Market Analysis of Patanjali in Indian Market

This report analyzes the market position and performance of Patanjali in the Indian market, including the company's strengths, weaknesses, and challenges. It also provides recommendations for improving the quality and image of the brand.

Marketing Management
5/31/2019
Patanjali

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Executive Summary
The intent of this report is to highlight the market position and performance of Patanjali in the
Indian market. The analysis has discussed the company's performance in the entire industry
and the factors that are raising threat in the success direction of the company. From the
analysis, it has been identified that Patanjali is receiving different complaints regarding the
quality of its products. The issue has been raised due to the incapability of the management to
manage the wide business scope. In order to overcome these issues, the report has suggested
the company to implement different quality management techniques such that it can work on
improving the quality and improving the image of the company among customers.
Furthermore, the report has also provided reviews of the customers regarding the Patanjali
Brand.

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Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Overview of Patanjali.............................................................................................................3
Situation Analysis of Patanjali...............................................................................................4
5 C’s...................................................................................................................................4
Porter Five Force Analysis.................................................................................................8
Issues and Challenges for Patanjali......................................................................................10
Data Analysis.......................................................................................................................10
Q1.....................................................................................................................................10
Q2.....................................................................................................................................10
Q3.....................................................................................................................................11
Q4.....................................................................................................................................11
Q.5....................................................................................................................................11
Q.6....................................................................................................................................11
Q.7....................................................................................................................................12
Q.8....................................................................................................................................12
Q.9....................................................................................................................................12
Recommendations................................................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14
Appendix..................................................................................................................................17

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Introduction
The intent of this paper is to present the discussion regarding the situation analysis of
Patanjali brand and the consumer insights regarding the brand. The assignment is divided into
two parts. The first part of the report will present the situation analysis of Patanjali brand
from which the role of marketing management will be analyzed into the success of the
business. Marketing is encompassing the trend in the competitive world because it highly
contributes to the firm's productivity. The term that is marketing management is comprised of
two diverse words marketing and management (Quinton, 2013). Marketing is said to be the
economic procedure through which the services and products are acquired in the exchange of
money. In the context of management, the marketing word is considered as the process of
distributing products and services from the manufacturers to the end users. Marketing is
comprised of promotions, sales, advertisement, and public relations. Management is the
efforts make for developing coordination among employees and people for attaining the
predetermined goals of the organization. Stanley Vance has uttered that management is the
method of control and decision making concerned with human activities through which key
objectives can be attained (Roy and Messina, 2012).
Overview of Patanjali
Patanjali Ayurved Limited is presently the fastest development company in the fast moving
consumer goods sector (FMCG) of India. Patanjali established in the year 2006 in the herbal
and mineral sector. Headquarter of the company is established in the industrial area of
Haridwar. The products provided by the business are majorly categorized in the segment of
food, personal care, beauty, and baby care products. Presently, the company offers over 450
diverse products and it is also involved in the production of around 300 medicines for the
different body ailment treatment. According to the claim made by the company, all the

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products are manufactured by natural components and Ayurveda. Some of the best sellers are
comprised of Kesh Kanti, Honey, Dant Kanti, herbal bath soap, and ghee (McCall, 2013).
Situation Analysis of Patanjali
Situation analysis is said to be the collection of methods that are used by the executives to
evaluate the external and internal environment of the organization and understand the
capabilities, business environment, and customers of the organization. The situation analysis
is comprised of a number of analysis methods that are 5C’S Analysis, Porter Five Force
analysis, and SWOT Analysis. A marketing plan is prepared by the business in order to gain
guidance for communicating the benefits of the services and products to the target market.
The situation analysis is considered as the second phase of the marketing plan and is also one
of the critical steps in creating a lasting relationship with the consumers.
5 C’s
Company
Patanjali Ayurved Limited is known for producing products of herbomineral heal care,
cosmetics, hair care, dental care, toiletries, food products, etc. It is also involved in providing
beverages and food products like oil, sharbats, flour, juices, sharbats, ghee, honey,
confectionary, spices, oil; products for personal care like Mehandi, rose water, body creams,
ayurvedic products, hand washes, body oils, etc.; ayurvedic products such as chyawanprash,
general digestives, and other products. The company is known for offering ayurvedic
products for the treatment of AIDS, thyroid, cancer, and more. Patanjali supplies its products
to the end users through chikitsalaya, mega-stores, and distributors (Butola and Vashistha,
2013).

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Collaborators
Patanjali has been in news for getting involved in different collaborations in order to have a
strong existence in the market and give competition to the international firms operating in the
Indian market.
Patanjali has collaborated with BSNL that has resulted in creating a number of synergies.
This kind of step was expected from the huge brands like P&G or Unilever and Airtel or Jio.
However, this trend of collaboration by Patanjali has provided the entire industry with the
reasons for future collaboration. This collaboration has provided Patanjali the broad access to
the customer interfaces across the nation, in turn, BSNL leverages from the strong business
run rate and financials Patanjali is riding (Kawoosa, 2018).
Furthermore, Patanjali brand has also involved in the exclusive partnership with the Future
Group in order to make its complete product range accessible in the retail outlets of Big
Bazaar all over India. Other retail chains in the nation like Easyday, Nilgiris, Aadhaar, and
KB’s will consequently vend the products of Patanjali, which will result in availability of the
company’s products in around 240 cities and towns in the nation (Jain, 2015).
Competitors
Patanjali is presently the leading organization among its competitors due to the following
aspects:
Pricing – Patanjali vends its products at very low prices in order to fulfill the demands of the
customer. Patanjali is capable enough to sell the high-quality products at the reasonable
prices which are around 10% to 30% less in comparison to the rivals who invest around 12%
to 18% on the promotion of the services (IBEF, 2019).
Revenue – According to the reports of IIFL, Patanjali can reach to around Rs 20,000 Crore as
the net turnover by 2020 (Pani, 2018).

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Brand marketing – Patanjali has been emerged as the tougher rival for few of the fast
moving consumable goods in the sector of oral care, OTC products, and hair care by
imposing marketing of the brand by Baba Ramdev.
Innovation – As Patanjali being the key rival in the industry, other companies in the same
industry are anticipated to introduce innovative products in the category of Ayurvedic and
Herbal products in the forecasted time duration.
Source [(Pandey and Sah, 2016)]
Innovative products introduced by Rivals in order to survive in the market are:
 Vedshakti Toothpaste was introduced by Colgate in order to beat the toothpaste range
of Patanjali
 L’Oreal introduced hair care products with natural ingredients
 Godrej Company introduced neem mosquito oil
Context
PEST Analysis
Political Factors

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India is included in the list of most powerful nations across the world. It is comprised of the
largest world's democratic nation and enjoys a comparatively steady political environment.
The political environment of the country is majorly affected by the factors like the interest of
politicians, policies of the government, and ideologies of different political parties (Singh,
2015). The government of the country presently focusing and inspiring domestic businesses
to get involved in the "Make in India" campaign in order to reduce the level of imports and
increase exports. This has been effectively understood by the Patanjali Brand and is
continuously supporting the government in this campaign of the government which results in
establishing strong relationships between business and government. In addition to this, the
company is involved in promoting the use of natural resources and herbs available in India
among people, which gives a positive impact on the government.
Economic Factors
The economic position of India is presently stable due to the introduction of different
industrial reforms and policies of the government. In addition to this, the government is
majorly involved in making strong contacts with the foreign countries such that international
firms establish their operations in the country which will result in increasing the job
opportunities for the residents and eventually enhance the financial position of the country in
comparison to other nations (Asher and Novosad, 2017). The domestic organizations like
Patanjali are supporting the nation in increasing GDP and resulting in the overall
development of the country.
Social Factors
The social factors signify the changes in the trends which can influence the environment of
the business. Today, in India people are getting health conscious and are being attracted to
herbal and ayurvedic products for different purposes such as health, skin care, etc. (Sharma

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and Bothra, 2017). Patanjali has been highly motivated through this trend in the market and
hence it is offering different herbal and ayurvedic products that are being manufactured by
using natural resources. The concern related to health is provoking people to use Patanjali
products. In addition to this, people in India are more price-sensitive due to which they
purchase Patanjali products in comparison to other herbal products.
Technological Factors
Technology majorly results in product development and also introduces procedures of cost-
cutting. India is presently being served with 3G and 4G network which has resulted in the
success of technological projects (Bhalla and Bhalla, 2010). Patanjali is making use of
advanced technology for the processing of different herbs and natural resources for the
manufacturing of products. Some of the technologies used by Patanjali are Auto coater for
the tablet coating, frequency drier for the fast liquefaction, generators, compressors, and
boilers.
Customers
Patanjali majorly targets those customers who are health conscious and prefer herbal products
for their skincare, health, etc. These are the customers who mostly use these products for
maintaining their health and a balanced diet. It has been analyzed that people in India are
price-sensitive due to which they search for different options and purchase the product which
offers high quality at low prices. This segment is targeted by Patanjali and according to that
company charges around 10% to 30% less in comparison to the rivals.
Porter Five Force Analysis
The threat of new entrant
The threat of international or foreign businesses in the Indian market is very high for the
existing players who operate in the industry because the new players carry innovative ideas

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and technologies for the production of similar products, which eventually impacts the sales of
the existing companies. The threat of new entrant for Patanjali brand in the Indian market is
low because the company is presently focusing on and promoting the ‘Make in India'
campaign which motivates citizens to purchase homemade products.
Competition among existing players
The Indian consumer products industry is very competitive due to the presence of a number
of players in the market which is known for offering a similar type of products to the
customers (Shende, 2014). Patanjali deals with high competition in the consumer product
industry from different international companies offering a similar type of products with
aggressive promotions.
The threat of Substitute products
The threat of substitute products in the Indian market is low because there are limited
numbers of players who offer herbal and ayurvedic products to the customers in the market.
Power of supplier
The power of supplier is high in the Indian industry because the market is comprised of a
very limited number of business which offer herbal and ayurvedic raw material, due to which
Patanjali is enforced to maintain good relations with suppliers in order to avail raw material
at low prices.
Power of Buyers
The bargaining power of customers in the Indian market for Patanjali product is very high
because there is a number of players which offer a similar type of products to them. Besides
this, in order to attract a maximum number of customers and give strong competition to the
rivals company charges low prices (Godey, Manthiou and Singh, 2016).

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Issues and Challenges for Patanjali
Patanjali Brand has gained increased popularity in the Indian market in very less time period
due to its strong promotion and quality of the products. In addition to this, the company is
known for offering natural and herbal products which attract a maximum number of people in
the market to purchase the product. The successful strategy of Patanjali to use Baba Ramdev
as the face of the brand is the main reason for the increasing popularity. However, with the
increasing popularity among customers, Patanjali entered into a number of sectors other than
FMCG. With the huge expansion, the management of the company became incapable of
managing the entire business and ensuring product quality. This resulted in a rising number
of issues in the products of the company related to quality and led to decreasing sales. The
failure of Patanjali to meet the expectations of the customers resulted in weakening brand
position among the customers (Santra, 2018).
Data Analysis
The survey has been conducted in order to analyze the reviews of customers about Patanjali
brand and its products. The survey is comprised of a total of 21 participants, who have
provided unbiased reviews which have supported in analyzing the data properly
Q1.
The first question was asked in order to know how many people make use of herbal and
ayurvedic products. From the analysis, it has been identified that all the total number of
participants that is 20 make use of herbal and ayurvedic products due to increasing health
concern in the environment.
Q2.
The second question is about how many of them make use of Patanjali products. The analysis
highlights that almost 95% of the participants have used Patanjali product whereas there were

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only 5% of the participants who replied that they do not use it. The increasing use of Patanjali
is because of the strong promotions and herbal nature of the products.
Q3.
The third question was asked to know how frequently people use Patanjali and from the
analysis, it has been identified that 55% of the participants often make use of Patanjali
products.
Q4.
The fourth question is about the quality that is more provoking for the participants to
purchase Patanjali products. The analysis highlights that most of the participants that are 47%
say that the herbal and ayurvedic nature of the Patanjali products provokes them to purchase
the products. Besides this, 28.57% of the participants say they purchase Patanjali products
due to its high quality.
Q.5
The question was asked regarding the other brands available in the market that are used by
the participants. From the results of the survey, it has been found that 60% of the people
prefer the Himalayas as the second choice in the herbal and ayurvedic product category.
Whereas, the products of Dabur and Lotus brand are only used by 10% of the participants
each.
Q.6
The question was also asked about the accessibility of the Patanjali products and the analyses
represented that 47.62% of the participants say that products of the company are assessable.
Whereas, 8 of the participants feel that the products of the company are easily accessible.

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Q.7
This question was about whom in the participant’s family majorly make use of Patanjali
products. 9 out of 21 participants say that their parents make use of Patanjali products to
maintain their health.
Q.8
Which category of Patanjali products is frequently used?
The analysis of the survey highlights that 11 out of 21 participants make use of skin care and
beauty products of Patanjali Brand, considering its quality and natural benefits. On the other
side, 7 participants purchase medical products of the brand.
Q.9
The question was also asked regarding the satisfaction level of the customers about Patanjali.
The analysis highlights that people are satisfied with the products of the company.
Recommendations
The above analysis signifies that being such a huge brand of the Indian market, Patanjali is
losing the trust and its leading position in the market due to increasing issues in the quality of
the products. Company is regularly involved in increasing the business of the company,
however, failed in upgrading the capabilities, and skills of the management, which is
resulting in the failure. Hence, in order to maintain the position, the company must get
involved in hiring the skilled and competent staff that can manage the increasing scope and
ensure the quality of the products. In addition to this, the company must work on
implementing quality management techniques into the business to avoid the issues.
Furthermore, the company needs to have a separate distribution channel for different segment
such as FMCG, medical, biscuits, etc., in order to avoid issues in the quality of the products.

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Conclusion
The above report is discussing the situation and position of Patanjali brand in the Indian
market. The analysis is comprised of a detail evaluation of the company's competitors,
customers, business environment, and industry environment. From the analysis, it could be
concluded that Patanjali has successfully gained the Indian market through its herbal and
ayurvedic products along with aggressive promotional strategies in the very limited time
period in comparison to other huge international brands. However, due to the increasing
scope of the business, the management of the company is unable to manage the quality of the
products which is resulting in the negative image of the company among customers. In order
to overcome this, the report has suggested that Patanjali must hire experts for the
management and different quality management techniques into the operations. Besides this,
the company can also separate its distribution channel for a different segment.

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References
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India. American Economic Journal: Applied Economics, 9(1), 229-273.
Bhalla, M.R. and Bhalla, A.V. (2010) Generations of mobile wireless technology: A survey.
International Journal of Computer Applications, 5(4), pp.26-32.
Butola, J.S. and Vashistha, R.K. (2013) An overview on conservation and utilization of
Angelica glauca Edgew. in three Himalayan states of India. Emerging Medicinal Plant, 5(3),
pp.171-178.
Godey, B., Manthiou, A., and Singh, R. (2016) Social media marketing efforts of luxury
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2019]
Jain, V. (2015) Patanjali enters big retail with Future Group tie-up [online]. Available from
https://economictimes.indiatimes.com/industry/cons-products/fmcg/patanjali-enters-big-
retail-with-future-group-tie-up/articleshow/49285002.cms [accessed 1 June 2019]
Kawoosa, F. (2018) BSNL Patanjali collaboration opens up the Telecom Plus era! [online].
Available from http://cmrindia.com/bsnl-patanjali-collaboration-opens-up-the-telecom-plus-
era/ [accessed 1 June 2019]

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McCall, M.C. (2013) How might yoga work? An overview of potential underlying
mechanisms. Journal of Yoga & Physical Therapy, 3(1), p.1.
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Limited. International Journal of Engineering Technology, Management and Applied
Sciences, 4(7), pp.7-14.
Pani, P. (2018) Patanjali revenues fall 10% to 8,135 crore in FY18₹ [online]. Available from
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Sharma, S. and Bothra, M. (2017) Changing Demographics & Dementia: A Reflection on the
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Appendix
Q1.
Q2.

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Q3.

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Q4.

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Q5.

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Q6.

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Q7.

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Q8.

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Q9.