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Expanding Acceptance and Outreach: A Case of Patanjali Ayurved Products

Article · March 2018

DOI: 10.21844/smsjei.v5i1.15139

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 Expanding Acceptance and Outreach: A Case of
Patanjali Ayurved Products
SMS Journal of Entrepreneurship & Innovation
5 (1) 79 - 91
https://doi.org/10.21844/smsjei.v5i1.15139

Ritesh Dwivedi*

Abstract:

Customers of this era have turned out to be more worried about their wellbeing and furthermore slanted to
keep up personal satisfaction which is reflected through the special utilization of those items that ensures the
great condition of their wellbeing and additionally give most extreme fulfilment. In quest for a healthy way
of life Indians have turned out to be more disposed to Ayurvedic or Herbal treatment as an option for
common cure. This specific inclination has been in charge of exceptional prominence of Baba Ramdev's
Patanjali Ayurvedic items. In today's hugemarket with changing client needs, Baba Ramdev has built up a
special mix of innovation with Ayurveda, affordable pricing, easy accessibility under the brand Patanjali to
pullthe market. The Ayurveda theory and the key to healthy lifestyle has attracted many customers and
changed their perspective about their lifestyle and product usage. Purpose of the study is to evaluate the
preference of Patanjali over other leading products while understanding the its marketing mix. The
consumer belief in natural and herbal products has become stronger day by day and created huge change in
customer preference over other brands.

Keywords:Patanjali Products, FMCG, Herbal Products, Marketing Mix, Patanjali Ayurved

1. Introduction getting a serious attraction from across the world as

well as Indian government and policy makers.This
In ancient Vedic culture of India, Ayurved is really study has been taken to understand the expansion
considered by many to be the most established of patanjali.
mending science. In spite of the fact that
individuals living in India have depended on 1.1 Patanjali Ayurved
customary Ayurveda practices to recuperate
everything from barrenness to stomach related Patanjali Ayurved is a big name in Indian FMCG. It
problems for quite a long time. Maladies are specialises in all natural herbal products with an
created because of despicable eating and way of insight to provide nature's best to their customers.
life overlooking one's particular body sort, age, and Their all natural approach has stormed the Indian
condition. By following ayurveda practices one market and is planning to make it big in overseas
can build up a flawless harmony amongst internal too. Baba Ramdev who establishes patanjali strives
and external world personality, body, and soul. It is towards the objective of bringing ancient wisdom
not only providing healthy way of living one's life of Ayurveda with a hint of latest technology. From
but presenting a roadmap of avoiding critical personal care to food products patanjali is standing
diseases at the same time. Ayurveda has been staunch and tall, head to head with leading global

*Assistant Professor, Amity Business School, Amity University UP, NOIDA, Email: ritesh_hariom@rediffmail.com
Vol. V, No. 1; December-2018
80 [ ISSN 2349-7920 ] SMS Journal of Entrepreneurship & Innovation

products. It has grown beyond expectations and achieve the better revenue in the country. It can be
touched the gross revenue of Rs 100 billion, found on the shelves of reliance fresh, Hypercity
whereas its competitors are now understanding and and in the corner of a small grocery shop in a
analysing about the reasons of their losses (Ahmed village. Patanjali products are 20-30% cheaper
et al, 2018). than other products because of supply chain
strategy and they are getting raw materials
Patanjali Ayurved Limited is the main Ayurvedic directlyfrom the farmers.Patanjali has ventured
Company in India established in the year 2006. with online e-commerce also to attract the young
Patanjali Ayurved Limited produces an extensive users in today's digital world. Patanjali stands to
variety of Ayurvedic products catering to home gain through its approach and justifying the theme
care, basic supply, individual care, human services, of “Prakriti ka Aashirwad”.
drug, dietary items etc.
1.3 Market Highlights
1.2 Unique Outreach
In its report IIFL said “ Patanjali Ayurved Ltd has,
Yog Guru baba ramdev has enormously single in a short span of less than a decade, recorded a
handed has shaken the Indian market with patanjali turnover higher than what several companies have
ayurved. His teachings and philosophy plus the managed to achieve over several decades. There is
marketing strategy are working wonders. He no doubt that Patanjali is a disruptive force in the
started off as an yoga expert and became a business FMCG space and is a credible threat for the
tycoon in recent years with Patanjali his grand idea incumbents.” IIFL study has its view that patanjali
to promote swadeshi and herbal products which are product's unique focus on ayurved and natural
safe for mankind. ingredients has made them very attractive and
consumers are feeling good while purchasing these
The swadeshi agenda has worked well for the Yog products. Patanjali strategy is based upon selling
guru as he is able to invade such areas where other products on nationalism theme and sales of 20000
brands were nowhere to be found. He targeted the cr. by FY 20 are looking possible (Rukhaiyar,
heavily populated rural belt which acquires the 2016).
major consumption of patanjali products and
provided them a pocket friendly, natural solution It is evident from the graph shown below that sales
for their household. revenue crossed 10000 cr and projection for next
year is 20000-25000cr range (refer the Fig 1).
Patanjali has made its mark and is striving to

Vol. V, No. 1; December-2018

Expanding Acceptance and Outreach: A Case of Patanjali Ayurved Products 81

Fig. 1

Patanjali's Performance Revenue in Rs Crore

Patanjali Ayurved reported
sales of Rs. 10.561 crore in the
20,000-25,000
year to 31 March, almost five (Projected)
times its 2014-15 sales. It is
targeting sales of Rs 5,000
crore from the apparel
business alone in 2018-2019

10,561

5,000
1,184 2,006
317 453 841
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Souce: Registrar of Companies, Patanjali

Colgate has been affected very highly and sales of down as patanjali products are priced cheaper than
other players like ITC, Godrej etc have also come their competitors

The New Pecking Order of IndianFig.

FMCG2 Patanjali's Bestsellers
Company Trailing Four-Qtr Revenues (` Cr) Revenues (` Crore)
% of the Total
HUL
PATANJALI Ghee 13.9
ITC* 1467
NESTLE INDIA
GODREJ CONSUMER GROUP
Toothpaste 8.9
BRITANNIA INDUSTRIES 940
DABUR
Ayurvedic
TATA GLOBAL BEVERAGES 8.2
Pharmacy
MARICO
870
COLGATE-PALMOLIVE
GSK CONSUMER HEALTHCARE Hair Oil 7.8
EMAMI 825
P&G HYGIENE & HEALTHCARE
Herbal Soap 5.4
JYOTHY LABS
574
BAJAJ CORP
Source: Company Report
Complied by ETIG Database *Non-cigarette FMCG segment

As shown in fig 2, ghee (13.9 %), toothpaste Rs 40,000 crore private security business, Patanjali
(8.9%)Ayurvedic pharmacy (8.2 %) and hair oil is going to launch its own private security business
(7.8 %) are the principle donors to Patanjali's with help of professionals under the banner of
turnover.Patanajli products are available in Parakram Suraksha Private Limited (Business
different categories and posing a good challenge to Today, 2017).
other FMCG companies.
1.4 Objective of the Study
Patanjali is coming with its packaged drinking
water brand 'Divya Jal' and they are hoping good Objective of the study are listed below.
sales for it.They have jumped in dairy sector and  To study the consumer's awareness and
their cow milk is getting good reviews. Eyeing the preference towards Patanjali over other leading
Vol. V, No. 1; December-2018
82 [ ISSN 2349-7920 ] SMS Journal of Entrepreneurship & Innovation

ayurved product brands. andalthough they all have comparative items

 To analyse the different aspects of marketing accessible at practically comparable costs,
outreach of Patanjali Ayurveda products. Patanjali is attempting to demonstrate itdifferent
through their showcasing systems.
1.5 Limitations of the Study
“If babas and swamis are willing to become brand
ambassadors, then obviously there will be a large
 The research is limited to the people in
number of devotees who will follow their advice.
researcher's network as the questionnaire link
However, I think by doing this they will be seen as
was sent to people through mails also. My
commercialising their image, which will have a
network includes family, friends and their
negative effect,” said advertisement guru Alyque
knowns.
Padamsee.
 Research is based upon the NCR region only the
sample size of 100 out of ayurvedic products
Patanjali has actually developed its customer
users. Respondent's age group was also mixed no
communities. It is selling its ayurvedic treatment
specific group has been targeted.
services through Yogpeethand yoggram and
treating people across the geographies covering not
2. Literature Review
only normal but lifestyle problems also (Acharya,
2011).
There is great demand for herbal and ayurvedic
medicine in the developed world as more and more Khanna (2015) find a large section of the user
people becoming aware of the side effects of satisfied with Patanjali products. Majorfactors
English medicine.Developing countries like India behind this are reasonable price of the product and
and China do have enormous opportunity in this easily availability with accuracy in treating the
area because of their traditional knowledge and problem.
practices in this sector (Gadre et al, 2001).
Patanjali's products are cheaper than others and
A WHO (World Health Organization) study shows very low expenses on its advertisements are key
that natural products are preferred by 80 percent of feature of Patanjali promotion strategy.At the same
world population for their health care instead of time, other leading FMCG brands are spending a
allopathic medicines as they have dangerous side lot on advertisements and promotion (Sinha &
effects and are very expensive (Sharma et al, 2008). Singh, 2015).
Sinha & Singh (2015) found demand is mostly
based among young boys and girls in herbal Patanjali supply chain has three steps such as
cosmetics. It is expected to expand at the rate of product flow, information flow and cash flow.
15% and may possibly cross 20%. Patanjali has signed an agreement with Future
group to sell the products. It is already selling its
Patanjali is enjoying the advantageous position in products through outlets available across the
market through spirituality element involved in its districts in India. A very good MIS system is in
products and they are available easily across all place which route orders to central office in
patanjali stores. (Gurusanthosini&Gomathi, Haridwar and products are supplies in the basis of
2017).Patanjali has additionally acquainted FMCG demand through patanjali's own transport (Sethi,
items with fast expansion in the market. There are 2016).
numerous rivals in every one of the classifications

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Expanding Acceptance and Outreach: A Case of Patanjali Ayurved Products
83

In this study, understanding and analysing the competing with other leading FMCG companies.
Patanjali appeal and outreach among the masses
and its related aspects have been identified as Sampling Method and Data Collection:
research gap. In following pages analysis and
discussion is presented to fulfil the research gap. Tuned in to goals of study, consumers of Ayurvedic
items in territory of Delhi NCR and Uttar Pradesh
3.1 Research Methodology (as research universe) have been covered to record
their viewpoint towards the patanjali products on
Research Design: different aspects.Total 101respondents have been
covered for this study of Ayurvedic items
For this study descriptive research design has been (therapeutic, sustenance, corrective and FMCGs)
used to understand the wider perspective of while using Purposive Sampling method.
ayurved products market. The purpose of this study
is to compare how Patanjali is growing and 3. Data Analysis

3.1 Respondents Profile

Gender (101 responses)

Male
47.5% Female

52.5%

There were more male respondents 52.5% than conducted.

female respondents ie. 47.5% in the survey

Age Group (101 responses)

18 or below
20-40
40-60
14.9% 60 and above

79.2%

The age group was mostly 20-40 ie 79.2% and were very few 18 and below and 60 and above.
14.9% clients aged between 40-60 years.There

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84 [ ISSN 2349-7920 ] SMS Journal of Entrepreneurship & Innovation

Yes
No

98%

52.5% of the respondents believe in Patanjali visible to consumers and the promise of ramdev's
products as 100% natural and herbal product. chemical free products was strong as he claims his
Patanjali stand strong on the idea of providing their products are herbal and safe to use.
customs natural and herbal products which are
chemical free and safe to use.With the entry of 3.2.5 Consumer Preference over Other Brands
patanjali in the market , all ayurvedic solution was

Dabur
48(47.5%)
Zandu
9 (8.9%)
Baidyanath
10 (9.9%)
Patanjali
48(47.5%)
Hialaya
49(48.5%)
Other
11(10.9%)
0 5 10 15 20 25 30 35 40 45

There was a close call between Dabur , Himalya been there for a while in the market.
and Patanjali. Since Dabur and Himalya have been
very old companies and Patanjali is new in the 3.3 Marketing Outreach of Patanjali Products
market. It seems that it is doing well while
competing with the big brands like Dabur, 3.3.1 Price Strategy`
Himalayaand other FMCG brands which have

Yes
No

18.8%

81.2%

Vol. V, No. 1; December-2018

Expanding Acceptance and Outreach: A Case of Patanjali Ayurved Products 85

Occupation (101 responses)

Student
10.9% Employee
Businessman
9.9% Homemaker
34.7% Other

38.6%

Most of them who surveyed were students 10.9%) then homemakers ( 9.9%) and others.
followed by employee (34.7%) then businessman (

Income Group (annually) (101 responses)

0-5,00,000
8.9% 5,00,000-10,00,000
25.7% 10,00,000-20,00,000
13.9% 20,00,000 and above

51.5%

Since the survey was conducted in rural and semi 3.2 Consumer Perception and Preference
urban areas 51.5% people's income were between
0-5,00,000 and next major section (25.7%) was of 3.2.1 Awareness of the Product-
5,00,000 -10,00,000 income group.

Yes
No
Maybe

98%

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86 [ ISSN 2349-7920 ] SMS Journal of Entrepreneurship & Innovation

96% of the people knew about the brand Patanjali consumers knew about the brand and it's product.
Ayurveda Ltd. This shows how well they are
promoting the product that majority of the 3.2.2 Product Consumption

Yes
No

12.9%

87.1%

Most of the respondents said that they have easily available in the nearby vicinity which draws
consumed Patanjali's products at different the eye of every Indian consumer who is not afraid
intervals. 87.1% of the people said that they have to give a try to an Indian company which holds the
used Patanjali products. This shows that how well background of chemical free notion.
the people are aware about the products. Patanjali
products are cheaper than other products and are 3.2.3 Product Reliability

Yes
No
39.6%

60.4%

60.4% of the respondents find Patanjali products sciences And showcased the cure of all issues of
more reliable as the ideology and philosophy of mankind. His journey began from yoga and took a
patanjali draws consumers from all ages. The turn of business enterprise with patanjali ayurved.
consumer belief plays a major role because the age He assured the Indian customer with his
of ayurveda attract consumers and the natural philosophy and lifestyle that it can improve many
approach it considered far more better safe and lives.
reliable for the consumption.Baba Ramdev has
emerged as a leader in his own realm of vedic 3.2.4 Product's Natural & Herbal Appeal

Vol. V, No. 1; December-2018

Expanding Acceptance and Outreach: A Case of Patanjali Ayurved Products
87

Since Patanjali has targeted low income segment affordable and reliable. So as my respondents
and they are targeting the mass in tier II and III income were below 5,00,000 so 81.2% of people
cities also. Not only rural and semi-urban areas but find Patanjali pocket friendly.
also the urban areas of the country. All their
products are low cost and they are easily 3.3.2 Promotion Strategy

Television 83 (2.2%)
Radio
12(11.9%)
Newpaper
41(40.6%)
Magazine
17(16.8%)
Hoardings
34(33.7%)
Public Transits
22(21.8%)
Others
12(11.9%)
0 10 20 30 40 50 60 70 80

Most of the respondents have seen advertisements everywhere in all medium of communication to
of Patanjali over television then newspaper, reach out the mass.
hoardings , public transits , magazines and then
radio n others as well. This shows that Patanjali 3.3.3 Impact of Patanjali's Advertisement

Yes
No
Maybe
25.7%
35.6%

38.6%

Advertisements still are not reliable source for Ancient ideology and Ayurveda has made a huge
Indian audiences although a good chunk of impact on Indian consumers and advertisements
costumers 39% have accepted the impact of are not the only source of persuasion. The tell-tale
advertisements and other 26 % were in factor is still prevalent which makes a person more
dilemma.Baba ram dev persona takes a major believable.
chunk of Patanjali's promotion and marketing.
3.3.4 Patanjali's Accessibility

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88 [ ISSN 2349-7920 ] SMS Journal of Entrepreneurship & Innovation

Yes
No

96%

With more and more stores opening across the Patanjali has also forayed into e-commerce space
country the easily available factor is Patanjali's also.
greatest advantage. So 96% of the respondents said
yes it easily available for them. This shows 3.4 OtherAspects
Patanjali's strong distribution channel and
network. Keeping pace with the current scenario 3.4.1 Brand Preference-

Yes
41.6% No

58.4%

Half of the respondentsagreed with Patanjali a saviour in this hectic scenario. Many consumers
brand's core theme of healthy lifestyle with pure have changed their preference to Patanjali because
products. Patanjali created a certain trend in the it gives a promise of a healthy living.
Indian market about going back to Indian roots and
following natural and herbal methods which can be 3.4.2 Patanjali's Overall Experience-

1
2
31.7% 3
4
15.8% 5

8.9%

34.7% 8.9%

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Expanding Acceptance and Outreach: A Case of Patanjali Ayurved Products
89

More than 75% of the people are satisfied credibility of Patanjali has been increasing day by
customers of patanjali and they believe that it is day with an agenda to supress global FMCG
providing some solution to stay healthy. Whether products and promotes the Indianness amongst all
it's the ancient ideology or Baba Ramdev's impact the customers.
or his swadeshi and ayurvedic appeal, Patanjali has
been a huge part of present customer need. The 3.4.3 Consumer's Recommendation to Others

Yes
No

34.7%

65.3%

Patanjali enjoy a good degree of customer loyalty the idea of Indianess in each packaging.Whether
as 65.3 % recommend it to others based upon their its instant noodles or a beauty cream, patanjali has
own experiences while the rest prefer using other covered it all. The idea to attract Indian audience is
FMCG products over Patanjali.Years and years of spot on which makes the customer buy it again and
customer loyalty plays a key role in product again. Product Prices are very sensitive and
recommendation. Patanjali has earned its affordable. Soap worth merely Rs 12 is a boon for
reputation as an Indian favourite in the market. the farmers in rural areas. Not only the products are
From the racks of hyper city to a small district cost effective but are easily available with wide
village, Patanjali is making strong strides. range of stores across country.

4. Key Findings Patanjali stores are everywhere in small districts

where fulltime electricity is still a dream. The easy
4.1 CustomerAwareness and Preference accessibility has made it a hero in every household.
Keeping in mind that 70% population resides in
Made in Bharat labelling, Swadeshi approach and rural areas, Patanjali kept it simple and makes sure
all natural and herbal promise is a success story in its easil y availability in rural areas.The
Indian market. The customers are happy and vision“Every home a patanjali home” is working
satisfied with patanjali products and trust Baba and taking a fast pace.
Ramdev with his idea to suppress foreign
domination with using Indian products and Promotion of patatnjali products has been
maintaining a healthy lifestyle.Competitors are wonderful and result oriented. Theme of “Healthy
also coming up with their own variants of ayurved and pure” with mass appeal of Baba Ramdev has
products but Patanajli has its own appeal right now. been used. Well-publicised agenda to bring 100%
ayurvedic products in the market with labelling
4.2 Marketing Outreach that somewhat makes the customer feel like a true
Indian is very unique.
Products are handy, easy to use and available with
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90 [ ISSN 2349-7920 ] SMS Journal of Entrepreneurship & Innovation

5. Conclusion lot of unique initiatives have been bearing fruit

which can be researched further. Ayurvedic
The resurgence of ayurveda is prominent on the product market is still at a nascent stage and world
market and people have started opting for is looking towards India. Future studies should
ayurvedic medicine for treatment because the focus on the world ayurved market and investigate
Indian consumer is slowly moving back towards the possible opportunity for Indian companies in
ancient wisdom. The contribution of Patanjali in different evolving verticals of ayurved market.
Ayurveda has made a noticeable impact in the
market and is competing with other big brands. Note: The authors are grateful to the anonymous referees
Baba Ramdev's approach to healthy lifestyle has of the journal for their suggestions to improve the overall
been one of the key attractions and has been quality of the paper. Usual disclaimers are applicable.
credited for a major life-changing factor in people's
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