PROJECT REPORT ON

“STUDY OF MARKETING STRARY AND CUSTOMER SATISFACTION

WITH RESPECT TO PATANJALI ”

Submitted In Partial Fulfillment Of The Requirement

For The Award Of Degree
Of
Master of Commerce
Session (2020-2021)

Ch. Charan Singh University, Meerut, Uttar Pradesh

SUBMITTED BY: - SUBMITTED TO:-
Moni Verma
Roll No. 29

SSV COLLEGE , HAPUR

1
 DECLARATION

I, Moni Verma do hereby declare that the Training Report entitled “STUDY OF

MARKETING STRARY AND CUSTOMER SATISFACTION WITH RESPECT TO

PATANJALI ” is the original work carried out by me Under the Supervision of faculty

mentor ............................ The information provided here is genuine and True to best of

my knowledge. Any part or as a whole Report has not been presented or submitted in

any other institution/University for any Diploma or Degree here before.

Date: Name:

Place:

2
 ACKNOWLEDGEMENT

Before go to the project in details, I feel it’s utmost importance to express my sincere
gratitude to all those who are relate to this project directly or indirectly and without the support of
whom I would not have been able to complete this project sincerely.

Last but not the least; I thank ALMIGHTY for His blessings.

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 1. EXECUTIVE SUMMARY

The project title “MARKETING STRATEGIES OF PATANJALI AYURVEDA” provides a

comprehensive analysis regarding the performance of the company and its products in the
market.

The project covers the aspects like Patanjali got success in such a competitive market in a
very short span of time and how competition from Patanjali prompts FMCGs to hit back.

The project covers the objective of the study that what is the main motive behind the study
on Patanjali Ayurveda.

Through the project you will get know about that how Patanjali Ayurveda become a giant
FMCG within 5 yr.

And how the Patanjali accomplished “MAKE IN INDIA” concept.

And how Patanjali is becoming a tough competitor in the market for the MNCs and the
Indian companies.

Patanjali is following the biggest “SWADESHI MOVEMENT”.

Patanjali’s vision and mission are discussed in the following project.

And you will get to know about the marketing mix of Patanjali Ayurveda and SWOT
analysis followed by Patanjali Ayurveda.

And most important the unique selling proposition (USP) of Patanjali Ayurveda.

Project is conclude with the conclusion and suggestions.

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 TABLES OF CONTENT

Certificate3Declaration by the candidate4

Acknowledgement5

1 Introduction to the study6

1.1 Objective of study

1.2 Definition of terms

1.2.1 Marketing

1.2.2 Marketing strategies

1.2.3 Marketing mix

2 Executive summary13

3 Company profile14

3.1 About Patanjali Ayurveda

3.2 Vision and mission of Patanjali Ayurveda

3.3 Marketing mix of Patanjali Ayurveda

3.4 USP of Patanjali Ayurveda

3.5 SWOT analysis

3.6 Patanjali key to success

3.7 Competition from Patanjali prompts FMCG’s to hit back

4 Literature review31

4.1 Hypothesis information

4.1.1 A report on Patanjali Ayurveda by Varun Mishra.

4.2 Research methodology

4.3 Scope of study

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4.4 Limitation of study

5 Data Analysis and Interpretation38

6 Findings, Conclusion and Suggestion53

7 Annexure56

8 Bibliography60

6
 1. INTRODUCTION TO THE STUDY

PATANJALI AYURVEDA

PATANJALI AYURVEDA LIMITED, a Company registered under the Company’s Act,

1956 having its Registered Office at D-26, Pushpanjali, Bijwasan Enclave, New Delhi –

110061 and Works: 1. Unit-I at:D-38, Industrial Area, Haridwar, Uttarakhand; 2.Unit-II at

:YOGPEETH, Maharishi Dayanand Gram, Delhi Highway, Haridwar; and 3.Unit-III:Vill-

Padartha, Haridwar, Uttarakhand, India.

The Company was originally formed as a Private Limited Company on 13th January, 2006

and subsequently converted into Public Limited Company on 25th June, 2007. Presently, the

Board of Directors of the Company is managed by Sri Acharya BAL KRISHNAJI as its

Managing Director and Swami Muktanandji and Sri Ajay Kumar Arya, are the Directors of

the Company.

The Memorandum and Articles of Association of the Company, contains:

To manufacture, process, refine, formulate, import, export and deal in all kinds of Ayurvedic

and herbal Products, Life Savings Drugs etc. apart from so many other related objects. The

concept for forming this Company was to “link the rising destiny of millions of rural masses

on the one hand and many more suffering and leading unhealthy urban life style on the

other”.

The View of the Respected Swami Ramdevji, the renowned YOGA GURU and Sri Acharya

Balkrishnaji, made the concept into writing through formation of the Company

“PATANJALI AYURVEDA LIMITED”. PATANJALI AYURVEDA Ltd is a company that

7
functions like all other companies under the Rules and Regulations of the Company Law

Affairs and several other Laws applicable for these type of Industries.

At micro level the challenge is no less tough. Along with PRANAYAM, the wisdom of our

ancient sages, the organic food products and herbal medicines churned out of this unit, trying

to undertake the threats to fight out the dreaded and deadly diseases like CANCER and

AIDS. Claim for having found a lasting cure for many other relatively more excessive but

equally tormenting diseases like Diabetes, Arthritis and Thyroid is already entrenched with

thousands of patients cured with fulfillment.

Superior quality of our products at a fair price is not the only concern that we have. Getting

our patients rid of their diseases is again too limited a goal for us to seek. A holistic approach

to improve the quality of life of all beings, world over, is the purpose behind our being.

Getting eliminate the food we consume of the pollutants in the form of poisonous pesticides

and chemical fertilizers that our farmers use, is a goal that we strive to accomplish by

providing our people the eatables that are cultivated in organic and natural manures and pest

repellents.

The bringing of Ayurvedic medicines along with Pranayama, Asnaas, pure food and natural

drinks is a package perhaps the world was waiting for long, for the two saints in the form of

SWAMI RAMDEVJI and ACHARYA BALKRISHNAJI,

Units of Patanjali Ayurveda Limited:

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Already 12 successful units running including units for Packaging material and Containers
e.g. flour mill, candy plant, herbal cosmetic and detergent plants, digestives unit, juice plant
etc.

Co-packing facility-Tetra Pak

Multi-fruit juice processing line

Neutraceutical Processing Line

Sale Channels: Patanjali brand with national and international reach, more than 85,000 retail
channels-accessible to Patanjali products

Employment Generation:

Currently PAL employs more than 6000 laborers in its processing activities.

More than 400 Sales Staff.

PAL has more than 300 technically qualified employees.

PAL has provided more than 2.00 Lac indirect employment.

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 1.1.OBJECTIVE OF THE STUDY

The main objective to study this project is to know about the different strategies of Patanjali
Ayurveda.

The main objectives in the mind:-

1. To study, whether Patanjali Ayurvedaproducts are genuine or not.

2. To study, why people prefer Patanjali Ayurveda products.
3. To study, whether customers are satisfied using Patanjali products.
4. To study, whether the huge rise of indigenous Patanjali products good for our
country.
5. To study, whether is it good to buy Patanjali products for our Indian economy?

10
 1.2.DEFINITION OF TERMS

1.2.1. MARKETING

Marketing is the subject and management of exchange relationships. The American

Marketing Association has defined marketing as "the activity, set of institutions, and

processes for creating, communicating, delivering, and exchanging offerings that have value

for customers, clients, partners, and society at large."

The techniques used in marketing include choosing target markets through market analysis

and market segmentation, as well as understanding methods of clout on the consumer

behavior.

From a societal point of view, marketing provides the link between a society's material

requirements and its economic patterns of response. This way marketing satisfies these needs

and wants through the advancement of exchange processes and the building of long-term

relationships.

In the case of nonprofit organization marketing, the aim is to deliver a message about the

organization's services to the applicable audience. Governments often employ marketing to

communicate messages with a social aspiration, such as a public health or safety message, to

citizens.

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1.2.2. MARKETING STRATEGIES

A marketing strategy is a process or model to allow a company or organization to focus

limited resources on the best opportunities to increase sales and thereby accomplish a

sustainable competitive advantage.

Two major troop of marketing strategies can be distinguished: (a) Strategies, which describe

how to clout the relevant market. On the other hand there are (b) Strategies, which describe,

to which extend an organization employs “power” or “force” to tackle market related issues.

For (a) 4 different types can be differentiated:

Segment strategies: Which market in terms of product/customer-combinations will be

managed? Which products and /or services will be offered to which customer segment?

Strategies for market stimulation: Which marketing instruments will be employed in order to

develop certain preferences?

Strategies for market itemization: Which fundamental market items (in terms of structures)

are useful? Does the organization employ mass marketing or segment marketing techniques?

Does the organization cover the entire market or “only” parts of this market?

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Strategies for market areas: Which areal dimensions should be used to implement a strategy?

For (b) 3 types can be distinguished, too:

Pull back strategy: to make a strategic withdrawal (in military terms: a fall back strategy)

Assert strategy: to assert and to extend a certain position

Competition strategies.

1.2.3. MARKETING MIX

Marketing involves a number of activities. To begin with, an organization may decide on its

target group of customers to be served. Once the target group is decided, the product is to be

placed in the market by providing the appropriate product, price, distribution and

promotional efforts. These are to be combined or mixed in an appropriate proportion so as to

achieve the marketing goal. Such mix of product, price, distribution and promotional efforts

is known as ‘Marketing Mix’. According to Philip Kotler “Marketing Mix is the set of

controllable variables that the firm can use to influence the buyer’s response”. The

controllable variables in this context refer to the 4 ‘P’s [product, price, place (distribution)

and promotion]. Each firm strives to build up such a composition of 4‘P’s, which can create

highest level of consumer satisfaction and at the same time meet its organizational objectives.

Thus, this mix is assembled keeping in mind the needs of target customers, and it varies from

one organization to another depending upon its available resources and marketing objectives.

Let us now have a brief idea about the four components of marketing mix.

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Product: Product refers to the goods and services offered by the organization. A pair of

shoes, a plate of dahi-vada, and a lipstick, all are products. All these are purchased because

they satisfy one or more of our needs. We are paying not for the tangible product but for the

benefit it will provide. So, in simple words, product can be described as a bundle of benefits

which a marketer offers to the consumer for a price. While buying a pair of shoes, we are

actually buying comfort for our feet, while buying a lipstick we are actually paying for

beauty because lipstick is likely to make us look good. Product can also take the form of a

service like an air travel, telecommunication, etc. Thus, the term product refers to goods and

services offered by the organization for sale.

Price: Price is the amount charged for a product or service. It is the second most important

element in the marketing mix. Fixing the price of the product is a tricky job. Many factors

like demand for a product, cost involved, consumer’s ability to pay, prices charged by

competitors for similar products, government restrictions etc. have to be kept in mind while

fixing the price. In fact, pricing is a very crucial decision area as it has its effect on demand

for the product and also on the profitability of the firm.

Place: Goods are produced to be sold to the consumers. They must be made available to the

consumers at a place where they can conveniently make purchase. Woolens are

manufactured on a large scale in Ludhiana and you purchase them at a store from the nearby

market in your town. So, it is necessary that the product is available at shops in your town.

This involves a chain of individuals and institutions like distributors, wholesalers and

14
retailers who constitute firm’s distribution network (also called a channel of distribution).

The organization has to decide whether to sell directly to the retailer or through the

distributors/wholesaler etc. It can even plan to sell it directly to consumers. The choice is

guided by a host of factors about which you will learn later in this chapter.

Promotion: If the product is manufactured keeping the consumer needs in mind, is rightly

priced and made available at outlets convenient to them but the consumer is not made aware

about its price, features, availability etc., its marketing effort may not be successful.

Therefore promotion is an important ingredient of marketing mix as it refers to a process of

informing, persuading and influencing a consumer to make choice of the product to be

bought. Promotion is done through means of personal selling, advertising, publicity and sales

promotion. It is done mainly with a view to provide information to prospective consumers

about the availability, characteristics and uses of a product. It arouses potential consumer’s

interest in the product, compare it with competitors’ product and make his choice.

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THERE ARE THREE ASPECTS TO ANY PRODUCT OR SERVICE:

1 - Core Benefits

• in-use benefits

• psychological benefits (e.g., self-image enhancement, hope, status, self worth)

• problem reduction benefits(e.g., safety, convenience)

2 - Tangible Product or Service

• product attributes and features

• quality

• styling

• packaging protection and label information

• brand name

3 - Augmented Product or Service

• warranty

• installation

• delivery

• credit availability

• after-sale service and maintenance

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1.1.1 Classifying Products

Product management involves developing strategies and tactics that will increase product

demand over the product's life cycle.

One useful technique in understanding a product is the Aspinwall Classification System. It

classifies and rates products based on five variables:

• 1) replacement rate - how frequently is the product repurchased

• 2) gross margin - how much profit is obtained from each product

• 3) buyer goal adjustment - how flexible are the buyers' purchasing habits in regards to

this product

• 4) duration of product satisfaction - how long will the product produce benefits for

the user

• 5) duration of buyer search searchbehaviour - how long will they shop for the product

1.1.2 Types of Products

There are several types of products:

• consumer products - used by end users

• industrial products - used in the production of other goods

• convenience goods - purchased frequently and with minimal effort

• impulse goods - purchase stimulated by immediate sensory cues

• emergency goods - goods required immediately

• shopping goods - some comparison with other goods

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• specialty goods - extensive comparisons with other goods and a lengthy information

search

• unsought goods - e.g., cemetery plots, insurance

• perishable goods - goods that will deteriate quickly even without use

• durable goods - goods that survive multiple use occasions

• non-durable goods - goods that are used up in one use occasion

• capital goods - installations, equipment, and buildings

• parts and materials - goods that go into a finished product

• supplies and services - goods that facilitate production

• commodities - undifferentiated goods (e.g., wheat, gold, sugar)

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TARGET MARKET

A target market is the market segment which a particular product is marketed to. It is often

defined by age, gender and/or socio-economic grouping.

Targeting strategy is the selection of the customers you wish to service. The decisions

involved in targeting strategy include:

• how many segments to target

• which segments to target

• how many products to offer

• which products to offer in which segments

There are three steps to targeting:

• market segmentation

• target choice

• product positioning

Targeting strategy decisions are influenced by:

• market maturity

• diversity of buyers needs and preferences

• the company's size

• strength of the competition

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POSITIONING (MARKETING)

In marketing, positioning is the technique in which marketers try to create an image or

identity for a product, brand, or company. It is the 'place' a product occupies in a given

market as perceived by the target market. Positioning is something that is done in the minds

of the target market. A product's position is how potential buyers see the product. Positioning

is expressed relative to the position of competitors.

Re-positioning involves changing the identity of a product, relative to the identity of

competing products, in the collective minds of the target market.

The ability to spot a positioning opportunity is a sure test of a persons' marketing ability.

Successful positioning strategies are usually rooted in a product's sustainable competitive

advantage. The most common basis' for constructing a product positioning strategy are:

• positioning on specific product features

• positioning on specific benefits, needs, or solutions

• positioning on specific use categories

• positioning on specific usage occations

• positioning against another product

• positioning through product class dissociation

More generally, there are three types of positioning concepts:

• 1 functional positions

o solve problems

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 o provide benefits to customers

• 2 symbolic positions

o self-image enhancement

o ego identification

o belongingness and social meaningfulness

o affective fulfillment

• 3 experiential positions

o provide sensory stimulation

o provide cognitive stimulation

Positioning is facilitated by a graphical technique called perceptual mapping, various survey

techniques, and statistical techniques like multi dimensional scaling, factor analysis, conjoint

analysis, and logit analysis.

Every marketing strategy is unique, but if we abstract from the individualizing details, each

can be reduced into a generic marketing strategy. There are a number of ways of categorizing

these generic strategies. A brief description of the most common categorizing schemes is

presented below. For a more detailed explanation, follow the links.

• Strategies based on market dominance - In this scheme, firms are classified based

on their market share or dominance of an industry. Typically there are four types of

market dominance strategies:

o leader

o challenger

o follower

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 o nicher

• Porter generic strategies - Michael Porter assessed strategy on the dimensions of

strategic scope and strategic strength. Strategic scope refers to the breadth of market

penetration while strategic strength refers to the firm’s sustainable competitive

advantage. He felt three types were important:

o cost leadership

o product differentiation

o market segmentation

• Innovation strategies - This deals with the firm’s rate of new product development

and business model innovation. It asks whether the company is on the cutting edge of

technology and business innovation. There are three types:

o pioneers

o close followers

o late followers

• Growth strategies - In this scheme we ask the question, “How should the firm

grow?”. There are a number of different ways of answering that question, but the

most common gives four answers:

o horizontal integration

o vertical integration

o diversification (or conglomeration)

o intensification

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 • Aggressiveness strategies - This asks whether a firm should grow or not, and if so,

how fast. One scheme divides strategies into:

o building

o holding

o harvesting

A more detailed schemes uses the categories:

• prospector

• analyzer

• defender

• reactor

MARKETING MIX

The marketing mix approach is one model of crafting and implementing marketing strategies.

It recognizes that marketers have essentially four variables to use when crafting a marketing

strategy and writing a marketing plan. They are price, promotion, product and distribution.

They are sometimes referred to as the four p's.

A marketing mix is a combining of these four variables in a way that will meet or exceed

organizational objectives. A separate marketing mix is usually crafted for each product

offering. When constructing the mix, marketers must always be thinking of who their target

market. Mix coherency refers to how well the components of the mix blend together. A

strategy of selling expensive luxury products in discount stores has poor coherency between

distribution and product offering.

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Behavioral segmentation has the advantage of using variables that are closely related to the

product itself. It is a fairly direct starting point for market segmentation. Bases for

Segmentation in Industrial Markets in contrast to consumers, industrial customers tend to be

fewer in number and purchase larger quantities. They evaluate offerings in more detail, and

the decision process usually involves more than one person. These characteristics apply to

organizations such as manufacturers and service providers, as well as resellers, governments,

and institutions.Many of the consumer market segmentation variables can be applied to

industrial markets. Industrial markets might be segmented on characteristics such as: In

industrial markets, customer location may be important in some cases. Shipping costs may be

a purchase factor for vendor selection for products having a high bulk to value ratio, so

distance from the vendor may be critical. In some industries firms tend to cluster together

geographically and therefore may have similar needs within a region.In industrial markets,

patterns of purchase behavior can be a basis for segmentation. Such behavioral

characteristics may include:

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Market segmentation: is separating a market into distinct groups of potential consumers who

share common characteristics and interests and who are likely to be attracted to particular

products or services. Segmentation allows you to develop products and plans which fit the

needs of customers more efficiently. Market segmentation is also separating the customers

into different groups, and sometimes can split up into different age groups because different

age customers are interested in different things from the business. Market segmentation is a

marketing approach that encompasses the identification of different groups of customers with

different needs or responses to marketing activity. The market segmentation process also

considers which of these segments to target.

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26
MAIN MARKETING STEPS ADOPTED BY VQMS DELHI LABORATORIES LTD.

Market Analysis Summary: The main chapter level topic should be a summary of its sub-

topics. If you finish the sub-topics first, it will be easier to create a summary paragraph of the

most important points.

Ideal Target: Create a profile of one ideal target customer. Use your imagination. Describe

the ideal target customer including why he or she buys, what his or her problem is, how old,

economic status, family status, favorite media, where you find this person to send a message,

and more. A picture is a good idea.

Market Segmentation: Most markets divide into meaningful groups. For a local restaurant,

segments might include families, university students, high school students, older people.

Create a table showing how the market divides into segments, as suggested by this

illustration:

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The Market Analysis table is a simple spreadsheet, with projected years along the top,

segment names on the side, and totals along the bottom. For this assignment you are looking

at larger general market segments, so make educated guesses, as long as they make sense.

Market Growth: Ideally you cite experts: a market expert, market research firm, trade

association, or credible journalist. This isn’t a class in market research. For this assignment,

you have only three pages total, including the table and chart, so be specific and be brief.

Market Trends: Market trends could be changes in demographics, changes in customer

needs, a new sense of style or fashion, or something else. It depends on what business you

are in.

Look to market trends as a way to get ahead of the market, to know where it is going before

it gets there.

Market Needs: For each market segment included in your strategy, explain the market

needs that lead this group to buy your product or service:

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 • Did the need exist before the business was there?

• Are there other products or services or stores that offer different ways to satisfy this

same need?

• Do you have market research related to this market need?

Competition: Mention the main competitors, and the strengths and weaknesses of main

competitors. You might consider:

• Their products, pricing, reputation, management, financial position, channels of

distribution, brand awareness, business development, technology, or other factors that

you feel are important.

• What segment of the market do they operate in? What seems to be their strategy?

• How much do they impact your products, and what threats and opportunities do they

represent?

29
MARKETING MIX

Marketing involves a number of activities. To begin with, an organization may decide on its

target group of customers to be served. Once the target group is decided, the product is to be

placed in the market by providing the appropriate product, price, distribution and

promotional efforts. These are to be combined or mixed in an appropriate proportion so as to

achieve the marketing goal. Such mix of product, price, distribution and promotional efforts

is known as ‘Marketing Mix’. According to Philip Kotler “Marketing Mix is the set of

controllable variables that the firm can use to influence the buyer’s response”. The

controllable variables in this context refer to the 4 ‘P’s [product, price, place (distribution)

and promotion]. Each firm strives to build up such a composition of 4‘P’s, which can create

highest level of consumer satisfaction and at the same time meet its organizational objectives.

Thus, this mix is assembled keeping in mind the needs of target customers, and it varies from

one organization to another depending upon its available resources and marketing objectives.

Let us now have a brief idea about the four components of marketing mix.

Product: Product refers to the goods and services offered by the organization. A pair of

shoes, a plate of dahi-vada, and a lipstick, all are products. All these are purchased because

they satisfy one or more of our needs. We are paying not for the tangible product but for the

benefit it will provide. So, in simple words, product can be described as a bundle of benefits

30
which a marketer offers to the consumer for a price. While buying a pair of shoes, we are

actually buying comfort for our feet, while buying a lipstick we are actually paying for

beauty because lipstick is likely to make us look good. Product can also take the form of a

service like an air travel, telecommunication, etc. Thus, the term product refers to goods and

services offered by the organization for sale.

Price: Price is the amount charged for a product or service. It is the second most important

element in the marketing mix. Fixing the price of the product is a tricky job. Many factors

like demand for a product, cost involved, consumer’s ability to pay, prices charged by

competitors for similar products, government restrictions etc. have to be kept in mind while

fixing the price. In fact, pricing is a very crucial decision area as it has its effect on demand

for the product and also on the profitability of the firm.

Place: Goods are produced to be sold to the consumers. They must be made available to the

consumers at a place where they can conveniently make purchase. Woolens are

manufactured on a large scale in Ludhiana and you purchase them at a store from the nearby

market in your town. So, it is necessary that the product is available at shops in your town.

This involves a chain of individuals and institutions like distributors, wholesalers and

31
retailers who constitute firm’s distribution network (also called a channel of distribution).

The organization has to decide whether to sell directly to the retailer or through the

distributors/wholesaler etc. It can even plan to sell it directly to consumers. The choice is

guided by a host of factors about which you will learn later in this chapter.

Promotion: If the product is manufactured keeping the consumer needs in mind, is rightly

priced and made available at outlets convenient to them but the consumer is not made aware

about its price, features, availability etc., its marketing effort may not be successful.

Therefore promotion is an important ingredient of marketing mix as it refers to a process of

informing, persuading and influencing a consumer to make choice of the product to be

bought. Promotion is done through means of personal selling, advertising, publicity and sales

promotion. It is done mainly with a view to provide information to prospective consumers

about the availability, characteristics and uses of a product. It arouses potential consumer’s

interest in the product, compare it with competitors’ product and make his choice.

32
1.2 "POSITIVE" MARKET SEGMENTATION

Market segmenting is dividing the market into groups of individual markets with similar

wants or needs that a company divides the market into distinct groups who have distinct

needs, wants, behavior or who might want different products & services. Broadly, markets

can be divided according to a number of general criteria, such as by industry or public versus

private although industrial market segmentation is quite different from consumer market

segmentation, both have similar objectives. All of these methods of segmentation are merely

proxies for true segments, which don't always fit into convenient demographic boundaries.

Consumer-based market segmentation can be performed on a product specific basis, to

provide a close match between specific products and individuals. However, a number of

generic market segment systems also exist, e.g. the system provides a broad segmentation of

the population of the United States based on the statistical analysis of household and

geodemographic data.

The process of segmentation is distinct from and positioning. The overall intent is to identify

groups of similar customers and potential customers; to prioritize the groups to address; to

understand their behavior; and to respond with appropriate marketing strategies that satisfy

the different preferences of each chosen segment. Revenues are thus improved.

33
1.3 POSITIONING

Once a market segment has been identified (via segmentation), and targeted (in which the

viability of servicing the market intended), the segment is then subject to positioning.

Positioning involves ascertaining how a product or a company is perceived in the minds of

consumers.

This part of the segmentation process consists of drawing up a perceptual map, which

highlights rival goods within one's industry according to perceived quality and price. After

the perceptual map has been devised, a firm would consider the marketing communications

mix best suited to the product in question.

MEASURING CUSTOMER SATISFACTION

• Asking the wrong questions based on the lens of the organisation. The Leadership

Factor uses the lens of the customer to produce measures that accurately reflect how

satisfied customers really feel.

• They use simplistic scales that are too crude to monitor fine changes in customer

satisfaction. The Leadership Factor uses advanced methodologies, advocated by

leading world experts such as The University of Michigan, to provide the best

possible information for decision making.

34
• They only ask about performance, failing to understand that satisfaction is about the

extent to which you have met or exceeded customers requirements. The Leadership

Factor measures importance as well as satisfaction to provide a fuller understanding.

In addition, advanced statistical techniques are used to pinpoint the key drivers of

satisfaction and loyalty.

• They encourage complacency by failing to understand the difference between making

more customers satisfied and making customers more satisfied. The Leadership

Factor provides tough measures that leave no hiding places for those delivering a

poor customer experience and motivates stronger organisations to move customers

from mere satisfaction to delight, commitment and loyalty.

• They have no real understanding of how they compare with other organisations.

Based on the largest UK database of customer satisfaction, The Leadership Factor

35
 tells you precisely how successful you are at satisfying customers compared with

other organisations, where you out-perform or under-perform them, and how you

compare to Best in Class.

• Most seriously they don t have the information or understanding to take effective

action to improve customer satisfaction. As the UK s leading experts in Customer

Satisfaction Measurement, The Leadership Factor will highlight a small number of

clear and actionable Priorities For Improvement (PFIs) that will be the best way to

improve customer satisfaction as well as loyalty and profit.

CATEGORY OF NEED

The following classifications are as follows:-

• Strategic - your offering is in some way important to the enterprise mission,

objectives and operational oversight. For example, a service that helped evaluate

capital investment opportunities would fall into this domain of influence. The

purchase decision for this category of offering will be made by the prospect's top

level executive management.

• Operations - your offering affects the general operating policies and procedures.

Examples might be an employee insurance plan or a corporate wide communications

system. This purchase decision will be made by the prospect's top level operations

management.

• Functional - Offering deals with a specific function within the enterprise such as data

processing, accounting, human resources, plant maintenance, engineering design,

36
manufacturing, inventory control, etc. This is the most likely domain for a product or

service, but you must recognize that the other domains may also get involved if the

purchase of the product or service becomes a high profile decision. This purchase

decision will be made by the prospect's functional management.

37
38
 2. COMPANY PROFILE

2.1.PATANJALI AYURVEDA LTD.

Introduction:

Patanjali Ayurveda Kendra Ltd was officially inaugurated by Pram Yoga Rishi Swami
Ramdevji & Ayurveda Shiromani Rishikalpa Acharya Shree Balkrishnaji on 27 September
2007 (2064/6/10 B.S.) and started its operation as an Patanjali Ayurveda Kendra Ltd at
swoyambhu, Katmandu, Nepal with the ultimate aim of providing holistic, natural and
effective Ayurveda treatment.

Profile:

Establishing Date 27 September2007

Company Patanjali Ayurveda Kendra Pvt.Ltd.

Promoters Mr. Babukaji Shrestha, President

Mr. Raju Shrestha, Managing Director

Mr. Pawman Subedi, Director

Type of Business Sole Distributor of Ayurvedic Product of Divya Pharmacy ,

Divya Yoga Sadhana, Divya Prakashan& Patanjali Ayurveda
Ltd., Haridwar, India

Head Office Patanjali Ayurveda Kendra Pvt.Ltd

Swotantramargh,Swoyambhu
Chakra path, Kathmandu, Nepal

Tel: +977-1-4674666 / 4674777

Fax No.: +977-1-4033557

39
 Email: patanjali@wlink.com.np / Patanjali@mail.com.np

www.patanjaliayurveda.com

Number of employees
Kathmandu Office 25 Nos.

Butawal Office 7 Nos.

Suppliers Divya Pharmacy , Haridwar, India

Divya Yoga Sadhana, Haridwar, India
Divya Prakashan, Haridwar, India
Patanjali Ayurveda Ltd., Haridwar, India

Bank Details
Name Bank of Katmandu

Address Head Office / Thamel Branch

Swift code BOKLNPKA

Beneficiaries Details
Name Patanjali Ayurveda Kendra Pvt.Ltd
Address Swoyambhu, Kathmandu
A/C Number 470000061438 / 060100061438

Govt. Register Company Registrar Office Tripureshower

On 2063.08.15 BS. Reg. No. 42691.

Tax office on 2063.08.25 BS.

PAN/VAT No. 302445329.

Division Of Drug Administration

On 2063.10.19 BS. Reg. No. 17243.

Division Of Ayurvedic Administration

On 2065.01.30 BS. Reg.No. 1789

40
PRODUCT CATALOGUE

41
 TOTAL INCOME COMPOSITION OF PATANJALI PRODUCTS AND THEIR
CHALLENGES

This diagram shows the income composition of patanjali Ayurveda, which shows that 21% of
income is generated from health care ayurvedic products of patanjali, 40% of total income
generated by patanjali is from food and beverages and around 39% of share of income is
generated from cosmetics and home care products of patanjali.

Challenges
• HUL and Dabur focusing back on Herbal
• Late entrant to Advertising game
• Noodle: a risky proposition?
Scaling up and Global expansion

42
 RAMDEV EXPANDS EMPIRE BEYOND YOGA TO FMCG, BUSSINESS POISED
TO TOUCH RS. 2,000cr THIS FISCAL YEAR.

Currently, Patanjali is present in almost all categories of personal care and food products --
soaps, shampoos, dental care, balms, skin creams, biscuits, ghee, juices, honey, Atta, mustard
oil, masala, sugar and much more. Going by current turnover projections of Rs 2,000 crore,

This is despite the fact that most of Patanjali's products are priced lower than its competitors.
What gives the company an edge is its very low expenses on advertisements. In comparison,
leading FMCG companies spend about 20-30% of their sales on advertisements.

With the Patanjali brand's growing reach and popularity among consumers, it's now being
discussed in corporate boardrooms as well. This is in sharp contrast to its quiet beginning in
2007. As the demand for his products grew, Baba Ramdev realized the huge scope within the
FMCG sector and started building the range, taking on deep-pocketed multinationals.

43
 2.2.MISSION AND VISION OF PATANJALI AYURVEDA

MISSION:-

1. To reach the great heights

2. To restart the swadeshi movement
3. To produce good quality products at cheaper rates
4. To introduce Indian Ayurveda to this modern world
5. To crack the maximum market share.

VISION:-

1. To be a top Ayurveda company among all MNC’s

2. To Re-introduce the Indian Ayurveda
3. To crack the world’s attraction to our India
4. To work for the welfare of Humanity
5. To reinvent our traditional knowledge of Yoga and Ayurveda

MARKETING MIX OF PATANJALI AYURVEDA

Founded in 2006 by Acharya BAL Krishna and Baba Ramdev, Patanjali Ayurveda is an
Indian FMCG Company. Patanjali Ayurveda happens to be the fastest growing FMCG
Company in India. Patanjali Ayurveda imports herbs from Himalayas Nepal.

Patanjali is manufacturing its products in Nepal, working under the brand name of Nepal
Gramudhyog. Patanjali Ayurveda is the India’s fastest growing FMCG Company is valued at
3000 Crore and generated a revenue of 5000 Crore for the fiscal year of 2015-16.

Hindustan Uniliver and P&G are the FMCG companies, whose market share has been
potentially affected by Patanjali. P&G and Hindustan Uniliver are on back foot and trying to
pull customers back by providing huge discounts and remarkable offers.

44
 PRICE
PRODUCT Value Based Pricing
All Existing Products +
Herbal Products to treat Alignment of
Cough & Cold Cost, Customer &
Competitors

PLACE
Franchisee PROMOTION
Stores, Super/Hyper Yoga Shivir to create
markets & Online awareness, YouTube
Marketplace Channel, Social Media to
(like target GULF (MENA)
souq.com, desertcart.ae)

PRODUCTS IN THE MARKETING MIX OF PATANJALI AYURVEDA

Baba Ramdev is steadily pushing Indian people to start using Indian brands and save the
economic growth of the company. Patanjali is planning to take over all reputed brands
dealing in beverages and foods.

The service (yoga) that Baba Ramdev is selling is the product.

The product "Pranayama" is well suited for all irrespective of class, creed, culture and hence
this success.

Swamiji's unique contribution has been to lead a healthy life through the practice of simple
breathing exercises.

Understand and meet consumers' needs and wants.

The ambiance of patanjali yogpeeth is world class.

45
Swami Ramdev's Divya Medicines are claimed to be one hundred percent natural, no or very
little side effects.

Medicines are available at a very low cost.

Medicines can cure all the diseases from a simple cold to cancer.

Products where Patanjali is present and beating competition are:-

Dabur Honey: Patanjali Ayurveda is providing people with option to buy quality honey at
around 30% lesser price than Dabur.

Colgate: Patanjali Ayurveda is preaching how Colgate cheated people in early days. And
how Ayurveda is the best way to treat your gums and your teeth.

Patanjali Noodles: Patanjali Noodles rose to fame while Maggi was away from the market
and has done quite damage to Maggi, which once was the king of Noodle’s market.

PRICING IN THE MARKETING MIX OF PATANJALI AYURVEDA

Developing an effective pricing strategy remains the most important and difficult part of the
marketing process.

For instance, a nominal 1 per cent increase in price realization will boost net income by 6.40
per cent for Coca-Cola and 28.70 per cent for Philips.

Baba Ramdev's fees of Pranayama is cheap in compare to other medical treatment.

This is the cheapest and the only complete cure to most of the so called incurable diseases
like diabetes, cancer, HIV & AIDS too.

46
47
 PLACE IN THE MARKETING MIX OF PATANJALI AYURVEDA

Patanjali Ayurveda is India’s fastest growing FMCG Company but it is not stopping it from
spreading its wing to neighboring countries like Nepal. Patanjali has a manufacturing unit in
Nepal. Patanjali also imports herbs from Himalayas in Nepal; the well-entrenched trade
relation is helping Patanjali expand its wings in Nepal with great ease.

With the growing outreach in India and Nepal, Baba Ramdev surely will be aiming to
overtake market in lot of other countries. With impressive revenue of 5000 Crores.

In India, 1000’s of stores are now selling Patanjali products, and these stores are exclusively
selling Patanjali, making the local retailer quake. The penetration levels will only rise further
as the margins in the product are good too.

48
 PROMOTION IN THE MARKETING MIX OF PATANJALI AYURVEDA

Patanjali Ayurveda goes with the Slogan “Prakriti ka Ashirwad”. Well, Patanjali Ayurveda
has acquired the requisite fame and popularity among people because of the globally
recognized Yoga Guru, Baba Ramdev. This brand ambassador of Patanjali is single handedly
responsible for the success of the brand. His contribution to people’s life through Yoga is
incredible hence people felt aligned towards him when he launched his very own Indian
FMCG Company.

It is a well-entrenched fact that advertising affects consumers.

Baba Ramdev has hit both the opinions as he is advertising and at the same time not
advertising.

In the year 2002 when Aastha television channel started airing Baba Ramdev's yogic classes;
overnight, Baba Ramdev became a sensation he had hundreds of followers who morphed into
thousands.

Millions around the country follow his programed religiously and use Ayurvedic medicines
prescribed by him.

His yoga sessions were beamed live into 170 countries.

Baba Ramdev's pack one DVD, two Video CDs written three books on Yoga, Pranayama
Herbal Remedies and Magazines are available.

He has mastered the art of mass customization and practices so that each individual feels that
he is talking to him individually.

49
 2.3.UNIQUE SELLING PROPOSITION (USP)

Constructing a "Disease Free Society - Medicines Free World", embraced dream of BABA
RAMDEV.

It is declared that after comprehensive research of the antique outcome of Pranayama Yoga
during last numerous years, it has been demonstrated now that proper Breathing Technique's
practice can antidote all diseases completely without medicines or surgery.

He claims to have trained 35,000 persons that are well equipped to hold yoga classes in
different regions of the country.

Patanjali Yoga Ashram has set up 535 branches and 15 more centers are in the process of
being entrenched.

This is engaged towards creating a new USP wherein any requirement of the customers can
be fulfilled to without setback.

This is the unique selling proposition of Patanjali Ayurveda.

50
 2.4.SWOT ANALYSIS

S-STRENGTH

1. Brand Name
2. Strong TQM
3. Excellent Marketing Strategy
4. Innovative Personality
5. Cheap price cum Charming Products

W- WEAKNESS

1. No standard advertising
2. Lower Concentration on Other top countries
3. Lower Marketing strategies

O-OPPORTUNITIES

1. Possibility of Becoming World’s Top MNC

2. Expansion
3. Maximum Marketing Share

T-THREATS

1. Govt. Regulations
2. Maximum Taxes
3. Lack of Support from Foreign Government.

51
 3.6.PATANJALI KEY TO SUCCESS

1. Less Price:

Patanjali products are available at an attractive discount as compared to their competition.

The company sources products directly from farmers and cuts on middlemen to boost profits.

Hence, they are able to reduce their raw material procurement cost and are able to produce

goods at a much cheaper price.

2. Strong Distribution Channels:

Patanjali products are sold through three types of medical centers. These include Patanjali

Chikitsalayas which are basically clinics. Then there are Patanjali Arogya Kendra’s which

are health and wellness centers. They also have non-medicine channels called Swadeshi

Kendra’s.

3. Strong Brand Association with Health Because Of Baba Ramdev:

Patanjali is able to create a brand perception of health and wellness among the Indian

masses, primarily because of Baba Ramdev’s association. Hence, more people are getting

attracted to Patanjali’s products and are re-buying products more frequently.

4. Simple Packaging Gives It A Natural Look:

Patanjali sells its products with a very simple packaging. Now, many would feel that it is not

a good strategy but the truth is it is working for Patanjali. With a product like Patanjali,

where the message is to promote ‘Ayurveda’ and ‘Health’, simple packaging can be a very

52
effective way of promotion. With a natural look (especially with leaves and herbs),

consumers get a feeling of health and wellness and they are attracted to buy the product.

5. Promotion through Media:

Baba Ramdev is considered to be a guru of yoga across the globe. He has been very co-

operative with press and media and has maintained good relationships with them. Also, he is

known to have good connections with many politicians. So he used both the facts to publicize

his company free of cost.

6. Word-Of-Mouth Promotion:

Advertising and promotions typically account for 12-20% of revenue expenditure by

consumer goods companies. When a new company gets into the business, this spending is

significantly higher. During the introduction stage, Patanjali followed a unique word of

mouth publicity model and the entire revenue was without any advertising. It was because of

the brand loyalty of its customers that the word-of-mouth promotion proved so successful for

the company.

53
 3.7.COMPETITION FROM PATANJALI PROMPTS FMCG TO HIT BACK

Watching Ramdev's moves are rival consumer goods companies. The Rs 2,000-crore

Patanjali, looking to grow its turnover two-and-a-half times in FY16, is striking at the heart

of their business, making its presence felt across categories.

The stiff competition has prompted most of the fast-moving consumer goods (FMCG)

companies to hit back. Consider what the country's biggest FMCG Company Hindustan

Unilever (HUL) is doing: It has 'resurrected' its herbal brand Ayush, launching it online. A

bunch of new products across hair care, skin care and pain balms have been launched on e-

commerce platforms under Lever Ayush Therapy. The plan is to take the brand to general

trade in the future. The firm is also expected to increase its 'natural' offerings, moving into

newer categories such as health foods, oral care, lip care etc.

HUL's managing director and chief executive Sanjiv Mehta says, "What we find is that

consumers' interest in natural/ayuvedic products is growing. It is one of the emerging trends

now. As a consumer goods company, we have to respond to this, which is why Ayush, which

existed in our portfolio, has now staged a comeback. We also acquired Indulekha to grow our

presence in the value-added hair oil segment. We will continue to make investments in this

area."

Companies that have been directly affected by Patanjali such as Dabur, Emami and Himalaya

- all three operate in the herbal/naturals space - say they will buttress their portfolios, making

54
their products relevant to consumers.

Harsh Agarwal, director of Emami, says he is open to acquisitions to strengthen his firm's

position in the herbal space. "Ayurveda has been around for a long time. I don't see this as a

new trend. But, the emergence of new players is happening right now. We welcome them and

will continue to fortify our range with new variants, launches and acquisitions."

Emami had acquired hair oil brand Kesh King last year and was also in the race to acquire

Indulekha before opting out. Agarwal says he is looking at new targets, some of them located

in the south.

Industry source say herbal and non-herbal companies are now going back to the drawing

board, looking at how they can incorporate natural ingredients when developing new

products.

Godrej Consumer, for instance, has launched a neem-based mosquito coil; a crème hair color

that has coconut oil; and launched new variants under Godrej No 1, its natural’s platform in

soaps. Sunil Kataria, business head (India and Saarc region) at Godrej Consumer, says, "Our

endeavor will be to fortify these products as we come up with new innovations in other

categories."

Colgate, whose volume growth has taken a hit on account of Patanjali's Dent Kanti

toothpaste, according to brokerage firm Credit Suisse, is aggressively advertising its active

55
salt neem toothpaste, launched a few months ago.

This toothpaste, a variant of Colgate's Active Salt toothpaste, was made in India to address

the herbal coup, according to industry sources. Colgate is expected to come up with more

such offerings as Patanjali's threatens to eat into its business.

Dabur, on the other hand, is introducing new Ayurvedic products targeting men, women, and

children. Existing products such as Dabur Honey and Chawanprash are being pushed

aggressively in the marketplace as Patanjali positions itself as a price warrior in these

categories.

Himalaya - another herbal products company - recently launched its range of wellness

products which aim to provide therapeutic solutions to consumers. Products ranging from

anti-hair fall creams to pills for staying slim are part of this new initiative.

56
PREPARING TO PUT UP A FIGHT

HUL

Company "resurrects" herbal brand, Ayush, launching it online. Plans to increase "natural"

offerings

Emami

Firm open to acquisitions for strengthening the company's position in the herbal space

Godrej Consumer

Launches neem mosquito coil, a crème hair color that has coconut oil, new variants in

naturals soaps

Colgate

Firm aggressively advertising its active salt neem toothpaste, as its volume was hit after

Patanjali's Dent Kanti

Dabur

Firm launching ayurvedic products. Pushing Dabur Honey and Chyawanprash aggressively

57
Himalaya

recently launched its range of wellness products which aim to provide therapeutic solutions

to consumer.

58
 4. LITERATURE REVIEW

INTRODUCTION TO MARKETING
Marketing is the process of performing market research, sellingproducts and/or

services to customers and promoting them via advertising to further enhance

sales. It generates the strategy that underlies sales techniques, business

communication, and business developments. It is an integrated process through

which companies build strong customer relationships and create value for their

customers and for themselves.

Marketing is used to identify the customer, to satisfy the customer, and to keep

the customer. With the customer as the focus of its activities, it can be

concluded that marketing management is one of the major components of

business management. Marketing evolved to meet the stasis in developing new

markets caused by mature markets and overcapacities in the last 2-3 centuries.

The adoption of marketing strategies requires businesses to shift their focus

from production to the perceived needs and wants of their customers as the

means of staying profitable.

The term marketing concept holds that achieving organizational goals depends

on knowing the needs and wants of target markets and delivering the desired

satisfactions. It proposes that in order to satisfy its organizational objectives, an

59
organization should anticipate the needs and wants of consumers and satisfy

these more effectively than competitors.

An orientation, in the marketing context, related to a perception or attitude a

firm holds towards its product or service, essentially concerning consumers and

end-users. Throughout history, marketing has changed considerably in time

with consumer tastes.

Contemporary approaches

Recent approaches in marketing include relationship marketing with focus on

the customer, business marketing or industrial marketing with focus on an

organization or institution and social marketing with focus on benefits to

society. New forms of marketing also use the internet and are therefore called

internet marketing or more generally e-marketing, online marketing, search

engine marketing, desktop advertising or affiliate marketing. It attempts to

perfect the segmentation strategy used in traditional marketing.

60
1.4 Customer orientation

A firm in the market economy survives by producing goods that persons are

willing and able to buy. Consequently, ascertaining consumer demand is vital for a

firm's future viability and even existence as a going concern. Many companies

today have a customer focus (or market orientation). This implies that the company

focuses its activities and products on consumer demands. Generally, there are three

ways of doing this: the customer-driven approach, the market change identification

approach and the product innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic

marketing decisions. No strategy is pursued until it passes the test of consumer

research. Every aspect of a market offering, including the nature of the product

itself, is driven by the needs of potential consumers. The starting point is always

the consumer. The rationale for this approach is that there is no reason to spend

R&D funds developing products that people will not buy. History attests to many

products that were commercial failures in spite of being technological

breakthroughs.

A formal approach to this customer-focused marketing is known as SIVA

(Solution, Information, Value and Access). This system is basically the four Ps

renamed and reworded to provide a customer focus. The SIVA Model provides a

61
demand/customer-centric alternative to the well-known 4Ps supply side model

(product, price, placement, promotion) of marketing management.

Product → Solution

Price → Value

Place → Access

Promotion → Information

If any of the 4Ps were problematic or were not in the marketing factor of the

business, the business could be in trouble and so other companies may appear in

the surroundings of the company, so the consumer demand on its products will

decrease.

62
1.4.1 Organizational orientation

In this sense, a firm's marketing department is often seen as of prime importance

within the functional level of an organization. Information from an organization's

marketing department would be used to guide the actions of other departments

within the firm. As an example, a marketing department could ascertain (via

marketing research) that consumers desired a new type of product, or a new usage

for an existing product. With this in mind, the marketing department would inform

the R&D department to create a prototype of a product/service based on

consumers' new desires.

The production department would then start to manufacture the product, while the

marketing department would focus on the promotion, distribution, pricing, etc. of

the product. Additionally, a firm's finance department would be consulted, with

respect to securing appropriate funding for the development, production and

promotion of the product. Inter-departmental conflicts may occur, should a firm

adhere to the marketing orientation. Production may oppose the installation,

support and servicing of new capital stock, which may be needed to manufacture a

new product. Finance may oppose the required capital expenditure, since it could

undermine a healthy cash flow for the organization.

63
1.5 Marketing research

Marketing research involves conducting research to support marketing activities,

and the statistical interpretation of data into information. This information is then

used by managers to plan marketing activities, gauge the nature of a firm's

marketing environment and attain information from suppliers. Marketing

researchers use statistical methods such as quantitative research, qualitative

research, hypothesis tests, Chi-squared tests, linear regression, correlations,

frequency distributions, poison distributions, binomial distributions, etc. to

interpret their findings and convert data into information. The marketing research

process spans a number of stages, including the definition of a problem,

development of a research plan, collection and interpretation of data and

disseminating information formally in the form of a report. The task of marketing

research is to provide management with relevant, accurate, reliable, valid, and

current information. A distinction should be made between marketing research and

market research. Market research pertains to research in a given market. As an

example, a firm may conduct research in a target market, after selecting a suitable

market segment. In contrast, marketing research relates to all research conducted

within marketing. Thus, market research is a subset of marketing research.

64
Market segmentation

Market segmentation pertains to the division of a market of consumers into persons

with similar needs and wants. For instance, Kellogg's cereals, Fro sites are

marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both goods

denote two products which are marketed to two distinct groups of persons, both

with similar needs, traits, and wants.Market segmentation allows for a better

allocation of a firm's finite resources. A firm only possesses a certain amount of

resources. Accordingly, it must make choices (and incur the related costs) in

servicing specific groups of consumers. In this way, the diversified tastes of

contemporary Western consumers can be served better.

65
 4.1.1. A REPORT ON PATANJALI AYURVEDA

By Varun Mishra Posted May 26, 2016 in Branding, Business, FrontPage, Health, Lifestyle,

Marketing 3 0

Introduction

Patanjali started its operations with Patanjali Yogpeeth in Hardiwar, Uttarakhand. Patanjali

yogpeeth is one of the biggest yoga institutes in the country. Swami Ramdevji and Acharya

Balkrishanaji set up Patanjali Ayurveda Ltd for treatment, research and development and for the

manufacturing of ayurvedic medicines in Yoga and Ayurveda.

Patanjali Yogpeeth offers treatment and scientific research and has brought a coup when it comes

healthcare in the country with the combined approach of Yoga and Ayurveda.

The infrastructural facilities at Patanjali Yogpeeth includes an OPD for free medical

consultation, IPD of thousand beds, laboratory for test investigation of radiology, cardiology and

pathology, a yoga research division, free yoga classes, high quality ayurvedic medicines

manufactured by Divya pharmacy, facilities of library and reading room along with a cyber café,

a huge auditorium, apartments for senior citizens, a grand museum and a sale channel of 11,000

square feet for literature related to yoga and Ayurveda.

66
Patanjali Ayurveda- Entry into FMCG

Patanjali started off manufacturing bulk ayurvedic medicines later branching its operations into

FMCG markets as well. Since, the FMCG market has low entry barriers, Patanjali soon

entrenched itself as a major consumer goods’ manufacturer. The recent trends clearly imply that

the company’s preference are shifting from medicines to consumer goods, perhaps because the

net revenues earned through FMCG are on par with ayurvedic medicines.

Patanjali Ayurveda – Current Market Insights

Patanjali as a brand currently has more than 350 products from Soap to Toothpaste and from
Oats to Health drinks. The 2014-2015 revenue of Patanjali Ayurveda crosses Rs. 2000 crore
figures. In January 2016, IIFL said “Patanjali Ayurveda Ltd has, in a short span of less than a
decagon, recorded a turnover higher than what several companies have managed to accomplish
over several decagons.

Patanjali Sales (2012-2015)

67
Proactive moves in Innovation

Patanjali Ayurveda is aggressively planning to enter into every consumer category. Currently

Patanjali Ghee is expected to be at INR 12 billion in the financial year 2016 and if it gains solid

distribution expertise, it could pose a serious threat to its competitors. An innovative R&D

facility equipped with latest technology, Patanjali has also launched a mobile app which helps

the consumer to locate retail channels and for online ordering of Patanjali products

Patanjali’s Supply Chain Management

68
The three phases of patanjali’s supply chain are product flow, information flow and cash flow.

Patanjali has recently completed a tie up with Future group to sell the products. They also sell

their products through their own channels opened in almost every district/city of India. Each

channel has to send their demand to central office at Hardiwar. Then as per the demand, various

products are gathered from various units of Patanjali. The items are delivered to channels

majorly through Patanjali transport.

Sales and Distribution – Patanjali

Patanjali provides sale of products online and can also be get hold of through post by sending the
money through demand draft

Patanjali herbal products are available at Post Offices across the country

Patanjali also has “Patanjali Chikatsalayas” and “Patanjali Arogya Kendra” in almost all the
cities of the country

To strengthen the distribution Patanjali is also implementing ERP which will help them in
managing the inventory.

69
 4.2. RESEARCH METHODOLOGY

Attaining accuracy in any research requires in depth study regarding the subject. As the prime
motive of the project if the project is to know the marketing strategies of Patanjali Ayurveda and
how it is affecting Indian economy.

RESEARCH DESIGN

TYPE OF RESEARCH:-Descriptive research

Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main
characteristic of this method is that the researcher has no control over the variables; he can only
report what has happened or what is happening.

DATA SOURCES

There are two types of data. Source of primary data for the present study is collected through
questionnaire and answered by consumers of Patanjali Ayurveda.

The secondary data is collected from journals, books and through Internet search.

PRIMARY DATA

The data that is collected first hand by someone specifically for the purpose of facilitating the
study is known as primary data. So in this research the data is collected from respondents
through questionnaire.

SECONDARY DATA

For the company information I had used secondary data like brochures, web site of the company
etc. The Method used by me is Survey Method as the research done is Descriptive Research.

70
RESEARCH INSTRUMENTS

Selected instrument for Data Collection for survey is Questionnaire.

SAMPLE UNIT

100 respondents of different age groups, different profession and of different gender.

SAMPLING DESIGN

Convenience sampling.

SAMPLING TOOLS

Pie charts, averages graphs, ratio analysis graphs.

71
 4.3. SCOPE OF THE STUDY

To conduct this research the target population was children, middle age men’s and women’s.

Targeted geographic area of Delhi/NCR, sample size of 100 people were taken.

100 people were given the questionnaire, and the questionnaire was the combination of both
open ended and closed ended.

Some dealer were also interviewed to know there prospective

Finally the collected data was analyzed and complied to arrive the conclusion and suggestion.

72
 4.4. LIMITATION OF THE STUDY

Every attempt will be taken to obtain error free and meaningfull result but as nothing in this
world is 100% perfect.

I believe that there will be still the chance for error on account of following limitations:-

Limited numbers of respondents

Time limitation for compelling the project.

The data obtained in some cases may be biased.

Difficulty in communicating within the city while conducting the survey.

The information obtained from the consumers based on questionnaire was assumed to be factual.

Since the survey is based on sampling method, it does not disclose the character of entire
customer.

Product unavailability for the consumers in the market is one of the biggest limitation for
Patanjali Ayurveda.

73
 5. DATA ANALYSIS AND INTERPRETATION

AGE:-

PATANJALI AYURVEDA

10%
20%
10 TO 18
19 TO 25
30%
26 TO 50
50 TO 75
40%

GENDER:-

PATANJALI AYURVED

35%
FEMALE
MALE
65%

74
Q1. DO YOU USE PATANJALI AYURVEDA PRODUCTS?

PATANJALI AYURVED
NO
20%

YES
80%

Maximum people in a particular surveyed area use patanjali product as they are cheaper to buy
when compared to some other product manufactured by the MNC companies.

So, about 80% of people use patanjali product in a middle class family.

And patanjali has that trust factor of naturally made product without any preservatives or harmful
chemicals.

75
Q2. WHICH CATEGORY PRODUCT OF PATANJALI AYURVEDA YOU USE?

PATANJALI AYURVED

25
45

MEDICINE
FOOD PRODUCT
45
SUPER FOOD
AYURVEDIC BODYCARE
AYURVEDIC PUBLICATION

55

30

Survey was conducted for random 100 people of that particular area.

25 people out of 100 people use medicine products of patanjali and 45 people use food products
manufactured by patanjali Ayurveda.

30 people out of 100 opted that they use super food products manufactured by patanjali
Ayurveda.

55 people use ayurvedic products naturally manufactured by patanjaliAyurveda.

45 people use ayurvedic publication products.

76
Q3. HOW FREQUENTLY YOU USE THE PATANJALI AYURVEDA PRODUCTS?

PATANJALI AYURVED
70

60

50

40

30

20

10

0
WEEKLY MONTHLY YEARLY

PATANJALI AYURVED

60% of people use patanjali product weekly

And 40% of people use patanjali product monthly.

As it depends upon the use of the product and which type of product it is.

77
Q4. WOULD YOU LIKE TO RECOMMEND PATANJALI AYURVEDA PRODUCTS
TO OTHER?

Series 1

75
80

70

60

50

35
40

25
30

20

10 10

0
DEFINITELY DEFINITELY NOT PROBABLY PROBABLY NOT

Series 1

What I concluded is maximum no. of people are satisfied using patanjali product so, 75 people
would definitely recommend the patanjali product to other while 10 people where little
dissatisfied of using patanjali product.

35 people ticked that they will probably recommend the product to others.

And 25 will probably not recommend the product to other as it is their own personal views
regarding the usage of the product.

And due to some of the limitation of the study we could not find the correct results regarding the
study.

78
Q5. WHY DO YOU CHOOSE PATANJALI AYURVEDA PRODUCTS?

Series 1

35
cheaper price

no negative effects 45

good quality cum maximum quantity 50

natural in nature 65

0 10 20 30 40 50 60 70

good quality cum

natural in nature no negative effects cheaper price
maximum quantity
Series 1 65 50 45 35

Series 1

As patanjali target middle class people and as well as lower class people and of middle age group
and children.

So most of the people purchase the patanjali products as it is cheaper and in the budget for
middle class people.

Health conscious people purchase patanjali product as it is natural in nature and have no negative
effects.

So, about 35 people out of 100 random people purchase patanjali because of its affordability at
cheaper price. 45 people purchase patanjali product because it has no negative effects.

50 people prefer patanjali product because of its good quality at maximum quantity.

About 65 people purchase patanjali because it is natural in nature, according to this study.

79
Q6. FROM WHERE DO YOU BUY IT?

PATANJALI AYURVED
[CATEGORY
NAME], [PERCENT
AGE]
[CATEGORY
NAME], [PERCENTA
GE]
[CATEGORY NAME]
[PERCENTAGE]

[CATEGORY
NAME], [PERCENTA
GE]

WHOLESALER RETAILER ONLINE SHOPPING PATANJALI STORES

45% of people prefer to purchase the patanjali products from the patanjali stores itself.

5% purchase from wholesaler.

20% from retailer.

30% of people order online patanjali products.

80
Q7. HAVE YOU SEEN ANY TANGIBLE HEALTH BENEFITS OF USING PATANJALI
AYURVEDA PRODUCTS?

PATANJALI AYURVED

35

65

YES NO

Customers using patanjali products really felt a health benefit of using patanjali Ayurveda as
patanjali products are naturally made.

35% of people dint felt any hard and fast benefits of using a patanjali product.

But 65% felt betterment after using patanjali product.

81
Q8. DO YOU FIND THEM AFFORDABLE?

PATANJALI AYURVED

DEFINITELY
DEFINITELY NOT
PROBABLY NOT

PROBABLY

Maximum no. of people find them probably affordable.

45 people out of 100 people find them affordable, while 25 people out of 100 people definitely
find them affordable and at maximum quantity with good quality and at cheaper rates.

2 people don’t find them affordable, whereas 35 people out of 100 people random surveyed
ticked probably not.

82
Q9. WOULD YOU LIKE TO SWITCH THE BRAND IN NEAR FUTURE?

PATANJALI AYURVED

YES NO

Maximum no. of people are satisfied using patanjali product and they are not going to switch the
brand in near future.

85 people out of 100 will not going to switch the brand in near future, while 15 people out of 100
people are going to switch the brand in near future due certain limitation of patanjali Ayurveda
on which patanjali had to work a lot.

83
Q10. WHICH BRAND WOULD YOU LIKE TO SWITCH IN NEAR FUTURE?

PATANJALI AYURVED
35
30
30
25 25
25

20

15
10 10
10

0
DABUR INDIA LTD. SHRI BAIDYANATH ZANDU HIMALYA DRUG THE EMAMI GROUP
PARMACEUTICAL COMPANY
WORKS

PATANJALI AYURVED

The next best competitor of patanjali Ayurveda is dabur India ltd., about 30 people want to
switch to dabur after patanjali, where 10 people will go with shri baidyanath.

And 25-25 people will go for zandu pharmaceutical works and Himalaya Drug Company after
patanjali

And 10 people out of 100 will go for the emani group.

84
Q11. ARE PATANJALI AYURVEDA PRODUCTS GENUINE?

Sales

25

75

YES NO

25 people out of 100 people said no that the patanjali products are not genuine,

Whereas 75 people said that the patanjali products are genuine and natural.

As patanjali products are naturally made without any preservatives and without any chemical
substances.

That’s why maximum no. of population consider patanjali products genuine.

85
Q12. IS THE HUGE RISE OF INDIGEIOUS PATANJALI PRODUCTS GOOD FOR
OUR COUNTRY?

PATANJALI AYURVED
120

100

80

60

40

20

0
YES NO

PATANJALI AYURVED

As patanjali products are manufactured in India.

With each increase in sale of patanjali product our imports will decrease which will definitely
effect our economic wealth.

And one of the most important thing this that they serve their customer a healthy product which
will definitely affect the health conditions of our country and our country will grow.

Patanjali follows the path of “MAKE IN INDIA”.

About 99 people out of 100 people believe that rise of PatanjaliAyurveda is good for our
country.

A reduction in imports will help improve the value of rupee against foreign currencies, and make
it a stronger currency. This can also help in paying less for other major imports which may well
increase: oil and coal.

86
Q13. IS IT GOOD TO BUY A PATANJALIAYURVEDA PRODUCTSFOR OUR INDIAN
ECONOMY?

PATANJALI AYURVED

NO

YSE

0 10 20 30 40 50 60 70 80 90 100

PATANJALI AYURVED

Most of the people said yes it is good to buy a patanjali product for our Indianeconomy as our
exports will decrease and our economic stability will be there in our economy.

90 people out of 100 said yes.

While 10 people out of 100 said no because they think that it is causing damage to our natural
environment, excessive use of natural environment can cause danger.

Employment will increase. (Also poverty elevation)

Less dependent on products from outside. (Less imports due to increased production)

87
Q14. OVERALL, HOW MUCH SATISFIED YOU ARE WITH USING PATANJALI
AYURVEDA PRODUCTS?

PATANJALI AYURVED
70

60

50

40

30

20

10

0
SATISFIED UNSATISFIED SOMEWHAT SATISFIED

PATANJALI AYURVED

Maximum no. of people are satisfied using patanjali product.

65 people are completely satisfied of using product.

10 people out of 100 are unsatisfied of using patanjali product.

And 30 people out of 100 people are somewhat satisfied.

Renewable sources cannot push this much production. So, only tradition energy sources will
require. Which will pollute air and water.

88
 6. FINDINGS

Quality as the most influencing factors in the purchase decision while price is also an important
for purchase decision.

Schemes always attract more and more consumers towards particular brand.
Simultaneously it gives idea about the factors which consumers look most in the product
before they make final decision

Price off and extra quantity is the two main offers/schemes which consumers have come
across at the time of purchase

People are ready to buy products of brand which suits their budget means more quantity
+ less cost + quality.

Extra quantity with less or same price, more satisfaction, quality and other factors
clout consumers to switch over to other brands.

People are more quality and price oriented.

Consumer remember that name of the product by the company name and also from the
past performance of that company

Demand is too much for Patanjali’s products in market, because of that shortage problem occurs
in market regularly.

89
 CONCLUSION

Patanjali Ayurveda has given a trouble to many marketers with its individualistic ways of
marketing.

Patanjali Ayurveda had rattled the whole FMCG’s sector and bought a mutiny in the industry in
a very spell era.

A point to note is that many people are buying due to its hedonic value attached to the products.

Hence, patanjali is attracting brand trustworthy customers and not price sensitive customers.

Will patanjali continue to grow at the same pace?

Or will it prove to be a water bubble, with this being a temporary phase for patanjali and strong
players eventually coming up with strategies to recapture the loss market share?

Only time will tell.

90
 SUGGESTIONS

Most of the patanjali consumers are facing problem like; products are not available in the market
regularly,

So they are suggested to increase their stock and make sure that the products are available in the
market regularly.

So patanjali Ayurveda should increase their productivity and make sure that there will be no
shortage of products in the market.

Renewable sources cannot push this much production. So, only tradition energy sources will
require.

Which will pollute air and water.

So make sure that increase in production may not harm the environment.

91
 QUESTIONNAIRE
A STUDY ON

“MARKETING STRATEGIES OF PATANJALI AYURVEDA”

(Please spend some time to fill this questionnaire)

NAME:

GENDER:

AGE:

OCCUPATION:

1. DO YOU USE PATANJALI AYURVEDA PRODUCTS?

Yes No

2. WHICH CATEGORY PRODUCTS OF PATANJALI AYURVEDA YOU USE?

MEDICINE

FOOD PRODUCT

SUPER FOODS

AYURVEDIC BODY CARE

AYURVEDIC PUBLICATION

3. HOW FREQUENTLY YOU USE THE PATANJALI AYURVEDA PRODUCTS?

Weekly

Monthly

Yearly

92
 4. WOULD YOU LIKE TO RECOMMEND PATANJALI AYURVEDA PRODUCTS TO
OTHER?

Definitely

Definitely not

Probably

Probably not

5. WHY DO YOU CHOOSE PATANJALI AYURVEDA PRODUCTS?

Natural in Nature

Good Quality cum Maximum Quantity

No Negative Effects

Cheaper Prices

6. FROM WHERE DO YOU BUY IT?

Online order Retailer

Patanjali stores Wholesaler

7. HAVE YOU SEEN ANY TANGIBLE HEALTH BENEFITS OF USING PATANJALI

AYURVEDA PRODUCTS?

Yes No

8. DO YOU FIND THEM AFFORDABLE?

Definitely
93
Definitely not

Probably

Probably not

9. WOULD YOU LIKE TO SWITCH BRAND IN NEAR FUTURE?

Yes No

10. WHICH BRAND WOULD YOU LIKE TO SWITCH?

Dabur India ltd.

Shri baidyanath

Zandu pharmaceutical works

The Himalaya drug company

The emami group

11. ARE PATANJALI AYURVEDA PRODUCTS GENUINE?

Yes No

12. IS THE HUGE RISE OF INDIGEIOUS PATANJALI AYURVEDA PRODUCTS

GOOD FOR OUR COUNTRY?

Yes No

13. IS IT GOOD TO BUY A PATANJALI AYURVEDA PRODUCTS FOR OUR INDIAN

ECONOMY?

Yes No

94
 14. OVERALL, HOW MUCH SATISFIED YOU ARE WITH PATANJALI AYURVEDA
PRODUCTS?

Satisfied

Unsatisfied

Somewhat satisfied

(THANKS FOR GIVING YOUR PRECIOUS TIME TO FILL THE QUESTIONNAIRE)

RESEARCH CONDUCTED BY RITIKA GUPTA

95
 BIBLIOGRAPHY

 http://www.patanjaliayurved.org/about.html
 http://en.m.wikipedia.org/wiki/marketing
 http://www.easy-marketing-strategies.com/definition-marketing-strategy.html
 http://www.stellarix.com/fusce/a-report-on-patanjali-ayurveda/
 http://patanjaliayurveda.com/en/company-profile/
 http://timesofindia.indiatimes.com/business/india-business/Ramdev-expands-empire-
beyond-yoga-to-FMCG-business-poised-to-touch-Rs-2000cr-this-
fiscal/articleshow/45861809.cms
 http://www.marketing91.com/marketing-mix-patanjali/
 http://www.youthkiawaaz.com/2016/07/patanjali-ayurveda-why-business-is-booming/
 http://www.business-standard.com/article/companies/competition-from-patanjali-
prompts-fmcgs-to-hit-back-116011800008_1.html
 http://download.nos.org/srsec319new/319EL20.pdf

96