Abstract

This case is about Patanjali Ayurved, one of the most successful FMCG companies that recently started its operations in India. The company was giving stiff competition to many well established FMCG companies in India like HUL. Right from the time it started its operations, Patanjali priced its products cheaper than its competitors by sourcing raw materials directly from farmers. Patanjali banked upon the growing demand for ayurvedic and natural products among urban consumers who perceived them to be safe and free of harmful chemicals. Another important factor behind the success of Patanjali Ayurved was the association of the Patanjali brand with the popular yoga guru, Baba Ramdev (Ramdev). The company spent very limited amount on the promotion of its products when compared with other FMCG companies. Patanjali wanted to quickly expand its business across the country and reach more customers through initiatives like establishing exclusive retail outlets, consolidating its online presence, and entering into tie-ups with retail chains. However, some analysts were skeptical about the company’s growth prospects.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• How new companies challenge established players with a differentiated business model
• The importance of celebrity endorsers in building a brand
• How can successful companies continue their growth momentum in the face of stiff competition in the market
• The importance of marketing communications in building a brand.

Keywords

Patanjali, Herbal, Ayurvedic, Baba Ramdev, Medicinal Products, Hindustan Unilever Limited, Soaps, Shampoos, Swadeshi, Indian, Patanjali Yogpeeth, BJP, RSS, Ayush, Indulekha