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, 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.
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· 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. |
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· 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. |
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 it clocked rs. 450 crore in revenue in 2012. The management practices of Patanjali brand have been discussed below.
The ethical practices of Patanjali brand have been discussed below.
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 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).
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 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.
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 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)
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 that the company should identify and measure the risks, threats and challenges of the market to maximize revenue and returns.
References
Anand, S. (2017) Baba Ramdev’s Patanjali TV advertisements up 34% this year. [Online]. Available from: https://economictimes.indiatimes.com/industry/services/advertising/patanjali-tv-ads-up-34-this-year/articleshow/59327672.cms [Accessed on 2nd November 2018]
Business Fortnight (2016) Baba Ramdev’s Patanjali aims to beat Nestle, P&G & Colgate. [Online]. Available from: https://www.businessfortnight.com/baba-ramdevs-patanjali-aims-beat-nestle-pg-colgate/ [Accessed on 2nd November 2018]
Dutta, A. (2017) Patanjali takes cue from FMCG players, pivots away from branded franchise outlets. [Online]. Available from:https://www.business-standard.com/article/companies/patanjali-takes-takes-cue-from-fmcg-players-pivots-away-from-branded-franchise-outlets-117071100054_1.html [Accessed on 2nd November 2018]
Maheshwari, N. and Sharma, R.P., 2017. Growth of Patanjali Brand from Local to Global Market: A Study. IUP Journal of Brand Management, 14(4).
MBAskool.2018. Patanjali SWOT analysis, competitors & USP[Online]. Available from https://www.mbaskool.com/brandguide/fmcg/16941-patanjali.html [Accessed as on 2nd November 2018].
Mehrotra, S., Salunkhe, U. and Chakraborty, I., 2017. Patanjali: an Indian FMCG on growth path. Emerald Emerging Markets Case Studies, 7(2), pp.1-35.
Mishra.P.2016. 6 Reasons why Patanjali products are loved by their consumers [Online]. Available from https://www.linkedin.com/pulse/6-reasons-why-patanjali-products-loved-consumers-prashant-mishra [Accessed as on 2nd November 2018].
Patanjaliayurved.2018. Company overview [Online]. Available from https://patanjaliayurved.org/company-overview.html [Accessed as on 2nd November 2018].
Patanjaliayurved.2018. CSR policy [Online]. Available from https://patanjaliayurved.org/csr-policy.html [Accessed as on 2nd November 2018].
Patanjaliayurved.2018. Whistleblower policy [Online]. Available from https://patanjaliayurved.org/whistle-blower-policy.html [Accessed as on 2nd November 2018].
Patanjaliayurved.2018.Vission & mission [Online]. Available from https://patanjaliayurved.org/vision-mission.html [Accessed as on 2nd November 2018].
Rawal, P., 2016. Indian Monk Who Wants A Billion-Dollar Company: A Yogic Business Revolution. International Journal of Management Research and Reviews, 6(9), p.1169.
Saha.M.2018. Has Patanjali cut down on TV appearances? [Online]. Available from https://www.exchange4media.com/marketing-news/has-patanjali-cut-down-on-tv-appearances-89627.html [Accessed as on 2nd November 2018].
Sengar, A., Sharma, V. and Agrawal, R., 2017. Market development through integrating value chains–a case of Patanjali Food and Herbal Park. Emerald Emerging Markets Case Studies, 7(4), pp.1-22.
Shinde, D.T. and Gharat, S.J., 2017. product positioning of Patanjali Ayurved ltd. Pune research discovery, 1(3), pp.1-6.
Shukla, S., 2017. Growth Strategies to Demystifying the Brand Patanjali. Journal of Business Management & Quality Assurance (e ISSN 2456-9291), 1(3), pp.35-50.
Shukla, T. and Sanghvi, R., 2017. India’s Fastest Growing FMCG Company: An Insight into Patanjali’s Marketing Strategies. Evidence Based Management, 105.
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