Saturday, September 22, 2018

Economics concepts behind patanjali growth

1-Law of demand

Patanjali objective is to make products available to consumer at most reasonable price and therefore most of it's products come at a substantial discounts than it's competitors products so there is a huge demand demand for patanjali products.
2-Economics of scale

Patanjali is producing it's products in a large quantities their by attaining economics of scale. Economics of scale means for every percentage increase in output there is a decrease in average cost.
3-price discrimination

Targeting middle class and Lower middle class with low price products
4-Economics of scope

patanjali is entering in new segment like dairy products, chocolates, fruit juice, Health drink etc it is also investing in TV channels magazines by this patanjali is using economics concept called economics of scope which leads to cost savings.
5-people responds to incentives

Patanjali provide more quantity at less price so it works like a incentive to customers.
6-Taste and preference

In today's time time tastes and preference of consumer has been shifted to natural and organic products which patanjali identified understanding consumer taste and preference

No comments:

Post a Comment