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Patanjali Case Study: Yoga Guru To Business Tycoon

Baba Ramdev is one of the most respected yoga gurus in the world associated with Yoga and Ayurveda and by Patanjali he is now counted among the most successful entrepreneurs of India. Swami Ramdev has done the work of turning the lifestyle of Indians into a healthy one by practicing yoga and Ayurveda again.

Early Life Of Great Yoga Guru, Baba Ramdev

On December 26, 1965, a child named Ram Krishna Yadav was born in the house of Ramnivas Yadav and Gulabon Yadav in Hazaribagh Ali Syed Pur village, District Mahendragarh, Haryana. 

This son of a farming couple was only two-and-a-half years old, when a terrible disease like paralysis took him under his control. Ramakrishna became fine while practicing yoga continuously. Since then, he has been continuously practicing yoga and has been a student of yoga. The sacred spirit of public welfare made Ramakrishna into Baba Ramdev.

Let’s look at this amazing journey of Baba Ramdev’s success.

Relation of Baba Ramdev and Yoga

In 1995, Baba Ramdev, together with Acharya Balakrishna and Acharya Karmaveer, founded the Divya Yoga Mandir Trust, in this institution, everyone was given free education of yoga.

Aastha Channel started showing Ramdev on a morning show in 2003 and Yoga of Baba Ramdev was successful in attracting a large crowd. 

Establishment of Patanjali Yogpeeth

In 2006, Baba Ramdev along with his partner Acharya Balakrishna founded the Patanjali Yogpeeth.

He was keen to establish his science of Ayurveda and achieve his goals through the merger of ancient knowledge and latest technology and he successfully achieved it. Patanjali started with Ayurvedic medicines but today Patanjali’s products have expanded into the market in a wide variety of categories like beauty, food, lifestyle, medicine.

The success of Patanjali would not have been possible without Ramdev and Balakrishna, because together they have converted their ancient knowledge into good products.One of the main objectives of Patanjali is to make truly 100% Indian products for our country India.

Baba Ramdev came up with the indigenous factor to encourage the people of India to buy locally made products. This is the reason why Patanjali manufactured a wide variety of different products and introduced them in the market at a low price.

How a yoga guru created a ₹2,500 crore FMCG business ?  

Ramdev focused on yoga while Balkrishna developed Ayurveda medicines. Gradually, PAL started manufacturing food items and cosmetics, and today, has its headquarters and manufacturing unit at the 100-acre Patanjali Food and Herbal Park at Haridwar, Uttarakhand, employing 6,500 people.

Balkrishna holds 92 percent of the company, with the rest in the hands of a Scotland-based NRI couple Sarwan and Sunita Poddar.

It has distribution agreements with Reliance and the Future Group and a product development arrangement with the Defence Research Development Organisation (DRDO) for food and health supplements.  

How did Ramdev and PAL climb such heady heights? 

The first big break that came Ramdev’s way was probably Sanskar TV’s decision in 2002 to broadcast his yoga sessions. Aastha TV followed the next year.

Ramdev’s telegenic appearance and expertise as a trainer made yoga on TV a runaway success. Soon, millions began to squeeze the programme into their busy morning schedules.

The mix of spiritualism and traditional Indian therapy proved a resounding success. When “Baba” launched PAL, it already had a credible brand ambassador — Ramdev himself. The one lakh free yoga classes conducted by the Yogpeeth convinced people that he was not in it for the money.

Nearly one-sixth of the country’s population were said to have attended yoga sessions conducted by Ramdev and had faith in their teacher’s healing power.

PAL also benefited from a huge, ready made advertisement campaign—word-of-mouth publicity at camps by yoga students and trainers.

The products themselves have an aura of purity about them for the Indian consumer as they are claimed to be “100 percent natural.”     

Like any other FMCG company, it uses the mix of demographic and psychographic segmentation strategies to make its offerings appropriate/ relevant to the particular set of customer groups.

  Products are priced at least 20-30% lower than that of its competing rivals.

Low advertising and promotion expenses are helping the company by keeping its prices low and make it affordable without compromising on quality.  

The business segments in which company deals in are Healthcare & Ayurvedic products, packaged foods, and cosmetics & home care.

The different business segments of Patanjali are Stars in the BCG market due to the high acceptability of its products in the market.  

Patanjali is emerging as a fastest growing FMCG company in India by distributing its products through e-commerce sites, supermarkets chains like future group’s Big Bazar, Reliance Retail.Over 15000 Patanjali outlets are operating across India which gives the brand strong distribution channel.The brand sells its products through medical centres Patanjali Arogya Kendras and Patanjali Chikitsallayas.

In the FMCG market, it competes with players such as HUL, Dabur,Godrej,Reckitt Benckiser, P & G and many others.

Continuous launch of new products have paved the Patanjali has recently launched a number of new products. The company has ventured into the dairy sector and now offers cow milk, flavored milk, curd, buttermilk, and cheese. In an official press statement, the brand commented that it produced 4 lakh liters of milk on the first day of the launch. Additionally, Patanjali now also offers frozen vegetables like peas, sweet corn, and mixed vegetables. This puts Patanjali in direct competition with McCain. Patanjali also plans to launch its own packaged drinking water, named as Divya Jal. Furthermore, the company plans to offer urea free cattle feed and solar production.

Patanjali Ayurveda has also submitted a research paper to a medical journal claiming ashwagandha herb stops entry of coronavirus into human body.

Conclusion   

Patanjali’s success can be analysed with the aid of a Blue Ocean Strategy.

The major reason for Patanjali’s success is its unique business model of a single umbrella brand, a wide spread of categories, exclusive store network and a close association of a personality. This is of course, backed by low prices, the appeal of Ayurvedic products hyping on ‘purity’ and an inclination to procure Indian brands. Patanjali has understood that price can not be always a sustainable combat policy and thus has started working on its distribution network, logistics setup and retail supremacy.

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