Tuesday, 18 October 2016

Will PATANJALI be able to survive in market for longer duration

Even as Indian FMCG (fast moving consumer goods) companies battle an industry-wide slowdown in growth, many are hitching their wagons to the herbal-organic consumer products category, following in the footsteps of the Baba Ramdev’s Patanjali Ayurved. The yoga guru-cum-business czar is not only among the highest advertiser on television today, but by doubling up as brand ambassador for his company, he is increasing awareness for all ayurvedic-herbal products and further opening up the space. And companies such as Emami, Hindustan Unilever (HUL), Dabur and Humalaya Drug Company are rebooting their category strategies and investing in new products and making new acquisitions to reap in the promise of the herbal age.


“While lower price tags may help them gain market share in the short-term,  that in the medium to long term, entry of these new players will help expand the market pie and will be beneficial for all"

Providing a wide range of products may decrease core competency!!!!
Will they be able to  survive for longer in market!!!!




13 comments:

  1. discussion on this topic will help to understand core competency vs wide product portfolio.

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    1. patanjali will able to survive if they maintain quality

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  3. Patanjali will survive because nowadays people are becoming health conscious. They have started using these herbal products because they get the best quality at their affordable prices and have no side effects to their health.

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  4. I think Patanjali has done very well. They have scaled up at a phenomenal pace. The challenge is now what they do when more and more players enter and start capitalising on the trend — how they keep refreshing their brands.
    Distribution is going to be key because beyond a point they will not be able to rely only upon their own franchise stores. India has more than 6,25,000 villages. So, if you have to reach everywhere you have got to use the existing retail supply chain.

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  5. I agree with kanika and anshu and would like to ask whether by increasing the product line will they be able to retain there quality for all products.Because customers prefer quality products .

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  6. Patanjali outsource its many products which may lead to decline in quality..

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  7. I think patanjali will retain their quality products no matter whether they are increasing their product line because their main objective is to make people healthy which is possible only through the quality products but at the affordable prices and the quality is the important component on which patanjali based.

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  9. Since they are outsourcing many products it will be difficult for them to survive because quality doesn't comes free a lot of money is needed to maintain quality

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  10. Absolutely right Sauranh that nothing comes free but PATANJALI have money. Its turnover is ₹5,000 crore (US$740 million) (2015-16).

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  11. Now Patanjali is targeting Rs 10,000-crore revenue in 2016-17, after sales grew 150 per cent in the previous financial year to Rs 5,000 crore.

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  12. ramdev said patanjali will invest over rs 1150 crore to st up six processing units and one R&D center in current fiscal.
    The units, said Balkrishna, will come up at drought-hit areas such as Vidharbh in Maharashtra and Bundelkhand region in Uttar Pradesh and Madhya Pradesh, and at least four of these will become operational by the end of the fiscal. He expects these to create more than 5 lakh jobs.
    he also said to reach our target market we will venture into new categories such as dairy,animals feed khadi garments for yoga,We will enter dairy segment this year with the launch of milk, cheese, butter milk and paneer this year.

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