PATANJALI: CASE STUDY

MODULE- CONSUMER BEHAVIOUR

MODULE LEADER; PROF. MONIKA SURI
SUMBITTED BY: YASHVI BANSAL [BBA(B) 2018-21]

Q1 Prepare the VBM Model of Patanjali which will be useful post covid19 as a survival
strategy
- Value Based Management Model refers to a model, where the company focuses on
increasing the value of the customer. They should not only focus on short-term
benefits, but take decisions while keeping the bigger picture in mind. This model
includes creating, managing and measuring the value.

- This Model tells us better about the opportunities and threats depicting the degree of
urgency with which they should be attended.

- The Value Based Management Model aligns the company’s aspirations, together with
the management process and the techniques they use to analyse the company’s
performance with the key drivers of value.

The three elements of Value Based Management:

 Creating Value- the ways in which the company can increase or generate maximum
future value.

 Managing for Value- after creation, management comes into the picture. It includes
Governance, organizational culture, communication, leadership etc

 Measuring Value- this is the ultimate goal of the whole process. Value Based
Management is dependent on the corporate purpose and the corporate value, basically
includes the goals as to the reason the company adopted the whole model. The
corporate purpose can either be economic (Shareholder Value) or can also aim at
other constituents directly.

Aim of the VBA model to help ‘Patanjali’ survive post COVID-19 includes:
 Improve the allocation of resources.
 Help to better manage increased complexity and greater uncertainty and risk.
 Fix the broken Supply Chain due to unavailability of a lot of workers who migrated
due to the Pandemic temporarily and even/or permanently.
 Re-engage with the customers to ensure Customer Loyalty.

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 The model prepared below revolves around fixing the supply chain.

The Value-Creation/management model for Patanjali Post COVID-19

 Fix the Broken Supply Chain-

The pandemic has shown how for fragile supply chains can be in face of a global
crisis. The FMCG sector has seen panic-buying and thus leading to a gap between
availability in store and re-stocking. Also, the sudden increase online, of the products
have further up(ed) the gap, hence this needs to be fixed. Hence, the company needs
to expand its Direct-To-Consumer approach and increase their direct contact with the
customers.

 Perfect the mass-market brand building and innovation-

Patanjali is already known for its vast range of products, with the ‘Coronil’ in the
market, it showed to people its readiness to act and innovate a new product, as it is
already known for its daily health care products. Now, the company has to come up
with even more such products, as with the cases increasing, and the lockdown
increasing, it is important to bring new and relevant prodcuts on the shelf. Especially
when people rely on the brand for such products.

 Build relationships with local grocers and other mass retailers that provide advantage
of easy access to consumers- along with DTC Model, the company also has to
strengthen the relationship with retailers, so that the areas which do not have a store,
can still have access to the products.

 Entering into the developing markets early and freshly cultivate their new categories.
(grabbing the first movers advantage)

 Design their operating models for consistent execution of adding value and cost
reduction- as the business have had a low functioning due to COVID-19, Patanjali has
to cost the products in a way that it still is affordable to the people.

 Engage With the Traditional Consumers using A New Channel: this is similar to DTC
offering. As the older generations remain key and loyal consumers to traditional
products offered. In the pandemic, the younger generations have interacted the most
to buy products, but it is equally important to retain the old customers, like they
helped in Divya Pharmaceuticals, to spread word of mouth.hence, customer loyalty is
extremely important.

The company hence need sustainable strategies as mentioned above.

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Q2 Identify and explain the consumer Behaviour strategies that will eliminate the GAP
Between Patanjali and consumers under black Box Model to gain competitive edge .
The major issues faced by the company right now is maintaining its extensive supply chain,
as Patanjali has a variety of the products in the market, it has to make sure they reach the
consumers. Losing contact with the customers would prove fatal for the company’s fate .as
we can see, due to the pandemic, a consumer has to face several difficulties to reach the
product, Patanjali has to solve these problems. Hence, I believe that the model to be used here
is the ‘Buyer Behaviour as Problem Solving’.
This problems can be both, physical(accessibility and availability of the products) and
Psychological(if the products as safe to order at this time when people have mitheir wants
and are focusing on their basic needs)
Under this, Patanjali has to think of the issues one by one and come up with solutions.
This starts with unmet needs of the consumers, as the direct contact has been lost, Patanjali
has to make sure the customers remember it, as in, remember the fact that it is still easy to get
their hands on a Patanjali products, this talks about the accessibility.
However, want is as important as need it. Patanjali needs to use marketing techniques, as
marketing mostly includes creating and satisfying wants. The company should market the
products, under the swadeshi product tag which has helped create a feeling of nationalism
among the people as seen before. Indians have always believed in Ayurveda and natural
organic products, and Patanjali has an advantage of the image it has created and maintained
since the beginning. Hence, promoting further under the same umbrella will be very
beneficial for the company.
This model addresses both the rational and irrational factors that shape the buyer’s behaviour
of buying. It includes the external and internal factor involved in making those decisions.
This problem-solving method, helps us understand how the brain of the consumers work,
when trying to buy something in these tough times. This makes it easy to make strategies at
it aims at solving problems in small blocks.
Safety of products is as important, as the customers need to believe what they are buying is
extremely safe and won’t cause any harm. It is time for Patanjali to use its image and use the
trust it has created upon itself in the past years.