Search for Cases

Case Details

Case Code: MKTG362
Case Length: 22 Pages 
Period: 2006-2016    
Pub Date: 2017
Teaching Note: Available
Price:Rs.500
Organization : Patanjali Ayurved Limited
Industry : FMCG
Countries : India 
Themes: FMCG Marketing  
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

Patanjali Products: Disruptive Force in the Indian FMCG Market

 
<<Previous Page 

THE RISE AND RISE…

 
On January 11, 2016, Credit Suisse, a global financial services and investment banking company, downgraded Colgate Palmolive (Colgate) in India to neutral, opining that Colgate was facing stiff competition in the dental cream category from India-based Patanjali Ayurved Limited (Patanjali). According to Credit Suisse, “Colgate’s volume growth has seen a significant drop in 2015-16, which is divergent from peers who are seeing steady volume growth. The key reason is the strong traction that Patanjali has gained in the category.”

India-based Patanjali was started in 1997 as a small pharmacy to make healthcare products by Baba Ramdev (Ramdev) and Acharya Balkrishna (Balkrishna) . By 2015, the company manufactured and sold 800 different products including medicinal, cosmetic, and food products. The high quality, competitively priced products found several takers, and Patanjali started to make its presence felt in the Indian fast moving consumer goods (FMCG) market. Patanjali posed a threat not only to Indian FMCG companies but also to multinational FMCG companies such as Colgate, Procter & Gamble Co. (P&G) and Hindustan Unilever Limited (HUL). (Refer to Exhibit I for more on FMCG companies in India). According to a report by Reliance Securities, a brokerage firm, “Priced anywhere between 10%-30% cheaper than peers, Patanjali poses serious challenge to flagship products of many companies. We expect companies like Dabur to be most impacted by Patanjali while companies like Colgate, Emami and HUL to be marginally impacted.” ...

 

 
Marketing Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies
or
Marketing Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies
or
PayPal (11 USD)

 

 

 
.. OF BABA RAMDEV - Next Page>>