During the 1990s in India, the global economy entered a new era of consumerism, as international companies and MNCs flooded the country. As a result, the needs of Indians began to shift gradually but decisively. Although the new millennium brought with it a plethora of international goods, people began to demand more locally-made products, leading to the widespread adoption of the swadeshi effect, which companies began to leverage.
Amidst this backdrop emerged Patanjali, an Indian company with a long-term vision that extended beyond immediate profit. Founded by Indian yogi Baba Ramdev and Acharya Balkrishna in 2006, Patanjali created a health and wellness brand that focused on meeting the current needs of the people. The company heavily relied on the use of ancient Indian Ayurvedic ingredients to promote mind and body detoxification.
What Sets Patanjali Apart From Its Competitors?
Patanjali leverages its brand platform to raise awareness and market its products, but the question remains: what explains the company’s fiercely loyal following? The answer lies in the popularity of medicine brands used for treatment in India. As a developing country, India strives to provide affordable medications to the socially disadvantaged and impoverished majority. However, the elitist privatization of healthcare and the exorbitant costs of life-saving drugs make it impossible for those living below the poverty line to access proper medical care.
In the absence of affordable conventional treatments, alternative medicines gain traction. Affordability becomes a crucial factor that drives demand for alternative medicine. If alternative medicine is marketed as inexpensive, readily available, and somewhat trustworthy, people are more likely to opt for it. This is where Patanjali’s advantage lies: it promotes very affordable healthcare models and ensures that its products are accessible to all. Ayurvedic medicines are familiar to most Indians, regardless of their literacy levels. Although studies on the efficacy of Ayurveda are inconclusive, the familiarity associated with this alternative treatment is enough to boost sales.
Role Of Baba Ramdev As The Brand Ambassador
Baba Ramdev has played a significant role in creating a positive and popular image for the Patanjali brand, particularly among socially and financially disadvantaged individuals. His association with the brand has increased its visibility, as he frequently promotes the Patanjali name during his numerous yoga camps and shows. Additionally, consumer psychology suggests that the more familiar people are with the individuals behind a company, the more likely they are to remain loyal to that brand. Therefore, Ramdev’s direct communication and interaction with consumers have been major contributors to Patanjali’s successful image.
A Separate Strategy for Youngsters
Patanjali rejected the notion that Ayurveda is solely for the elderly and successfully made it appealing to younger generations. To connect with millennials and Gen Z, Patanjali created natural and organic products with unique twists, such as gooseberry candy, choco flakes, and noodles. Additionally, they targeted young adults by producing high-quality cosmetics and body care products that are free of harmful chemicals.
Growth and Expansion
Patanjali, India’s fastest-growing FMCG company, has not limited its expansion to the domestic market and has entered neighboring countries like Nepal. In Nepal, Patanjali operates a manufacturing facility and has established a strong commercial relationship, which has facilitated its rapid expansion in the country. The company has also expanded its reach by offering its products through e-commerce.
As Baba Ramdev’s popularity grows in India and Nepal, he is likely to attempt to capture the market in other countries. With a remarkable turnover of Rs. 30,000 crores, Patanjali is well-positioned to finance its expansion and growth. Thousands of businesses in India now stock Patanjali products, and many of them exclusively sell Patanjali, which poses a threat to local retailers.
Philanthropy and Social Impact Marketing
The company’s marketing campaigns have consistently emphasized that its profits go towards charity, rather than any individual or entity. This has helped the company in creating an image that makes people believe in the authenticity of the brand. Usage of Patanjali products is often considered to be an act of the common good.
This was Patanjali’s story of growth owing to India’s deeply rooted belief in Ayurveda. To explore more such stories of unique marketing tactics and extraordinary brands and personalities, keep an eye on World Brand Affairs.