MxMIndia

Tag: Baba Ramdev

  • Sorry, consumers. We’ve failed you!

    Sorry, consumers. We’ve failed you!

    Sanjeev KotnalaDear Customers, I am sorry and guilty as a member of the industry that has collectively, with the government, failed you, the consumer. I say this after Patanjali’s Baba Ramdev got away lightly with just a minor rap on the knuckles… an apology.  I can bet that the debate about Babaji’s Patanjali and its misinformation campaign will not die down quickly enough.

     

    Apology of an Apology

    Okay, so the size of the apology was increased. But it appeared once in the larger size and once in the smaller size. It is minuscule compared to the total space and time consumed by Patanjali with its misinformation campaign. Hence, expecting the audience to have the same opportunity to see the apology as they had when they saw the campaign is futile. This means that most will remain unaware of the apology and continue to be under the influence of all-powerful misinformation and miscommunication. In a true sense, if we want a real example and deterrent, the apology must appear in the same media (Press-TV-Digital) in the same size and with the same frequency as the misleading campaign. Now, that may be too much to ask, but should that not be justified for a habitual offender brand? And till it happens, the brand should be debarred from communicating in the media. That would have been justice.

    I wonder if they ran a 15-second apology on TV and digital with the same channel and platforms. Logically, they should have.

     

    The Products are not Bad, the Misleading Information is

    Before you take it otherwise, let me tell you I firmly believe in remedies and the products that Patanjali propagates. However, it is all about the hugely exaggerated, unscientific, unsubstantiated claims the brand has been pushing with heavy media exposure riding on Baba Ramesh Yoga and Ayurvedic Acharya image.

     

    This is no time for Celebration

    It is not the time to celebrate the victory. This is just a demonstration of the industry and the government’s failure to curb such brand menace.

    No time to rejoice for the apology that the brand was forced to publish.

    This is like any other time- a good time for introspection.

    An industry that expects a celebrity endorser to do a due diligent check on the brand must take the blame when it feels at the creative and media level to question misleading claims. And that is not just about Patanjali, it is about the non-healthy health drinks- the Fair that now Glows and many other such brands.

    It is time to once again call upon every stakeholder and see what genuine efforts are needed so that no other brand dares to create and release misleading communication.

     

    Two Questions

    One way in which the brand should be penalised for the long-term damage it could have created on the highly influenceable minds of the masses. The courts and the ministry must work together to ensure that even if it is a witch hunt, Baba Ramdev and the brand are made an example of it. Is taking brands off the shelf good enough? Should the brand be asked to mirror the product’s misleading campaign media plan for the apology media plan? Or should we ask the brand to provide 5% of the revenue as a deterrent?

     

    What about the Future?

    I have often said this – No One Is Worried Of ASCI and the fragmented industry. Recently, ASCI has been trying to act bravely and get some teeth by working with the consumer affairs and information ministry. However, it remains a source of a sparkling array of meticulously crafted guidelines-  which remain what they are: guidelines.  It does not have the power to sanction a brand. And without that, brands are willing to risk litigation delays and what escape routes they can exploit.

     

    It is Not a New Issue

    I had seen the brand’s damaging approach and attitude many years back. I raised the issue- the year- Baba Ramdev was fighting and defending the brand in court battles with other brands. That year, Babaji was a Guest of Honour speaker at Goafest- the advertising and marketing industry’s flagship festival. I protested that the Baba, who has refused to follow ASCI guidelines, must not be invited as a speaker at an Ad Club and IAA event. I asked the industry associations to stand together against a habitual offender of ASCI guidelines, which every brand should consider sacrosanct.

    But my voice of dissent failed to find enough takers.

    Babaji entered and exited to a standing ovation from the industry.

     

    Can’t Blame Media

    Many may even want to question the role of media. They knew what they were publishing. Advertising whose promises and claims were questionable. Were they not supposed to be the guardians of audience rights? Well, one should not expect them to start scanning every campaign and sit in the seat of justice. However, the creative and the media planners must answer – what they were doing. Everyone wanted the cream till the party lasted.

     

    ASCI and Polite Self-Governance/Self-Regulation is Not Working!

    We are the noisy, naughty students in preparatory school who need the teacher in the classroom to enforce discipline. Our attempt at nudging the misguided brands to follow the guidelines has failed. Most brands smoothly side-step and repeatedly flout guidelines- knowing nothing will happen and nothing happens.! ASCI asks for an explanation. The brands take time to provide. Then, if the communication is found fault, the brands silently say sorry, and the business goes on; otherwise, everyone would have learnt their lessons by now. Sometimes, like Patanjali did, the brand takes ASCI to court.

    We need something more. It is not working- it is so broken- we must do something about it. How long can the audience be asked to sacrifice their interest in the absence of some real action?

    The brands that flout the rules are big brands. They understand the legality and how to escape it. They do it knowingly. There is an intent behind every action of the highly paid planners and creative and strategic people. They do it because industry self-governance is toothless and needs to be fixed.

     

    We failed the Industry & the Audience

    The creative agency, if any, willingly follows the brand directive. It dare not ask for substantiation. It will never refuse the work- because many others are in the line to do it.

     

    ASCI must get teeth or…

    ASCI must graduate from an industry body of guidelines to something that still constitutes the same way but can enforce discipline. It should be powerful to dictate the terms, and the media and creative industry must accept the ruling.

    It may lead to many court cases. The cases will further clarify what is allowed and what is not. Maybe the Ministry of Information and Broadcasting should foot the bill for these cases.

     

    Net-net

    ASCI must be given Teeth as the first port of call, or a decision/penalty/guidelines enforcer or some other framework must be created to address it. 

    Trust me, Exaggerated, False, and Misleading Claims will continue to be created and released, putting the public at large at risk because we lack a system to quickly address and nip them in the bud. Patanjali has been doing so for more than a decade- and hopefully, we in the industry know that by allowing a brand this free run, we have not lived up to our duty and responsibility. 

    We, as an industry, have collectively failed the audience.

    Let the recent happenings on the FMCG Health front, and Baba Ramdev/Patanjali be a call to wake up. If we do not self–govern, the law will govern, which may be a sad phase.

    Maybe every marketer, communicator, brand custodian should take a print of the Patanjali apology, frame it, and hang it in their room. Just to remind them not to participate in any process of creating or releasing misleading communication.

     

    Sanjeev Kotnala is a senior business strategy consultant and educator. He writes on MxMIndia every Wednesday. His views here are personal.

  • Will feature content and insights from Baba Ramdev

    India TV expands CTV portfolio with Yoga Channel

    By Our Staff

     

    India TV has announced an addition to its CTV portfolio – a 24×7 Yoga Connected TV channel. It will feature exclusive content and insights from yoga guru Baba Ramdev.

     

    Additionally, it will also have segments on healthy living, nutrition, and guided meditation aim to foster holistic well-being.

     

    Said Ritu Dhawan, Managing Director of India TV: “Yoga is not merely a workout; it is a way of life that encompasses physical, spiritual, and mental well-being. Through our exclusive CTV channel, we aim to promote this transformative practice and provide an accessible platform for viewers looking to embark on a wellness journey. The variety of shows on the channel will keep viewers engaged and informed.”

     

  • From genomics, to MNC-bashing, to human-oriented advertising, to teenage prodigies, to sporting and Bollywood icons, the 2018 edition of Goafest had it all

    Conference round-up:A paisa vasool show!

    By Rahul Chandawarkar

     

    The best Bambaiyya term to describe Goafest 2018 would be ‘paisa vasool’, as both the knowledge seminars and leadership summits were of high quality and provided ample knowledge enhancement.

     

    While the two-and-half day, annual event began with a rousing session by yoga guru, Baba Ramdev, it ended with an equally interesting session with Bollywood actor, Nawazuddin Siddiqui.  These two events were interspersed with sessions on Facebook, artificial intelligence, Swedish and Korean advertising, interactions with sporting icons, Jonty Rhodes, Rajyavardhan Rathore and Sania Mirza and two exhilarating sessions by teenagers Sparsh Shah (14), a gifted,wheel-chair bound youngster and Amelia Conway (15) a talented advertising film-maker.

     

    However, it was the yoga guru, who gave the event a rousing start with his aggressive statement, ‘Hum MNC companies kodhoolchatayenge’(we will make MNC companies bite the dust).

     

    Stating that the main objective of the Patanjali brand was to defeat and vanquish MNC companies, Ramdev said, “The East India company looted our country for centuries. The MNCs are doing the same now. This must stop. This why, we formed Patanjali to compete and beat them.”

     

    Expressing his confidence in the Indian economy, Ramdev said, “The Indian economy is growing at 10% as compared to the US and UK markets which are struggling at an abysmal 2%. There are opportunities galore in our own country.”

     

    Predicting that Patanjali would become the No 1 consumer products company in India very soon, Ramdev said, “We plan to introduce a wide range of dairy products, a complete range of apparels and even a drinking water brand called Divyajal next year.”

     

    Day two began with some scientific crystal ball-gazing, when Dean Donaldson and Jonathan Tavss, transformation strategists and digital futurologists from Kaleidoko predicted that artificial intelligence would become common place and that robots would dominate our everyday lives. They also explained how geno media would be the new frontier after social media and how countries across the world including India were investing in genomics.

     

    Cameron Worth of Sharpend took the technology discussion further when he demonstrated how the popular liquor products could be ordered, billed and consumed remotely with the use of technology like the ‘internet of things’ (IoT).

     

    Later, little, Sparsh Shah, just 14 and wheel chair-bound, afflicted with the rare, congenital disease osteogenesis imperfecta (brittle bone disease) sang, spoke and clapped and touched everyone’s heart. There was scarcely anyone with dry eyes, as this teenager from New Jersey, USA mesmerised everybody with an articulateness and a maturity beyond his years.

     

    Speaking on the twin topics of self-responsibility and social responsibility, Shah urged the audience to adopt a ‘can-do-will-do’ attitude to life. “All of us must be completely positive in our outlook. This is self-responsibility,” Sparsh said. Likewise, he urged the advertising fraternity to give back to society by taking up socially relevant campaigns. “There is an urgent need for inclusive advertising campaigns, where we help the less fortunate among us also make the journey,” the teenager said to thunderous applause.

     

    Later, young Bollywood actor Sidharth Malhotra displayed a remarkable yen for branding and marketing, as he answered questions with aplomb.To begin with, he asked the Goafest organising committee: “Have you allowed advertisements on the Goafest App? If not, then I would like to advertise my latest film on it!” to much laughter and amusement.

     

    Having thus set the tone, Malhotra in response to one, brand related question said that it was the brand that chose a personality and not vice versa. “This is the way it is working for me and I am happy with it,” he said. Expressing satisfaction at being able to endorse brands such as Brylcreem, Metro shoes and Pepe jeans, Malhotra said, “The Pepe jeans campaign has been particularly pleasing to me, considering that I was the first Indian to endorse this multinational brand of jeans. I was familiar with the product and hence enjoyed the campaign even more.”

     

    Malhotra singled out advertising campaigns for Amul milk, Cadbury chocolates and Bajaj electrical appliances as being very memorable. He even attempted to hum the Amul milk campaign jingle to drive home his point. According to the young star, it was important for advertising agencies to give back to society with socially relevant advertisments. “People like Aamir Khan and some advertising agencies have been doing a great job on this front,” Malhotra said.

     

    Later, Olympic silver medallist and minister of state for sport and youth affairs, Rajyavardhan Rathore expressed confidence that his government’s ‘Khelo India’ campaign of encouraging school level sports would go a long way in ushering a sports culture in the country.

     

    He also expressed satisfaction that the Prime Minister’s MUDRA (Micro Units Development & Refinance Agency Ltd) scheme had disbursed loans worth Rs 4.5 lakh crores  to micro entrepreneurs across the country in a very short span of time. “These are very positive developments for our nation,” Rathore said.

     

    Day Two concluded with South African cricketing icon Jonty Rhodes throwing light on the recent ball tampering incident in world cricket, stating, “Most cricket teams try to rough up the cricket ball in Test match cricket to generate reverse swing. Only thing, the Australians did it illegally and got caught!”

     

    On the final day, Rapha Vasconcellos, Head of Creative Shop, APAC Facebook explained why brands must focus on telling stories and use the social media as a platform to build meaningful interactions.

     

    Vasconcellos explained how short videos could be made for the mobile handset to drive home a brand’s message. “Small brands are teaching us to rethink our own craft. They are showing us the possibility of building a storyboard using your phone,” Vasconcellos said.

     

    In the same vein, Samuel Akesson, Art Director, Forsman&Bodenfors turned the entire concept of advertising on its head. Forsman&Bodenfors, an agency famous for its world renowned campaigns like Volvo Trucks – The Epic Split and Nike #Breaking2, is also the advertising agency which works very differently from any other agency in the world. They do not have any hierarchy and work as a collaborative team.

     

    Akesson said: “What we do is ‘human’ mostly. Perhaps there is a lack of humanity in advertising, which is why sometimes advertising is bad at making people feel anything.”

     

    Indian tennis icon, Sania Mirza later explained how advertising was more mature now than it was when she was a teenager. “Previously, I was asked to pose with the tennis racquet in a particular way and mouth some dialogues. Now, they are far more subtle and creative,” she said.

     

    In the post-lunch session, yet another prodigious teenager, Amelia Conway, just 15 and an advertising film maker (director, Adolescent) explained why it was important for teenagers to conceptualise and execute advertising campaigns for teenagers. “I am happy that advertising agencies in my country are waking up to this fact and providing us with the opportunity to work,” Conway said.

     

    Later, Wain Choi, chief creative  officer at the South Korean company, CJK-Valley explained how some inexpensive advertising campaigns had reaped very high dividends for brands. Burger King for example offered free coffee to anyone who volunteered to wake up sleeping commuters on Seoul metros at their designated stops, the message being printed on their eye patches!

     

    Similarly, the company, Uniq Flo got a lot of free mileage when they offered branded, cold resistant bubble wrap papers to shoppers to fix on their windows.

     

    The curtains were brought down by popular, Bollywood actor, Nawazuddin Siddiqui who spoke about his early days of struggle and how he considered the lead role in the under-production, biopic, Thackeray, as the most challenging role of his life.

     

    Rahul Chandawarkar is a former newspaper editor and presently a journalist, columnist communication strategist and triathlete based in Goa.

     

     

  • ​As expected, Baba Ramdev kicks off ​Goafest 2018 with a bang!

    Ramdev: “Hum MNCs ko dhool chatayenge!”

    By Rahul Chandawarkar

     

    Yoga Guru and founder of the Patanjali g​roup of companies, Baba Ramdev predictably gave  Goa ​fest 2018 a rousing start when he took the battle into the MNC camp with his spirited and energetic, inaugural address in Goa on Thursday evening.

     

    With his aggressive statement, ‘Hum MNC companies ko dhool chatayenge’ ( we will make MNC companies bite the dust), Ramdev lambasted the business policies of fast moving consumer goods (FMCG) companies.

     

    Baba Ramdev’s Mantras

    :: Only when knowledge, skills, emotions, research and innovation gets converted into WEALTH does it make any sense.

    :: You only learn 1% in classrooms. The rest, you learn in ever day life.

    :: One must complete the task at hand despite all obstacles.

    :: No dishonest business can last more than 10 years.

    :: Health is wealth. Exercise One hour every day.

    :: Good diet, good thoughts, good exercise and good sleep is the only truth.

    Stating that the main objective of the Patanjali brand was to defeat and vanquish MNC companies, Ramdev said, “The East India company looted our country for centuries. The MNCs are doing the same now. This must stop. This why, we formed Patanjali to compete and beat them.”

     

    Pointing out his major grouse against MNCs, Ramdev said, “MNC brands have blatantly used chemicals in their products, made fun of our traditional raw materials like turmeric and tulsi, made an unfair distinction between dark skinned and fair skinned people in their product advertising and made obscene amounts of profits. All this hurt me and motivated me to start Patanjali to counter this MNC scourge.”

     

    Stating that Patanjali had been registered as a not-for-profit charitable institution, Ramdev said, “We want to offer our country’s people with completely organic and indigenous products at affordable prices. This is because our motive is not profit. We are service oriented instead.”

     

    Lambasting the popular advertising practices of MNCs, Ramdev criticized toothpaste and soap advertisments which had sexual overtones. “Why do we need to use young men and women in a glamorous setting to sell these products. We at Patanjali keep it simple. We simply speak about the strength of our products and it is paying us rich dividends. We avoid wasteful expenditure on advertising this way,” Ramdev said.

     

    Driving home the point, Ramdev claimed that the Patanjali toothpaste had captured  50% market share of a prominent, MNC toothpaste brand. “Likewise, our Aloe Vera brand is now a Rs 5,000 crore brand with less than Rs 10 crores of investment,” Ramdev said.

     

    Expressing his confidence in the Indian economy, Ramdev said, “The Indian economy is growing at 10% as compared to the US and UK markets which are struggling at an abysmal 2%. There are opportunities galore in our country.”

     

    Predicting that Patanjali would become the ​No 1 consumer products company in India very soon, Ramdev said:​ “We plan to introduce a wide range of dairy products, a complete range of apparels and even a drinking water brand called Divyajal next year.”

     

    Sharing his thoughts on human resource management, Ramdev stressed the need to compensate employees fairly and also creating an emotional connect to retain good quality human resource.

     

    In conclusion, the yoga guru stressed the need for working professionals to keep themselves fit and healthy. “Everybody must devote one hour every day to exercise and fitness. You must either do yoga, running, swimming, cycling or some exercise to keep healthy and fit,” the yoga guru said before proceeding to perform a string of yogic asanas on stage including a headstand!

     

    Rahul Chandawarkar is a former newspaper editor and presently a communication strategist and freelance journalist based in Goa​

     

     

  • He has rewritten many A&M rules but has also shown utter disregard and no respect for collective self-regulation, writes Sanjeev Kotnala

    Why it’s not a good idea to invite Ramdev to Goafest

     

    By Sanjeev Kotnala

     

    I am raising a voice because others have decided to conveniently remain silent. It must share with my well-wishers the reason for my proposed blackband protest against Baba Ramdev, keynote speaker at Goafest on April 5, 2018. The fest is the annual event organised by the AAAI (Advertising Agencies Association of India) and The Advertising Club. I am surprised that no one else sees it this way and is seeking an explanation for serious oversight by industry leaders?

    It is a demonstration of isolation and fragmentation in our industry. We fail to appreciate collectivism. We do not believe in, but subscribe to guidelines of self-regulation. These guidelines emerging under collective wisdom are supposed to be size, category and celebrity-agnostic?

     

    We will never see a NIRAV MODI or a VIJAY MALLYA speaking at a banking conference celebrating stringent banking security measures. Then why is Baba Ramdev invited to the celebration of creativity?

    Baba Ramdev has demonstrated incredible consistency in challenging, the collective wisdom of the fraternity. His organisation has knowingly taken chances and flouted guidelines. Last January, 25 our of 33 Patanjali ads were held to be false or misleading by ASCI. They have challenged ASCI scope in the court of law and called it unconstitutional.  It seems he and his team seem to suffer from Obsessive Compulsive Disorder (OCD) of poking ASCI.

    Though headed by smart well-intending seniors who have experience of serving across the industry bodies, we live a cocooned life of isolated celebration.  We rarely demonstrate a feeling of togetherness.  We must some time try and put the collective health of industry before glitter at individual associations. Goafest in my view is one such occasion.

     

    A time when we as an industry should isolate repeat offenders, stand together and strengthen ASCI, we are celebrating Baba Ramdev. What is the signal we are sending?

    I have no question for the yogi-turned-businessman, who has shown utter disregard, lack of respect and confidence in the collective self-regulation.

    He has re-written many rules marketing and advertising. He has made MBAs, marketing gurus and consultants rethink their strategies. He has taken on the might of MNCs in the dynamic marketplace and succeeded.

    There is respect for what he has achieved. However, there is no reason for him to be speaking the celebration of creativity,  the Kumbh of Indian advertising, a festival of ethics and morality in the business.

    It is a protest to show solidarity with ASCI, which has been doing exemplary work for the Industry. I see no reason why associations like IBF, ISA, AdClub, AAAI, INS and IAA should not support ASCI.

    We Have Two Ways To Show Your Support And Protest. Wear White Or Wear a Black Band. Even, if I am alone protesting on April 5 at Goafest, it will not bother me.  At least I would have made a beginning and remained true to self.

    I may be the only one protesting but I am surely not the only one who feels this way.

    I hope ASCI too questions the invitation to Baba. I hope CCC (Consumer Complaints Council) members raise their voice against the lack of overt support, understanding and collectivism in the industry.

     

    If Baba and team are misguided and don’t know of ASCI code, they can e-learn about it here. Please do watch this video to know what ASCI is and how it works. And if you can, do tell Baba what you think!

     

     

  • To be launched later this year, Discovery Jeet will air larger than life inspirational stories including a 65-ep biopic series on Baba Ramdev

    Now Discovery to launch a Hindi GEC

    By A Correspondent

     

     

    Discovery Communications has announced its plan to roll out Discovery Jeet, a new entertainment channel across India, starting in late 2017. The new channel will be the flagship for the network’s ambitious investment into original local productions in India around a range of programme genres including “true crime investigations, small-town heroes and gritty survival”.

     

    Discovery is scaling up investment in over 200 hours of local content originals which will premiere on this new channel. Said Karan Bajaj, SVP and General Manager, South Asia, Discovery Networks Asia Pacific:

     

    “We are excited to launch Discovery Jeet, which will bring a new style of entertainment, in a truly local, bespoke, ground-up offering. It borrows the best of Discovery’s ethos, seeded in fact and purpose-driven content, and leveraging global resources to mount it at a scale that delivers larger-than-life stories.”

     

    Arthur Bastings, President & MD, Discovery Networks Asia Pacific, further elaborated on the importance of this evolutionary step, leveraging new ways to extend the reach and relevance of Discovery across the subcontinent. “The expansion into general entertainment with JEET redefines how Discovery will connect and interact with new young audiences across the heartlands of India. JEET is fun, relatable, and exciting and brings to life the captivating, real stories of India’s own in a manner never seen before!”

     

    The line-up of shows planned included Swami Baba Ramdev: The Untold Story, a scripted biopic series tracing Baba Ramdev’s journey from a life of anonymity to what it is today. There is also Gangs of Mumbai,  a series on the colourful, larger-than-life characters from the Mumbai underworld.

     

  • Patanjali Ayurved is on way to $1bn sales in FY17 with HUL, ITC, Nestle India and Britannia occupying the top 4 slots amongst FMCGs

    Patanjali as 5th largest Indian FMCG?

     

    By Namrata Singh & Partha Sinha

     

    At Patanjali Ayurved’s manufacturing facility in Haridwar, there is brisk activity as cartons of freshly made products are being loaded onto trucks to be dispatched to stores across India. With the financial year nearing a close, an official pointed explained, all hands are on the deck to help the company achieve its targeted turnover of Rs 5,000 crore this fiscal.

     

    For a manufacturing company set up about 10 years ago, achieving a Rs 5,000-crore turnover is not easy. However, for Patanjali Ayurved, which is breaking conventional marketing norms, sales are inching up month on month. Sources in the know believe Patanjali could have clocked monthly sales of around Rs 600-700 crore in January and February, which means Baba Ramdev’s baby could become a billion-dollar entity, with its annualised turnover expected to cross the Rs 7,000-crore mark before the end of fiscal 2017.

     

     

    Brand Patanjali driving buzz on social media

     

    By Anumeha Chaturvedi

     

    Brand Patanjali generated around 15000 conversations on Twitter in the period between August 2015-January 2016, according to data compiled by social media analytics firm Blueocean Market Intelligence.

     

    Chatter around Patanjali was largely around its competitiveness (60%) as an FMCG brand. Some discussions were also led by the indigenous nature (17%) of the brand, the quality of its products (13%) and its marketing strategy (10%).

     

    In many instances, discussions/posts around the brand referred to Baba Ramdev thereby indicating that the brand is strongly associated with Baba Ramdev and he is a strong brand ambassador driving the brand’s image.

     

    A lot of buzz was observed around Patanjali becoming a strong threat in terms of market share to rival MNCs such as Colgate, HUL, ITC and Emami, in the FMCG space.

     

    Discussions touched upon Patanjali emerging as a strong player in the FMCG market; particularly its soaring sales graph gathered a lot of attention.Many consumers were seen commenting on how their products, particularly noodles and honey were not only cheaper but also better than those of other competitors. Few consumers went to the extent of expressing their wishlist of products such as sanitary napkins, fairness creams, that they expect in future from Patanjali. Top trending hashtags for the brand were Patanjali, Ramdev, and Babaramdev, according to Blueocean.

     

    In terms of its marketing strategy, discussions centered around Patanjali’s tie-up with Future Group. This partnership was seen as a sound approach to further strengthen the brand’s foothold in the FMCG market through Future Group’s outlets such as Big Bazaar and Easyday.

     

    Furthermore, efforts such as launching Patanjali Atta Noodles in the absence of Maggi noodles in the market, targeting market segments dominated by MNCs, direct marketing, seeking exclusive space at stores, were appreciated as compelling and strategic marketing moves

     

    The brand’s marketing related update that it is focusing on advertising and has kept aside Rs 300 crore for advertising and promotion, also gathered some attention according to the research.

     

    Which means, Patanjali could become the fifth largest FMCG company in the country, after Hindustan Unilever, ITC, Nestle India and Britannia Industries. This would bring it well ahead of traditional FMCG players like Dabur, Godrej Consumer Products and Marico.

     

    In an exclusive interview at the company’s headquarters, Acharya Balkrishna, MD, Patanjali Ayurved, said in the current fiscal, as of early-March, the company’s turnover has already crossed Rs 4,500-crore and is cruising at a monthly rate of about Rs 500-550 crore. “Our target is to go be yond Rs 500 crore a month.Because we are also making plans for future expansion, we are moving in line with the target,“ he said.

     

    “We may even reach Rs 600 crore a month mark -that will give us an annual turnover of approximately Rs 7,000 crore,” said Balkrishna.

     

    Even at the current level of Rs 4,500-crore turnover, Patanjali has paced ahead of oral care leader Colgate-Palmolive (India), challenging it which its `Dant Kanti’ toothpaste.

     

    Given that Patanjali has been grabbing eyeballs through its advertising, industry experts believe the company could soon even reach Rs 10,000 crore turnover, which would make it as big as ITC’s non-tobacco FMCG sales.But Balkrishna said that would take time. “We have to plan, right from procurement of raw materials to processing to manufacturing and marketing. We work on a single channel right from the farmer to the end consumer and that is the real reason why our quality and costs are under control. There are very few companies in the world which may be following such a system,” he said.

     

    “We buy raw materials directly from the farmer. In other companies, raw material sourcing and marketing of products are done by different entities. So we don’t have sudden peaks and troughs in growth, we plan a steady growth. It’s not like a share market where one day there is growth and the other day a slump,” Balkrishna said.

     

    The rural market is another area where FMCG biggies could face a tough challenge from Patanjali’s products, which are priced below regular brands because the company consciously operates on thin margins. “We are expanding our reach through tempos which can go deeper into rural markets. We will begin with 500-600 tempos and will gradually expand the network,” said Balkrishna.

    Source:The Economic Times
    Copyright © 2016, Bennett, Coleman & Co. Ltd. All Rights Reserved
    Licensed to republish

  • Patanjali Ayurved injects new life into herbal market, helps rivals sell more personal care products

    Jai Patanjali! Jai Herbal!

     

    By Sagar Malviya & Neha Tyagi

     

    MUMBAI: In a short span of time, Patanjali Ayurved has not only made a name for itself among Indian consumers, but also fuelled expansion of the herbal products market and helped rivals sell more home and personal care products, grabbing share from MNCs.

     

    The Baba Ramdev-led company’s sales jumped 64 per cent to Rs 731 crore in the six months ended December and rivals Dabur and Himalaya grew in double digits in a consumer products market that expanded barely 6 per cent, according to IMRB data. The figures exclude commodity products such as ghee and atta.

     

    What’s helping these firms is a growing preference for Ayurvedic products known for natural ingredients and health benefits. In addition, herbal products are cheaper.

     

    “Patanjali has registered a near-80 per cent growth in penetration, which is about 5 per centage points on an absolute level, in one year,” said K Ramakrishnan, general manager, IMRB Kantar Worldpanel.

     

    “The first wave of growth came from personal care products only, but the recent growth has been driven by homecare and food and beverages, which still has a smaller base,” said Ramakrishnan.

     

    Patanjali started in 1997 as a small pharmacy in the holy town of Haridwar to make healthcare products and was incorporated in 2006 as a company to sell personal care, food and beverage products through its own outlets. The company expanded its reach from 200 Patanjali outlets in 2014 to 5,000 franchise stores currently and launched more than two dozen mainstream FMCG products as none of the existing herbal players catered to categories such as noodles, oats and detergents.

     

    In October last year, Patanjali formed a marketing partnership with Future Group, which will offer over 300 of its products in 77 categories through stores such as Big Bazaar in about 250 cities. Four months after partnering with Future Group, the country’s largest retailer, Patanjali products have cornered a 7-12 per cent share in categories such as detergents, toothpastes, soaps and shampoos at Big Bazaar stores. In food products including oats, noodles and honey, the share gains are 7-37 per cent, according to Dunnhumby, a UK-based research company that has tied up with Future Group for data science.

     

    Patanjali has grabbed share from non-Ayurvedic companies. While the growth of Ayurvedic brands in the face wash category increased to 50 per cent from 36 per cent earlier, the growth of non-Ayurvedic brands eased to 16 per cent from 21 per cent a year ago. The share of market leader Himalaya remained unchanged at 35 per cent as Patanjali gained 7 per cent share.

     

    In shampoos, sales of Ayurvedic brands more than doubled to 194 per cent, while for multinational companies, it declined to 15 per cent from 21 per cent earlier. Categories such as chyawanprash, amla and aloe vera juice saw growth double to 42 per cent, with Dabur retaining its 53 per cent market share.

     

    “This unusual phenomenon of consumer products market disruption is rare as brand erosion or loyalty for well-established brands generally doesn’t happen so quickly,” said Devendra Chawla, president, food and FMCG, at Future Group.

     

    Patanjali products were purchased by about 21 per cent of Future Group shoppers in January compared with 2 per cent in October. “While Ayurveda brands were always there, the entire category has now arrived with a bang, thanks to heightened awareness benefiting the overall ecosystem,” Chawla said.

     

    Patanjali attributes its success to consumer shift from non-Ayurvedic brands owned by multinationals to Indian herbal companies. Its products are on average 15-20 per cent cheaper than the competition and several rival companies have been running offers and promotions to compete with them.

     

    “Other Ayurvedic companies are coming up with good quality products at even cheaper prices, which is ultimately doing good. The country is huge and the FMCG market is so large that we may not be able to provide for everyone,” said Acharya Balkrishna, managing director at Patanjali Ayurved, adding that the company has almost met its sales target of  Rs 5,000 crore for the financial year ending March 2016, more than double the revenue of Rs 2,000 crore in 2014-15.

     

    Hindustan Unilever’s net sales increased 10 per cent to more than Rs 30,000 crore in the previous financial year and Colgate-Palmolive (India) sales rose 12 per cent to Rs  3,955 crore.

     

    Source:The Economic Times

    Copyright © 2016, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • The company recently hired actor Hema Malini to endorse its biscuit brand

    Baba Ramdev’s Patanjali sets aside more than Rs 300cr for ads and promotion

    By Shambhavi Anand

     

    Yoga guru Baba Ramdev’s consumer goods company Patanjali was the third most advertised brand on television in India during the last week of November, behind Cadbury and Fair & Lovely.

     

    Patanjali’s TV commercials were telecast 12,969 times during November 21-27, according to data released by the Broadcast Audience Research Council (BARC) India, a joint industry body set up in 2012 by broadcasters, advertisers and advertising agencies to measure television audience.

     

    “There is a definite shift in gear (on Patanjali’s part) to make themselves more visible,” said Vandana Das, president DDB Mudra (north), an agency that handles advertising for Patanjali’s key products – noodles and ghee. “They take up some key products and go for full blast advertising depending on the demand and supply situation,” she said.

     

    According to media and advertising experts, the Rs 2,000 crore Patanjali Ayurved has set aside more than Rs 300 crore for advertising and promotion, and is set to step up its publicity campaign further. The company recently hired actor Hema Malini to endorse its biscuit brand.

     

    Cadbury, owned by Mondelez, has consistently been on top since the week starting October 10 with insertions – number of times a TV commercial is telecast on different channels across the country – ranging from 31,052 to 46,872 in different weeks. While e-commerce companies Flipkart, Amazon and Snapdeal followed the chocolate brand closer to the festive season, they have since disappeared from the top ten advertisers chart.

     

    BARC India has a reach of 153.5 million TV households, representing the entire country and all modes of signal. Of this 77.5 million are urban TV households and 76 million are rural TV households. This includes metro cities, towns with population of 10-75 lakh, and urban and rural areas with population of less than 10 lakh.

     

    Source:The Economic Times

    Copyright © 2015, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • In Freaking News, Ranjona Banerji reviews the fare in the morning papers and the nightly news. And sometimes the afternooners, the newsmags and all that's on the Web

    Ranjona Banerji: The news that did not happen on TV

    By Ranjona Banerji

     

    All day on Monday all that happened in India was that yoga teacher Baba Ramdev and a few thousand followers continued their protest against corruption and black money in New Delhi. That is, if you watched television. As the day progressed, political leaders attended the protest and gave speeches. That was it. The rest of the news day was in Shavasana – the dead body pose.

     

    Not however, if you read the newspapers on Tuesday. Grains rotting in Gujarat, Haryana minister Gopal Kanda on the run after an employee’s suicide writes a letter saying that a suicide note is not admissible, the latest on the Mumbai violence, especially the provocative doctored videos on the attacks on Muslims in Myanmar, Sharad Pawar given the number 3 slot in the Cabinet behind AK Anthony, a woman researcher allegedly molested on the IIT Mumbai campus by a staff member and the end of the Olympics.

     

    This is just a smattering of the news that did not happen on TV. There is more, though undoubtedly a lot of it is city specific. However, it would have been interesting to know how Delhi reacted to the traffic snarls created by Ramdev’s protests, whether people suffered or not, how many were affected and so on. TV sadly did not oblige.

     

    ***

     

    Press Council of India chairman Markandey Katju has been mainly silent after his dramatic ascension to the throne. But now he’s popped up again. Strangely, it is not the media which is his focus. Rather it is West Bengal chief minister Mamata Banerjee, who he had once lauded for her honesty and determination. Now he is appalled at her authoritarian ways after a farmer was arrested after he questioned the CM at a rally. Banerjee accused the farmer of being a Maoist.

     

    Katju has also stated that Anna Hazare and Baba Ramdev’s anti-corruption movements are “empty gas”.

     

    He said: “Nothing is going to happen by Anna or Ramdev’s crusade against corruption”. The former judge said he was not justifying corruption but instead was pointing out that India was going through a “transitional period where there is no moral code”. His prophecy: corruption will continue for 15 years.

     

    Presumably, we will all become moral after that.

     

    * * *

     

    What does one make of anti-corruption activist Kiran Bedi’s statement that the media spends too much time on “small rapes” (she then said she meant rapes by “small” people) instead of corruption? In Bedi lies a lesson for the media. She was pumped up for being India’s first female IPL officers and qualities were attributed to her which she never had. Once she was made into a heroine in the people’s eyes, it became very difficult to dethrone her. As a result of all that hype, she is now in textbooks and has won numerous awards.

     

    Prolonged exposure to her during the Anna Hazare-led movement has however exposed her many short-comings. Now we know that amongst her other faults, she is also dismissive of rape. Some female role model.

     

  • Spirituality is on the path of marketing with Baba Ramdev, Art of Living and others foraying into the consumer space

    Trusts of Baba Ramdev, Art of Living etc emerge as large consumer product makers?

    By Writankar Mukherjee & Sarah Jacob

     

    Spiritual gurus and ashrams are widening their reach among the populace not just through their teachings but through products as well.

     

    If Osho slippers are a craze among fashionable youngsters, Baba Ramdev’s Patanjali line of personal care and packaged food products and Art of Living’s body lotions and ayurvedic energizers too are finding takers beyond their followers.

     

    “These products have the potential to challenge some of the top FMCG brands in the market,” Sanjiv Goenka, chairman of hypermarket chain Spencer’s Retail, says.

     

    Industry observers say spiritual trusts such as Sri Sri Ravi Shankar’s Art of Living, Baba Ramdev’s Patanjali Ayurved, Aurobindo Ashram, Pujya Bapuji’s Sant Shri Asharamji Ashram, Coimbatore-based Isha Foundation and the organisation that runs Swaminarayan Akshardham are all on the cusp of emerging large consumer product makers.

     

    Some of them plan to widen distribution of their products-so far largely sold at their ashrams-through kirana stores, supermarkets and online retailing. Some are entering into back-end integration for commodity sourcing and are building distinct brands.

     

    Spencer’s plans to sell such products at its outlets-there are more than 200 of them-and is open to offer larger shelf space than even some mainstream brands.

     

    “These organisations have huge brand pull and Ayurveda products always do well. It is a potent pull factor,” says Mr Goenka.

     

    Advertising veteran R Balki thinks it would take a while before these products compete with the established brands, but says they can create a niche for themselves. “These products have a great base or personality-they tend to connote health, nature and purity,” says Mr Balki, chairman of advertising agency Lowe Lintas & Partners.

     

    PROFITS FOR CHARITY

    Baba Ramdev started retailing his Patanjali line of FMCG products via through kiranas and modern retail in April. Acharya Balkrishnan, promoter of Patanjali Ayurved Products and a close aide of Ramdev, said this would allow the firm more than quadruple its sales to 2,000 crore this fiscal from 455 crore in 2011-12. If achieved, this would make Patanjali larger than Fair & Handsome and Boroplus-maker Emami and at nipping distance of Colgate-Palmolive. Patanjali Ayurved says it achieved a net profit of 100 crore last fiscal.

     

    Being not-for-profit organizations, spiritual trusts plough back all their profits to sustain their organisations and charitable work.  If Patanjali has decided that none of the board members will earn from the company’s profits, others too say profits from sales will be used to support their activities.

     

    “Through the sale of the products, Art of Living funds its various service initiatives like the 185 free schools which it runs in the Naxal and the tribal belts of India,” says Umesh Pradhan, trustee at Sri Sri Ayurveda Trust, the FMCG arm of Art of Living. The trust makes creams, shampoos, body care lotion, scrubs, cleansing milk, soaps, ayurvedic energisers and juices.

     

    Isha Foundation, which has recently ventured into the FMCG space, says the foray is to support its various activities. Pondicherry-based Aurobindo Ashram, which forayed into FMCG products as vocational development for its inmates, now retails incense sticks, soaps, candles, perfumes and furniture through Khadi Bhandar and even in overseas.

     

    HOME, AWAY & ONLINE

    Consumer goods companies take years to build a distribution channel and consumer base while devoting large investments into branding. Big ashrams already have a loyal consumer base among their devotees running into millions.

     

    “Our devotees are our primary consumers,” says Mr Pradhan of Art of Living, which claims it has more than 300 million followers across the world. It sells its products through ‘Divine Shops’ set up at locations where it organises its programmes, as well as through the world’s largest online retailer Amazon.

     

    Ahmedabad’s Sant Shri Asharamji Ashram sells its products through outlets at ashrams, mobile vans and at devotees’ homes.

     

    Bochasanwasi Shri Akshar Purushottam Swaminarayan Sanstha (BAPS), the socio-spiritual Hindu organisation that runs Swaminarayan temples and Akshardham in New Delhi and Gandhinagar, retails at 800 temples across India, US and UK. Its chyawanprash, honey, oil, tea, shampoo and dental care products, sold under BAPS Amrut brand, are also retailed online.

     

    Baba Ramdev, meanwhile, has big-ticket plans for rural India. His Patanjali Ayurved plans to launch swadeshi seva kendras with self-help groups by August.

     

    “We hope to open around one lakh swadeshi kendras, especially in villages with less than 3,000 people so that they become self-sufficient and empowered,” says Mr Balkrishnan of Patanjali Ayurved.

     

    BETTING ON HEALTH, CULTURE

    So what ties spirituality with consumer goods? “Once you come into the spiritual path, you understand how it is connected with the body and mind. You tend to become conscious of chemicals being used on your body and prefer more organic food,” says CR Sudarshan, a volunteer at Art of Living’s ayurvedic clinic and its retail chain Divine Shop in Bangalore.

     

    Sant Shri Asharam ji Ashram’s brochures say its products extend the benefits of “the pristine rishi culture to the masses at lowest cost possible”. Patanjali Ayurved is pitching its products as “swadeshi,” claiming they are at least 30% cheaper than national brands.

     

    Inputs from Sagar Malviya in Mumbai

     

    Source:The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved