Patanjali success recipe by Rajesh Shrivastav
Rajesh bhai met Ramdev in 2011 and found the following to be his success recipe.
1. Product: Use genuine & natural ingredients & in sufficient quantities, which make them effective in delivering the promise, it claims to deliver.
Result - customers, who buy the brand, experience the promise & become the company's Brand Advocate
2. Recipe: It is derived from Indian heritage.
3. Promise: Goodness of nature with each product having its own unique benefits which is effectively highlighted.
4. Price: 15 – 30% lower than competition.
5. Promotion: Use Alternate Media to build brand:
a. Buzz Creation (Word of Mouth Publicity). When a company makes a claim its believability is merely between 20 – 49%. But when real people speak good about a brand - the believability jumps to 70%; when friends speak about a brand's goodness the believability jumps to 90%. Result: Increase in believability of brand promise accompanied by drop in Advertising & Sales Promotion expense
b. Public Relation: Baba Ramdev – is the ‘celebrity’ endorser of his brand. He is always in news. When Press writes about him his brands get publicity & benefits from it.
c. Events: He holds innumerable Yoga camps (events); in these camps as he demonstrate the yoga pose, he subtly introduces Patanjali range of brands by highlighting there numerous features & the resultant benefits they offer. And, request his ‘followers’ to try & experience the benefit themselves.
d. Digital Medium: His Website is extremely engaging.
e.TV: For better part of a day he is always on ‘Sanskar’ Channel. On & off while demonstrating Yoga pose, he subtly introduces his brands.
f.Integrating Brand & not merely product placement: He intelligently integrates his various products in Yoga camp, TV shows & eschews forceful product placement.
6. Place (Distribution): Multipul distribution channels.
a. Company Owned stores, which exclusive sell his range of products.
b. Normal FMCG distribution channel through which his range of products are available at Mom & Pop stores
c. Modern Retail Outlets: Big Bazar etc...
d. Online
7. People: The sales person in his stores, according to him, act as ‘Authentic Consultant'. Take this case of a person who has come with a problem; the store person will patiently listen to there problems & then provide a solution to eliminate the problem from the root itself. He took pain to point out that big companies when they give solutions ensure that people become dependent upon there product for life, which results in business for them - as long as the person lives! His strategy is to provide solutions so that the problem gets rooted out & the person does not need his product.
8.Expenses: He knew I had worked in alcoholic beverage company & traveled by air & stayed in 5 Star Hotel when on a company work. He contrasted his system:
a. Travel: His sales people travel by public transport – bus, train, shared tempo / auto. When they visit stores in a town they seek out help of friends to take them around on a bike or ride it themselves.
b. Stay: At friends / relatives place in the town they are visiting. Only if these options do not exist then they can stay in functional hotels - not 5 Stars. If 2 or more people are travelling then they share the room.
c. Food: No alcohol & non-vegetarian food can be had on company expense – only hygienic & basic food is encouraged.
d. Salary: He knew I was from IIT - IIM. He looked at me & mentioned that he hired local people at extremely competitive salary & not at 'IIT - IIM salary'.
e. Controlling expense ‘mindset’: Take his Personal Assistant. He was a retired person. He had an obsolete model of Nokia phone which most of us would not have deemed it fit to be seen with. I asked him why does he not have a new model. He looked as if I had asked a stupid question & explained – ‘phone is for communication not for fashion jee'
Business Lesson for us: 1. Focus on creating a great product. 2. Make sure the product delivers the promise. 3. Always place customer interest, ahead of yours. They in return they will protect your interest by giving you business. 4. Make you customer your Brand Advocate. 5. Use Alternate media to build your brand – Buzz, PR, Events & Digital. 6. Do not ever permit your expense to soar. Keep them as low as possible. more
1. Product: Use genuine & natural ingredients & in sufficient quantities, which make them effective in delivering the promise, it claims to deliver.
Result - customers, who buy the brand, experience the promise & become the company's Brand Advocate
2. Recipe: It is derived from Indian heritage.
3. Promise: Goodness of nature with each product having its own unique benefits which is effectively highlighted.
4. Price: 15 – 30% lower than competition.
5. Promotion: Use Alternate Media to build brand:
a. Buzz Creation (Word of Mouth Publicity). When a company makes a claim its believability is merely between 20 – 49%. But when real people speak good about a brand - the believability jumps to 70%; when friends speak about a brand's goodness the believability jumps to 90%. Result: Increase in believability of brand promise accompanied by drop in Advertising & Sales Promotion expense
b. Public Relation: Baba Ramdev – is the ‘celebrity’ endorser of his brand. He is always in news. When Press writes about him his brands get publicity & benefits from it.
c. Events: He holds innumerable Yoga camps (events); in these camps as he demonstrate the yoga pose, he subtly introduces Patanjali range of brands by highlighting there numerous features & the resultant benefits they offer. And, request his ‘followers’ to try & experience the benefit themselves.
d. Digital Medium: His Website is extremely engaging.
e.TV: For better part of a day he is always on ‘Sanskar’ Channel. On & off while demonstrating Yoga pose, he subtly introduces his brands.
f.Integrating Brand & not merely product placement: He intelligently integrates his various products in Yoga camp, TV shows & eschews forceful product placement.
6. Place (Distribution): Multipul distribution channels.
a. Company Owned stores, which exclusive sell his range of products.
b. Normal FMCG distribution channel through which his range of products are available at Mom & Pop stores
c. Modern Retail Outlets: Big Bazar etc...
d. Online
7. People: The sales person in his stores, according to him, act as ‘Authentic Consultant'. Take this case of a person who has come with a problem; the store person will patiently listen to there problems & then provide a solution to eliminate the problem from the root itself. He took pain to point out that big companies when they give solutions ensure that people become dependent upon there product for life, which results in business for them - as long as the person lives! His strategy is to provide solutions so that the problem gets rooted out & the person does not need his product.
8.Expenses: He knew I had worked in alcoholic beverage company & traveled by air & stayed in 5 Star Hotel when on a company work. He contrasted his system:
a. Travel: His sales people travel by public transport – bus, train, shared tempo / auto. When they visit stores in a town they seek out help of friends to take them around on a bike or ride it themselves.
b. Stay: At friends / relatives place in the town they are visiting. Only if these options do not exist then they can stay in functional hotels - not 5 Stars. If 2 or more people are travelling then they share the room.
c. Food: No alcohol & non-vegetarian food can be had on company expense – only hygienic & basic food is encouraged.
d. Salary: He knew I was from IIT - IIM. He looked at me & mentioned that he hired local people at extremely competitive salary & not at 'IIT - IIM salary'.
e. Controlling expense ‘mindset’: Take his Personal Assistant. He was a retired person. He had an obsolete model of Nokia phone which most of us would not have deemed it fit to be seen with. I asked him why does he not have a new model. He looked as if I had asked a stupid question & explained – ‘phone is for communication not for fashion jee'
Business Lesson for us: 1. Focus on creating a great product. 2. Make sure the product delivers the promise. 3. Always place customer interest, ahead of yours. They in return they will protect your interest by giving you business. 4. Make you customer your Brand Advocate. 5. Use Alternate media to build your brand – Buzz, PR, Events & Digital. 6. Do not ever permit your expense to soar. Keep them as low as possible. more
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Oct 31
I have been using many products of Patnajali, specially Detergent, Atta, Herbal medicine, Hair Oil and I am more than satisfied for 3 reason, 1. It's cheaper by 30 to 40% from MNC brand, 2. Quality is Good . 3 The profit is within the country and used for Philanthropic causes. more
Jul 21
why the media is pro -negative towards indian entrepreneurs and pro-active towards the multinational companies .after a longtime an indian swadeshi brand is emerging in the indian business is not digestable by the so called white collared executives.the same thing happened when surf(a lever product) is the monopoly product .as soon as nirma(a swadeshi product) entered the market the lever has changed the entire business strategies. the only thing patanjali products price band and availability are customer centric ,available in the nooks and corners of the country. more
Jul 18
ONE HUNDRED PERCENT PROFITS OF PATANJALI IS USED FOR PUBLIC GOOD AND CHARITY. PATANJALI IS DOING WONDERFUL JOB IN GIVING HOLISTIC EDUCATION TO KIDS. PATANALI IS ALSO RUNNING HOMES FOR THE CHILDREN WHO LOST PARENTS IN UTRAKHAND, NEPAL ETC. SWAMI RAM DEV ALSO PLANS TO OFFER FREE SCHOOLING, BOARDING AND LODGING FOR THE CHILDREN OF ARMED FORCES JAWANS. IT IS A GREAT SWADESHI MOVEMENT AND ALL TRUE INDIANS SHOULD SUPPORT IT FULL HEATEDLY. SOME PRODUCTS LIKE COW'S GHEE, MUSTARD OIL ETC. IS COSTLIER THAN THE MARKET, BUT THAT IS THE PRICE OF PURITY. MOST CHEAPER PRODUCTS ARE ADULTERATED. PATANJALI WORKS ON VERY LOW PROFITS, SO SOME STORES DO NOT LIKE TO SELL PATANJALI PRODUCTS. IT IS BEST TO BUY THE PRODUCTS FROM VERY WELL MANAGED PATANJALI MEGASTORE OR PATANJALI AAROGYA CENTERS. ONE CAN GET FREE CONSULTATION FROM WELL TRAINED AND QUALIFIED PATAJALI VEDS AS BONOUS. more
Jul 18
Patanjali rebrands and sells a large number of third party products as it’s own and it does not have fssai approval for some of it’s products. The following three example links tell a different story. I would not put blind faith in Patanjali and risk my health. http://economictimes.indiatimes.com/industry/cons-products/fmcg/patanjali-comes-under-fssai-scanner-again-this-time-over-its-crude-oil-claims/articleshow/52540073.cms https://thewire.in/87053/ramdev-patanjali-fails-fssai-tests-fined/ http://www.thehindu.com/business/fssai-says-no-approval-for-patanjali-instant-noodles/article7891786.ece more
Jul 18
