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Sri Sri Ayurveda: Art of Living to Art of Doing Business, the FMCG Way

CASE STUDY, STRATEGIC MANAGEMENT
ET Cases, 20 Pages

Case Preview

Sri Sri Ayurveda: Art of Living to Art of Doing Business, the FMCG Way

 

An estimated 3.5 million people from 155 countries attended the World Culture Festival (WCF) held by Art of Living Foundation (AoLF) from March 11th–13th 2016, on the flood plains of river Yamuna in Delhi. Though controversial for its environmental impact, it was an event where 37,000 artists from around the world performed for over three days. Political and spiritual leaders from across the world including Prime Minister of India, Narendra Modi and Delhi Chief Minister, Arvind Kejriwal attended the event. The scale of the event displayed AoLF’s popularity and financial strength, which spent 25.63 crore to organize the festival, without any sponsors and free entry for all.

AoLF started as a humanitarian organization that offered self-development courses/programmes for a stress-free living. Nevertheless, that was not all. It also offered a wide range of FMCG products through its production arm Sri Sri Ayurveda (SSA), which was started in 2003. SSA, which never took up mass marketing before the rise of Patanjali Ayurved Limited1 (PAL), seemed to be following PAL’s strategy with similar product range, marketing blitzkrieg and positioning, however, with a premium pricing. While few analysts considered SSA as the new disruptor in the FMCG space after PAL, few expressed doubts whether it would also be able to follow PAL in terms of market share and profitability?.........................

 


 

1 Patanjali Ayurved Limited is an Indian FMCG company. Manufacturing units and headquarters are located in the industrial area of Haridwar and its registered office is located in Delhi. The company manufactures mineral and herbal products.

Teaching Note Preview

Sri Sri Ayurveda: Art of Living to Art of Doing Business, the FMCG Way

 

Synopsis

After Patanjali Ayurved Limited (PAL) re-established the image of Ayurveda in the minds of Indian consumers with its range of products and hard-hitting marketing campaigns, Sri Sri Ayurveda (SSA), which started in 2003, too revved up its marketing and expansion activities to promote its range of ayurvedic products. SSA is a part of Art of Living Foundation (AoLF) – a humanitarian organization that offered self-development courses/programmes for a stress-free living – that manufactures, and sells ayurvedic/herbal/nature-based FMCG products like food and nutritious products, personal care products like candy, ghee, toothpaste, spices, beverages, tea, hair oil, shampoos, gels, creams, soaps, etc. However, they were offered at a premium to PAL’s products and at par with products of other FMCG companies. While it was considered as the new disruptor and a challenger brand in the FMCG space after PAL, few expressed doubt whether it would be able achieve PAL’s success.

Prerequisite Conceptual Understanding (PCU)/Before the Classroom Discussion

The students/participants should be asked to read the following article:

• Michael E. Porter, “What is Strategy?”, http://cfe.unc.edu/pdfs/what_is_strategy.pdf, November–December 1996 – To understand that a company needs to have a differentiating strategy to outperform its rivals

 

Case Positioning and Setting

This case study can be used in the MBA Program for either of the following courses/modules:

• Corporate Strategy/Competitive Strategy – How a disruptive/challenger FMCG player’s competitive strategy can be designed and executed
• Brand Management – How a personal brand equity can be reshaped into a challenger brand

 

Assignment Questions

I. In the light of the business dynamics of the Indian FMCG market, discuss the reasons for the growth of Sri Sri Ayurveda.
II. Discuss the factors that make Sri Sri Ayurveda a challenger brand and analyze its affect on the Indian FMCG market.
III. ................

 

Preamble to the Case Study Analysis and Suggested Orchestration

This case study helps understand the reasons behind SSA’s emergence as a new disruptor in the FMCG space. It helps to analyze the factors contributing to its growth and how Sri Sri Ravi Shankar’s (Ravi Shankar) personal brand equity became an influencing factor for SSA’s success. Further, it allows the participants to debate about the possible ways in which SSA could become more profitable in future and continue to be successful. The case study analysis was carried out as presented in Exhibit (TN)-I.............

$4.22
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Product code: STG-1-0037, STG-1-0037A

Abstract

This case study is meant to understand how a challenger brand in an entrenched category (FMCG) can be built. Consumer trust precedes the launch of products, at the heart of such a concentric market penetration. The Art of Living foundation (AoLF) too build trust preceding the launch of its products. The AoLF, started in 1981, began offering the Art of Living (AoL) courses both to individuals and corporates (Living Well and Apex courses) and in 2003, Sri Sri Ayurveda (SSA) was started that sold a wide range of FMCG products – candy, ghee, toothpaste, beverages, tea, hair oil, shampoo, etc. With Baba Ramdev’s Patanjali products, ‘Ayurveda’ seems to have become a category that Indian consumers had been waiting for with sufficient mindshare and palpable market shares. Though Patanjali’s strategy seems similar to that of SSA (with similar product range, marketing blitzkrieg and positioning), SSA’s pricing is premium. SSA plans to quadruple it offline stores – called the divine stores – from 600 to 2,500 by 2017. Would this set SSA for a sustainable competitive advantage with sizeable market share and competitive profitability? How would Indian FMCG industry’s competitive scenario be rewritten with two big Ayurveda-based players charting their courses?




Pedagogical Objectives


  • To analyze the factors that have contributed to unique market standing of Sri Sri Ayurveda’s portfolio of product and consumer services

  • To understand the gamut of business ventures started, riding on the brand popularity of Sri Sri Ravishankar’s Art of Living

  • To discuss and debate on the increasing trend and possible impact of spiritualism-led initiatives getting morphed into active business pursuits (for instance, Baba Ramdev’s Patanjali products, Sadhguru Jaggi Vasudev’s Isha Foundation, Yogi Ashwini’s Dhyan Foundation, etc.)



Case Positioning and Setting

This case study can be used for either of the following courses/modules:


  • Corporate Strategy/Competitive Strategy – How a disruptive/challenger FMCG player’s competitive strategy can be designed and executed

  • Brand Management – How a personal brand equity can be reshaped into a challenger brand





This Case Pack Includes:
- Abstract
- Case Study
- Teaching Note (**ONLY for Academicians)

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