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PATANJALI AYURVEDA – HOW THEY DID IT?

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|| Commercializing Business In Non-Commercial Way ||

Now these days there is only one discussion that how Baba Ramdev Touched the Turnover of Rs. 2000

Cr By his FMCG business just in few years???

However he himself was not carrying any filed experience, but he did what Emami & other well

established FMCG Companies Could not do in Decades.

More Astonishing factors is that he did it without support of any formal marketing activities

/advertisement what other companies do by spending huge amount on TV and other media for

branding.

When Baba Ramdev launched his business, most of us and boardrooms were not serious about his

glorious future, but now these days’ boardrooms / brand pandits are buesy to solve the mystery of

success secrets of Patanjali Ayurveda Brands.

However, Patanjali Ayurveda was having different challenges at its beginnings.Few of them are

following……..

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1. New entry in heavily competitive & penetrated FMCG market.

2. Establishing an effecting channel to serve the consumer across country.

3. Huge Branding Expenditures Management.

4. Competition with well-established and performing MNC / Indian Brands & market Players.

5. Time Constraint.

The most interesting thing is time constraint. What Patanjali Ayurveda did, most of established brands

take time of 2-3 decades. But Paternally Ayurveda spreads it’s wings just span of few years.

It is well understood that task was not so easy. Understanding the success dynamics behind story is

really not so easy.

However a keen Observation can come across few results.

Let’s Start “Analysing Invisible Factors For Visible Results” Of Patanjali Ayurveda success.

De facto,Baba Ramdev Patanjali Ayurveda is great Success example of “Commercializing

Business In Non-Commercial Way”.

Into-to, Patanjali Ayurveda achieved all these huge turnover of Rs 2000 Cr Just In few years without

any Huge Commercial marketing activities what is carried out by all professional FMCG Companies on

day to day basis. i.e. ATL / BTL activities etc etc.

However, every one is saying that this success is achieved in less than 10 years’ time period, and

analysis may be done in following points.

Pre-Launch Latent Preparation: Success root of Patanjali Ayurveda goes back decades when

Baba Ramdev started his campaign of Yoga / Bharat Swabhiman / Swadeshi Abhiyan.During his

campaign, a latent message was seeded deeply in subconscious mindover the years by making

aware people for Healthy life with swadeshi products. Hence a Psychological latent need was

created well years before in consumers mind for such products which can provide him and

lateron conversion of this latent cues into active triggers to accept brands hence movement

of consumers to purchase the same. Lets study the concept i following points..

(A) Physical attribute satisfaction of a products.

(B) Emotional satisfaction and feeling proud in some way i.e. we are using our own product / we are

using natural product / we are contributing for our country /culture by non purchasing MNC’s

Products. Factor Bis known as “advance Psychological blocking of Consumer mind to inhibit

purchase of existing brand”.

In this way Baba Ramdev not only prepared a huge future consumer class by brainwashing but

successfully turned these class of consumer later on on launching of his brands for initial demand

creation which most of company fails. All these took more than decades time.

Selection of Channel Partners / Distribution Network: As normally, all FMCG companies goes

for traditional distribution channel in which products reaches to final consumer via different partners

i.e. Dealer / Distributor -> Retailer -> consumers.

In this case baba Ramdev chosen a different way i.e franchise model means opening franchise in

some selected area where competition was not available because of non availability of other

competitive brands as offering for consumers.Notable Point is that all the initial Franchise were none

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but majority was their own followers who invested not for business but their major focus was earning

becoz all these initial Franchise owner was not able to make heavy investment for taking distributor of

established company.

Again Here support received from his own followers which were tuned by investing decades times by

Baba Ramdev by making direct interaction during his yoga shivir/campaign and other campaign in silent

& Indirect way.

However most Probably,if Patanjaly Ayurveda entered in market by traditional dealer distributor network

management,he might could not get that much success due to different conditioned channel

resistance/Barrios available in traditional channel which inhibit / or slow down speed of success rate of

any New product.

Even today,Patanjaly Ayurveda’s products are not well welcomed by traditional

shops. Reasons???????……. as I told above…..Conditioned Channel resistance by channel

partner’s i.e. by distributors/dealers/shopkeepers. Few examples of such Channel resistance is.. Credit

period, Expiry & damage claims, product replacement, services etc. etc. etc., what all other professional

companies provide to fight with competition.

Remember !!!!! even in future if Patanjali ayurveda enters into

formal distribution channels system,growth rate will not be that

much high and Patanjali Ayurveda Must have to face Tremendous

problems. It will be a potential challenge, threat and limiting factor

for growth of Patanjaly Ayurveda after saturation of Franchise Model

and patanjali ayurveda may not beat competition with Professional

companies.

Communication Method to Consumer to Convince them

to act for purchase of products: In A traditional way

Professional companies establishes communication with consumers

via indirect way or say by secondary medium i.e. TV, News Paper.

While Baba Ramdev established direct interaction with consumers during their campaign / shivir.Plz

remember, direct communications is far more effective to put it convincing impressions in consumers

mind becoz a emotional feeling can be transferred and felt by communicator and consumer both

resulting higher degree / chances of consumer

tending to act for communicated

message.

This way of communication was so

effective that all his followers tends to turn a

future potential consumers and same is

reason that when Products were launched

a huge number of potential consumers

were available in market to turn as real

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buyer.

Pricing Policies : Patanjali Ayurveda’s products are available on 20-40% cheaper prices in

comparisons of MNC products. Higher pricing of mnc are due to their expanses for hiring Brand

ambassadors, heavy market promotions expanses etc. Here in case of Patanjali Ayurveda,Baba

Ramdev himself played a well-defined role of Brand Ambassador for Umbrella Brands………..This

also tells us that a well-known film/ sport star does not guarantee of success but a better effective

message which can explains invisible & secondary benefits of products may also be a success

reason. Here meaning of secondary Benefits of Products are Invisible emotional factors e.g.

feeling for contribution for making country,self growth with the growth of country, Holistic approach

etc. All these invisible factors are responsible to develop a strong bonding between product &

consumers. In nutshell pricing policy is very success to realize the customer genuinely “Value

For Money” concept.

Discovering Initial Consumers: Whenever any new product is launched /placed in market, it is

always tested by specific class of consumer who tries it first. Such Consumers are knows as

“INNOVATORS” who are tries new products, taste it and rate it about its quality and satisfying

capability. The total percentage of such customers are very low – 2% only of all Potential available

customers in market. Later on these innovators recommend the product & makes a repeat demand

and generate other consumers for mass acceptance of product in society.

If we analyze, we will find that in case of Patanjali Ayurveda, The innovator / initial class of consumers

were none but their own follower. It is assumed that approximately 70 Millions followers are there for

Baba Ramdev. It is a very huge number of customers in comparison of normal professional brands

launching, which is enough sufficient to make any product successful. Assuming 2000 Cr Rs. Turn Over

/ annum, each innovator quota fall for only approx. Rs. 300 Purchase per annum of Patanjali Ayurveda

Products which is quiet high in comparison of traditional launching innovators. In this way Pillar of

Success for Patanjali Ayurveda is None but follower of Baba Ramdev or say “Pr-Prepared

Consumers” over periods of decades.

AND ABOVE ALL…………..

Self Actualization & Contributing Feeling: And above all, Baba ramdev was successful to

develop a self-actualization and contributing feeling to building Country. This feeling was well

developed in advance by “Swadeshi Movement campaigns” across the decades.

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Till Date major contributing factors for success of Patanjali Ayurveda are followers of Baba Ramdev as

their potential consumers.Patanjaly Ayurveda is still not able to crack the traditional channels/shops.

However if Patajanli Ayurveda is coming for traditional channel,they have to face several challenges

like credit facility,replacement,expiry etc what Patanjali is perhaps not providing till now on their

Franchise stores.

Further it will also be an interesting fact that if Patanjali Ayurveda products are placed on Traditional

shops, what will be degree of shopkeeper’s/consumers interest to sale/purchase their products on

priority where 100 of other brands are available and that will be a true performance of Patanjali Brands

in open competitive environment.

It Looks that Patanjali Ayurveda is more interested in other untapped non-traditional types of FMCG

channels like franchise and khadi Bhandar etc etc etc where degree of open competition is very less

???? What factors are inhibiting Patanjali Ayurveda to place their products on general shops which

counts approx 9 million in India.

They day will be known as best success day of Baba Ramdev Swadeshi Abhiyan when his products will

be accepted on these general shops across India and this is real challenge for Patanjaly Ayurveda

because most important success yardstick for FMCG Industry products are placement and

acceptance of products on available shops across Universe / country rather than Business Turnover.

Or it also may be possible that success of Patanjali Ayurveda Continues via this channel than Baba

Ramdev Is definitely going to define new Distribution System for FMCG Industry and others industry

Players will start follow this new channel dynamics.

As Conclusion, we can say that to understand the success story of Patanjali Ayurveda, we have to

analyse the Invisible factors / Forces working for success of any campaign. All these Invisible

factors are not easily realized / observed by marketers, hence success storied are not unveiled hence

not fruitful when copied by others.

The Invisible Factors / Business dynamics are least studied /understood by marketers, but put

deepest impact on consumer’s psychology to decide their course of action for accepting /rejecting a

brand.

Come Out From Struggle Phase Of Business!

Lead The Market With Leaders Of Strategy!

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INTRO || About Us » || Consultancy Verticals » || Industries » || Political Consulting || Innovations »

FMCG || Consumer Durables || Led Lighting || Pharmacy & Cosmetics || Political Consulting

Entry To Indian Market || e-Commerce & Digital Marketing

Facebook || LinkedIn || Twitter || YouTube

Share Success - Like Innovations On Social Media

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