Over the last few weeks media has been full of stories on the success
of Patanjali. With turnover of around Rs 2500 crores and all
projections indicating the brand touching Rs 20,000 crores in the next
few years, the media attention is well deserved. Yet amongst the host of
articles and analysis I couldn’t help but feel that the brand still has
a long way to go before it becomes a formidable brand. In the next few
paragraphs I will try and raise certain issues which could make or break
the brand.
It all started with the brand itself. Which brand are we talking about? Patanjali or Baba Ramdev? Are the two the same? Does one complement the other? Is the relationship symbiotic? Is it like Virgin and Richard Branson?
To me this is the most critical question. My view or opinion is not what matters but what matters is the consumer opinion. So in the city of Doon where Patanjali has at least three outlets within a 3 square km radius of my house, I did an informal research. I spoke to some buyers, Patanjali dealers and some young graduate and post graduate students. I am not claiming that this is a scientific research but it definitely helps to form certain hypothesis.
Almost everyone I spoke to was clear that Patanjali is Baba Ramdev and vice a versa. The buyers at the retail outlets, the retailers themselves, all believe in Patanjali because of Baba Ramdev. His yoga prowess, his knowledge of Ayurveda has convinced people that the brand he peddles is as good as him. Some of them had been to the Patanjali ashram in Haridwar too. Most of them had tried Patanjali Ayurveda medicines and traditional Indian products like Chywanprash or Amla murubba and were very happy with the products.
For the uninitiated a small diversion. Patanjali has been running an Ayurvedic medicine ashram which treats almost all illness and diseases. It is situated in Haridwar and is renowned for its medicines and cure. Before it went into FMCG and such categories Patanjali had a retail Ayurveda presence, specially in the hindi belt. Patients would visit the Haridwar ashram, would be diagnosed and then they could get their medicines through the Ayurveda retail shops in their towns and villages. Many, I know swear by the same. This actually was the genesis of Patanjali.
Getting back to my research, I noticed that most of the consumers I was talking to were thirty plus men and women; in fact 40+ would be a more accurate description. So I asked the retailers about the profile of Patanjali buyers. And they conceded that it is the thirty-thirtyfive plus segment. Dehradun being a city of floating student population, I was surprised that the young student was not really buying the brand.
So I sought out the students. Did an impromptu discussion at a students hostel. And my findings were surprising. Most of the students are from in and around Dehradun….Punjab, UP and other areas of Uttarakhand. For them Patanjali was Baba Ramdev and Ayurved medicines. But Baba Ramdev to them was not a respected or even a genuine person. They saw him mostly as a clever and astute salesman. They were sceptical about Patanjali claims and considered it no different than any other product. One wag even questioned the relationships between jams, noodles and Ayurveda! And they just laughed away the whole “Bharat Swabhiman” issue as just a gimmick.
As I said earlier, this, by no stretch of imagination is a conclusive research. But such observations in the heart of the hindi belt, which is Patanjali’s core geography, do point to certain issues which could make or break the brand.
Agree? Disagree?
It all started with the brand itself. Which brand are we talking about? Patanjali or Baba Ramdev? Are the two the same? Does one complement the other? Is the relationship symbiotic? Is it like Virgin and Richard Branson?
To me this is the most critical question. My view or opinion is not what matters but what matters is the consumer opinion. So in the city of Doon where Patanjali has at least three outlets within a 3 square km radius of my house, I did an informal research. I spoke to some buyers, Patanjali dealers and some young graduate and post graduate students. I am not claiming that this is a scientific research but it definitely helps to form certain hypothesis.
Almost everyone I spoke to was clear that Patanjali is Baba Ramdev and vice a versa. The buyers at the retail outlets, the retailers themselves, all believe in Patanjali because of Baba Ramdev. His yoga prowess, his knowledge of Ayurveda has convinced people that the brand he peddles is as good as him. Some of them had been to the Patanjali ashram in Haridwar too. Most of them had tried Patanjali Ayurveda medicines and traditional Indian products like Chywanprash or Amla murubba and were very happy with the products.
For the uninitiated a small diversion. Patanjali has been running an Ayurvedic medicine ashram which treats almost all illness and diseases. It is situated in Haridwar and is renowned for its medicines and cure. Before it went into FMCG and such categories Patanjali had a retail Ayurveda presence, specially in the hindi belt. Patients would visit the Haridwar ashram, would be diagnosed and then they could get their medicines through the Ayurveda retail shops in their towns and villages. Many, I know swear by the same. This actually was the genesis of Patanjali.
Getting back to my research, I noticed that most of the consumers I was talking to were thirty plus men and women; in fact 40+ would be a more accurate description. So I asked the retailers about the profile of Patanjali buyers. And they conceded that it is the thirty-thirtyfive plus segment. Dehradun being a city of floating student population, I was surprised that the young student was not really buying the brand.
So I sought out the students. Did an impromptu discussion at a students hostel. And my findings were surprising. Most of the students are from in and around Dehradun….Punjab, UP and other areas of Uttarakhand. For them Patanjali was Baba Ramdev and Ayurved medicines. But Baba Ramdev to them was not a respected or even a genuine person. They saw him mostly as a clever and astute salesman. They were sceptical about Patanjali claims and considered it no different than any other product. One wag even questioned the relationships between jams, noodles and Ayurveda! And they just laughed away the whole “Bharat Swabhiman” issue as just a gimmick.
As I said earlier, this, by no stretch of imagination is a conclusive research. But such observations in the heart of the hindi belt, which is Patanjali’s core geography, do point to certain issues which could make or break the brand.
- Is Baba Ramdev’s appeal limited to the older, thirty five plus segment, people who have been his followers for the last twenty-thirty years? The youth of today, who is the customer of tomorrow, is much better informed and is not too enamoured by Baba Ramdev. My hypothesis is that many youngsters, even in small towns, with access to the net, are much better informed and knowledgeable and do not take Baba at his face value, unlike maybe their parents.
- If Patanjali and Baba Ramdev have a symbiotic relationship (and let’s not forget that each communication of the brand ends with a mug shot of Baba Ramdev and his aide Balakrishnan, so the relationship is being flaunted), will that in the long run hurt the brand? The youngsters are sceptical about “Babas” and Ramdev’s alleged misdeeds are easily available on the net. Also his political leanings and dabblings could harm the brand.
- Is the Baba Ramdev/Patanjali appeal making sense to the youngster? Is the youngster convinced more about yoga than gyms? I see more fully equipped gyms in Dehradun than yoga centres.
- Yes, many would say Baba is about Indian way of living but in today’s interconnected world is that a good enough differentiator or even an emotional motivator?
- How is Patanjali Noodle, Ghee or even Atta really different from Maggi Atta Noodles or ITC Aashirwad atta. The product story is the same. The claims are the same. The ingredients are the same. Even the preservatives and permissible colours used are the same. So what is the differentiator? Just the pricing? Is the Patanjali brand stamp good enough?
- What exactly does Patanjali stand for? Is it Ayurveda? Is it Bharat Swabhiman? Is it both? If it is Ayurveda then can it justify its existence in categories like Noodles, Biscuits, Jams….? To me it sounds a bit confused. Is Patanjali into Noodles or Jams just because of Bharat Swabhiman? Is it just a feel good? I think to bring Bharat Swabhiman alive it needs to actually have rational product differentiation. For example not sell jams but sell murrabaas. Not sell noodles but rice vermicelli (sewiyan). Not sell squashes but sherbets. It needs a much more thought through product strategy.
- And that gets reflected in the communication too. Noodles and toothpastes are not traditional Indian products and so the strategy is to attack them and call them bogus or unhealthy. But for Ghee which is a traditional product the communication is that much more simple, lucid and believable talking about the Goodness of the product.
Agree? Disagree?
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