It is fairly obvious that Patanjali has now got good traction. If it is headed to Rs. 10,000 crores in turn over it is obviously a big enough brand for the Colgate, HUL, etc. to sit up and take notice.
Patanjali is selling for 3 main reasons – one is that people think it is more organic and less chemical driven like the mnc products, and people like a ‘patriotic’ feeling – and are happy to contribute to an Indian company instead of an mnc, and of course there is price.
Now if you are a FMCG company in India how will you react to this development? You need to live, thrive and protect your market share and margin. Remember what gives good solid pricing power is some kind of a proprietary technology or a strong brand. So the brand has to be protected at all costs…so here are the steps:
- Get the press to write about ‘quality’ tests done in random labs: this is one of the best ways to scare men and women from buying poor quality stuff – so biscuits, honey, soap, toothpaste, brush…are all attacked a little subtly so that there is a whisper campaign. One neighbor whispers ‘the ghee is really full of vanaspati I HEARD’ or ‘my servant was telling me that her hands burn if she uses the Patanjali bar soap for washing utensils…’ . Such rumors well planted can cause a lot of damage. When Nirma was launched such attempts were made.
- Talk about how ‘Baba’ run companies may not comply with the strict laws: this one is easy. In a country where the laws were made by 30,000 Englishmen to control 30,00,00,000 it is easy to find violations. ‘Not reporting that you changed the components’ or ‘you informed us after 43 days..actually you had to do it in 39’ kinda things are easy to find. Just recruit a dog and the sniffing can happen. Remember Gen. V K Singh’s word for the media? So this too is not very difficult to manage.
- Poor Corporate Governance: Baba is a bachelor, but his devotees are not! So it will not be very difficult to find some corporate governance issues in any business. Running a huge company and pretending that he cannot find a successor is a corporate governance issue too – why is the press not chasing such non=agerians do they? They do not have an agenda to chase him.
- Good product but poor packaging: Easy low hanging fruit to attack. Attack the quality of the outer wrapper, attack the quality of tube, quality of the toothpaste tube cap. Once you attack this and tell people ‘a broken cap can mean that the toothpaste can be infected’ it will throw people out of the queue or buying Patanjali products.
- Talk about black money: as our paragons of virtue the FMCG manufacturers do not deal with cash, they start a smear campaign saying ‘Patanjali’ is not so clean..etc. etc. So a few ‘pure’ and ‘white’ customers start worrying about this.
- Rubbish the content: “Subra we all know that biscuits have to have maida..why is he claiming it is wheat? Such questions planted on FB can easily get 10,000 hits…and sow the seeds of doubt.
See what all are going to happen…..LOL and continue to buy the same stuff…i have been using honey, biscuits, toothpaste, soap, shampoo, room freshener …..
Post Footer automatically generated by Add Post Footer Plugin for wordpress.