Published on September 29, 2015
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 souq.com, desertcart.ae) 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 patanjalistores.com 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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