Reaching Untapped Markets
Case Study

Reaching Untapped Markets

Patanjali

Industries
  • Apparel & Lifestyle
Overview
Breaking Traditional Barriers
The company tried to escape conventional ways of retail through a novel approach of the ‘store on wheels’ wherein the loyal consumers of Patanjali could easily shop from the brand.
Instant Market Entry
Provided easier access to disparate customers, the mobile store trend provided the quickest path for product or brand launch into secluded corners of the market.
Creating a Mobile Retail Hub
A moving infrastructure of light commercial vehicles was envisioned as a highly visible display that was both completely capacity efficient and functional but minimally so.
Driving Brand Awareness
Penetrating rural and sub-urban areas by giving the customers a seamless and an assured purchase experience while building brand association through its vehicle branding.

One of the leading FMCG (Fast-moving consumer goods) and Wellness brands in India is Patanjali. This customer, having achieved success in the real estate space, focused on scaling its retail penetration. The apparent reason to do this was that its regular brick and mortar stores could not penetrate the wide and largely untapped rural and semi-urban regions.

Beating the Limits Of Tradition Retail 

Penetration into the remotest and rural areas presents many difficulties for retailers. Patanjali had a problem that there was no element of the last mile delivery available into the existing, traditional networks making it harder for several of their remote customers to access. After actual, physical shops were installed, a range of additional issues sprang up. 

Setting up stores cost money and took time. That meant broad coverage across a large geography could not be attained quickly. Visibility of merchandise also happened to be less than ideal, and the immutability of the existing programs make it complicated to debut and promote a new and fresh or periodically changing SKU of products in those rural and underdeveloped areas.

This necessitated that Patanjali should seek another method of retail that overcame those limitations; one that may readily be instituted, is portable, affordable, and readily adjustable and expanded.

Patanjali
The Mission
Challenge
Patanjali could tap a small section of semi-urban and rural population, only through their traditional retail outlets. Opening an outlet at even one village would take considerable investment, time, and efforts for them and large portions still remained underserved.
Solution
“Store on wheels”, the mobile retail outlet that would bring the store to your doorstep and solve all our retail woes. LCV’s were converted to fully equipped outlets with perfect store interiors & strong brand presence, thus allowing access of products and an ease to customers in their village.
Outcome
The business model is scalable, providing for increased returns on investment and customer retention, while simultaneously increasing brand equity & customer recall. Patanjali has managed to penetrate into these areas of need, not with considerable efforts, with increased visibility, trial, and purchases in these faraway areas at the bare minimum costs.
Highly Effective Retail Solution
Highly Effective Retail Solution
Cheaper and more efficient expansion; speedier product adoption and market penetration for rural markets as opposed to brick and mortar shopfronts.
Enhanced Product Trials, Rural Outreach
Enhanced Product Trials, Rural Outreach
Numerous mobile stores were introduced, increasing the rate of sampling and repurchase in areas previously untapped.
Brand Recall and Trust Increased
Brand Recall and Trust Increased
Patanjali was able to establish increased touch and recall along with visibility and credibility as a trustworthy, rural-focused, digitally-enabled brand.

The Strategic Concept 

In the “Store on Wheels”, a game changing concept that has successfully managed to disrupt static store formats Stores were an innovative retailing experience turned into an automated, fully-functioning traveling vehicle that eliminated the concept of customer mobility for shopping; a unique idea that turned shopping into a one’s door step experience which was very pragmatic and effective to shop with.

Design and Execution Approach 

Transforming LCVs into efficient, branded Mobile Retail Units that could be deployed in high-traffic, dynamic areas to cater to their needs. 

1. Mobile Retail Architecture 

The solution involved conversion of LCVs into an equipped mobile retail vans with security, speed and visibility as major features. A specially-designed, flip open type of side panels allows a rapid set-up and packing-down of the van irrespective of the site conditions, and in moments it’s transformed into an operational walk-up store. This architecture is secure as all products and supplies are kept securely locked when the van is in motion. 

2. Functional Interior Design 

The interior space was meticulously designed with an emphasis on space utilization, operational efficiency and accessibility. 

  • Multi-SKU capable Metal Shelving. 
  • Metal mesh containers with airflow for product presentation. 
  • Anti-slip Flooring to ensure worker’s safety during operation. 
  • Thoughtful space planning to maximise product display and inventory. 

3. Maximising High Impact Brand Presence 

Both the sides of both the vans became their communication canvas, 

  • The full vehicle is covered with an unmistakable Patanjali green brand element. 
  • Graphical representation of our key product portfolio 
  • To enhance communication through Brand Story Panels 
  • Leveraging fonts and imagery for building credibility, especially for rural and new markets. 

4. User-Experience Focused for Rural Communities 

Given that the context is rural and semi-urban Indian populations, the user experience was tailored for speed, ease of navigation, quick product discovery, and seamless billing. Placement of product at a central location in the centre of villages, local bazaars, village fairs to maximise audience engagement, strategically placed near the most visited places within a village can also be used for daily business transactions and quick placement of faster moving products at an elevated place.

The mobile format increased brand testing, repeat purchase and enhanced Patanjali’s rural retail footprint with low infrastructure investment, thereby gaining access to virgin consumers at a faster pace. 

 

Patanjali

Rethinking Rural Retail

The "Store on Wheels” has been a disruptive factor in terms of establishing a format which is lucrative and most appropriate for a business of outreach operations. This innovative approach for outreach helped Patanjali circumnavigate existing constraints of physical stores like issues with penetration and set up costs. Additionally, the “Store on Wheels” turned a potent instrument for creating immense goodwill and in turn benefit the country's market: The existence of a massive mobile store network has helped them venture into hitherto remote regions of Rural India, thereby immensely improving product accessibility.

The model created a uncorrelated revenue stream which did not necessarily compete with their established fixed retail outlets.

Being in direct proximity with rural populations, in areas which would have perhaps remained inaccessible otherwise, the Mobile Store has built goodwill, trust in brands like never before. The "Store on Wheels” is also a versatile and effective mechanism that allows, the quick establishment of brand footprint among newer target demographics & segments of rural populations. The deployment of an economic strategy to display their vast range of product in contrast to physical locations, which reduces the time and resources needed for real-estate investments. Higher frequency of repeated trials and purchase, of their diverse portfolio of rural products, as it brings them in direct access.

The business could also extend the presence of brands in those locations, for whom only traditional channels are available. Far beyond being merely a mobile product carrying unit, the “Store on Wheels” was a highly adaptable, business-enabling model that reinforced, promoted, and redefined Patanjali's position in the rural economy as well as countrywide creating an unparalleled revolution in Indian retail.

 

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