MM Project Patanjali

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1.

How many retail outlets and wholesale outlet do they cover in


Hyderabad?
There is one distributor for 6 stores:
Retail outlets 40*6= 240
There is one distributor for every 4 wholesale store:
Wholesale stores 15*4 = 60

2. How many distributors/stores do they have?


There are total 100 distributors in Telangana.

3. Where is your carrying and forwarding done?

A detailed schedule for carrying and forwarding items to different


locations on specific days:
Carrying and forwarding typically involves transporting goods or
items from one place to another based on a predetermined
schedule. As per the details provided by the distributor, their plan
goes like this:

Monday: New Western


On Mondays, the carrying and forwarding operations are done in
the "New Western." This includes strategic locations like Kukatpally,
Miyapur, Madhapur, Gachibowli, and HITEC City. These areas are
home to several multinational corporations, educational
institutions, shopping centres, and entertainment venues where
goods are collected and forwarded to their designated destinations.

Tuesday: Bypass
On Tuesdays, the carrying and forwarding activities occur at a
location referred to as "Bypass." from where goods are efficiently
redirected to their intended locations.

Wednesday: Sadhasivapet
Wednesdays are designated for carrying and forwarding operations
in Sadasivpet a Mandal in Medak District.
Sadasivpet is one of the most popular destinations for buyers and
investors in Hyderabad due to the unparalleled growth in social and
physical infrastructure developments like flyovers, footovers, parks,
uninterrupted power supply, water facilities, and many other
infrastructure facilities.
Hence, Sadhasivapet is a very strategic choice where goods are
consolidated and then forwarded further as per the schedule.

Thursday: Shankarpalli
Thursdays are allocated for carrying and forwarding at Shankarpalli.
Shankarpalli likely serves as a hub for organizing and sending out
items to all the 25 villages under it as their next destinations.

The list goes on like

Fridays involve carrying and forwarding operations at Islampur.


On Saturdays, the carrying and forwarding activities take place in
Ismilekhanpet MNR. Similar to the other days, Islampur and
Ismilekhanpet MNR likely play a crucial role in the logistics chain for
distributing goods.
Sundays are designated as holidays.

This means that no carrying and forwarding operations occur on


Sundays. It's a day of rest and pause in the schedule, allowing the
workers and logistics system to recharge before resuming their
activities on Monday.

All this is maintained and managed by


SD : Super Distributer, Vishal Arogya Sampat from Medchel

In summary, there is a detailed schedule outlining where carrying


and forwarding operations occur on each day of the week. This
schedule helps ensure a systematic and organized process for
transporting goods to different locations efficiently and on time.
Each location mentioned represents a point in the logistics network
where items are managed before being forwarded to their next
destination in the supply chain.

4. What is the distribution gap?


The distribution chain starts from Haridwar to Medchal to Vishal Aroya
Sanpat(Super Distributor) to Distributor Surya. The distribution gap here
describing for Patanjali seems to involve various challenges within their
distribution network.
Stock Delays: Distributors facing problems related to stock not arriving on
time can disrupt their supply chain. This can lead to shortages and impact
the distributor's ability to meet customer demands efficiently.

Fund Issues: Many times, funds not reaching distributors on time can lead
to cash flow problems. If funds are delayed or stopped in the upper level
in the supply chain, it can hinder their ability to purchase and distribute
Patanjali products effectively.

Rotation of Funds: Efficiently managing funds is crucial in the distribution


business. If there are issues in the rotation of funds, it can affect the
distributor's ability to reinvest in their business and maintain inventory
levels.
Shortages of Ghee and Mustard Oil: Shortages of specific products like
ghee and mustard oil can result in inconsistent product availability for
customers. This can impact customer satisfaction and potentially lead to
lost sales.

Covering Other Companies: Distributors often handle products from


multiple companies. While diversifying their portfolio can be
advantageous, it can also be challenging to balance the needs and
demands of different brands.
5. What is the way forward for filling this gap?
Filling the distribution gap we can use different strategies for Patanjali:

Supply Chain Optimization:


Evaluate and optimize the supply chain to reduce stock delays. This might
involve working closely with suppliers, improving forecasting accuracy,
and implementing efficient logistics and inventory management systems.
Work closely with suppliers to ensure a stable and timely supply of
products.
Diversify suppliers if possible to reduce reliance on a single source.

Collaboration with Distributors:


Collaborate closely with distributors to share demand forecasts and
market insights. It can increase the close analysis of what is happening in
the market.
Provide training and resources to help distributors improve their
inventory management and financial practices.

Customer Segmentation:
Segment customers based on their buying behaviour and preferences.
Increase the products according to the demand of different segments.
Prioritize high-demand products for customers who frequently purchase
them. Increase the production of high demanding products like ghee and
mustard oil.

Funds Management:
Create a transparent and efficient system for fund disbursement to
distributors.
Set clear terms and payment schedules to ensure distributors have access
to the necessary capital.
Explore financing options such as lines of credit or working capital loans
to support distributors during periods of high demand.
Performance Metrics and Incentives:
Establish key performance indicators (KPIs) for distributors, including
stock levels, order fulfilment rates, and fund rotation.
Offer incentives or bonuses to distributors who consistently maintain
adequate stock levels and manage funds efficiently.

6. What below-the-line activity do you do in your market?

Below-the-line (BTL) Activities in marketing refers to promotional


strategies and activities that are not traditional mass media advertising.
BTL marketing is often used to create a more personal and interactive
connection with specific individuals or customers.
Here are some common below-the-line marketing activities done by
Patanjali and their Distributors:

1. Event marketing: when a new product is launched, interactive


campaigns are usually conducted to engage with potential customers
face-to-face with the intention of promoting their product by educating
people about the benefits of these ancient practices, highlighting the
benefits of that product and creating memorable experiences.

2. In-store Marketing: Creating eye-catching displays like Banners,


Posters, and setting up Stalls to attract customers attention and influence
their purchasing decisions.

3. Trade Promotions: Incentives are offered to distributors to encourage


them to promote and sell Patanjali products over competitors.

4. Promotions and Discounts: They offer special promotions, discounts,


schemes to encourage immediate sales or repeat purchase.
Promotion and discounting are classified into 2 types-
i) Primary- which is, promotions and discounts given by the Company
ii) Secondary- promotion and discounting done by the distributors.
Here, initially the distributor invests his money in promotional activities,
which he'll recover next month, along with his salary/incentives.

5. Community Engagement: Patanjali engages with local communities


through sponsorship, health check-up camps etc. which help the
company reach its target audience and that not only promotes their
product but also helps them to reinforce its brand image.

6. Word-of-Mouth Marketing: Patanjali relies heavily on word-of-mouth


marketing by encouraging satisfied loyal customers to spread the word
about their products/services through reviews, Social sharing etc.

BTL Activities are often more cost-effective. Businesses like Patanjali are
looking to engage with specific segments of their target audience, so their
marketing approach has often emphasized the natural and Ayurvedic
aspects of its products, aiming to connect with consumers seeking
healthier and more traditional alternatives.

7. Are they fulfilling sales objectives?

Yes. There is the monthly sale of 15 lakhs.

8. what challenges you are facing in the execution of below-the-line


activities (Promotional events, Direct mail, Email marketing, Point of
sale display at retail outlets, Product sampling, Social media
engagement.

The challenges faced in the execution of below the line activities:

Promotion and discount


Profit Margins: Offering too many discounts or promotions can squeeze
profit margins, impacting the overall financial health of the business for
example profit margin in ghee and oil is just 3.5% abd some times this
also decreases
Inventory Management: Managing inventory during promotions and
discounts can be complex, leading to overstock or stockouts for example
shortage in ghee and mustard oil resulted in 20 days delay and led to
competitor advantage.

Event marketing :
Event Planning: Coordinating logistics, venues, vendors, and schedules
requires careful planning and can be time-consuming.
Event Promotion: Effectively promoting the event through various
channels to reach a wider audience can be a complex task because
sometimes people destroy posters and banners by writing something on
them or tearing them apart .

Channel Selection:
Choosing the right mix of marketing channels (e.g., social media, email,
PPC) for a campaign can be complex during a campaign .

Email- marketing :
Email Deliverability: Ensuring that emails reach recipients' inboxes and
avoid being marked as spam can be challenging.(kbhi kbhi email dekhte
nhi h )

Product – sampling:
Costs: Offering free samples can be expensive, including production,
packaging, and distribution costs.
Waste: Product sampling can generate waste if recipients don't use or
consume the samples, which can be environmentally concerning.( kbhi
kbhi log lekr hi samney dispose off krdete h )
Feedback: Gathering and utilizing feedback from sample recipients to
improve the product or marketing strategy is important.

POS challenges:
Space Limitations: Limited space at the checkout area can make it
challenging to design eye-catching and functional displays
Inventory Management: Ensuring that the products featured in the POS
display are adequately stocked and replenished is important.

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