Patanjali Ayurveda Limited (PAL) is an Indian Fast-moving consumer goods (FMCG) company which is established on the principle of promoting Ayurveda and products which are produced with the blend of ancient wisdom of Ayurveda and the modern technology. The company was founded in 2006 by Swami Ramdev along with Acharya Balkrishna who owns 98.6% of the company. Starting with ayurvedic medicines, PAL now deals in a wide variety of consumer goods like cosmetics, food items, home care, etc. It is now the most trusted FMCG brand of India. It has been embraced with open arms by consumers due to its “Swadeshi” model.
Within a decade of its incorporation, PAL has made significant growth in the FMCG market and gained good amounts of revenue. It posted a revenue of 8329 crores in the FY19. There are several aspects which contribute to this humongous growth. They are listed as follows:
1. Face of Patanjali– Swami Ramdev is a well-known personality in the world of Yoga and has had huge following from people. He is known to be a promoter of a healthy lifestyle in people through his speeches and has always propagated ancient Ayurvedic methods for the same. He is also known to shun MNCs for disrupting the health of Indian people. As a result of this saintly image of Baba Ramdev, Patanjali made him the brand endorser. This gained the attention of a lot of people looking for an Indian alternative to MNCs.
2. Branding– Patanjali is known for heavily advertising its products. Every Patanjali product is known to associate itself with the idea of natural herbs and Ayurveda, something which is widely respected by the Indian culture. The name of the company is also after Saint Patanjali, the Father of Yoga.
3. Market Research– The company has an excellent record in market research. As a result of the same, it is known to deliver products which the consumers are inclined towards or are finding an alternative to. Things like Aloe Vera Juice promote healthy lifestyle in people and is a better alternative than other fruit juices for health-conscious individuals. This research has made company overtake large corporations in the FMCG sector.
Nationalism is sparkling within Indian consumers and they have been known to prefer goods that reflect Indian values and are manufactured within India. Patanjali encashed on that very sentiment of people and made their products ‘Swadeshi’ centric. The idea of prioritizing Indian goods is not new and dates back to the call of Mahatma Gandhi to use Indian made goods during the colonial era.
There is air tight competition in the FMCG market and for a company to succeed and climb the said ladder, it must have a unique value proposition. For Patanjali ‘Swadeshi’ was that value proposition. When foreign MNCs are selling the same products, Patanjali used this business card to manipulate people into buying Patanjali goods. Indian consumers were also fascinated by the idea that a localised firm is producing the products they need. Hence, people started buying products from Patanjali, a company that sold the idea of keeping people’s money in India itself and growing the economy. Moreover, Patanjali used Baba Ramdev while advertising their products. People who are inspired by Baba Ramdev because he is known to promote Indian culture and teaches things for betterment of people. Instead of celebrities, Baba Ramdev was a better way to reach out to people as people associated him being a promulgater of Indian Culture of ‘Swadeshi’.
Due to its unique nature, Patanjali has been a part of several controversies and has faced immense backlash owing to some mistakes. Listed as follows are the controversies-
1. Shady Investment– Due to its rampant growth and influx of investments, people have often raised suspicion over the source of these investments. Even though the MD claims that the vast amount of investment is due to charity and cheap bank loans, but what still fuels the suspicion is the fact that Patanjali was able to procure land from MP and Maharashtra Govt. at very cheap prices as compared to the original value.
2. Unfit products– Many Patanjali products have been in radar of authorities for being unfit for consumption. Amla juice , instant noodles, etc.
3. Covid-19 Drug Development– Recently, Patanjali grabbed everyone’s attention when It announced that it had created a cure for Covid-19 names ‘Coronil’. It advertised it as being a pure Ayurvedic cure with 100% cure results in at max 10 days. Later, after speculations, Patanjali withdrew its statement of it being a cure and is now selling the same product as an immunity booster.
Swot analysis is an analysis of Strengths, Weaknesses, Opportunities and Threats of a company. Patanjali’s SWOT is captured in this image below:
FUTURE PRSOPECTS AND AATMANIRBHAR BHARAT
Due to its distinct identity and applaudable marketing strategies, Patanjali has huge potential to lead the FMCG market in India. Its ambition is to touch the mark of 40000 crore turnover in the next FY21. It might be possible but for the same Patanjali needs to improvise its planning and take over massive FMCG giants like Hindustan Unilever. They need to adopt new marketing strategies. But there is a huge opportunity for Patanjali to take a lead in the market and that is newly launched ‘Atmanirbhar Bharat’ campaign.
During the covid-19 pandemic, the PM announced this campaign which aims on empowering national industries and localized goods which can reduce the nation’s dependence on imports. This idea is completely in tandem with Patanjali’s marketing idea which is selling localised products. People are looking forward to increase consumption of indigenous products as a part of this Atmanirbhar Bharat campaign so Patanjali should speed up its advertising in the same name and increase their selling channel to reach out to more people.