Patanjali’s marketing mix: the monk’s new Ferrari

Marketing Management, Product & Brand Management, Entrepreneurship.

This case can be taught effectively to MBA/BBA students as part of Marketing Management, Product & Brand Management, Entrepreneurship.

The case talks about the marketing mix strategy of India’s fastest growing fast moving consumer goods (FMCGs) brand Patanjali, with a tremendous revenue growth rate of 100 per cent for the past five years, leaving major FMCG companies insomniac. Patanjali Ayurved Limited riding on Baba Ramdev’s brand equity positioned itself as an authentic Ayurved brand with ancient Indian roots. Patanjali’s product line ranges from healthcare, personal care, home care, to food and more. Patanjali’s products were priced 10-40 per cent lower than that of its competitors. Run by franchisees, Patanjali had a three-tier distribution system. These included Patanjali Chikitsalayas which were franchise dispensaries and clinics along with doctors, Patanjali Arogya Kendra which were health and wellness centres and Swadeshi Kendra, non-medicine outlets. The company has 15,000 exclusive outlets across India and plans to grow to 1,00,000 exclusive outlets by 2020. Patanjali amazed the world by achieving phenomenal success without spending much on advertising in its nascent stage. Recently Patanjali adopted the multinational corporation (MNC) style of advertising by hiring two top advertising agencies McCann and DDB Mudra to prepare the company for the next phase of growth. Patanjali diversified into various segments of the market, ranging from FMCG products, Ayurvedic medicines, Ayurvedic hospitals and a medical college. Patanjali plans to enter various categories of products including the beauty products segment to compete with major MNCs, the baby care segment to compete with Johnson & Johnson, and the sports segment to compete with Nike and Adidas. Patanjali as a brand has a strong positioning in the minds of consumers as a natural and Ayurvedic brand. Will Patanjali’s foray into so many diversified segments lead to a brand extension trap and confused positioning? Because Patanjali as a brand, solely rides on Baba Ramdev’s image, if Baba Ramdev ever finds himself at the centre of a controversy, will Patanjali’s brand equity take a hit? Will it affect the brand Patanjali? Even if Baba Ramdev does not get into any controversy, what will happen to the brand Patanjali when Baba Ramdev is no more? Who should be the next face of Patanjali? Can the brand survive without a face?

The case is designed to enable students to understand the following key learning points: The concept of marketing mix. Product mix, Promotion mix branding (especially “Person as a Brand”), customer-based brand equity (CBBE) model or brand resonance pyramid.

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CSS 8: Marketing.