The business of Yoga

Let’s Recap the OLD POST:

  • Patanjali is poised to touch 3000 crore in 2016.
  • Baba Ramdev has completely struck a perfect balance between his yoga and a successful business model in FMCG.
  • Patanjali Ayurved clocked Rs 450 crore in 2012 which has touched around 1200 crore by 2014 a jump which is worth noticeable to be discussed in the boardrooms.
  • Patanjali is present in almost all categories of personal care and food products – Soaps, shampoos, Dental care, balms, skin creams, Biscuits, ghee, juices, honey, Atta, mustard oil, masala, sugar and much more.

The business is poised to touch 20,000 Crore by 2020 (Ref:IIFL)


A man in Saffron Dhoti resembling RSS attire has stirred the top executives sitting in ACs in their board room of multinationals:

  • What is he doing?
  • What different is he doing?
  • Is he listening to Consumers?
  • Is strategy to attack the MNCs?
  • Is he interested in launching the products only?
  • What’s the game plan?



The undercurrent of Consumer shift has been felt by the major FMCG companies like Britannia, HUL. HUL has started focusing and reviving its old Ayurveda Brand AYUSH .

This is similar to the time when MANKIND presence in Pharma was felt in the INDIAN PHARMA INDUSTRY.

Multinationals think of the product categories, research them and launch it. They  research for 2 years and launch one product and here is a company founded in 2006 launched  398 products in 9 years ( an average of 45 products per year) to serve  1.2 billion consumers

There was no surprise when I saw my father using Patanjali TOOTHPASTE (DANTKRANTI) .

Things worthwhile to note:

  1. You do not need to have big spend to succeed: Till 2015 mid there was no TV spent –the Medium which creates the brand awareness .End of 2015 saw the advertising spend go up with 3-4 categories getting advertised in national TVs at the prime time.

According to BARC, Patanjali became one of the top three most advertised brands on television late last month.


  1. The products are for everyone: Initially everyone thought the consumer base is of common man which has moved beyond common man to SEC A also on the ground of Quality and efficacy.


  1. Quick to the Market: The Go to Market Model is very quick. Within no time the range of categories are there in the market. Hover around the category and Patanjali has made a mark in all major categories( Honey, Toothpaste, Biscuits, Noodles, Chyawanprash, Facewash, Hair Oils)


  1. MODERN TRADE PRESENCE: Patanjali range of products are available in BIG Bazaar, Reliance fresh Hypercity, Spencers, Star Bazaar etc giving it an access to a new breed of consumers in major cities. Stores have started giving exclusive standalone shelves to entire range of Patanjali Products.


  1. Patanjali MARTS : Sooner the country will have a chain of Patanjali mega marts which have been launched in Nagpur last month, and soon opening in Delhi, Bengaluru and Kolkata soon. This seems a great step in building Patanjali brand and showcase the entire range of products the kind of space which will be difficult to get in other modern trades.This also indicates the plan of Patanjali to foray into a number of categories  (Patanjali has 398 products as of now)


  1. Umbrella Branding: What is getting sold is Patanjali Brand. Across the categories, its only the brand Patanjali that is taking the mind space( Patanjali Ghee, Patanjali Honey, Patanjali Toothpaste, Patnjali Facewash, Patanjali Biscuits, Patanjali Noodles, Patanjali Chyawanprash)


  1. Acquiring new customers is very important: The churn rate at present seems very high. We do not know how many customers are getting lost to the competition but at the same time it becomes very important to add on the new customers which balances the seismic shift. Brands unable to acquire new customers will fade away from the market.


  1. Lets be digital : Hey!!! Gen Y Patanjali products are available online too.


What is driving the undercurrent?

  1. Are consumers moving towards Ayurveda –Probably Yes, of course Consumers are evolving very fast-Probably on a daily basis.
  2. Are consumers aware that the prices of the advertised products are higher because a lot of media promotion goes behind?
  3. Perfect combination of affordability and Quality -A deadly combination is driving the sales in the categories.
  4. BABA Ramdev Equity: When Baba proclaims he has covered 20 lakh kilometers in Padyatras and touching approx. 20 crore people, what else is remaining to build the equity. This is what is driving the undercurrent slowly.

Recent changes:

Advertising spend has gone up .We see a slew of advertising spots in the TV these days ranging from the Hema Malini and Vijender as the star Brand Ambassador for different product categories. Patanjali has been the top advertiser in recent months.


  1. You do not need to be in the financial capital/BIG city to succeed. Patanjali operates from Haridwar( Uttarakhand)
  1. The strong supporter base of Ramdev and YOGA followers have added a different breed of consumer focusing on the Ayurvedic range of products which are cheaper ,offers the health proposition. MNCs must be taking a note of it.
  1. Dabur felt the pinch when Patanjali Honey came with a price difference of 50 rupees in HONEY segment followed by the TV advertising. Dabur had to respond with the freebies offering to offset the direct competition.
  1. QUICK IN ADAPTATION: Patanjali learnt that the new breed of consumer shift will happen in modern trades and hence the distribution can’t be denied.

BABA RAMDEV is a NEW BUSINESS TYCOON .A yogi Turned Marketer has certainly made a mark. The political support obviously has an added advantage to it.

MANAGEMENT GUYS –Recall the P of PEST!!!

PATANJALI Upcoming products: NO wonder the Patanjali one day will come up with an Ayurvedic Sanitary Napkin.

WATCH it P & G !!!!!

By: Kumud Kandpal



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