Group No – 4

Kalyani Range (2020032)

Blesson Varghese (2020020)
Raj Sawant (2020060)
Sushmita Mahale (20200)
 Introduction:

Patanjali Ayurved Limited in a short span of time has become a household

name in India. It was listed 13th in the list of India’s most trusted brands (The
Brand Trust Report) as of 2018, and ranks first in FMCG category.

Patanjali Ayurveda is an Indian FMCG company.

Founded: January 2006 at Divya Pharmacy in Haridwar.
Owner: Balkrishna
Founders: Baba Ramdev & Balkrishna.
Headquarters: Haridwar, India.
Revenue: 30,000 Crores
Parent Company: Patanjali Ayurved Limited.
Sector: FMCG
Tagline: Prakriti ka Ashirwaad.
USP: Patanjali sells only Ayurveda based products in food, cosmetics and
FMCG
 Patanjali STP

Segment: People looking for healthy FMCG products.

Target Group: Middle and upper middle class families who prefer ayurvedic products.
Positioning: Patanjali offers healthier and safer products in the FMCG category.

Patanjali Competitors

1. Dabur India
2. P&G
3. Marico
4. Nestle Ltd
5. HUL (Hindustan Unilever Limited)
6. Himalaya Herbal Healthcare
 Size of the Industry:
 The Haridwar-based company, Patanjali crossed the ₹30,000-crore revenue mark in 2020-21 compared to HUL’s
revenues of ₹45,311 crore.

 Patanjali had acquired Ruchi Soya through the insolvency process in 2019 for ₹4,390 crore. Now, with sales of ₹16,318
crore, Ruchi Soya contributed 54 percent to Patanjali’s total revenue in FY 21.
 SWOT Analysis:
Patanjali Strengths:

1.Patanjali has grown at a rapid pace within a short span of time.

2. Extensive marketing has pulled people into accepting its products as a healthier and safer option.
3. Strong brand ambassador with Baba Ramdev as its face helped boost the business for Patanjali.
4. Patanjali offers new products, new style of marketing etc has changed the market dynamics.
5. The venture has generated tremendous revenues, which are comparable to existing players.
6. More than 200,000+ employees with Patanjali.
7. Excellent word of mouth marketing has helped the brand grow.

Patanjali Weaknesses:

1. Launched too many products in a short time.

2. Patanjali faced issue with advertising council of India.
3. Lack of International Cliensts, Lack of logistics, Declining Revenue.
Patanjali Opportunities:

1.Patanjali can tap overseas market as Ayurveda is increasingly getting awareness.

2. Can enter more segments in personal hygiene, FMCG etc.
3. Can also diversify in products, they can target the luxury market.

Patanjali Threats:

1. Prominent FMCG players coming up with their own variants of ayurvedic products.
2. Big players have their existing model which is sturdy, which can overcome new competition from Patanjali.
3. Political Instability.
Bargaining Power of Suppliers

 High supplier bargaining power can increase the competition in the industry and lower the profit and growth
potential for Patanjali.

 Weak supplier bargaining power can make the industry more attractive due to high profitability and growth
potential.

 When suppliers are few and demand for their offered product is high, it strengthens the suppliers’ position
against Patanjali.

Bargaining Power of Buyers

 Bargaining power of buyers indicates the pressure that customers exert on the business organisations to get
high quality products at affordable prices with excellent customer service. This force directly influences the
Patanjali.

 Strong bargaining power lowers profitability and makes the industry more competitive.

 Whereas, when buyer power is weak, it makes the industry less competitive and increase the profitability and
growth opportunities for Patanjali.
Threats of new entrants

 Entry in the industry requires substantial capital and resource investment. This force also loses the strength if
product differentiation is high and customers place high importance to the unique experience.

 The threat will be low if psychological switching cost for consumers is high and existing brands have established
a loyal customer base.

Threat of Substitute Products

 If the switching cost of the substitute product is high , then the threat of substitute will be low.

 Substitute product offers the same or even superior quality and performance as offered by Patanjali, then the
threat of substitute will be high.

Rivalry among existing firms

 The Rivalry among existing firms shows the number of competitors that give tough competition to the Patanjali.
Profitability in such industries is low as firms adopt aggressive targeting and pricing strategies against each
other.

 The Rivalry among existing firms will be high, because there are “n” number of players in the market.
PESTEL Analysis:
Political Factors–  Patanjali which was founded in 2006 at Divya Pharmacy in Haridwar is a 100% Indian brand.
Hence, it’s ideology of ‘Make in India’ goes well with that of the Indian government. Government also encourages
development of medicines other than Allopathy. With the UN declaring 21st June as International day for Yoga
because of the suggestion of Prime Minister Modi (as it is the longest day of the year) ; the international appeal of
Patanjali is bound to grow as it has Baba Ramdev as it’s founder. Patanjali’s IT venture Bharuwa Solutions is
registered as a start-up under the ‘Startup Initiative’ of the Modi government. 

Economic Factors– The company works on the principle of ‘swadeshi’ product. It also sources it’s raw materials
directly from farmers and thus eliminates margin. It also has its own farmland for raw materials which boosts their
profit. This is why the price of each product is 15 – 20% less than other competitors making it a highly demanded
company in Indian market. GST implementation has also favourably impacted the company, as it increases the
income capacity of the middle class (who are it’s main target audience).

Social Factors – Through yoga, Baba Ramdev has a huge following which has impacted the marketing of
Patanjali. Consumers are promised chemical free and swadeshi products. The whole idea of Ayurveda and yoga
captures the attention of users. Now that Yoga is internationally recognised and practiced, Patanjali has a growing
market outside India too. The company promotes herbal products which helps in preventing diabetes and
hypertension.
Technological Factors –  In 2010, Patanjali Research Foundation was started as a part of Patanjali Yogpeeth in
Hyderabad. It aims at using both Science and Ayurveda to provide rich quality products and medicines. In May
2019, the company has launched a technology start-up, Bharuwa Solutions, which boasts of five patented
technologies in supply chain management, distribution, soil testing, fertiliser calculation and backward linkage.

Environmental Factors – This is probably one of the strongest factors of the brand. With its aim of producing
chemical free products, Patanjali contributes to the environment. They focus on creating natural products with
minimum or no artificial interference.

Legal Factors – Patanjali as an alternative medicine falls under the Ministry of Ayush. Which is why when
Patanjali launched a medicine claiming it to be a cure for Covid- 19, the Ayush Ministry asked it to stop
advertising such claims without showing research and data. Various complaints have been filed against the
company including Madras High court . The Medicine Central Control Act 1970, The Drug and Cosmetic Act 1940,
The Drugs and Magic Remedies Act 1954 etc are few laws that govern Patanjali and it’s functioning.
Thank You!