MRKT20019 Marketing Management: Patanjali Ayurved Company Report

This report provides a comprehensive overview of Patanjali Ayurved Limited, an Indian FMCG company known for its Ayurvedic products. It covers the company's business overview, product portfolio, revenues, production facilities, sales, and distribution channels. The report discusses Patanjali's primary marketing strategies, including leveraging the brand image of Baba Ramdev, smart pricing, and effective brand communication. It also examines the company's growth and demand inclination, advantages of a visible brand, and trust of retail outlets. Furthermore, the report proposes future strategies such as focusing on rural markets and exports. The analysis highlights Patanjali's success in establishing itself as a major Ayurvedic brand by capitalizing on opportunities, building a strong fan base, and offering products at competitive prices.

Running Head: MRKT20019 MARKETING MANAGEMENT
MRKT20019 Marketing Management
Student’s Name
University Name
Author’s Note

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Table of Contents
Introduction......................................................................................................................................3
Business overview of Patanjali Ayurved Limited........................................................................3
Product portfolio..............................................................................................................................3
Revenues..........................................................................................................................................3
Production........................................................................................................................................4
Products...........................................................................................................................................5
Sales and distribution.......................................................................................................................6
Discussion........................................................................................................................................6
Primary marketing strategies.......................................................................................................7
Growth and demand inclination of the Patanjali products...........................................................7
Advantage of a visible brand.......................................................................................................9
Smart pricing................................................................................................................................9
Brand communication strategies................................................................................................10
Trust and Faith of the retail outlets............................................................................................11
Future propositions and recommendations....................................................................................11
The rural Push............................................................................................................................11
Focusing on Exports...................................................................................................................12
Conclusion.....................................................................................................................................12

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Reference List................................................................................................................................13

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Introduction
Business overview of Patanjali Ayurved Limited
Patanjali Ayurved is an FMCG company from India, whose headquarter is in Haridwar.
Starting its journey from 13th January of 2006, the majority of state has remained with Acharya
Balkrishna who also occupied the position of the Managing Director of the organisation. He had
92% stake in the company with the rest 8% being in the hands of an NRI family from UK.
Image: Patanjali Market Share
Product portfolio
The organisation is responsible for manufacturing and distribution of various products
ranging from food and beverages to cosmetics as well as fabric care also. Starting from the initial

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days of its operation, the organisation has rapidly advanced and expanded to reach various target
segments and in the current time it operates with a plethora of Ayurvedic brands
Revenues
Chart 1: Revenue
(Source: Yadav and Tikoria 2017)
Production
Patanjali food as well as the herbal Park of Haridwar is the primary production facilities
that are operated by Patanjali Ayurved. The future business plans of business organisation

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include the establishment of more business units in India as well as in Nepal. In 2016, herbal
Park as well as Patanjali foods receives full-time security cover buy 35 Central industrial security
force Commandos of India. The executive director of the farm, Baba Ramdev receives Z
category protection from the central Paramilitary forces also.
Products
The products of this organisation can be digested in categories like personal care as well
as food. There are almost 450 products which include 45 categories of cosmetics, 30 categories
of food and so on (Thomas and Vatavwala 2019). According to the official records of the
company, the products that are manufactured by them are developed from Ayurveda as well as
other natural components. Beauty and baby products have also been launched by the organisation
in recent times. Most importantly, manufacturing division of Patanjali Ayurvedic has patent for
more than 300 medicines which can cure arrange of diseases as well as poor body conditions
starting from common cold to chronic paralysis.
In fact, in the last month of 2015, day launched instant noodles in the market. However
the food safety and security Authority of India, and the production of instant noodles under
Patanjali brand name as neither Ayush nor Patanjali foods, the two subsidiary production
companies of Patanjali Ayurvedic Limited, had the rights of manufacturing instant noodles under
their brand name (Gupta 2016).
In the year 2016, Patanjali announced that we are going to enter the textile
manufacturing. Initially starting with manufacturing of traditional Indian clothes like kurta
pajama, which purest linen available in the country, the company has gradually shifted to
production of Western clothing also.

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In 2016, the organisation announced that a new manufacturing division of Patanjali
herbal as well as Mega Food Park was going to be established in Balipara, Assam with an
investment of at least 1000 crore INR and the manufacturing capacity of the plant was going to
be 1 billion tons of average goods every year. The manufacturing plant of Patanjali in Assam has
started operating partial, and after it is completed it is supposed to be the largest facility of the
company in India. It is not worthy that they have already 50 manufacturing units across the
country.
Sales and distribution
Patanjali Ayurvedic limited has nearly 8000 retail outlets as of 2018. They have also
developed their E-commerce website for online sales of their product and currently the
organisation is also target in railway station as well as airports. Patanjali Ayurvedic limited has
also collaborated with the Pittie group as well as Kishore Biyani’s Future Group in 2015 (Sen
and Rajagopal 2017). This give a big strategic whose to the organisation as Patanjali products got
the licence of selling their Ayurvedic items in separate counters in all the Future Group outlets in
India and even outside India. The products of Patanjali Ayurveda are also available in the
modern trade stores which include the likes of Hyper city, Reliance Retail commerce Star Bazaar

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as well as other online channels of Patanjali Ayurvedic which has been co-founded by yoga guru
Ramdev. The current sales target for the financial year 2018-19 is rupees 14000 crore INR
(Arora, N., Singh and Grewal 2016). Ranging from the year 2015, the sales of the company has
increased by about one 150% (Sengar, Sharma and Agrawal 2017). The annual increment rate of
the organisation had been an average value of 5000 crores INR (Pandey 2017).
The FMCG division of the organisation also operates dealership as well as distribution
ship mode of business of the country and this franchise basis of organisational growth is
expected to acquire meaning of overseas distribution channels also, with time.

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Discussion
Primary marketing strategies
The industrial sources Review that the market share of Patanjali is supposed to be around
8% at the end of the year 2018 and this can be considered to be big success in this category
which herbal products, Lever Ayush as well as Patanjali Ayurvedic industry market players
operating in the market of Ayurvedic products in India in the current moment.
They are likely to be able to you double dare revenue accumulation starting from rupees
5000 crores in 2016 and still ranging at about rupees 12000 INR in financial year 2018-19 (Singh
and Gopal 2016). This is evident from the data source of Reliance Securities. Operating about
9000 retail outlets in India, the organisation is also planning to implant there stores at all major
railway stations as airports.
Growth and demand inclination of the Patanjali products
Patanjali Ayurvedic to only 5 years to establish itself as a major Ayurvedic brand in the
country since the demand for Patanjali products has declined enormously. The grand success that
has been acquired by the organisation is because of specific factors. They have adopted the
opportunity strategy of growth. According to the information provided by Sharma et al. (2019),
we can observe that in recent times Patanjali skimmed an opportunity and launched the attached
noodles product. The time it was launch, clearly show that the launch of the product was
intended to give challenge to their biggest competitor in the field of instant noodles in India,
Maggi noodles. Nestle work facing issues from the scandal of presence of excessive
monosodium glutamate in the negatives makers and which is why the product was temporarily
banned in India.

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The entire product was ultimately band, because of the lack of legitimacy to sell products
like girls under the brand name of Patanjali Ayurvedic the organisation showed us how to
capitalise on business opportunities (Pandey and Sah 2016). This is definitely example of
innovative market reception and proprietorship. The readiness with which the instant noodles
product was launched in the market, in the short span is really remarkable.

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The primary strength of the company is that they have been able to develop a strong fan
base and trust of the followers. The organisation has been able to achieve this, keeping the image
of Baba Ramdev as a Yoga guru in the front. Before the brand was established by Balakrishnan,
and before they had entered into the domain of full-fledged marketing activities, a large number
of people in India had associated godliness with him. Nevertheless it can be expected that people
who trust him and following this blind followership, Baba Ramdev innovated the problem of
finding the solutions of day-to-day life with the products of Patanjali. The marketing campaign
of the products was also done in such a way so as to convey that each of the products was giving
relief to the public from artificial product consumption. For evidence, whenever any medicine
was launched, the competition was directly made with the other leading brands in the market,
without taking their names (Jaggi and Ghosh 2017). It was conveyed that the original medicinal
formula is present in very less proportion in the conventional medicines because of which they
are least effective. On the contrary, Ayurvedic medicines developed by Patanjali Ayurvedic
Limited were portrayed to be developed from original ingredients, which were perhaps never
before used by any other Ayurvedic company in India. It was portrait that every single formula
of products in Patanjali Ayurvedic Limited was handmade by Baba Ramdev. It was hardly true,
yet with the high faith people had in him, major section of the people watching the
advertisements seemed to believe that only.
The strategy of “telling is the new selling!” had been adopted by Baba Ramdev. The
unique point of sales was that instead of emphasizing on sales of Patanjali products, he started
the advertising campaign in order to build relationship of the customers with the products. that is
why in most of the advertisements, it was displayed how the Patanjali products generated values
for the family and the individual family members. For evidence, in the advertisement for