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AMRITA VISHWA VIDYAPEETHAM (UNIVERSITY),

BANGALORE CAMPUS
(MS-EMBA 2017-2019)
GLOBAL MARKETING

GROUP ASSIGNMENT - PATANJALI

DANTKANTI

Bharat Bhaskar - BL.BU.P2EMBA17003

Ganesha D- BL.BU.P2EMBA17006
Pavithra B - BL.BU.P2EMBA17010
Bhagyashri - BL.BU.P2EMBA17002
Group Assignment - Patanjali Dantkanti

Contents

Patanjali Positioning statement .................................................................................................... 2

Patanjali DantKanti - STP ............................................................................................................... 2

Product ........................................................................................................................................... 2
Product Strategy ......................................................................................................................... 3
Product Mix ................................................................................................................................ 3
Dantkanti Variants..................................................................................................................... 4
Branding Strategy ...................................................................................................................... 4

Pricing ............................................................................................................................................. 4
Pricing Strategy -”The Ultimate Price warrior”....................................................................... 5

Promotions - Integrated Marketing Communications .................................................................. 5

Patanjali Logo ............................................................................................................................ 6
Communication Strategy ........................................................................................................... 6
Recommendations ...................................................................................................................... 6

Place - Distribution ......................................................................................................................... 7

Patanjali follows threefold distribution network ...................................................................... 7
Channel Intermediaries ............................................................................................................. 7
Channel Systems ........................................................................................................................ 7
Channel Design of competitor – Colgate .................................................................................. 9

Conclusion - Integrating the Mix ................................................................................................... 9

Success factors – What went well .............................................................................................. 9
Suggestions - What could be done better .................................................................................. 9
Overall ...................................................................................................................................... 10

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Group Assignment - Patanjali Dantkanti

Patanjali Positioning statement

“For all those who are looking for healthier and quality toothpaste, dantkanti provides ayurvedic &
herbal touch, available at affordable price”

Patanjali DantKanti - STP

Dantkanti comes in different variants. The Segmentation of these are:

DantKanti Junior:

• Region (Geographic) – Urban, Semi-Urban

• Age Group (Demographic) – Children (5-12 years)
• Benefits (Behavioral) – Toothache, Gum problem

DantKanti Regular:

• Region (Geographic) – Urban, Semi-Urban, Rural

• Age Group (Demographic) - Youngsters(>12) and Adults
• Benefits (Behavioral) – Bad breath, fights Gingivitis

DantKanti Advanced and DantKanti Medicated

• Region (Geographic) – Urban

• Age Group (Demographic) – Adults and Aged People
• Benefits (Behavioral) – Sensitivity, Teeth Whitening, Pyorrhea prevention

Patanjali Ayurveda is targeting the value conscious customers with positioning based on natural, health & ayurvedic
product. Patanjali’s major strength, apart from its better product quality, lies in pricing.

Strong positioning on Ayurveda and health has driven its competitor to follow its suit, and in this way, positioning
of Patanjali has made it a market leader in bringing the change.

To summarize the STP of Dantkanti:

Segment

•For all people those who are looking for healthy and quality toothpaste products

Target Group

•People looking for ayurvedic/herbal products, middle or upper middle class

Positioning

•Offering home grown products, which are healthier and safe to use

Product
Patanjali Ayurveda has products in almost all the FMCG categories. The success of Patanjali Ayurveda can be
attributed by this presence. Patanjali Ayurveda has a rich product mix.

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Group Assignment - Patanjali Dantkanti

In a decade of its establishment, Patanjali sells products from detergents and toothpaste to noodles in an FMCG market,
which present massive space for expansion. This is the one of the difference between its competitors, who are in
market for more than a century, which still sells fewer products.

Product Strategy
The product/market strategy of the Patanjali group can be understood through Ansoff’s Matrix.

Current Products New Products

Current Market Market Penetration Product development
‐ Sachet ‐ Ayurvedic
‐ Coinage SKU ‐ natural
New Market Market development Diversification
‐ Targeting youth ‐ Cosmetics
‐ Rural market ‐ FMCG products
‐ Health drinks
‐ Chocolates

The packaging of Dantkanti is very simple, color: white. This may be to resemble purity and cleanliness. Product
distribution is done via exclusive 4700+ Patanjali stores, big retail chains like Big Bazaar, Reliance Fresh, and e-
commerce websites. The product quality is consistent and is able to meet the expectations of its target audience.
DantKanti claims to be different from others based on its constituent ingredients (natural extracts, herbs).

Product Mix

Patanjali products like Dantkanti are differentiated which appeals to the Indian belief in Ayurveda & natural
remedies.

Below are some of the sectors where Patanjali products are already doing great:

 Foods – Including jams, biscuits, noodles, oats, pulses and many other lines of food products.
 Beverages
 Healthcare & Medicines
 Personal care products
 Cleaning agents

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Group Assignment - Patanjali Dantkanti

Products where Patanjali is present and beating competition:

 Dabur Honey: Patanjali Ayurved is providing people with option to buy quality honey at around 30% lesser
price than Dabur.
 Colgate: Patanjali Ayurved is preaching how Colgate cheated people in early days. And how Dantkanti
ayurveda is the best way to treat your gums and your teeth.
 Patanjali Noodles: Patanjali Noodles rose to fame while Maggi was away from the market and has done quite
damage to Maggi, which once been the king of Noodle’s market.

Dantkanti Variants
 DantKanti Junior – Children (5 -12 Years)
 DantKanti Regular – Youngsters > 12 Years and Adults
 DantKanti Advanced– Adults and Aged People
 DantKanti Red - Adults
 DantKanti Aloevera Gel - Youngsters > 12 Years and Adults

Branding Strategy
Patanjali follows “Branded House” strategy in which the company itself is the brand and all the products are promoted
under one brand. This enables Patanjali to expense minimal cost on marketing activities. Dant Kanti is widely
accepted because of the image of Patajanli Ayurveda and brand equity is thus transferred from the parent brand.

Most of the other competitors like P&G and HUL follow “House of Brands” strategy. They try to make brand for each
of their product which results in heavy marketing cost.

Patanjali as a brand – stands for trust in the mind of people, company and dealers. In a strategic view point for further
market conquering, its reach should provide detail information about their products. The delivery system should be
improved coupled with regular delivery of products.

Pricing

Patanjali Ayurved has entered in an extremely competitive segment in the Indian FMCG industry. The main players
in India in this category are the likes of HUL, P&G, Marico, ITC etc. Patanjali has ventured into various segments
and hence the pricing strategy in its marketing mix is defined by the competition in that segment.

Patanjali products are priced as per competition so that it becomes easier for the customers to switch from their existing
brand and adopt their products. Patanjali noodles competes with Maggi, toothpaste competes with Colgate,
Chawanprash competes with Dabur, cornflakes compete with Kellogg’s and hence forth. This clearly shows that
Patanjali has replicated the already successful existing FMCG model and is focused on giving a healthier and natural
variant to its target audience. Thus the prices of Patanjali products are driven by segment, geography and most
importantly competition pricing.

Not just the pricing, Patanjali Promotional strategy has also played a vital role in company growth. Audience Research
Council India has conducted a survey between November 2015 and March 2016 alone, it features Patanjali among the
biggest advertisers in terms of total number of commercial ads released. It is said that Patanjali have spent Rs.360crore
during this period, compared to few of its big competitors like Colgate this is relatively big number.

Patanjali compared to its competitors followed a different ideology in terms of promotion. An independent consulting
firm conducted a survey on several focused groups in metros and tier one cities. It was found that the products are
brought mostly by people who have faith in yoga. These consumers are believers in naturopathy but are not necessarily

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Group Assignment - Patanjali Dantkanti

followers of Ramdev. From the beginning of the product launch Patanjali believed in naturopathy and Ayurveda.
These promotional strategies made them attract customers from urban world.

Considering the Pricing strategy, Patanjali did play with all its products by reducing its price compared to its
competitors. There are certain products which are placed higher than its competitors and the pricing varies. Patanjali
ghee, for instance is priced at a premium price. However, in some other categories the products are cheaper compared
to rival brands. So Patanjali is not failing the consumer in value proposition.

Pricing Strategy -”The Ultimate Price warrior”.

 Patanjali is called “The Ultimate Price warrior” and it entered the market to attack its competitors with Swadeshi
movement.
 Its pricing Strategy has helped Patanjali establish itself in market, its clearly penetrative pricing because Patanjali
knows that it cannot conquer the market with higher prices.
 They are also using price comparison as an effective marketing strategy.
 Its ingredients are natural and domestic; the cost of the product is lesser too.
 There is a drop of 15-30 percent of price in almost every product when compared to International Brands which
is helping Patanjali reach each and every household in India.
 Able to offer such discounts because of negligible Advertising and Promotion than other companies. Other
companies advertising and promotion ranges from 12 -18% of their total revenue per year.
 Discount is given as part of customer centric ideology and selling best quality product at attractive prices
 Dantkanti is the biggest competitor for Colgate, where Colgate has reported of worst revenue growth from past 4
years.

Promotions - Integrated Marketing Communications

Patanjali Ayurved goes with the Slogan “Prakriti ka Ashirwad”. Patanjali Ayurved has acquired the requisite fame
and popularity among people because of the globally recognized Yoga Guru, Baba Ramdev. This brand ambassador
of Patanjali is single handedly responsible for the success of the brand. His contribution to people’s life through Yoga
is incredible hence people felt aligned towards him when he launched his very own Indian FMCG Company.

While a lot of people shifted to Patanjali Products because of Baba Ramdev, a pool of Indians started following him
when they realized how good and cheap Patanjali products actually are. Patanjali Ad campaigns have always focused
on surpassing information to people that “revenue of Patanjali is for Charity and not for Brand
Owners”. Secondly, it is better that the revenue generated from day to day products remains within India rather then
the profits going out to foreign companies. Till date, Indians did not have many alternatives to foreign products but
now they do have localised products.

Baba Ramdev took the opportunity in his hands and has started influencing Indians by sharing information about price
gap and how useful herbal Patanjali products actually are. Baba Ramdev has ceased the opportunity with both hands
and has made huge difference to the branding of Patanjali Ayurveda. Now, Patanjali is also selling the products online
through E-commerce, increasing their penetration even further.

Overall Ramdev is playing a leading role in promotion of Patanjali products. Ramdev talks of pure ghee derived from
cow’s milk. In several parts of our country, ghee is still the preferred cooking medium. And he is putting a stamp on
it. That’s a big appeal. Patanjali hair oils are positioned as chemical-free, natural products. Such positioning is
attractive. Clearly, there is a fit between what Ramdev stands for, what his products offer and what consumers are
looking for. This promotional strategy has made Patanjali stand out from their competitors.

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Group Assignment - Patanjali Dantkanti

Patanjali Logo
Patanjali Logo mainly signifies the Promotion / Integrated communication of its products and the values company
stands for

1. Om – Back to Ayurveda which signifies core of Hindu religion and Indian tradition
2. Yogi – Represents Baba Ramdev (The face of Brand)
3. Sapling - Indicative of herbal and natural product of Patanjali
4. The Strokes of Green, white and Saffron colours in the bottom right corner are the colours of Indian flag -
Stand for Swadeshi (Being Indian)

Communication Strategy
Non-Pushy Communication Strategy

 Baba Ramdev did not focus on proclaiming that his brand is best, Instead he made people aware of evils of
MNC’s , corporate corruptions, exploitation of farmers and the effects of fertilizers and chemicals.
 So environment was created where consumers wanted to see if the alternatives to above evil was usable
 Hence had a positive environment to try Patanjali products

Direct Communication Strategy

 Baba Ramdev opted for direct interaction(Word on Mouth) with consumers in Yoga shibiras by this an
emotional feeling was transferred and felt by communicator and consumer resulting in higher degree to act
for communicated message
 Patanjali entered the traditional media (TV) through Aastha channel
 Patanjali Advertisements are short, strictly informative and storyline has traditional, family-oriented

Recommendations
 This model and the current target market(the fan base) is on the point of reaching saturation, Hence the
company decided to enter the traditional retail model
 Company have to move towards more focus on TV advertisements which are more creative and reach the
consumer minds of all categories
 Pay more attention towards social media promotions so that it can attract youths
 Some Patanjali Ads have been found to violate the advertising code of India (six product packaging
communications and two television ads were found to be in violation of code) and the ASCI council said it
“Unfairly denigrates” products of its rivals in the advertisements
 An advertisement for dantkanti toothpaste made by yoga guru Ramdev’s Patanjali Ayurved asks customers
and shopkeepers to “Use our products like crores of deshbhakt Indians and contribute in the service and
prosperity of the country”. A Bareilly- based advocate has lodged a complaint with (ASCI) against the
advertisement, citing violation of rules. So Patanjali should change their advertising concepts so that there
is no violation in rules.
 Promotions can be made in other modes such as in public places. Below are few of our ideas
 Plant saplings/plants in public places and promote Patanjali
 Promote Patanjali in Public places in villages like toilets, Fields and also e –toilets in cities so that
common man will be aware of the product

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Group Assignment - Patanjali Dantkanti

Place - Distribution

Patanjali follows a ‘Branded House’ strategy

Marketing Channel strategies of Patanjali

Patanjali Follows 3-level marketing channel

Manufacturer

Super Distributor

Distributor

Retailer

Consumer

Patanjali follows threefold distribution network

1. Super Distributors
2. Distributors
3. Retailers

Super distributors would oversee 5-6 distributors who would in turn manage 15-20 Retailers. Advantage of super
distributor for Patanjali is that the goods bought were no longer Patanjali’s responsibility.

Channel Intermediaries
Patanjali follows Intensive distribution as in around 15000 retail outlets Patanjali products are sold.

Channel Systems
As Patanjali distribution is both online and offline including its own Kendra’s and retail outlets hence it has adopted
multichannel marketing.

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Group Assignment - Patanjali Dantkanti

Arogya Kendra
Dedicated Stores Chikitsalaya
Swadeshi Kendras

Big Bazaar
Hypercity
More
Super Markets
D'Mart
Offline Reliance
Star Bazaar

Appolo Pharmacy
Pharmacy
Med Plus

Yoga Camps

Post Office

FlipKart/Walmart
Amazon
Paytm Mall
E-commerce Big Basket
Online Grofers
Shopclues
Netmeds

Patanjali Online App

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Group Assignment - Patanjali Dantkanti

Channel Design of competitor – Colgate

Colgate works in 3-level distribution system

Manufacturer

Regional Distributor

Sub Regional Distributor

Retailer

Consumer

Conclusion - Integrating the Mix

Success factors – What went well

 Patanjali, with all the strong guidance and support of Baba Ramdev’s ambassadorship, has got a good
penetration entry into the market it needed.
 Patanjali, as company, is doing great in attracting new consumers with continuous innovation and new
marketing strategies.
 Strong positioning on Ayurveda and health has driven its competitor to follow its suit, and in this way,
positioning of Patanjali has made it a market leader in bringing the change.
 Patanjali is launching wide variety of products. This gives them the upper hand over other brands and this
strategy keeps them away from being a direct competitor for any particular product.
 Overall Patanjali being a startup company is doing great compared to its competitors and it recently
listed 30 pipeline products in production by end of fiscal year 2017.
 Swadeshi factor has worked well. They are going with “Make In India”compaign to gain more attention
from the customers.
 Patanjali Dantkanti having 'natural' ingredients now account for nearly a fifth of the overall toothpaste
market. Keeping the changing preferences of the customers, other toothpaste companies have also launched
'herbal' brands.

Suggestions - What could be done better

 Patanjali being a startup company need to come up with a strategy to compete with the market giants like
Colgate over the Price war and acquire the market share. We feel that “Price war” is not a solution to
compete with the competitors and it will not work on the long run for Patanjali.

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Group Assignment - Patanjali Dantkanti

 Similarly, Patanjali’s patriotism marketing strategy might only work on only subset of people in India
and not for very long.
 To globalize their business, they have to be Product Quality centric and focus on delivering highest
product standard and work on globalizing their business in order to compete with other Multi national
brands. Should ensure to maintain (if not improve) the same level of quality in future as well.
 Company have to move towards more focus on TV advertisements which are more creative and reach the
consumer minds of all categories
 They may also look at investing more in research and innovation to provide their customer base with unique
choices.
 They should also ensure that their product will available everywhere without any hassle.

Overall
An IIFL study shows that Patanjali could attain a net turnover of INR20000 crore by FY20. If Patanjali can
concentrate of globalizing and change their market strategy to attract other non-exiting customers towards them, this
company can be of great treat to its competitors and it would reach the predicted revenues in short time.

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