MARKETING MANAGEMENT

(MKT 201)
Term Group Assignment
On
“Segmentation Targeting & Positioning (STP Analysis) and
Marketing Mix”
(FMCG Industry & Company- Patanjali)
POST GRADUATE DIPLOMA MANAGEMENT
PGDM (M); Term –II; Batch 2019-21
Under the Supervision of
Dr. DEEPAK SINGH
Associate Professor – Marketing & Strategy
Submitted by: Group no. 10
1. AYUSH JAIN (PGMA1946)
2. VIPUL TUTEJA (PGMA1947)
3. AAISHIK SEN (PGMA1948)
4. VICTOR PAUL (PGMA1949)
5. MILIND PANT (PGMA1950)

JAIPURIA INSTITUTE OF MANAGEMENT

A-32, Sector 62, Industrial Area, Noida-201309(U.P)
November, 2019
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 INDEX
Topic Name of Student Pages

Industry Brief AAISHIK SEN 3-6

Segmentation: Market MILIND PANT 7

Identified

Targeting MILIND PANT 8

Positioning MILIND PANT 9

Level of product & Services AYUSH JAIN 10-11

Product and Service Decisions VIPUL TUTEJA 12-18

Product line decision,
Product mix decision ,
Brand strategy
PLC stages and PLC Strategy of VIPUL TUTEJA 19-21
the choose Brand

Pricing Strategy AYUSH JAIN 22-23

Place Strategy VICTOR PAUL 24-25

Promotion Strategy VICTOR PAUL 26-27

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Company Profile:
Patanjali is one of the leaders of the FMCG market which manufactures its product from
minerals and herbs. It was established in the year 2006 and it is headquartered in Haridwar and
is owned by Acharya Bal Krishna. Patanjali deals with more than 350 products and also various
kinds of medicines for body ailments. Patanjali right now is the fastest growing FMCG sector in
India. Patanjali’s most successful products are flour, ghee, toothpaste, edible oil etc. Patanjali
posed a threat to all the other competitors such as the dominant leaders HUL, Nestle, Britannia,
Colgate-Palmolive etc. Patanjali has targeted to cross the annual turnover of the decade long
leaders HUL.
VOLUME:
The annual turnover of Patanjali kept on increasing since its beginning until the last year where
the sales declined.

Revenues (Rs Cr.)

14000

12000

10000

8000 Revenues (Rs Cr.)

6000

4000

2000

0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

As we can see from the above graph the sales have kept on increasing right from 2010-11 to
2016-17 from Rs 100cr to Rs 11,526 crores until in 2017-18 where the sales went down to
8,135cr. The sales went down due to the introduction of GST or Goods and Service Tax and also
because of poor distribution network. Earlier Patanjali planned to increase its turnover to Rs

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20,000 crores by 2021 but because of this setback the dream has moved further.

PRODUCT:
The product we have chosen for our assignment is Patanjali Dant Kanti toothpaste. This is a
toothpaste made with all the herbal ingredients. This comes in different varieties mainly are:

 Dant kanti original which is made of all the natural ingredients such as neem, turmeric,
cloves etc. A 100gm pack usually costs around Rs 38.

 Dant Kanti Advanced is another variety of Dant Kanti which has got additional
properties which is it is made with 26 different types of herbs which will offer better
protection of gums and teeth. A 100gm pack of this toothpaste costs Rs 90.

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  Dant Kanti junior is another variety of this toothpaste especially made for healing
children’s gum diseases, the product comes with a simple design with animated
characters printed with it. A 100gm pack costs Rs 35.

 Dant Kanti Medicated is the last variety of the toothpaste which is made especially for
those who has gum sensitivity from hot and cold things. A 100gm pack Rs 45.

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 COMPETITORS:
Even though Patanjali did launch the Dant kanti toothpaste there were already big
market leaders present. Few of those toothpaste brands are Colgate, Pepsodant under
HUL, Meswak, Oral-B, Dabur Red, Sensodyne etc.
Colgate and Pepsodant are the major market leaders but after the launch of Dant kanti
toothpaste the sales have doubled than that of its competitors.
The sales report of last 2 years is given below.

Name of the company March 2017 March 2018

Colgate India-Colgate 53.4% 55%
HUL- Pepsodant 17.3% 19%
Dabur- Dabur Red 15.4% 15%
Patanjali- Dant Kanti 7.4% 3.7%

The above report was published by Bloomberg on May 23, 2018. From the above report
we clearly find out that the sales of Colgate has gone down because of the introduction
of Patanjali Dant Kanti. The trend of the people of India has shifted to more use of
herbal products which we can clearly find out that the two companies , Dabur and
Patanjali make herbal products and we can see how there has been a rise in the market
share.

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Patanjali STP (Dant-Kanti)
Segmentation:
Segmentation is the process of splitting market into small sub segments. This can be done on
the basis of age, sex, place, income etc. This is very important for any organization as it will help
the organization to know that what kind of product market want in different segment and
accordingly organization can create different product for every segment. One product is not
sufficient for all kind of consumer that’s why segmentation plays a very crucial role. Market
Segmentation are of four types:
Demographic Segmentation
Geographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
Patanjali also did segmentation for its product Dant-Kanti (Toothpaste). Every segment has
different kind of taste we can also say need and wants and to fulfil those need and want
Patanjali has segmented its products Dant-kanti in many segments to attract all segment
consumers. Below are the products Patanjali has created as per there segments:
1- Patanjali Dant-Kanti Regular, Dant-Kanti Fresh active , Dant-Kanti Aloe Gel:
Region (Geographic Segmentation) – Urban, Semi-Urban, Rural
Age Group (Demographic Segmentation) – Youngster and adults
Benefits (Behavioral Segmentation) – Fresh Breath, Tightens gum

2- Patanjali Dant Kanti Junior:

Region (Geographic Segmentation) – Urban, Semi – Urban
Age Group (Demographic Segmentation) – Children
Benefits (Behavioral Segmentation) – Maintain Oral hygiene, fight germs

3- Patanjali Dant Kanti Advance, Dant Kanti Medicated, Dant Kanti Red :
Region (Geographic Segmentation) – Urban
Age Group (Demographic Segmentation) – Adult and Old Aged
Benefits (Behavioral Segmentation) – Swollen gum, Periodontal diseases

Patanjali has created all these products to attract all consumers from different segments. All the
above products are created for different age group, region etc. To sustain in business against

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their competitor companies has to make sure their all consumes are satisfied by there product.

Targeting:
Targeting is done after segmentation. Firstly, market is divided into different segments and then
appropriate segment has been selected by company. Targeting is done on a segment where
large number of consumers are willing to buy your product.
Patanjali also targeted some segments where their consumers are more likely to buy there
products. Fact is Patanjali is not targeting a single market, rather they want to serve to entire
population with there adversity. Mainly Patanjali has targeted age groups as 70% of dant-kanti
consumers are adult and youngsters. That’s why Patanjali have created different kinds of dant-
kanti for different age groups. Dant Kanti is one of the most popular and most sold product of
the Patanjali. Most of the Patanjali consumers are tends to purchase dant kanti for there
household.

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Patanjali is concentrating and targeting highly value conscious consumers. Customer those who
are conscious about there health and are ready to buy product which have herbal , natural and
ayurvedic ingredient. Apart from this Patanjali targeted customer through there price point.
They have love price of Dant kanti as compared to other competitors. Providing ayurvedic
product in low price will attract consumers.
Positioning:
Market positioning refer to the customer awareness of the brand. It makes the perception of
the product in consumer mind . Every organization do it in a different way to create their
position in market. Some use unique advertisement which impact consumer mind and they will
remember your brand by that advertisement. Positioning plays a very important role in
marketing of any product. Every company tries to create a unique image of features of their
brand (what it is, what is does, how?). or brand create a proper image (Cost effective, great
quality etc.)
Patanjali also did many things to create its position in market. They create their image as
ayurvedic/ herbal products which are not harmful with no chemical added in their product and
cost-effective product.
Positioning done by Patanjali on there dant kanti product are:

 Differentiating from competitors: maximum products are produced and manufactured

globally but Patanjali term there dant kanti as “Swadeshi” (Indian) product. This helped
them to connect with consumer and creating their image as product created and
produced in India only.
 Point of difference: Dantkanti is made up of ayurvedic and herbal product with no added
chemicals. They used ingredients to create their image in market as all other
competitors are using some chemicals to create toothpaste.

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  Cost effective: Value for money high quality product having herbal ingredients in
toothpaste.
 Consumer benefits: Prevents bad breath, sensitivity, cavity etc.
 Ramdev Baba : Ramdev baba always influence people for healthy living and then he
endorsed there product which attracted consumer toward Patanjali dant kanti product.

LEVELS OF PRODUCTS AND SERVICES

The diagram shows the three levels of product.

Core product benefit: Core benefit of the product refers to the need or want which
customer wants to get satisfied from the product.

NEED: Need for toothpaste which can clean teeth and make them strong.

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 WANT: Toothpaste which is ayurvedic along with that it fights with germs, protect from
cavities, provides protection from bleeding and swollen gums and makes teeth stronger
and healthy.

BENEFITS: Contains more than 10 natural extracts

Tightens gums and fight germs.

Removes toothaches and bad breath

Herbal toothpaste

Reduce the need for tooth extraction etc.

Actual product: Actual product refers to the physical and tangible product offered by
the company.
Brand name: Patanjali is the brand name of the product.
Quality level: Quality level of dant kanti is very good as it associated with a big brand
Patanjali. Dant kanti is made up of various herbal ingredients and it is chemical free.

Color: The color of outer pack of dant kanti is white and red-brown and the color of
paste is brownish red.

Features: Contains more than 10 natural extracts like babul, akarkara, neem etc.

Tightens gums and fight germs.

Removes toothaches and bad breath

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 Herbal toothpaste

Reduce the need for tooth extraction etc.

Has medicinal properties
Beneficial for treating gingivitis.

Augmented products: This relates to the non-tangible product comes along with the
main product which provides the value to the customers like warranty, customer care
services etc.
 Customer care service
 Support center and complaint resolution is also there.

PRODUCT DECISIONS

Product can only be formed and provided only when the enterprise knows about the problem
which is floating in the market and they feel they can make profit out of it and are having an
innovative solution which will definitely over reach to it farthest. Product and services decision
don’t only comprises of the product making but about products attributes, branding, labelling
etc. as without reaching out to the maximum reach product can never become a successful. So
in these decisions not only enterprise in responsible but the distribution channels, retailers,
packaging these all also play role to make a product and making that product as the major
market share as a Brand of that industry. There are 5 product and service decisions that each
company has to work upon:

Product
Product Support
Branding Packaging Labelling
Attributes Services

So starting with the product and services decisions that business organization has to think of
between making a product to make that land into the market. Talking about our product from
PATANJALI- DANT KANTI and its products and service decisions as follows:
Product Attributes: As DANT KANTI is a kind of herbal tooth paste cream which is being
extracted from the herbal ingredients which makes your teeth strong, healthy, and white. It

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also provide protection from Gingivitis, Toothache, Bad breath, Spongy & Bleeding Gums. So
above all are the kind of special features that DANT KANTI provides and is having the
advantages on other competitors that’s why only their id a huge growth in the market share of
the Patanjali in its oral health care i.e. it has jumped to 2 nd spot after Colgate. Other attributes
that attract customers are no added chemicals, Swadeshi product, 100% pure ingredient,
contain Fluoride which prevent cavities and also form a film of bacteria that forms on teeth and
gums every day. In Patanjali Dant Kanti toothpaste available Fluoride content is 924 PPM
approx.

Product design and style was almost similar to the other competitors but one thing is the that is
making this product more popular is Patanjali’s + Divya Shakti brand which is putting more
impact on the customers and making them more emotionally attach with the brand. And other
product style that differentiate their product from competitors is the ingredients. One more
product feature is that the toothpaste cream is of dark brown color but the foam that is formed
and the quantity of fluoride with protection from gum as well as germs with overall protection
for 24 hours.

Patanjali always want to make differentiation through their quality process so they have their
different quality circles project teams that work thoroughly on Total Quality Management
(TQM) and this only helps Patanjali Ayurved Limited to prepare such a high herbo-mineral
products with uniform levels for batch to batch consistency. So this type of quality ensure is
being involved in the process so that customer buys anything that will be of high quality index
only.

Branding: Branding is tool which is being used by all the organization to capture the maximum
market share by reaching to the maximum extend. Branding steps from the brand i.e. the
product in itself has to be approachable and has such a reach that the people forget about the
other product when they see a specific product. So looking at the Patanjali as a brand two huge
name has been attached with it firstly Baba Ramdev and other Acharya Bal Krishna which itself
provide Patanjali a renowned name for the world. Their objective are also influencing the world
due to which people are more attached with their organization as to use “swadeshi” products ,
pure natural and chemical free ingredients in products under the single brand house name i.e.
“Patanjali”.

Now starting up with the product we have taken in that “Dant Kanti”

 Tagline plays a major in branding itself and the tag line for our product is “Tightens
Gums Fights Germs”
 Another thing by which one can enhance their reach is by proper advertising according
to market scope only if that product can be easily differentiated from other product.

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 Similar is the case with Patanjali as the Dant Kant was launched as the highest
advertised product and has many features in the segment in which it has been
introduced. Since then the market share of other competitors has decreased to such
extend that Patanjali toothpaste has reached in top 4 toothpaste sold in India.

 Another import strategy to be a brand is by reaching to maximum extend for that if

domestic market is being captured for the long term objective for survival and be a long
player in the market one has to start and increase the export more in international
markets to enhance the customer relationships. This similar activity has continuously
increasing the market presence and the share of the market and turning out to be the
leading brand in International market.
 Dant kanti first delivered value to the customers with minimum advertising costs. The
value proposition includes herbal products, no brand premium and product efficacy. It
has become one of the biggest disruptors in the Indian consumer market. That’s why
the brand has emerged in top 4 of the toothpaste.

Packaging: Packaging plays an important role in attracting the customers, increase visibility
and make product handier so that customer can be attracted. It also differentiate one’s
product from other competitors. It plays a vital role in branding as it describe the customers
about more informational details (company name, their idea behind it and ingredient in the
product). Packaging is important to protect the product from the chain cycle of the
distribution (from manufacturer distributorretailerconsumers) and from the dust
and other objects so that the product can’t be affected anyway.

So our product Dant Kanti was packed in a white mustard box so that the description and
the image can be formed easily in the mind of the customers. The brand name on it also
easily signify about the product and easily visibility can be seen with the proper objectives
and the detailing that organization want to be sent to the customers so that the new
customers can also be attracted and the product should be reached without damaging in
hands of the buyer.

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 Packaging also differ variant to variant as from Dant Kanti junior to advance(manjan) they
have different kind of detailing and attractive figures for the different customers from kids
to adults and for their different use and different flavors.

Labelling: Labelling is a necessity for every product which is to be sold so that the
differentiation can be possible from other competitor product. It tells us about the different
licenses that the product has, the contact no. and address to whom and where the product
has been developed so that after sales feedback or complain can be registered if any. One
of the most important information provided in the labelling is about the nutritional fact
table in which all the information about the fats, vitamins, minerals can be noted and can
be compared with other toothpaste. Other things that are provided on the labelling part is
Batch no., manufacturing date and expire date so that customer should be provided the
product with in the useable date only because after that it has to be disposed of. The other
warning are also marked on it like temperature, allergic reaction etc.

So now comparing that with our product these all information is provide on the packaging
material so that easy differentiating and attracting the desired customers can be done
before the standard life cycle of the product. The product has the green dot which
represent it contains vegetables or we can say non vegetarian ingredients are not mixed in
it. Other important thing is the symbol which shows the green horizontal line which
indicates that the product does not contain any chemicals and formed from the herbs and
other minerals.

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 Product Support services: These days every organization is providing after sales services
through their call centers, emails, different contact no. , address given with the batch no.
provided on the packaging and the labelling of the product. This not only helps customers in
ease of providing any kind of information or feedback and provide organization their true
presence in the market and what new customer want to make their survival for a long
duration in the market as innovation is a rule for survival. So these all things are provide not
only on the packaging of the product but also on the online website this will enhance the
chances of customers to get retain as the chat bots can be hired to make the customer
more lively about the organization.

PRODUCT LINE DECISIONS

To take different product line decision one has to for a product line which summaries of the
group of products that are closely related and manufactured by a single company. So this
relation comes from several product attributes i.e. their function, target customers in a set
price range. Each product line requires separate product line decisions. Some of the
importance decisions are product line length and other is its expansion i.e. product line
width, product line depth. Below I am demonstrating the product line decisions that
Patanjali has:

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 PRODUCT MIX DECISION

So after the description of the company’s product portfolio now the product that was
chosen by us its expansion with product length, product depth, product mix consistency and
product width will be define i.e. no. of product lines offered, variation in the each product
that a firm markets in its mix, the relativeness of the products etc. So for that I have taken
only the natural personal care as a head and made different product line in that and making
different depth as the different type of product it has as our product was Dant Kanti which
comes under the section of Oral Health Care which is have different variants in it. Different
variation are:

1. Dant Kanti Junior

2. Dant Kanti Regular
3. Dant Kanti Advanced
4. Dant Kanti Medicated

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  As per the latest updates provided on the website

BRAND STRATEGY

Patanjali is a big FMCG company which follows “Branded House” strategy in which the
company itself is a brand and all the products are promoted under one brand name
only. This also causes low cost involvement for marketing activities.
So looking at the Patanjali as a brand two huge name has been attached with it firstly
Baba Ramdev and other Acharya Bal Krishna which itself provide Patanjali a renowned
name for the world. Their objective are also influencing the world due to which people
are more attached with their organization as to use “swadeshi” products , pure natural
and chemical free ingredients in products under the single brand house name i.e.
“Patanjali”.
Like other FMCG companies, Patanjali uses a mix of demographic and psychographic
segmentation strategies to make its offerings appropriate/ relevant to the particular set
of customer groups / target markets. Herbal appeal and lower pricing have won
Patanjali consumers in India. Dant Kanti (Sanskriti for shining teeth) is the second-
biggest contributor to its revenue. The toothpaste has made a bigger impact outside
metros in tier 1, 2 and 3 cities.
Another import strategy to be a brand is by reaching to maximum extend for that if
domestic market is being captured for the long term objective for survival and be a long
player in the market one has to start and increase the export more in international
markets to enhance the customer relationships. This similar activity has continuously
increasing the market presence and the share of the market and turning out to be the
leading brand in International market.

Another major factor how Patanjali is putting their efforts is that they have set up their

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 own Patanjali Chikitsalaya, Arogya Kendra and Retail stores to distribute their own
product. If we notice carefully around 4700+ centers are their where Patanjali stores are
provided it is doing their branding itself. Patanjali also offering product through other
retail outlets like Big Bazaar, Reliance, Easy day etc. and from online channel also. This
was also the reason that Patanjali was able to make 2.3% increase in FY18 and from
5400 cr. industry last year it has made a revenue of 940 cr. Only from the oral health
care product.

There is a large market for Patanjali as the price range at which they are providing the
material is at much suitable and affordable by everyone on any nearby ration shops,
retail shops etc. Basic necessity of the product is it should be easily affordable and
approachable in which Patanjali is way ahead of their competitors.

Brand Development

Ansoff’s Matrix

Current Product New Product

Current Market Market Penetration Product Development

Sachet Ayurvedic

Coinage SKU Natural

New Market Market Development Diversification

Target Youth Cosmetics

Rural Market Health Drinks

PLC (Product Life Cycle) Stage

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 Taking place as a customer everyone buy’s thousands of product every year. Each one of
them have a definite product life some have a long established periods or sometimes it
space is being occupied by new modern product and causing the older one to get less
effective or decline in the sales pattern. So organization produces thousands of product
having a durability of different time spans. The different stages that every product has
to face are introduction (innovation), growth, maturity and decline in their life span
which also transforms the marketing strategy accordingly for each product and its
different variants. For the long term goal every organization start making investments in
new technological and innovative product development so that the business continue to
grow.

Introductory Stage: When the product enters into the market it may growth with fast
moving pace or can have a steady increase and if the product is capable enough to earn
product doesn’t matter if it is small till that phase the product will be in the introductory
stage. We can say it is a lead time which every product requires to take a stand in the
market. In this stage product just enters into the market it is not always that the product
got boost up into the markets the customers will restrict themselves to the older
product only and when the new product start show their benefits and will have a proper
stand in it then only customers will be attracted toward the product and it will have a
like increase or gain according to the attraction that product can fetch of the customers
in the market. Another reason for the low profitability is not able to make full use of the
production capacity. That is why it will not be able to get benefits economies of scale
that are associated with higher levels of production. In this stage product mostly has
two market strategy:

 Price skimming involves charging a high price at the start, before reducing the
price gradually to “skim” each potential target group in the market as the market
grows.
 Price penetration involves setting a low price to enter the market quickly and
capturing market share, before adjusting the price to increase profits once the
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 market has grown.

Growth stage: In this stage the product has already started meeting the existing market
demand and needs from the previous untapped demand and need. In this sales will be start
rising and the point at which it start is called as the take off point. At this point of time product
start making profit as the sale revenue start increasing at much faster rate. But in this
competitors also had time to assess the product and know about the facts and figures of the
product and can respond with the similar or the improved version of the product into the
market. Due to which the new players can increase their sales by attracting new buyers rather
than putting impact on the price of the own product with the increase in approachability of our
product can be increases and changing the market strategy.
Maturity Stage: In this stage the sale growth of the product becomes constant or decreases at
much slower pace, then we can say product’s maturity stage has arrives. In this company tries
to capture customers from the other competitor by using different pricing strategies,
promotional strategy, bundle packaging etc. In this stage the weaker competitors automatically
forced out as it has been putted into the corner, this is called shake out point. This stage occupy
more time than the previous stages in which each competitor has to face strong challenges to
be survival into the market. The firms tries to hold the prices in their hand and maintain their
profit but the problem in this stage is of the heavy price competition and to overcome that they
have to increase market expenditure from all other competitors so that they can retain loyalty
that they have made in the previous stage..In this stage firm can have number of strategies to
ensure the future success and their long term survival into the market place. These strategies
can be from in innovation to modifying the product and alternate market mixes.

Decline / Extension stage: The firm maximum tries to hold their product in the maturity stage
as long as they can. As once the sales of the product declines or to generate the profit becomes
difficult product reaches its decline stage. This happen when n number of substitute products
can be seen in market and differentiating becomes very difficult and these product satisfy the
customers in much better our product. After that its company decide to hold with the product
in that they have total change their product segmentation to the product innovation so that to
be in the market can be retained easily, in this stage product extension again starts. If not then
they have to sell out their product at much minimal price so that the much of the losses can be
incurred and decline can be seen regularly.

Several alternative strategies available for handling the decline stage are:

 Milking or Harvesting
 Phased Withdrawal
 Contracting out or Selling

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 Product Life Cycle of Patanjali-Dant Kanti
Patanjali is having a huge product portfolio under its name as it is big FMCG brand since
2007. But analyzing deeply, not all products were launched at the same period. They
just started with limited product and after then constantly increasing their new and
innovated products in market.. So seeing the product life cycle of the Patanjali all of its
products are in introductory or in the growth phase and has still a long way to go before
it reaches maturity.
Introductory stage: Patanjali has started their product initiative to use “swadeshi”
products and key basis of their product was Ayurveda which fetches attraction of the
customers immediately as Baba Ramdev was associated with this line and when such a
huge name launches the product people take initiate and rest of the work was done by
the word of mouth of the people. Another thing why people were attracted were the
100% pure ingredients usage in formation of the product. From the start of Patanjali it
has constantly increased its product and has achieved fastest sale revenue crossing
company (10000 Cr.) in 2016-17.

Growth Stage: So the swift rise of Patanjali was initiated from 2012 in which company
posted CAGR of 64.7% with annual revenue growth of 2000 Cr. Patanjali is already past
the gap between early adopter & early majority. Many of its best-selling products like
ghee, Dant Kanti, Honey etc. have reached the growth stage.

Maturity Stage: Only one of the product has reached to the maturity rate is Aloe Vera
liquid and few of the candies. As none of the other company has raised these product to
such an extent that no other company other than Patanjali can be thing of and their
product is of such a high quality that to match that standard has been difficult in present
stage.

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Patanjali pricing strategy (Dant kanti)
Pricing strategy: It is a method used to set the best price for any product or service. A good
Pricing strategy helps in many ways like it helps in maximizing profits and it also increase the
value of shareholders.

Patanjali ayurveda is now the fastest growing FMCG Company in India because of the two main
reasons which are:

 First is using the natural ingredients in their product.

 Second main reason is pricing.

Pricing plays very important role in putting company ahead. Many companies trying to compete
with patanjali ayurveda but they failed.
We know that the price of dant kanti toothpaste is very low as compared to the other
toothpaste companies. The pricing strategy followed by dant kanti is penetrative pricing and
value based pricing because they know that the product cannot conquer the market with
higher prices.
Penetration pricing is the pricing strategy used by companies to attract the customers by
offering a low price during its initial offering.
Value based pricing is the strategy in which company set the price of the product on the basis
of what the consumer is willing to pay.

Comparison of dant kanti with other toothpaste companies in terms of price

Companies Weight Price

Dant kanti 200 gm Rs. 75
Pepsodent Germi Check 200 gm Rs. 85
Colgate strong teeth 200 gm Rs. 93
Daur Red 200 gm Rs.90

It is clear from the above table that the product is following the penetration pricing strategy
and value based pricing strategy because the price of dant kanti toothpaste is very low as
compared to the pepsodent, Colgate and dabur red.

The pie chart shows “The Patanjali product Dant kanti is known for its quality and price”

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 Sales
strongly disagree
disagree
nuetral
agree
strongly agree

It is clear from the above pie chart that most of the consumer agrees that the Dant Kanti is
known for its quality and price.

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PLACE STRATEGY:
Pe0ple in India believe str0ngly in natural ingredients (herbs and spices) and because 0f this
reas0n Dant Kanti has been a success in the Indian market. M0st 0f the c0mpetit0rs in the
Indian Market in 0rder t0 c0mpete with Patanjali are n0w launching herbal t00thpastes.
Patanjali has managed t0 reach a wide p0pulati0n in a sh0rt span 0f time due t0 an excellent
distributi0n netw0rk. Patanjali is making use 0f a 3-Level Distributi0n channel. The pr0duct
Dant Kanti after being manufactured by Patanjali Ayurveda Limited is distributed by the
Distribut0rs t0 the Wh0lesalers which is then distributed t0 a large number 0f retailers and
then finally t0 the c0nsumers.

3-Level Distributor Channel:

A typical 3-Level Distribut0r Channel is as menti0ned bel0w:

PRODUCERS

DISTRIBUTORS

WHOLESALERS

RETAILERS

CONSUMERS

The pr0duct is s0ld by Patanjali Ayurveda Limited thr0ugh appr0ximately 5000 franchised
st0res. Patanjali has r0ughly 1500 Patanjali Chikitsalayas, 3000 Ar0gya Kendras and 8000 0pen
st0res in villages al0ng with 6000 Marketing Vehicles. In additi0n t0 these, 250 Mega st0res
are als0 being planned t0 be 0pened in Tier-1 and Tier-2 cities.

PatanjaIi has als0 tied up with s0me 0f the very ren0wned retail gr0ups in the c0untry like

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Future gr0up, Reliance retail, Spencer Retail, M0re (Aditya Birla Gr0up), D-Mart, Ap0ll0
Pharmacy, Hypercity, etc. This has enabled the PatanjaIi brand t0 ensure that its pr0ducts are
widely available acr0ss vari0us cities and t0wns in India.

PatanjaIi Ayurved is lndia’s fastest gr0wing FMCG C0mpany but it is n0t st0pping it fr0m
taking its presence t0 neighb0ring c0untries as well, like NepaI. PatanjaIi has a manufacturing
unit in NepaI as well. PatanjaIi als0 imp0rts herbs fr0m HimaIayas in NepaI; the well-
established trade relati0n is helping PatanjaIi expand its reach in NepaI with great ease.

With the gr0wing reach in India and Nepal, Baba Ramdev surely will be aiming t0 0vertake
market in l0t 0f 0ther c0untries. With impressive revenue 0f 5000 Cr0res, Patanjali is surely
g0ing t0 have a l0t 0f fund f0r expansi0n and gr0wth.

In India, due t0 the increased number 0f st0res that are n0w selling Patanjali pr0ducts, and
s0me 0f which are even exclusively selling PatanjaIi pr0duct, many l0cal retailer 0utlets have
started t0 l0se their business. The penetrati0n levels will 0nly rise further as the margins in
the pr0duct are g00d t00.

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PROMOTION STRATEGY:

PatanjaIi Ayurved Limited has acquired the fame and p0pularity am0ng the c0nsumers
because 0f the gl0bally rec0gnized Y0ga Guru, Baba Ramdev. This brand ambassad0r 0f
Patanjali is m0stly resp0nsible f0r the success 0f the brand and its pr0ducts.

Alth0ugh a l0t 0f pe0ple shifted t0 Patanjali Pr0ducts like Dant Kanti because 0f Baba
Ramdev, many Indians started f0ll0wing the brand when they realized that the pr0duct was
g00d and cheap. This itself was en0ugh pr0m0ti0n f0r the pr0duct. Patanjali Ad campaigns
have always f0cused 0n inf0rming pe0ple that revenue 0f Patanjali is f0r the devel0pment
0f the c0untry. Als0, it w0uld be better if the revenue generated fr0m the pr0duct remained
within India instead 0f g0ing 0ut t0 f0reign c0mpanies which effectively appealed t0 the
c0nsumers 0f India. Till n0w, Indians did n0t have many alternatives t0 f0reign pr0ducts
which were used 0n a daily basis but n0w they d0 have their 0wn l0cal pr0ducts which they
can rely 0n.

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Baba Ramdev started influencing Indians by sharing inf0rmati0n ab0ut price gap and h0w
useful herbal Patanjali pr0duct actually is. Baba Ramdev has made a huge difference t0 the
branding 0f Patanjali Ayurveda and pr0m0ti0n 0f its pr0duct.

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