filled honestly by the respondents.