BRAND MANAGEMENT

QUIZ 1 MM 10

Patanjali is an Indian brand of Ayurvedic, herbal and wellness

products.

Last few years, Patanjali as a brand had been in the news

because of their inclusion in a “Wish You Were Listed” report by
CLSA which estimated them to be bigger by revenue than
Jyothy Laboratories and Emami. In 2014 Patanjali was already
competing with The Himalaya Drug Company which was
then in the Rs 1500 crore turnover range, with targets around
12% growth. Himalaya however, is a much older company than
Patanjali, founded in 1937, though it started thinking of itself
as an FMCG player only as late as 2009. It has also expanded
beyond pharma to wellness and personal care, has its own
stores, sells online – a very similar journey in fact. In that
context, Patanjali’s growth is indeed commendable. (Biotique is
a beauty brand also based on the Ayurveda platform but has
not expanded its product range.)

Its growth becomes even more astounding when we look at

Patanjali’s revenue declaration for FY 2016-17, where the
brand clocked a revenue of INR 10,000 Crore, nearly double
from the year before. Baba Ramdev declared that he was on a
“MNC bhagao” mission, and that Patanjali would take over as
the largest brand in a year or two, eventually wiping out MNCs.

There haven’t been that many new, successful entrants in

the FMCG world in the recent past at the national level.
Q1. What, in your view, are the key barriers to FMCG
in a market like India? 3

Q2. What was the key reason for Patanjali’s massive

brand success? 3

Q3. Kimbho has come and gone, Swadeshi jeans by

Patanjali is a big agenda. Comment on the brand
Y
extension strategy of Patanjali? 4
o
Please do not exceed the word limit of 70-80 words per answer.

The following are the answers to the quiz:

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q1) The barriers to entry are as follows:
a) quality control for a FMCG Brandb) High Awareness cost required for a
national brand c) Managing a Distribution network 
q2) The key reason for patanjali's grand sucess are as follows:
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1) Presence of a major Brand ambassador as Baba Ramdev2) Ayurvedic product
as a differentiated product which to Indian Culture is quite effective3)
Discounted product with low ticket price and small sized Skus which worked
xt
pretty well at the Indian Market. Products were almost 20 % less in price when
compared to competitors4)Distribution was very well done with  products being
sold at already present ayurvedic stores and kirana stores. Exclusive franchise
h
store were also developed and a tie up with future group as distribution partners
added to the positive mix
q3) There had been a flagging growth in the FMCG sector of the company and
er
there had been almost no growth when the 16-17 revenue to 18-19 revenue was
compared. The company's flop Kimboo launch had been withdrawn due to
security reasons but the launch of Swadeshi Jeans would be a good strategy to
extend the brand. The indian market will is big enough for the existing jeans
e
market with the present of MNCs. Most of the market wears unbranded or local
company made jeans and it would be easy for Patanjali to come and overtake
this part of the market if they come and introduce a discounted product from a
brand which already has its name. The brand though cannot you Baba Ramdev
as he does not wear jeans and has to look for another ambassdor. Rest of the
marketing mix would be the same. Hence the Product form extension strategy
could be seen as a hit if everything falls in line.