As Sri Sri Ravi Shankar’s FMCG brand Sri Sri Tattva has earmared about Rs 200 crore for advertising and promotion as it plans to ramp up its marketing spend, said media buyers.
The firm tries has entered into the FMCG firm at a time when Baba Ramdev’s Patanjali already dominates the Ayurveda and herbal products sphere. The new entrant in the field will spend this amount on mass media advertising, outdoor campaigns and below-the-line marketing across the country to support its expansion plan of opening 1,000 stores in the country.
The Bengaluru-based firm was among the largest advertisers in the FMCG category during the recently concluded India Premier League (IPL), spending Rs 10 crore on television advertising.
“For us, this year is a time when our efforts of the past year and a half, in terms of expansion in retail, will be solidifying. Our advertising will be aggressive and healthy, definitely much different from what it was in the past years,” said Tej Katpitia, chief executive of Sri Sri Ayurveda (SSA) Trust, the FMCG establishment that will open ‘Sri Sri Tattva’ branded stores.
He also said that there will be 3-4 major campaigns during this fiscal not only on news channels but also on general entertainment channels and regional networks. This will be coupled with on-ground activation and outdoor advertising.
He, however, refused to comment on the advertising budget, even though media buyers said they are spending about Rs 200 crore on advertising and promotion.
“Our biggest focus is to increase our reach and awareness,” Katpitia explained. Sri Sri Tattva, like Patanjali, will focus on certain categories of products such as toothpaste, personal care items and food products. Out of its total TV advertising spend of Rs 10 crore during IPL, it spent Rs 4 crore on TV advertising for its personal care items, Rs 3 crore for toothpaste, and an equal amount for food products.
The natural segment of India’s personal care market is estimated to be worth Rs 18,500 crore, or almost 41% of the total personal care market, according consumer research firm Nielsen.
Baba Ramdev’s Patanjali Ayurved, that sells ayurvedic products worth more than Rs 10,000 crore annually, has prompted global and local rivals such as Hindustan Unilever, P&G, Colgate Palmolive, Future Group and Dabur, among others, to either introduce or boost their own ayurvedic products portfolio.
Kishore Biyani’s Future Group, for instance, is closing in on an ayurvedic company and is in advanced talks to acquire Iraya that sells a host of personal care products from Athena Life Sciences, while HUL has relaunched Ayush brand of ayurvedic personal care products, acquired Indulekha hair care brand and launched Citra skincare brand.
Within the personal care and food category, Sri Sri Tattva will focus on face wash, creams and lotions, shampoo, and ghee, range of rice, special products such as organic version of coconut oil and organic jaggery, respectively.
While the products are currently sold through online marketplace such as Amazon, Flipkart, BigBasket, it has tied up with Nykaa to sell personal care products. It has also teamed up with 1mg and MedLife for the ayurvedic and other healthcare products.