Patanjali: Business Model and effects on the FMCG sector in India
Vistaar Dabur PPt (Philip Sunny)
1. Project Vistaar
Submitted By : Philip Sunny
Email Id :philip.sunny15@gmail.com
College Name: Chitkara University
Mentor Name: Mr.Chirag Singh
Immediate Reporting :Mr.Arun Gupta
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2. Project Discription
• To map and convert all the Patanjali Outlets in
Delhi & Western UP
• Patanjali outelts to be mapped were
Patanjali Chikitsalaya ( Type-1)
Patanjali Arogya Kendra (Type-2)
Other Retailers selling Patanjali products (Type-3)
Patanjali Megastore
Dabur India Ltd 2
3. Security Money For Patanjali Outlets
• Patanjali Mega Store – INR 11 Lakh
• Patanjali Chikitsalaya- INR 5 lakh
• Patanjali Arogya Kendra – INR 21000
• Swadeshi Kendra – INR 5000 ( only patanjali)
• Swadeshi Kendra- INR 5000+ 1100
Dabur India Ltd 3
4. Patanjali Overview
Founded 2006
Revenue INR 5000cr
Strategy
• Current focus on big segments within the FMCG market
• They are perceived as a brand offering total healthcare solution
• Caters need of consumers across age groups (15-45 years old)
Operating
Model
• Chikitsalayas (franchise dispensaries)
• Arogya Kendras (health centres which sell Ayurvedic remedies)
• Swadeshi Bhandars (Patanjali outlets for selling Patanjali’s FMCG products
alone)
• Patanjali Megastore
• Open market (for FMCG products alone)
Product & Services
Portfolio
• 800 SKUs across categories like soaps, shampoos, dental care, balms, skin
creams, biscuits, ghee, juices, honey, flour, mustard oil, masala, sugar, incense
sticksetc.
• Over 300 medicines for treating a range of ailments and body conditions, from
common cold to chronic paralysis with doctor consultation, yoga advice
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5. Patanjali’s core is driven by ‘Ramdev Baba’, yoga, health credentials & honest pricing.
Recommendation/word of mouth also plays a vital role in driving the equity
Natural
Pure
Word of Mouth
Ayurveda
Yoga
Retail Outlets
Value for Money
Range of products
Media Visibility Health Credentials
Trust
Political Connection
Factory/Farms advertising
Patanjali Hospitals
Patanjali Doctors
Relevant to day to day life
through product range.
Honest Pricing
Works like NGO
Propagates healthy life
Within the reach of common man
Transparency
Proof of efficacy
High satisfaction with product experience
Authentic Products
6Dabur India Ltd
LOGO
6. 454
849
1,195
2,420
5,000
FY12 FY13 FY14 FY15 FY16F
Patanjali Revenues (INR Crores)
Revenues from different product categories in FY’15
Product
Revenue
contribution
Growth
rate*
Food 37% 100%
Medicines 19% 31%
Toiletries 15% 54%
Dentalproducts 11% 46%
Haircare 11% 51%
Cosmetics 7% 41%
• Source: News articles, Market Research reports
* Over2013-14
• Key Brands are Desi Ghee,Dant Kanti,Kesh Kanti
• 69% of the sales comes from North India, with desi
ghee, atta and mustard oil being the fastest moving
SKUs
Growth Summary
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7. Patanjali and Dabur operate in different spaces in
consumers mind
1. Moving towards a generalist
FMCG company
a) Presence in all day to day
items : Grocer
2. Pure/Natural and authentic
products.
a) Ghee
b) Aata
c) Honey etc.
1. Seen as a Specialist
a) DCP – Immunity
b) Pudin Hara - Digestion
c) RTP– Dental Problems
d) Vatika/Amla – Hair
Problems
2. Presence in specific product
categories with ayurvedic
credentials
Patanjali Dabur
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9. Patanjali’s focus is more towards grocery, staples and ready to eat food
category, where Dabur is not present.
Business Overlap mainly in Chyawanprash, Honey, Toothpaste, Shampoo &
Hair Oil.
Healthcare
Chyawanprash
Honey
Ayurvedic
Medicines
HPC
Rose Water
Beauty Cream
Shampoo
Hair Oil
Toothpaste &
Toothpowder
Foods
Juices
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10. Scope of Work
• Area of Work-North Delhi & Western UP
• Stockists Covered-5
• Total Beat Covered- 40
• Total Outlets mapped- 133
• Total outlets Converted-123
Dabur India Ltd 11
12. Total Figures
• Total outlet mapped- 133
• Total outlet converted- 123
• Conversion rate- 92.48%
• Total Sales- Rs.95614
• Average Sales/ outlet- INR 777.34
• Total lines Sold- 517
Dabur India Ltd 13
13. North Delhi
• Total Number of Patanjali : 100
• Total Number of Billed Patanjali: 91
• Total Number of Unbilled Patanjali: 9
• Conversion Rate: 90.91%
• Total Number of Stockist Name: 4
1) Vishal Traders (T=53,B=48,UB=7,RB=16),
2) Ganpati Enterprises (T=13,B=14,UB=0,RB=1)
3) Shri Ranjeet (T=15,B=14,UB=2,RB=1)
4) Vardhman (T=19,B=18,UB=1,RB=6)
14. North Delhi
• TOTAL BILL VALUE = RS 50398
• TOTAL LINE SOLD = 318
• AVERAGE BILL SIZE= RS 559.97
15. Western UP
• Total Number of Patanjali : 33
• Total Number of Billed Patanjali: 33
• Total Number of Unbilled Patanjali: 0
• Conversion Rate: 100%
• Total Number of Stockist Name:
1. Sanchar System(T=34,B=34,UB=0,RB=1)
16. Western UP
• TOTAL BILL VALUE = RS 45216
• TOTAL LINE SOLD = 199
• AVERAGE = RS 1458.58
20. TYPE OF RETAILERS
• SCARED RETAILERS
• LOYAL RETAILERS
• MARGIN BASED RETAILERS
• DUAL RETAILERS
• OPPURTUNITY BASED RETAILERS
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21. OBSERVATIONS-1
• RESPECT FOR DABUR
• PATANJALI MARGIN AND SCHEME
• MAPPING PATANJALI BEAT
• PATANJALI DISTRIBUTION CHANNEL
• PRICE CLASHES
• NO REPLACEMENT
• VED DON’T HAVE MANY OPTION
• SHORT SHELF LIFE
• NO CERTIFICATION
Dabur India Ltd 22
22. OBSERVATIONS-2
• NO SUGAR FREE PRODUCTS
• LARGE DEMAND FOR NICHE PRODUCT
• POOR BRAND KNOWLEDGE
• NO WHOLESALE CONCEPT
• NEED OF PAPER PAMPLETS
• ASKING FOR DISPLAY
• STOCKING OTHER BRANDS – ZANDU, BAIDYANATH
• IS DABUR A SWADESHI COMPANY ?
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23. CHALLENGES
• SCOUTING PATANJALI OUTLET
• NOT ABLE TO MEET THE DECISION MAKER
• SHOP TIMING
• PRICE DIFFERENCE
• DEMANDING SAMPLE
• CREDIT
• PRESENCE OF OTHER BRAND WITH NEGATIVE
EXPERIENCE – e.g. GAIT
• MENTAL BLOCK WITH HCA
Dabur India Ltd 24
24. STAR HCA
NAME-MR.Amit
Stockist Name:VISHAL TRADERS
Patanjali Outlet- 50
Billed Outlet-47
Key Factors
Drishti Knowledge
Punctuality
Follows Seven Steps Of
Sales
Decently Dressed
Calm Behavior
Good Brand Knowledge
Great Commitment
towards his Job.
25. Reasons for Success
• Patanjali offers comparatively less margin
• Dabur’s offers a wider range
• Patanjali products doesn’t have all sizes in
products.
• No Replacement Policy
• Dabur a well reputed Swadeshi company
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26. KEY LEARNINGS
• Understanding S&D network of Dabur
• On-ground exposure - Live market working
• Leadership skills - Man-Management
• Negotiation skills
• Sales techniques - Steps of a Sales Call
• Learning Drishti software
• Bill (ECO, Bills, Lines, Margin, Scheme) - Sales Terminology
• Developing a Selling Story
• Analyzing Data
• Daily Planning & Developing implementable strategies
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