Patanjali- Prakriti Ka Aashirwad

You must have listened to the news: Patanjali reported Indian revenues of around Rs 10,531 crores for the last financial year (2016-2017) - . It recorded more than 100 percent increase in revenue (Rs. 5000 crores) of 2015-16. What is even more interesting is that this 8-9 year old brand is leaving brands like Colgate behind which is almost 8 decades old in India.

The saffron-clad Baba now claims that Patanjali Ayurved Ltd will cross Rs. 20,000-25,000 crore in sales this year and will become India’s largest swadeshi  (local) brand.  While Patanjali’s combination of low prices, ‘natural and pure’ proposition and ‘swadeshi’ positioning are widely acknowledged to be the reasons behind success, what is not that well known is the critical role played by Patanjali’s marketing mix, path-breaking sales and distribution strategy and single brand strategy in driving this exceptional growth trajectory.

Marketing mix

Product -Product range of Patanjali has more than 400  types of FMCG goods like, food items, tooth care, hair care, skincare, cosmetic products etc. It also has products which focus on baby segment, healthcare and beauty products for men and women. It has 300 plus medicine for treating diseases from cold to paralysis. The recipe of its products is derived from the rich heritage using natural and genuine ingredients. Patanjali is now aiming for major diversification, and solar energy is that untapped niche which it has decided to take a chance.

Place - Multiple distribution channels

a. Company-Owned stores which exclusively sell his range of products.

b. Normal FMCG distribution channel

c. Modern Retail: Big Bazaar etc

Price - Patanjali is very competitive in its prices. It offers products at a lesser price than its competitorsPatanjali products are priced as per competition so that it becomes easier for the customers to switch from their existing brand and adopt their products. . For ex- Patanjali honey is about 30 percent lesser in price than its competitor Dabur Honey.

Promotion - Patanjali has considered advertising for its products as a high priority for driving sales. The promotion and branding in Patanjali marketing mix utilises all media channels like print, TV, online ads, billboards etc. Brand ambassador of patanjali Baba Ramdev is often seen in media mocking the MNCs and promoting the ideology of going swadeshi and Indian, healthy and natural. Baba does it in style when he says in his own jargons that Turnover figures will force MNCs to go for kapalbharti (a breathing exercise) and will give moksh (freedom from the cycle of birth and death) to MNCs in the Indian market in the next five years.

Sales and Distribution strategy

Patanjali follows a two-stage distribution strategy -

Stage 1.0: Create a strong alternative distribution system for demand creation and building word of mouth advocates

Stage 2.0: Pivot to GT

Alternative Distribution System

When launching a new product, Patanjali first drives trials and consumption through dedicated stores. These stores are essentially Ayurveda clinics like – Arogya Kendra, Chikitsalaya and Swadeshi Kendras., run by entrepreneurs entirely with their own investment. It helps Patanjali to test the product and create a sizeable customer base. Currently, 10,000 dedicated stores contribute to 60 per cent of the company’s revenues.

Pivot to GT

When a sizeable consumer base is created through these dedicated stores, the consumers would expect Patanjali’s products to be available at general stores and chemists in the proximity of dedicated stores. These retailers are then forced to keep Patanjali’s products in fear of losing out on customer’s goodwill. This builds a platform for the further stage of growth.

While marketing mix, reasonable pricing, aggressive distribution are all responsible for such high growth of Patanjali, one thing that stands out of all is –

Single brand strategy

Procter and gamble has brands like Ariel, Pampers, Head and Shoulders, Gillette, Tide, Duracell etc. under it.

Unilever goes even further in no of brands under it. It is the father of brands like Ponds, Surf excel, Lipton, Lux, Dove etc.

But when we look at Patanjali, it all comes under one name “PATANJALI”. The naming formula here is simple: Unique Brand + Generic Sub-brand/category name = Product Brand name.

Undoubted benefits of a single brand

When one buy Ariel or when you buy Dove one rarely know that he or she is buying a product of Procter & Gamble or Unilever. But when one buy Patanjali Noodles or Amla one is easily able to realte. Infact, one product becomes the advertisement of other product. We started using Google Maps because we used Google search earlier.

Then if there are different brands you have different brand management teams, different marketing budgets for each brand and this increases the costs severely. Having one brand make life so much easier and simpler.

Single brand also helps in Distribution. See the difference between going to a distributor and saying please stock Lux, Dove, Ariel and surf excel and going to a distributor and saying stock Patanjali and you will have soap. Biscuit, detergent and noodles. This way you are asking for of favour instead of five.

A non-MBA Baba clad in orange robes has shown it to veterans with decades of experience, that he can do business better than them. What is to see is that how far Patanjali can go!

References-

https://www.marketing91.com/marketing-mix-patanjali/

http://www.thehindubusinessline.com/catalyst/the-secret-behind-patanjalis-rise- and-rise/article9300591.ece

http://www.livemint.com/Industry/cjCMZnD0eGkYOMjayFuUVN/Patanjali-eyes-2fold-rise-in-revenue-at-Rs-20000-crore-in.html

https://en.wikipedia.org/wiki/Patanjali_Ayurved