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Patanjali Ayurved Limited is an Indian Fast Moving Consumer Goods (FMCG) company. Patanjali manufactures mineral and herbal products. It was established in 2006 by Ramdev along with Acharya Balkrishna. The two sans any business education or background, have become the greatest threat to the biggest FMCG players in India. The main objective of Patanjali is to establish the science of Ayurveda, in accordance with the latest technology. Moreover, Patanjali made a Rs. 2000 crores business so far.
If you plan on setting up a business then Ramdev’s ideas and principles could be taken into consideration. Listed below are the startup lessons one could learn from Baba Ramdev.
The Unique Selling Proposition (USP)
It is significant for a brand to be different than its competitors and Patanjali emerged as the brand of the nation. Patanjali’s mantra of low prices, natural and ‘swadeshi’ positioning are widely considered to be the main reasons behind its success. So, how did Baba Ramdev do it? The man has wisely associated Patanjali with Ayurveda, which attracted the audience. The unique selling proposition of the brand lies in its positioning. He not only gained the trust of customers by showing them that he uses the products himself but is involved in all the company’s processes to secure the quality and quantity of the products. Patanjali Ayurved appeals widely by projecting an image of natural and pure products. Alongside, its brand ambassador Baba Ramdev, is also a public figure and health promoter whose mass appeal has risen over the past few years.
Patanjali Ayurved is doing amazing by selling a wide range of products which are priced lower than the competitors in nearly all categories. That is definitely a major factor in its rapid rise. When you are an entrant you really need to pay attention to pricing. Patanjali positions itself as better and cheaper than other products in the market, in terms of quality. To stay ahead of the competition you should keep in mind the price, quality and quantity produced.
Be Your Own Brand Ambassador
The other element of the success mantra of Patanjali is closely related to its brand ambassador Baba Ramdev. He did not invest in a separate brand ambassador, instead Ramdev promoted it himself, smartly. Over the past 20 years he was building rapport and goodwill through yoga. Millions of people, not only from India but also abroad follow this spiritual guru. He took this as an opportunity and launched a whole new range of products under the brand name ‘Patanjali.’. As Baba Ramdev is a public figure and health promoter whose mass appeal is rising with each passing day he chose to become his own brand ambassador.
The distribution system for any business plays a crucial role in order to make it available to the target market in a convenient way. Patanjali also sells its products online and is planning to open outlets at railway stations and airports. Baba Ramdev also tied up with the Future Group for distribution of the products. Unlike the traditional Ayurvedic stores, Patanjali stores has Ayurvedic as well as consumer packaged goods. This is an innovative way of distribution. One of the major factors is when you buy a Patanjali product be it from a mall or a retail shop, the price is always the same and it is easily available.
Baba Ramdev focused on quality rather than quantity. Patanjali Ayurved Limited ranks as India’s most trusted FMCG brand in TRA’s Brand Trust Report 2018.
The exponential growth of Patanjali and its unique strategies can inspire every entrepreneur to build a successful business.
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