Marketing and Management: A Critical Review of Patanjali Ayurved's Ethical Practices, Consumer Perception, and Advertising Issues

This report analyzes Patanjali Ayurved's ethical practices, consumer perception, and advertising issues. It highlights the importance of ethical practices in the success of the company and how it contributes to making the country healthy and dynamic. The report also sheds light on the advertising issues faced by the company and concludes with recommendations to eliminate and handle the promotional and advertisement issues in the competitive market.

Running head: Marketing and management

Marketing and management
Executive summary
Patanjali ayurved started its business activities and operations with Patanjali yogpeeth in
Haridwar. Patanjali Yogpeeth is one of the biggest Yoga institutes in the nation. With immense
pleasure, the ethical practices and consumer insights regards to Patanjali Ayurved Company have
been presented in the task. The report cannot be completed without assistance, communication,
cooperation and guidance. The purpose of this report is to check and analyze the effects of brand
image on brand loyalty and effectiveness and the role of customer’s insights. A deeper research
is conducted to analyze and evaluate the choices, perceptions and needs of the customers
internationally. Findings further reveal that favorable and innovative relation exists between
brand loyalty and brand image and customer perception also has a vital moderating impact on
this relation. The study replicated that how the company is entertaining ample of advertising
issues and threats while dealing with customers. The impact of advertising issues and challenges
on brand loyalty and goodwill could also be studied in the report. The company ought to pay
particular attention to the developing and improving of brand image, loyalty and attaining
customer satisfaction. A data analysis is carried to identify and measure the advertising issues
deeply. Patanjali Ayurved is a recognized brand that provides herbal, beauty and healthcare
products to the customers around the globe. A brief literature on advertising issues has been done
in task to a large extent. A company cannot survive and maximize its business and profitability
without using advertising and promotional strategies effectively. At the end, some
recommendations have been discussed to eliminate and handle the promotional and
advertisement issues in the competitive market. The study outlines that how PAL is increasing
and enhancing the business activities and revenue in the global market.
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Marketing and management
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Critical review of ethical practice of Patanjali Ayurved brand....................................................................6
Consumer perception 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................................................................................................................................................14
Appendix 1.............................................................................................................................................14
Appendix 2.............................................................................................................................................14
Appendix 3.............................................................................................................................................15
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Marketing and management
Introduction
Baba Ramdev is considered the brand ambassador of PAL. Baba Ramdev Patanjali Ayurved has
taken the Indian FMCG market by storm. The paper discusses that how PAL is improving and
expanding business functions and actions in the global market. By offering innovative herbal and
beauty products, the company is able to grab entire customers internationally. In first phase, the
paper discusses how PAL uses and adhere ethical practices and policies to lead business in the
competitive market. No company can grow and struggle with rivalries without following and
maintaining code of conducts, CSR and ethics. In second phase, the report explains the consumer
perception that plays a major role in maximizing the profitability and results. Apart from this,
key advertising issues and concerns that are being handled and faced by the firm are also
replicated in the task. At the end, the report focuses on the suggestions that will help the firm
strive and cope up with competitors in the market.
Patanjali Ayurved limited is a public company established on 13 January 2006. It is categorized
as non-government company and is registered at Registrar of Companies,Delhi. Its authorized
share capital is around Rs. 500,000,000 and its paid up capital is Rs. 413,221,088. The company
is included in manufacture and production of other chemical products. Ram Bharat, Sumedha,
Swami Mukta Nanda, Rakesh mittal and Ajay kumar Arya are the director of the firm. The firm
is not merely a firm but a thought of generating a healthy and favorable society through Ayurved
and Yoga. The farmers are rendered with all sorts of important information, factors and technical
aids about effective and dynamic farming. The manufacturing units of the company are
medicines and food items. These are made available to target audience through a wide and
innovative network of Authorized Patanjali stores and retails shops. The health, philosophy,
social welfare, and spirituality are guided by core values. Along with this, optimum utilization of
capabilities and resources are done by the company for betterment of the community. The
innovative concepts and functionality help the Patanjaliayurved to make a distinguished
organization. It is stated that the firm has attained a unique and tremendous presence across the
globe and throughout India is a very small time since its inception in 2006. Situation analysis
plays a significant role in reducing and preventing the threats and challenges of the market.
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Marketing and management
Therefore, SWOT analysis and pestle analysis are conducted by the firm to overcome these
issues and threats in the international market. The SWOT analysis for Patanjali Ayurved has
been detailed below.
Strengths Weaknesses
 The exponential growth and success of
the company can be credited to Baba
Ramdev and his popularity.
 Strong patriotism is one of the unique
and significant strengths for Patanjali
Ayurved Company.
 The company offers Swadeshi herbal
and Ayurveda products to the
customers around the world.
 Penetration pricing strategy is used by
Patanjali Ayurved limited.
 Strong distribution channels and
network further help the firm to
compete with rivals internationally
(Bhasin, 2018).
 Over dependency on Ramdev.
 The company has low number of
manufacturing units.
 Penetration pricing strategy is not
effective and unique.
 Low margin to distributors.
 The firm does not have a strong and
effective pool of management
graduates.
Opportunities Threats
 The firm has an innovative opportunity
for growing organic sector.
 Expand and grow rural.
 Patanjali has an excellent opportunity
to explore and expand internationally.
 Diversification is one of the leading and
growing opportunities for Patanjali
Ayurved (Mbaskool, 2018).
 There is immense and high competition
in the market.
 Price war and ineffective reap can
impact on the business.
 Any negative word of mouth generated
on social media platform could affect
its financial position in the international
market (Bhasin, 2018).
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Marketing and management
Critical review of ethical practice of Patanjali Ayurved brand
Jain (2016) states that ethics is a code of conduct that reveals a group and person’s behavior, the
outcome of a business that employs ethical practices is customer dignity, loyalty and finding a
firm that they can trust are always in demand. It is reported that Patanjali focuses on the
controversial issues like corporate social responsibility, fiduciary responsibilities, bribery,
discrimination and insider trading. Ethical practices provide significant and unique benefits to
Patanjali Ayurved Company. Under ethical practices, it has been found that the company is
contributing to make country healthy and dynamic. Apart from this, it also protects the rights of
farmers to exercise business functions successfully. Health and safety are major factors for
Patanjali Ayurved that taken care by the firm while delivering products to the customers.
Furthermore, the firm has set the budget for CSR projects to maintain sustainability in the
environment. 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. The
main approach of the firm is working through trusts and communities set by the firm effectively.
Baba Ramdev focuses on the quality and variety of products rather than quality, that is why the
company has been able to increase and enhance the sale by advertising and promoting products
through various distribution channels and networks. The superior approach of the firm is to
render superior quality of natural and herbal products to the customers at suitable prices. The
organization also improves the quality of life of all beings. Aside this, Patanjali Ayurved is
committed to follow the various legal, ethical and moral standards for promoting fair and
professional work environment (Christensen et al, 2007). The organization has also set a vigil
mechanism for the labors, top management and employers to offer suitable and effective
safeguards against the victimization of persons and to ensure direct access to the chairman of the
audit committee in exceptional and suitable cases (Visser and Tolhurst, 2017). If any wrong act
and misbehavior occur in the workplace then disciplinary and strict actions are taken by the
company to protect the rights and interests of the people. Patanjali Ayurved limited also has set a
whistleblower policy to make happy the people in the organization. This policy works against the
misconduct and misbehavior which is occurred at the workplace (Matten and Moon, 2008). The
board of directors is responsible for the application, interpretation, administration and review of
the ethical practices and policies. The top management also delegates powers to one or more of
its members. Along with that, the ethical practices in Patanjali Ayurved include the following.
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Marketing and management
 Be happy, honest and loyal
 Be wise, and clever
 Focus on morality and self respect
 worship a goal
 Practice self esteem
 Sacrifice the self respect
 Practice non-violence
 Focus on simplicity, efficiency and effectiveness.
Consumer perception about Patanjali Ayurved products
It is examined that Baba Ramdev has a got a position of brand ambassador. Various Yoga and
meditation programs are conducted by Baba Ramdev through various TV channels. The
company sale the products at appropriate prices thus, it has been able to capture entire target
audience in India. The ever changing marketing criteria and high competition over the world has
augmented the role of the company’s products at unparalleled level. The choices and preferences
of the customers are affected by the quality and prices of the products. Consumer satisfaction is
carried when they compare the actual performance of the goods or products with the
performance they expected out of the usage. The herbal and pure products have attained
excellent momentum in India. The company has approx 100 different products in the market for
hair, skin, eyes, and heart and kidney diseases. Indian consumer segment is highly divided into
rural and urban market and is attracting marketers from around the globe. The firm has surprised
everyone with the dramatic rise of its business functions and activities (Dubey, 2017). The
reason behind the success and development of Patanjali Ayurved is strong and effective
customer morality and trust. The reasonable prices for skin and cosmetic products are set by the
company to attract wide range of customers in the global market. In addition, Patanjali
consumers have built and enhanced a steadfast faith in the products that they are optimizing or
using. Trust is significant factors at Patanjali that helps the company to maximize its customers
and to increase sale of the products. In this way, the demand for Patanjali ayurved products are
increasing and enhancing in Indian in today’s competitive world (Malarvizhi and Chitra devi,
2018).
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Marketing and management
Key advertising issue/problems and goals and data analysis
It is stated by Advertising council of India that Patanjali ayurved is misleading the customers
through poor and ineffective advertisement. ASCI is reported Patanjali Ayurved for “misleading
and false” claims in its tremendous advertisement such as washing powder brands and hair oil.
Due to wrong commitment and misleading, the company has to pay fine and penalties. The
company virtually stopped growing and rising in the last year due to poor publicity and ads. The
firm puts it to supply chain disruptions caused due to the demonetization and the goods and
services tax or GST (Rawal, 2016). Baba Ramdev is blaming competition for even routine
products issues and concerns faced by the FMCG companies, and making unsubstantiated
allegations that multinational companies are conspiring against Patanjali (Irani, 2018). Along
with this, the distribution and networking channels are not effective and unique of the firm that
may also hamper the image of Patanjali Ayurved adversely. Patanjali Ayurved is facing ample of
issues and challenges while rendering products to the customers in all over the world. It shall be
noted that the company is responding the queries and complaints that have been faced by the
customers. The reason behind the decline can be consumer fatigue and it also affects the image
and position of the firm negatively. All these issues and concerns are being entertained by the
company while rendering products to the customers in all over the world. Along with this, the
organization is failed to maintain cooperation and collaboration with partners and customers
effectively (Singh and Gopal, 2016).
Aside this, various management issues, pricing and leadership issues are also being faced by
Patanjali Ayurved while dealing with customers internationally. Poor reap could also influence
the business operations and sale of Patanjali Ayurved in the competitive market. The main
competitor of the firm is Kellogg’s that is selling similar products as Patanjali. The company
needs to focus on the rivalries to stay in the international market. The main goal of Patanjali
ayurved is to scale up its production to RS. 1lakh crore by 2020 (Das, 2017). It is one of the
biggest goals for the company to make a strong and attractive image in the key target audience.
Along with this, it wants to attract majority of Indian customers to increase and boost revenue
and returns (Chanda and Bhusare, 2016).
Data analysis is done in the report with the help of primary and secondary research. In this task,
secondary research method is used to analyze and evaluate the data. The data has been collected
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Marketing and management
regarding the advertising and various other issues that are being handled and managed by
Patanjali ayurved in today’s competitive world. It is investigated by ASCI that approx 25ads by
Yoga Guru Ramdev’s company Patanjali to be violation of the advertising code set for the
country. It has been found that Patanjali claim for its “Kachi Ghani Mustard oil” was not
effective. Besides, the company further failed to substantiate its claims for fruit Juice, where the
company argued rival brands as “ expensive juices containing less pulp”. The other products
whose ads were seen to be unfit and ineffective include that “Data Kanti” toothpaste and
“Dugdhamrut” cattle feed (Chaturvedi, 2016). The ASCI upheld 109 out of 155 complaints got.
The advertising keeps an eye on the various brands such as Hindustan Unilever, Pizza hut,
Voltas, and Patanjali Ayurved. Out of 109 complaints which were shown, 41 belonged to the
personal care and healthcare category, 23 belonged to education category, 12 followed by food
and beverage category, 9 in the consumer durables, 9 in the e-commerce category and rest of 15
advertisements from other categories. The Patanjali kesh kanti reetha hair cleanser ad claim that
“ strengthens roots: was not effective and is misleading and ineffectiveness. There are various
products such as 39,897 dant kanti, 31,961 aloe Vera Gel and 38,608 insertions are being sold by
the company in the international market. But the company is facing various challenges and issues
while introducing these products in the market due to false commitment and poor advertising
(Saxena and Sethi, 2018).
Critical analysis and recommendations
It has been found that the company is run by a popular and well known Yoga Guru Baba
Ramdev and the company is providing innovative FMCG products to the customers across the
world. It has been portrayed by Patanjaliayurved (2018), the revenue was in Excess of INR 5000
crores for the fiscal year 2015-16. It has been seen that the firm has explored and flourished its
presence from 200 outlets in 2014 to 4000 franchise stores in today’s world, and the firm has
launched approx 2 dozens mainstream FMCG products. Along with this, it is stated that Patanjali
Ayurved follows code of conducts and ethics in the workplace while dealing with labors and
customers. CSR policies and practices are adhered by the firm to maintain sustainability at the
workplace (Arora, Singh and Grewal, 2016).
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Marketing and management
It is recommended that PAL should focus on the choices, needs and demands of the customers to
fulfill their expectations and requirements. The company is a placed in terms of sales but they
must really aim for the new age wellness platform. Along with this, the firm should keep a
watchdog on the competitors to stand out against the rivals globally. The firm should focus on
the taste, attributes and features of the products to increase and maximize the sale of organic and
FMCG products. Effective and attractive strategy shall be kept in mind to reduce and handle the
advertisement issues or challenges. Advertisement is a major concern for the company thus, the
PAL must focus on the advertisement, ads and various distribution channels to eliminate and
handle various issues and challenges. Mislead and misconduct must be stopped by the
organization to run the business smoothly. In this way, the company can make a strong and
effective reputation and goodwill in front of customers internationally. The Corporation should
focus on the management and leadership styles to direct and motivate the workers towards the
attainment of objectives and targets globally.
Conclusion
From the above discussion, it is measured that advertising and promotion are significant part of
each and every company to reach at top level in the international market. The above study
reveals that PAL needs to focus on the advertisement strategy to prevent and minimize various
issues and challenges related to advertisement and promotions. Along with this, the paper
analyzes that that consumer perception and choices are essential to increase the sale and market
share in the market. Therefore, consumer insights need to be kept in mind while serving the
products along with this, it is noted that ethical practices and CSR are significant to betterment of
society and company as well.
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Marketing and management
References
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Appendices
Appendix 1
1.Dark complexion is not an skin alignment
(Source: Irani, 2018).
Appendix 2
2.Dant kanti toothpaste ad
(Source: Chaturvedi, 2016).
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Marketing and management
Appendix 3
(Source: Anand, 2017)
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