Escolar Documentos
Profissional Documentos
Cultura Documentos
AND
EFFECT ON THE FMCG SECTOR IN INDIA
STRATEGIC MANAGEMENT
GROUP 10
MIHIR SANGODKAR B15029
NIKHIL CHOUDHARY B15031
NIRRANSH JAIN B15032
PRAKHAR AGARWAL B15035
RUTU VELANI B15044
COMPANY HISTORY
TIMELINE
1997
1 PAL started as a small pharmacy in Haridwar
2006 2
Established as a Pvt. Ltd. company
3 2010
The world’s largest food park opened
2012
Hit revenues of Rs. 450 cr, 450 stores 4
In 1997, Patanjali Ayurved Limited (PAL) started Acharya Balkrishna established Patanjali Ayurved
as a small pharmacy in Haridwar, by P.P. Swami Limited as a formal private company on 13th
Ramdev Ji Maharaj January 2006 along with Baba Ramdev .
TIMELINE 2015
5 Hit revenues of Rs. 2,000 Cr., has 4000
stores
2015
Deals signed with Future Group and DRDO 6
PRESENT
On 5 January 2010, the world’s largest food park opened 20km from the holy city of Haridwar,
Uttarakhand, India. The INR 500 cr Patanjali Food and Herbal Park is spread across ~95 acres
in first phase; and has generated direct employment for 7,000 people. The construction started in
February 2009 and was completed in a record time of less than a year
CURRENT SCENARIO
Aug 2015: CLSA came out with a report titled
4 “Wish you were listed, Patanjali Ayurved” and
FACTS summarized the threat it presented to listed
counterparts
EXISTING NEW
PRODUCTS PRODUCTS
Market
Penetration Product
development
EXISTING
MARKETS
- Yoga Shows
- Research in
- Spiritual Ayurveda and
lessons in herbal medicines
ashram
PRODUCT LIFE CYCLE
NEW MARKETS
Market Diversification
Development - Cosmetics
- Targeting youth
and newly
- FMCG Products like Patanjali Shampoo and health
health conscious products drinks are in growth stage of the life cycle
customers - Health Drinks New diversified products like fertilizers and
clothing are in introductory stage
BUSINESS STRATEGY
MARKETING AND
BRAND BUILDING
04 ADVERTISEMENTS
03 ONLINE & OFFLINE SHOPPING EXPERIENCE
Commercials on Star TV and
Authentic and trained sales consultants ZEE TV
Customers problems solved on 1:1 Simple ads to disseminate
interaction info – INFOMERICALS
Easy to navigate website UI with full details No false promises
HD resolution photos and videos of products
Spending is only 1 – 1.5
02 YOGA SHOWS % of revenues turnover
Pan India Yoga Shows
Broadcasted in 170 countries 05 SOCIAL MEDIA
3 books and 2 video CDs 500k followers on twitter
6 million Facebook page likes
01 PERSONAL BRANDING 50k subscribers for YouTube
channel
Cult personality and charisma of Baba 11 million views on YouTube
Ramdev channel
535 branches of Patanjali Yog Ashram Language – Hindi and English
Regular updates and replies
PRODUCT
DEVELOPMENT – 3 PILLARS
Patanjali vs Competitors Price Comparison
1. COMPETITIVE PRICING
40
Why such low pricing?
Business Philosophy – “Upkar and Not Vyapar” 35
Make in-roads in lower and lower middle class of society
30
How is it possible? 25
Low input costs of production
Discount %
Procurement of RM directly from farmers avoiding 20
middlemen
15
Very Low administrative expenses-
Patanjali – 2% , Industry – 10 % 10
Impact?
5
Profit Margin – 11.3%
Revenue – 2000 crores in FY 15 0
Revenue expected in FY 16 is 5000 crore Product
Chyawanprash Juice Ghee honey
2. NATURAL RAW MATERIAL Facewash Shampoo Toothpaste Bathing Soap
Cornflakes Detergent
3. INNOVATION e.g. Amla candies
DISTRIBUTION AND
SUPPLY CHAIN
HIRING POLICY
TIMING OF PRODUCT LAUNCH
Emphasis on hiring expert people with domain knowledge
Started with Ayurvedic medicine – established
Doesn’t hire MBAs or “Digital Ninjas”
faith
Preferred Degree – M.Sc. Biology or M.Sc. Pharma Next, health supplements and consumables –
cereals, wheat – “WoM publicity”
Finally FMCG products – soaps, detergents,
COMPANY CULTURE cosmetics, baby care products etc.
PURCHASING,
FIRM INFRASTRUCTURE 01
LOGISTICS
PRODCUTION
04
DISTRIBUTION
MARGIN
MARKETING &
SALES
SERVICE
02
03
HUMAN RESOURCE
MANAGEMENT TECHNOLOGY AND PRODUCT
DEVELOPMENT
VALUE CHAIN
ANALYSIS
FIRM INFRASTRUCTURE
Mega marts are being built across the country
High rates of hiring from other Swadeshi Model, local talent not top tier
FMCGs
Non Smokers, not alcoholics, High emphasis on training, employee
Satvik work life balance – Spiritual not corporate
culture
IDEA
VALUE CHAIN
ANALYSIS
Growth has slowed down in the past 3 years 2 • Product piggybacking like PowerVita and
Atta Noodles
due to GDP, Inflation, low IIP and No SKU • Increasing the size of the Ayurveda pie –
innovation or refinement of Supply Chain Indulekha + Ayush = HUL
Sri Sri Ayurveda
4
Top players by Market Capitalization are HUL • ‘Patanjali Destinations’ – Future Group
and ITC • INR 10 billion at Big Bazaar against INR 13
billion by HUL
THANK YOU