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Patanjali and Us January 12, 2016

Posted by simarp in : Food, Marketing , trackback

My this post is a kind of comment/response to an article by Ravi Ananthanarayanan – Patanjali mountain or molehill? Article was published today in Mint.

Baba Ram Dev’s brand is definitely entering households, it is a slow and steady multi product entry. For my family it has entered our kitchen and replaced one FMCG brand – Dabur and two “any brands” would do to Patanjali is better. We have moved from Dabur Honey to Patanjali Ayurved and we have moved from “brand doesn’t matter” Amla Juice and Aloe Vera Juice to Patanjali Ayurved brand Amla Juice and Patanjali Ayurved brand Aloe Vera Juice. That is about Rs 1,500 per month of FMCG spend from a total of Rs 15,000.00 – Rs 20,000.00 spend. 10% share in our household which has no pro Ramdev sentiment is great for Patanjali Ayurved. All the three products are recommendations by my wife’s dietitian and endorsed by me. So, it is a word of mouth for us.  We definitely use over 300 products in our home in four FMCG lines which Patanjali Ayurved operates in, mostly brands and almost all bought at least 3 times a year. So out of 300, Patanjali Ayurved has a 1% share. Patanjali Ayurved’s two of four categories have us as buyers, Juices and Food. We don’t buy any cosmetics or any Ayurveda medicinal products from them.

One FMCG major has lost about Rs 12,000.00 p.a. account, that is Dabur for Honey, which has been built over 3 decades or more. That business has moved lock stock and barrel to Patanjali Ayurved. For juices, we don’t even know who the loser is, we bought what was available at a local grosser or a chemist or a modern retail outlet.

Here are some questions I landed putting to myself. Having done that I flipped my laptop around and sat on the opposite chair to answer them inline.

  1. Are we inclined to move to Patanjali from MDH if they come to Masalas? No, we are happy with MDH quality and price for this range doesn’t matter.
  2. Are we likely to move over  tea & coffee purchases to Patanjali as and when their products are freely available? No, it has taken us ages to get our combinations and tastes right. We know when we need Bru and when we need Nescafe and when we need premium brand because of a particular roast. Same with tea, Aap Ki Pasand handles our Super Premium Tea needs since two decades or more and Tata and HUL largely take care of our daily tea requirements.
  3. Would we move our Atta away from ITC’s Ashirwad Sharbati? Very very unlikely. That is what we need.
  4. Would we move our laundry detergents and current soap brands, largely HUL to Patanjali? Even ITC couldn’t succeed here, Patanjali has almost no chance.
  5.  Our lentils? Tata Shudh has just started making an entry, local brands are getting replaced, looks unlikely that we will move.
  6. Chips from Lays? Cold Drinks from Coke & Pepsi? Regular juices from Tropicana & Real? Cookies from Britannia & Parle G? Almost impossible.
  7. Ice Cream from Amul, Mother Dairy, Kwality Walls, Naturals and Gianis? Are you joking. too tough, 5 brands dominate our house because of particular flavors. At best if Patanjali comes with some Amla-Mango ice cream and it tastes nice, it can become a 6th brand, that’s the best chance.
  8. Amul & Mother Dairy Milk? Amul, Mother Dairy and Britannia Cheese? Mother Dairy and Gopalji Paneer? Mother Dairy and Nestle Curd/ Yogurt?  Mother Dairy & Amul Lassi/ chhach? No way.
  9. Chef’s Basket Pasta? Maggi Noodles? Knorr & Keya soups? Probably after next seven generations ;)
  10. Nonveg? Are you kidding? Patanjali won’t enter that section ever.
  11. Cadbury’s Chocolates? Bournvita? Horlicks? Too toucgh for Patanjali.

I think they will replace in our household things like Hamdard’s Roohafza, Dabur Chawanprash, Organic India’s Tulsi, Dabur’s Pudinhara, Hamdard’s Sualin, Dabur’s Hajmola. Broadly the Ayurveda connected FMCG, other that odds are firmly against them. Patanjali Ayurved as brand has been developed around Ayurveda and for it to be a universal FMCG brand would be a challenge.

 

 

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