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Patanjali Ayurved SWOT and PESTLE Analysis

ID : 52191453| May 2023| 21 pages

COMPANY PROFILE -Patanjali Ayurved

Business Sector :FMCG

Operating Geography :Asia, India, Global

About Patanjali Ayurved :

Patanjali Ayurved is an Indian FMCG company specializing in mineral and herbal products. Established in 2006 by Acharya Balkrishna& Baba Ramdev, Patanjali is headquartered in Haridwar, Uttarakhand in India. It is the fastest growing FMCG Company in India and has more than 200,000 employees. The company makes cosmetics, ayurvedic medicine, personal care products, and food. Balkrishna is the CEO of the company, and he owns 94% of the stock. Ramdev is the company's representative and makes strategic decisions. In May 2022, Ruchi Soya, announced the acquisitions of Patanjali Ayurved's food retail business, to accelerate its transition to a leading FMCG company.

The USP of Patanjali is that it is one of the Top 10 Most Influential Brands in India. The mission statement of Patanjali reads, “Making India an ideal place for the growth and development of Ayurveda and a prototype for the rest of the world”. Its vision statement reads, “Keeping Nationalism, Ayurved and Yog as our pillars, we are committed to create a healthier society and country. To raise the pride and glory of the world, we are geared up to serve people by bringing the blessings of nature into their lives. With sheer dedication, scientific approach, astute planning and realism, we are poised to write a new success story for the world”.

Patanjali Ayurved Revenue :


INR 9,871.87 crores - FY ending March 31st, 2021 (y-o-y growth of 9%)
INR 9,068.86 crores - FY ending March 31st, 2020

Competitive Analysis of Patanjali Ayurved

SWOT
PESTLE
The SWOT analysis for Patanjali Ayurved is presented below:
Strengths
Weaknesses
1. Influential brand ambassador in the form of yoga evangelist, Baba Ramdev, has helped boost the brand’s image
2. Brand positioned as a healthy ayurvedic alternative buoyed by strong branding as compared to competitors
3. Strong growth in a short span of time
4. Patanjali relies on excellent word of mouth buzz marketing and nationwide promotional campaigns
5. Extensively present on e-commerce platforms
6. Strong market segmentation and management
1. Over-reliance on Baba Ramdev
2. Difficulty in product consolidation
3. Penetration pricing is not a long-term sustainable strategy in order to earn profits
Opportunities
Threats
1. Tie ups with major retailers will help Patanjali be more successful
2. Diversifying to other retail segments can help Patanjali in having an all-round Indian presence in the industry
3. Patanjali has the potential to increase its Global market as Ayurveda is increasingly gaining prominence worldwide
4. High growth potential due to acquisition of Ruchi Soya
1. FCMG Competitors coming up with Ayurvedic product variants
2. Poor farming season can heavily affect Patanjali business as it is dependent on natural ingredients for its products
3. Involvement in various controversies
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Patanjali Ayurved

Strength

1. Influential brand ambassador in the form of yoga evangelist, Baba Ramdev, has helped boost the brand’s image: Baba Ramdev, a Yoga Guru has garnered immense goodwill and massive fan following over the years. Baba Ramdev has inspired a lot of people to live healthier lives through his yoga camps, and his devotees were the first Patanjali customers who not only bought the products but also promoted the company by giving it positive reviews. To avoid lining the pockets of foreign corporations, he has always urged people to purchase as many "Swadeshi" or Indian-made goods as possible. His speeches have also consistently exhibited a patriotism that has inspired people to feel a sense of love for their country. These are the strategies Patanjali has employed to successfully market their products to the general population of the country. Thus, a brand promoted by him, which is stamped to be organic, enjoys massive appeal amongst the masses. 2. Brand positioned as a healthy ayurvedic alternative buoyed by strong branding as compared to competitors: Patanjali portrays itself as a healthy ayurvedic option as compared to competitors in FMCG products category. Patanjali procures its ingredients naturally and through Farming, thus providing very organic products to customers. Therefore, with the growing rise of Ayurveda, the Ayurveda products have also benefitted strongly. Also, every aspect of Patanjali products demonstrates that they are natural and thus superior to their competitors. The brand has cleverly worked on each and every aspect of their brand in order to stand out among competitors. Consider the brand name and logo: the name 'Patanjali' is derived from the name of a 2nd-century scholar known as the Father of Yoga. Not only that, but their logo depicts their name with a green and saffron line below, instilling patriotism in the people. The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

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References used in Patanjali Ayurved SWOT & PESTLE Analysis Report

1. Annual Report - http://patanjaliayurved.org/wp-content/uploads/2021/11/Annual-Report_Patanjali-Ayurved-Limited_2020-21.pdf
2. Patanjali Ayurved - https://en.wikipedia.org/wiki/Patanjali_Ayurved
3. What Made Patanjali The Indian FMCG King? - https://walnutfolks.com/patanjali-case-study/
4. Baba Online: Patanjali Ties Up With E-Commerce Platforms To Deliver Products Across The Country - https://swarajyamag.com/insta/baba-online-patanjali-ties-up-with-e-commerce-platforms-to-deliver-products-across-the-country
5. Marketing mix of Patanjali – Patanjali Marketing mix - https://www.marketing91.com/marketing-mix-patanjali/
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