COMPETITIVE STRATEGY
PATANJANLI AYURVED
Submitted by
•Chaitali Phutane (IPMX 16068)
•Jatin Mittal (IPMX 16077)
•Mohit Gupta (IPMX 16081)
•Munish Kanna (IPMX 16083)
•Nikhil Vardekar (IPMX 16084)
•Saurabh Malay (IPMX 16097)
Patanjali Ayurveda (PAL) is an India based consumer
and FMCG company, headquartered in Haridwar
(Uttrakhand)
It was started by Yog guru Swami Ramdev and
Acharya Balkrishna in 2006.
Introduction
The company manufactures mineral and herbal
products.
Patanjali most sold product is Cow(Ghee) with sales
of (1467 Crores), followed by Toothpaste (940
Crores) and them Shampoo (850 Crores).
Environmental Analysis - Macro
POLITICAL
• AYUSH ministry created in 2014 that promoted research of alternate medicine. Overall expenditure on health care products increased to
12%
• Make in India, Startup India is promoting new startups that can do local manufacturing and generate more jobs
ECONOMIC
• Growth in disposable income in rural areas has improved rural area share to 35%, Personal hygiene products increased to more than 50%
in rural areas, packaged food, toothpaste market grew to 21% in rural areas and more than 70% in Urban
• Company works on the principle of ‘swadeshi’ product. Sources raw materials directly from farmers and thus eliminates margin.
SOCIAL
• Education & Awareness across the country improved spending. Household and personal care to 26% in 2022, Healthcare to 47%, F&B to
23%
• Through yoga, Baba Ramdev has a huge following impacting the marketing of Patanjali. Consumers are promised chemical free and
swadeshi products.
TECHNOLOGICAL
• Government is supporting the technological advancements in medicine and ayurvedic field specifically.
• Patanjali Research Foundation was started as a part of Patanjali Yogpeeth in Hyderabad that aims at providing rich quality Ayurvedic
products and medicines.
LEGAL
• The Medicine Central Control Act 1970, The Drug and Cosmetic Act 1940, The Drugs and Magic Remedies Act 1954 etc are laws that govern
Patanjali and keep regulatory check over it.
ENVIRONMENTAL
• With its aim of producing chemical free products, Patanjali contributes to the environment.
• Focus on creating natural products with minimum or no artificial interference.
Environmental Analysis - Micro
Threat of New Entrants
Low
• High Capital Requirement
• Brand Recognition
• Regulatory Requirements
Bargaining power of Suppliers Low Rivalry Among Existing Firms
Bargaining Power of Buyers Moderate
• Limited ayurvedic brands in market to supply – High
Dabur, Himalaya. • Brand reputation & customer trust
• Many FMCG companies competing for the same
• Own farmlands • Limited alternatives for ayurvedic products – Dabur,
customer
• Develop long term relations Vicco
• Product differentiation is less at functional level
Threat of Substitutes
Moderate
• Natural & Herbal ingredients – Unique Selling
Proposition
• Difficult to break into FMCG ayurvedic market
Segmentation
DEMOGRAPHIC
• All age groups like Health drinks for children, beauty products for young generation
e.g. Kesh Kanti, ayurvedic products for elderly people, e.g. Different Churnas
• Initially lower and middle-class income groups but later Upper-middle and Upper-
income groups also
GEOGRAPHIC
• Mostly North Indian Market, not prevalent in South India
• Exported to Canada, USA, Mauritius, UK etc.
PSYCHOGRAPHIC
• Those who follow Baba Ramdev’s Yoga and take him as ascetic model in life
• Those who want to live a herbal lifestyle and use Swadeshi products
BEHAVIOURAL
• Those who are inclined towards ayurvedic and herbal medicines, are benefitted by
them become their loyal customers
FIRMOGRAPHICS
• Those who want to support small Indian businesses
Targeting
• Patanjali Ayurved Limited (PAL) sells a wide range of products, including natural health care, food, home care, Paridhan
(fashion), copperware, stationery, and organic agricultural products.
• Currently, PAL is catering to MASS (undifferentiated) market – Total market coverage targeting strategy
• Based on the segmentation of PAL’s current market, the major segments PAL has been focusing on are Demographic and
Psychographic
• PAL's products are particularly popular with low- and middle-class consumers who are looking for affordable, high-
quality products.
• PAL has also captured a large share of the market by targeting health-conscious consumers who value natural, organic
& ayurvedic products and patriotic Indians who believe in supporting ‘Swadeshi’ - Indian-made products.
• Going forward, PAL should focus on expanding its global reach and targeting middle- and upper-class consumers.
• Indian household belonging to upper-middle class and high class is forecasted to grow from 69M in 2018 to 197M in
2030 ⁱ
• The global ayurveda market is set to grow by USD 6.81 billion from 2021 to 2026, progressing at a CAGR of 15.32% as
per the report by Technavio. ⁱⁱ
• https://www.weforum.org/agenda/2019/10/future-of-consumer-spending-in-india/
• https://www.prnewswire.com/news-releases/ayurveda-market-to-grow-by-usd-6-81-bn-from-2021-to-2026--evolving-opportunities-wi
th-bacfo-pharmaceuticals-india-ltd--charak-pharma-pvt17000-technavio-reports-01457097.html
Positioning
Patanjali Ayurved Limited (PAL) states that the company was established with a thought of rural and urban
development and it’s a thought of creating a healthy society through Yog and Ayurved. ⁱ
• PATANJALI - “Prakriti ka Aashirvaad”
Patanjali has differentiated itself as an Ayurved company offering natural and organic products that are
accessible to all at affordable prices.
• PATANJALI - “Swadeshi” - Made in India Products
PAL has positioned itself with an USP - ‘Selling natural and healthy products solely made in India’ with a
mission towards making India an ideal place for the growth & development of Ayurveda and a prototype
for the rest of the world. ⁱ
• Brand Identity
The brand's focus on natural ingredients, Ayurvedic expertise, affordability, and Swadeshi, coupled with
Baba Ramdev's endorsement, has strengthened the brand's credibility and appeal, solidifying its position as
a leading Ayurved FMCG brand in India.
https://patanjaliayurved.org/vision-mission.html
Perceptual Mapping
The following perceptual mapping of Patanjali Ayurved Limited. has
been done considering three top seller products of Patanjali in India.
As per Annual Report 2021, Patanjali’s most sold
products are Cow(Ghee) with 16%, Toothpaste with
10% and Shampoo with 9% of total sale. These three
products contributes to around 35% of the total sales.
Not to Scale
Consumer Insight
• High Consumer Satisfaction:
Consumers exhibit significant satisfaction due to perceived value, health benefits,
and product quality.
• Target Demographics:
Strong appeal among younger demographics and lower-income segments,
highlighting broad market accessibility.
• Extensive Market Penetration:
Patanjali enjoys widespread recognition, capturing a substantial market share
exceeding 70%.
• Product Preference:
Dental care products lead as a preferred category, followed closely by skin care, hair
care, and Ayurvedic medicines.
• Price Sensitivity & Loyalty:
Competitive pricing strategy contributes to strong brand loyalty, with consumers
remaining loyal even with potential price changes.
Patanjali has a diverse product offering in its marketing mix. The product range of
Patanjali had more than 900 types of items including food and FMCG items, personal
care, oral care, healthcare, clothing, etc. Patanjali also produces medicines and, as per its
sources, all its products are ayurvedic and free of harmful chemicals.
Patanjali food product range includes biscuits, noodles, cornflakes etc. Patanjali has 300+
medicines for treating many ailments and body conditions, from common cold to
paralysis. Hence, this gives an insight in the product mix of Patanjali. The company has
been constantly innovating its product line in the FMCG industry.
Product • Focus on Natural and Ayurvedic Ingredients: Emphasize the use of natural ingredients and
traditional Ayurvedic principles in its products. This appeals to consumers seeking natural
Strategy and holistic health solutions, differentiating them from synthetic-based alternatives.
• Wide Product Portfolio: Patanjali offers a diverse range of products across various
categories, including food, personal care, healthcare, home care, and even clothing. This
vast portfolio allows consumers to find a variety of Patanjali products for their everyday
needs, strengthening brand loyalty and reducing dependence on competing brands.
• Quality and Purity: Patanjali emphasizes strict quality control measures and claims that its
products are free from harmful chemicals and additives. This focus on purity attracts
consumers seeking safe and healthy alternatives, especially for sensitive products like
cosmetics and food.
• Innovation: While Patanjali's core focus remains on traditional Ayurvedic principles, they
also invest in research and development to adapt their products to evolving consumer
needs and preferences. This allows them to maintain their competitive edge and cater to a
wider audience.
• Biscuits
• Cookies
• Noodles
• Breakfast Cereals
FMCG • Nutraceuticals
Patanjali Product Mix • Soya Protein
• Edible oils
• Oil Palm Plantations • Skin Care
• Oleochemicals • Dental Care
• Hair Care
Personal Care
• Body Care
• Eye Care
• Eye, Ear and Oral Care • Baby Care
• Balm & Inhaler
Health Care
• Medicinal Oil
• Syrup
• Stationery
Others • Copperware
• Paridhan/Clothing
Pricing Strategy
•Patanjali Ayurveda has employed Cost Leadership Strategy to differentiate its
products in pricing:
•Baring few products, Patanjali's products are typically priced 10-30% lower
than those of established brands such as HUL, Colgate-Palmolive, Nestle, ITC,
Dabur etc. Patanjali has adopted following factors to offer the lower prices:
• Reduced Manufacturing Costs: Patanjali through Ruchi Soya owns its
manufacturing facilities and avoids costly intermediaries, allowing them to
control production costs and offer lower prices.
• Streamlined Distribution Network: Patanjali leverages its own distribution
network, bypassing traditional wholesalers and retailers, further reducing
costs and allowing for lower consumer prices.
• Sourcing of Raw Material locally: Patanjali focuses on utilizing readily
available and locally sourced natural ingredients, avoiding expensive
imported ingredients that often inflate product costs.
• Minimal Marketing and Advertising: Patanjali relies primarily on Word-Of-
Mouth (WOM) marketing and its association with Baba
Ramdev, significantly reducing marketing expenses and allowing them to
offer lower prices.
Pricing Strategy
• Affordability focus: The major business of Patanjali is in India where majority of its consumers are price-sensitive
markets and highly conscious of value. It has allowed Patanjali to capture a significant market share from established
brands, especially among lower-income consumers.
• Targeted Pricing: While maintaining generally lower prices, Patanjali also employs targeted pricing strategies for specific
products. For instance, some premium products like Patanjali Ghee are priced closer to established brands, catering to
consumers willing to pay more for perceived quality or specific benefits.
• Competitor Price Monitoring: Patanjali closely monitors its competitors' pricing strategies and adjusts its own prices
accordingly. This ensures they remain competitive while maintaining a profitable margin.
• Cost-Cutting Strategies: Patanjali implements various cost-cutting strategies throughout its operations, from
procurement to packaging, to further reduce production costs and maintain its price advantage.
• Bulk Packaging: Patanjali offers larger pack sizes at discounted prices, encouraging consumers to buy in bulk and save
money.
• Seasonal Offers and Promotions: Patanjali frequently utilizes seasonal offers and promotional discounts to attract new
consumers and boost sales.
In long run, maintaining quality at a lower prices could be difficult. Additionally, relying primarily on lower prices may lead to
profit margins being squeezed, especially in a competitive market.
Overall, Patanjali's price penetration strategy combined with promotion strategy has been a key factor in its rapid growth
and market success. Their focus on affordability and value has resonated with consumers, and they have successfully
challenged the pricing strategies of established brands. However, maintaining this strategy while ensuring quality and
profitability will be crucial for Patanjali's continued success in the long run.
Pricing Strategy Toothpaste Brand Price (Rs)/100 g
Desi/Cow Ghee Product Price (Rs)/1000 ml
Patanjali Dant Kanti Natural Patanjali 60
Patanjali 665 Meswak Complete Tooth & Gum Care Dabur 70
Anand 675 Dabur Red Dabur 70
Colgate Swarna Vedshakti Colgate 75
ITC 785 Vicco Vajradanti Ayurvedic Vicco 82
Mother Dairy 685 Colgate Herbal Colgate 95
JIVA AYURVEDA Ayurfresh Jiva 99
Dabur 675
Country Delight 943
Chyawanprash Product Price (Rs)/1000 g Honey Price (Rs)/1000 g
Patanjali Chyawanprash 360 Patanjali Honey 350
Dabur Honey 430
Dabur Chyawanprash 378
Zandu Honey 475
Zandu Chyawanprash 383 Baidyanath Honey 475
Baidyanath Chyawanprash 348 Safolla Honey 430
Himalaya Chyawanprash 350
Promotion and Distribution Strategies
•Promotion
• Face of the brand is Baba Ramdev, who has a strong following as yoga guru and known for
promoting culturally rooted lifestyle. This allows modern consumers to connect with the traditional
roots.
• Patanjali does not invest in heavy marketing and promotions that involve celebrities. This aligns with
the brand's vision of minimalism while also keeping the marketing expenses low.
• There is a conscious effort to reach out to tech-savvy consumers through social media platforms
such as Twitter and Instagram. Patanjali as 92k and 770k followers on Twitter and Instagram
respectively, as on 1st December, 2023.
• Along with digital media, Patanjali also utilizes conventional media such as television, sponsorships,
and print media to reach out to its customers.
• Sales promotions and free sample distribution for personal care and food products allow consumers
to try the products before purchase.
• Patanjali is involved in various CSR activities such as organic farming, rural development, and
education which creates positive brand image with socially aware customers.
•Distribution
• Patanjali has multi-channel distribution network that includes own retail stores, e-commerce, and
third party retailers.
• Penetration in tier 2 and tier 3 regions provides accessibility to consumer segments that are not
catered by established players.
• https://www.bqprime.com/business/2017/05/31/products-that-helped-patanjali-become-ind
ias-no-2-consumer-goods-maker
• https://pricee.com/patanjali-products-list#:~:text=The%20company%20uses%20Ayurvedic%2
0practices,900%20products%20across%20various%20categories
.
• https://www.patanjalifoods.com/annual_report/PFL_IR_22_23.pdf
• https://www.patanjaliayurved.net/
• https://www.scribd.com/presentation/514709096/Mm-Ppt-Patanjali-Final
References
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• Consumer Perception: A Case study of Patanjali Products by Prof. Siddhesh S. Narvekar
in Special Issue Published in Int. Jnl. Of Advanced Networking & Applications (IJANA)
Thank you
