Case Study 1
Case Study 1
Case Study 1
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Procedia - Social and Behavioral Sciences 133 (2014) 481 490
ICTMS-2013
Abstract
Marketing through spirituality has become a significant topic of discussion as it affects the consumption behavior of
people. Therefore, spiritual organizations are launching and selling their own products for the customers to capture
the market. Here, in this study, yoga and pranayam are considered as the dimensions of spirituality and it is observed
that people generally rely on a spiritual guru for performing yoga and pranayam. Swami Ramdevji is the most famous
guru in teaching yoga and pranayam in India and he, through Patanjali Yogpeeth, has launched several products not
only based on ayurvedic medicines but also on FMCG. Hence, this paper talks about marketing through spirituality
through the case study and success story of Patanjali Yogpeeth. The research uses a qualitative approach to collect
data from various officials of Patanjali Yogpeeth through unstructured face-to-face interviews. The study revealed
that yoga and pranayam are very effective tools in marketing through spirituality and influence the consumption
behavior of masses. Patanjali Yogpeeth is best suited example to study the present topic.
2014 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
1. Introduction
The word spirituality evolved from the Latin word spiritus, which means breath - the breath of life.
After exhaustive review on definition of spirituality, Kale defined spirituality as, An individuals
endeavors to explore and, deeply and meaningfully connect ones inner self to the known world and
beyond (Kale, 2006). This definition revealed that every human being desires two things whether
consciously aware of them or not; first, to feel a connection to something greater than oneself and second,
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Corresponding Author, Tel.: +91-963-930-0292.
E-mail address: [email protected].
1877-0428 2014 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Selection and peer-review under responsibility of the Organizing Committee of ICTMS-2013.
doi:10.1016/j.sbspro.2014.04.215
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to be able to benefit other people and the world around him. Sometimes, it is believed that spirituality and
religion are same, but it should be noted that spirituality and religion are two different terms and treated as
two different constructs in studies carried out in past (Standifer et al., 2010). However, spirituality has
been discussed by considering dimension of yoga and pranayam into it (Corner, 2009). The word Yoga
has been derived from a Sanskrit word yuj, which means to achieve the goal of salvation through
physical and mental balance (Varambally and Gangadhar, 2012). On one hand, yoga helps in
strengthening body and mind, but on the other hand, it is also a business and results in change of
consumption behavior of people (Moran, 2006).
Generally, people choose some spiritual guru for practicing yoga therefore the spiritual gurus have
their own importance in India. Millions of people, not only from India but also from foreign countries, are
following the spiritual gurus for spiritual enlightenment. Spiritual gurus are not only changing behavior of
mass population but also resulting in changing consumption behavior (Warrier, 2003). Marketing through
spirituality also deals with change in consumption behavior due to spirituality (Kale, 2006). Here, in the
present paper, first of all, the conceptual relation of spirituality and marketing is studied through review
of literature and the methodology of the present study is stated. Secondly, the case study of Patanjali
Yogpeeth is considered and huge base of the organization is revealed in its introduction. Thirdly, on the
basis of discussions with various officials of Patanjali, various activities related to marketing practices
and strategies of the Patanjali Yogpeeth are discussed in detail. Finally, the results are illustrated in the
form of SWOT analysis of Patanjali Yogpeeth and paper concludes with a brief discussion in the end.
2. Literature review
Many authors have contributed to the field of spirituality and most of them have enriched the field of
spirituality in relation to leadership and entrepreneurship (Herriott et al., 2009). Even the spirituality has
been discussed from the viewpoint of workplace spirituality or spiritual business (Case and Gosling,
2010). But it should be noted that there is very less number of researches on the topic of marketing
through spirituality and there is a dearth of literature on this topic (Kale, 2006). However, some of the
authors have carried out studies on the subject of marketing and spiritual tourism (Haq et al., 2008; Haq
and Wong, 2011).
As far as literature on marketing through spirituality is concerned, Standifer et al. (2010) took a
broader study on comparing the cross cultural organizations of US and China through the influence of
spirituality on buyer behavior in business to business (B2B) relationship marketing and observed that
spirituality is an important dimension in differentiating the cross cultural organization through dimensions
of spirituality. Again this study more or less is based on the workplace at spirituality.
However, Mercer (2006), in his study, talked about marketing through spirituality in USA by targeting
children. He not only discusses the parents worry for spiritualism in children, but also observed that the
various companies are offering products for spiritual development of children through offline and online
retail modes. This study considered the products based on spirituality but did not consider the desired
perspective of selling products through yoga and spirituality. Kale (2006) supported this view and
reported in his conceptual study that spirituality is a big business. The consumers usually get attracted to
spirituality and this spiritual behavior also affects the buying behavior of the consumers. Therefore, there
is need to study change in consumption patterns of consumers due to spiritual beliefs (Kale, 2006).
3. Methodology
The present study is a qualitative research and focuses on the case study of Patanjali Yogpeeth. The
data is collected from primary and secondary sources. Firstly, primary data is collected through various
unstructured face-to-face interviews with academicians, doctors and managers of Patanjali Yogpeeth. A
total of six officials are consulted and each interview lasted for one to two hours to record underlying facts
Vinod Kumar et al. / Procedia - Social and Behavioral Sciences 133 (2014) 481 490
about the organization. Secondly, secondary data is collected through brochures, leaflets, website, etc. of
the Patanjali Yogpeeth. The data collected through various discussions and sources is thoroughly analyzed
to extract the relevant information out of that.
4. Case of Patanjali Yogpeeth
4.1 About Patanjali Yogpeeth - Divya Yog Mandir (Trust)
Patanjali Yogpeeth in Haridwar, Uttarakhand is one of the largest Yoga institutes in India and named
after the ancient Yog Guru Patanjali. The institute is flagship project of Swami Ramdevji Maharaj and
Acharya Balkrishnaji Maharaj and has been set up not only for treatment, research and development in
Yoga and Ayurveda, but also for the manufacturing of ayurvedic medicines. It is located on the HaridwarDelhi highway at Kankhal, Haridwar. Patanjali Yogpeeth is an institution for scientific research and
treatment which offers treatments for all. The ambiance of Patanjali Yogpeeth is world class. It has been
constructed in almost 100 acres and designed to have buildings, car parks, and a landscape to rival the best
of Delhi's housing projects. A team of over 200 qualified doctors have been trained and are already
attending to over 2500 patients daily. Free consultation is being done for all patients as well as medicines
are made available to economically weaker persons at concessional rates.
Patanjali Yogpeeth has already brought a health revolution in the country with the integrated approach
of Yoga and Ayurveda. Besides this, the boundaries of the organization have also crossed the national
boundaries in USA, UK, Canada, Nepal, etc. All these Trusts are devoted day and night to propagate and
implement the noble and sublime aspects of Indian culture the philosophy and teachings of Vedas,
Upanisads, etc. along with Yoga and Ayurveda.
Patanjali Yogpeeth has been constructed in two phases and their infrastructural facilities include:
4.1.1 Patanjali Yogpeeth - Phase-I
This is a very important part of infrastructure of Patanjali Yogpeeth and inaugurated on 6th April,
2006. The vast infrastructure includes:
x An OPD for free medical consultation to six to ten thousand patients and IPD of one thousand beds
x Facilities for test investigations of pathology, radiology, cardiology, etc. by ultra - modern machines,
along with Panchkarma and Satkarma
x Yog Research Department equipped with the latest machines for establishing Yoga on the criteria of
modern medicine
x Free Yoga classes by Yoga teachers (each for 1-hour duration)
x Free Ayurveda and Yoga therapeutic consultation by well - trained Vaidyas
x An elegant Yajna is performed daily on Vedic and scientific tradition.
x Panchkarma-Chikitsa, Satkarma Chikitsa, salya (surgical) Chikitsa eksara-sutra, karnabhedana,
agnikarma, dental and eye treatment services available at the lowest cost
x High quality ayurvedic medicines manufactured Patanjali Pathological Laboratory and Research
Centre by Divya Pharmacy is available at the lowest price
x Books, VCD/DVD, MP3 , Audio CD are also available
x Facilities of library and reading room, along with a cyber cafe, are available
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In order to know exactly the reason for success of Baba Ramdev, it is imperative to throw some light
on the marketing mix rudiments. To be a successful marketer it is important that all the marketing mix
elements have to be fine tuned to support and strengthen brand personality.
5.4 Product strategy
5.4.1 Pranayam and Yoga: A Package for Various Diseases
Swami Ramdev's Divya Medicines are claimed to be one hundred percent natural, made from potent
herbs available in the Himalayas, with no or very little side effects. They have proven extremely effective
for combating all forms of sickness and disease. Along with these medicines, Swamiji recommends
patients to also adopt the practice of pranayam, which will strengthen the immune system and quicken the
healing process. Ramdev Baba opines that pranayam and yoga are the complete Ancient Indian Therapy,
which is a Medical Science in itself that cures any physical or mental medical condition completely,
without any side effects. Swami Ramdev has proved and declared on Indian and International TV
Channels, pranayam and yoga is the complete natural cure for all physical and mental ailments. But if
medicines are required they are also available and these packages of medicines are available at a very low
cost. The medicines can cure all the diseases from a simple cold to cancer. In a bid to promote ayurveda,
Swami Ramdev's Trust has tied up with 600 qualified ayurvedic practitioners who are offering treatment
to masses for a variety of diseases, some of them termed incurable by the modern system.
5.4.2 FMCG Products
Patanjali has also introduced FMCG products to diversify in the market. Indian FMCG market is a
market which has a very wide range of customers. There are many competitors in all the categories and
although they all have similar products available at almost similar prices, Patanjali is trying to prove it
different through their marketing strategies. However, entry to this business is easy (low entry barriers)
and this fact has been utilized very efficiently to result in combined benefit for both Patanjali and the
consumers.
Table-1: Patanjali Vs Other Brands
Product
Brands of Patanjali
Sharbat/ Squash
Amla, Bel, Brahmi, Gulab, Keshar Badam, Orange,
Nimbu, Mango
Juice
Jam
Salt
Chyawanaprash
Flour
Candy
Washing Powder
As seen from the above Table, the major products of the Patanjali Food Park are sharbat (Juice
concentrates), jam, salt, chyawanaprash, flour candy, washing powder, etc. The advantage with all these
products is that these are made of natural products and dont have any side effects at all. But as there are
so many players existing in the market, that Patanjali products have a tough competition to face with.
Vinod Kumar et al. / Procedia - Social and Behavioral Sciences 133 (2014) 481 490
Overall, product/market strategy of the Patanjali group can be understood through Ansoffs Matrix
(Ansoff, 1957) as shown in Figure-1 below. Ansoffs matrix, despite of being more than fifty year old
marketing tool, still has a great contributor to understand the diversification strategy of the organization
(Richardson and Evans, 2007). It can be clearly understood from the matrix that Patanjali Yogpeeth is
diversifying itself from ayurvedic medicine to FMCG products.
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Park Limited as processing cost and the rest is sent to the village. Some amount is distributed to the
people as a price of cows urine, rest is used for the development of the village like establishing necessary
infrastructure, building schools etc. The Patanjali Mega Food Park (PMFP) has been envisaged to help in
creation of enabling infrastructure for food processing and a comprehensive farm-to-plate supply chain
system. The initiative aims to seek maximum value addition by backward as well as forward integration
between the farmers, factory and the market. It can be said that the supply chain doesnt have any
intermediary in between but rather its a direct from supplier to producer to consumer. This also helps in
reducing the cost because it avoids the unnecessary commission cost and other related charges of the
intermediaries.
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Broadly speaking, the promotional marketing strategy of Patanjali Yogpeeth includes the following:
x The most important promotional activity involves yoga campaign by Baba Ramdev and the Patanjali
trust.
x Advertising through business journals and newspapers in India and abroad with the help of an
advertising agency.
x The company has established a web site in the internet. This will ensure international visibility and
marketing.
x Group regularly interacts to industry and business associations.
x Group also has interaction with foreign embassies/trade counsels in India.
x They are also bringing out attractive brochures and other literature with the help of advertising agency.
6. SWOT analysis of Patanjali Yogpeeth
The SWOT Analysis of the Patanjali Yogpeeth is explained as follows.
6.1 Strengths:
Natural products without any kind of side effects
Innovative use of spirituality
Presence of established distribution networks in urban areas
Solid base and image of the trust
Social Responsibility to make people healthy
6.2 Weaknesses:
Strong competitors and availability of substitute products
Low exports levels
High price of some products
Absence of established distribution networks in rural areas
Very less promotional activities
6.3 Opportunities:
Large domestic market over a billion populations
Untapped rural market
Changing lifestyles and rising income levels, i.e. increasing per capita income of consumers
Export potential and tax and duty benefits for setting exports units
6.4 Threats:
Political interference
Controversy created by other groups regarding Patanjali products
Removal of import restrictions resulting in replacing of domestic brands
Temporary Slowdown in Economy can have an impact on FMCG Industry
7. Conclusion
Most of the people believe in doing good and become spiritual. It has also been found in the past that
spirituality affects the buying behavior of the people (Standifer et al., 2010). Spiritual gurus make use of
up to date media to stay connected to their devotees and also impact their consumption behavior (Warrier,
2003). As far as Patanjali Yogpeeth is concerned, Baba Ramdevji has also influenced life of many with
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pranayam and yoga, though this influence is for welfare of people. Therefore, within a very short span of
time, Patanjali has made a huge success and become well known not only at national but also at
international level. Swami Ramdevji has emphasized on pranayam and yoga dimensions of spirituality to
target the mass population worldwide. Patanjali Yogpeeth is fully utilizing this spiritual competitive
advantage, created by Swami Ramdevji, to sell its own products in the market. Patanjali Yogpeeth is not
only selling its ayurvedic medicines, but also diversifying itself through selling of FMCG products.
Moreover, the organization is engaged in various good activities which are of great benefit to the society.
It is trying to imbibe good character in masses with good health through yoga and ayurveda. Hence, it can
be said that Patanjali Yogpeeth has succeeded in creating a positive image through spirituality and using
it to sell the products in the market.
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