The Power of Yoga in Business


Read this headline:

Baba Ramdev expands empire beyond yoga to FMCG, business poised to touch Rs 2,000cr this year”.

It certainly gives a goosebump !!Isn’t it..A business of 2000 crore in no time. That’s  why  even big Food majors have felt the pinch. This will be tough to digest for the rival FMCG companies like Emami, Marico etc.

Is this  the power of Yoga which everyone initially doubted when the business model of launching into FMCG space was out in the market.

Was I doubting? But what was I doubting?

The power of Yoga?

The power of Distribution network ?

The power of Quality Products?

The power of ever expanding franchisee network?

The Marketing Power of Patanjali ?

The strong supporter base of Ramdev ?

Iam not sure what I was doubting?

And my doubts were redundant!!

It’s just the POWER OF BRAND “PATANJALI” supported by Baba Ramdev image.

Baba Ramdev has completely struck a perfect balance between his yoga and a successful business model in FMCG. He has trained us on some Asanas which do certainly have a profound effect on our general well being. Now he has moved beyond the yoga to strike a business ranging from soaps, creams, toothpastes, mustard oil, juices to cornflakes.Not surprising, cornflakes is one of the top selling product.

What is this business all about? Is it a product launch game or a brand building game.

So many products? Ever expanding line of products further strengthened by deeper product lines.

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.
Currently, Patanjali is present in almost all categories of personal care and food products –

1. Soaps, shampoos,

2 Dental care, balms, skin creams,

3,Biscuits, ghee, juices, honey, atta, mustard oil, masala, sugar and much more.

What is Working for Patanjali Brands:

1. Low Priced High Quality  Products: Patanjali Products are priced much lower than its competitors.
This is despite the fact that most of Patanjali’s products are priced lower than its competitors. What gives the company an edge is its very low expenses on advertisements. In comparison, leading FMCG companies spend about 20-30% of their sales on advertisements.

Low priced products doesn’t mean the products are of less quality, instead the quality stands at par with the category leaders .That’s the right saying. Without quality you can’t stand in the market.

Source: Times of India

2. Rising awareness of Ayurveda: The people are recognizing the power of Ayurvedic ingredients and their role in their day to day lives. People have started adopting Yoga in their lives and the products supported on the same platform gets off the shelf very quickly.

People have realized the benefits of age old Ayurveda and know what they are putting inside their bodies.

3. Expanding distribution network: We might not see many outlets in India with the Patanjali products, but certain outlets are specific to Patanjali range of products in some small towns and cities.

It now operates in 17000 Patanjali Swadeshi Kendra and Patanjali Ayurvedic Chikitsalaya and are looking forward to reach one lakh locations in India .The network has now adopted  the modern trade route ( Reliance, Big Bazaar etc)as well which will further increase the product reach and the acceptance.

Also the company’s distributors are now allowed to sell to other kirana stores in general trade and now the products can also be seen in general stores too.

4. Launch and Launch Approach: They have launched a range of products in the categories like Soaps, shampoos, juices, biscuits etc. This normally defies the conventional product launch approach. The Market exists. Let’s launch the products to see the market feedback. It might have been a hit and trial initially.The power of brand PATANJALI seems enough to drive up the product success. The people recall only “Baba Ramdev “ or Patanjali and its enough to purchase a product in any category and that’s what have propelled the business across many categories.

5. Media Spend on Promotion: After building a distribution network to sustain the business growth, the network has started spending on promotions through media .This is building awareness amongst the masses and driving up the sales .Very soon the Patanjali Ayurved will spend a big buck on various media channels driven through top agencies in India.

No doubt why the brand is getting discussed in the corporate boardrooms of the top multinationals


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