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Patanjali identified the gap between
herbal and FMCG market product and created value for customer by filling this
gap. They selected best product from industry leaders for example Best-selling
noodles Maggi in India (PTI, 2017), Cadbury Bournvita etc. and created its own
similar products and promoted it with health benefits along with substantially very
less 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 buy
their products. Better quality in competitive price helps Patanjali to grow by
word by mouth promotion. In Packaging, they have mentioned clearly that all
products are 100% pure and natural which will increase trust of customer.

Patanjali used the health benefits of
Dabur products and combined with Ramdev strong media presence to reach to
masses. One of the advantage Patanjali got that Dabur in 1997 diversified into
mainstream market to increase its revenue as in past herbal product market was
not appealing. With increase in the market demand Patanjali changed their
selling style. Initially in 1990 they started with Door to Door delivery service
as they didn’t have more resources and fund to support other medium of
transportation. In 2007, they started with franchise model shops with in house
doctors who help customers in consultations and also give credibility. In year 2015,
they collaborated with future groups such as big bazaar to sell product in
supermarket which helps them to penetrate more into market.

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PESTEL Analysis:

Political:

During 2014 election Ramdev strongly
supported Narendra Modi as Prime Minister of India and asked his supporters to campaign
for the same. He even participated in many rallies with Modi (Jaffrelot, 2015).

Government of India supported yoga by establishing Ministry of Ayurveda, Yoga
and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH). PM Modi suggested Yoga
in his address to the UN and soon after that UN declared 21 June as
International day of Yoga (PTI, 2014). There is evidence to suggest that BJP’s
electoral success and Patanjali’s growth are closely linked and that, under
Modi, the Govt. of India is treating Patanjali favourably. “Since Modi came to
power, Ramdev’s company has received more than an estimated $46 million in
discounts for land acquisitions in states controlled by the BJP” (Bhatia and
Lasseter, 2017).

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