Critical Analysis of Patanjali Ayurvedic Company Marketing Strategies

This report provides a comprehensive analysis of Patanjali Ayurvedic Company's marketing and management strategies. It begins with an introduction and background of the company, highlighting its rapid growth in the Indian FMCG market. The report then delves into a current situation analysis, examining the company's sales performance, market share, and competitive landscape. It explores Patanjali's marketing goals, including its vision and mission, and identifies key marketing issues such as competition from multinational companies. The analysis includes a SWOT analysis and an examination of the 4Ps of marketing, offering critical insights and recommendations for future growth. The report concludes with a summary of the company's successes, challenges, and potential strategies for maintaining and expanding its market presence.

Running head: MARKETING AND MANAGEMENT
Critical analysis of Patanjali Ayurvedic Company Marketing
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Executive Summary
The following report has been based on the identification of the different kinds of the
organizational perspectives. The report has selected Patanjali Ayurvedic as the basis for the
formulation of the study. The different perspectives of the business along with the
organizational needs of the business have been presented in the following report. The report
has identified the different kinds of the business needs that has been selected to get an idea of
the internal analysis and the external analysis of the business organization.

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Table of Contents
Introduction................................................................................................................................4
Background............................................................................................................................4
Current Situation Analysis.....................................................................................................5
Marketing and management.......................................................................................................7
Goals of the business..............................................................................................................7
Key marketing issues.............................................................................................................8
Data Analysis.......................................................................................................................10
SWOT Analysis.......................................................................................................................11
4-p’s of Marketing................................................................................................................11
Critical Analysis and Recommendations.................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14

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Introduction
Background
Patanjali Ayurvedic is an Indian consumer goods company that specialises in the
manufacture of different types of Ayurvedic and herbal products. The registered office of the
company is located in Delhi, whereas the Company also has different kinds of the
manufacturing units located in Nepal. The management of the company operates its
manufacturing and trading units in Nepal under the name of Nepal Gramudhyog.
Headquartered in the industrial sector of Haridwar, the company has been termed as the
fastest growing FMCG Company of India by CLSA and HSBC. According to popular
estimates, the company is seen to have an annual turnover of more than 15,000 crore rupees
which is gradually increasing with the passage of each financial year. It has been listed as the
13thmost trusted FMCG brands of India. The company was founded in the year 2006 as a
joint venture of yoga guru Baba Ramdev and Acharya Balkrishna. The company has targeted
the Indian sub-continent and Middle East Asia as the areas of their primary target.
The management of the company has also earned a unique name for itself as, it
maintains a huge HRM process in the presence of 2, 00,000 employees. The presence of
more than 15000 different kinds of Patanjali stores along with other Patanjali selling stores
have turned the business of the company into a highly successful one. The management of the
company has planned to operate online stores that can help the organization to ensure the
success of the organization. As per the organizational planning, the management of the
business has tied up with the Pittie Group and Kishore Biyani’s Future Group to sell their
products in the stores. The company has also started expansion by means of dealership and
distributorship channels across the country and expects wider growth in overseas distribution
as well. With a range of 900 different products along with 45 different types of cosmetic

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products, the company has been able to gain a standard market share within the business
market. Apart from the Ayurvedic products, the company has also started different kinds of
medicines as well as baby products.
Current Situation Analysis
Patanjali Ayurvedic’s growth faltered during the last two years or so as rivals mostly
multinationals launched a number of different kinds of natural and herbal products in order to
counter the challenge of the Ramdev led enterprise. The sales volume of the company grew to
around 7% during the October month of the last fiscal, whereas the company saw a huge
surge of around 22% during the last year. The different types of the research on the volume
of sales and the market share of the company clearly show a sharp decline in the market share
of the company. Though the financial details of the company has not disclosed its financial
details in the market, the management of the company claimed that it has been able to make
name for itself in the market and has created a unique range of customer base. The
management of the company has been preparing for the next level of the growth in the
coming years, as because the organization has been trying to shed over the image of being an
herbal brand and is trying to expand itself in other operational areas. The company has been
growing in a fast pace and has established itself in terms of both shares and retail shelves in
the business market.
The company built its company focusing on Ayurveda business almost from scratch
in a few years and has gained immense popularity from the market as a result of the
Ayurvedic products. The management of the business organization which started the
organization from scratch has been able to gain the required capability and marketing ability
to gain a considerable success in the market. As mentioned earlier, the company has launched
over a number of different kinds of FMCG products over the years which includes the likes
of, toothpaste, soaps, hand wash, face wash, honey, juice, noodles, dish wash, beauty

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products and many more as such. The majority of these products have occupied a healthy
market share in the market and have been giving the other products in the same category a
run for their money. The combined products of the company got a CAGR of 21% in the
2018-19 fiscal year which was much higher than that of the CAGR of 11% of the total
FMCG sector. The commercial success of the products was initiated by a number of
different factors that includes,
a. Brand image of Baba Ramdev
b. Rapid entry into the FMCG sector
c. Value pricing and differentiated positioning
d. Availability of the products
e. Ayurvedic and herbal products which is healthy and hygienic
The management of the organization has also cited a major reason behind its growth.
Though the share of the market of most of the products has been stable, the market share of
the company in hair oil, shampoo and butter have fallen to a considerable extent. The
management of the business organization has however come up with different kinds of
strategies to counter the growth of the business accordingly as it has started to strengthen the
management structure and also the supply chain of the business. This will help the
organization to result in another growth driver status in the FMCG industry. However, the
company has been facing stiff competition from other multinational companies like that of
Unilever, which has re-launched its Ayush Brand and has launched a number of Ayurvedic
personal products as well as different health care products. This kind of competition has
pushed the limits of the Patanjali management as it is now concentrated on launching
traditional FMCG products. The shift in paradigm will see a new dawn for the management
of the company which may or may not be successful in the market. However, a proper and
effective strategy, innovation and extensive market research can be key to the success of the

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new products in the market. The company has to ensure the formulation of the best strategies
and its implementation in the most effective manner to ensure business success.
Marketing and management
Goals of the business
Before discussing about the goals of the business organization, it is important to have
a note of the different kinds of the vision and mission of the company. The vision of the
company is to commit themselves as to create a healthier society and country by keeping
nationalism, Ayurveda and Yoga as the three pillars of the success. The company is also
committed to raise the pride and glory of the world, the company is engaged in providing the
people with the blessings of the nature into their lives. The mission of the company, on the
other hand is to make India an ideal place for the growth and development of Ayurveda and
make the country and its Ayurveda system and processes a prototype for the rest of the world.
The Ayurveda goal of the company is to scale up the production to 1lakh crore rupees by the
year 2020. Though the target of the company seems to be a bit tough to achieve, the
management of the organization has the belief of achieving the target within the scheduled
time. The reason behind such a claim is because of the company’s feat of achieving more
than 100% growth in the last few years.
Apart from that the continuous investment of the company in food and herbal parks
has been a success factor for the business organization. The company has established a
number of different food parks all across India which has been the most important investment
of the company and has set the pace for further revenue generation and profitability. The
company has also got the status of the mega industry in most of the states where it has started
its business. It has now established industrial parks, food parks, research centres, Ayurveda
research units, food processing units and many other similar large as well as small scale

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business industries which has helped the business organization to ensure success across the
business. A2000 crore mega project in Uttar Pradeshwhich aims to integrate the farmers to
the business markets and the wider world is also on the fray. The strategies implemented by
the management of the company has turned the organization into a formidable force in the
FMCG sector with the doubling of the turnover in the coming years. The goal of the business
enterprise is to also scale up its business across the border with the increase of its activities in
Nepal. The management of the company has invested to set up two new manufacturing
facilities in Nepal as it will provide a major boost to the organization to increase its market
share with more products and large-scale business innovation. Another major development
for the company is the start of the e-commerce sales with the business collaboration of the
company with Flipkart and Amazon online retail stores. Until now the company was only
available in the brick and mortar stores. However, the tie up with the e-retail companies will
help the organization to market and promote the product and also increase the customer base
of the company accordingly. The company has also ventured into acquiring foreign
investment into the organizational system to ensure the success of the company. The
company has also announced its entry into the textile business market. The newest addition to
the long list of the product that the company aims to launch in the coming days is the jeans
which has been named “Swadeshi Jeans”. Apart from the manufacturing of the jeans, the
management of the company has also aims to invest in bags and footwear which can be
another success story for the Indian business market. All these strategies and goals of the
company will surely provide a great opportunity for the business organization in the coming
days.
Key marketing issues
Patanjali has been a great success story for the Indian business market as it has
scripted history by means of selling the products of the business through their own flagship

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stores and has rapidly jumped into a number of different industrial sectors, especially in the
FMCG sector with a variety of products starting from shampoo and beauty products to floor
cleaners and food items. The uniqueness of the company has always been its range of
Ayurvedic and herbal products. The herbal and Ayurvedic products have helped the business
to establish a separate name of their own in the business market. The company has mainly
targeted the rural and the middle income urban customer segment of the business
organization. The management of the company has agreed with a number of online as well as
physical retail stores of the country to make their products available to the targeted
customers. Apart from these tie up’s, the company has also selected a number of different
kinds of business strategies like selection of the franchisee model to ensure the huge
availability of the business products in the market. Though there has been a large number of
different kinds of advantages that has clicked for the company, a large number of challenges
and issues have been problematic for the business of the organization to ensure business
success. Some of the major challenges of the business organization included the likes of;
 Maintenance of quality and brand promise-The key to buying different kinds of the
Patanjali products is quality and purity. The quality and purity of the brands delivered
by the enterprise must be maintained in order to ensure the success of the business
and also to maintain the core brand promise. The company must maintain such
promises and concentrate more on FMCG enterprise as it is not possible for the
company to suddenly switch over the products and enter into the textile or footwear
segment rapidly. Expanding product portfolio with brand extensions-The expanded portfolio of the
business has not matched up the speed of the brand extensions. The company has
failed to concentrate on most of the products and has instead entered into industries
like textile, footwear, food and home cleaning solutions. These kind of the products

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are not related to Ayurveda and thus the management of the company has failed to
concentrate on their basic purpose to ensure healthy and suitable Ayurvedic products. Absence of key sub-branded range of products-The Company has established a
number of different products has been discussed earlier. However there has been
problems with the communication process of the company. Both the internal as well
as the external business communication has been one of the best in the business. This
kinds of communication absence can lead to the marketing problems of the business. Image driven branding-The consumers do not buy products to suit the different
personal needs. The customers generally buy products that offers them brand value
and trust. However, the image driven branding of the products has been one of the
major issues of the company as different questions may arrive from the integrity of
the brand accordingly.
Data Analysis
Patanjali Ayurveda has been in the market from the year 2006 and has been one of the
most successful companies of the organization for the last few years. The marketing analysis
of the company has been provided here to gain a good understanding of the research. The
internal as well as the external analysis of the company has been discussed in the following
chapter. The company which came into existence just a few years back has expanded its
business in such a manner that it has started to give a tough competition to other brands in the
market. The SWOT Analysis of the company is as follows;

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SWOT Analysis
STRENGTHS OPPORTUNITIIES Strong relation with the central and
state governments Getting involved in the Ayush
scheme of the government Low cost of production Loyal customer base
 Low amount of product prices
 Tie-up with online retail companies
like Flipkart, Amazon and Big
Basket to provide the business
organization a much needed
exposure
 Expansion into new industries like
footwear and garments
WEAKNESSESS THREATS Low presence in traditional retail
business Huge dependency on brand value Poor packaging Restrictions over distribution
 Presence of large number of
multinational FMCG Companies
 Himalaya, the largest rival brand of
the company already sells a vast
range of Ayurvedic beauty products
 Large scale business challenges in
the market
4-p’s of Marketing
The four P’s of marketing for Patanjali are as follows;
 Product- There is large number of different products which includes different kinds of
FMCG products as well as different kinds of the food and healthcare products. Price- The elimination of any kind of intermediate sources and low production cost
has helped the business organization to price all of its products at a minimum of less

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than 20% to less than 30% prices. The fewer prices make the products more attractive
to the targeted range of the customers. Place- The products of the organization are available at different places including that
of flagship stores, medical centres, retail stores and online markets of the third party
vendors. Promotion-The management of the company generally focuses on content marketing
and promotes the products through the help of the brand value of Ramdev. The
partnership of the organization with different kinds of the retail groups helps the
organization to ensure business success.
The analysis of the market has revealed the importance of the company and the place it
occupies in the business market. The strategy of the business organization to promote itself as
the servers of healthy and hygienic products to the people has worked well for them.
Critical Analysis and Recommendations
The report has been one of the great examples that has identified the spread and
growth of the business in India and in some neighbouring countries. The major strengths of
the company that has been identified include the likes of the relationship in between the
people and the government and also the presence of the loyal customers. However, the strong
competition in the market from the traditional companies and the experience of the traditional
companies has led to serious threats to the company. The analysis of the Patanjali Company
and the different kinds of the marketing analysis has provided a clear picture to the different
kinds of the marketing perspectives of the business organization. Some of the major
recommendations for the company are as follows;
a. Analysis of the market must be done in a proper manner
b. The company has to be innovative in terms of selection of the products