Executive Summary

Number of companies have operated in this region using up their international business model and made considerable revenue operating for several decades. Recent economic developments that have been made in the region did not remain limited to individuals but also took place at a corporate level. Patanjali Ayurved Limited commonly referred to as Patanjali is an Indian company which comes under the category of fast moving consumer goods selling products which are pre-packed and ready to be sold. Patanjali is referred as a disruptive force because it took various MNC’s by surprise and stole its market share (Gupta,2016). Main aspect which has been implemented in this company from the start allowing it to differentiate from other competitors present in this market was the induction of concept of spiritualism which had widespread fame in India.

Generally, people follow spiritual gurus which give benefit to people by providing guidance. Management of the company realizes this fact that hardly meeting domestic demand will not make it possible for them to meet demands at a global level and calls for expansion of their manufacturing plant. Recognizing this need, the company invest large amount of capital crossing 1000 crore construction of a manufacturing plant in South India which is expected to immensely increase manufacturing capabilities which would be adequate to meet international demand (Jhala, 2007). Competitive edge which the company was able to maintain is its pricing factor which they maintained at significant difference with the nearest competitor. If the company is able to use the same prices at an international level, then fame of the company is bound to increase and would generate demand at the international market.

Competition is present from several sides such as the products being imported, products being produced by multinational corporations that are sold evenly throughout the country and relatively smaller competitors present occupying small regions in unique product but seriously affect sales of the company. Rural population also presents a suitable target market as their buying power may be low but seeing their needs being fulfilled at a small price as compared to competitors will definitely encourage them to try these products (Rothschild, 1999).

An important factor which contributed to the success of patanjali brand is the implementation of modern machinery in its production process along with forming state of the art plant that would ensure quality up to the standard level. Since patanjali has proved its place within the market of India now they should expand their reach beyond national boundaries and explore global markets to identify areas where demand is present (Kumar & Jain,2014).

Company should move away from third party selling and present itself directly to international customers. Previous composition of management team may have worked out due to the small scale at which the company had started its operations but now catering such huge demand present in the market would require greater team of professionals. In order to take care of growing needs the company needs look for qualified individuals and groom them further so they can pioneer the company into greater profitability. Several problems are being faced by the company from regulatory authorities and other internal, external factors but certain recommendations have been given which could help tackle this situation.

Disruptive Innovation: Patanjali

1         Introduction

India has always been considered an attractive global market particularly due to the large number of buyers present in the region. Population of the country exceeds 1.3 billion and is considered second only to that of China (Gupta & Garg 2016).  Although India is considered a developing company yet rapid advancements are being made in various economic areas therefore increasing buying power of people. In such a scenario various multinational corporations came rushing to this region taking up the opportunity for capturing such a large customer base.

Large multinational corporations seem to be at each other’s throats trying to devise more effective strategies so that they capture greater portion of the market Number of companies have operated in this region using up their international business model and made considerable revenue operating for several decades (Arora and Athreye 2002). Recent economic developments that have been made in the region did not remain limited to individuals but also took place at a corporate level and brought up many new larger industries that were able to compete with these established multinational corporations (Jaggi & Gosh 2017).

We shall be studying the case of such company which was not only able to establish itself in such a competitive market but greatly increased its sales in a small duration threatening the other established brands. Point of view from which launch of the company is to be studied is from the angle of a disruptor as to how they were able to find a gap in such a market where strict competition was present and later enables itself to successfully overcome the entry barriers. Eventually this led to rapid growth in short duration setting up such an example without anything in similar. Major aspect that can be seen to have deep impact behind this success is the concept of spirituality.

Origin of the fame for the Yogi baba Ramdev started with his Yoga classes where TV slot for moring show began airing Baba Ramdev’s yogic classes; overnight, Baba Ramdev rapidly achieved fame helping him become a celebrity. At that point Sanskar channel’s opponent Astha channel marked him. He became a hit within period of two years from which his channel greatly profited along with data regarding his show on TV indicates have the biggest TRP. Today, he is one of the greatest draws on Indian TV (Pandey & Shah 2016). Due to his fame he can now be seen at several TV channels where he holds greater repute such as on Ashta.

TV channels also took interviews from this renowned yogi wanting to gain his wisdom. Millions around the nation take after his projects religiously and utilize Ayurvedic pharmaceuticals endorsed by him. There was an a considerably long holding period before one could see Ramdev; he was being reserved along time before airing his shows because he was such in demand and people wished to see his yoga lessons. His yoga sessions were shot live into 170 nations. Additionally, Baba Ramdev’s pack i.e., one DVD, two Video CDs, three books on yoga, pranayam and home grown cures, and Magazines are accessible. Versatility was seen in his practices as they did not relate to a specific group or people but aimed to accommodate various people belonging to different backgrounds (Shukla & Sanghvi 2017).

Indeed, even solid individuals are following his yoga pranayam regimen, as accessible in his DVDs, VCDs, Books and magazines and so forth, to stay in shape. Baba Ramdevs teaching did not cover a single area such as sustenance, dress and safe house yet in addition incorporates a solid way of life where various every day activities were seen to be covered, and has figured out how to tweak his contributions to suit the necessities of all. He has acquired many skills due to which his personality sets out differently from others such as mass customization and practices the workmanship to such a level that every individual feels that he is conversing with him separately. There would proper checking techniques for the items that he was given out to customers, particularly in rustic markets. Patanjali does not wish to be known in a single area but wishes to expand its reach to child mind, creature bolster, natural games attire, footwear, drain items, for example, margarine, cheddar, and so forth.

Majority of success as gained by Ramdev’s Company can be attributed to various factors such as on the nature of the item instead of on the picture of brand minister. In perspective of better future of the company seems bright along with large amounts of profits which seem to be coming at its direction, which will add to the general GDP development of the nation (Pandey & Shah 2016). This would positively affect the FMCG advertise in India and those brands which are in home grown and regular classifications might likewise be profited.

We shall be making in depth analysis for various segments of the Indian market studying how this company took off and later was able to establish such a strong foothold. This study will help us understand this new approach which allowed new corporations to occur and what changes in the market allowed such transition to occur. We shall start off with introduction of the company its various features will be highlighted (Telles & Yadav 2013). This will include brief history of the company as to how the company came into being and what products are currently being offered in the market. External internal analysis will also be done in order to highlight internal strengths present along with external opportunities that can be taken up.

Next section would shed light on main factors which showed an innovative approach and allowed patanjali to reach its current successful condition in the market. Main features will be highlighted through which the company was able to differentiate itself from the established brands. Analysis will be made of competitors that were already present in the region relating to the category of FMCG. Main competitors under study will be multinational corporations mainly because they more severely by rapid expanse of the company chipping away at their customer base.

Disruptive effect will be analyzed as to how growth of the company let to disrupt market stability and brought many MNC’s to their drawing boards for revising their strategies (Jaggi & Gosh 2017). Company of this size would have demand for its products at international level therefore feasibility will be check for its expansion into international markets by making analysis of various opportunities and threats. Current issues being faced will be mentioned followed by few recommendations through which condition of the company can further be improved. Last part will consist of overall conclusion for the topic.

2         Patanjali Yurved

Patanjali Ayurved Limited commonly referred to as Patanjali is an Indian company which comes under the category of fast moving consumer goods selling products which are pre-packed and ready to be sold.  Headquarters of the company are located in Haridwar industrial area while holding a registered office at the capital of Delhi. Main products which are being sold by the company relate to mineral and herbal nature (Jaggi & Gosh 2017). Area served by the country is south Asia and Middle East.

It is a fast growing company having value of about 460 US million dollars. Number of employees currently working in the company amount to 200000. Main moto being applied by the company is offering natural products being herbal in nature and claim to have minimum use of chemicals (Shukla & Sanghvi 2017). It is known to have Herb mineral manufacturing of adequate quality which is ensured by maintaining good rang of suppliers which are responsible for giving output of greater quality.  Claims have been made for applying good manufacturing practices allowing it to be more environmentally friendly. Equipment used for manufacture of various products operate in various steps with each additional unit aiming at increasing overall quality of products such as blenders, membrane filters, vacuum testing chambers, inspection machines, lyophilisers, pressure vessels which vary according to quantity of the batch (Gupta & Garg 2016). Qualified team of engineers and assurance personnel regularly carry out inspection of these elements to ensure their proper working.

2.1        Marketing Leader

Two people played the key role in the establishment of this company which are baba Ramdev and Acharya Balkrishna but Ramdev played a key role in its spreading its fame. It started off with a morning show here Ramdev gave yoga classes asking viewers to follow his steps and encouraged them to take up a healthy lifestyle and give up products which contained chemicals which are harmful for health (Gupta & Garg 2016). Like other brands used to hire celebrities having considerable reputation to play as a brand ambassador, Ramdev served a similar role due to his rising popularity among people as not only a religious leader but spiritual guiding people telling people to take up a modest living. Although the tradition of Yoga and pranayama was somewhat avoided due to the concept that it must be done with extreme care or it could carry several consequences but Ramdev showed that this practice should not be left out but can be practiced by individuals. His effort to revive this trend played a key role to his popularity as they service economic, social and spiritual needs of the people. Using this widespread fame and rising demand for products which had a more natural and herbal aspect gave him the idea of launching such brand focused on delivering products with this herbal outlook at competitive pricing (Shukla & Sanghvi 2017).

Working of the company is still benefitting from this fame and taking up ideal of Ramdev for future growth. Ramdev did not only play a role in establishing this company but made contribution in several other notable areas relating to charity and human welfare such as the establishment of a medical center where patients were given free checkups along with highly subsidized medicine. School was also set up where ancient education of Yogi was to be combined with modern technology and innovation.

2.2        History

Foundation of the company was laid down in the year 2006 after which it seen remarkable growth and seems to be on the rise after twelve years of its creation. Before its official creation the origin can be seen as a small pharmacy that was located in Hardiwar selling herbal products to customer through various informal chains (Jaggi & Gosh 2017). Patanjali acquired the name of official company in 2006 following which rapid growth was seen. Several milestones were achieved with time such as opening the largest food part of the world in 2010 along with hitting record revenues of 450 crores in 2012 along with opening 450 official stores. Rapid expansion was seen in the next three years where number of stores increased several folds reaching 4000 along with substantial increase in revenue. Contracts were signed with other firms such as Future group and DRDO so that reach of its products can be expanded further allowing greater market penetration.

2.3        Products

Main category of items as covered by the company include food items and personal care. Complete line of product comprises of 900 products out of which 45 are categorized under cosmetics while 30 types are of food stuff (Rawal 2016). It is claimed by the company that all raw material involved in manufacturing of such products are made from components which are natural and Ayurveda. New product ranges are also being explored as the company has started offering beauty products along with those relating to baby care.

Medical products have been offered long before it became an official company offering more than 300 medicines which cure a number of bodily diseases ranging from common cold to chronic paralyses. Instant noodles were started in 2015 which seriously damaged its main competitor Maggie noodles.  Later the regulatory authorities labelled it as neither working under Patanjali or Aayush brand name and does not have approval for making noodles (Shukla & Sanghvi 2017). Plan were laid out in 2016 for entering the textile industries where the company was not only to make traditional clothing but would also cover several wester attires such as jeans. Production is carried out through fifty manufacturing units which the company currently holds in the region.

2.4        SWOT

Strengths   ·         Ramdev is thought to be the face of all Patanjali products due to which his reputation has played an important role for spreading fame of the company ·         Strong sales which seem to be growing with time allowing ventures into other product ranges ·         Increased trust with the brand of customers which helps enhance customer loyalty ·         Lower pricing which allows the company to maintain competitive edge against customers ·         Products being offered are natural with little inclusion of chemicals therefore having low number of side effects ·         Takes of social responsibility for promotion of products which are healthy for the human body ·         Use of spirituality concept in a unique innovative play has played a pivotal role in moving the company toward its success ·         Concept of total quality management is highly recognized and applied by management of the company and takes several steps to ensure pricing strategy does not allow quality to get effected ·         Advertising methods used through spirituality and its monk as a brand ambassador has played an important role for spreading fame of the company ·         Innovative outlook has been taken up where the ancient principles of Yurved is applied with combination of modern technology and innovative machinery

Weaknesses   ·         Weak corporate structure as only a few people are located at the top management position of the company ·         Lack of qualified professional which can handle the rapid pace at which the company is expanding ·         Has not yet ensured balance availability of products in all regions of the country ·         Stocking complete range of products with al distributors and retailers have been difficulty ·         Demand for company’s products are present at an international level but little effort is being made for promoting export ·         Few products are failing to meet price levels and therefore people prefer substitutes ·         Rural areas are not properly reached out in most areas and little promotional activities are resent ·         Does not compete with MNC’s in all product lines due to which a large portion of demand is not being taken up ·         Marketing strategy has proved successful in the past especially during the launching phase but will make it harder meet future needs if necessary changes are not made in it ·         Little standardization is present in its advertising where the company seems highly dependent on customer base and fame through word of mouth

Opportunities   ·         India holds a large population amounting over billion which means that substantial target market is present for the company to capture ·         Penetration into rural areas is low although the use of Yuvrej methods are more common in these areas therefore greater demand could be developed in such areas ·         Increasing trend of movement away from international products towards ore Ayruvedic brand which currently apply herbal approach in their products ·         Products being offered have potential for expanding into international markets which can be expanded into by proper planning ·         Several benefits associated with export such as tax and duty benefits encouraging the company to make more efforts for moving into international markets ·         Rapid development taking place has greatly improved confidence of various stakeholders of the company and it is hoped that it could become one of the top FMCG company if they are able to maintain growth at the current rate ·         Products of the company started off from herbal medicine but soon expanded into various consumer products increasing profits greatly however, many product lines are present which can give ample opportunity for patanjali to expand into

Threats   ·         Political interference being faced along with increasing regulations from government authorities are proving a hurdle in proper development of the company ·         Several controversies have come to surfaced mostly fueled by competitive brand which want consumers to question safety of such product ·         Import restrictions being reduced have led to greater influx of foreign products due to which the competition keeps on increasing along with reduced demand for products made by domestic companies ·         Slight slowdown which was recently in the economy could have drastic effects as a whole on FMCG industries ·         Growth of other local brands also working on principle of spirituality such as Sri Sri Ayurveda and MSG which are established in different regions may pose considerable threat for the company in the future ·         Company had enjoyed relative relaxation in taxes because of being a national company, however these benefits may not hold out in the future as the company may be asked to pay out higher taxes making it hard to maintain competitive advantage ·         Patanjali products seem to have potential for expanding into various international markets but excessive export regulations, product criteria and lack of support from foreign governments is proving to be a major hurdle

3         Market Analysis

One of the main reasons through which the company was able to establish itself is application of spirituality and role played by the brand ambassador in spreading fame of the company through which many multinational corporations were taken by surprise. A small company which they had ignore for such time and kept their focus on traditional competitors, were now amending their own strategies to compete with Patanjali. This section will cover discuss marketing and operational strategies as applied by the company highlighting their main features which allowed them to differentiate from current competitors (Shukla & Sanghvi 2017). Indian FMCG advertise is relied upon to develop to USD 110 billion in next four years. Sustenance and individual administer to sixty five percent of aggregate FMCG deals while country advertise represents almost 40%. Dabur and HUL among themselves share near 50% of the rustic market. They are currently being tested by Patanjali, which has items and evaluating appropriate to the country buyers. According to the investigation led by IIFL in January 2016, Patanjali is relied upon to reach $3b in next four years. Firm has itself taken an aspiring focus to twofold the business incomes to $1.5b by March 2017. However to accomplish that objective, it needs to move past the current client base, which is essentially in North India. Firm has reported its extension designs and allotted generally US$ 155 million for setting up six handling units including Food and Herbal parks and one Research and Development Center.

3.1        Product

Entry into the sector of fast moving consumer goods was done in 2012 where it enters with the swadeshi product line. Main value proposal as submitted by the company was making pure products through herbal materials. These herbs were claimed to brought form the Himalayas and did not carry side effects. Such herbal products and medicines as presented by the company proved to cure various types of ailments. Further the users were advised to practice the technique of pranayam as it increased the pace of healing process (Gupta 2016).

Diversification strategy has been applied continuously in order to expand the reach into various market segments. Use of various spiritual methods such as yoga classes helped penetrate deeper into the market where consumers were continuously showered with concept of adopting a healthier lifestyle and using products which are free from chemicals. Development of product is taking place through the combination of ancient Ayurvedic methods combined with latest technology in order to attain a product as a combination of old and new. Strategies are being applied in order to capture young generation as a new market so that trend of herbal products can be promoted further. Product range is continuously being diversified by entering into various business segments such as cosmetics, FMCG products, health drinks etc. Although products offered are of common use due to which customers are bound to purchase it however, strict competition present in the market is making it hard to maintain sales due to which greater effort has to be put in maintaining competitive edge against customers (Kumar & Jain 2014). Main products which have been launched in response to current competitors that are operating in the market include: sharbat range which includes Amla, Bel, Brahmi Gulab, Juice range which includes Anar, Amla and Oragne, Jam range offering various flavors such as apple, pineapple and mix fruit, packed salt sold under the name of Saindha Namaz, Chyawanaparah sold under the name of sada and special chawanaprash, flour product sold under the name of Argoya atta, Candies sold with the name of Amla and Andara, washing powder sold with name of Ujjwal.

3.2    Price

Effective pricing has remained difficult part of the strategy formulation of Patanjali. This is particularly difficult in India as it is a developing nation and price sensitivity is high where people would gladly take up lower price rather than higher quality due to which every new player which enters the market tries to put a dent through reduced pricing. Ramdev has tried taking a different approach where low pricing is not in complementary with lower quality (Kumar 2016).

On the other side the established brands price their products at a considerably higher set point as compared to expenses and carryout greater spending in promotion strategies in order to maintain sales. Due to this reason most of Patanjali products are 30-40% cheaper as compared to other alternatives available. Brand ambassador Ramdev has played an important role as brand ambassador for spreading such values that are being offered by the company. One strong message as presented by him is that a sport model or other celebrity featuring in ads for a company does not ensure that quality of the products but rather maintaining transparency in operations would carry more positive effect on the mind of consumer.

Pricing strategy as applied by the company is skimming and penetration where expenses are tried to be kept at a minimal so that final market price can be set at an attractive value bringing in the most customers. Consumers are encouraged not to get dishearten from their problems and rush towards expensive treatments but hold faith in these traditional methods as they can prove just as effective. Since the company wishes to attract greater of market therefore effort is put in order to keep pricing within affordability range of maximum customers such as offering small packaging so people can benefit from it at lower pricing. Price revision strategy is currently being applied by the company so that products have greater sales can generate more profit. Small toothpaste packaging which was previously sold at 28 is now priced at 40 (Shukla & Sanghvi 2017). Other pricing strategies are applied are various levels where premium products are being priced greater than its competitors as they have stablished image in the market as being a product of adequate quality (Grewal et al. 1998).

3.3        Placement

Placement of products in the market has been considered a tough challenge for these companies particularly due to large geographic distribution of the region where features of each market is different. Further severe competition is present from multinational corporations which hold strong place in the market along with smaller companies which specialize in a single product at a single area (Porter 2000). FMCG products are generally sold through large channels such as general stores or super markets. Various modes of distribution have been taken up by the company which are a mix of both traditional methods along with new advanced systems. Website of the company serves as an important platform as any person can buy various products of the company and easily pay for them through the online payment option.

Products can also be ordered by post through sending the required amount of products through draft. Official stores of the company referred to as Patanjali Chikitsalayas are present in all major cities of the country from which the company’s products can easily be acquired (Rawal 2016). Service of doctor is also available at several localities who provide guidance regarding what products of the company to use according to problem the customer is suffering from. Herbal products are made available at various post offices present throughout the countries. Yoga camps also serve as an important site for promoting products as large number of people visit such places where they learn about qualities of various products being offered.

Competitors that are present have not only taken hold of large chain stores and supermarkets but also established place in large number of kiryana stores present in the country. Growing trend of e-commerce and widespread use of e-markets due to which online retailers are also reaching out to acquire company’s products for reselling. Franchise product allowed the company’s product to establish a brand exclusive image (Pandey & Shah 2016). Increasing demand for products made it hard to manage the distribution channel and current outlets failed to cope with the increasing demand due to which contract groups who would be carrying out this distribution function. Website of the company also caters for applications from distributors who wish to see sell patanjali products. Increased demand has now led to need for setting up unique product distributors due to which a single distributor cannot be supplying more than one product.

3.4        Promotion

Main factor which played a key role in making establishment of this company possible which is promotion of yoga trend which started with yogic classes at a morning show back in 2002. Ramdev became a role model having large number of followers. With time he became a TV sensation through which the channel benefitted (Shukla & Sanghvi 2017). As of today millions are following this figure and placed great trust in his actions such as supporting charity programs that he started such as the hospital which provided free medical care for all along with subsidized medicine. Ramdev played an important part in promoting the use of herbal products along with advising them to take up a healthier lifestyle with limited use of such products which are lathered with harmful chemicals.

Thus process of awakening the users proved to be successful and customers became more aware regarding the products that they use. However, question arose of where these herbal products are to be found as the current products available either did not have authenticity whether they were actually herbal or not while products with more assurance relating to quality came at a heavier cost. This gap as recognized by Ramdev was taken up for launching the patanjali company which was built on the moto of providing herbal products which will have little side effects on human health. Followers rushed towards this preposition due to which demand for its products increased rapidly (Raizada 2016). Yogi campaign as launched by Ramdev played an important role for promoting the patanjali company. Various mediums were used for promotion of the company such as advertisements through journals and newspapers. Website which also serves as an online store helps to ensure strong online present which is a basic requirement of the digital age. Interactions are made regularly with other industrial portions and businesses as they play several supporting roles such as inward logistics and outward logistics. Paper and digital media is being used for promotion such as brochures and literatures stating how to use various products along with video discs which guide on how to practice various yogi techniques (Pandey & Shah 2016).

4         Competitors

India always served as an attractive market for due to several demographic and geographical reasons due to which various companies have been visiting region for considerable time and many multinational corporations have established themselves within this market. India is expected to make up third largest consumer market of the work by 2025 particularly due to economic development that is taking place in the region along with increased awareness about brands and increasing buying power (Mulford and Comiskey 2011). Several MNC’s have flocked towards this region and each company occupies its own market share within various products. Many of these competitors were shaken by the rapid success which was taken by Patanjali due to which they had to revise their own business strategies (Pandey & Shah 2016).

We shall be studying the condition of these companies particularly how they previously dominated this large market and later how they were taken by surprise by their growth. Comparison shall also be made between product features being offered by such corporations against those being offered by Patanjali.

4.1        Outlook against Competitors

The co-founder Ramdev established the company on three main pillars which are Yog, Ayurveda and nationalism. Prior two played a role in the Launchpad phase for the company as initial customer base was set up which boosted sales. But the main theme which is being promoted is to wage war against the multinational corporations which have established themselves within the nation (Rawal 2016). Perception is being created that these companies are selling products at a price which is far greater as compared to expense therefore they are earning profit unjustly. This proposition is further being enforced by offering products which are comparable much cheaper than the retail price of products set by other companies.

Further the marketing strategy being applied by other companies was on a traditional mind set which they had been successfully applying for several decades and earning adequate amount of profit. Even when patanjali had entered the market, most companies did now give much head to it and kept their eyes on traditional competitors devising strategies to outrun then (Pandey & Shah 2016). Rapid development that patanjali showed in the following years took these companies by surprise. Strategies as made by this company was not different as it had its own prepositions for the audience. New rules were formulated which these competitors had to follow. Few major changes that occurred in this area include increased emphasis on making herbal products, maintaining prices at a competitive level and adoption of principle that relate to corporate social responsibility. Model as presented by Ramdev had a blend of ancient Indian heritage and methods along with use of modern technology.

Proper execution of the pan as present by Ramdev played a pivotal role in this aspect. This involved developing need in the market which was possible due to massive fan following present easily influence through various public forums along with yoga sessions that he conducted. Need was recognized as people failed to find herbal products which were reliable or within an affordable range. Products were designed in such an orientation that they could directly cater the needs of current gap present. Herbal products later launched were either at par or at a discounted price as compared to competitors (Gupta & Garg 2016). People that were in search for such products rapidly took up their products through which the company entered the market. Products were diversified which were taken up by previous customers and allow its integration.

4.2        Product Competition

Companies present in the market of India which were previously catering the need for various products include Hindustan Uniliver, Dabur, Britannia, Proctor & Gamble, nestle etc. which had dominated the market for decades in the category of FMFG sector. Features of this industry include managing extensive networks for distribution of products at lower pricing and maintaining quantity sales (Shukla & Sanghvi 2017). These players who had been deeply rooted in the market presented immense competition for patanjali. We shall be discussing various products that are being offered by the company along with brands it has to compete with in these products. Pineapple juice being offered by patanjali is competing against real juice made by Dabur but comes at a discount rate of 14%.

Chaywanprash being offered by Patanjali competes with similar product presented by Dabur but comes at a discount of 45 rupees. Cow ghee made by the company compete with parsi dairy ghee but comes at a substantial difference of 260 rupees. Face wash made by the company competes with pears product but comes at a discount of rupees 20. Kanti neem competes with Himalia naeem and turmeric but comes at a discounted price of 49. Toothpaste manufactured by patanjali is regarded as one of its most successful products. Low pricing can be credited for the success of this product as it is almost 19% cheaper than its main competitor. Shampoo sold by patanjari mainly competes with head and shoulders which sells at 159 while patanjali sells their shampoo at 110. Through this pricing strategy by earning minimum profit, patanjali not only support its price for value moto but shows other brands maintain greater pricing to secure larger amount of revenue. Health products being sold by the company is near the breakeven value because they believe earning profit from some product which is beneficial for human health is not justifiable.

Basic mission statement does not show any intention of generate profit and surpass competitors but aims at promoting old Indian values to Ayurveda (Gupta & Garg 2016). This has led to emphasis on herbal from the established brands but they did not exactly possess adequate product range to present a counter product as most contained various chemicals in their manufacturing process. Change as presented by the company was not only in its business model but also covered changed the mindset of brand ambassador. Various celebrities were used by the company as a brand ambassador as people tend to follow them as a role model and seeing them representing a company would encourage them to take up products of that company.

But now the spiritual leaders were playing an important role in molding the desires of these customer as their mindset was being changed towards healthy outlook to switch towards herbal products along with increasing spirit of nationalism to purchase their national products more. Further the concepts of transparency in business are also presented by the company so that people can take up a more positive approach relating to such products (Jaggi & Gosh 2017). Other companies were also motivated to adopt a greener approach in its operations as was set by patanjali.

4.3        Future Movement

Launch of patanjali in the market did not raise much alarm as size were comparatively small and did not take up significant part of the market. Rapid expansion that took place allowed the company to earn up greater amounts of profits which have been used for further expanding its product range. Later on the rapid expansion forced them to revise their strategies and take up a new outlook. Steps taken up by competitors involved taking up a different approach by giving out its own herbal product range based on the methods of Ayurveda. Greater expansion is being carried out to offer more affordable prices to price sensitive customers. Dant Kanti tooth paste competes direct with American oral care which had been losing its sales consecutively for several years but now the company regained its base (Jaggi & Gosh 2017).

Main product it presented in response for these herbal product is Colgate Neem salt which includes traditional material of Neem and Salt. Such results have given hope to MNC’s that rapid expansion that the company is currently undertaking can be brought to a halt. Just after a year of its launch the tooth paste was able to take up market share of 1.1% which is still short of Dant Kanti’s market share of 7%. This shows that just by taking up more herbal products can help them regain the lost market share. Nestle was able to fight off the competition as presented by Patanjalis noodles brand as it got a ban imposed on it for now having manufacturing rights of instant noodles. But this is not the end of competition as Patanjali established base for moving into various other food products such as namkeens, juices, biscuits etc.

But this does not end problems for Maggi brand as it is currently occupying 55.5% but still other brands seem to be growing. Strong comeback can also have been seen in local brands which have been taking up the concept of herbal products such as Peer Emami and zandu which are also increasing their market penetration and supporting diversification of products. Uniliver has adopted a more aggressive outlook in promoting its herbal product which was achieved through the acquisition of Ayurveda Hair (Rawal 2016). Hence we see that although initial entry had taken market by surprise but now the business strategy has forced competitors to change their product nature which they are carrying out properly which has led to somewhat comeback.

5         Disruptive Force

Disruptive innovation is defined as a technology which renders the previous products invalid or reduces their demand present in the market. Patanjali is referred as a disruptive force because it took various MNC’s by surprise and stole its market share (Rawal 2016). Disruptive force in the market forces other brands to revise these strategies so that they can cope with the forces present. Existing companies have been working with their traditional marketing models which had been working well for many years but with the emergence of new markets called for major changes.

Food products being offered by patanjali consisted of various products of differentiated nature such as almond mix, nimkos and other user products but top of the line product was its toothpaste which gave other toothpaste a run for their money such as Colgate. Increased demand of patanjali products gave distributors greater incentive for supporting the company due to which their demand for such products increased (Raizada 2016). This is also one of the reason through which range of Patanjali products which can be clearly seen in the increase in number of stores from 200 in 2014 to 6000 in 2016 along with initiation of more than a dozen brand series which current herbal corporation did not create such as oats, detergents and noodles. Growth of around 80% was seen in the growth which shows how successfully it penetrated through the markets (Gupta & Garg 2016).

5.1        Cause of Disruption

Big companies were taken aback where they had to revise their business strategies to move into the gap as created and taken up by patanjali. These companies had considerable reserves present particularly due to their previous decades of successfully operating in this market along with their well-established network throughout the country which would make implementation of these renewed strategies easier. These companies were forced to make somewhat changes as their sales were declining discontinuing their inflow of revenue which they had been enjoying for several years. As shown by data for sales of Patanjali Company the, proportion of market share taken by the company are around 30%. Ayurvedic medicine makes up 35% of market share, honey takes up 35%, Ghee makes up 33% while Chyawanprash makes up 30%.

Patanjali maintains higher profitability in several products particularly due to lower manufacturing costs on these products as compared to its competitors (Kumar & Jain 2014). Main reason of these low overhead costs is the small management team which reduces the costs that would have been required for professional managers, along with selling through exclusive shops saved the costs which would have incurred on distribution network (Mulford and Comiskey 2011). Need for distribution network arise recently as the demand for products increased to such a level that old system could not cope with its needs. Main products were still seeming to get impacted by inflationary trend. Brand set by the company is one of its kind particularly due to the strong combination of positive brand image along with competitive pricing which allowed it to form this disruptive force in the market bringing various strong companies out of their comfort zone and had them running again rethinking their strategies.

Main companies effected by the rise of Patanjali were the companies using non Ayurvedic methods as this was the main differentiation point through which the other companies were outpaced. Actions of the company resulted in increased use for Ayurvedic products in various industries such as use of such methods in manufacturing face wash increased by 50 percent (Kumar 2016). As the use of herbal shampoos increased by 194% for patanjali, it resulted in decreased demand for other brands such as demand for multinational companies decreased to almost 15 percent. Dabur seemed to have maintained its market share around 53%. Such a phenomenon where loyal customer of an established brand changed their buying pattern for a new brand is rare and the case of patanjali itself is one of its kind where a small company rose to such a level that MNC’s that had been established for decades were now a run for their money keeping a vigilant eye out on the movements of these new competitors. This view point of stealing the sales for other competitors became obvious in the statement made by the Indian monk “Bird of nestle is about to fly away, gates of Colgate are going to close, Leaf of patene is gone to decay”. This bold statement was seen to be made shortly after the launch of new items in its product range which gave met the needs of customers.

5.2        Unique Selling Proposition

Studying the past trend for the market we see how various multinational brands were present in the region with its roots deeply penetrating the market. These brands such as Hindustan Uniliver along with proctor and gamble were entangled with each other trying to outpace their opponent and secure greater share of the market (Kumar 2016). In such conditions many local brands were also offering their products usually in a single range which conflicted with products of these large companies but could not compete with it overall and had their base established in only certain regions (Gann and Salter 2000). Such environment allowed these companies to hold on their relative market share which showed slight changes with relative growth and decline overtime particularly due to the strategies being applied by competitors according to which they made regular changes which helped recover this share.

In this strict market most companies were enjoying adequate amount of revenue due to the large number of customers and considerable size of the market. They kept on working on their old traditional methods where strategies were updated from time to time and keener eye was kept on established competitors rather than moving focus towards growing brands (Pandey & Shah 2016). This allowed the new developing brand to work on its growth without much resistance from these competitors while it successfully overcome the market barriers.

One Main aspect which has been implemented in this company from the start allowing it to differentiate from other competitors present in this market was the induction of concept of spiritualism which had widespread fame in India. Generally, people follow spiritual gurus which give benefit to people by providing guidance. These Guru’s not only have following in India but many people throughout the world have been seen to be taking up their practices in order to experience spirituality (Rawal 2016). This led to the famous new term of marketing through spirituality where these Gurus enabled seem to be influencing buying pattern of these followers. Looking into the spirituality concept we see emphasis on maintain a balance between mind and body of a person through meditation. This meditation helps calm senses and give more control to the person. Classes relating to this practice by Ramdev allowed him to gather up large fan following who placed great trust on his teachings.

Another concept as taught by Ramdev which related to spirituality was taking up healthy products of herbal nature and asked them to boycott other products which were made from using chemicals weakening the human body. Many followers adopted this pattern of healthy living starting to search of healthy products in the market that were made from herbal materials. This gap that was generated in the market by Ramdev was one of the main factors which made creation of this company possible with its unique selling proposition. When people started searching for herbal products in the market they were unable to find products which could be regarded as purely herbal (Pandey & Shah 2016). Those which had somewhat assurance of quality were placed at a higher price tag due to which followers of these Yuvred method raising the issue. Ramdev took up this opportunity for establishing the Patanjali brand aimed at filling this market gap that had formed.

Here we see the base as to how Patanjali was able to set out its unique selling proposition which was to give products made out of herbal materials along with little or no use of chemicals that enabled it to establish strong foothold within the region (Rawal 2016). This concept of natural products was presented to customers in a unique combination that applied both ancient Indian methods gained through its heritage along with use of modern technology that would be presenting a combination of both the new and old methods. Since Patanjali started at a small scale it took time to diversify its product range and cater the needs of other market needs. Success of these brands slowly allowed it to earn considerable profits which allowed further expansion of the company’s product range.

With time the customer range increased and they placed greater trust in the brand name taking up its proposition that products being offered are not only herbal in nature but also being offered at competitive pricing. Comparing this to the products being offered by competitors, herbal products being presented by them were close to none (Gupta & Garg 2016). Small branches which they companies had maintained for producing Ayurveda products were giving out little production in comparison due to which the such demand for herbal products was not taking up much attention of other companies allowing Patanjali to seize the opportunity.

6         Beyond Borders

Entry of patanjali into the Indian FMCG market indeed disrupted the balance present by taking up customer base from various companies that were present. Unmatched growth was seen by the company which generated ample amounts of earnings through which the company was able to undergo further expanse and establish its foothold (Gupta & Garg 2016). Rapid pace at which development took place in these company shows a positive outlook towards future of the company. It still has much market to cover in the market of Indian but prospects of taking Patanjali to a global level are still in view.

6.1        Current Situation

Concept of spirituality and movement towards taking up more Yurved methods is not only present in India but has reached a global level. People all over the world who belong to various cultural backgrounds seem to be taking up this practice as it has proved calming for the mind. Adoption of this mindset would not be complete until they also utilize herbal products associated with this practice. Due to this the demand of Patanjali products is growing in several regions. Quality of patanjali products allowed it to produce demand in foreign lands due to which company is establishing an outlook towards foreign trade.

Current trade carried out is being done through partnerships with other companies which further carry out the distribution process. Aim set out in regard for foreign export is to promote India as a source hub whose products will move overseas (Gupta & Garg 2016).  Demand for Patanjali products is already high at domestic level and current suppliers are struggling for finding some way through which more effectively products can be spread out in the market. Management of the company realizes this fact that hardly meeting domestic demand will not make it possible for them to meet demands at a global level and calls for expansion of their manufacturing plant. Recognizing this need, the company invest large amount of capital crossing 1000 crore construction of a manufacturing plant in South India which is expected to immensely increase manufacturing capabilities which would be adequate to meet international demand.

Currently no strategy is being applied for directly selling products to foreign countries but deals with the help of intermediaries such as traders or through electronic methods such as patanjali website. Role of a disruptor in the Indian market was seen clearly which the company boasts of with pride but the question remains whether it will be able to play the same role at an international level (Pandey & Shah 2016). When moving products to another company several obligations have to be fulfilled such as filing nature of the products along with meeting some quality criteria’s. State of the art labs as possessed by patanjali hold potential to manufacture products which can compete in quality with other brands.

6.2        Future Outlook

Success of the products made by an Indian brand on international market would possess somewhat a challenge as the globally established MNC’s are aware of the strategies being applied. Main target market which could be captured by going beyond borders include people who believe in benefits of herbal products. One main competitive edge which the company was able to maintain is its pricing factor which they maintained at significant difference with the nearest competitor. If the company is able to use the same prices at an international level, then fame of the company is bound to increase and would generate demand at the international market (Pandey & Shah 2016). Some serious barriers may have to be dealt with before reaching success such as trade regulations and resistance from foreign governments but surpassing this will hold bright future for the company.

7         Porters Five Forces

Five forces which effect a company as stated by porter include the buying power of buyers and suppliers, competition present in the market, threat of substitutes and new entrants (Jaggi & Gosh 2017). Study of these forces will help us understand various constraints that are being put on Patanjali by external forces.

7.1        Buyers

Studying the industry of fast moving consumer goods, we have already mentioned the strict type of competition that companies have to face along with large variety of products that are usually catered by these companies (Gupta 2016). Competition is present from several sides such as the products being imported, products being produced by multinational corporations that are sold evenly throughout the country and relatively smaller competitors present occupying small regions in unique product but seriously affect sales of the company. In such kind of environment, the buyers have large variety of products to choose from at an affordable range particularly because the tough competition does not allow prices to exceed certain range. Digital revolution in the age of information has made it quite easy to spread knowledge through various sources eventually leading to more informed buyers.

Customers can look up any product they want on the internet and study its pros and cons. Several websites give the option of posting review through which users of products can easily share their experience. Through this the customers can gain insight regards various features of the product before making their buying decision (Jaggi & Gosh 2017). Companies excessively shower their customers with various promotional offers which serve different aims such as attracting new customers towards the company or just to get rid of old stock. Such offers can event tempt loyal customers to try something new. In this condition the power of buyers is strong as they have large variety to choose from due to which greater emphasis has to be put in this area.

7.2        Suppliers

India is a large country where abundant amount of natural resources is present. Due to this it is not hard for finding various suppliers that can provide any material needed (Kumar & Jain 2014). Company can also adopt the principles of backward integration where it sets up its own supplier of raw material which not only helps to decrease cost but provides greater assurance on quality of materials being received. In case a supplier fails to meet the required criteria or some other issue comes up then it is not hard to make a switch form one supplier to the other. Patanjali has been able to maintain lower pricing because it claims to have established strong relation with its suppliers due to which they provide fresh materials at wholesale rate (Gupta 2016). Due to this reason the force as exerted by suppliers on the company is low particularly due to larger number of options present in the region along with option of setting up its own supply line that would greatly help to reduce costs. Current suppliers seem to be meeting demands as the herbal products being produced have so far been able to keep up their reputation as being chemical free and without harmful side effects.

7.3        Substitutes

Substitutes are available for several materials being sold by the company which allows customers to avail the option which most suitably meets their needs. Current substitutes are not the only constraints but possibility of new substitute being introduced is also high that would seriously effect sales of the company. Patanjali itself used the strategy of substitute product which allowed it to successfully enter the market. It produced herbal alternatives for the products that were already present in the market such as shampoo, tooth paste, facewash etc. (Kumar 2016). Customer seemed to be anxious for such products and readily took them up when they found a trustworthy brand. Although patanjali used this in its own entry strategy which worked out well but now it faces the threats of substitutes which may replace its current products. This threat is more strongly being exerted by other companies which have been formed on the concept of Yuvred as they have been in this nature of product line for almost equal amount of time along with other large brands that seem to be taking up this new business approach as presented by patanjali. Therefore, threat of substitutes is high in the market (Gupta & Garg 2016).

7.4        Competition

Indian market was always attractive for companies since ancient times due to natural resources present in the area along with large number of consumer market. Due to this several businesses flocked towards this region and hold their certain market share from which they are taking benefit. Innovative strategies are being applied day by day in order to make an attempt of stealing customers from other brands (Rawal 2016). Larger companies such as HUL and P&G have been seen to constantly applying aggressive strategies in order to increase their revenues. In such type of market situation where large number of competitors are present along greater price sensitivity, it is considered as a delicate portion as to how the company will differentiate itself form its competitors. Patanjali was able to offer its unique selling proposition and attend to an underlying market need due to which it was able to establish a foothold. Now the competitors are coming back by revising their strategies and taking up new practices due to which competition being faced by the company is immense (Gupta & Garg 2016). Current competitive advantage which patanjali has been able to maintain is because of low pricing but maintaining this difference in the long run may be difficult as compromise on quality will make customers switch towards alternative companies affecting brand name.

7.5        New Entrants

Entry of more companies in the market lead to greater supply of products due to which the pricing is expected to decrease. Established brands tend to keep an eye on other emerging brands to make sure they do not grow out of reach. FMCG market is technologically developed with several innovative ideas being merged into it (Pandey & Shah 2016). Such innovative approach was also seen in the business model for patanjali due to which the company holds a more modern aspect. New companies that would want to enter this market need to carry out extensive amount of research and development activity in order to compete with these established brands. India holds a large consumer market providing ample amount of opportunities but wide geographic distribution and overall infrastructure makes it hard for the company to reach all business segments. Spending money on a distribution network is a costly process which most new companies cannot take up. Government policies and regulations have proved an important hurdle for the development of new companies. Such types of issues with government authorities makes it hard to get settled in the market. Food development industry is a separate government wing which sets out criteria according to which manufacturing process is to be carried out. Getting approval for carrying out manufacturing process and maintaining meeting this criterion set out makes it hard for the new companies (Rawal 2016). Therefore, patanjali does not have considerable worry relating to threat posed by new entrants and seems to be more concerned about dealing with current competitors.

8         Issues

Although entry of Patanjali in the market was seen as a swift advance but now the market disruptor is feeling push back from the established brand who have been at the chalk board evaluating their business model and ready to pounce back. Not only are these competitors presenting an issue but various other internal and external factors have added difficulties being faced. Following are the main problems being faced by the company:

• Competitive pricing has enabled the company to set itself apart in many areas such as its toothpaste but some products have been found to be priced at a value greater than its competitors (Kapferer 2012)
• Corporate structure of patanjali was kept simple at its beginning as no immediate need was present as such to hire executive which demand greater salaries but now since the company has undertaken great expansion, greater demand in markets requires that they revise management structure and incorporate more professionals into the management team
• Weak distribution structure which the company held previously made it difficult to ensure availability of products in all regions due to which large part of market demand is still unmet
• Rural areas seem to be more receptive towards yurvedic products but weak network makes it hard to ensure availability of products in rural areas and little promotional activity is being carried out at such localities
• Issues relating to product expansion such as the case of noodle product where regulatory authorities banned the company from producing noodles claiming it did not have registered manufacturing rights for such products due to which the company had to adopt a more careful approach when taking up manufacture of other food products
• Political interference is becoming a major hurdle in expansion of the company especially due to the ban being imposed by regulatory authorities
• Controversies arise relating to the company which were mostly fueled by competitors such as the tax rebate being given to patanjali for being an international brand forced various MNC’s to raise question that how will they be able to compete in such conditions where they are given precedence
• Questions have been raised regarding the quality of patanjali products from time to time where it was seen that failure of few products to pass quality test was widely mentioned through the media
• Concept of Ayurved products helped the company to sling itself in the market where it now holds an important portion as established companies did not follow such model but other small companies which had also operated on Ayurved principles are now growing steadily and presenting competition for the company
• Recent slowdown seen in the economy is likely to have an effect on FMCG markets which would also result in decreased sales for Patanjali

9         Recommendations

9.1        Covering Rural Areas

Rural areas are seen to be working with more traditional values mostly due to lack of informational reach and education. Rural population also presents a suitable target market as their buying power may be low but seeing their needs being fulfilled at a small price as compared to competitors will definitely encourage them to try these products (Raizada 2016). Since these villagers seem to favor the traditional methods therefore finding out that Patanjali is using old herbal methods in combination of new technology would definitely encourage them to buy these products. Local suppliers should be motivated to take up patanjali products and sell them at local stores in these villages. Traditional advertisements techniques can be applied for reaching out to these people and informing them about the products being sold.

9.2        Research & Development

An important factor which contributed to the success of patanjali brand is the implementation of modern machinery in its production process along with forming state of the art plant that would ensure quality up to the standard level (Pandey & Shah 2016). However, this initiation is not enough as for ensuring survival in the long run the company needs to ensure that it will remain at a competitive edge against other companies. State of the art manufacturing plant gives ample opportunity for promotion of such activities where the company can be allocating funding and resources for development of new products along with increasing the quality for existing products.

9.3        Promoting Exports

Since patanjali has proved its place within the market of India now they should expand their reach beyond national boundaries and explore global markets to identify areas where demand is present. Company should move away from third party selling and present itself directly to international customers. For this head offices and retail stores should be opened at key localities where demand is growing such as south Asian countries and the Middle East (Telles & Yadav 2013). Promoting concept of India made products, the company would only need to set up stores at various localities which would be supplied Patanjali products exported from India. Online base would require improvement so that more detailed view can be given regarding product range making it more convenient for international distributors to bring in products required in their locality.

9.4        Qualified Management

Previous composition of management team may have worked out due to the small scale at which the company had started its operations but now catering such huge demand present in the market would require greater team of professionals. In order to take care of growing needs the company needs look for qualified individuals and groom them further so they can pioneer the company into greater profitability. Local graduates can be taken on board as lower employees to work basic operations while professionals may be needed form foreign countries as they can formulate more effective strategies which will help the company while competing in global markets (Telles & Yadav 2013). Company structure would also need revision so that widespread network does not leave blind spots where error could occur.

10    Conclusion

India is considered a developing company yet rapid advancements are being made in various economic areas therefore increasing buying power of people due to which it has been considered an attractive global market particularly due to the large number of buyers present in the region.  Number of companies have operated in this region using up their international business model and made considerable revenue operating for several decades. Recent economic developments that have been made in the region did not remain limited to individuals but also took place at a corporate level. Patanjali Ayurved Limited commonly referred to as Patanjali is an Indian company which comes under the category of fast moving consumer goods selling products which are pre-packed and ready to be sold. Foundation of the company was laid down in the year 2006 after which it seen remarkable growth and seems to be on the rise after twelve years of its creation. Before its official creation the origin can be seen as a small pharmacy but Ramdev played a key role in its spreading its fame. It started off with a morning show here Ramdev gave yoga classes asking viewers to follow his steps and encouraged them to take up a healthy lifestyle and give up products which contained chemicals which are harmful for health. Main value proposal as submitted by the company was making pure products through herbal materials.

These herbs were claimed to brought form the Himalayas and did not carry side effects. Diversification strategy has been applied continuously in order to expand the reach into various market segments. Development of product is taking place through the combination of ancient Ayurvedic methods combined with latest technology in order to attain a product as a combination of old and new. Pricing strategy as applied by the company is skimming and penetration where expenses are tried to be kept at a minimal so that final market price can be set at an attractive value bringing in the most customers. Pricing strategies are applied are various levels where premium products are being priced greater than its competitors as they have established image in the market as being a product of adequate quality. Increasing demand for products made it hard to manage the distribution channel and current outlets failed to cope with the increasing demand due to which contract groups who would be carrying out this distribution function. Main factor which played a key role in making establishment of this company possible which is promotion of yoga trend which started with yogic classes at a morning show back in 2002.

Process of awakening the users proved to be successful and customers became more aware regarding the products that they use. Main theme which is being promoted is to wage war against the multinational corporations which have established themselves within the nation. Perception is being created that these companies are selling products at a price which is far greater as compared to expense therefore they are earning profit unjustly.

Major changes that were brought about by the company in this area include increased emphasis on making herbal products, maintaining prices at a competitive level and adoption of principle that relate to corporate social responsibility. Need was recognized as people failed to find herbal products which were reliable or within an affordable range. Products were designed in such an orientation that they could directly cater the needs of current gap present. Herbal products later launched were either at par or at a discounted price as compared to competitors. Companies present in the market of India which were previously catering the need for various products include Hindustan Uniliver, Dabur, Britannia, Proctor & Gamble, nestle etc. which had dominated the market for decades in the category of FMFG sector.

Initial entry made by the company had taken market by surprise but now the business strategy has forced competitors to change their product nature which they are carrying out properly which has led to somewhat comeback. Patanjali is referred as a disruptive force because it took various MNC’s by surprise and stole its market share. Disruptive force in the market forces other brands to revise these strategies so that they can cope with the forces present. Brand set by the company is one of its kind particularly due to the strong combination of positive brand image along with competitive pricing which allowed it to form this disruptive force in the market bringing various strong companies out of their comfort zone and had them running again rethinking their strategies. Main aspect which has been implemented in this company from the start allowing it to differentiate from other competitors present in this market was the induction of concept of spiritualism which had widespread fame in India. Gap that was generated in the market by Ramdev was one of the main factors which made creation of this company possible with its unique selling proposition. When people started searching for herbal products in the market they were unable to find products which could be regarded as purely herbal.

Current trade carried out is being done through partnerships with other companies which further carry out the distribution process. Aim set out in regard for foreign export is to promote India as a source hub whose products will move overseas.  Demand for Patanjali products is already high at domestic level and current suppliers are struggling for finding some way through which more effectively products can be spread out in the market. Management of the company realizes this fact that hardly meeting domestic demand will not make it possible for them to meet demands at a global level and calls for expansion of their manufacturing plant. For ensuring survival in long run the company needs to ensure that it will remain at a competitive edge against other companies.

State of the art manufacturing plant gives ample opportunity for promotion of such activities where the company can be allocating funding and resources for development of new products. Villagers seem to favor the traditional methods therefore finding out that Patanjali is using old herbal methods in combination of new technology would definitely encourage them to buy these products. Local suppliers should be motivated to take up patanjali products and sell them at local stores in these villages. They should expand their reach beyond national boundaries and explore global markets to identify areas where demand is present. Company should move away from third party selling and present itself directly to international customers. For this head offices and retail stores should be opened at key localities where demand is growing such as south Asian countries and the Middle East.

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