How to Sell Anything in India? Cycle Pure Agarbatti Detailed Business Case Study

Summary

The video recounts the inspiring journey of Narayan Ranga Rao, the founder of Cycle Pure Agarbatti. It delves into how he built a 1,500 crore business empire by selling incense sticks globally, starting in post-independence India. Despite adverse market conditions, Ranga Rao innovated by improving product quality and using unique marketing strategies. His dedication, empathy, and persistence were key factors behind his success. The video highlights important business lessons, emphasizing cultural sentiment, product excellence, and the power of empathy in creating a lasting brand.

Takeaways

• 🌍 India's independence brought tragedy with 17 million people displaced, creating tough conditions for business.
• 👨‍💼 Narayan Ranga Rao, despite humble beginnings, founded Cycle Pure Agarbatti, a brand that now sells incense sticks in 75 countries.
• 💡 Ranga Rao identified a market gap: poor quality incense sticks that didn't burn properly and lacked strong fragrance, leading him to innovate with better products.
• 🔬 Rao invested in books on perfumery from Germany, mastering the art of creating high-quality fragrances using synthetic substitutes.
• 🧠 His unique marketing strategy involved lighting incense outside stores, creating demand among customers who in turn pressured shopkeepers to stock Cycle products.
• 💼 Rao’s son, Murthy, improved product variety by introducing '3-in-1' incense packs, addressing customer preferences and boosting sales.
• 🚀 Cycle Pure grew into a 1,500 crore business by mastering the art of fragrances, building customer trust, and consistently innovating its product line.
• 🛡 The brand's success came from understanding customer sentiment, especially the cultural importance of agarbatti in Indian households.
• 🏆 Cycle has expanded into global markets, benefiting from its unique fragrances and brand heritage, while building barriers to entry for competitors.
• 💖 The company prides itself on social responsibility, including empowering women, offering parental leave, and maintaining carbon neutrality.

Q & A

What was the significant event that occurred in India at the stroke of the midnight hour?

India gained its independence.

What challenges did India face immediately after gaining independence?

India faced the aftermath of partition and the India-Pakistan war, with around 17 million people displaced.

Who is the central figure in the story of the business empire discussed in the script?

The central figure is the late Mr. Narayan Ranga Rao.

What was the humble beginning of Mr. Narayan Ranga Rao's business?

Mr. Ranga Rao started his business by selling sweets and trying multiple jobs and businesses before finding his calling with agarbati.

What was the unique selling proposition of Cycle Pure Agarbati that set it apart from the competition?

Cycle Pure Agarbati focused on superior fragrance quality rather than just the quantity of incense sticks, offering a better burning experience and a variety of unique fragrances.

How did Mr. Ranga Rao overcome the lack of information on perfumery during the early days of his business?

Mr. Ranga Rao spent 600 rupees to import three volumes of perfumery books from Germany, which helped him understand and create superior fragrances.

What was the innovative marketing strategy used by Mr. Ranga Rao to introduce Cycle Pure Agarbati to the market?

He lit his incense sticks outside stores during peak hours, creating interest and demand among customers, which then pressured store owners to stock his product.

How did the second generation of the Ranga Rao family contribute to the growth of the business?

Murthy, the son of Ranga Rao, went to France to study the art of perfumery and introduced new products like the 'three-in-one' Cycle Pure Agarbati to cater to changing customer preferences.

What is the 'three-in-one' Cycle Pure Agarbati and why was it successful?

The 'three-in-one' Cycle Pure Agarbati contains three different fragrances in a single pack, offering variety and convenience to customers, which increased sales and customer loyalty.

How has the Cycle brand maintained its competitive edge over the years?

The brand has maintained its competitive edge by continuously innovating with new fragrances, having a vast catalog of ingredients, and focusing on customer empathy and market understanding.

What are some of the social initiatives taken by the Cycle brand?

The Cycle brand has supported women empowerment, provided paternity leaves, covered employees under insurance, and became the first carbon-neutral company in their industry.