Question

• Select a company that you are familiar with or to which you have access to information. You should have access to information about the types of products/services the company offers, its industry, the size of the company, and where it is located (or where it operates).
• Briefly describe your selected company, including its industry; whether it offers products, services, or both; the size of the company; and where it is located or where it operates (if multiple locations).
• For your selected company, which approaches do you think are most effective for reaching a domestic market? What about a global market? Why do those differences exist?
• How does a diversification strategy benefit a company competing in a domestic vs. global market? What, if any, differences exist between the two?

Answer 1

Patanjali Ayurved Limited is an Indian FMCG(Fastest Moving Consumer Goods) company headquartered at Haridwar, Uttrakhand while the registered office is located at Delhi.The company manufactures mineral and herbal products Patanjali is the fastest growing FMCG company in India.

The products were initially marketed and promoted during the yoga camps (which has been attended by around 20 crore people)

Founders:- Baba Ramdev And Acharya Balkrishna.

Owner:-Acharya Balkrishna.

Founded:- 13 January 2006.

Motto:- Prakriti Ka Ashirwad.

HQ:- Haridwar

Products:-Foods, beverages, cleaning agents, personal care products, Ayurvedic medicine

Total assets:-₹4,345 crore (2019)

Industry :-FMCG.

Service Provided to Area :-Indian Regions and Middle East.

VISION

• Keeping Nationalism, Ayurveda and Yoga as our pillars.
• We are committed to creating a healthier society and country.
• To raise the pride and glory of the world, we are geared up to serve people by bringing the blessings of nature into their lives.
• With sheer dedication, scientific approach, astute planning and realism, we are poised to write a new success story for the world.

MISSION

• Making India an ideal place for the growth and development of Ayurveda and a prototype for the rest of the world.

Question. For your selected company, which approaches do you think are most effective for reaching a domestic market?

For reaching the domestic market Patanjali uses various strategies as well as did research in order to understand user needs. The main reason behind its success is that Patanjali offers healthy, natural and chemical free products at lower range.

• STP OF PATANJALI

Segment:

In today's era everyone is looking for purity and environmental friendly products. Patanjali identifies the needs of consumers and segments each and every sector from small children to old aged people of society.

Target:

The target group of Patanjali is one who prefers ayurvedic products.This includes the middle class and upper class people.

Positioning:

They position people who are in search of pure products in day to day life and thus select the FMCG sector.

• SWOT Analysis of Patanjali

Strength :

• Major strength of Patanjali is the clean image of Baba Ramdev.He is a man who works for welfare of people, provides free yoga classes to the people as well as works for the welfare of nature and environment.
• The Prices of Patanjali products are low compared to other products.
• Patanjali provides healthier and safer products.
• Patanjali focuses on Swadeshi products.
• Patanjali maintains its trend and has loyal customers as well as a strong distribution channel.

Weakness

• Patanjali offers low margin to the distributors because Patanjali offers the products at very cheap price as compared to others.
• People sometimes blindly follow Baba Ramdev.

Opportunities

• Patanjali can extend its product chain to the Global market by doing tie ups because everyone is looking for safer and healthier products.
• Also Patanjalican diversify its products from FMCG to other industry.

Threats

• Patanjali heavily depends on agriculture and other natural practices for production of products.A poor cultivation affects Patanjali's manufacturing chain.
• In the fmcg sector competition is increasing day by day. So competition is a major threat to Patanjali.

Question: What about a global market? Why do those differences exist?

Patanjali is open to tie up with MNC's but under certain conditions. Patanjali wishes to maintain its values,morals and originality even after collaborating with other companies at the global market. Patanjali does not want to compromise with its value. So if a company at global level is ready to accept those conditions then surely it will tie up with the company.

Question :How does a diversification strategy benefit a company competing in a domestic vs. global market? What, if any, differences exist between the two?

Diversification plays a major role in the success of a company. Companies need to adopt different strategies for selling their products because people at global and domestic levels have different tastes and choices. Therefore companies have to opt for various strategies for successful establishment of their product.