Please note! This essay has been submitted by a student.
The word “Cow” holds a lot of importance and has deep religious sentiments associated to it in our ndianculture. Often it’s considered a mother in Hindu religion. Each and every thing associated with cow isconsidered to be very useful for us. Even the urine of cow often referred to as “gaumutra” is very beneficial(scientifically proven).As given in the case study, now the business of Gaumutra is flourishing in the Indian market and Patanajalibeing the flag bearer of herbal or natural products is earning a lot from it. They cracked the code of mixingpeople’s belief and the medicinal properties of Gaumutra.
Value Based pricing – If the customer is getting exactly what he needs then he will be willing to pay a higherprice for it.
Scientifically proven beliefs – When beliefs are proven scientifically then the trust of the customers growimmensely in that product.
Mouth Publicity – “The product speaks for itself”, there is no better publicity than the publicity done by thecustomers themselves.
-Health Conscious Country – The people of our country are now more aware and knowledgeable of their healthand are increasingly inclining towards natural products.
There is a lack of publicity and knowledge about these multiple uses of Cow in ourcountry. Along with that those who know about these uses do not trust the procedure and often land up sayingthat the product must be a mixed one. It is said that around 30 remedies can be prepared at home with cow urinebut how many of us really use it ? What is required is to get that trust of the customer that the product deliveredto them is pure and has multiple benefits and to remove all the misconceptions related to the word “COW” inthis country through effective marketing.
Patanjali ayurveda is an Indian FMCG (Fast moving consumer goods) company. Baba Ramdev established thePatanjali Ayurved Limited in 2006 along with Acharya Balkrishna with the objective of establishing scienceof Ayurveda in accordance and coordination with the latest technology. Headquartered at Fatehgarh, Uttrakhandit has its manufacturing units in Haridwar and has a registered office in Delhi. According to CLSA and HSBC,Patanjali is the fastest growing FMCG company in India. Patanjali declared its annual turnover of the year 2016-17 to be estimated ₹10,216 crore (US$1.5 billion). Balkrishna owns 98.6% of Patanjali Ayurved, and as ofMarch 2018, has a net worth of US$6.1 billion.In the guidance of YogGuru Baba Ramdev, Patanjali’s aim is to restart the swadeshi movement by introducingIndian Ayurveda to this modern world and doing all this by providing good quality products at cheaper rates.
The basic rule to excel in marketing is to effectively execute the 4P’s of marketing i.e Product, Price, Place,Promotion. Patanjali’s success story revolves around these P’s only which had been executed perfectly in themarket.
Product- Patanjali started dealing in all the existing FMCG products and started giving a herbal touch to eachone of them. Along with that it also produced medicines for day to day diseases which are effective and does nothave any side effects.
Price- It adopted the value based pricing method and by doing the alignment of cost, customers and competitorsobtained the price having the perfect blend of customer satisfaction and company’s profits.
Place- It started with the franchisee stores concept and later expanded it to super/hyper markets and onlinemarketplace. From the very initial stages it made a very strong distribution channels and sell the products alongwith their medical centres and health and wellness centres.
Promotion- With the trust of a person like Baba Ramdev, the carrier of Yoga and ayurveda in this modernworld, by their side the consumers were quite faithful and somewhere down the line they were waiting forgenuine “ayurvedic products” in the market.
Patanjali conducted many yoga shivirs to spread the awarenessabout ayurveda, along with that they also did their promotions on youtube channels and social media.Along with all these factors Patanjali created a very loyal customer base through its product which results in the“Word of mouth publicity” for the company. This factor plays a major role in the prolonged success of anycompany.
Before the introduction of Patanajli the FMCG market was flooded with products of ITC, HUL, Dabur, P&Getc. To enter into the market which had such big names with deep pockets was in itself the biggest challenge forthe company.Patanjali targeted 2 things:- Price sensitivity- (Indian customers are price sensitive. Understanding this, Patanjali launched very low-pricedproducts.)- Indians’ preference for herbal productsPatanjali used 2 tricks to grow:- Heavy advertisements- Tapping new markets- some low-income people still use dantan/churan instead of toothpaste. Patanjaliintroduced toothpastes of similar tastes to attract this untapped segment.