Disruptive Stream of Patanjali

Persistence towards Make in India

What do you understand when you read: “Prakriti ka Ashirwad”?

“Well by Prakriti, first thing comes to our mind is natural, healthy & safe and ‘Ashirwad’ is something which comes free across border i.e. affordable and acceptable.”

What is Patanjali?

Published by Financial Express on 5th Jan, 2016

Patanjali is a FMCG company offering natural and safer products at tax-free and subsidized prices caters to middle and upper middle class families who prefer Ayurveda products. Founded by Baba Randev in 2006, the company now valued at Rs 5000 crore (USD740 million) giving a cut throat competition to leading FMCG giants such as Dabur, P&G, Marico, Nestle Ltd, HUL, Himalaya.

Patanjali’s Strategy?

The USP (Unique Selling Point): the term ‘Patanjali’ has its deep association attached to PAN India Appeal across segments and divides — be it economic, demographic or geographic. The name itself happens to have cultural and religious connotations going back millenniums. What made this brand so bigger in size is their distinct & unique product, place, pricing and promotion in the market, which is called as the ‘Marketing Mix’ elements. Let us look at these elements in brief:

Product Mix:

· Image Creation (Strong Brand Ambassador): Looking good is everybody’s dream. In today’s era, getting good looks by just adjusting the way one inhales and exhales is something everyone would prefer doing. Swamiji’s unique contribution has been a solution to the ordinary people to lead a healthy life through the practice of simple breathing exercise. This helped Patanjali to build his brand image in the mind of targeted audiences. Starting from the Yoga services to free medicines to consumer products, Patanjali has made its mark across FMCG.

· Variety of Products: Patanjali offers variety of products across Ayurvedic, Food, Cosmetics, Beverages, Clening Care, Personal Care, etc. focusing majorly on the quality claiming it to be natural, herbal and safe. It is adding more and more products by consistently observing the dynamics of Indian market e.g: when Maggie Scam has happened, Patanjali introduced ‘Atta Noodles’ capturing the bigger portion of market share. The list of products is huge, log on to know more: http://patanjaliayurved.net/

Place Mix:

· Spreading Wings Across Borders: Patanjali has a manufacturing unit in Nepal and is also import herbs from Himalayas in Nepal, the well-established trade relations is helping expand its wings to Nepal with great ease.

· Higher Margin in the Products: the penetration level of Patanjali’s product will rise, as the margin in the product are higher. Starting from the dedicated Patanjali’s Stores, the products are now available at the retail stores as well as at the medical stores.

· Strong Distribution Channels: initially, Patanjali relied on their own distributors, Chikitasalyas (Franchise Dispensaries) and Arogya Kendras (Health Centers which sell Ayurvedic remedies) run by their trained and certified ayurvedic medical practitioners. However, now the distribution channel has multiplied manifold that it is now available online making their penetration even further.

Promotion Mix:

· Educating Consumers: Brand Ambassador took the opportunity in his hand to educate people by sharing the price gap information and benefits of using herbal products. Baba Randev has ceased the opportunity with both hands and has made huge difference to the branding.

· Ad Campaign: Patanjali’s Ad Campaign always focus on surpassing information to people that “Revenue is for the charity and not for the Brand Owners”. Moreover, the revenue will remain within India and not to the foreign companies. Until now, there were no alternative available but now we do have localized products.

· Excellent Word-of-Mouth Publicity: Be it any brand, word-of-mouth publicity works best. In case of Patanjali, Customers share their positive experiences resulting in building the goodwill of the company and increasing sales.

Pricing Mix:

· Price Comparison: Patanjali is using ‘Price Comparison’ as an effective marketing strategy. Moreover, the ingredients are natural and domestic; hence, the cost of production is lesser too. Since its products are subsidized and tax free by the government making it more price effective in comparison to the international brand.

“The biggest question is whether this MAKE IN INDIA move by Patanjali would stimulate or prevent Nation’s growth?”

Well a coin has two sides; similarly, the implications of rising Patanjali’s market share in FMCG segment are twofold. Some people claim this rise as a prevention to nation’s growth because it may result into monopoly in the Indian FMCG market; due to lesser prices, other firms will not enter in to the market; which may lead to unemployment. They also added saying government income is affecting since its product are tax-free.

My argument is why we do not look at the rise in a positive direction by considering its advantages such as if Patanjali’s market share will further increase, the entire money will remain within economy. If Patanjali spread its wings outside India, then it would increase the export level for us helping in meeting the deficit amount. As far as employment is considered, the bigger this rise will be, greater would be the job opportunities. Look at the wider picture, where not only FMCG but also other segments should grow similarly. Of course, the balance is required — after all the motive of Make in India is not to boycott FDI (Foreign Direct Investment) completely, it is rather making India self-reliant and self-sufficient.

“We need to understand that FDI is not the only source to have Economic Drivers, sectorial growth and employment generators. By promoting Indian products and services across borders, it would not only make India self-sufficient but also stimulates India’s growth to move more closely in becoming the Supreme Power in the near future.”
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