PGP 20 034 - CB Project

Consumer
Behavior Project
2017
PATANJALI: Capturing the

Indian Market
Submitted by-
Monika Chauhan
PGP/20/034
Patanjali: Capturing the Indian Market Monika Chauhan PGP/20/034
Table of Contents
INDIAN FMCG INDUSTRY .................................................................................................. 4

SEGMENTATION ....................................................................................................................... 4
GROWTH DRIVERS ................................................................................................................... 5
MAJOR PLAYERS ..................................................................................................................... 6
ABOUT PATANJALI ............................................................................................................. 6
PRODUCT MIX ......................................................................................................................... 7
LEADING PATANJALI PRODUCTS .................................................................................. 7
PATANJALI COW GHEE ............................................................................................................ 7
PATANJALI DANT KANTI ......................................................................................................... 8
PATANJALI KESH KANTI .......................................................................................................... 8
PATANJALI HONEY .................................................................................................................. 8
PATANJALI BATHING SOAP ...................................................................................................... 8
MARKET SEGMENTATION: TARGET CUSTOMER .................................................... 8
CULT FOLLOWERS ................................................................................................................... 9
VALUE PROPOSITION OFFERED BY PATANJALI ...................................................... 9
KEY PRINCIPLES OF PATANJALI ............................................................................................... 9
PRODUCT AND BRAND STRATEGY ......................................................................................... 10
TARGETING THE INDIAN KITCHEN ......................................................................................... 11
RAPID ADOPTION OF PATANJALI PRODUCTS: EXPLAINED ............................... 11
TARGET SEGMENT CHARACTERISTICS ................................................................................... 11
REASONS CITED BY CONSUMERS FOR ADOPTING PATANJALI ................................................ 12
OF SAVVY MARKETING CAMPAIGNS ....................................................................................... 13
ATTRACTIVE PRICING ENSURED COMPETITIVENESS ............................................................... 14
NOT PLAYING EXACTLY ON PRICING...................................................................................... 14
PRODUCT LAUNCH STRATEGY ............................................................................................... 14
LOYAL COMMUNITY & REPUTATION ..................................................................................... 14
UNCONVENTIONAL ADVERTISING ......................................................................................... 15
ONLINE PLATFORM TO SPRUCE UP DISTRIBUTION NETWORK .................................................. 15
CONSUMER INSIGHTS REVEALED FROM THE STUDY ......................................... 16
SOURCE CREDIBILITY ............................................................................................................ 16
SETTING CUSTOMER FAITH ................................................................................................... 17
HIGHLY AFFECTED BY ADVERTISEMENTS IN CASE OF NON-DURABLES ................................... 18
ROAD AHEAD FOR PATANJALI ..................................................................................... 18
REFERENCES ....................................................................................................................... 19
Table of Figures
Figure 1: Projected growth of Indian FMCG Industry .............................................................. 4

Figure 2: FMCG Market segments ............................................................................................ 4
Figure 3: Patanjali revenue mix ................................................................................................. 5
Figure 4: Top selling products of Patanjali ................................................................................ 7
Figure 5: Key principles of Patanjali ......................................................................................... 9
Figure 6: Majorly used Patanjali products in Indian Kitchen .................................................. 11
Figure 7: Advertisement by Patanjali ...................................................................................... 13
Figure 8: Online presence- patanjaliayurved.net ..................................................................... 16
INDIAN FMCG INDUSTRY
"India is at the cusp of the FMCG S-curve and there is significant room to grow over the next
5-10 years. A nominal GDP growth rate of roughly 12 percent over the next three years
could signal an FMCG growth by over 15 per cent, depending on player action"
- Bain & Company
The fast-moving consumer goods (FMCG) segment is the fourth largest sector in the Indian
economy. Although the industry has witnessed a slowdown for the past three years it shows a
potential to grow by more than 15 percent over the subsequent years given the players focus
on improving brand penetration rather than on expanding product lines by bringing in more
products.
Figure 1: Projected growth of Indian FMCG Industry
Segmentation
Major segments of FMCG Sector
FMCG goods are popularly known as
consumer-packaged goods. Items in this

11% Food & Beverages
category include all consumables (other 15% Personal Care
53% Tobacco
than groceries/pulses) people buy at 21% Household Care
regular intervals. The most common in
the list are toilet soaps, detergents,

Figure 2: FMCG Market segments
shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household
accessories and extends to few durables like electronic goods. These are generally the
commodity items meant for daily frequent consumption and offer a high margin.
Key Segments of FMCG Market
Food & Beverages Personal Care Household Care
Health beverages Oral Care Fabric Care (Laundry soaps
Soft drinks, Tea & Coffee Hair Care and synthetic detergents)
Staples/cereals Skin Care Household Cleaners (Dish/
Snack food, Ice cream Cosmetics Utensil cleaners, floor
Dairy products Toiletries cleaners, air fresheners,
Bottled water etc. Deodorants & Perfumes etc. furniture polish etc.)
Food and Beverages is the leading

Major product segments of
segment in FMCG Sector, accounting Patanajali
for 53% of the overall market.
Health care-
21% Ayurvedic
Personal care (21%) and Household FMCG (Cosmetic
40%
etc)
care (12%) come next in terms of Food
39%
market share
Growth Drivers Figure 3: Patanjali revenue mix
Though the FMCG industry has faced slow growth in recent years, overall its growth trajectory
has been positive and shows similar trends in coming years too. Majority of the growth can be
accounted to growing customer awareness, increased product availability and
accessibility, increased disposable income and hence purchasing power, and changing
customer lifestyles and preferences.

Major Players
Studies show that 62 of the top 100 brands in Indian FMCG market are owned by MNCs,
leaving the balance for domestic players. Although Patanjali is giving tough competition to
each of these MNCs by continuously eating away their market shares. Some of the major
FMCG brands in India are:
Hindustan Unilever Ltd., ITC (Indian Tobacco Company), Nestl India, AMUL, Dabur
India, Asian Paints (India), Cadbury India, Britannia Industries, Procter & Gamble Hygiene
and Health Care, Marico Industries
ABOUT PATANJALI
Patanjali is one of the main FMCG players in India that has set up an enormous market for
itself in a matter of moments. A few reports propose that the brand, established by Baba
Ramdev, a famous Yoga Guru, is focusing on an income above Rs 20,000 Crores in FY18. Be
it shampoos, toothpaste, cleansers, beats, grains, sugar, or whatever other FMCG thing,
Patanjali offers everything by means of their single image and multi-mark retail locations. The
brand has extended its essence over each niche and corner of the nation and has a solid hold in
North, East and West. In doing as such, Patanjali has eaten into the piece of the overall industry
of these multi-national brands and has a solid informal exchange if not more. Patanjali
appreciates tremendous open help and has been advancing the brand with the possibility of
contaminated free items through its promoting efforts. Over a period, it has developed as a
gigantic test to a portion of the generally solid players, for example, HUL, Colgate, RB, and
Nestle. Patanjali organizers have been consistently making explanations assaulting these
MNC's and making a development that will corner these players in the market.
Product Mix
Patanjali is posing tough competition to all major FMCG brands by diversifying into almost
all major FMCG product lines. It majorly focuses into 4 business segments, viz., ready foods
(foods, supplements, digestives, dairy, juices, etc.), personal care (cosmetics, shampoo, soaps,
facewash, etc.), home care (detergent cakes, powder, liquid), etc) and ayurvedic products
(healthcare products for blood pressure, skin diseases, joint pain, etc).
LEADING PATANJALI PRODUCTS
The leading product lines of Patanjali are
Ayurved, Hair care, Oral care, Skin care
and Kitchen essential food items. The top
five products contributing maximum to
the revenues of Patanjali are Cow Ghee,
Dant Kanti, Kesh Kanti oil, Patanjali
Honey and Patanjali bathing soap.
Every one of these products is eating into
the market share of the leading brands of

Figure 4: Top selling products of Patanjali
respective product segment.
Product Leading brand Effect of Patanjali

Amul Patanjali brought overall growth in the
Patanjali Cow Ghee
product category which contributed to the
growth of other players as well, but
subsequently Amuls share got reduced to
18% and Patanjali gained a market share
of 10%
Product Leading brand Effect of Patanjali

Colgate-Palmolive Patanjali has captured 4.5% market share
Patanjali Dant Kanti
in Indian market and is rising giving tough
competition to Colgate
Marico Marico is still the leading brand in the
Patanjali Kesh Kanti
product category but consumers are
continuously shifting to Patanjali
Dabur The product category being a food item,
Patanjali Honey
Patanjali is gaining acceptance rapidly due
to the naturally of the product and eating
into the Daburs market share
HUL HUL still is the leading brand in the
Patanjali Bathing
product category with 60% market share
Soap but is facing tough competition from
Patanjalis product especially the
Aleovera and Neem soap positioned as a
natural product
MARKET SEGMENTATION: TARGET CUSTOMER
Patanjali has focused on the Behavioral Segmentation of the Indian customer market focusing
on Ayurvedic medicines and Personal Care.
Target Segment Benefits Sought Positioning Statement

Ayurvedic medicines Lives a healthy lifestyle but Let food be the medicine
(Age group above 40 knows that they should make and medicine be the food
years) more healthier choices
Personal Care Follow a proper process: Walk with us for a Better
(Age group above 25 awareness, knowledge, liking, Life
years grouped on their preference, conviction and
readiness to purchase finally purchase thus making
the product) informed decision.
Cult Followers
Indian customer market is majorly dominated by millions of people who are the followers of
various spiritual organizations, gurus and cults. Major names include Osho, Art of Living and
Ramdev Babas Patanjali Yogapeeth. These organisations exert an huge influence on the lives
and minds of these people and the choices they make in their daily lives. This is why the
marketers treat this segment as a distinct one and is targeted very differently.
Indian brands exploit this opportunity to the best by targeting this customer segment with a
range of products and services by resting on this influence factor. The marketers either enter
into partnership with these organizations or through some other ways keeping up with and
respecting the legal and ethical boundaries involved. This customer segment is the source of
endless opportunities and is the key target of Patanjali as a product and service provider.
VALUE PROPOSITION OFFERED BY PATANJALI
Key Principles of Patanjali
Patanjali Ayurved is a fused organization under the Companies Act Patanjali Ayurved
Limited. In spite of the fact that a corporate substance, its working and belief system is not
totally that can be contrasted with that
of a flawless corporate culture. The
organization is focused on topline High Cost-

plough- effective
development instead of productivity. back rate production
Its business belief system is propelled
by Swami Ramdev's philosophies to Focus on

quality (Natural
touch each life through Patanjali which ingredients)
will help the customers and be

Figure 5: Key principles of Patanjali
available in every one of the portions
where the shoppers feel they can show signs of improvement item at a superior cost. The
association directs its business on the accompanying 3 fundamental standards:
Providing worldclass items to purchasers (ensuring the organization does not include
any additives or utilizations normal additives beyond what many would consider possible).
Producing items in the most costeffective way with the goal that the items are evaluated
sensibly.
Whatever benefits the organization gains are furrowed once again into business so it
can contribute the same for dispatch of new items, cost viability or further limit extension.
Patanjali is focused on not dispatching any items which may be hurtful to the wellbeing of
customers in any manner or hinder their wellbeing or their way of life. Thus, the organization
won't get into item classes like tobacco and alcohol.
Product and Brand Strategy
Beyond Patanjali's leading ayurvedic product range, their straegy is to just make items that
individuals are already using and are aware of or are comfortable using rather than putting it
endeavors to develop new innovative products. Indeed, even the item names are fundamentally
the same as already existing products in the market. This move is extremely smart, as it
fundamentally lessens the efforts in convincing the end customer to shift to the product.
But how do the customer choose Patanjali as a brand over the competitors brand, pick its
product (which is new to them) over something that they have already been using. Patanjali
promises them something that the customers would want to buy but the other product doesnt
offer. So Patanjali uses the positioning statement for its products: Pick our product - it is the
same product with no harmful chemicals. Plus, by buying our products, you are ensuring
the money you spend stays in India. This additional value proposition is true for all their
products and that is the reason they have branded every product as a Patanjali product.
Patanjali offers a no chemicals & swadeshi alternative to the customers to influence them
to make this shift.
Targeting the Indian Kitchen
Patanjali works on the kitchen concept, i.e. launching products that will touch all categories of
the SKUs used in an Indian kitchen.
Through this concept Patanjali
targets the women customer
specifically. For instance, the
company already has products that
are used in the Indian kitchen such
as dishwash bar, ghee, rice (has 3
variants of rice), pulses, spices,
mustard oil, flour and madhuram
(replacement for sugar made out of

Figure 6: Majorly used Patanjali products in Indian
jaggery) under the brand name. Kitchen
RAPID ADOPTION OF PATANJALI PRODUCTS: EXPLAINED
Patanjali as a brand has established it name in the Indian market and a very high recall in
customers mind in a very short period of time through various marketing techniques as well
as positioning the products in a way that customers readily accepted it and adopted it over the
other products available.
Target Segment Characteristics
The characteristics of the market segment targeted by Patanjali is such that the value
proposition offered by Patanjali suits the segment and customer readily accept the brand. The
customers targeted are the ones who are health conscious, believe a lot in natural products and
other natural ways like yoga, follows these programmes and are heavily influenced by Baba
Ramdev. Thus, the products coming from a brand with his face gains acceptance very quickly.
Reasons Cited by Consumers for Adopting Patanjali
The primary research conducted (telephonic interviews of 4 people of different age groups
varying between 28-55 years) showed that they had started using the Patanjali products as the
brand positioned itself on the concept of purity and originality in a way that it provides natural
benefits, minimum usage of chemicals, affordable prices and was heavility promoted by the
yoga expert Baba Ramdev. Also, the programmes featured on channels like Aastha explain
the ingredients in the Patanjali products making them more acceptable and reliable.
Some of the statements made by the Patanjali users are as follows:
The reason I started using Patanjali is because of Baba Ramdev
Once I visited the free counselling provided by the doctors sitting in Patanjali centres
and he recommended me to use Patanjali Trifala for better digestion. It worked although
slowly, but that made me adopt other Patanjali products also.
Most of the Patanjali products are value for money.
Patanjali products use natural ingredients and therefore are not harmful.
Multi-grain aata provided by Patanjali is very healthy and similar are the other food
products.
Though some products are expensive, but they contain natural ingredients and are
healthy so we use them.
Patanjali dank kanti is a good toothpaste and keeps the teeth healthy. Also, it doesnt
contain Sulphur.
We use it because it is a DESI BRAND.

We wanted to try Patanjali but it was not so easily available. Now that the products are
available in various other stores also, we have started using several products and we
liked them.
Of savvy marketing campaigns
What has really worked for Patanjali
is the fact that Baba Ramdev, is also
its brand ambassador, who has a
clean image, people follow them and
his name stands for good health and
spirituality.
Also, Patanjali uses attacking mode
of campaigning and advertisements.
In majority of its campaigns,
Patanjali has attacked the MNCs for
being ignorant towards customers
health, using various chemicals in
products, providing products at very
high prices etc. Patanjali had
aggressively targeted these MNCs
and compared them to East India Figure 7: Advertisement by Patanjali
Company. Another advertisement of Patanjali launched on Independence Day 2016 carried a
tagline- Economic freedom is still a dream.

Attractive pricing ensured competitiveness
Patanjali's key strength, apart from its superior item quality, lies in its pricing strategy. Majority
of the share of the organization's items is evaluated at ~1530% markdown to the competition,
which makes it an appealing proposition for the buyers. Also, Patanjalis another reason of
offering rebates and discounts is its consumercentric approach to offer best quality products
at affordable prices.
Not playing exactly on Pricing
Contrary to the popular perception as mentioned above, not all Patanjali products are priced at
low amount. The pricing structure varies from low-cost items to products which are priced high
as compared to the competition. Thus, Patanjali doesnt only play on price in every product
category. Patanjali ghee, for instance is priced at a premium. Reason being the health factor
related to it, lack of easy availability of cow ghee, and purity concept related to the food
products provided by Patanjali.
Product Launch Strategy
Patanjali launched its products portfolio starting with Ayurvedic medicinal products and
established FAITH in customers mind. Next, they came up with health supplements and
consumables like cereals, wheat floor, spices etc. placing itself as a brand of Indian Kitchen.
Thus, Patanjali has slowly but steadily moved from category to category and captured
consumers mind-share and market share.
Loyal Community & Reputation
While one may be enticed to trust that Patanjali has developed exponentially within such a
short period of time, the truth of the matter is that it is a consequence of around 20 years of
tenacious work around Yoga and Ayurveda by Baba Ramdev. In those 20 years, Baba Ramdev
has manufactured a to a great degree steadfast group of supporters. Over years, he has
constructed a notoriety and trust even among his non-devotees. With regards to picking
between any product of Unilever, P&G, Nestle and so on in comparison to Baba Ramdevs
Patanjali, most would put stock in the later one.
Unconventional Advertising
Patanjali has embraced the unique information based promotions. For example, Patanjali
features the positives of cows ghee, which consequently increases the sales Patanjali Ghee.
For the customers, Baba Ramdev remains the substance of Patanjali and its items. Baba
Ramdev, amid his yoga sessions, exhibits the Patanjali items. After the session, he makes the
participants mindful of the advantages of utilizing Patanjali items. Till date, near 70million
individuals have interacted with Baba Ramdev through his yoga camps and it is trusted this
can increment to 200million proceeding. This features the potential achieve that the Patanjali
brands can have without much standard publicizing. Additionally, being related with Baba
Ramdev helps in making a superior recognition among purchasers that being ayurvedic
offerings, the Patanjali items are solid.
Online platform to spruce up distribution network
Many customers grumble that because of Patanjali's powerless dissemination organize its items
are not effectively accessible all over the place and they can't get them. To address this worry,
the organization has chalked out a forceful arrangement to enhance its essence on the online
stage. At present, Patanjali is now offering its items through its online website,
www.patanjaliayurved.net, from where buyers can arrange the items and get free conveyance
of the same if the request esteem surpasses INR499. Apart from the company-owned website
channel, Patanjali products are now also available on Online grocery markets like Bigbasket
and Grofers. The organization is likewise executing ERP for better mapping of stock (SAP has
just been actualized). Patanjali will likewise be propelling its portable application, which will
enable purchasers to find close-by outlets that are offering Patanjali items and furthermore
encourage web based requesting of items.
Figure 8: Online presence- patanjaliayurved.net
CONSUMER INSIGHTS REVEALED FROM THE STUDY
In a highly competitive and fast-moving market like FMCG sector, getting the right consumer
insights and growing sales is a challenge for all the organisations, but Patanjali has been
successful in doing so to a very large extent. Patanjali has applied its knowledge and
relationships with the mass public to uncover consumers needs, motives and attitudes which
has enabled the firm to take the right strategic decisions regarding the positioning, branding,
product launches, pricing and communication.
Source Credibility
"Faith is a continuation of reason" -William Adam
The key insight revealed from how Patanjali value proposition has been successful so
extensively is the credibility of the product and information source. The product offered comes
from Patanjali which is promoted by Baba Ramdev, who is perceived to be very trustworthy,
likeable and expert in health matters. Thus, the credibility of the brand is huge in the eyes of
the customers and they are not very reluctant in adopting the brand.
What works for Patanjali is the way that the promoter of the brand is likewise its image envoy,
and stands for good wellbeing and deep sense of being. He is putting forth items that are
situated as being unadulterated. Customers are progressively looking for solid living.
Unmistakably, there is a fit between what Ramdev remains for, what his items offer and what
customers are searching for.
Certainly, there are different brands that have made "Ayurveda" their USP. Delhi-based Dabur
India Ltd was based on that suggestion. So was Bengaluru-based Himalaya Drug Co. Be that
as it may, the distinction is that Ramdev and, by a large extent, Patanjali is believed to be the
living example of all that is natural. Ramdev is the first thing. He is fit, does yoga and
advances non-substance items. His wellbeing messages discover reverberation in his items.
That is the place his allure lies. Many consumers say they believe in the brand because Baba
Ramdev is talking about these products on television so they must be goodhe wont lie,
they say.
Setting Customer Faith
Patanjali has set up faith in customers mind through its ayurvedic range of medicinal products
which was the first category to be launched by Patanjali. Slowly, it has moved on to other
category playing on the faith factor created amongst the customers and always making sure
that the products live up to the expectations created, even surpass them at times.
Highly affected by advertisements in case of non-durables
The development in numbers can be credited to Ramdev's advertising mastery, as well. He's
watchfully shrouded his business keenness behind his saffron robes, sermons on otherworldly
existence and yoga, and clear straightforwardness. Be that as it may, in Patanjali he's discreetly
made a mammoth organization crossing a scope of item classifications. Patanjali is featured
among the biggest advertisers on television in terms of total insertions of commercials.
ROAD AHEAD FOR PATANJALI
Patanjali would have to focus more and more on R&D and innovation as a means of growth
including improving processes to increase product quality and reduce price. Patanjali has
already developed a culture that promotes using key consumer insights and will continue to do
to create either the next generation of products or even new product categories.
With International Yoga Day being celebrated at such a large scale, with increasing health
awareness amongst people, with people globally moving towards natural ways of health
maintenance, Patanjali has a very strong foothold in the kind of products needed to target these
new markets and has the best value proposition as compared to other MNCs in FMCG market
which would attract these customers. Thus, Patanjali should plan going international in
upcoming years and become a global brand.

REFERENCES
http://www.firstpost.com/business/fmcg-growth-seen-accelerating-over-15-in-next-2-3-yrs-
says-a-study-3322386.html
https://blog.ipleaders.in/indian-fmcg-sector-new-trends/
http://www.indianmba.com/Faculty_Column/FC851/fc851.html
http://www.livemint.com/Opinion/30a5WR5HDjU8Rau68JRkgI/Patanjali-Ayurved-Of-
savvy-marketing-and-smart-pricing.html

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Consumer

PATANJALI: Capturing the

INDIAN FMCG INDUSTRY .................................................................................................. 4

Figure 1: Projected growth of Indian FMCG Industry .............................................................. 4

INDIAN FMCG INDUSTRY

Figure 1: Projected growth of Indian FMCG Industry

consumer-packaged goods. Items in this

regular intervals. The most common in

the list are toilet soaps, detergents,

Key Segments of FMCG Market

Food & Beverages Personal Care Household Care

Health beverages Oral Care Fabric Care (Laundry soaps

Staples/cereals Skin Care Household Cleaners (Dish/

Snack food, Ice cream Cosmetics Utensil cleaners, floor

Dairy products Toiletries cleaners, air fresheners,

Food and Beverages is the leading

Growth Drivers Figure 3: Patanjali revenue mix

accounted to growing customer awareness, increased product availability and

customer lifestyles and preferences.

FMCG brands in India are:

and Health Care, Marico Industries

LEADING PATANJALI PRODUCTS

The leading product lines of Patanjali are

Ayurved, Hair care, Oral care, Skin care

and Kitchen essential food items. The top

five products contributing maximum to

the revenues of Patanjali are Cow Ghee,

Dant Kanti, Kesh Kanti oil, Patanjali

Honey and Patanjali bathing soap.

Every one of these products is eating into

the market share of the leading brands of

Product Leading brand Effect of Patanjali

Product Leading brand Effect of Patanjali

MARKET SEGMENTATION: TARGET CUSTOMER

on Ayurvedic medicines and Personal Care.

Target Segment Benefits Sought Positioning Statement

VALUE PROPOSITION OFFERED BY PATANJALI

Key Principles of Patanjali

totally that can be contrasted with that

of a flawless corporate culture. The

organization is focused on topline High Cost-

Its business belief system is propelled

by Swami Ramdev's philosophies to Focus on

will help the customers and be

association directs its business on the accompanying 3 fundamental standards:

won't get into item classes like tobacco and alcohol.

Product and Brand Strategy

to make this shift.

Targeting the Indian Kitchen

the SKUs used in an Indian kitchen.

Through this concept Patanjali

targets the women customer

specifically. For instance, the

company already has products that

are used in the Indian kitchen such

as dishwash bar, ghee, rice (has 3

variants of rice), pulses, spices,

mustard oil, flour and madhuram

(replacement for sugar made out of

RAPID ADOPTION OF PATANJALI PRODUCTS: EXPLAINED

other products available.

Target Segment Characteristics

Reasons Cited by Consumers for Adopting Patanjali