I. allegations of harmful effects of chemical ingredients

       I.            HIRING POLICY

Ø  Emphasis on hiring expert people with domain knowledge

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Ø  Doesn’t hire MBAs or “Digital Ninjas”

Ø  Preferred Degree –M.Sc. Biology or M.Sc. Pharma




    II.            COMPANY CULTURE

Ø  Very professional but not profit maximization

Ø  Purpose driven –”reinvest in society and nation”

Ø  SpiritualCulture –no smoking/drinking

Ø  Dress code –white kurta




Ø  Started with Ayurvedic medicine –established faith

Ø  Next, health supplements and consumables –cereals, wheat –”WoM publicity”

Ø  Finally FMCG products –soaps, detergents, cosmetics, baby care products etc.


IV.            DESI TAG


Ø  Appeal to Indianess –shun MNC products

Ø  “Swadeshi brand” –genuine and pure

Ø  Refused foreign investment to protect desi tag




Definitely, many of the established FMCG firms which were somewhat complacent and comfortable with their market share are now shaken with the unprecedented growth of Patanjali. Some of the mistakes that global companies such as HUL, Nestle, ITC, P, Colgate Palmolive and Dabur committed, may be noted as below;


Ø  Remained focussed on existing competitors only and did not consider Patanjali as a serious challenger

Ø  Failed to react to the changing customer preferences for the natural and herbal products

Ø  Did not innovate and continued with the same product with cosmetic changes. Most of the existing companies did not have any offering in the herbal or natural categories.

Ø  Despite growing challenge from Patanjali, did not alter the pricing or distribution policies

Ø  Swadeshi or nationalistic sentiments aroused by Ramdev and allegations of harmful effects of chemical ingredients in the food products, were not properly countered.

Ø  Competitors remained unsuccessful in building a positive image in support of their brands.

Ø  Continued with the push strategies, spending heavily on advertising, sales promotion and middleman commission, thereby putting pressure on operating margins.

Ø  High employee and vendor costs did not commensurate with the growth in revenues, leading to reduced profitability