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Marketing Management, Product & Brand Management, Entrepreneurship.

This case can be taught effectively to MBA/BBA students as part of Marketing Management, Product & Brand Management, Entrepreneurship.

The case talks about the marketing mix strategy of India’s fastest growing fast moving consumer goods (FMCGs) brand Patanjali, with a tremendous revenue growth rate of 100 per cent for the past five years, leaving major FMCG companies insomniac. Patanjali Ayurved Limited riding on Baba Ramdev’s brand equity positioned itself as an authentic Ayurved brand with ancient Indian roots. Patanjali’s product line ranges from healthcare, personal care, home care, to food and more. Patanjali’s products were priced 10-40 per cent lower than that of its competitors. Run by franchisees, Patanjali had a three-tier distribution system. These included Patanjali Chikitsalayas which were franchise dispensaries and clinics along with doctors, Patanjali Arogya Kendra which were health and wellness centres and Swadeshi Kendra, non-medicine outlets. The company has 15,000 exclusive outlets across India and plans to grow to 1,00,000 exclusive outlets by 2020. Patanjali amazed the world by achieving phenomenal success without spending much on advertising in its nascent stage. Recently Patanjali adopted the multinational corporation (MNC) style of advertising by hiring two top advertising agencies McCann and DDB Mudra to prepare the company for the next phase of growth. Patanjali diversified into various segments of the market, ranging from FMCG products, Ayurvedic medicines, Ayurvedic hospitals and a medical college. Patanjali plans to enter various categories of products including the beauty products segment to compete with major MNCs, the baby care segment to compete with Johnson & Johnson, and the sports segment to compete with Nike and Adidas. Patanjali as a brand has a strong positioning in the minds of consumers as a natural and Ayurvedic brand. Will Patanjali’s foray into so many diversified segments lead to a brand extension trap and confused positioning? Because Patanjali as a brand, solely rides on Baba Ramdev’s image, if Baba Ramdev ever finds himself at the centre of a controversy, will Patanjali’s brand equity take a hit? Will it affect the brand Patanjali? Even if Baba Ramdev does not get into any controversy, what will happen to the brand Patanjali when Baba Ramdev is no more? Who should be the next face of Patanjali? Can the brand survive without a face?

The case is designed to enable students to understand the following key learning points: The concept of marketing mix. Product mix, Promotion mix branding (especially “Person as a Brand”), customer-based brand equity (CBBE) model or brand resonance pyramid.

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CSS 8: Marketing.

Strategy.

MBA.

On 20 May 2016, the Management team at Patanjali Ayurved Limited (PAL), an Indian fast-moving consumer goods (FMCG) company, had assembled in their Haridwar office, India, to discuss their future growth plans. The team was in a celebratory mood, as their internal reports suggested the annual revenue forecasts for the year 2016-2017 to be INR 10bn, an increase of 100 per cent as compared to the previous fiscal year 2015-2016 that recorded annual revenues of INR 5bn. PAL incorporated in 2006 and co-founded by Acharya Balkrishna operated in four business segments of foods, personal care, home care and Ayurved products. The products sold under the brand name Patanjali were single-handedly promoted by Swami Ramdev (hereafter referred as Ramdev), a popular Yoga practitioner and preacher amongst the Indian masses, as well as PAL’s co-founder. Ramdev recommended PAL’s products in his yoga sessions on television and yoga shibirs which had led to huge positive “word-of-mouth” publicity for their brand Patanjali. Their fast-paced growth in less than a decade had generated a disruption in the Indian FMCG sector, resulting in a negative impact on the sales of established multinational corporations (MNCs) such as Colgate-Palmolive, Hindustan Unilever Limited (HUL), ITC Limited (ITC), besides the domestic players such as Dabur India Ltd. and Emami Ltd. This had led their FMCG competitors to launch plans to strengthen their product portfolios so as to provide a tough competition to PAL. The management team at PAL, though confident of achieving their annual revenue targets, were apprehensive of this new competition from the big players of the FMCG sector. Were they capable of continuing their success story? Going forward what strategic steps would ensure them a sustainable growth and a market leader position? The mood turned reflective as the team pondered on some of these questions.

The case is structured to enable discussion on: conducting and understanding a general environment analysis and industry and competitive analysis and critically evaluating the firm’s strategic positioning and scope in a competitive environment.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy.

Market development.

This case is intended to be used in strategic management, operations management for both undergraduate and graduate courses. It can also be used for value innovation and market development.

This case focuses on market development by Patanjali, a fast-growing organization crossing US$1bn of sales in five years of time span and declaring a target of doubling this figure in the financial year 2016-2017 (to reach US$1,500m). The prime focus of Patanjali is the health food segment based on herbal and Ayurveda science through the use of organically grown agricultural produce by integrating the associated value chains while radically benefitting all the stakeholders in a two-way process as suppliers as well as buyers/consumers. The fundamental context of the case is associated with the value chain development in terms of value addition on the basis of the organizational and leadership values in all the elements of the value chain of Patanjali products starting from suppliers to customers. The case emphasizes the role of the Patanjali Food & Herbal park in the value chain. Patanjali Food & Herbal Park is constantly striving for nation building more than profit accumulation. They have created a sustainable business benefiting all the stakeholders. The backbone of the Patanjali Food & Herbal Park lies in robust backward linkage and forward linkage. The context of the case presents an account of how the values based integration of the value chain is a strategic advantage and safeguards an organization from business environment threats.

The context of the case presents an account of how values based integration of the value chain is a strategic advantage and safeguard an organization from business environment threats. The case has a deep-rooted theoretical association with models like Porter’s Five Forces model on the one hand and also exemplifies how an organization can use blue ocean strategy through value-based value innovation. The context of the Black Swan perspective also emerges in the narration.

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CSS 11: Strategy.

Leraning outcomes are as follows: demonstrating how companies in the Indian market are using competitive advertising; giving participants an overview of the regulatory framework for advertising in India; highlighting the complexities arising out of the multiplicity of advertising regulations and institutions in India; appreciating the legal and ethical perspectives of advertisements and self-regulation; and evaluating the stance taken by both the parties in this particular case to develop multi-stakeholder perspective.

A recent advertisement by international conglomerate Hindustan Unilever Limited was severely criticized for insulting Indian values by Baba Ramdev, promoter of India's largest Ayurvedic Company selling Indian indigenous and natural alternate medicinal products. It was in a complete reversal of the scenario between 2015 and 2018 when other Indian consumer goods companies complained against advertisements released by Patanjali. Indian fast moving consumer goods sector is witnessing a trend of competitive advertising in which companies are downplaying and criticizing the competitors. Though quite old, this trend caught momentum when Patanjali Ayurved Limited, a new player in the market, started advertising aggressively in 2015–2016. It resulted in many complaints by the aggrieved parties in the industry bodies and different courts of law in India. A part of the confusion comes from the diversity of advertising regulations across different Indian platforms and the absence of a clearly defined institutional framework for resolving such disputes. Consequently, most such disputes land up in the court of law in India. The case study builds an understanding of the legal framework within which companies are governed for brand promotions and creates a contextual ethical dilemma to drive the discourse on advertising through self-regulation in India.

This case is meant to benefit students pursuing a graduate or upper-level undergraduate degree in management or law/business law.

Teaching notes are available for educators only.

CSS 8: Marketing.

The case illustrates the social entrepreneurial journey of Ramdev who developed Patanjali Yogpeeth as a successful enterprise that provides low-cost physical and mental treatment through the ancient science of yoga. The case provides a perspective on the reasons for the success of Patanjali as a social brand in such a small time scale and also addresses the controversies associated with it.

Using secondary sources, the study describes the philosophy, infrastructure, innovations, marketing and promotional practices of the organization. It also seeks answers to the challenges faced by the social entrepreneur to fulfill his social mission.

The case is best suited for courses on entrepreneurship, social entrepreneurship and marketing of non-profit organization in both MBA and executive programs. Students who have an interest in starting their own venture or social enterprise will find it more relevant and interesting.

Marketing management, consumer behaviour, digital marketing.

This case can be used for students studying marketing management courses and also for elective courses on consumer behaviour, digital marketing and strategic management in an MBA programme.

This case is about Anju Pharmaceuticals which dealt in the manufacture and sale of ayurvedic/herbal products such as Panchsudha, Zalim Lotion, Ruz, Vama, Mekado etc. in Madhya Pradesh, India. Started in the year 1983, the company had still not been able to make a mark in the market. For quite some time now Mitesh, the third-generation proprietor of the company, was continuously reading articles which discussed how there has been a positive shift in the consumer preferences for products having herbal ingredients. Indian fast-moving consumer goods (FMCG) companies such as Patanjali, Dabur, Marico were banking on herbal components in their various key products such as toothpaste, shampoo and hair oil to expand their market share and some of these Indian companies seemed to be growing faster than bigger multinationals including Hindustan Unilever and Procter & Gamble. With the changes in consumer perception towards herbal products, Mitesh was hopeful that if he could gear up his distribution it would result in improving the bottom-line of the company. He had also started receiving queries from interested clients for third-party manufacturing and packaging of the ayurvedic products under the desired brand name. Mitesh was very much aware that to improve his bottom-line, just relying on efficient distribution would not suffice and he would need to come up with strategic alliances and newer ways of doing the business rather than just following what had been the norm for the last few years. The idea of becoming a third-party manufacturer somehow did not excite Mitesh because he felt that by going in for third-party manufacturing he would never be able to establish the brand identity of Anju Pharmaceuticals. He wanted his company to ride the FMCG herbal wave but how and at what cost were the big questions facing him.

After the successful completion of this case, the readers would be able to accomplish the following: gain insights into the problems faced by small businesses when they want to scale up their business. Get insights into the challenges/difficulties of adopting e-commerce by a small organization. Be aware of the changing consumer preferences for herbal and ayurvedic products and how companies are gearing up to cash on to the changing market opportunities. Comprehend the problem situation. Suggest ways of taking advantage of the current scenario to expand and grow the business.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 8: Marketing.

The learning outcomes are as follows: understand the factors that go into the assessment of a distributor performance; understand the criteria that may be useful to distributors while choosing distributorship of a fast-moving consumer goods (FMCG) company; understand the various parameters that define a distributor performance; and understand the critical aspects that sales force consider while staying with an organization on the long term.

This case is about how a FMCG Company in India – Patanjali Products is handling its sales and distribution management strategies. The FMCG segment in India is very competitive and is dominated by big multi- national players such as Unilever and Procter & Gamble as well as other Indian players such as Marico, Dabur, Cavinkare and Himalaya herbal. This industry is characterized by frequent product launches and the trade/ distributors play a key role in providing reach and visibility to the end users. Patanjali Products is a relative new entrant but has rapidly found success in this category. Through a product range that is positioned on “naturalness”, the company has achieved a turnover of US$735m in a span of six years. The case is written from the perspective of Anil Gupta, one of the distributors of the company. He is currently faced with the challenge of evaluating whether he should continue with the distributorship or go back to his old company Himalaya herbal. With this background, the case intends to elaborate on the specific aspects of distributor management and sales management. Some key questions discussed in the case are as follows: What are the aspects that determine the performance of a distributor? What are the parameters that a distributor needs to take into account while selecting a company? How does one calculate the financial return on investment for a FMCG distributor business? What are the elements that contribute to sales force loyalty?

Undergraduate and Post Graduate students of management Sales workshops Corporate training on sales management Particularly it can be taught under the course “Sales and Distribution Management”. The other courses where it can be a part of are: Retail Management, FMCG Sales and Marketing, Channel Management

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Marketing

The students will get a hands on research techniques like mental mapping, laddering and means end chain (MEC) model for value proposition and survey techniques.

Market Research has always acted as one of the major driving force behind the successful launch of any product in any market. There are several evidences of how market research and thorough understanding of the consumers in and out has lead companies reach new peaks and acquire market share. This case deals with a company called Eco-Remedies, based in Nashik, India, which is in the business of providing eco-solutions to different health ailments and also general purpose health supplements like health drinks. The major concentration is on the product called “AnjaNeya-The Graviola fruit drink” from Eco-Remedies, where in different research techniques were used to gather information so that appropriate strategies could be implemented in order to increase the market share of the product and create a strong position in the minds of the customers. The case deals with gathering consumer insights and then developing appropriate positioning strategies for Eco remedies based on consumer value proposition using the MEC theory, mental mapping, blind tests and general consumer survey.

The study is applicable to Masters level Marketing Management and Marketing Research Studies.

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Marketing.

This case study will allow students to critically analyse and develop entry strategies into untapped foreign markets. The case study was designed to introduce students to identifying and analysing information related to target markets for expansions in international business.

The main objectives of this case are to evaluate and make the “Go Global” decision for the company; to take a position on entry timing for a company for entering an overseas market; to select a country for entry based on cultural, administrative, geographic and economic analysis and other relevant factors; and to evaluate a firm’s readiness for exports.

This case study on Satya Pharmaceuticals presents a typical dilemma faced by small and medium enterprises (SMEs) in emerging markets such as India while exploring the untapped overseas markets to expand their business. Satya Pharmaceuticals produced over-the-counter Ayurvedic medicines. With the onset of the COVID-19 pandemic, the consumer preference for Ayurvedic products had increased globally. Home country governments’ emphasis on exports and conducive consumer preferences created an opportune time for such SMEs to explore uncharted markets with a propensity for herbal medicines. Amidst strict regulations regarding safety, efficacy, labelling and packaging norms, along with a subjective understanding of the consumers’ sentiments regarding alternate medicines, SMEs had to select their target market carefully for their products to be successful overseas. This case study presents the basic information that entrepreneurs needed to explore the foreign markets. It revolved around checking firms’ preparedness to explore foreign markets, identifying target markets, timing the entry and entering those markets.

This case is appropriate for graduate-level courses in management that offer subjects such as international business.

Teaching notes are available for educators only.

CSS 5: International business.

In 2015, NESTLÉ India underwent a major crisis as the product which contributed to nearly 30% of its sales had to be taken off the shelves. Maggi—the go-to convenience food for all generations (especially kids and young adults)—which had entered the market in 1983, was banned. With a market share of 70-80% before the ban, NESTLÉ, which got the ban lifted in November 2015, had to undergo the task of winning back the lost market. Over a period of 8 months after its relaunch, the brand regained about 60% of its market back, but the question is how could such brand disaster be avoided in future? The case revolves around a major brand recovering from a brand disaster, and whether they did it well enough or could the situation have been managed better. It also enquires as to what road should be taken forward from here. It notes the action taken by the government against the brand and leaves it to the judgment of the readers if the actions taken against the brand were a little too harsh, solely because MNCs are usually considered a soft target in India. The readers must also understand and analyse the different brand relaunch strategies that were adopted by NESTLÉ and the next steps that should be taken by it.