Case study of Rising Indian FMCG Brand

Patanjali

Prepared by:

Suhag Mistri

(Business Consultant MMTCS)

Objective:

– To share 4 P’s of Rising Indian FMCG brand Patanjali.

About the Organization

– Patanjali ayurved limited, started in 2007, (Initiated in 1997)

– Who owns the company?:

– Acharya Balkrishna

– Former CEO SK patra, an IIT-IIMA alumnus, left the company in 2014

– Turnover: ₹5,000 crore (US$740 million) for the fiscal 2015–16

– Patanjali also sells its products online

– Patanjali ayurveda has tied up with pittie group and kishore biyani's future group (30 cr.) On 9 October 2015.

– Claims the company is not for business but ‘social change’

– In 2016, the patanjali food and herbal park was given a full-time security cover of 35 armed central industrial security force (CISF) commandos.

– The park will be the eighth private institute in India to be guarded by cisf paramilitary forces.

– Baba ramdev is himself a "z" category protectee of central paramilitary forces

Product Portfolio

– The company manufactures 444 products including 45 types of cosmetic

products and 30 types of food products.

– Invest over Rs1,150 crore in the current fiscal to set up six processing and one

R&D center

Category wise sales

Revenues

Cash Flow

– From YOGA:

– Rs. 11 lakh to become a member of Patanjali Yogpeeth, Ramdev's flagship yoga institute

– Rs. 5 lakh for founder members

– Rs. 2.5 lakh for patron members

– Rs. 1 lakh for life members and so on.

– Current turnover of Patanjali Rs. 5000 Crore – Year 2015 Profit after tax Rs. 316 Cr.

– Donation in trust (Rs 87.89 crore in FY14)

Customer Profiling:

– Health conscious consumer

– Want qualitative products at cheaper prices (Compared to other companies)

– Indians who want to use Indian products and help national development (‘Bharat Swabhiman Andolan’ )

– Those who want to use Ayurveda (Safe) products which has natural advantages

– Baba Ramdev’s Followers (20 Crore attendees till date through 5 lakh Yoga teachers)

Price:

Place:

– Patanjali Ayurved sells through nearly:

– 15,000 exclusive outlets (Will be grown to 1,00,000)

– 5000 franchisee outlets till May 2016.

– Big Bazaar: 30 Cr. Monthly

– Online Sales:

Promotion

– Unsolved problem: Consumers are somewhat unsure of the benefits of the current products

– Solution: Ayurvaidic products from expert of Ayurveda and functioning of human body (Yoga)

– Yoga Classes

– Tele-Vision (All Age group)

– Online promotions (On site)

– Soon on Amazon

– Two Brand ambassador:

– Baba Ramdev (Physical fitness expert)

– Acharya Balkrishna (Ayurveda expert)

– Price Competitiveness (Word of mouth)

– Product Differentiation

– Appointed: McCann and Mudra global consultancy agency for promotion (Advertisement on TV)

Key Success factors

– More than 1 lakh free yoga classes every day – Database of camp visitors

– Year 2002 : aastha television shows – Partnership with various prominent T.V channels world wide

– High profits (local sourcing) is minimum marketing expenses

– Support for narendra modi during the 2014 lok sabha elections (advantages under make in india)

– Cash cow products:– Ghee, honey and toothpaste

In Process:

– Reliance Retail store, Reliance Fresh entered into agreement and offered exclusive kiosks.

– Expand sales to online and bring it on e-commerce majors like Amazon.

– Patanjali will focus on six big product portfolios to drive its growth: – A breakfast range including cornflakes,

– 'healthy' noodles,

– Ghee,

– Kesh Kanti (hair care products),

– Dant Kanti (oral care products), which is already a Rs 250 crore range, and

– Chaywanprash.

– Power Vita as a direct competitor to brands like Bournvita (Market size of the malted food drinks business in India is Rs. 20,000 crore )

– Hiring executives from FMCG rivals.

Sources:

– Times of India

– Economic times

– Simplus Information Services Pvt. Ltd.

– Wikipedia

– Patanjali Website