Patanjali

Introduction
Background on Patanjali Ayurved Ltd.
 Patanjali Ayurved Limited, located in the industrial area of

Haridwar, is the manufacturer of herbal and mineral products.
 According to CLSA and HSBC, Patanjali is the fastest growing and
fast-moving consumer company in India.
 Patanjali likely to double its revenue to Rs 10,000 crore in FY16
from Rs 5,000 crore in FY15
 The brand is backed by Baba Ramdev which has fuelled belief in
the brand.
 The brand has its presence in categories such as personal care,
food, home care, nutrition & supplements and health care.
 Its stellar growth has fuelled competition with other FMCG
companies like HUL, Dabur, ITC and P&G.
3
Executive Summary
Market Analysis
To sustain in the industry the company
has to reinvent itself at every step
Inbound Sales &

logistics Operations Marketing Service
 Strengthen Inbound logistics like raw material
handling & warehousing
 Increase its operational efficiency to keep costs in
control
 Increase capacity of manufacturing facilities to
cater to increasing consumer demand for its
products
 Strengthen its distribution channel to penetrate to
rural markets
 Establish its brands so that consumers make repeat
purchases and not one time purchase
 Reinventing the brands based on consumer
acceptance
 Increase its presence in digital space to suit to the
current era

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Description of Ventures
Technical Plan
Digital Marketing Strategy - Patanjali
Direction for Digital Strategy

 Overcoming existing roadblocks – FDA
issues, Hypocrisy, Shortsightedness
 Content Marketing (Yoga and Herbal
Alternatives)
 Mobile Presence
 Baba Ramdev - Influencer Marketing
Current Digital Strategy handled by

Vermillion
Communications and DDB Mudra
Current Digital footprint:
5,41,000 5.7 million likes

followers
16
Digital Marketing Strategy - Patanjali
Digital Media Activities

Social Media Marketing – YouTube, Facebook, Twitter
E-commerce (Website, ZopNow, BigBasket)
M-Commerce (Pluss –Healthcare)
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18
Marketing Plan
PRODUCT PRICING
• Started with an Aloe vera gel  Products are competitively
• Operates in four major priced at 15-20 percent lower
categories: than industry leaders
 Ayurvedic health products  Eliminates intermediaries and
 Food products & Juices their margins by sourcing raw
 Skin-care products materials directly from farmers
 Home-care products  Ensures better profitability
• Largest selling products are along with lower cost for
cow ghee, Dant Kanti consumers
toothpaste and Kesh Kanti  Uses mass customization to
• Has premium personal-care achieve economies of scale
products: Soundarya label leading to lower prices of
• More than 400 SKUs products
20
•PLACE
PROMOTION
• Uses franchise model to sell its  Focusses on content marketing:
products educating consumers about
• Outlets classified as: products
• Patanjali Chikitsalaya  Relies heavily on Ramdev’s
• Patanjali Arogya Kendra endorsement and promotions at
his yoga camps
• Swadesi Kendra
 WOM plays a major role
• Products available at 5000
 Started investing in mass media
franchise stores, 17000 retail
stores, Patanjali website and marketing, television commercials
online platforms like Big Basket  Partnered with Future Group to
and Zop Now increase visibility of its products
• Partnered with Future Group to  Worked with reputed creative
sell products at Big Bazaar and agencies such as DDB, Mudra and
Easy Day McCann and roped in Sushil
• Also has Patanjali Mega stores Kumar and Hema Malini for
targeted at A-class cities advertisements
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Organisational & Managerial
Organizational Structure
 Formalization: Guidelines based on vision
 Departmentalization
 Functional:
 Product: High quality of products
Organizational Design
 Functional Structure
The work division is based on different functions to be
followed in the organization.
Helps in cost minimization.
Type of Organization
Patanjali follows a
mechanistic culture
despite having a
dynamic environment
Growth and Expansion Strategies

“To reach our
To cater to ever growing market, Patanjali allocated
growth target, we
Rs. 3 Billion to advertising while working with
will venture into
reputed advertising agencies
new categories
 The company further is in talks to raise around Rs. such as dairy,
1000 crore in project loans so as to set up four new animal feed and
manufacturing plants khadi garments for
 As mentioned previously, they have tied up with yoga. We will enter
well-known retail chains and plan to grow to dairy segment this
1,00,000 outlets in the next few years year with the
 Company focus moving towards increasing its launch of milk,
exports to Canada, USA, Mauritius, UK among other cheese, butter milk
countries and also improve online presence and paneer,”
 Patanjali will soon be launching its mobile app, which
will allow:
- Baba Ramdev
 consumers to locate nearby outlets that are selling
Patanjali products
 Facilitate online ordering
25
Growth and Expansion Strategies
• Strategic Alliances
• Strategic distribution tie-ups with Future Group and Reliance Retail =
Instant reach
• Tie-ups with DRDO for transfer of technology in herbal supplements and
food products used at high altitude
• Loyal consumer base and competitive pricing (low pricing strategy)
• Appeal to rural-urban “aspiration and conservatism-driven”
consumers
• Anti foreign campaigns
• Indian made
• Approached retailers and portrayed advertisements stating that Patanjali’s
goods are in line with Mahatma Gandhi’s dream of promoting Indian
made goods
• No financial burden and minimal advertising budget
26
Expansion Strategies
Patanjali attacked the Market leader in each category
Flank Attack – Dabur Honey
Frontal Attack – Maggi Noodles
Encirclement Attack – Britannia Biscuits
Bypass Attack – Colgate Toothpaste
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Management Team Background
Managing Acharya Balkrishna

Director
Director Mukta Nand
Director Ajai Kumar Arya
Director Rakesh Mittal
Director Sumedha
Company Shashi Chandra Jha
Secretary
Assessment of Risk
Financial Plan
REVENUE
Year Revenues (In crore Rs)
 2009-10 163
 2010-11 317
 2011-12 446
 2012-13 850
 2013-14 1,200
 2014-15 2,006
 2015-16 5,000
 2016-17 10,000 (Target)
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Appendix (Contains Backup
Material)
Market Research Data
Thank You

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Introduction

Background on Patanjali Ayurved Ltd.

 Patanjali Ayurved Limited, located in the industrial area of

Inbound Sales &

Direction for Digital Strategy

Current Digital Strategy handled by

5,41,000 5.7 million likes

Digital Media Activities

Flank Attack – Dabur Honey

Frontal Attack – Maggi Noodles

Encirclement Attack – Britannia Biscuits

Bypass Attack – Colgate Toothpaste

Managing Acharya Balkrishna

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