Patanjali identified the gap betweenherbal and FMCG market product and created value for customer by filling thisgap. They selected best product from industry leaders for example Best-sellingnoodles Maggi in India (PTI, 2017), Cadbury Bournvita etc. and created its ownsimilar products and promoted it with health benefits along with substantially veryless prices.

Aloe Vera sold at one tenth less of their competing company prices(Malhotra, 2015). This price strategy helps them to target more people to buytheir products. Better quality in competitive price helps Patanjali to grow byword by mouth promotion.

In Packaging, they have mentioned clearly that allproducts are 100% pure and natural which will increase trust of customer.Patanjali used the health benefits ofDabur products and combined with Ramdev strong media presence to reach tomasses. One of the advantage Patanjali got that Dabur in 1997 diversified intomainstream market to increase its revenue as in past herbal product market wasnot appealing. With increase in the market demand Patanjali changed theirselling style. Initially in 1990 they started with Door to Door delivery serviceas they didn’t have more resources and fund to support other medium oftransportation. In 2007, they started with franchise model shops with in housedoctors who help customers in consultations and also give credibility. In year 2015,they collaborated with future groups such as big bazaar to sell product insupermarket which helps them to penetrate more into market.

┬áPESTEL Analysis:Political: During 2014 election Ramdev stronglysupported Narendra Modi as Prime Minister of India and asked his supporters to campaignfor the same. He even participated in many rallies with Modi (Jaffrelot, 2015).Government of India supported yoga by establishing Ministry of Ayurveda, Yogaand Naturopathy, Unani, Siddha and Homoeopathy (AYUSH). PM Modi suggested Yogain his address to the UN and soon after that UN declared 21 June asInternational day of Yoga (PTI, 2014). There is evidence to suggest that BJP’selectoral success and Patanjali’s growth are closely linked and that, underModi, the Govt. of India is treating Patanjali favourably. “Since Modi came topower, Ramdev’s company has received more than an estimated $46 million indiscounts for land acquisitions in states controlled by the BJP” (Bhatia andLasseter, 2017).


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