10 reasons behind enormous success of Baba Ramdev's Patanjali brand

Patanjali ayurved ltd formed in 2006, is one of the fastest growing FMCG(fast moving consumer goods) company of India. In 2015 its total sales grew to 5000 crores. It has over 4000 distributers,10000 stores and 100 megamarts across the country. It offers wide variety of products from oil/shampoo to rice and medicines. It is said to be entering in product market of jeans and other clothing too considering the demand of the time. During an interview Ramdev said ''Patanjali aims to set up 10 mega units, 50 semi mega units and many small scale units to compete with multinationals with the idea of swadeshikaran (indianism)''.It is an FMCG empire that was not in the competition of the big players even a couple of years back. Today, Baba Ramdev’s Patanjali is sweeping away everything in its path. From local stores to Amazon, Patanjali products are everywhere.

No other FMCG has grown so fast in India ,we present you some facts about how Patanjali became a giant in Indian marketplace. Here are the reasons behind overnight success of baba ramdev's Patanjali brand.

1. Strong community building or follower base - This brand has drawn hope from ancient wisdom. From last decade baba Ramdev has put a lot of effort in popularizing the concept of YOGA and AYURVEDA. In this time he has successfully built an extremely loyal community of followers. 'Important point to understand is that for a successful business an strong community is like solid foundation on which you can build a business that would really last for ages.( all the aspiring entrepreneurs take note).
2. Low pricing of Patanjali products - Instead of selling to retail trade through distributors, Patanjali group have their own branded outlets across the country. thus they can save a reasonable margin in distribution which translates into 20 to 25 % cost advantage and gives company to leverage to price its products 15-30 % cheaper than other brans in competition.
3. Feel of nature and wellness - Patanjali is wisely using ancient brand value of natural ayurvedic herbs in selling their products, branding them as herbal and claiming them to be better than rival's products. Patanjali is first brand which was turning idea of using natural products into a cult. Consumers in India like contemporary things, that spring from their cultural identity. The concept of ayush and Ayurveda has this appeal. Besides the consumer awareness about impact of harmful products, in what they eat or drink, has been growing rapidly( imagine how fast water purifier industry has grown in last decade). At the same time this brand offers products with no harmful products(as they claim during their marketing and advertisement).
4. Single brand strategy - Nestle has 100's of brands in India, Unilever also has many. but in Patanjali every product goes with single brand name-> PATANJALI. In multi brand strategy each brand requires its own marketing and promotional budget, and teams. But cutting it down to one brand makes the process easier. It also reduces your marketing spend, and this reduction can also be utilized to drop the maximum price \s. Besides Single brand strategy also makes consumer recognition of product easier. For example people will simply go to market and ask for soap of Patanjali instead of asking and choosing among various soaps of unilever company.
5. Tagline of swadeshi - They suggests that buying patanjali will contribute to the Indian economy as they are homegrown products,according to them money that we spend in these products stays in India and eventually comes back to us only. Idea of swadeshi which Baba Ramdev would promote from time to time in media and every time during his yoga campaign.
6. Promotion and marketing - They are spending a lot on aggressive marketing of the brand also. In tv advertisements you can see that every second or third ad is related to Patanjali brand. baba ramdev is himself seen marketing a lot of his products. As Adi Godrej has said ''Patanjali is riding on Ramdev's image,not products''.
7. Free consultation with medicines - This is also very important, in the market patanjali has three types of retail stores-Arogya Kendra, chikitsalya, and swadeshi Kendra . These stores are given the brand value of Patanjali and in return these stores provide , free consultation by certified medical practitioners . The fact that a trustworthy consultaion is free in an area as important as healthcare provides strong leverage to company itself.
8. Replicating of successful products - Top selling products are picked up from market and similar products are developed based on herbal formulation under Patanjali brand. Mostly they are replica's of successful products of multinational companies. take the example of atta noodles of patanjali which is replica of nestle's Maggie and divya chyawanprash which is replica of DABUR's chyawanprash.
9. Product variety - Patanjali offers products in wide range of FMCG group, which provides consumers a lot of options.
10. And last but not least don't ignore the God man culture of India, people will do whatever they are told to do by some Baba. Imagine some baba saying them to buy some oil/ghee/toothpaste. How tough is that ? 

 Patanjali brand is one of the fastest growing giant in the field of FMCG. It has proved that today business is not only about delivering good products but clever marketing strategies are also equally effective.
Anyway with Baba Ramdev, at this point, anything seems possible.


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