The remarkable market growth of Patanjali Ayurveda Limited in last four years is challenging to the contemporary dominators. This has led all multinational companies to have strategically planned business leaders to retain their market share which is being captured by Patanjali very rapidly. But Baba Ramdev’s strategies are appreciable, needless to say it has crippled their efforts. The promotion strategies of Patanjali as Baba has jumped widely in consumer market with new products and strategies which have made nights sleepless for competitors. To highlight, product selection, pricing, promotion & advertising and ultimately distribution.
- The advent of 21st century saw an increasing awareness among the general public. People started questioning quality, pricing and relevance of products, and the trend was high enough in the consumer goods section. Parallely, companies started modifying their strategies and added value-based information to their products. When talking of medicines, food, daily grocery, cosmetics, people started opting for more organic products, as the general trend went by that most contained harsh chemicals. Questioning the quality of the contemporary products manufactured by some of the top brands, Patanjali came as a breakthrough. Baba Ramdev alleged that Patajali was far more safe to consume than the other brands, even encashed herbs and natural substances in Patanjali products. From dental cream to hair cleansers, cosmetics products like face cream & moisturizers, honey, soaps, detergents, spices, biscuits, squash, fruit juices, jam, breakfast cereals, pulses, atta noodles, health complements like chavyanprash etc were rapidly added into entire product range of Patanjali Ayurveda Limited. Patanjali has claimed to have never launched any product which are supposed to be affecting health and always campaigned against carbonated beverages and inorganic products.
- A heavy push to its rise, Patanjali’s all products are available in 20-30% lesser price as compared to products of other manufacturers. For instance, Kellogs sells corn flakes of 250 gram and 475 gram packing at the price of Rs. 95 and 159 respectively whereas Patanjali sells same products at the price of Rs. 85 and 145 respectively. The price is equivalently less for other products and consumers naturally tend to incline towards Patanjali products for pricing as well as health reasons.
- Another added advantantage is that Patanjali has never endorsed any brand ambassador or any celebrity to promote its products. Other manufacturers spend hefty money to endorse brand ambassadors whereas Patanjali spends the same money in pricing of the product and this definitely competitive advantage and a boost in the market.
"I am here not for Vyapar but for Upkar" as says Ramdev.
- A rank-determining factor behind success in consumer market is the easy availability of the product. Initially Patanjali products were sold in exclusive franchises only where products of other manufacturers were not available. The exclusive Patanjali stores rapidly grew in last three years due to high demand of the products. Patanjali products are now available at all retail stores and thus has captured the user base at a great pace. It even plans to sell goods online.
Maybe these are the most promising factors behind the commercial growth of a non-commercial business. Patanjali Ayurveda Limited has risen on that level in last four years which took other FMCG companies two to three decades to reach. And perhaps it is tough for these companies to stop Patanjali spreading its wings in the consumer market.