PATANJALI AYURVEDA: || Commercialising Business In Non Commercial Way || HOW THEY DID IT ? || Analysing The Invisible Factors ! ||

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PATANJALI   AYURVEDA:

 || Commercializing Business In Non Commercial Way ||
HOW THEY DID IT 

|| Analyzing The Invisible Factors  ||

Now these days there is only one discussion that how Baba Ramdev Touched the Turnover of Rs. 2000 Cr By his FMCG business just in few years???

However he himself was not carrying any field experience, but he did what Emami & other well established FMCG Companies Could not do in Decades.

More Astonishing factors is that he did it without support of any formal marketing activities /advertisement what other companies do by spending huge amount on TV and other media for branding.

When Baba Ramdev launched his business, most of us and boardrooms were not serious about his glorious future, but now these days’ boardrooms / brand pandits are busy to solve the mystery of success secrets of Patanjali Ayurveda Brands.

However, Patanjali Ayurveda was having different challenges at its beginnings.Few of them are following……..

1.    New entry in heavily competitive & penetrated FMCG market.

2.    Establishing an effecting channel to serve the consumer across country.

3.    Huge Branding Expenditures Management.

4.    Competition with well established and performing MNC / Indian Brands & market Players.

5.    Time Constraint.

The most interesting thing is time constraint. What Patanjali Ayurveda did, most of established brands take time of 2-3 decades.But Patanjaly Ayurveda spreads it’s wings just span of few years.

It is well Understood that task was not so easy.Understanding the success dynamics behind story is really not so easy.

However a keen Observation can come across few results.

 Lets Start “Analyzing Invisible Factors For Visible Results” Of Patanjali Ayurveda success.

De facto,Baba Ramdev Patanjali Ayurveda is great Success example of “Commercializing Business In Non Commercial Way”.

Into-to, Patanjali Ayurveda achieved all these huge turn over of Rs 2000 Cr Just In few years without any Huge Commercial marketing activities what is carried out by all professional FMCG Companies on day to day basis. i.e. ATL / BTL activities etc etc.

However, every one is saying that this success is achieved in less than 10 years time period, and analysis may be done in following points.

1. Pre Launch Latent Preparation: Success root of Patanjali Ayurveda goes back decades when Baba Ramdev started his campaign of Yoga / Bharat Swabhiman / Swadeshi Abhiyan.During his campaign, a latent message was seeded deeply in subconscious mind over the years by making aware people for Healthy life with swadeshi products. Hence a Psychological latent need was created well years before in consumers mind for such products which can provide him and lateron conversion of this latent cues into active triggers to accept brands hence movement of consumers to purchase the same.  Lets study the concept i following points..

(A) Physical attribute satisfaction of a products.

 (B) Emotional satisfaction and feeling proud in some way i.e. we are using our own product / we are using natural product /  we are contributing for our country /culture by non purchasing MNC’s Products. Factor B is known as “advance Psychological blocking of Consumer mind to inhibit purchase of existing brand”.

In this way Baba Ramdev not only prepared a huge future consumer class by brainwashing but successfully turned these class of consumer later on on launching of his brands for initial demand creation which most of company fails. All these took more than decades time.

2. Selection of Channel Partners / Distribution Network:   As normally, all FMCG companies goes for traditional distribution channel in which products reaches to final consumer via different partners i.e. Dealer / Distributor -> Retailer -> consumers.

In this case baba Ramdev  chosen a different way i.e franchise model means opening franchise in some selected area where competition was not available because of non availability of other competitive brands as offering for consumers.Notable Point is that all the initial Franchise were none but majority was their own followers who invested not for business but their major focus was earning becoz all these initial Franchise owner was not able to make heavy investment for taking distributor of established company.

Again Here support received from his own followers which were tuned by investing decades times by Baba Ramdev by making direct interaction during his yoga shivir/campaign and other campaign in silent & Indirect way.

However most Probably,if Patanjaly Ayurveda entered in market by traditional dealer distributor network management,he might could not get that much success due to different conditioned channel resistance/Barrios available in traditional channel which inhibit / or slow down speed of success rate of any New product.

Even today,Patanjaly Ayurveda’s products are not well welcomed by traditional shops.          Reasons???????....... as I told above…..Conditioned Channel resistance by channel partners i.e by distributors/dealers/shopkeepers.Few examples of such Channel resistance is.. Credit period,Expiry & damage claims,product replacement,services etc etc etc, what all other professional companies provide to fight with competition.

Remember !!!!!  even in future if Patanjali ayurveda enters into formal distribution channels system,growth rate will not be that much high and Patanjali Ayurveda Must have to face Tremendous problems.It will be a potential challenge,threat and limiting factor for growth of Patanjaly ayurveda after saturation of Franchise Model and patanjali ayurveda may not beat competition with Professional companies.

3. Communication Method to Consumer to Convince them to act for purchase of products: In A traditional way Professional companies establishes communication with consumers via indirect way or say by secondary medium i.e. TV,News Paper.

While Baba Ramdev established direct interaction with consumers during their campaign / shivir.Plz remember, direct communications is far more effective to put it convincing impressions in consumers mind becoz a emotional feeling can be transferred and felt by communicator and consumer both resulting higher degree / chances of consumer tending to act for communicated message.

This way of communication was so effective that all his followers tends to turn a future potential consumers and same is reason that when Products were launched a huge number of potential consumers were available in market to turn as real buyer.

4.  Pricing Policies : Patanjali Ayurveda's products are available on 20-40% cheaper prices in comparisions of MNC products.Higher pricing of mnc are due to their expanses for hiring Brand ambassadors, heavy market promotions expanses etc. Here in case of Patanjali Ayurveda,Baba Ramdev himself played a well defined role of Brand Ambessedor for Umbrella Brands...........This also tells us that a well known filem/ sport star doesnot gurantee of success but a better effective message which can explains invisible & secondary benefits of products may also be  a success reason.Here meaning of secondary Benefits of Products are Invisible emotional factors e.g. feeling for contribution for making country,self growth with the growth of country,Holistic  approach etc.All these invisible factors are responsible to develop a strong bonding between product & consumers.In nutshell pricing policy is very success to realize the customer  genuinely "Value For Money" concept .
5. Discovering Initial Consumers:  When ever any new product is launched /placed in market,it is always tested by specific class of consumer who tries it first. Such Consumers are knows as “INNOVATORS” who are  tries new products, taste it and rate it about its quality and satisfying capability.The total percentage of such customers are very low – 2% only of all Potential available customers in market.Later on these innovator recommend the product & makes a repeat demand and generate other consumers for mass acceptance of product in society.

Corporate world still searching reason behind Success Of Patanjali

If we analyze, we will find that in case of Patanjali Ayurveda, The innovator / initial class of consumers were none but their own follower.It is assumed that approximately 70 Millions followers are there for Baba Ramdev. It is a very huge number of customers in comparison of normal professional brands launching, which is enough sufficient to make any product successful.Assuming 2000 Cr Rs. Turn Over / annum, each innovator quota fall for only approx. Rs. 300 Purchase per annum of Patanjali Ayurveda Products which is quiet high in comparison of traditional launching innovators.In this way Pillar of Success  for Patanjali Ayurveda is None but follower of Baba Ramdev or say “Pr-Prepared Consumers” over periods of decades.

AND ABOVE ALL…………..

5. Self Actualization & Contributing Feeling:  And above all, Baba ramdev was successful to develop a self actualization and contributing feeling to building Country. This feeling was well developed in advance by “Swadeshi Movement campaigns” across the decades.

SELF  ACTUALIZATION  MESSAGE  BY  PATANJALI

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Till Date major contributing factors for success of Patanjali Ayurveda are followers of Baba Ramdev as their potential consumers.Patanjaly Ayurveda is still not able to crack the traditional channels/shops.

However if Patajanli Ayurveda is coming for  traditional channel,they have to face several challanges like credit facility,replacement,expiry etc what Patanjali is perhaps not providing till now on their Franchise stores.

Further it will also be an interesting fact that if Patanjali Ayurveda products are placed on Traditional shops,what will be degree of shopkeeper's/consumers interest to sale/purchase their products on priority where 100 of other brands are available and that will be a true performance of Patanjali Brands in open competitive environment.

 It Looks that Patanjali Ayurveda is more interested in other untapped non traditional types of FMCG channels like franchise and khadi Bhandar etc etc etc where degree of open competition is very less ???? What factors are inhibiting Patanjali Ayurveda to place their products on general shops which counts approx 9 million in India.  

They day will be known as best success day of Baba Ramdev Swadeshi Abhiyan when his products will be accepted on these general shops across India and this is real challange for Patanjaly Ayurveda because most important success yardstick for FMCG Industry products are placement and acceptance of products on  available shops across Universe / country rather than Business Turnover. Or it also may be possible that succes of Patanjali Ayurveda Continues via this channel than Baba Ramdev Is definitely going to define new Distribution System for FMCG Industry and others industry Players will start follow this new channel dynamics.

As Conclusion, we can say that to understand the success story of Patanjali Ayurveda, we have to analyze the Invisible factors / Forces working for success of any campaign. All these Invisible factors are not easily realized / observed by marketers, hence success storied are not unveiled hence not fruitful when copied by others.

The Invisible Factors / Business dynamics are least studied /understood by marketers, but put deepest impact on consumer’s psychology to decide their course of action for accepting /rejecting a brand.

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The author is Marketing & Sales Expert Professional / Consultants. (FMCG / CONSUMER GOODS)

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