Patanjali Ayurveda Ltd. was a small pharmacy. But it has brought a revolutionary change in the consumer goods industry. It has achieved a prominent position in the FMCG sector in India. Patanjali is an amalgamation of traditional healthcare products and modern wellness products. Its high-quality products at affordable prices have made a huge customer base from different backgrounds of the society.
Patanjali: An Overview
Baba Ramdev and Acharya Balkrishna established Patanjali in 2006. With its headquarters in Haridwar, Patanjali company specializes in producing Ayurvedic products. Its production includes healthcare medicines, supplements, home care products, noodles, toothpaste, shampoo, biscuits, juices, spices, and skin care products.
You can get their products from retail stores and online platforms. Patanjali maintains state-of-the-art facilities in the manufacturing units in India. The company focuses on the quality of its products. While manufacturing products, the company uses minimum chemicals and artificial additives.
Patanjali Company Details
| Name | Patanjali Ayurved Ltd |
| Headquarters | Haridwar, Uttarakhand, 249401 |
| Industry | Consumer Packaged Goods |
| Founded | 2006 |
| Founders | Acharya Balkrishna, Baba Ramdev |
| website | www.patanjaliayurved.net/ |
SWOT Analysis of Patanjali
Strengths of Patanjali
#1. Baba Ramdev, the Founding Father: Baba Ramdev, a highly renowned yoga instructor along with Acharya Balkrishna, a scholar of Ayurveda founded Patanjali Ayurveda Ltd. Patanjali’s association with Baba Ramdev has helped to boost the company’s growth. Moreover, he is the brand ambassador of Patanjali. His popularity and fame and Patanjali’s high-quality products and affordability have made the brand a household name nationwide.
#2. Price Strategy Structure: The price of Patanjali’s products is 20-30% lower than that of the competitors. This innovative pricing strategy has enabled the company to dominate the FMCG market. These products are affordable for lower and middle-class consumers.
#3. Ayurvedic Heritage: Rich Ayurvedic heritage is one of the greatest strengths of Patanjali. The consumers looking for natural products are satisfied with Patanjali products. The Ayurvedic heritage, deeply rooted in Indian culture, offers Patanjali a unique advantage.
#4. Diversified Portfolio: Its marketing strategy includes the promotion of herbal products. It emphasizes the benefits of organic and natural materials. Authentic Ayurvedic formulations, the Patanjali company has incorporated, have given it a bump over its rivals.
Weaknesses of Patanjali
#1. Low Number of Manufacturing Units: The demand for Patanjali products is increasing. But comparatively, there are a low number of manufacturing units in Haridwar and Nepal. This apparent scarcity of manufacturing plants is unable to meet the rising demand for the products.
#2. Rural Brand: Patanjali has an image as a rural brand. This image may restrict its appeal to urban clients. Urban people can not adopt the brand’s ideals.
#3. Low Margin For Distributors: Patanjali’s pricing model challenges partnerships and collaborations. They are not able to get profits from their products. Though competitive rates benefit the consumers, they may destroy partnerships.
#4. Global Presence: Despite Baba Ramdev’s reputation and Ayurved’s global demand, Patanjali’s international reach is quite low. The brand needs to expand its footprints to the global market to bring a global wellness movement.
Opportunities of Patanjali
#1. E-Commerce: Patanjali can use digital technologies to improve its supply chain user experience and operational efficiency. Moreover, it can learn about customer behavior. Patanjali can reach global customers ignoring geographical barriers via e-commerce.
#2. Strategic Partnerships: Patanjali has a tie-up with Future Group. Thus, Patanjali has an opportunity to enter into modern retail chains. This partnership increases its online presence and has presented a model for other collaborations.
#3. Research & Development: Patanjali focuses on research and development. In-depth research and development assures the brand’s high-quality products.
#4. Entry Into The Luxury Market: Patanjali is carrying on research and development. It may enter the luxury market and with its natural and herbal products, Patanjali may dominate the luxury market.
Threats of Patanjali
#1. Environmental Concerns: Patanjali needs to evaluate its sourcing and packaging procedure. It must adapt to environmental sustainability because the modern world tends towards environmental sustainability.
#2. Controversies: Patanjali has been involved in controversies because of various product claims. For example, the advertisement campaign of ‘Putrajeevak Beej’ had raised a national controversy among Indians. This product guaranteed the delivery of the male child. This controversy damaged the brand’s reputation.
#3. Negative Publicity: The Nepal Department of Drug Administration declared Patanjali’s several medical items as below standard. Patanjali faced severe allegations when the microbiological test was negative.
Conclusion
So, we may conclude that Patanjali’s main strength is Baba Ramdev’s reputation. Moreover, its pricing policy enables the brand to beat its competitors. Its Ayurvedic products are natural and organic, which has appealed to a strong customer base. From a SWOT analysis of Patanjali, you will get its strengths, weaknesses, opportunities, and threats.
