PRODUCT & BRAND MANAGEMENT CONCLUSION

CASE STUDY: Patanjali Ayurved Limited

By, Prof. Vinay Sharma
Professor
Department of Management Studies
Indian Institute of Technology Roorkee

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 DISCLAIMER

THE INFORMATION REGARDING PRODUCTS, COMPANIES, BRANDS MENTIONED IN THE LECTURES IS FOR
EDUCTIONAL PURPOSES ONLY. THE FACULTY DO NOT ENDORSE OR PROMOTE ANY
PRODUCTS/COMPANIES/BRANDS DISCUSSED HEREIN IN ANY MANNER. VIEWS EXPRESSED HEREIN
ABOUT THE PRODUCTS/COMPANIES/BRANDS ARE THE PERCEPTION OF INSTRUCTOR AND ARE IN NO
WAY INTENTED TO PROMOTE OR DAMAGE THE REPUTION OF MENTIONED PRODUCTS/COMPANIES/
BRANDS OR TO HURT ANYONES FEELINGS AND EMOTIONS. NO COMPENSATION WAS RECEIVED FROM
ANY OF ITS PRODUCERS/ MANUFACTURERS/ COMPANIES FOR THE PRODUCTION OF THIS VIDEO.

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 Timeline of Patanjali’s journey
1932 KripaluBagh Aashram in Hardwar established
1995 Divya Yog Mandir Trust (Bramhkalp chikitsalaya) established
1997 Divya Pharmacy (Small Scale manuf. unit of Ayurveda medicine) established
Idea conception to open Food Park in the year 2004 (while Yog-Guru Swami
2004
Ramdevji Maharaj was addressing a Yoga camp)
2006 Patanjali Ayurved Ltd. established
2010 Patanjali Food & Herbal Park, Hardwar became operational in January
Patanjali leaped to 15th position (2017) from 173 position (2016) in Brand Trust
2017
Report (BTR)
Patanjali plans to setup Mega Food Parks across different states in India (U.P.,
2018
Haryana, M.P., Maharashtra, Assam, Punjab, and Rajasthan)
Source: Sengar, A., Sharma, V., & Agrawal, R. (2017). Market development through integrating value chains – a case of Patanjali Food and Herbal Park. Emerald Emerging Markets Case Studies, 7(4), 1–22.

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 Patanjali Product Portfolio

Source: https://www.patanjaliayurved.net/

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Stages of Brand
Development
Brand Resonance Pyramid Goal at Each Stage

4. Relationship Resonance Intense, active loyalty

Positive, accessible
3. Response Judgements Feelings reactions

Point of parity &

2. Meaning Performance Imagery difference

Deep, broad brand

1. Identity Salience awareness
Source: Keller, K. L., & Swaminathan, V. (2020). Strategic brand management: Building, measuring, and managing brand equity

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 Patanjali Customer based Brand Equity
• Brand Salience: Patanjali’s products as natural with Ayurvedic properties,
& the products are generally used by people who are health conscious
and relate it to their healthy lifestyle. Along with this, the trust and faith
of people in Yoga and Swami Ramdevji Maharaj made the path easier for
“Patanjali” to seize the opportunity with the slogan “Prakriti ka
Ashirwad.”
• Brand Identity: PAL followed three philosophies when it introduced any
product in the market. These included Swadeshi products (manufacture
in India), Ayurvedic products (Natural & Herbal) (no chemicals,
preservatives, etc.) and products with value proposition around wellness
and nutrition brand in the market through which it was able to create a
perception about the brand in the mind of consumers.
Source: https://www.thehindubusinessline.com/catalyst/the-secret-behind-patanjalis-rise-and-rise/article9300591.ece

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 Patanjali Customer based Brand Equity
• Brand Imagery: The brand attributes, such as creating quality image, the
products being sourced naturally, being purely herbal, and the portrayal of the
brand as totally ayurvedic in nature along with suitable pricing strategies
created a clearcut point of parity in the mindset of customers comparing the
competing multinational brand offerings.
• Brand Performance: PAL were able to keep their promise as they followed the
Ayurveda principle, which did not believe in profiting from the patient care;
employee salaries were modest, and the company administrative costs were
kept as low as 2.5 per cent as compared to most other competitor companies
that had administrative costs of 10 per cent. This helped PAL to provide
product at reasonably low price compared to the competitors and the product
efficiency created a positive word of mouth.
Source: S Puri, A Ajeya, J. S.Chugh (2016) Patanjali Takes On Industry Giants, Harvard Business Publishing.

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• Brand Response: PAL were able to build an emotional connect
with the audience with their product positioning and Swadeshi
campaigns. Swami Ramdevji Maharaj, in his yoga sessions and
discourses, narrated various aspects such as the importance of
products made in India, effects of chemicals on the health,
potential benefits to farmers, etc. and his campaigns to promote
Natural and Herbal brought in a brand feeling among the
consumers. Furthermore, customers who were expecting the
quality and price offered by them and the early adopters of
Patanjali grew in number through strong word-of-mouth publicity
for their products (brand judgments).
Source: https://knowledge.wharton.upenn.edu/article/yoga-guru-mastering-consumer-goods-market-india/
https://www.thedollarbusiness.com/magazine/how-a-concoction-of-patriotism-and-brand-can-work/45986

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 • Brand Resonance: Patanjali has grown exponentially
with in a short span of time which is the result of
around 20 years of rigorous hard work around Yoga and
Ayurveda by the founders. In those 20 years, they have
built an extremely loyal community. Furthermore, with
their digital presence felt across various digital media
have more than 100,000 followers on twitter and more
than 5.7 million likes on Facebook page. PAL embraced
real-time digital marketing strategies.
Source: https://m.economictimes.com/industry/cons-products/fmcg/baba-ramdevs-patanjali-teams-up-with-facebook-google-for-online-advertisement-push/articleshow/59889332.cms

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 Patanjali Sources of Brand Equity
• Brand Awareness: Brand awareness consists of brand recognition and
brand recall performance:
▪ Brand recognition: In case of Patanjali, the customer is able to
recognize the brand, displayed in a store, based on actual
experience or consumption of its products.
▪ Brand recall: The positioning of Patanjali, as a natural product
remains in the customers mindset. And the slogan “Prakriti ka
Ashirwad.” also has increased this perception in their mindset.
▪ Brand Image: Consumers perceive Patanjali’s products as natural
with Ayurvedic properties, & the products are generally used by
people who are health conscious and relate it to their healthy
lifestyle.
Source: Marissa Sanwald (2018)Competing with Patanjali: can you bend like the baba? IVEY Publishing

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 Patanjali

Source: https://www.patanjaliayurved.net/

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 Brand Value Chain

Fig. 3 Brand Value Chain (Adapted from Keller, K. L., & Swaminathan, V. (2020). Strategic brand management: Building, measuring, and managing brand equity)

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 Marketing Program Investment
Program Quality Multiplier:
• Distinctiveness: Most of the PAL’s marketing campaigns are different
from its competitors because of the main focus of the organization is to
develop the consumption of Ayurvedic products (Natural & Herbal) and
products with value proposition around wellness and nutrition.
• Relevance: Its Relevant for all.
• Clarity: Product promotions and advertising messages are executed in a
very simple and straightforward manner that people warmly welcome.
• Consistency: In all its advertisements, PAL consistently highlights its
herbal (non-chemical) content and promotion of swadeshi products.
Source: https://www.thehindubusinessline.com/catalyst/the-secret-behind-patanjalis-rise-and-rise/article9300591.ece

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 Customer Mind-set
• A customer's mindset cannot be built overnight, even with the
extensive effort on single marketing program investment, it
still requires time.
• Patanjali brand is image driven and built on the basis of 20
years of rigorous hard work around Yoga and Ayurveda by
Swami Ramdevji. [1]
• In order to increase the brand awareness, Patanjali used
the pre-existing fame and popularity of Swami Ramdevji. [2]

Source: [1] S. Puri, A Ajeya, J. S.Chugh (2016) Patanjali takes on Industry giants, Harvard Business Publishing
[2] https://www.thehindubusinessline.com/catalyst/the-secret-behind-patanjalis-rise-and-rise/article9300591.ece

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 Customer Mind-set
• Patanjali products are promoted as herbal, organic and
Ayurveda based products. (Associations)
• Consumers buying the product feel that they are moving towards
a natural product which is good for the health and for the environment.
The brand also is of Indian origin which elates the
customers. (Attachments)
• Patanjali targets the rural market at first and uses the word-of-
mouth publicity to good effect. The image of Baba Ramdev is used
to reinforce the association of organic and healthy product. (Activity)

Source: S. Bhattacharya and A. Agnihotri (2016) Patanjali Ayurveda Limited: Disruption or Innovation? Harvard Business Publishing

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 Marketplace Conditions Multiplier
• Rather than going with wholesaler-distribution and retailer model, PAL has
adopted a franchisee business model to sell its products. Patanjali
Chikitsalayas, the health and wellness centers like Patanjali Arogya Kendras,
non-medicine outlets like Swadeshi Kendras, along with well-known retail
chains, general retail stores, and a huge number of exclusive retail outlets
thousands in number across India constitute PAL’s distribution channels.
• PAL trains and certifies medical practitioners nominated by these stores. In
return, the stores provide free consultation service to its customers by the
certified medical practitioners. This increases the likelihood of building large-
scale early adopters. As the stores stocks both the pharmaceutical and FMCG
products, cross-selling happens, and the early adopters bring in additional
footfalls through strong word-of-mouth publicity. (Channel Support)
Source: https://www.thehindubusinessline.com/catalyst/the-secret-behind-patanjalis-rise-and-rise/article9300591.ece

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 Marketplace Conditions Multiplier
• PAL created new markets and segments of consumer. These consumers
were interested in organic, herbal and ayurvedic products. For example,
the growth of herbal segment of shampoo doubled to around 194
percent in early 2016.
• Many of the competitors also started focusing on herbal and organic
variants. (Competitive Reactions).
• PAL after initially spending less on advertisements especially on the mass
media advertising like Television and News papers spent ₹3 billion to cater
to growing market needs in 2015. They started working with reputed
creative agencies like DDB Mudra and McCann while also roping in celebrities
like wrestler Sushil Kumar and Hema Malini. (Customer size and profile).

Source: [1] S. Puri, A Ajeya, J. S.Chugh (2016) Patanjali takes on Industry giants, Harvard Business Publishing

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 Market Performance
• The company sourced raw materials directly from
farmers, which ensured better profitability and lower
costs for consumers. [1]
• Market share: Because of its rational pricing, Patanjali
achieved a good market share operating in various
categories, primarily honey, ghee, and ayurvedic
medicines. [1] Dant Kanti has achieved 11 % market
share (2018, Statista).
Source: [1] S. Puri, A Ajeya, J. S.Chugh (2016) Patanjali takes on Industry giants, Harvard Business Publishing
[2] https://www.thehindubusinessline.com/catalyst/the-secret-behind-patanjalis-rise-and-rise/article9300591.ece

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 Market Performance
• Currently (2021), PAL is making 20 percent
operating profit which is higher than the industry
average. (Profitability).
• In 2016, Patanjali had entered the ranks of the
top 10 advertisers in India. By 2017, it was the
third largest ad spender in the country. Eighty
percent of those ads were played on Indian news
channels. [1]
Source: [1] T. Harit, V. Kuriyan and G. Shah (2019) Patanjali Ayurved: Valuation of an Unusual FMCG Company in India , Harvard Business Publishing

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 Investor Sentiment Multiplier
• The Indian FMCG sector being the fourth largest sector in the
Indian economy has grown considerably over the past decade.
Major FMCG companies were able to dictate the prices
through local sourcing with a backward integration with key
commodity suppliers or doing backward integration with the
local suppliers. (Market dynamics). [1]
• The Fast-moving consumer goods (FMCG) sector is India’s
fourth-largest sector with household and personal care
accounting for 50% of FMCG sales in India. (Growth
Potential). [2]
Source: Marissa Sanwald (2018)Competing with Patanjali: can you bend like the baba? IVEY Publishing
[2] https://www.ibef.org/industry/fmcg.aspx

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Revenue of Patanjali Ayurveda across India from FY 2010 to FY 2020 (in billion Indian rupees)

120

100
100
90.88
85.42
Value in billion Indian rupees

80

60
50

40

25

20
12
8.5
3.18 4.52 3.49
1.63
0
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016* FY 2017* FY 2018 FY 2019 FY 2020

Note(s): India; FY 2010 to FY 2020; India's financial years begins in April and ends in March. For example, FY 2017 started in April 2016 and ended in March 2017.
Further information regarding this statistic can be found on page 8.
Source(s): ASSOCHAM; The Economic Times; ID 823142

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Frequency for purchase of Patanjali products among Indians as of June 2019
60%

50.08%
50%

40%
Share of respondents

30% 27.34%

20% 17.29%

10%
5.29%

0%
A few times per month Never Weekly Daily

Note(s): India; June 2019; 5194 respondents

Further information regarding this statistic can be found on page 8.
Source(s): Swagbucks; ID 1012170

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Preference of cosmetic brands among consumers in India as of March 2019
Share of respondents

0% 5% 10% 15% 20% 25% 30%

Others 26.07%

Lakme 24.85%

L'Oreal 12.59%

Patanjali Ayurved 12.22%

Lotus 5.21%

Maybelline 5.1%

Biotique 4.39%

VLCC 2.62%

Revlon 2.03%

Shahnaz Hussain 2.03%

Colorbar 1.74%

Elle 18 1.15%

Note(s): India; March 9, 2019; 5220 respondents

Further information regarding this statistic can be found on page 8.
Source(s): Swagbucks; ID 996669

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Source: https://brandirectory.com/download-report/brand-finance-india-100-2021-preview.pdf

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 Bibliography
• Sengar, A., Sharma, V., & Agrawal, R. (2017). Market development through integrating value chains – a case of Patanjali
Food and Herbal Park. Emerald Emerging Markets Case Studies, 7(4), 1–22.
• Keller, K. L., & Swaminathan, V. (2020). Strategic brand management: Building, measuring, and managing brand equity.
• S Puri, A Ajeya, J. S.Chugh (2016) Patanjali Takes On Industry Giants, Harvard Business Publishing.
• Marissa Sanwald (2018)Competing with Patanjali: can you bend like the baba? IVEY Publishing
• S. Bhattacharya and A. Agnihotri (2016) Patanjali Ayurveda Limited: Disruption or Innovation? Harvard Business
Publishing
• T. Harit, V. Kuriyan and G. Shah (2019) Patanjali Ayurved: Valuation of an Unusual FMCG Company in India , Harvard
Business Publishing
• https://www.thehindubusinessline.com/catalyst/the-secret-behind-patanjalis-rise-and-rise/article9300591.ece
• https://www.patanjaliayurved.net/
• https://knowledge.wharton.upenn.edu/article/yoga-guru-mastering-consumer-goods-market-india/
• https://www.thedollarbusiness.com/magazine/how-a-concoction-of-patriotism-and-brand-can-work/45986
• https://m.economictimes.com/industry/cons-products/fmcg/baba-ramdevs-patanjali-teams-up-with-facebook-google-
for-online-advertisement-push/articleshow/59889332.cms
• https://www.ibef.org/industry/fmcg.aspx
• Statista

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THANK YOU

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