The very famous Patanjali Ayurved Limited company is an India based consumer goods provider. the company has its manufacturing units. The company is headquartered in industrial area of India, Uttarakhand. Its registered office is located in Delhi. Patanjali has made its name in manufacturing of herbal and mineral products. Patanjali is one of the fastest growing company in FMCG in India according to HSBC and CLSA (Patanjali, 2020).
The Ansoff Matrix is one of the major tools in marketing for business to determine the market and product growth. This model suggests business different attempts towards growth which depends on the existing product and markets and new markets. Companies can easily identify different growth strategies from there. Here is the Ansoff matrix of Patanjali Ayurved.
Market Penetration
Market penetration is an important growth factor which targets the existing product in existing market. This strategy brings the growth in company for long term. Patanjali has penetrated in the Indian market with its existing products by increasing the sales. The company uses different promotional and marketing techniques to increase the number of sales of the products. For example, Ghee, Honey, aloe vera, Badampak, etc are the great example of this. Patanjali reformulate its products to attract more consumers. It invested more in its R&D so that it can take advantage of existing loyal customers. Moreover, Patanjali introduced loyalty schemes to gain more recognition among existing markets. This helps the company in gaining more loyal customers and increase the sales of the company. Patanjali has made its name by product extension strategy, so that wide range of customers will buy their required version. (Rajput, 2016).
Product Development
Product Development in the Ansoff matrix deals with new product introduced by the company for the existing market. The development of new product with new characteristics will bring additional benefits in the company and for the consumers too. It may involve the product modification or new presentation of the product. It also involves the formulation of completely different product which defined consumers need and wants. Patanjali took this factor seriously and introduced the new modified product Aloevera (4) with orange and fibres added. This was the new version of the existing product for the existing market. Moreover, it extended it range in Amla, Mango Panna, Tulsi, thandai etc for the consumers. The company at this point decided to attract new customers or retain existing customers with the product extension and reformulation strategy. This help the company and its sales were increased (Jha, 2016).
Market Development
Market development in the Ansoff model reflects the company’s search for new markets for the existing products. The company cannot increase its sales and achieve market growth only by operating in the existing markets where it started. It needs to identify new markets where new customers are willing to buy the products of the company. As being the FMCG company, Patanjali has to operate in different rural and urban markets to increase the customer base. Patanjali successfully found a new market and forum for the existing and new consumers, Internet. The company started to offer online services to its customers which was a great initiative. Moreover, it started to distribute its products in different supermarkets. The company also started to do aggressive endorsement by sponsoring in different events. It distributes its food items in food parks (Aggarwal, 2018).
Diversification
Ansoff matrix consider diversification as an important strategy towards growth for the companies. It deals in attracting new markets with completely new products by the company. This helps in mitigating the risk of loss and failure for the company. The company will be able to diversify the risk factor to larger proportion of products. Patanjali adopt this strategy. It diversified itself into Cosmetic industry, healthy drinks, and chocolates. It introduced some weight loss products and attract many new customers. The cosmetic industry is highly profitable, and many consumers prefer best products in reasonable prices. Hence, the female consumer base increased because of this. It started to produce healthy drinks for the better living and attract health conscious market (Jha, 2016).
References
Aggarwal, D. 2018. Strategies of Patanjali of Marketing. [Online], Available at: https://www.slideshare.net/DevanshAggarwal4/strategies-of-patanjali-of-marketing, [Accessed on: 13th January, 2020].
Jha, M. 2016. A voyage from niche to mass marketing: A case study of Patanjali Ayurveda. [Online], Available at: file:///C:/Users/CC/Dropbox/Business%20Law/1-6-42-497.pdf, [Accessed on: 13th January, 2020].
Patanjali, 2020. About us. [Online], Available at: https://www.patanjaliayurved.net/about, [Accessed on: 13th January, 2020].
Rajput, A. 2016. Patanjali- The great Indian Company. [Online], Available at: https://www.slideshare.net/Ashishrajput41/patanjali-the-great-indian-company, [Accessed on: 13th January, 2020].