Patanjali is considering expanding into the Canadian market. A PESTEL analysis finds that the Canadian government supports natural health products and herbal medicines. There is a large Indian population in Canada open to Patanjali's ayurvedic products. Hofstede analysis shows cultural differences between India and Canada but opportunities for Patanjali to adapt successfully. Primary research was conducted to understand Canadian consumer preferences regarding natural products. Overall factors seem supportive for Patanjali to enter the Canadian market.
2. Hello!
I am Shubham patil
MADE5006 – BUSINESS DESIGN FOR INTERNATIONAL GROWTH
MSC – TEXTILE DESIGN, TECH AND INNOVATION.
P2610915
3. CONTENT
Company introduction
Global consumer trend adopted
Situation Analysis-5C’s of company
PESTEL analysis
HOFSTEDE
Data interpretation – Primary
Research
Conclusion
Bibliography
AIM
To understand however economic, social, environmental,
technological, political and legal factors will impact the success of
a business at new International market.
OBJECTIVE
To assess the “PESTEL“ factors that measure set within the new
market and think about whether or not they would support or
reject the business.
Use the Hofstede model to spot the variations between the
two countries and the way this may have an effect on the
business.
5. PATANJALI
COMPANY PROFILE
▹ Patanjali, founded in 2007 by Baba Ramdev and his aide Swami Acharya Balakrishna.
▹ Patanjali has four business divisions: 450 products in its portfolio.
▹ It has disrupted the entire FMCG (FAST MOVING CONSUMER GOODS) market in India with
its unconventional growth story.
▹ Low priced, value for money products, herbal or ayurvedic product along with the free
consultation.
▹ Vision
1.uplifting the life of Indian farmers(local raw materials) while at the same time
2.Provide healthy lifestyle by promoting Ayurveda and herbal products.
(PATANJALI
(PATANJALI
)
6. 1.Food & Beverage 2. Health & Cosmetic
3. Health drink 4. Home care
(Patanjali Products)
(PATANJALI
)
(PATANJALI
)
(PATANJALI
)
(PATANJALI
)
(PATANJALI (PATANJALI (PATANJALI
(PATANJALI
8. “THOUGHTFUL THRIFTIER”
▹ A thoughtful thriftier is defined as the one prioritising value-added and health-conscious products and services.
▹ The products are priced low, have a taste of Indianness to them, emphasises Vedic culture and promote eco-friendly
raw materials and processes.
Brand Premium is Old school
Product efficacy
A strong brand identity
Consumers have the last laugh
Scope for innovation
10. Context
- Everyone wants to return to nature and live a healthier lifestyle.
- Ramdev baba started Patanjali Ayurveda, a company that would bring the goodness of nature with each of its products,
which would be natural and would make everyone healthier.
- He branded all of the products as natural and containing the secrets of Ayurveda.
Customer
- The huge number of followers of Ramdev’s yoga constitutes the main customer base of Patanjali.
- Besides this, people in the age group of 35 years and above, people living in urban cities who are health conscious are the
customers of Patanjali products.
Collaborators
- Outsourcing.
- Packing with Patanjali tag.
- Patanjali has also signed up with a lot of big retail chains like Future group’s Big Bazaar, Reliance among others.
11. ▹ Company
▹ Competitors : The major competitors across all categories are Colgate, Dabur and Hindustan Uniliver
Ltd., P&G, ITC (Indian Perspective)
• Raw material – Local farmer
• High quality with low price
• Strong network
• 2200 Stores in INDIA
• strong political affiliations
• Self Brand Ambassador
• Dependent on farmers
• Attraction- only above age
35
• Less attractive packaging
• Lacking in Digital space &
Global presence
• Targeting can be changed
to younger generation
• Can scale up through
franchise.
• Competitors can easily make
their foray into the herbal
space.
• Bigger companies can always
create newer brands to start a
price war with
S W
O T
13. POLITICAL SCANNING
Indian Perspective
▹ ‘Make in India’ - The government
encourages & support.
▹ With the UN declaring 21st June as
International day for Yoga because of the
suggestion of Prime Minister Modi (as it is the
longest day of the year); the international
appeal of Patanjali is bound to grow as it has
Baba Ramdev as its founder.
▹ Patanjali’s IT venture - ‘Start-up Initiative’ of
the Modi government.
▹ Baba Ramdev has strong political affiliations -
subsidized loans.
Canadian Perspective
▹ The Canadian Government supports the
franchise Model.
▹ Patanjali has set up its company-owned
subsidiary in Brampton and Mississauga.
▹ NNHPD (Natural and Non-prescription Health
Products Directorate) a government body issued
a mandate in the year 2016 to promote herbal
and other non-prescriptive medicines to best
benefit the population of the country.
(Ayurveda Association of
Canada)
14. ECONOMICAL SCANNING
Indian Perspective
▹ The company works on the principle of
‘swadeshi’ product.
▹ Raw material – Local farmers – Eliminate
margin.
▹ Self farmland for raw material – Increase
profit, This is why the price of each product
is 15 – 20% less than other competitors.
▹ GST implementation has also favourably
impacted.
Canadian Perspective
▹ The wealthiest countries in the world & one of the
top ten trading nations.
▹ The trade between India and Canada rose to 62%
in the past five years.
▹ India is Canada’s 9th largest export market and
10th largest trading partner overall.
▹ Canadian College of Ayurveda in Toronto and
Canadian Ayurvedic Medical Alliance promote
Ayurvedic Practices and herbal products.
(WORLD ECONOMIC LEAGUE TABLE 2021) (WORLD ECONOMIC LEAGUE TABLE 2021)
15. SOCIAL SCANNING
Indian Perspective:
▹ Marketing – Through YOGA.
▹ Consumers are promised chemical-free and
swadeshi products.
▹ Ayurveda and yoga captures the attention.
▹ Now that Yoga is internationally recognised
and practised, Patanjali has a growing market
outside India too.
▹ Herbal products - preventing diabetes and
hypertension.
Canadian Perspective:
▹ Target market - working-class category with
40-50% being middle class which happens to
be the target market of Patanjali.
▹ Indian origin makes up one of the largest
non-European ethnic groups in Canada.
▹ 18-22% of the Canadian Population is of
Indian Origin - amongst which 10% are
Punjabi’s, North Indians.
▹ Canada is turning out to be a fertile market
for Patanjali to promote its products across all
ranges.
16. TECHNOLOGICAL SCANNING
Indian Perspective
▹ In 2010, Patanjali Research Foundation
was started.
▹ It aims at using both Science and Ayurveda
to provide rich quality products and
medicines.
▹ In May 2019, company has launched a
Technology start-up.
▹ Technological patent in supply chain
management, distribution, soil testing,
fertiliser calculation and backward linkage.
▹ Investing in 5G technology.
Canadian Perspective
▹ Ayurveda Association of Canada
(Mississauga) has provided a platform for
technological associations and global firms to
conduct research in Ayurveda for
empowering the Ayurvedic community and
nurture the growth and presence of Ayurveda
in Canada.
▹ 5G network is launched.
17. ENVIRONMENTAL SCANNING
Indian Perspective
▹ Aim of producing chemical-free products.
▹ This is probably one of the strongest factors of
the brand.
▹ Natural products with minimum or no artificial
interference.
▹ EPI-
▹ SDG Index-
Canadian Perspective
▹ Natural, Herbal, Ayurvedic and eco-friendly tag.
▹ Organic products free from chemicals and
grown in natural conditions are finding a lot of
importance in Indian and Global markets.
▹ EPI –
▹ SDG Index-
(Mapping TradeTech:Trade in the Fourth Industrial Revolution)
(SUSTAINABLE DEVELOPMENT REPORT)
(SUSTAINABLE DEVELOPMENT REPORT)
(Mapping TradeTech:Trade in the Fourth Industrial Revolution)
18. LEGAL SCANNING
Indian Perspective
▹ Ministry of Ayush.
▹ Various complaints have been filed against the
company for advertising its claims on medicine
for COVID-19 in Madras High court.
▹ The Medicine Central Control Act 1970, The
Drug and Cosmetic Act 1940, The Drugs and
Magic Remedies Act 1954 etc are few laws
that govern Patanjali and its functioning.
Canadian Perspective
▹ Canada follows the standards as per
monographs from United States
Pharmacopoeia, British Herbal
Pharmacopoeia and Expanded Commission
E, European Scientific Cooperative on
Phytotherapy (ESCOP) and WHO.
▹ Requires prior approval from Health Canada.
19. CANADIAN CULTURE RELATIVE TO OTHER WORLD
CULTURES
CANADIAN CULTURE RELATIVE TO INDIA
Canada Japan USA
(HOFSTEDE, 2021)
Canada INDIA
(HOFSTEDE, 2021)
HOFSTEDE
Primary research Questionnaire - https://forms.gle/nQtmCyJnFUVMZ7raA
25. ▹ Canada government follows Franchise model.
▹ Canada Promotes - Natural and Non prescriptive products, Chemical free products, Ayurvedic
practices.
▹ Trades between India and Canada is higher.
▹ Large number of Indian population in Canada.
▹ Research and Development of Ayurvedic products using advanced technology.
▹ Patanjali Follows Ayurvedic and health standards, Easy approval from Health Canada department.
▹ As per HOFSTEDE dimension’s & all above factors we can say, CANADA is best market to establish
Patanjali with good success rate.
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