Patanjali Ayurved | UAE Market

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Information about Patanjali Ayurved | UAE Market

Published on September 29, 2015

Author: kashyapshah11


1. Patanjali Ayurveda Ltd. Commercializing Business in Non-Commercial Way Presented & Submitted By, Group-01 | International Marketing

2. Building a 2,500 Cr. worth of business in a decade | The PAL Story Psychological latent need creation- through ‘Bharat Swabhiman’ Physical attribute & Emotional Satisfaction through Indian made products Franchisee Model- Distribution Network Yoga Shivir & Camps to indirectly promote the business Baba Ramdev’s Direct interaction with Consumers ‘Value for Money’ 20-25% cheaper prices than MNC competitors Discovering Initial Consumers- 70 million followers Self actualization & contributing feeling Choosing non-traditional, less open competition markets

3. Existing Products & Distribution Channel Ayurvedic Tablets Capsules, Vati Foods Chyavanprasa Badam Pak Cosmetics Dental Protection Herbal Beauty Products Juices Healthy, Nutritious Energy Drinks Amla, Alovera Juices Divya Pharmacy + Patanjali Ayurved A healthy way of life Focus on traditional herbal beauty secrets Rich in Ayurvedic & Herbal medicines to start a Day with Product Categories  Untapped non-traditional types distribution channels like Franchisee & Khadi Bhandar, where degree of open competition from FMCG players is very less.  Creating wide range of products with well defined ‘Price Points’ (25 Rs. To 370 Rs).  Baba Ramdev being the brand ambassador for the umbrella branding  Low cost of production

4. Going International | United Arab Emirates Market Population 10.2 million Currency Emirati Dirham, 1 AED= 18.04 INR Sex Ratio 2275:1000 (M|F), 70% M & 30% F <15 years old 20.4% 15-64 years old 78.7% >64 years old 0.9% Ease of Doing Business Rank 22 (Overall-2015), 01(Paying Taxes), 04(Registering Property) Customs Duty on Imports 5%, (In Free zone, customs duty is NIL) GNI Per Capita 38,620 USD  Long life expectancy, High education, Good Health-care  English- widely spoken language  Diverse and multi-cultural society with 80% of the UAE population as an expatriates, It is regarded as relatively liberal within the region and provides schools, cultural centers and restaurants catering for international cultures.  Easy availability of VISA for business, tourist visits.  Diverse & continuously growing economy, key market for re-exporting into other countries  Strategic Geographical Location- Dubai as a regional hub of Middle East, North Africa & Beyond  Strong banking & Stable political system  Well-developed infrastructure  Proximity to Gulf Markets

5. STP | PAL | United Arab Emirates Market Segmentation 30% of total Population is Indian, Residents of UAE who prefer Herbal Products Targeting Children, Middle Age Women, Age Group: 15-64 years Positioning Herbal & Ayurveda Products can treat diseases with zero side- effects Implementing chosen image and appeal to chosen segment PRODUCTS VALUE BASED PRICING E-commerce, Franchisee based distribution Zero-Budget Marketing, Free Media Promotions

6. Demand Forecast, Market Potential & Existing Competition Global Market: Herbal & Ayurvedic Products is 100 Billion USD, to reach 5 Trillion USD by 2050 Low quality standards (as per international measures), India is limited to 2-3 % of it 65% of India’s Rural Population Uses Ayurveda Remedies Government supportive on Herbal/Ayurveda Exports 75% of World Population uses Herbal Care products for some purpose Traditional Chinese Medicines holds nearly 30% of World Market Source: WHO Report UAE Market Shifting consumer choice to herbal products, especially to treat cold & cough Boost in Demand Dubai Herbal Treatment Centre(2003), 43.9% increased expense in Herbal/Medicines since 2009 (550 mn USD) Competitive Landscape Highly fragmented industry with Top 04 players accounting for 25% combined share of value sales

7. Marketing Mix & Modes of Operation| Patanjali Ayurveda Ltd. | UAE Market All Existing Products + Herbal Products to treat Cough & Cold Value Based Pricing Alignment of Cost, Customer & Competitors Franchisee Stores, Super/Hyper markets & Online Marketplace (like, Yoga Shivir to create awareness, YouTube Channel, Social Media to target GULF (MENA) PRODUCT PLACE PRICE PROMOTION Modes of Operation

8. Challenges & Future Possibilites | Patanjali Ayurveda Ltd. | UAE Market Competition with well established & traditional FMCG / MNCs (i.e. Meda, Haw Par) Al Manar Ayurvedic Centre(Kerala), Himalaya Drug Company Branding expenditure management Conditioned Channel Resistance by Channel Partners Future Possibilities  Better utilization of  More focus into Consumer Products (Daily Usage) Market  After saturation of franchisee based model, have to look into entering formal distribution channel  Introducing more customer preferred herbal products  Acceptance of Products & Availability

9. Thank You !!

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