Marketing Research Case StudySubmitted by Abhijeet Mandal 156 Ankit Thakur 177 Harsh Babbar 162 Saurabh Gupta 170 Why we chose Patanjali? A force to reckon with Over FY12‐15, Patanjali registered revenue CAGR of 64.7%. The company has aggressive plan to enter every consumer category (keeping aside those that impact lifestyle and health). At the current juncture, though its presence in many categories may not queer the pitch for other consumer goods companies (each category not too big to impact except Ghee, which is expected to be INR12bn in FY16), over the long term, gaining palpable distribution prowess could pose a serious threat to competition. Patanjali’s proactive moves in innovation have been crucial for its growth. Other consumer companies will need to step up innovations, particularly in the herbal and ayurvedic space (distribution strength will come handy) to counter competition. The 3 principles vital for growth Patanjali Ayurved is a incorporated company under the Companies Act – Patanjali Ayurved Limited. Though a corporate entity, its working and ideology is not completely that can be compared to that of a perfect corporate culture. The company is focussed on top‐line growth rather than profitability. Its business ideology is inspired by Swami Ramdev’s ideologies to touch every life through Patanjali which will help the consumers and be present in all the segments where the consumers feel they can get a better product at a better price. The organisation conducts its business on the following 3 main principles: (1) Providing world‐class products to consumers (making sure the company does not add any preservatives or uses natural preservatives as far as possible). (2) Producing products in the most cost‐effective manner so that the products are priced very reasonably. (3) Whatever profits the company earns are ploughed back into business so that it can invest the same for launch of new products, cost effectiveness or further capacity expansion. Patanjali will not launch any products that are harmful to the health of consumers and detrimental to the health and lifestyle of the people. Hence, the company will not get into product categories like tobacco and liquor which are bad for health. Going forward, the company also plans to open 500‐600 branches of Acharyakulam (educational institutions). Areas patanjali wants to improve: Jostle with other companies for shelf space. The company has so far concentrated on a direct distribution approach with an exclusive store network. The consumer needs require market research which can . Exports are also in the pipeline to the countries like USA. So patanjali can’t rely only on word-of mouth anymore. Therefore. It will also be looking to increase the penetration of ayurveda products in India. Patanjali will set up manufacturing plants in South India and is looking to become a partner in mega food park being developed in southern cities. This will require a significant shift in its costing as well as investments. patanjali is planning to sell its products on e-commerce platform. Patanjali is soon coming out with our Patanjali mega stores which would be spread in 2. the supply chain has to be more efficient as well as the procurement of resources should me more frequent and also maintaining the inventory efficiently.000-3. it would have to adopt a more conventional and aggressive marketing strategy. The challenge will also lie in setting up a national distribution network so the customer waiting time decreases. it is very essential for the company to focus on the needs of its customers. Patanjali. Seeing the penetration and impact of digitalization. Along with this. and they have to understand and anticipates the consumer needs before the development of new products line. As the demand for patanjali products increases. plans to add more products in segments where it already has presence such as dairy. they will try new innovative marketing strategies. exclusively for our products The approach of the company has been to concentrate on its quality and let word-ofmouth do the rest. baby care. natural cosmetics and health supplements. which has 15. Why carry out Marketing Research? As the Patanjali is working on increasing their sales and finding new ways to grow their market size with a strong new product line. instant foods.000 sq feet. UK and Canada. As the competitors grow aware of its growing market share.000 stores across the country. which could impact the company’s earnings. the company want to compete with other existing competitors like Nestle and ITC. MR can assist them in staying ahead and improve its competitive advantages. the needs are easily visible b) Interviews: . It helps them identify in what products or extension the company focus on and for whom.add value to the business. coffee Kitchen Accessories (Dish scrubbers. washers etc. coffee Instants Cooking Snacks Oats Butter Milk Weight gain and loss products. Patanjali can instruct their suppliers for an advertising campaign to raise awareness of the product among consumer. Butter Milk Oats Instants Cooking Snacks Tea. washers… Washing Detergents & Soaps Skin Care Products Deodorants & perfume 0 2 4 6 8 10 12 14 Based on primary research the people who are the user of Patanjali Products are expecting companies to grow their market in the Instants Cooking Snacks and Weight gain and loss products. Also. Weight gain and loss products are more preferable—and from this. Some of the major categories we mentioned are: Deodorants & perfume Skin Care Products Washing Detergents & Soaps Kitchen Accessories (Dish scrubbers. Type of research: I) Primary Research: a) Questionnaire: The primary research was more towards the new product line in which the Patanjali would invest. New Product Categoeries prefered by the people Weight gain and loss products.) Tea. Despite the options are in the intersection of choices. Powdered hair dye. Child range (baby products). And. For new product ideas. and they would like to consume such snacks. as they are more derived towards natural products 3) Quantitative Research: The information that we get from the quantitative data is that more than 98% (data calculated through survey) of people like to consume herbal. 2) Qualitative Research: Primary market data also involve some requirements of qualitative and quantitative data which can be used to identify the customer needs. On the similar fashion. There are some reports which we also preferred to get the best idea for the Patanjali products. 4) Secondary Research: Besides. those are: Chicory coffee (caffeine free) Buttermilk in powder form Oats with masala . and natural products but only 60% will like to buy it from Patanjali. Most of them are the loyal customer of other products of competitors. Patanjali products are now high in demand and now offering separate distributorship for food and cosmetics. more than 90% of people prefer other company’s product. Weight gain and loss products. The company has been able to leave a mark owing to the pace and frequency of new product launches. Oats and Skin Care were in the popular product categories for women. Its robust R&D department has churned out new products in quick time and lower costs. new products expected to be in the market are: Patanjali Noodles. Only 40 % (5 out of 13 people) of them are the regular customer of Patanjali. and they will buy new products of Skin Care products. but they are willing to try products of Patanjali. Seabuck (thorn dietary supplement) and Divyapay (heath drink like tea) Some are also in the phase of R&D. ‘Tea & Coffee’ & ‘Spices’ were the preferable categories. Power Vatica (Healthy drink). within three months the Patanjali Noodle was ready to serve their customers. Dant Kanti (Toothpaste). Patanjali has a separate team for new product development. we have also gone through different research article to get the idea about the market. Most of the people aren’t entirely aware of the Patanjali products. but only 40% of the people will try to switch to our products. Instants Cooking Snacks is one of the popular categories of the people who consumes Patanjali products. Patanjali noodles made a good brand image among the people during the absence of the Nestle’s Maggi. After the Maggi issue. Sugar-free Chyawanprash.We have also conducted some face to face interviews. One finds the methods taught by Swamiji very simple for any lay person to pick up and follow. took Pranayam far away from common mass and was finally lost and buried. This gave birth to an idea that Pranayam should never be attempted to be practiced individually and should only be practiced in the guidance and vigil of a trained Yoga teacher (Guru). No one dared to practice such an art which would cause harm to them if there is even a slightest of deviation in the technique. His Holiness Swamiji has also assured the common mass that Pranayam can never cause harm to any person attempting to practice individually. Such rigid rules.V. Swamiji has removed the veil of darkness and the mystery of Pranayam is unfolding itself to the common mass in India. complexity in practicing techniques and above all the caution that. no one from the common mass in India did have access to it for the techniques of practicing them were very complex. There were also some words of caution attached to such instructions that any deviation from the practicing techniques would cause immense harm to a person. Madhuram – ginger and rose flavor Weight gain and loss products 90% of manufacturing is done within the Patanjali Factory. fear and monopoly of a few and presented it in its simplest form for the welfare of the mankind. Swamiji has exhumed the Indian ancestral science of Pranayam from the grave of darkness. . Pranayam were there in text books for long time but. any deviation in the practicing techniques would cause immense harm to the person. And they are going to open one more manufacturing plant to enhance capacity it is open to even third‐party manufacturing. Swamiji has done a tremendous job in breaking this concept of fear in common mass about the harm caused by Pranayam. Marketing Strategy of Patanjali Yogpeeth Targeting Masses through Pranayam and Yoga No one can help admiring the simplicity of the techniques for practicing the different pranayama (controlled breathing) which His Holiness Swami Ramdev Ji Maharaj has evolved and has been teaching to the common mass in India. It is the simplicity in the technique that is making Pranayam a part of life to common man. His Holiness has devised very simple techniques for practicing the Pranayam which are very easily picked up by any common man just by watching the T. pranayam and yoga is the complete natural cure for all physical and mental ailments. which is a Medical Science in itself that cures any physical or mental medical condition completely. He urges people not to lose hope or suffer and depend on expensive treatments. First we will take the example of sale of Patanjali products. made from potent herbs available in the Himalayas. Ramdev Baba opines that pranayam and yoga are the complete Ancient Indian Therapy. cash flow and information flow. In a bid to promote ayurveda.Product strategy Pranayam and Yoga: A Package for Various Diseases Swami Ramdev's Divya Medicines are claimed to be one hundred percent natural. But if medicines are required they are also available and these packages of medicines are available at a very low cost. But. operations or surgery. The diseases for which Indian population spend much more in hospitals. Swami Ramdev's Trust has tied up with 600 qualified ayurvedic practitioners who are offering treatment to masses for a variety of diseases. the pricing strategy is a mix of skimming and penetration. Some products are costly than other competitive brands and some are cheap. HIV and AIDS too. . but it is claimed to be true that this is the cheapest and the only complete cure to most of the so called incurable diseases like Diabetes. Pricing Strategy Developing an effective pricing strategy remains the most important and difficult part of the marketing process. Along with these medicines. Swami Ramdev has proved and declared on Indian and International TV Channels. with no or very little side effects. pranayam and yoga treat all the ailments completely without costly medicines. without any side effects. The medicines can cure all the diseases from a simple cold to cancer. some of them termed incurable by the modern system. Baba Ramdev's uses a penetration strategy and cost is very less. In supply chain of Patanjali all these are maintained very smoothly. They sell their products only through their own outlets opened in almost every district/city of India. Supply Chain of Patanjali can be well understood with the help of some examples. Each outlet sends its demand to central office at Haridwar. As far as the pricing of FMCG products is concerned. Supply Chain Management (SCM) Patanjali follows a very smooth Supply chain management. It is amazing. They have proven extremely effective for combating all forms of sickness and disease. The three parts of supply chain are product flow. Cancer. in case of pranayam and yoga. which will strengthen the immune system and quicken the healing process. Swamiji recommends patients to also adopt the practice of pranayam. It can be said that the supply chain doesn’t have any intermediary in between but rather it’s a direct from supplier to producer to consumer. Promotional Strategy Baba Ramdev's live yoga classes became a passion. The initiative aims to seek maximum value addition by backward as well as forward integration between the farmers. These products can be procured through post also by sending the required amount through demand draft etc. This shows a good example of Supply chain management. different products are gathered from various units of Patanjali viz. factory and the market. 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. Then the items are delivered to the respective outlets mainly through Patanjali transport. And it all began in the year 2002 when Sanskar television channel started airing Baba Ramdev's yogic classes. rest is used for the development of the village like establishing necessary infrastructure. Sales and Distribution Patanjali follows various modes of distribution for their products. it is sent to Patanjali Food and Herbal Park where it is processed and is sent to various Patanjali outlets for distribution. � A shop is established for sale of products wherever a yoga camp is organized. Then Sanskar channel's rival Astha channel signed him. Next we can take the case of Patanjali Gram at Uttarkashi. The part of money received from the sale of cow urine is kept by Patanjali Food and Herbal Park Limited as processing cost and the rest is sent to the village. � Patanjali has prepared disease specific CDs which they sell through their various outlets. Patanjali Ayurved. After initial filtration. Some amount is distributed to the people as a price of cows urine. In two years time he was a hit and with him also the channel . Baba Ramdev became a sensation he had hundreds of followers who morphed into thousands. They provide sale of products through their website with online payment facility.Then based on demand. � Patanjali herbal products are also available at Post offices across the country. Patanjali has opened “Patanjali Chikitsalayas” and “Patanjali Arogya Kendra” in almost all the cities of the country from where all the Patanjali products can be procured easily. building schools etc. They collect cow urine from rural households. A Patanjali trained Ayurvedic doctor also sits in every Patanjali Chikitsalaya from whom consultation can be obtained regarding various medicines. Divya Pharmacy. overnight. Here Swami Haridasji has presented a very good example of SCM. This also helps in reducing the cost because it avoids the unnecessary commission cost and other related charges of the intermediaries. Patanjali Foods etc. Spiritualism. He can be seen not only on religious channels like Aastha. Even healthy people are following his yoga pranayam regimen. India TV and Sahara One. 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 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 . Culture and Tradition-Yog Sandesh available in 5 languages can do much to lure customers. but also news and features channels like Aaj Tak. The SWOT Analysis of the Patanjali Yogpeeth is explained as follows. Ayurveda. clothing and shelter but also includes a healthy life style. Baba Ramdev has got the pulse of the basic needs of people which is not only limited to food. Books and magazines etc. to keep fit. Today.benefited. and has managed to fine tune his offerings to suit the needs of all.e. three books on yoga. Also. and Magazines are available. Baba Ramdev's pack i. He has mastered the art of mass customization and practices the art dexterously so much so that each individual feels that he is talking to him individually. as available in his DVDs. one DVD. he was being booked that far ahead by television channels for his live yoga classes each morning.. VCDs.. His yoga sessions were beamed live into 170 countries. pranayam and herbal remedies. His TV shows have the largest TRP. two Video CDs. This set of four promotional materials with a Research Oriented Monthly Magazine of Yog. There was an eight-month waiting period before one could see Ramdev. he is one of the biggest draws on Indian television. Millions around the country follow his programmes religiously and use Ayurvedic medicines prescribed by him. e. i.Opportunities: � Large domestic market – over a billion populations � Untapped rural market � Changing lifestyles and rising income levels. increasing per capita income of consumers � Export potential and tax and duty benefits for setting exports units 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 . do you want to consume Patanjali products? Deodorants & perfume Skin Care Products Washing Detergents & Soaps Kitchen Accessories (Dish scrubbers. In which segments. Which is your favorite FMCG brand? Nestle Patanjali ITC Godrej HUL Other 4. If Yes. etc. Which product do you like the most of that particular company (only one)? __________________ 5.Questionnaire: 1. Have you consume any products of Patanjali? Yes No 2. answers it on a scale 1 to 5 (1 is Not at all likely and 5 is Very likely) . washers. coffee Instants Cooking Snacks Oats Butter Milk Weight gain and loss products.) Tea. From 6 to 8 question. Can you mention the name of the product below? __________________ 3. If Patanjali will sell you these products. Would you like to consume more Herbal and natural snacks/beverages/cosmetics? 7.Not at all Slightly 6. will you still consume it 8. will you try it from us? Likely likely (1) (2) Can’t Say Moderately Very Likely likely (3) (4) (5) . If Patanjali will start making (those items which Patanjali doesn’t produce) your most likable items (which you have mentioned in the question 4).