Advertising Issues and Ethical Practices of Patanjali Ayurved

This report discusses the advertising issues and ethical practices of Patanjali Ayurved, a popular brand in the FMCG sector. It includes a customer and marketing research, data analysis, and recommendations to overcome the challenges faced by the company. The report highlights the ethical practices followed by the company and consumer opinions about its products. It also identifies the key advertising issues and problems faced by the company and provides data analysis to support the findings.

Running head: Marketing & Management
Marketing & Management
2018

Marketing & Management
Executive summary
The primary focus of this study is to highlight and discuss the advertisement issues and problems
that are being considered by Patanjali Ayurved Company which is one of the biggest and popular
brands in FMCG sector. The company is serving various Indian customers by offering innovative
products to the key target market in the international market. Along with this, here is the
discussion about ethical practices and CSR that are being followed and managed by PAL while
implementing the business activities globally. On the other hand, the paper also showcases that
how the company is fulfilling the desires, requirements and choices of the customers. For this
purpose, a customer and marketing research is done by the company in the report. Data analysis
is also outlined and used to identify and analyze the barriers and issues that are being faced by
organization. Innovative suggestions regarding the advertisement and promotion concerns also
have been placed in the task.
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Marketing & Management
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Critical analysis of ethical practice of Patanjali Ayurved brand..................................................................5
Consumer opinion about Patanjali Ayurved products..................................................................................7
Key advertising issue, problems and goals and data analysis......................................................................8
Critical analysis and recommendations.......................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
Appendices................................................................................................................................................13
Appendix 1.............................................................................................................................................13
Appendix 2.............................................................................................................................................13
Appendix 3.............................................................................................................................................14
Appendix 4.............................................................................................................................................14
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Marketing & Management
Introduction
The primary aim of this report is to highlight the ethical practices and consumer insights about
the Patanjali products in the global market. Patanjali Ayurved is a fast growing brand who is
producing natural health care, ayurvedic medicine, herbal home care, and natural food products
globally. The paper states that how PAL faces ample of challenges and risks while delivering and
advertising the products in the international market. Along with this, the report tries to analyze
and evaluate the factors that affect its brand image and reputation. Due to advertising issues, the
revenue and income of the company has cut down that put direct impact on the popularity of the
products and firm. A data analysis in regards to advertisement issues that are being handled by
the firm are presented in the task briefly. At the end, the report recommends that how the
company can overcome the advertising issues and how it can grow and boost its profitability by
2020. Without innovative and unique strategies, a company cannot achieve its desired objectives
and goals. Thus, innovative strategies that shall be kept in mind are discussed in the task. Further
detail of the task has been shown below.
Patanjaliayurved is a retail company that sells ayurved products for hair, skin and personal care.
The company’s headquarters is situated in Haridwar. It is stated that farmers are well known and
recognized assets for the company. They deliver organic ad herbal products to the customers in
all over the world. Patanjaliayurved takes several measures for famers to raise their income and
offer surety towards sale of their herbal and mineral products. Keeping Ayurved, Nationalism
and yog are significant and effective pillars of Patanjaliayurved Company; it is further
committed to generate a healthy and positive country and community as well. With astute
planning, pragmatism, absolute dedication and scientific approach, the organization is poised to
write a new and innovative progress and success for the world. The main aim of the firm is
create a best place for the innovation, growth and development of Ayurveda in India. Swami
Ramdev Ji and Acharya Balkrishna ji are main leaders in the firm who are performing roles and
responsibilities effectively. The firm is leading and growing marketer and manufacturer of herbal
based products and medicines (Chakraborty, 2016). In today’s era, the company is selling its
products in more than 10 countries around the globe through authorized channels.
Patanjaliayurved also helps the people move towards a healthy and effective lifestyle.
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Patanjaliayurved is registered with US FDA and it is an effective and active member of various
government and semi-government trade promotion organizations. It is noted that there are
various factors affect the growth and progress of the firm in today’s globalization world. Thus,
the company needs to focus on the various issues and challenges to overcome the competitors
(Mbaskool, 2018). For this purpose, situational analysis is done by the company that has been
discussed below.
Critical analysis of ethical practice of Patanjali Ayurved brand
The company is committed to adhere to the highest standards of moral, legal and ethical conduct
of business activities and operations by encouraging transparent, effective, fair and professional
and ethical work environment (Datta, 2017). Following are the ethical practices of Patanjali
ayurved limited.
 Be honest and loyal towards the customers.
 Exercise morality and virtue (Asteya) to run the business activities and operations
successfully.
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BrandAmbassadorSwadeshiBrandloyaltyHealthcentricProductmixPricingandpromiseofpurityRuralIndianStronganduniquecorporateretailWorldatglanceQuickrestaurantsStrengthsWeaknessesThreatsOpportunties

Marketing & Management
 Be wise and clever (Brahmacharya) while rendering products to the customers across the
world.
 Practice simplicity and effectiveness
 Worship a spiritual objective or goal
 Exercise self discipline and respect
 Sacrifice the self-esteem
 Read daily, that means mantra and mediation that are done by people on regular basis
 Be happy and content (Santosha). Santosha helps in providing happiness and joy to
people.
 Exercise non-violence (Ashima) which means do not hamper and kill other beings.
It has been studied by Khalikova (2017), the brand Patanjali is deeply entrusted by customers
across the nation. Baba Ramdev is a recognized Yoga Guru who attracts ample of people in a
short time. This was only possible because Baba Ramdev has lot of experience and knowledge.
For improving and developing a business, the company is recruiting people with high skills and
knowledge who are able to implement the plan. It has been portrayed by Jain (2016) that Baba
Ramdev develops and improves a successful and effective brand by appointing qualified and
educated people who are dedicated and passionate towards the work and production of the
product. The biggest and unique mantra to success and growth is excellent quality product with
reasonable prices. According to Jain (2016), all the products produced by Patanjali are made
from natural and ayurveda element which are cheaper and effective than other alternatives in the
international market due to lesser marketing and production costs. To stay ahead of the
competition, the company always keeps in mind the quality, price and quality that they are
producing. Patwardhan (2013) stated that Patanjali is working towards a better country, wealthier
farmers and healthier community. It personifies the essence of CSR because profits of the
company are not for any single person but are for the success and betterment of the community.
This theme is further affected in the every attribute of management and organization, the
company focuses on the healthcare and education to attain competitive benefits internationally
(Ramdev, 2018). Apart from this, effective and unique code of conducts is followed by the
company to run the business operations and functions successfully. Patanjali Ayurved Company
also focuses on the leadership to set a strong and effective brand image in the minds of the
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Marketing & Management
customers. It is studied by Corner (2009), Patanjali Ayurved focuses on the various areas such as
healthcare and modern education through Gurukal system for poor students and girl child.
Consumer opinion about Patanjali Ayurved products
It has been studied that Patanjali has created themselves as a herbal brand or company not in
Indian only but everywhere across the world. The consumers have started using the company’s
products because they believe that these herbal and mineral products are chemical free and made
with natural ingredients (Gupta, 2016). The company has promised to offer discounted patanjali
products in today’s modern world for all the registered customers in all over the world. In
today’s globalization world, where technology is slowly eating everything from science to food,
the customers as human still want natural and herbal products instead of chemically or
technology created food products. Patanjali is an Indian brand thus people like to use this brand
to take various benefits and to save time and money. The company has a majority of products for
health, beauty and other normal purposes. Apart from this, the organization maintains loyalty and
trust among the customers across the world. It is stated by Khanna (2015), the perceived and
excellent quality of products are being sold by the company in the international market. Thus, the
people like to buy these products at reasonable prices. Indian market is considered price sensitive
market hence, the organization uses low cost pricing strategy to attract and retain potential
customers in all over the world. It has been investigated by Jaggi and Ghosh (2017) Patanjali
products deliver the price leadership with an excellent and dynamic quality of products to the
consumers in the international market. Patanjali shampoo ingredient list 99% herbs including
popular Indian herbs such as shikakai and Reetha that are a part of the traditional wisdom for
hair care in India. This reveals the customers to consider Patanjali as more powerful and truthful
than others. The firm maintains strong and effective distribution network and channels to
distribute the herbal and natural products. This confidence has strongly and effectively
contributed to the consumer loyalty. The company’s products are available at an attractive and
unique discount as compared to their competition. Thus, the company is able to eliminate their
procurement cost, raw material and they are able to produce goods at reasonable prices. In this
way, the consumers prefer to buy Patanjali ayurved products (Jaggi and Ghosh, 2017).
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Key advertising issue, problems and goals and data analysis
An overwhelming study is conducted that unfair practices are carried by Patanjali Ayurved to
attract and retain maximum number of customers in the global market. The company is
promoting the herbal, beauty and natural products through poor ads and advertisement that are
hampering the financial position and brand image in the competitive market. It is studied that
Patanjali slapped with a fine of 11 lakh for misleading ads. The charge: ads say that company’s
products are produced at Patanjali production units, but in reality they are made elsewhere.
Advertising watchdog ASCI stated that Patanjali is accountable for misleading and ineffective
advertisements and ads. In august 2017, an ad for oil sparks controversy. Redditors tear it apart.
The company is asking key target audience to purchase their products because its their “patriotic
duties” and claiming that 100% profits go to charity. Furthermore, they point out that the
company cannot do maths. ASCI claimed that the company sold thousands of banned medicines
and products in the market that were very harmful for people and their health. Divya Swasari
pravahi advertisement claims that the company’s medicines has 0% side effects and 100%
effective and they have utilized this product for more than 20 years on LACS and crores of
people were not substantiated and they are misleading and misbehave by exaggeration. In this
way, various challenges are being encountered by the company in today’s era while selling the
products (Furtado, 2016).
Along with this, the company is handling various problems like low number of manufacturing
units that is hampering and influencing the progress and targets of Patanjali ayurved. Lack of
skilled and experienced management team is another problem in the company. As a result, the
company is unable to handle and resolve the queries and issues of the customers. Competition
further affects the long term profitability and outputs of Patanjali Ayurved in the international
market (Dutta, 2015). The primary goal of the firm is to make Indian an economic and effective
power by 2040 and to augment profitability in the international market. The organization is
expecting to clock rs. 50,000 crore in revenues by 2020 (Das, 2017).
Data collection is needed to identify and evaluate the exact fact and information related to the
products and services. There are various methods and tools to collect data like primary and
secondary method. Here in the report, secondary data collection method is used that helps to
collect appropriate and accurate data related to advertising issues in Patanjali Ayurved Company.
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Marketing & Management
A survey report is presented by ASCI where it is shown that 109 out of 155 complaints and
issues received against Patanjali brand. The 109 advertisement issues are related and
interconnected to e-commerce category, education category, consumer durables, health care,
personal care and food and beverage category. It is examined by Irani (2018), the company
introduces an ad about two sisters one a “traditional” girl who applies Patanjali beauty products
and the other a “bindass, wannabe-type” who naturally uses foreign chemical based creams. The
latter experience a bitter fate at the end, a consequence of her wrong and ineffective choice. If
the company was to explore and expand its brand in the international market then it needs to
focus on the wrong publicity and misleading. The other advertisement claims of alleviating “ hair
fall, hair breakage and dryness” was not effective and is deceptive. It is further noted that the
firm is rising from 2011-2012. It shall be noted that Patanjali ayurved has approx 10,000 stores,
100 mega marts and 4,000 distributors. Along with this, the organization has made agreement
and partnership with various retail chains or stores such as Reliance retail and Future Group to
overcome the rivals. It is examined that the company has earned approx 453 revenue and net
profit margin was 12.36% in 2011-2012. The revenue of the company is showing that Patanjali
brand is growing rapidly in today’s globalization world (Rakesh, 2012).
Critical analysis and recommendations
It is studied from the various research that Patanjali Ayurved is one of the leading and fast
growing brand that provides innovative herbal, beauty and natural products to the customers
around the globe. The organization manufactures or produces 444 products including 45 types of
cosmetics products and 30 types of FMCG products. It is elucidated that Patanjali ayurved is the
3rd biggest and unique FMCG Corporation in India. This fact renders the Kernel of the hard work
and efforts that the company has employed (Khalikova, 2017). In today’s era, the company is
attracting and retaining the talented people with good and dynamic skills to conduct business
activities in a hassle free manner. It is studied that a strong and dynamic component behind PAL
growth and progress is the effective and unique customer’s loyalty. This factor helps PAL to
augment its profitability and outputs in the international market. Most of the company’s products
are approx 15-20% cheaper as compared to other leading brands. The firm uses competitive
pricing and low cost leadership strategy to beat the competitors globally (Chattopadhyay, 2012).
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Marketing & Management
It is recommended that PAL must work towards the advertisement issues aiming to handle and
minimize various ads and advertisement issues. A marketing research and survey shall be done
to analyze and identify the choices, needs and demands of the key target audience. In this way,
the company can reduce and prevent misconduct and misbehavior in the organization. Dynamic
and talented staff shall be recruited by PAL to communicate and collaborate with customers
internationally. In this way, the company can reduce dissatisfaction and loyalty issues at the
workplace. The firm should add some new products in the category to attract wide range of new
customers internationally. In this way, it is noted that PAL must focus and identify the sub-brand
category to grow and survive the activities and operations internationally. The strategies and
policies of the competitors must be identified and evaluated by the firm to cope up with rivals in
the market. Effective promotional and advertisement strategy shall be implemented by the
company to attract ample of customers.
Conclusion
It is concluded that marketing strategy like promotional and advertisement strategy is significant
and unique build and develop a brand image in the market. Patanjali Ayurved is one of the
leading brands in Indian that is growing rapidly. The above analysis shows that dynamic ethical
practices are exercised by the company along with this, it also focuses on the demands and
requirements of the customers to struggle with rivalries globally. It is also revealed from the
above study that PAL faces ample of challenges and issue while advertising and distributing the
products in the global market. The analysis shows the perception and choices of the customers
regarding the Patanjali products that help in gaining competitive benefits.
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References
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Management, 15(4), pp.55-69.
Chattopadhyay, C., 2012. Indian philosophy and business ethics: A review. Advances in
Management and Applied Economics, 2(3), p.111.
Das.S.2017. Baba Ramdev aims to make India an economic super power by 2040[Online].
Available from https://economictimes.indiatimes.com/news/company/corporate-trends/baba-
ramdev-aims-to-make-india-an-economic-super-power-by-2044/articleshow/59470690.cms
[Accessed as on 3rd November 2018].
Datta, S., 2017. International Journal of Informative & Futuristic Research ISSN: 2347-1697.
Dutta, S., 2015. Study of present market standing of yogi Guru Ramdev’s flagship brand
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Journal of Research in Engineering, Social Sciences, 5(4), pp.114-132.
Furtado.C.2016. 10 reasons why Patanjali ads got pulled up by ASCI vet again [Online].
Available from https://www.zeebiz.com/companies/news-10-reasons-why-patanjali-ads-got-
pulled-up-by-asci-yet-again-4615 [Accessed as on 3rd November 2018].
Gupta, R., 2016. Disruptive marketing and brand building: A case study of Patanjali, Ayurveda
Limited. Advances in Economics and Business Management (AEBM), 3(2), pp.225-231.
Irani.D.2018. Breathe in, breathe out: Patanjali ad scandals [Online]. Available from
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patanjali-ad-scandals/62627874 [Accessed as on 3rd November 2018].
Jaggi, R. and Ghosh, M., 2017. Consumer Perception of Patanjali Products: An Analytical
Study. IUP Journal of Brand Management, 14(1).
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Jaggi, R. and Ghosh, M., 2017. Consumer Perception of Patanjali Products: An Analytical
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Khalikova, V.R., 2017. The Ayurveda of Baba Ramdev: Biomoral consumerism, national duty
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Studies, 40(1), pp.105-122.
Khalikova, V.R., 2017. The Ayurveda of Baba Ramdev: Biomoral consumerism, national duty
and the biopolitics of ‘homegrown’medicine in India. South Asia: Journal of South Asian
Studies, 40(1), pp.105-122.
Khanna, R., 2015. Customer Perception Towards Brand: A Study on ‘ Patanjali’. Global
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Patwardhan, B., 2013. Ethical and scientific aspects of research publications. Journal of
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Appendices
Appendix 1
Appendix 2
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Appendix 3
Appendix 4
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