Bharath Prabhuswamy

Managerial Communication
S17MMMMM00694

Unraveling Patanjalis runaway success: A miracle or

textbook economics
Within a span of few years, Patanjali has become a household name with high demand for their products
in FMCG market. Their growth is significant through last couple of years with strong sales however we
should look deeper to elucidate on their success. Commented [BP1]: You may want to break sentence
from However..
The market was in stasis with only new products droppings in from listed FMCG companies. Commented [BP2R1]: Do you want to reduce article to
Patanjali debuted the market place as a brand presenting itself as a disrupter and a game changer with 400 words? its 433 now..
reduced prices and swadeshi products motif. To bring into the context, the FMCG firms focused on scoring
critical wins in certain segments. On the contrary, Patanjalis strategized towards building a brand catering
to all needs and producing goods in all segments. Commented [BP3]: A very nice para.. Claim, premises &
data all exists..
Patanjali has progressively embraced modern practices of MNCs with the help of strategic
agreements, to gain significant penetration in the market. These practices have helped the products to
achieve larger distribution. Patanjalis faade as a pure Swadeshi company adhering to desi or traditional
practices is more in the minds of the consumers than in reality. Also, Patanjali brand has significantly leaned
on the public image of Baba Ramdev and the perception of his principles. His promotion of desi practices
has influenced people to believe Patanjali products are sourced within the country, although it is not the
case for few chemical ingredients used in their products. Commented [BP4]: A very going point.. you may also
need to add supporting data.
Furthermore Patanjali products are not matching the accepted standards for quality. This a
concerning factor if Patanjali has not maintained the consistency and industry standards for quality in the
products that are being manufactured. Commented [BP5]: Do we really need "Accepted" word
before standard?
Finally, Patanjali has shown significant financially growth with almost twice total sales in FY 2016-
17 but it has not cut the mustard to become one among the big players such as Unilever or Nestle.
Considering the organizational structure of Patanjali, the financial backing by private investors and the
niche as a swadeshi enterprise, It only appears Patanjali is still riding on its initial success curve and it may
bottom out eventually in the near future. Commented [BP6]: Good point.. I couldn't understand
meaning or relation of text book economics.

Not a comment on AW writing.. title looks attractive.. you

may want to elaborate on text book economics.

Another thought came is if backed by data of successfully

running an organisation for more than 20 years & last 2
years shown growth of 55% then.. why text book
economics?
Pivots
1. Market Penetration + Distribution - How well the products have penetrated? How
muchDistribution has the products achieved?
2. Brand Image What is the impact of Customer Tastes and Preferences due to the brand name,
image, marketing, influential members, influence by opinion/sentiments?
3. Market Weariness Was the market freshness exhausted? Was there an urge for change?
4. Political / Social Background What are the socio political influences on the market? Commented [BP7]: How do we view Pivots? I mean
what's the rationale for having numbered point Pivots at
the end?