PRESENTED BY-Shaivi KharbikarSekhar ChoushuryAshish OtwalNaman ShrivastavaBinay MohantyAbu Zafar

INTRODUCTIONMost popular is Patanjali, . Located in the industrial area of Haridwar.variety of products not only medicinal but also FMCG.PAL has a three-tier distribution system consisting of clinics, wellness centers, and non-medicine outlets to retail 800 products. The gross revenue figures for FY16, ₹5,000 cr. Over FY12‐15, Patanjali registered revenue CAGR of 64.7%.VISION- The concept for forming this Company was to link the rising destiny of millions of rural masses on the one hand and many more suffering and leading unhealthy urban lifestyle on the other.

PRODUCT PORTFOLIO

Site updated yesterday*****

sachet

Power-vitaCow milk

powder

PRODUCT DEVELOPMENT PHILOSOPHY “Developing challenging ayurvedic products and being available in

every segment.”

THE SEGMENT, THE MARKET POTENTIAL OF THE SEGMENT LATENT POTENTIAL OF THE SEGMENT. Patanjali has targeted several segments of the population on the basis of age, preference and lifestyle.

Product segment- Potential----------------------------- Latent potential (1) Personal Care(a)Hair Care- 11,760 Cr ---------------------------powder hair dye, hair gel, hair syrum(b) Skin Care- 3,216 Cr-----------------------------men’s cream, shaving gel, shower gel, Deo(c) Oral Care- 9,360 Cr------------------------------ mouth wash, (2) Medicine- 66,000 Cr (3) Grocery – 3500 Cr------------------------------- cakes, wafers, chocolate sauce(4) Nutrients and Supplements- 4,800 Cr--------- jelly

MARKET COVERAGE

 I. THE SIZE AND GROWTH POTENTIAL OF EACH SEGMENTS.no. Segments Market Size Patanjali Market Share

1. Nutrition & Supplements(Ghee, Honey, Chawanprash)

5100 Cr 1530Cr (30%)

2. Grocery(Cornflake, Instant Noodles, Oats)

3500 Cr 67.55 Cr (19.23%)

3. Medicine 66000 Cr 12000 Cr (18.18%)

4. Homecare 5200 Cr NA

5. Personal Care    

i Hair Care 11760 Cr 1058.4 Cr (9%)

ii Oral Care 9360 Cr 842.4 Cr (26%)

iii Skin care 3216 Cr 241.2 cr (7.5%)

6. Heath Care 33600 Cr NA

II. THE SINGLE SEGMENT CONCENTRATION: Personal care segment comprises of largest revenue potential in Product Portfolio after medicine segment and growing at a rapid rate as well.  Patanjali Ayurved injects new life into herbal market, helps rivals sell more personal care products  Benefits:-Patanjali attributes its success to consumer shift from non-Ayurvedic brands owned by multinationals to Indian herbal companiesIts products provide price competiveness compression to competitors with the advantage of being Indian Ayurvedic/herbal companies

III. THE SELECTIVE SPECIALIZATION: - Dental Care-   Prime ingredients to protect the power of gums, great protection, remove bacteria, refresh the gums, roots out all the dental problems It has gathered a 4.5% market share in the toothpaste segment, a report by Kotak Institutional Equities.

Patanjali Ayurved is beefing up its main toothpaste brand, Dant Kanti, with variants like medicated, advance and junior.

IV. PRODUCT SPECIALIZATION: - Tooth paste product variant i.e. Dant Kanti as it is one of the product which is experiencing massive hike in sales.

The herbal toothpaste, claimed to be prepared by using traditional herbs, posted sales of Rs 425 crore in 2015-16.

some more products having a key role in company’s revenue hike-

Product specialization promises strong recognition of customer within the product areas.(For Example- Patanjali came up with a Junior Dant Kanti toothpaste for the kids.)

Product Market size Close Competitor

Patanjali Cow Ghee Rs 1308 crore Amul ghee & Gowardhan ghee

Patanjali Kesh Kanti Rs 325 crore  

Patanjali Aloe Vera gel and juice   Dabur

V. MARKET SPECIALIZATION:- To reach to the pinnacle of FMCG market in INDIA, PAL has chosen the path of giving most of the consumer products which are right now available in the market and within their reach inculcated with the benefits of Ayurveda.

 

 VI. FULL MARKET COVERAGE: - Patanjali attempts to serve all customer group with all the products they need.

Patanjali has opened the herbal and ayurvedic market for personal care products and foods, setting the stage for a fresh battle of brands in the categories

Patanjali to grab up to 5 per cent market share in India's total Rs. 1.2 lakh crore FMCG market.

The highest market shares of Patanjali are likely in categories such as 1. Ayurvedic Medicine (35%), 2. Honey (35%), 3. Ghee (33%), 4. Chyawanprash (30%).

PRODUCT POSITIONING STRATEGIES OF THE COMPANYTo be pure ayurvedic product with cost advantage. THE FACTORS INFLUENCING THE POSITIONING.Brand AttributesPatanjali promises its consumers to give them herbal and ayurvedic natural and preservative free products.

Consumer ExpectationsConsumers expect ayurvedic product as no-side effect and best in purity.

Consumer perceptionsPatanjali offers reasonable solution for the customers who are looking for quality products and the products offered are value for money.

CONCEPTConfused positioning -Saundrya cream

Patanjali has priced it high than best of the compititors available in the market like Ponds and Olay making it a special product for few customer segment.

Over positioned- Ghee Under positioning- Patanajali atta noodles. Patanjali has failed to present its customers a strong central benefit or a reason to buy it over the famous Maggie.

BCG MATRIX

, juices

PRODUCT LIFE CYCLE

candy

SUCCESS SEQUENCE OF PRODUCT PORTFOLIOSEQUENCE OF LAUNCHING

PRODUCT CATEGORY REASON

1. JUICES- Aloevera, Amla, Lauki, Nutrients and supplements Ayurvedic supplements for health conscious.

2. Medicines Medicines A strategy to challenge allopathic solutions of the diseases.

3. Honey, Chavanprash Nutrients and supplements Many ayurvedic solutions add honey as one of the ingredient in place of sugar. With success of other products, Chavanprash was a great opportunity.

4. Soaps, Shampoo, Face wash, Hand wash. 2006, Personal care Youngster with ayurvedic preventive measure as an idea.

5. Biscuits Nutrients and supplements Eat healthy with healthy offering.

6. Coconut Oil and more Hair care Chemical based products are for short run, Ayurvedic for long run.

7. Dantkanti and more Dental care To cater all the segments, wherever possible.

8. Ata and Noodles Nutrients and supplements After seeing market potential and opportunity to be a part of competition in a role of saint.

9. Candy , Powervita, sugar free chavanprash, Divyapay, chocolate bar

Nutrients and supplements Capture every possible product.

SO WHAT MODEL

NEXT PLATFORM

Launched yesterday

STAR PRODUCT IN SEGMENTSS.NO. CATEGORY SUB CATEGORY STAR PRODUCTS (market share)

1. Personal Toiletries Detergents 9%

    Toiletries Soap 12%

    Skin care Face wash 7%

    Skin care Aloe Vera

    Hair care Hair oil 9%

    Hair care Shampoo 9%

2. Dental care   Tooth paste 9%

3. Grocery   Corn flakes 10%

      Instant noodles 7%

      Oats 7%

4. Nutrition and supplements   Honey 35%

      Ghee 33%

      Chawanprash

STAR PRODUCTS IN EACH CATEGORYS.NO. CATEGORY SUB CATEGORY STAR PRODUCTS (market

share)1. Personal Toiletries Detergents 9%

    Toiletries Soap 12%

    Skin care Face wash 7%

    Skin care Aloe Vera

    Hair care Hair oil 9%

    Hair care Shampoo 9%

2. Dental care   Tooth paste 9%

3. Grocery   Corn flakes 10%

      Instant noodles 7%

      Oats 7%

4. Nutrition and supplements   Honey 35%

      Ghee 33%

      Chawanprash

SUMMARY OF PRODUCT PORTFOLIO

COMPARATIVE ASSESSMENT OF COMPETITORSSignifying buying factors PATANJALI DABUR HUL P&G

Product Design Fair Good Excellent Excellent

Product Quality Good Good Excellent Excellent

Product Performance Excellent Good Excellent Excellent

Breadth of the Product line Good Good Excellent Excellent

Depth of the Product line Good Good Excellent Excellent

Reliability Excellent Excellent Good Good

Running Cost Fair Fair Fair Fair

EXISTING NEW GEOGRAPHIC AREAS

New And Emerging Segments

NEW MARKETS

Current Product range:- Chyawanprash(3), Badampak(1), Ghee(1), Honey(2), Health drink(13), Fruit Juice(8)

Market Penetration:- Moderate(Aloevera on top)

Geographic Expansion:- Aggressive strategy

-Tying up with online distributers and Super-Hyper market -Targeting every set of customers.-Food parks.-Endorsing aggressively through their various events and conventions.

Market Development Strategy-Increasing product width and product depth.Market Extension:-Opening up new stores and food parks.-Mobile apps.Diversification Strategy :-Market:- Food and herbal park.Product:- Weight gain and loss products,Chicory coffee (caffeine free).

Modified Products:- Aloe Vera(4):- (Orange, Fibres, Orange + Fibres)

Product reformulation and updating

Moderate Moderate

Range Extensions:-Amla(4), Giloy(1), Mango Panna(1), Thandai(1), Tulsi Panchang(1)

Product Extension strategies and market refocusing

High High

New Product in areas of:- 1.Related Technology:-Fruit Juices

Product Development Strategies

R&D and collaborations

Latitudinal and longitudinal diversification moveOpening of priority stores and dealers network

Ansoff Matrix Markets

PRODUCTS

SEGMENT ATTRACTIVENESSS NO.

CRITERIA WEIGHT

SEGMENTS

1= premium class

2=high middle class

3 = medium middle class

4= lower middle class

5= lower class

1. Long term volume growth 1 5 6 9 8 92. Short term volume growth .25 7 8 9 9 93. Organisational image 1 5 8 9 9 74. Offensive strategic

reasons1 5 7 8 7 7

5. Defensive strategic reasons

1 3 7 9 9 9

6. Internal resource/ capability

1 9 9 9 9 9

7. Relative competitive strength

1 6 7 9 8 7

8. Competitive vulnerability .5 6 8 9 9 99. Legislative constraints 0.25 9 8 7 6 510. Levels of price

competition1.5 6 7 9 9 9

S NO.

CRITERIA WEIGHT SEGMENTS

1= premium class

2=high middle class

3 = medium middle class

4= lower middle class

5= lower class

11. Technological change

.5 8 9 9 7 6

12. New product Demands

.5 7 8 9 8 7

13. Distributor power .5 9 9 9 9 9Total 10*10 61 75.5 88.5 83.75 80.5Priority 5 4 1 2 3

(Rating 1-10, 10= highly attractive)

CONCLUSION   a) The brand has moved into e-commerce besides being available with retail chains and under its own distribution centers.

b) The Ramdev Medicines brand is ready for export with foreign exchange earning potential and could be a great success if marketed successfully given the weakness that the West has for both Yoga and Herbal alternatives.

c) The brand pyramid has legs. Products are available online and through offline retail.