Competitors Analysis: This refers to the assessment of the strengths and weaknesses of the

competitors of a company. Below mentioned are the major competitors of Patanjali Dant Kanti in the
Toothpaste Industry:

1) Colgate: Undoubtedly the biggest player in the industry, Colgate is the brand that has
gained the trust of consumers. It has been in the business for a long time and has expanded
itself all over the world. The strengths of the company are as follows:
● Strong Customer Base
● Strong Supplier Network and Distribution Channel
● Diverse Product Line
● Large Free Cash Flows

Despite being a brand that enjoys such huge reputation, Colgate also has some weaknesses
that are mentioned in the following points:
● Increasing competition
● High Production & Technology Costs

2) Pepsodent & Close-Up (HUL): One of the biggest FMCG companies, HUL has launched
two toothpaste brands in the competition – Pepsodent and Close-Up. Both these companies
have the following strengths that differentiate them from their competitors:
● Offers solution to specific problems (bleeding gums, cavities, sensitive teeth)
● USP: strong teeth, teeth whitening, fresh breath

However, both these brands face the following weaknesses:

● Intense competition - from external brands and from each other as well
● Low penetration in rural areas

3) Dabur Red:
4) Sensodyne:
Other players in the industry namely Oral B, Babool Meswak and Vicco Bajradanti are also among
the list of competitors.
Market share of Patanjali Dant Kanti with respect to other competitors:
The following pie chart represents the market share of the main players in the toothpaste industry:

According to the figure, the major share (47%) is occupied by Colgate, followed by other big brands
like HUL and Dabar. Dant Kanti occupies 5% of the total market share. Sensodyne captures 4% and
other players (eg. Oral-B, Babool Meswak & Vicco Bajradanti) hold around 10% market share.

PESTLE analysis – It is the analysis used to study the macroenvironment of any company or a firm.
The macroenvironment consists of larger societal forces that affect the microenvironment –
demographic, economic, natural , technological ,political, and cultural forces which cannot be
controlled by the company by its own actions (specifically in the short run). PESTLE analysis allows
the company to form an impression that might impact the new product/firm.

POLITICAL FACTORS-Patanjali which was founded in 2006 at Divya Pharmacy in Haridwar is a

100% Indian brand. Hence, it’s ideology of ‘Make in India’ goes well with that of the
Indian government. Government also encourages development of medicines other
than Allopathy.

ECONOMIC FACTORS-The company works on the principle of ‘swadeshi’ product. It also sources
it’s raw materials directly from farmers and thus eliminates margin. It also has its
own farmland for raw materials which boosts their profit. This is why the price of
each product is 15 – 20% less than other competitors making it a highly demanded
company in Indian market. GST implementation has also favourably impacted the
company, as it increases the income capacity of the middle class
SOCIAL FACTORS-Through yoga, Baba Ramdev has a huge following which has impacted the
marketing of Patanjali. Consumers are promised chemical free and swadeshi
products. The whole idea of Ayurveda and yoga captures the attention of users. Now
that Yoga is internationally recognised and practiced, Patanjali has a growing market
outside India too. The company promotes herbal products which helps in preventing
diabetes and hypertension.

TECHNOLOGY-The biggest victory for Patanjali has been signing the Transfer of Technology from
DRDO . Government is completely supporting the technological advancements in
medicine and ayurvedic field specifically. In May 2019, the company has launched a
technology start-up, Bharuwa Solutions, which boasts of five patented technologies in
supply chain management, distribution, soil testing, fertiliser calculation and
backward linkage.

LEGAL FACTORS- Patanjali as an alternative medicine falls under the Ministry of Ayush. Various
complaints have been filed against the company including Madras High court. The
Medicine Central Control Act 1970, The Drug and Cosmetic Act 1940, The Drugs
and Magic Remedies Act 1954 etc are few laws that govern Patanjali and it’s
functioning.

ENVIRONMENT-The biggest advantage that Patanjali has is that it produces environment friendly
products. Their main aim is to provide the customers with natural form of products
without much artificial interference. They also have invested in bioresearch.

Porters five forces analysis- it is a tool that helps an industry or a firm to analyse the main sources of
competition in any particular industry segment .

The five forces are as follows:

INDUSTRY RIVALRY (high)- industry is highly competitive with organised players like Dabur,
Himalaya etc. They established market channels in both traditional and modern retail
buyers are looking for reliable Ayurvedic composition, price and quality of product
are major determinants

BARGAINING POWER OF BUYERS (moderate)-buyers are looking for reliable Ayurvedic

composition. price and quality of product are major determinants

BARGAINING POWER OF SUPPLIERS (moderate to high) business is highly dependent on

availability of right ingredient suppliers that have a good bargaining power. The
bargaining power of suppliers can be controlled by backward integration.

THREAT TO NEW ENTRANTS(moderate to high)-major threat to Patanjali dent Kanti is from

existing players like Colgate entering into natural and Ayurvedic segment through Colgate
active salt-neem

THREAT OF SUBSTITUTE TO PRODUCTS(Low to moderate)- the substitute product

depends on the respective product category.

CONSUMER BUYING DECISION BEHAVIOUR

A consumer's perception, awareness, and consciousness of a firm or its offerings is referred

to as customer perception. Consumers' and potential customers' perceptions of your company
are extremely important. It has a direct impact on the ability to acquire new consumers and
sustain solid customer relationships. As a result, it has a big impact on a company's capacity
to attract new consumers and keep old ones.

Any product that wants to flourish on the market has to put the customer first. Furthermore, a
product's success is determined by client happiness with the company's product. In order to
achieve this, every marketer must analyse the behaviour of a customer. A consumer's buying
behaviour is determined by their level of involvement in a purchase choice.

TYPES OF BUYING BEHAVIOUR

A consumer's purchasing behaviour varies based on the sort of product they are purchasing.
A consumer's behaviour when purchasing a cup of coffee differs significantly from that of a
consumer purchasing an automobile. How involved a client is in purchasing a product or
service, as well as how dangerous it is, will always impact their behaviour. The higher the
product's price, the greater the risk, and the greater the customer's involvement in the
decision-making process.

According to observations, more complex and expensive purchases require more thinking and
participation. Consumer purchase decisions are heavily influenced by consumer behaviour.
Purchasing a car is not the same as purchasing chips. When it comes to promoting products to
diverse types of customers, marketers must use caution. The extent of consumer involvement
in a purchase choice determines their purchasing behaviour. Aspects such as the degree of
risk associated in a transaction are also important.

Consumer buyer behavior can be classified into four types according to these determinants:

● Complex buying behavior : This is also known as extensive. It involves a very high
risk. The risk can be both psychological as well as economic. The consumer is
extensively involved in the purchasing and conducts thorough research prior to
making a decision. A person who engages in sophisticated purchase behaviour will go
through a process of learning. He begins by forming product beliefs, then attitudes,
 and finally a thoughtful buying decision. For customers with complex buying habits,
marketers should have a thorough understanding of the products. It is expected of
them to aid customers in comprehending the merchandise. These have include
examples like purchase of expensive product or service, for instance a house, a car, or
an education course, are examples of such activities.

● Dissonance-reducing buying behavior : As the name suggests it involves the purchase

of the high price and rare purchase, this behaviour is complex, similar to complex
buying behaviour. The term "dissonance" relates to the difficulty of deciding between
brands and the worry of later regretting one's decision. The usual items are acquired
based on budget availability rather than extensive study. Hence, consumers are
pushed to purchase items for which they do not have a large number of options. This
leaves them with limited decision-making options. Consumers make purchase without
doing much investigation. As a result, because the products are accessible, the time
constraint, or the money constraint. In this buyer does not give much thought to the
model to choose and opts for one of the few brands offered.

● Habitual buying behavior : Consumers who engage in this type of activity aren't as
invested in the purchasing process as others, and they buy the same things over and
over again. Consumers make purchases based on brand familiarity, in addition to the
influence of radio, television, and print media on habitual buying behaviour. As a
result, marketers must generate numerous advertising in order to establish brand
recognition. To attract customers, advertisers should use visual symbols and imagery.
Consumers are more likely to remember visual commercials, and they are more likely
to interact with businesses. Purchasing items on a regular basis is an example of
habitual purchasing behaviour.

● Variety seeking behavior :In this scenario, the client switches brands out of curiosity
or variety rather than discontent, demonstrating a low level of involvement. Marketers
minimise situations, and offer lower prices, discounts, offers, coupons, and free
samples to entice customers and gain market share. Involvement of consumers is
minimal. There are notable distinctions between brands. Consumers routinely switch
brands. Because switching items is inexpensive, consumers may wish to try out new
products simply to satisfy their curiosity or boredom. Consumers in this country
typically purchase new things not because they are unsatisfied, but rather because
they want variety. For instance, they may buy soap without giving it much thought,
then choose a different fragrance next time.
CONSUMER BUYING DECISION PROCESS
Marketing Strategy of Patanjali

Patanjali, a relatively newer brand is now a household name. It proved to be a top disruptor in
the FMCG sector, age-old well renowned brands such as HUL, P&G, Dabur and Godrej had
their market share adversely affected due to Patanjali’s entry in this space. Patanjali
Ayurveda was benefited by the newly cultivated perspective towards health and well-being
inspired by the stellar rise of Patanjali Yogpeeth and its endorser; Yoga guru Baba Ramdev.
Indian households became cautious of the products they were consuming routinely and there
was an increased predilection towards Ayurvedic products.

Moreover, the recent trend, promoting Indians to use “Swadeshi” products, by supporting the
local brands and communities rather than buying products of overseas brands. Both these
trends steered the entire FMCG space to a different direction and Patanjali Ayurveda Ltd
which was just gaining momentum as a brand, embraced this trend and launched its products
in various categories; ranging from oral care, nutrition, food and cosmetics.

The Oral care segment which was dominated by CP and HUL was disrupted by Patanjali’s
Dant Kanti, a medicated and herbal toothpaste for the Indian demographic.

Segmentation

Dant kanti junior; introduced for the indispensable oral health needs of the children. It
focused on providing a multi-purpose solution to the. Regarding the geography, it aimed at
the semi-urban and urban households.

Dant Kanti regular, Red, active gel; were aimed at teenagers and young adults for their oral
care needs. People facing gum problems, bad odor and pain in gums were the potential
consumers. Again, targeting the urban and semi-urban households.
Dant Kanti Medicated and advanced; provided superior oral hygiene to adults and older
people who usually face issues of tooth sensitivity and loosening of gums. The targeted
demographics belonged to urban and semi-urban areas.

Targeting

Patanjali Ayurved Ltd uses a common targeting strategy for its toothpaste, where it aims at
improving the oral hygiene of its consumers at large. To all the segments that it serves,
providing a healthy set of teeth has been paramount for Patanjali’s oral care lineup. It’s
targeting thus remains undifferentiated.

With the penetration of Patanjali retail stores all across the sub-continent it’s not far-fetched
that Patanjali will soon be increasing its rural market share by multifold.

Positioning
● The Indian FMCG market is predominantly consumer driven, with cut throat-
competition across all segments consisting of only a few players who have been in the
industry for decades.
● Amongst all these brands, Patanjali positioned itself as a “home grown” brand which
boasts of using natural ingredients in all its products. The brand maker and endorser
Baba Ramdev sensed the consumer's sentiment shifting towards organic and healthier
products.
● It sources natural herbs directly from farmers, thus upscaling their life. It sells its
product at cheaper rates about 15-30% less than its competitors, providing value for
money to their customers.