Patanjali and AOL

Patanjali Ayurveda Limited was incorporated in 2006 at New Delhi. It is one of the biggest fast moving consumer products manufacturing company in India following principles of good manufacturing principles. Patanjali had a revenue of 5000crore in 2015-16 financial year. Baba Ramdev who is the Co-founder of patanjali plans to double their revenue by the end of this financial and they are sure that they can achieve it. There slogan is “Prakriti ka ashirwad”.

4Ps of Patanjali:

Product:

Patanjali produce world class, healthy, herb mineral heal care, dental care, food, cosmetics, toiletries, hair care and other products. Patanjali present full product range of food, cosmetics, medicines, books, CD s, DVD s & Audio cassettes at best price. The company manufactures 444 products including 45 types of cosmetic products and 30 types of food products. According to Patanjali, all the products manufactured by Patanjali are made from Ayurveda and natural components. Patanjali products are cheaper than alternatives in the market due to lesser production and marketing costs.Different categories of patanjali products are:

Nutrition and Supplements Grocery Medicine Home Care Personal Care Books and Media Health Care Gift Pack mukta

Pricing:

In this century both retailers and consumers are hooked to huge discounts on products across categories, but Patanjali has braved the ‘zero discount’ strategy, and is stil giving its competitors sleepless nights. Consumers are not complaining either. Patanjali Ayurved, which is growing at a pace that is unnerving domestic and Multinational players in the fast-moving consumer goods (FMCG) segment alike, has barred its sellers from offering a single paisa of discount on its products. In other words, retailers have to sell every Patanjali product at the maximum retail price (MRP) printed on the packaging. The product is being priced 30% lower than other

competitor products. They are able to reduce their cost because of their low marketing expenses. They spend very low in advertising and brand ambassadors.

Promotion:

The company today is well enough to compete with Emami Ltd., Marico Industries Ltd., Pepsi Co. and other such global FMCG giants.The most important factor for the high profits is minimum marketing expenses. There is little, very little marketing and never had they put out creative advertisements or huge billboards. Their brand ambassador echoes brand’s authenticity and relevance and was enough to draw people to adopt the products. Ramdev is quite popular with the Yoga preaching and has good number of followers from specific sections of the society.

Baba Ramdev’s Patanjali sets aside more than Rs 300 crore for advertising and promotion in india.For advertising on TV, Ramdev initially picked seven of Patanjali’s 30 products. While wrestler and Olympic medal winner Sushil Kumar is the brand ambassador for ghee, Patanjali biscuits are endorsed by Bollywood star and member of Parliament Hema Malini.

Unlike other brands customers have a contact with the company thorugh the advertisement,because of the presence of baba ramdev and leads to a stronger customer bond and loyalty.

Place:

Tier 1,tier 2 and tier 3 cities and rural area with online and offline presence.They also have exclusive showrooms just for patanjalai products.

Distribution model for Patnjalai:

Multiple distribution channels.a. Company-Owned stores which exclusively sell his range of products.b. Normal FMCG distribution channelc. Modern Retail: Big Bazaar etc…

d.Online presence

Patanjali shunned the conventional distribution network, preferring to rely on its own channels such as Chikitsalayas (franchise dispensaries) and Arogya Kendras (health centres which sell Ayurvedic remedies). In October 2015, Patanjali tied up with the Future Group to sell its products at Big Bazaar and other Future Group stores in 245 cities and towns.  Most of  big retailers like Reliance Retail, Big Bazaar, Hyper City and Star Bazaar are now stocking Ramdev’s FMCG products. Patanaji products are also available online at patanjaliayurved.net , e-commerce sites like BigBasket, ZopNow, Amazon, Flipkart etc.

Art of Living

Founded in 1981 by Gurudev Sri Sri Ravi Shankar, The Art of Living is an educational and humanitarian and an NGO movement engaged in stress-management and service initiatives.

4Ps of AOL:

Products:

Different products by art of living are:

Books,Creams,Toothpaste,shampoos, body care lotions, scrubs, cleansing milk, soaps, ayurvedic energizers, ayurvedic medicines, juices, herbal tea, anti-diabetic tablets, balms and syrups

Pricing:

Prices are almost similar to patanjali, but comparing to other competitive brands its cheaper.

Promotions:

Place:

SSA products are primarily sold through 600 franchise stores and so-called ‘Divine Shops’, set up at Sri Sri Ravi Shankar’s gatherings. They are also available online at bigbasket.com, amazon.com and SSA’s own dedicated site www.sattvastore.com.SSA plans to open 2,500 stores

across India by 2017 with an extended range of modern, daily consumption products with the essence of ancient wellness

Distribution model of AOL products:

SSA first started selling products in 2003, but its expansion comes at a time when Patanjali Ayurved Ltd’s started expanding. SSA is slowly building a portfolio similar to that of Patanjali. SSA products are primarily sold through 600 franchise stores and so-called ‘Divine Shops’, set up at Sri Sri Ravi Shankar’s gatherings. They are also available online at bigbasket.com, amazon.com and SSA’s own dedicated site www.sattvastore.com.SSA plans to open 2,500 stores across India by 2017 with an extended range of modern, daily consumption products with the essence of ancient wellness. Tie-ups with retail chains across the country (which has been a major growth driver for Patanjali) are also in the works.While existing digital presence will aid growth, what’s needed is expansion of physical distribution as well for building a robust consumer products company