Marketing and Management Report: Patanjali Ayurved's Business Analysis

This report provides a comprehensive overview of Patanjali Ayurved's business operations, focusing on its marketing and management strategies. It begins with an executive summary and an introduction to the company, highlighting its consumer goods offerings and market position. The report delves into the ethical practices of the Patanjali Ayurved brand, examining its adherence to principles of honesty, righteousness, and simplicity. It also analyzes consumer insights, exploring the factors that contribute to the brand's popularity and customer loyalty, such as perceived quality, price benefits, and a strong distribution network. Furthermore, the report addresses key advertising challenges and issues faced by the company, including criticisms from the Advertising Standards Council of India (ASCI) and supply chain constraints. Data analysis, including a SWOT analysis, is presented to assess the company's strengths, weaknesses, opportunities, and threats. Finally, the report concludes with recommendations aimed at mitigating challenges and ensuring the long-term success of the Patanjali Ayurved brand in the competitive Indian market.

Running head: Marketing and management
Marketing and management
2018

Marketing and management
Executive summary
Patanjaliauyerved is an Indian consumer goods Company that delivers herbal and mineral
products to the key target market segment. It is popular brand in consumer goods industry that is
expanding and flourishing the business activities to a large extent. A critical review of ethical
practice of Patanjali Ayurved brand has been discussed in the task briefly. Along with this, the
emphasize would be given on the consumer insights about the brand that helps the firm to
increase and boost sale and profitability in the Indian market. In second phase, the paper also
outlines the key advertising issues and challenges that are ongoing in the organization in today’s
globalization world. In addition, data has been collected to outline and discuss the business
operations and challenges that are being handled by the company. SWOT analysis in context of
Patanjaliauyerved has been drawn in the paper. Finally, some suggestion have been shown to
minimize and prevent various challenges and issues that are faced by Patanjali Ayurved brand.
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Marketing and management
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Ethical practice of Patanjali Ayurved brand................................................................................................5
Consumer insights about Patanjali brand.....................................................................................................7
Key advertising challenges and issues.........................................................................................................8
Data analysis...............................................................................................................................................9
Critical analysis/Recommendations...........................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
Appendix...................................................................................................................................................14
Appendix 1.............................................................................................................................................14
Appendix 2.............................................................................................................................................14
Appendix 3.............................................................................................................................................15
Appendix 4.............................................................................................................................................16
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Marketing and management
Introduction
The main motive of this task is to provide a brief information about the business activities and
operations of Patanjaliauyerved. It is one of the growing Indian FMCG companies which offers
mineral and herbal products to the customers. The paper outlines that how the company exercise
ethical practices and how it is facing ample of advertising issues while expanding the business
globally. It is a continuation part of assignment 1. A data analysis in the context of
Patanjaliauyerved also has been done in the task. At the end, the report focuses on the various
recommendations that help in achieving long term objectives and goals. More detail of the task
has been drawn below.
Patanjali Ayurved limited is an Indian consumer goods company which is incorporated in 2006
(Patanjaliayurved, 2018). The manufacturing units and headquarters are situated in the industrial
field of Haridwar while the registered office is situated at Delhi. It is noted that the firm
manufactures herbal and mineral products. The company has manufacturing units in Nepal under
the trademark Nepal Gramudhyog and imports majority of herbs in India from Himalayas of
Nepal. The company provides good quality of products to the customers across the globe. The
firm further tries to take every action to ensure quality like the unique ID system to stop fake and
ineffective products. Patanjali Ayurved limited offers organic and herbal products to the
customers on contract farming (Shukla, 2017).
Along with this, the firm has takes various measures for farmers to increase and enhance their
income and render surety towards sale of their produce. Increasing and enhancing processing
units, exploring sale profit units and retail outlets across the country show company’s
magnificent journey so far. The consistency in development and expansion is due to the
increasing and enhancing trust and loyalty. The company is a leading and growing name in the
consumer goods industry. The main motive of the firm is to expand and grow concepts of
wellness of community and individual (Patanjaliayurved, 2018). Patanjaliayurved offers ample
of products such as Aloe vera, Jam, Juices, harad, Karela, Khus, Litchi, Mixed fruits, Lemon,
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Marketing and management
Amla, and Guava. These products are hygienically and effectively made with finest of brains and
machines to render excellent and effective products. It is stated that the company is committed to
generate a healthier nation and community. To raise the glory and pride of the overall world, the
company is geared up to serve customers by bringing the blessings of nature into their lives. The
main mission of the organization is to make India an ideal and effective place for the expansion
and development of Ayurveda and a prototype for the entire world.
SWOT analysis for Patanjaliayurved has been discussed below.
Strengths Weaknesses
 Patanjali has expanded and grown at a
rapid pace in a short time period.
 Strong brand ambassador is one of the
biggest strengths for the company.
 The firm renders new products, and
new style of marketing to change the
marketing.
 The organization has more than
200,000 employees (MBAskool, 2018).
 The firm has launched various products
in a short time.
 Patanjali faces ample of issues while
advertising and promoting the products.
Opportunities Threats
 Patanjali can enter into the new market
to augment profitability.
 It can also diversify in apparels.
 There is high and intense competition
in FMCG industry.
Ethical practice of Patanjali Ayurved brand
It is stated that Baba Ramdev is a famous yoga practitioner who attracted and retained a zillion
people in a short time period. It was only possible through dynamic and effective practice and
experience of Baba Ramdev. The brand Patanjali is effectively and dynamically trusted by
various customers across the nation. It has been studied that Patanjali has become a most
effective and prestigious brand across the world. The turnover of the company is 2000 crore and
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Marketing and management
it clocked rs. 450 crore in revenue in 2012. The management practices of Patanjali brand have
been discussed below.
 The company appoints and selects strong, talented and skilled people. The company
holds strong expertise that has enough knowledge and experience. Baba Ramdev did not
become effective and successful overnight. Patanjali is a popular brand in the market.
Baba Ramdev has enough knowledge and experience about Ayurveda and this is a
significant and unique reason behind the success and growth of the company (Shukla, and
Sanghvi, 2017).
 Before implementing the business, market research is done by the company. Patanjali
Auyrved limited is an Indian FMCG corporation which is situated in the industrial area of
Haridwar.
 It has been found that clear and effective promotions are done by the firm to promote and
encourage the brand in the international market.
 The biggest and effective mantra to growth and success is best quality products with
reasonable prices (Mehrotra, Salunkhe and Chakraborty, 2017).
The ethical practices of Patanjali brand have been discussed below.
 Be honest practice is one of the unique and effective ethical practices that is followed and
maintained by the company. The firm is honest with people while rendering products to
the people. A lie and mistake is permissible only in well justified circumstances.
 Practice righteousness (Asteya) that means the company does not cheat with people while
offering products to them.
 Be wise (Brahmacharya). The company focuses on the spiritual factors to make happy the
people globally.
 Practice simplicity (Aparigraha). A spiritual individual lives outwardly, modestly and
inwardly rich. A yogi further uses energy they do not use outer actions.
 Worship a spiritual goal (Ishvara-Pranidhana). Thus, the people do not lose spiritual path,
it is essential that people remind themselves again and again to fulfill the spiritual goals
and objectives.
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Marketing and management
 Sacrifice the ego(Shaucha-Purification/cleaning). Without a crucifixion there is no
illumination and truce sacrifice is an effective and unique art. The company serves people
without hampering their health and wellbeing.
 Practice self discipline (Tapas) that means people keep clear goals, objectives and
effective way of practicing. Tapas refer to a discipline. It means people in the company
follow inner wisdom and spiritual platform.
 Read daily(Svaddhyaya). The daily reading like meditation and mantra keep people on
the spiritual route, cleanses people spirit, connect with people by enlightened masters and
makes them to spiritual strong and unique.
 Be content and happy (Santosha). Santosha provides happiness to the people and it also
helps to increase and enhance the level of satisfaction of the people internationally.
 Practice non violence (Ashima) that means no killing other beings. It will help to be
peaceful and meek (Patanjaliayurved, 2018).
 Being honest in providing products to clients, employees, public, suppliers, distributors
and consumers.
 Setting equitable fee schedules such as customary, payment of receipt of usual and legal
compensation for marketing exchanges.
 Not knowingly contributing in dispute and issues of interest without prior notice to all
parties involved (Patanjaliayurved, 2018).
 It has been analyzed that company is committed to follow the highest standards of moral,
legal and ethical conduct of business activities and operations by promoting and
improving a fair transparent and professional and ethical work environment. As per the
provision of section 177 of the companies act 2013, it is compulsory for the firm to set
vigil platform for workers and directors to render adequate and effective safeguards
against the victimization of people and to ensure direct access to the chairman of the
Audit committee in a hassle free manner (Patanjaliayurved, 2018).
Consumer insights about Patanjali brand
It is stated that Patanjali has surprised everyone with increasing and enhancing the demands and
needs of the products. A strong element behind its progress and success story seems to be the
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Marketing and management
strong and effective trust and loyalty of the customers (Shinde and Gharat, 2017). Here are the
top biggest reasons why company’s products are liked and selected by their customers.
Greater perceived quality: The excellent quality of Patanjali products is carrying the growth
and progress of the business in the competitive market. The products such as toothpaste,
shampoo, ghee and chavanprash are considered superior by the customers across the world.
Price benefit: It has been studied that Indian market has considered been price effective and
sensitive. The company provides the products at reasonable prices with excellent quality thus, it
helps in attracting and retaining wide range of customers.
Strong and effective distribution network: With ample of dedicated and passionate retail
shops around India, the firm bridges the gap between the actual purchasing process and intention
to buy. Most of the buyers are locals and extremely like Patanjali products. In this way, it helps
the company to gain competitive benefits in the international market (Mishra, 2016).
Trusted brand ambassador: It has been noted from the various studied that Patanjali has
received a strong and effective brand ambassador. The company is credited with bringing and
attaining yoga to the forefront in India. The firm further has got faithfulness and loyalty of the
customers by providing innovative and excellent products to them (Sengar, Sharma and Agrawal,
2017).
Brand trust: It is observed that the customers have built and improved a unshakable faith,
honesty and loyalty in the products and goods that they are utilizing. Trust and loyalty in the
company have been improved and built over a period of time with favorable experiences and
knowledge with the products. This trust and loyalty have converted various Patanjali customers
to brand evangelists (Mishra, 2016).
Key advertising challenges and issues
The advertising standards council of India (ASCI) stated that Patanjali Ayurved “unfairly
denigrates” products of its rivals in the promotions and advertisements. It has been found that
Patanjali company has failed to substantiate its claims for fruit juice, where the firm claimed
rival brand as “expensive juices containing less pulp”. Apart from this, the firm also failed to
validate or investigate its claims in the ad for cattle feed ‘Patanjali dugdhamrut’. The retail chain
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Marketing and management
of the company is facing and handling supply issues in today’s modern world while serving
products to the customers across the globe. It is further stated that there is a communication
between the retail chains and customers (Rawal, 2016). It is analyzed that communication
strategy focuses only on the name “Patanjali” it does not focuses on the sub brand. This may
impact on the sale and revenue of their key categories. The customers do not just purchase
products to suit their demands and requirements, instead they purchase a solution that render
them value with loyalty and trust. As per the ASCI, the company is factually wrong and likely to
mislead or misconduct the customers as the advertiser has not initiated its commercial and
effective services. There is a high gush in demand for products therefore the company is facing
and managing constraints in supply and procurement of production, manufacturing and raw
materials (Yadav, 2017).
Maintaining quality, effectiveness and brand promise is another issue in Patanjali that is affecting
the brand image and financial position of the firm adversely. Due to lack of dynamic and
excellent quality standards, the company is unable to shake the boardrooms of FMCG giants.
Quality becomes a major concern for the firm while dealing with customers in overall the world.
Few brands like Virgin group have done a unique and tremendous job at brand extensions,
though with failures in various categories. Considering and focusing Patanjali have forayed into
different categories like apparels, shoes and home cleaning solutions etc. which are effectively
interconnected with goodness and ayurveda. All these issues and challenges may put direct
impact on the brand loyalty and goodwill in the global market. Low price is one of the ongoing
issues in the company that is reducing the sale and profitability of Patanjali in the marketplace
(Maheshwari and Sharma, 2017).
Goal: The main goal of the company is to double its turnover in the marketplace and further it
wants to fulfill demands, expectations and needs of the customers by rendering excellent quality
of herbal and nutrition products to the customers.
Data analysis
The data analysis for the report can be done with the use of both primary and secondary method.
In this report, the data has been analysed with the use of the secondary data collection method.
The data has been analysed related to the issues which are faced by the Patajanli brand in the
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Marketing and management
market.Patanjali brand make use of the advertisement for promoting their products in the market.
There are numerous brands which are introduced by the company in the market with a wide
range of products. The list of the top advertised Patanjali brand include Dant Kanti with 39,897,
Soap with 38,608 insertions, Aloe Vera Gel with 31,961and Herbal washing powder with 27,598
(Anand, 2017). This can be evidence in Appendix 1.1 which include the details that reflect these
are the various products which are advertised the most in the market. On the other hand, this has
been found that the company deals with the issue in conducting the advertisement of the other
products in the market because of the change in the demand of the customers. (Refer appendix 1
for the reference)
The product availability is one of the leading issues which affect the working of the Patanjali.
The research has been conducted on the conventional route which includes the reach of the major
FMCG players and Patanjali. The number of outlets that are operated by Hindustan Unilever is
6.0mn, Dabur with 5.0mn, Nestle with 3.5mn and in the end Patanjali with only 0.8mn (Dutta,
2017). This data reflects that the company need to take the concern steps to increase the range of
distribution in the market if they are willing to compete with the leading FMCG. The research
reflects that this is the time when it is essential for the company to grow in the market. (Refer
appendix 2 for the reference)
Contracting the views, the research reflected that the company is growing from 2011-12. The
company has more than 4,000 distributors with 10,000 stores and 100 mega-marts. In addition,
the company has a tie-up with different retails chain include Future Group and Reliance Retail.
This helps the brand to grow in the market. Moreover, this can be evident from evaluating the
growth since 2011-12 which shows that they earned the revenue of 453cr with a net profit of
56cr and net profit margin of 12.36%. The growth of the company year by year due to which in
2012-2013 the company registered 849cr revenue with 91cr of net profit ad 10.72% of net profit
margin. The revenue of brand increased year after year which is evident from 2014-15 data
which reflects revenue of 2006cr with a net profit of 317cr and 15.80% of net profit margin
(Business Fortnight, 2016). (Refer appendix 3 for the reference)
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Marketing and management
Critical analysis/Recommendations
It is analyzed Sengar, Sharma and Agrawal 2017 that Patanjali is a complier of the Yoga Surtas,
a significant and unique collection of aphorisms on Yoga practice. According to Singh and
Gopal (2016), product aspects and benefits Patanjali provides to their customers become the
basis and route of brand honesty and loyalty. Therefore, data was gathered and collated to
explain and understand the types of customers and their attitudes towards the Patanjali brand.The
ongoing success and progress of Baba Ramdev’s Patanjali brand has had also impact on the
global ayurvedic consumer products segment, supporting it outpace the overall consumer
products industry in success and growth. It has been portrayed by Sreekumar and Varman
(2017), one of the significant elements contributing to company’s progress and success is
aggressive TV advertising which has been able to make brand effective and dynamic across the
globe. The index growth in 2017 was 38% in the April which remained the same in March 2018
too (Saha, 2018). It is analyzed that a robust monitoring mechanism has been developed by the
company to ensure an effectiveness and transparency in the market. It will also helps in
implementing CSR activities and practices (Patanjaliayurved, 2018).
It is recommended that the company should focus on the fewer products categories that are
consistent, effective and efficient. They must identify and focus on the creating sub-brands for
new products to maximize revenue and profitability. It should focus on the advertisement
strategy to grow and survive business activities in the global market. Along with this, future risks
and challenges shall be identified and measured by the company to build a good reputation and
image in the international market.
Conclusion
It is concluded from the above mentioned discussion that Patanjali ayurved is one of growing
and leading brands in today’s competitive world that provides innovative herbal products to key
target audience in the market. Along with this, company adhere various ethical policies and
standards to run the business operations in a hassle free manner. But in today’s modern world,
the company is facing tremendous challenges and risks due to lack of proper advertisement
strategies and policies. It hampers the brand image and efficiency of the firm. It is recommended
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that the company should identify and measure the risks, threats and challenges of the market to
maximize revenue and returns.
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