Patanjali's Runaway Success - Lessons in Consumer

Goods MarketingPatanjali has emerged as a disruptive force in the Consumer Goods space. Within a short span of time, the company has rolled out over 350 products (including variants) across key Consumer Goods categories giving incumbents a run for their money.

Patanjali's Secret Sauce: The Marketing Mix

PRODUCT PRICE

PLACE PROMOTION

GroceryPersonal Care

Nutrition & SupplementsCattle Feed

Processed Food

Natural/Ayurvedic Value-based PricingHigher margins for

retailers, priced lower than competition by

up to 30%

Yoga camps to create awareness and

propagate Yoga for wellness, YouTube

Channel, Social Media Outreach, TVCs

Franchisee stores, Super & Hyper-markets, Online

Marketplace

No of TVCs

No of Times TVCs Played

17,676

15,985

15,573

15,495

13,495

13,178

Patanjali

Cadbury

Parle

Horlicks

Pond's

Fair & Lovely

0 5000 10000 15000 20000

Source: BARC. Date Range: 23rd Jan - 29th Jan, 2016

17,676

(In C

rore

s)

Revenue (in Cr.) Net Profit (in Cr.) Net Profit Margin (%)

0

2000

4000

6000

The Growth Story So Far

(in %

)

Revenue Contribution AcrossCategories

Revenue Contribution (in %) Growth Rate

FoodHealthcare

Toileteries

Dental ProductsHaircare

Cosmetics0

100

36.78%

19.13%

14.56% 10.93% 10.78% 7.38%

99.57%

30.58%53.77%

45.86% 51.35%40.70%

2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16

453 849 1,1912,006

5,000

56 91 186 317

12.36% 10.72%15.62% 15.80%

Sources:

http://www.livemint.com/Companies/hLEBBx17cFY5rPjTjmIP9O/The-Patanjali-story.html

http://www.hindustantimes.com/Images/popup/2015/11/gfx_ramdev_2.jpg

http://timesofindia.indiatimes.com/photo/49202265.cms

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Performance Against Competition - Sales & Growth Rate

5,431 4,681 4,430 3,982 2,334 2,031

FY 15 Sales (in Cr.)

(in %

)

Compounded Annual Growth Rate (in%)

64.5

38.9

22.7 2015.2 13.2 12.9

Patanjali

Godrej Consumer P&GDabur

ColgateEmami HUL

0

25

50

75

Dabur

Marico

Godrej Cons.

Colgate Palmolive

P&G

Emami