BOS Patanjali - Report PDF

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6 Paths Framework Path 1- Look Across Alternative Industries Patanjali presently in the Fast-Moving Consumer Good (FMCG) and Clothing. The company has dived into this market and disrupted the whole industry in such a way that the competitors are now revisiting their strategies and techniques of market capture to fight with Patanjali. But it has been a long time since Patanjali has been in this industry and now slowly this segment is becoming a Red Ocean for Patanjali also. In order to stay ahead of its competitors, Patanjali needs to create a blue ocean by which it can compete in the field and maximize it product portfolio and profits. The 2 alternate industries in which Patanjali can move into are 1. Sattvik Foods 2. Kitchen Equipments For each of the alternate industries we will discuss the trends, the ways Patanjali can enter, competition it can face, the differentiating part of Patanjali with its competitors. ALTERNATE INDUSTRY 1: SATTVIK FOODS In the Sattvik Foods industry, there are quite a smaller number of players. There are only 3 or 4 restaurants in a metro cities and 1 or 2 in other cities. This shows that this segment has very less penetration and there is an opportunity for Patanjali to enter and disrupt this segment.

So, Patanjali has been a very well recognized brand in India and also in other countries. They have the market capturing capability in this segment since the other brands and companies in this segment do not have the power or resources to fight a shark like Patanjali. And eventually those also will be acquired by Patanjali. The main reason that Patanjali can do this is because of its brand value. People are very loyal to Patanjali and its products. Also, the present generation and upcoming generation is very health conscious, So they try to visit places where they find sattvik and good food. They also know the health risks with the other types of food. ALTERNATE INDUSTRY 2: KITCHEN EQUIPMENTS The segment of kitchen equipment has been taken over by many big companies. “But wait, we have all types of metal kitchen equipment, but have we seen the traditional kitchen equipment made out of clay.” Yes, we have no substantial size companies that are into this business. In the whole online shopping, we could only find only 2 or 3 small companies that are in this business. Even this segment we find a huge gap in the demand- supply of the consumers. This is happening because of the most of the doctors are now asking the population to switch to traditional way of cooking using clay pots. Patanjali can highlight the advantages of cooking using the clay kitchen equipment by emphasizing its importance in the historical granthas and purans. We also have seen that the companies in this segment who are there have a significant amount of sale, since their size are small and donot have the resources to market their product as Patanjali can do using his vast resources and advanced marketing strategies.

Path 2: Strategic Groups within Industry Currently Patanjali is in the cost leader strategic group, the reason is that it provides products of high quality with lower prices as compared with the competitor’s products. Now the reason that the buyers will shift to the higher strategic group ( here is the Brand and Quality Pioneers) is because there are group of customers who would like to have a high quality product. So in this case Patanjali can have its current portfolio, but with an addition of another brand with a range of products that have high quality with relatively higher price than its current offerings. For example in category of bathing essentials Patanjali can introduce 2 sub divisions of the products. One will be the current offerings and the second will be the high quality products will slightly higher price tag. This way they can also the capture the customer segment who look for quality products.

Path 3: Redefining the Industry Buyer group The current group of users of Patanjali products are from the baby boomers’ segment of the market. As we are advancing, we have seen Patanjali targeting the retails stores and the hospital segment by introducing Ayurveda Chikitsalaya (Mini Ayurveda Clinics). By this we have seen that Patanjali is redefining its buyer segments. Currently we can say that Generation X, Y, Z are its customer segments for its products. Patanjali has a very strong and effective marketing strategy. The main influencer for Patanjali’s products is Baba Ramdev, who is a yoga guru turned businessman. Initially he used to market his products in the yoga sessions he used to conduct in different cities. Slowly he started to create promotional videos and advertisements. This increased the popularity and demand for Patanjali’s products. The marketing costs are very less as compared to other brands as they must hire brand ambassadors to promote and advertise their product which increases the cost of marketing and promotion. So, in this way Baba Ramdev has been a very effective and great influencer for Patanjali’s products. Currently Patanjali is focusing on the user group and slowly shifting its focus to purchaser.

Path 4: Complementary Product and Service Offering Initially Patanjali had started its product offering by providing ayurvedic medicines to the patients. They used to have yoga sessions which was telecasted in Aastha Channel everyday in the morning. During the yoga sessions the people used to tell their health issues and Baba Ramdev used to provide them with certain medicines. Also during these sessions there were certain patients who had been using their medicines and very thanking them. This process led to influencing other people to purchase Patanjali’s products. Slowly Patanjali started to provide Home essentials and lifestyle products. For example Patanjali introduced all types of cereals, spices, grains, atta, rice etc. With this it penetrated the home needs segment of the market. They provided these products at prices less than its competitors and were also using the name of desi products. In the lifestyle segment Patanjali had introduced a variety of products from beauty to bath essentials. The next segment in which Patanjali can create a blue ocean is the Quick Service restaurants (Sattvik Foods). As explained above people are now trying to health conscious and preferring sattvik food over other foods as sattvic food, as per our tradition keeps our body clean and healthy. So Patanjali can quality and sattvik food to its customers, that will give them a new segment in the food industry with keeping their health in mind. In addition to this Patanjali will create a new cuisine in the market. Path 5: Rethinking the functional- emotional orientation of the Industry Currently Patanjali is competing based on functional appeal. The reason is that Patanjali initially entered the market by saying that all the products are in segment of Ayurveda. At that time there we less number

or no competitors in this segment. Ayurveda products have a separate connection with the Indian customers, this is because people believe that all the products are made naturally. Patanjali has now trying to connect to its customers based on emotional appeal by appealing the customers to its swadeshi products. Patanjali is now trying to undermine its competitors by saying that their products are not Indian made ( Not Swadeshi). Patanjali has made the people rethink the functional use of the competitor’s products by igniting the spark of Ayurvedic products and appealed to emotions of the customers by tagging their products with swadeshi.

Path 6: External Trends Trend 1: Health/Yoga According to a study conducted in 2017, over half of the 200 million Yoga practitioners are of Indian origin. India, the birthplace of this ancient practice has resurfaced for the global market. The demand for yoga instructors, private lessons and yoga therapy has risen in the last two years, indicative of a healthy forecast for the industry in 2019. The increase of interest in yoga has largely been fueled by the healthcare industry. Yoga has increasingly been used as therapy, for both physical and mental ailments. We gather from research and self-reports that the benefits that Yoga seems to elicit are unmatched by any other wellness practice. https://health.economictimes.indiatimes.com/news/industry/yoga-as-an-industry-learning-in-2018-andexpectations-in-2019/67286829 “35% of youth in corporate sector prefers Yoga to other fitness.” Yoga is part of Ayurveda... These trends as mentioned above will lead the consumers to adopt Ayurveda products. This will lead to increase in consumption of Ayurveda products. Patanjali being a market leader in this segment for various reasons, will help the company to increase its market share. Also in recent years Yoga has regained it popularity, as per a survey mentioned in the Times of India. Trend 2: Made in India      

Second largest exporter of Ayurvedic and alternative medicine in the world. INR 490 Billion wellness market. 6200 indigenous herbal plants. During 2014-15, the Indian wellness industry was estimated at USD 13 billion. Potential to generate three million job opportunities. The country has developed vast AYUSH infrastructure comprising of 736,538 registered practitioners.

http://www.makeinindia.com/sector/wellness Based on the above trends we can see that why Made in India is a boon for Ayurveda sector. Also the Government of India is providing companies to invest in the following areas such as   

Ayurveda drug manufacturing (nutraceuticals, food supplements, cosmetics and rejuvenates). Setting up of specialised treatment centres. Medical tourism for curative and rejuvenation treatments

http://www.makeinindia.com/sector/wellness Patanjali can use the following opportunity and take advantage. They can start medical tourism for curative treatments, just as Kottakkal Ayurveda does. Also Made in India will help Patanjali to get benefits from the Government of India, this will lead to decrease in costs to the company, which will in turn decrease prices that will create a fierce competition. The highest market shares of Patanjali are likely in categories such as Ayurvedic Medicine (35%), Honey (35%), Ghee (33%), and Chyawanprash (30%), the report adds. https://www.indiainfoline.com/article/news-top-story/make-in-india-how-patanjali-is-brewing-a-storm-in-fmcgsector-116011300291_1.html Trend 3: Internet and Technology

https://www.livemint.com/Money/3IvGU9EcPBrccVjtT3oi9O/Why-Patanjali-is-going-the-ecommerce-way.html

Some may have seen the irony in Patanjali Ayurved Ltd tying up with foreign-owned/funded e-commerce companies, even as it swears to end the reign of foreign-owned consumer brands in the market. Patanjali is only being pragmatic in doing what’s good for its own business, of being available where the consumers are. Its decision is one more pointer to the growing importance of e-commerce as a distribution channel for packaged consumer goods. This following trend of businesses going online is trend that is going to stay and grow rapidly. This is because of the digitalization. As per a survey, the revenues of grocery retailers (E commerce segment) grew with a CAGR of 16.1%. The growing population of smartphones and cheaper data rates mean the target market for E- commerce segment will increase further. The following was statement from Patanjali “We believe our partnerships with e-commerce platforms will help increase the reach of Patanjali products to more and more consumers in urban and rural regions," This was said in context when Patanjali was targeting to generate about Rs 1000 Crore from the ECommerce segment. https://www.livemint.com/Industry/sagmFxLHaexDqwtTyOHDgO/Patanjali-ties-up-with-online-retailers-in-bid-topush-produ.html...