How Patanjali Ayurved Achieve Success
Fast-moving consumer goods (FMCG) company Patanjali Ayurved, also known as Patanjali, is situated in Haridwar, India. Baba Ramdev and Acharya Balkrishna launched it in 2006. While its corporate headquarters and manufacturing facilities are in the Haridwar industrial district, the company’s registered office is in Delhi. The business produces food products, Personal care, ayurvedic medicines, and cosmetics. Balkrishan who holds 94% share is the CEO of the company Patanjali manufactures natural products and also has factories in Nepal where it operates under the name “Nepal Gramudhyog,”. It imports the majority of the herbs used in India from Nepal’s Himalayas.
History of Patanjali
Ramdev, a popular yoga guru in Haridwar, was demonstrating several asanas for a healthy life in 1995. With Acharya Balkrishna, he later established the Divya Pharmacy. This pharmacy was established under the direction of Swami Shankar Dev- Ram Dev’s guru. Soon, the medicine gained popularity, and Ramdev and Bal Krishna were willing to expand their business. But the fact that Divya Pharmacy was registered as a trust made it challenging. Meanwhile, with his yoga asanas, Baba Ramdev was becoming more and more popular, not just in India but also among NRIs.
He began receiving funding from NRIs after they became aware of his efforts. For instance, Sunita Poddar, Sarwan, and neighbours all provided money to his assistance. Days, in the beginning, were really challenging because they lacked the funds to register Divya Pharmacy. For the first three years, the pharmacy gives away free medication. Due to a shortage of funds, they do all of the grinding and mixing themselves, as well as purchasing the raw materials.
It is noteworthy for a brand to differ from its competitors. In a short time, Patanjali created its own identity. The Patanjali advertising credo is that “swadeshi” (cheap) items spread the word about the product. By providing them with high-quality products, such as Swadeshi and Ayurvedic, he won the trust of his clients. Patanjali Ayurveda is now a private company. They manufacture a variety of healthcare items, including hair care, dental care, toiletries, and food, and many of their products are at R&D stage.
The Founders
Balkrishna and Baba Ramdev established Divya Yoga Mandir Trust in Haridwar in 1995, and they together established Patanjali Ayurved, a fast-moving consumer goods (FMCG) business that manufactures and trades FMCG, herbal, cosmetics, and ayurvedic items, in 2006. Baba Ramdev, also known as Swami Ramdev, is an Indian yoga instructor and businessman. He is best known for introducing yoga and ayurveda to India. Swami Ramdev was born as Ram Kisan Yadav in 1965.
Ramdev is the face of Patanjali Ayurved and promotes its goods to his followers through his yoga camps and television shows, despite the fact that he has no ownership stake in the company. Balkrishna is the company’s managing director and owns 94% of it. He is Baba Ramdev’s close friend and aide. 98.6% of Patanjali Ayurved is owned by Balkrishna, which as of March 2018 had assets totaling Rs. 43,932 crores ($6.1 billion). According to the Forbes list of India’s 100 Richest People, Acharya Balkrishna is the third youngest billionaire in India, with a net worth of US$2.3 billion (May 2021).
Marketing Strategyelements in the Patanjali Ayurveda Success Story:
Popularity of Ramdev
Ramdev Baba’s enormous popularity is the first thing that helped Patanjali succeed. Sanskar and Aastha TV networks helped him become popular for his yoga teachings. The success of Ramdev Baba and his brand was recognised by Ramdev Baba himself. “He has only a 10% part in the making of Patanjali, the rest of the credit belongs to the media,” he had previously admitted.
Although Balakrishna holds the majority of the company’s stock, Ramdev is its spokesperson. By selecting Baba Ramdev to promote Patanjali goods, the company was able to demonstrate how these goods help you stay healthy and fit. In Baba Ramdev’s yoga class, Patanjali also popularised its products.
Product Quality
Although Patanjali products are inexpensive, quality is never compromised. The success of Patanjali was also attributed to its distinctive blend of high quality and reasonable prices.
Reasonable prices
The second important element in Patanjali’s success is its reasonable prices. To draw customers, almost all Patanjali products are offered at fair prices. Even the manufacturers acknowledged having a slim profit margin. However, it should be noted that Patanjali’s expenses are lower because the company buys its raw materials directly from farmers, cutting away the middlemen. Thus, it can generate significant revenues.
Robust Distribution Network
One must have noticed that Patanjali items were first exclusively available from a few certain stores. However, this traditional distribution network had a serious flaw. 2011 saw the manufacturers migrate to retail distribution as they realised their products were not reaching a bigger audience. This assisted the business in expanding its market, which additionally assisted in increasing revenue.
In addition, it entered into partnerships with well-known retailers like Reliance Retail, Future Group, and others, as well as a collaboration deal with Amazon for the online distribution of its goods.
Experienced Employees
The employees are another aspect that sets Patanjali apart from other firms. Patanjali seeks professionals with degrees in science and ayurveda, unlike businesses that employ MBA professionals. This guarantees that the staff has knowledge of ayurvedic remedies.
Swadeshi’s slogan
Swadeshi was Patanjali’s catchphrase to draw in Indian customers. Ramdev frequently uses the line “Indians must buy Indian products” to promote Patanjali’s products. This tactic worked well for the business, which drew a sizable number of consumers.
Variety of Products
A variety of goods are available from Patanjali. The majority of household goods are produced by Patanjali. Due to its wide range of products, Patanjali has been able to generate a sizable amount of cash in this way. Even if one Patanjali product failed, the overall business remained intact because of the popularity of other products.
Final Words
Projecting itself as a Swadeshi company, Patanjali has always attracted attention for its ayurvedic products. Every move of the company has been skillfully planned out to enhance the brand. Being the fastest-growing firm in the Indian FMCG industry, the company is still standing strong despite having seen a few setbacks. If Patanjali could maintain its competitive edge, it is anticipated that it would succeed in the long run. The biggest significant advantage of the company is that it has Baba Ramdev as its brand ambassador.
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