Tag: Ayurvedic products

  • Marketing Strategy of Patanjali – How They Utilized People’s Beliefs?

    Patanjali is one of the few brands that make up the very backbone of the Indian consumerist identity. With a bevy of marketing tactics to push its plethora of products, the company has become one of the icons of the Indian economy.

    The privately-owned Indian FMCG Patanjali has a vast audience in India, no matter how young, there is nobody who doesn’t know the brand’s name. Let us take a look at the marketing strategy of Patanjali and how it utilized people’s beliefs as a marketing tool.

    Patanjali – Background and Vision
    Patanjali Today
    Patanjali Marketing Campaigns
    Key Marketing Strategies of Patanjali
    How Patanjali Used Common Beliefs as a Marketing Tool

    Patanjali – Background and Vision

    The 1990s in India saw the floodgates open and the global economy ushered in a new era of consumerism. As international companies and MNCs trickled in and became a deluge, the needs of Indians altered slowly but definitively. The new millennium was flush with international goods, but the people began to clamour for more homemade production. The swadeshi effect gradually spread like wildfire, and companies began to take advantage.

    Onto this scene came Patanjali, an Indian company with a vision that stretched beyond present profit quarters and into the future. Indian yogi Baba Ramdev and Acharya Balkrishna came together in 2006 to create a health and awareness brand that focused on the present needs of the people. The brand was created and heavily relied on the image of using ancient Indian Ayurved ingredients to detoxify both mind and body.

    The main aim of Patanjali is to establish and nurture a society that promotes health first and foremost. Therefore, the brand encourages not only its health and lifestyle goods but also ancient Indian practices like yoga. It aims to create life-changing goods that will help prevent as well as cure acute ailments through ingredients that are 100% natural.

    Patanjali relies not just on the veracity of products but also on Baba Ramdev’s claims of technological imports to get the most from Ayurvedic aid and literature. The brand and its founders use various forms of marketing to promote its products. Many of which have ensured that the company continues to flourish almost 16 years after its conception. Through meticulous brand promotion and successful trade systems, Patanjali seems to be on track to becoming a face brand of India itself.

    Patanjali Today

    Patanjali Ayurved Annual Revenue
    Patanjali Ayurved Annual Revenue

    Today, Patanjali has become an organization worth crores. It is a leading health and wellness brand that competes against the biggest age-old names in operation – Hindustan Unilever, Colgate, Dabur, ITC, Godrej Consumer Products, and more.

    As of 2022, Acharya Balkrishna is the owner of the company with 94% shares under his control. The rest are divided among individual shareholders. As the chairperson, managing director, and chief executive officer, Balakrishna is also a key operator. Baba Ramdev is the face and brand ambassador of Patanjali, while his younger brother Ram Bharat is the de facto CEO. the total income for the financial year 2019 for Patanjali was ₹4,345 crores (US$590 million). With a net income of ₹590 crores (US$80 million) in the fiscal year of 2021, Patanjali has generated a revenue of ₹30,000 crores (US$4.02 billion) in the same year.

    The varied products make up for than 900 items and the organization sells them grouped under the following goods brackets:

    • Ayurvedic medicine
    • Consumer goods
    • Healthcare
    • Personal care
    • Cosmetics
    • Cleaning agents
    • Beverages
    • Fashion
    • Foods items

    With headquarters situated in Haridwar, Uttarakhand, India, Patanjali serves customers mainly in the Indian subcontinent and the Middle East. The brand has over 2,00,000 employees and controls the following subsidiaries:

    • Paridhan
    • Ruchi Soya
    • Herboved
    • Patanjali Renewable Energy Pvt Ltd
    • Advance Navigation and Solar Technologies

    Ruchi Soya Industries Limited | Founder | Growth | Funding
    Ruchi Soya belongs to the edible oil industry acquired By Patanjali Ayurved. Read the success story of Ruchi Soya, Founder, growth, & more.


    Patanjali Marketing Campaigns

    When it comes to marketing products, Patanjali uses its brand platform to spread awareness. The question that naturally arises is: how does Patanjali have such a devoted brand following? The answer lies in how popular brands of medicines used for treatments ply in India. The developing country attempts to offer affordable medicines to the socially backward and poverty-ridden majority. However, the elitist privatization of healthcare and extreme costs of life-saving medication does not allow people below the poverty line to access treatments.

    When such a vast avenue for health is closed off, alternative medicines become popular. The most crucial factor that boosts such alternatives is affordability. If alternative forms of medicine are marketed as cheap, over-the-counter, and somewhat trustworthy, people will gravitate towards them. This is where Patanjali uses its trump card to overpower allopathic medication and treatment. It promotes very affordable models of healthcare and ensures that the products are easy to acquire for anyone. Most Indians, no matter their literacy levels, are familiar with Ayurvedic medicines. Despite the lack of concrete results in studies that attempt to prove the adequacy of Ayurveda, the familiarity that people associate with this alternative cure is enough to boost sales.

    Baba Ramdev, through his platform, has helped create an image of the brand that is acceptable and popular, especially for the socially and financially challenged. His association with the brand has helped increase its visibility. Ramdev liberally promotes the Patanjali name in his innumerable yoga camps and shows. Moreover, consumer psychology maintains that the more people get to know the faces behind a company, the more they are likely to remain loyal. Ramdev’s direct communication and interaction with his buyers is a major factor in the brand’s successful image.

    The consumer goods company came just behind the chocolate-making giant Cadbury and skincare line Glow & Lovely (formerly Fair & Lovely) as the most advertised brands on television in India in 2016. Moreover, the expenditure attributed to advertising the products is very low. The brand prefers quantity over quality – its innumerable advertisements, promoting similar products, are testament.

    Costs are also low because of Ramdev’s promotions in yoga camps and reality shows like India’s Best Dramebaaz(sponsored by Patanjali). The camps are excellent sources of high consumer populations. Selling the brand is a matter of simplicity and convenience through Ramdev’s oratorship. Marketing strategist of Patanjali has made their way into the digital space through the internet and eCommerce opportunities.

    Key Marketing Strategies of Patanjali

    Patanjali Ayurved Products
    Patanjali Ayurved Products

    The process of marketing a brand is as crucial as the brand itself, if not more. Without the right sort of marketing, introducing a brand and its products becomes next to impossible. Consumers will not be interested in a product without some brand recognition. Sometimes, the brand exceeds the product (Philips, Godrej, Tata, etc.), and this is the result of excellent marketing strategies.

    The main reason why Patanjali continues to flourish in a market despite millions of obstacles is because of its subtly sophisticated marketing tactics. The marketing team behind the brand is why Patanjali is so widely accepted, especially among certain sections of society. The brand continues to come out on top, despite its weaknesses, scandals, threats, etc., again and again purely because of the way the brand markets itself. Let us take a look at why mainstream society is attracted to Patanjali and what Patanjali does to retain and expand its consumer base.

    The entire foundation of the brand is heavily reliant on the image of a Pre-Lapsarian India, so to speak. The picture is complete with ancient monuments and kings and rulers akin to the image of the gods. The allusion is to the fact that that time, throughout the various eras, was a pure one where health, hygiene, and progress of society were the aim of every individual. Therefore, the goal of the founders is to help the people let go of the burden of the pollution of the mind, body, and soul that the current kalyug (Dark Age) has imposed.

    Patanjali offers to transform and improve people’s health using the natural medicines people used in these times. It uses ayurvedic medicines to treat an extensive list of health problems. The treatments are often marketed for a variety of ailments. The brand has come under fire many times in the past for using incorrect treatments to cure illnesses like claiming yoga can cure HIV/AIDs. However, its marketing department continues to walk in the same direction.

    Baba Ramdev’s expansive yoga exercises are also a part of the Patanjali regiment. The televised events often pair up with the company. Ramdev expounds on the importance of Ayurveda and yoga to relieve the body from diseases, both as a precautionary and a curative solution. Ramdev also claims that yoga is better medicine than any other therapy or prescription for mental health disorders, often demonizing allopathic or psychiatric cures to his followers. These claims remain unsubstantiated. However, the benefits of yoga are what also keeps Ramdev so popular. The majority of his fanbase continues to follow the regimens he prescribes.

    How Patanjali Used Common Beliefs as a Marketing Tool

    One of the most significant means of spreading awareness for the Patanjali brand is a quiet barter that one of the cofounders has undertaken. While the barter system may seem outdated, its usage falls right on track with Patanjali’s principles. The bartering is not a part of the product sale nor is it a branding venture.

    On the contrary, it is a marketing scheme that helps propagate awareness of Patanjali, skewing people’s perceptions and opinions of the brand in its favor. The founders, despite their demand to go back in time to access a more “pure” and “perfect” time in Hindu history, are well aware of modern advantages like great branding. There is no doubt that a company must strive to achieve originality to survive and get ahead of the cut-throat competition. Patanjali’s founders take advantage of certain measures to ensure that the brand stays afloat.

    Baba Ramdev, the face of Patanjali, is well aware of the power of the platform he has tirelessly created over the past 20 odd years or so. His persona as a man with a fitness plan is well known. You will not find many places that have not witnessed the antics of Ramdev’s yogic postures that claim to cure all known ailments. His brand of yoga enmeshes Patanjali’s principles seamlessly, thus making it difficult for consumers to extricate the man from the brand. This, however, is what fuels Ramdev’s agenda.

    More than two decades of yoga performances have nurtured multiple associations, contacts, and deals based on goodwill. Using these means, Patanjali, by extension Baba Ramdev, has created a social platform to spread awareness of the brand. A constant influx of TV commercials, lurid advertisements, newspaper graphics, billboards, various magazines, social media handles, etc. are the weapons Ramdev uses to bring recognition to Patanjali’s products.

    These tools are cunningly crafted to foster and spread the sense of the brand and its offerings.  The goal of Patanjali is to utilize all digital, print, and other platforms available to spread recognition and induce loyalty to the brand by ushering in a sense of familiarity. Patanjali aims to secure the quintessential family demographic. Therefore, it heavily relies on television advertisements over the limited platforms of Google and Facebook ads.

    In exchange for his presence and significant influence among a major demographic in India, Baba Ramdev barters for a wider scope of audience. The type of people who continue to hold on to their television sets in an age of streaming is usually above the age of 30. They are also usually in a more traditional family setting. These are the two targets of Patanjali’s demographics, so the barter system works out well in terms of promotions and brand recognition.


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    Conclusion

    Using human psychology to push for brand recognition is a humongous part of the very identity of Patanjali. It uses people’s beliefs in old Indian ways of treatment to produce goods. With just the right marketing and offers, Patanjali has become a force to be reckoned with, despite its flaws. The co-founders of the company certainly have a long way to go. They must give up their propensity for spreading misinformation and have room for change. Their regressive attitudes can certainly create obstacles. However, as long as Ramdev and the company can hold on to their relevancy, Patanjali will go on.

    FAQs

    When was Patanjali Ayurved founded?

    Patanjali Ayurved was founded in January 2006.

    Who is the owner of Patanjali Ayurved?

    Acharya Balkrishna is the owner of the company with 94% shares under his control.

    Who is the CEO of Patanjali Ayurved?

    Baba Ramdev is the face and brand ambassador of Patanjali, while his younger brother Ram Bharat is the de facto CEO.

    What are some of the subsidiaries of Patanjali Ayurved?

    Ruchi Soya, Advance Navigation and Solar Technologies Pvt. Ltd., and Herboved Inc are the subsidiaries of Patanjali Ayurved.

  • Vicco Legal Fight | How Did Vicco Turn A Legal Crisis Into Its Biggest Marketing Strategy?

    The story of Vicco began in the 1950s. It started at such a time when people did not have much idea about beauty creams. But the launch of Vicco products in the market lead to a trend. People went crazy over these fairness and beauty creams. Vicco became every female’s favorite brand in that era. Vicco marked a place in everyone’s minds and hearts not only with its products but also with its fun jingles. Vicco used to have some really catchy jingles in its TV commercials. These jingles were so melodic and captivating that they were known by almost everybody. Today, let’s dive deep into the story of Vicco’s struggles. We will see how Vicco not only faced struggles but used them as a tool to come out stronger.

    The Beginning Of Vicco
    Vicco’s Entry into the Global Market
    Unique Selling Point of Vicco
    The Downfall of Vicco
    Legal Issue

    Vicco’s Marketing Strategy

    The Beginning Of Vicco

    Vicco was started by Late Mr. Keshav V Pendharkar in 1952. Commercial production of Vicco started in 1955 with a mere annual turnover of ten thousand rupees. With consistency and efforts, the company grew so well in no time, that it reached its maximum production levels. Because of this, Vicco had to look for alternatives for more production. At that point, they had only one factory which could not suffice the increasing demand for its products in the market. That is why it decided to take up a better and bigger space to grow its business. To manage and fulfill the increasing demands, Vicco started another factory.


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    Vicco’s Entry into the Global Market

    With two factories working towards production, it ensured that there was no shortage, keeping the supply smooth. Vicco not only worked hard but took smart decisions and made the right moves at the right time which helped tremendously. Apart from India, Vicco now had enough space and capacity to produce products for other countries as well. To take the growth forward, Vicco Stepped into the global market. Seeing the scope of its development, Vicco started exporting its products to various countries like Europe, Canada, Australia, The USA, The Middle East countries, etc. With the growing interest of the people in the products by Vicco, the exports kept on increasing.

    Unique Selling Point of Vicco

    The main aim of Vicco was to promote Ayurveda and to show the world all the benefits Ayurveda can offer. Vicco was the first one in the market to make an ayurvedic toothpaste. They were also the first to make turmeric cream, known as Vicco turmeric skin cream. Vicco sells many other products such as Vicco Vajradanti paste, Vicco turmeric WSO cream, etc. The specialty of Vicco was that all its products were made using various ayurvedic herbs. Although Vicco was started by Late Mr. Keshav V Pendharkar, after his death, his descents took forward the business and brought it to where it stands today.

    The Downfall of Vicco

    Vicco has been in the market for many years now. It has started gaining recognition as one very well-known brand. But to get to this stage, Vicco had to go through a lot of ups and downs. Seeing the growth of Vicco, there were many new companies that started selling products replicating that of Vicco. This stood as a huge threat to the Ayurveda-based company. All of a sudden, there were a lot of competitors in the market. Apart from these, Vicco had to face a huge downfall when a case was filed against them. The Company had to face questions and doubts about its authenticity. The case that was filed against Vicco, contained complaints doubting the use of real Ayurvedic products and hence should be considered just a cosmetic brand.

    Case: Vicco Laboratories Vs Commissioner Of Central Excise, Goa and Thane

    In the year 1978, Central Excise Authorities held that Vicco should not term its products “Vicco Vajradanti” and “Vicco Turmeric Skin Cream” as ayurvedic and rather be classified as cosmetics. The Central Excise department claimed that both the products of Vicco laboratories cannot be categorized as “ayurvedic” and shall actually come under the “cosmetics”. The authorities wanted these two products of Vicco to be taxed under cosmetics and not under ayurvedic products. However, Vicco challenged this claim made by the Central Excise authorities in court before the Civil Judge, Senior Division. The decision was in the favour of Vicco. It was held that both of these products shall come under the “ayurvedic” category as the process of preparing these two products involved using ayurvedic medicines.

    Bombay High Court’s Decision

    Later on, the Central Excise authorities challenged this decision and filed an appeal in the Bombay High Court. The Bombay High Court held that these two products are not considered cosmetics. But at the same time, the High Court also held that these products cannot exclusively be termed ayurvedic too. Both Vicco and Central Excise Authorities further went ahead and filed a special leave petition before the Supreme Court. The leave petition filed by the Central Excise Authorities was dismissed by the Supreme Court. Later on, Central Excise Authorities consented that the products were rightly classified by the Bombay High Court, on the basis of which the Supreme Court passed a consent order.

    Supreme Court’s Order

    The Supreme Court also held that products of Vicco cannot be considered under the cosmetics category. It said that Vicco shall still be categorized under ayurvedic products. With smart strategies and diligently fighting the matter legally, Vicco managed to keep its reputation undamaged.

    How Did The New “Central Excise Tariff Act, 1985” Come as Trouble to Vicco?

    After the Bombay High Court passed the order, The new Central Excise Tariff Act, 1985 came into existence and the Central Excise Authorities again went ahead to claim that as per the new act, the above-mentioned products of Vicco come under the cosmetics category. Such a claim was made to the Excise tribunal and even this time, the result was in the favour of Vicco. Further, many show-cause notices were sent by the Central Excise Authorities to Vicco. Central Excise Authorities required Vicco to pay taxes for its products under the “cosmetics” category as per the new act.

    However, during all this time, Vicco was all over the news and there were doubts being raised in the minds of the people. The consumers and customers of Vicco were starting to question the products and were in a state of confusion with regards to whether the products of Vicco really were ayurvedic or not. Vicco was in the market for such a long time and had gained the trust of a huge number of people. But such an incident pushed Vicco’s customer base into two minds regarding its products.

    It takes years to build a good reputation in the market and takes merely a few days for that reputation to be squashed down. It is very normal that when questions are raised about a company, even though there might be a customer base that is loyal, there will definitely be a certain percentage of people who might get hesitant and doubtful about the company. In the same way, even though there were a lot of people who had trust in Vicco, it was important for the company to ensure that the people in the market didn’t lose trust and that its reputation stayed intact.

    Vicco’s Marketing Strategy

    Main Vicco Products
    Main Vicco Products

    The mode through which a brand is marketed is very important. Vicco was a brand that was marketed through various mediums including newspapers, magazines, radio, TV, and Word of Mouth. Out of all the strategies, TV commercials worked the best for Vicco. As per the stats, 76% of people got to know about Vicco through TV commercials.

    Vicco wanted to assert to its buying public about its products were ayurvedic and not cosmetic, while it legally fights the tax claims. Vicco came up with the best marketing strategy possible to clear all the doubts in the minds of people. Vicco launched the most genius advertisement that had a jingle “Vicco Turmeric nahi cosmetic, Vicco Turmeric ayurvedic cream”. Yes, I am sure you did not just read that line but also sang it in your head. That is the kind of impact it had on the public.

    The jingles had the crux of what Vicco exactly wanted to convey. Incorporating a catchy jingle in the advertisement is always a good idea as it gets stuck in the heads of the people watching it. On top of it, if the jingle involves such words that have the capability to clear all the doubts in people’s minds, which worked like the “Cherry on the cake”. In the same way, the jingle used by Vicco had exactly those words that had the potential to remove all the doubts about its authenticity. In no time, this jingle made its place in a lot of people’s minds. Vicco came up with various jingles in its advertisements that could prove to the audiences that its products are ayurvedic in nature. These jingles did not just seem like clarification to the audiences but were also a subtle mockery towards the Central Excise Authorities.

    These jingles were used in every advertisement for Vicco. Those were the times when TV was watched by almost everybody on an everyday basis. These commercials of Vicco were telecasted on various Indian channels. The Vicco ads were heard on almost every other channel. This strategy of Vicco was so successful. The jingles used in the commercials were stuck in everyone’s heads. People know the tune and exact lines of those jingles even today. Such was the impact these advertisements had.


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    Conclusion

    With this, we can understand that marketing strategies do not mean something very complicated and it does not have to be complex for it to actually have an effect or influence. It is just about understanding human psychology. If a person understands how a human brain works, it is really not that hard to come up with a strategy that can help in product branding, marketing, sales, etc. As we have seen with Vicco, something as subtle and simple as a jingle can also have a huge impact if done rightly.

    FAQs

    Who founded Vicco?

    Vicco was started by Late Mr. Keshav V Pendharkar in 1952.

    When did Vicco start its commercial production?

    Commercial production of Vicco started in 1955 with a mere annual turnover of ten thousand rupees.

    Where is Vicco’s headquarters located?

    The headquarters of Vicco is located in Nagpur, Maharashtra.

    What are the main Vicco products?

    Vicco is mostly based on Ayurvedic products. Its main products are “Vicco Vajradanti” and “Vicco Turmeric Skin Cream”.

    Vicco came up with the best marketing strategy possible to clear all the doubts in the minds of people. Vicco launched a very famous jingle “Vicco Turmeric nahi cosmetic, Vicco Turmeric ayurvedic cream”.