Case

Group 2
Patanjali takes on Industry Giants
Question 1: Analyze the Patanjali brand and the key factors for its success?
Question 2: Discuss the marketing mix at Patanjali?

Ans:
Patanjali’s marketing mix revolved around an umbrella branding strategy which had its roots in
Yoga and Patanjali Yogpeeth’s popular Ayurveda remedies.

Product:
 Initial product - Aloe Vera gel (promoted in Baba Ramdev’s yoga camps)

Food Products
Ayurvedic Health Product  Chawanprash
- Honey  Chocolates
- Ayurvedic medicines  Noodles
(Product line depth : 2)  Ghee
(Product line depth : 5)

Patanjali

Dental, Home & Skin care Products

 Detergents
 Toothpaste
 Hair Oil
 Face wash
Juices  Soap
(Product line depth : 5)

Pricing:
Pricing strategy is 15 to 20% less than the industry leaders. They followed value based pricing to price
their products against their competencies. Even though they have lower prices they maintained higher
margins through cost cutting by direct sourcing from farmers.

Place:
Wide distribution through dispensaries and health centre. Captured the recent surge of 12% selling through
drugstores and made efficient use of it. Patanjali has always made its products available everywhere and
for everyone. Not just in retails to capture the metro areas they launched their products on e-commerce and
other online sites. They even maintain their own website for selling. Their own distribution channels were
of different sizes based on their location.Use made to order strategy for low priced products.

Promotion:
Patanjali promotion relies on yoga Campus run by Baba Ramdev where people were influenced with the
usefulness of the ingredients used in patanjali products. Content marketing was one of the key strength
where customers were targeted with the help of genuine effects of the product.To increase brand
visibility,it started investing television commercials (3 billion investment in reputed agencies such as DDB
Mudra and McCann)and partnership with Future Retail Group(Horizontal integration).
Question 3: What are the various growth and expansion strategies for Patanjali?

 Umberella branding had made a variety of products available to consumers.

 Pataljali adopted a competitive pricing strategy which resulted from cheaper direct acquisition of raw
materials and passed on the monetary benefit to customers.
 It popularized and marketed its products directly to customers via Patanjali chikitshalaya, Patanjali
Arogya kendras and Swadeshi Kendras and leveraged its brand loyalty to test its new products. This
engaged the same customer to different products from its product line boosting the revenues.
 Patanjali partnered with Future Retail for modern trade as Future Retail was India’s biggest multibrand
retailer.
 Collaboration with Tetra pack International S. A (Vertical integration)
 Its Promotion strategy was focused on content advertisements which highlighted Ayurveda, natural
ingredients, and ‘made in India’ attributes of the product, which connected directly with the Indian
customer.
 International expansion through exports.