Welcome to the September issue of ValueNotes Connect.
When we hear of a “disruption” in an industry or economy, it invariably conjures up images of technology driven innovators. Whether it’s Google and Facebook – who have altered the face of advertising, or Uber – who has redefined personal transportation; or more recently, R-Jio who has shaken up the Indian telecom industry. They’ve always had a technology flavor.
Is it possible, at all, then to disrupt an industry without a technology advantage?
Patanjali Ayurved has done just that – in an industry where it takes decades to build a brand and distribution network. Emerging as amongst the top-10 FMCG players in India, the company is challenging the likes of FMCG giants such as Colgate, Dabur, Godrej, P&G and Unilever. Patanjali has created its own rules and re-written others, particularly around branding and distribution, which are both critical to success in consumer products.
Over the last few years, Patanjali has emerged out of nowhere to become one of India’s leading FMCG brands. Revenues in FY16 have crossed Rs 5,000 crores. According to some analysts, the company could gain 10% market share in multiple product categories by 2020. Little wonder that their competitors are worried.
The question on everybody’s mind is “Is it sustainable?” This led us to conduct a limited dipstick study of Patanjali consumers to get a sense of what they think about the products, and why they like (or buy them). Our focus was on personal care, home care, food products and ayurveda products (healthcare). The results are indeed very interesting.
Lastly, do read our case study on how we helped a leading FMCG company gather information about their competitors’ go-to-market strategies.
As always, we hope you enjoy reading our newsletter, and we look forward to your comments.
by Arun Jethmalani
|When we hear terms like “disruption” of industries or economies, it invariably conjures up images of technology driven innovators. But does this always have to be the case?Is it possible to disrupt an industry without a technology advantage? Well, India’s Patanjali might well fit the bill. In just about a decade, they have emerged as among the top-10 FMCG players in the country – seriously challenging the likes of Unilever, Colgate, P&G, Dabur and Godrej in several categories. In doing so, they’ve created their own rules and re-written others – especially around branding and distribution, both fundamental to success in consumer products.|
Patanjali is here to stay!
by Rathin Shah
|Over the last few years, Patanjali has emerged out of nowhere to become one of India’s leading FMCG brands. News reports suggest that revenues in FY16 have crossed Rs 5,000 crores. Analysts have pegged its market share at 10% (and more) in several product categories. The question on everybody’s mind is “Is it sustainable?” Patanjali’s sustainable future growth will depend on customer happiness and quality. This basic question led ValueNotes to conduct a dipstick study to get a sense of what customers of the brand think about the products.|
Some client problems we have solved: