Judo Techniques Used By Patanjali Against FMCG

Giant Godrej Consumers

By- Group no. 7

Godrej Consumer Products Ltd, a mammoth FMCG company has

been performing good in most of their segments. However, the new
entrant Patanjali Ayurveda which started as an alternative healthcare
business, established itself in the FMCG sector. The following case
presents how Patanjali used the judo techniques to become one of
the largest consumer brands amid stiff competition from national
and international giants.

Patanjali, was conceived as an Ayurvedic healthcare company. It very

well used the puppy dog ploy to enter the FMCG sector. Massively
promoted by Ramdev, the brand was, for long time, considered to be
focused on ayurvedic healthcare products and clinics. No major
FMCG company including Godrej could identify that Patanjali will
soon be one of their chief competitors.
Until 2016 when Patanjali was making huge waves in the FMCG
segment, Godrej refused to consider them as a competitor.
Adi Godrej had said in one of his interview that they are only selling
Ghee and honey to the middle and lower middle class in urban areas.

Patanjali clearly defined its competitive space in the ayurvedic

products. This was a segment where no other company could
imagine the potential. Patanjali tapped in the underlying customer
sentiment that herbal and ayurvedic products are superior and
harmless compared to the chemical based products. However, the
large brands took time to realize that this will be a game changer.

Patriotism and religion were two more strong sentiments that

Patanjali exploited to it’s favors. In future these sentiments helped
the company amid many controversies. Godrej, though was
conceptualized during the Independence movement as a part of Quit
India movement, could not build that patriotic sentiment about their
products. Patanjali utilized the intangible asset of competitor which
Godrej ignored.

Soon as Patanjali had established itself with its initial offerings of

honey and ghee, they followed up fast flooded the market with a
range of herbal products. This was highly appreciated by the
consumers and the brand started to grow faster than any other
FMCG company. Especially the personal care products were doing
very well for Patanjali and soap became a part of this new war.
Godrej which was super confident that Patanjali can’t harm it,
realized this very late. By the time they started responding with
Godrej No.1 Ayurvedic soap and Aloevera soap, Patanjali had
already created a space for itself.

While the sumo players were unable to realize and act against
Patanjali, the company was strengthening its manufacturing and
distribution channels. Soon Patanjali products became available in
the remotest of the location. With a strong distribution network they
were gripping the opponents in their own game. Godrej had earlier
assumed that Patanjali will be restricted to urban areas but it was
too late for them to realize that Patanjali had developed vast
distribution network. Patanjali worked on building up its own
distribution network, but it hugely leveraged the existing
competitors’ channels to reach the remote locations.

Patanjali had some controversies about the ingredients in their

products and the quality of certain products. The company
demonstrated UKEMI very well. They were fast enough to realize
that such issues could cause severe damage to the brand. Patanjali
utilized the emotional connect with consumers to win over such
arguments. They also utilized the towering image of Ramdev to
counter such arguments. Recently Coronil controversy happened,
where Patanjali claimed it to be a cure for COVID-19 and the
licensing authorities denied such claims. They went silent on the
matter for a while and reappeared after sometime with W.H.O
recommendation of the medicine.

Patanjali has thus demonstrated and practiced Judo techniques as a

start-up and successfully established itself and became a major
challenge to the FMCG brands.