SWOT Analysis of Patanjali Ayurved [Step by Step Detailed SWOT]

SWOT Analysis of Patanjali Ayurved focuses on (S) Strengths, (W) Weakness, (O) Opportunities, and (T) Threats. SWOT Analysis Internal Factors – Strengths and Weaknesses and External Factors – Opportunities and Threats are discussed in this article.

SWOT Analysis is a proven management tool that helps organizations such as Patanjali Ayurved to assess the market of Patanjali Products and its success against rival companies. Patanjali has been one of the leading Ayurvedic products and Food products brands for many years.

Patanjali Ayurved was founded by Baba Ramdev and Acharya Balkrishna. Acharya Balkrishna. Unbelievably, Patanjali become popular in a few years, because of Baba Ramdev’s large-scale followers. Patanjali has captured a massive share in the Indian Ayurveda and Food market. Patanjali has total revenue of Rs.9500 Crores. Net Income of Patanjali is Rs. 590 Crores and Total Assets are Rs. 4345 Crores. Patanjali manufactures products in Food and Personal Care categories. The company produces over 2,500 products comprising 45 types of cosmetics and 30 kinds of food products.

swot analysis of patanjali

However, according to Patanjali, many of Patanjali’s products are manufactured from ayurvedic and natural ingredients. Patanjali has launched products for beauty and for babies. Patanjali Ayurvedic manufacturing plant has over 300 drugs, from a mild cold to chronic paralysis, for treating a variety of illnesses and diseases inside the body. Patanjali declared it would penetrate the apparel manufacturing market. The apparel business of Patanjali is reported to produce Kurta Payjama & casual clothes like jeans.

Patanjali announced on 5 November 2016 that it will build a new production facility in Balipara, Assam, Patanjali Herbal, and Mega Food Park by investing 1,200 crores ( US$ 170 million) with a production potential of 10 lakh tons of products per year. Patanjali now has over 50 production units in all of IndiabooPatanjali Ayurved will be offering its goods about 4,700 retail outlets. Patanjali is now expected to open stores at stations and airports. Patanjali Ayurveda and Future Group have joined hands and now Patanjali Products are available for direct sales at future group outlets.

Patanjali products are also available in urban commercial stores like Reliance retail, Hyper City, and Star Bazaar and online shopping sites. Patanjali Ayurved has also begun its FMCG expansion across the country in the form of distribution outlets and plans broader growth in overseas sales. Patanjali Dant Kanti, Patanjali Ghee, Patanjali Chyawanprash, Patanjali Kesh Kanti, Patanjali Honey, etc., are some of the famous Patanjali products.

PATANJALI SWOT ANALYSIS

swot analysis of patanjali 1

Page Contents

Strengths in the SWOT Analysis of Patanjali Ayurved – Patanjali Ayurved SWOT Analysis

  • The fame of Baba Ramdev: Baba Ramdev and his fame can be credited with Patanjali’s exponential growth. It would have been unlikely for a newly established FMCG in India to demonstrate the kind of growth Patanjali has seen in such a short span of time. Yet Baba Ramdev’s fan base and goodwill ensured that Patanjali would rise steadily and become a regular name in the households of the Indians.
  • Clear patriotism: Patanjali took advantage of India’s card and has also promoted it as a brand designed for Indians in India. Many of India’s labels are foreign signs. Patanjali deliberately tells the Indians to purchase goods produced in India to support the country’s economy. Besides this, Patanjali ‘s excellent growth has improved the consistency of the goods.
  • Ayurveda and herbal: The products sold by Patanjali are made from natural ingredients of Ayurveda and Herbal. The Swadeshi goods have also played a major role in Patanjali ‘s growth. India has never been poor in plants or trees and in our thick forests, we get a lot of naturally produced medicines. As a result, India is one of Ayurveda ‘s founders.
  • Penetration Pricing: Patanjali goods are typically sold at 20-30% cheaper than competing brands, making it difficult for rival brands to compete on-demand with Patanjali. The organization explicitly buys the goods from the producers and thus falls on middlemen. Thus, they can manufacture at lower prices.
  • Wide channels of distribution: Patanjali goods are distributed by medical centers like Patanjali Chikitsalayas and Patanjali Arogya Kendras, non-medical centers like Swadeshi Kendras, etc. Patanjali now has 15,000 branch offices throughout India. Patanjali was traditionally criticized for its marketing approach, but it has now been strengthened by selling it through general retail outlets and has recently joined up for delivery through Modern retail with the Future company. Now, they have turned their vulnerability into a weapon.
  • E-commerce advantage: Patanjali markets really well across the e-commerce companies and has a number of food bundles that it offers online.
  • Word-of-Mouth Promotion: A large proportion of the spending goes into advertising and promotions for a new product in the consumer goods sector. Patanjali originally adopted a word-of-mouth marketing approach, yet invested little on publicity yet advertisement. Patanjali relied on its consumer’s brand loyalty.
  • Continuing with the trends: owned by Babas and Swamis, Patanjali was meant to be a traditional Indian firm, but it shocked everybody by bringing in numerous changes required to suit their contemporary products. If it is an advertisement that employs celebrities as Brand ambassadors, joining new retail or using e-commerce as a forum. Patanjali has also realized the promise of and is also investing in, new technology and social media channels.
Must Read  SWOT Analysis of Punjab National Bank - PNB SWOT Analysis

Weaknesses in the SWOT Analysis of Patanjali Ayurved – Patanjali Ayurved SWOT Analysis

  • Over-dependence on Ramdev: Patanjali remains synonymous with Baba Ramdev for many of its customers and hence any Baba Ramdev acts would have consequences for the company itself.
  • The failure of the political affiliations of Baba Ramdev can be a major risk to Baba Ramdev’s Patanjali Ayurveda.
  • A limited number of production units: for the fiscal year 2020-21 Patanjali set itself an ambitious target of INR 15,000 crores. To do that, Patanjali will need to build manufacturing units in different parts of the world that would entail heavy investment. It will also need to switch from word-of-mouth to national advertising efforts.
  • Penetration pricing isn’t long-term: if Patanjali decides to extend and then it’s a huge obstacle for Patanjali, it would have to compromise on its pricing strategy. It can not sell on a very long-term basis at such low prices. Any corporation wants profits to generate more revenue, and therefore gain more money. This is a cycle. So if Patanjali doesn’t earn a lot then he can’t invest a lot and can’t grow.
  • Dependence on the product: Patanjali has many products but the portion of its major sales is because of toothpaste and shampoo. To achieve its optimistic target, they need to move the other goods further.
  • The low margin for distributors: Patanjali offers distributors and retailers much lower margins compared to other consumer goods companies, as it plays a game of volume and not margins. That is why it is a demand run business.
  • Lack of experienced management graduates: Patanjali doesn’t have a wide pool of management graduates and thinks tanks that can be a concern if they are aiming for growth around the country or internationally.

Opportunity in the SWOT Analysis of Patanjali Ayurved – Patanjali Ayurved SWOT Analysis

  • Growing organic sector: Patanjali succeeded in raising awareness of the benefits of using herbal and natural goods that built a demand for themselves. The knowledge has grown, and demand is continuously rising. • Extend Rural: With Patanjali’s range of goods, it has tremendous potential in the rural sector, and will try to expand its operations in India’s large rural market.
  • Going Global: Patanjali has a great opportunity to expand globally and can initially look to the Middle East and African nation. Numerous other businesses like Dabur have also expanded internationally and flourished. • Tie ups: Patanjali has been effectively connected to the Future community and will continue to communicate with new retail chains and boost its sales in e-commerce.
  • Diversify Product Range: Patanjali can diversify its product range based on the need of customers.
Must Read  SWOT Analysis of Pidilite Industries Limited [Explained in Detail]

Threats in the SWOT Analysis of Patanjali Ayurved – Patanjali Ayurved SWOT Analysis

  • Increasing Competition: FMCG giants like Marico, HUL, etc., and new entrants like Sri Ayurveda are now joining the organic market despite Patanjali ‘s recognition that raises competition in the sector.
  • Negative Word-of-Mouth: Any negative word-of-mouth that is generated on social media platforms can influence its market place.
  • Poor reaping can affect business: Patanjali depends heavily on natural ingredients and products and therefore poor agricultural reaping can affect sales.
  • Price war: A price war is good for customers but bad for companies. The longer the price battle, the more impact it would have on the company. Companies such as HUL, Colgate, and others have long been at the peak. They have deep pockets and will react to Patanjali naturally. Such a price war would have a dramatic impact on the competitiveness of Patanjali, especially because the company already sells at very low margins.

Conclusion

Conclusion Patanjali’s SWOT analysis reveals the business is well on its way to further growth. Simply, the organization must control its correspondence and abstain from something that impacts Baba Ramdev directly. This wants to place more faith in itself in targeting the worldwide markets and engaging with more customers who will be involved in its name and products.

 

If you like This Article Please Like our Facebook Page PROJECTS4MBA

Cite This Work

Referencing Style to cite this article:

Projects4MBA (October 29, 2020) SWOT Analysis of Patanjali Ayurved [Step by Step Detailed SWOT]. Retrieved from https://www.projects4mba.com/swot-analysis-of-patanjali-ayurved/2300/.
"SWOT Analysis of Patanjali Ayurved [Step by Step Detailed SWOT]." Projects4MBA - October 29, 2020, https://www.projects4mba.com/swot-analysis-of-patanjali-ayurved/2300/
Projects4MBA July 13, 2020 SWOT Analysis of Patanjali Ayurved [Step by Step Detailed SWOT]., viewed October 29, 2020,<https://www.projects4mba.com/swot-analysis-of-patanjali-ayurved/2300/>
Projects4MBA - SWOT Analysis of Patanjali Ayurved [Step by Step Detailed SWOT]. [Internet]. [Accessed October 29, 2020]. Available from: https://www.projects4mba.com/swot-analysis-of-patanjali-ayurved/2300/
"SWOT Analysis of Patanjali Ayurved [Step by Step Detailed SWOT]." Projects4MBA - Accessed October 29, 2020. https://www.projects4mba.com/swot-analysis-of-patanjali-ayurved/2300/
"SWOT Analysis of Patanjali Ayurved [Step by Step Detailed SWOT]." Projects4MBA [Online]. Available: https://www.projects4mba.com/swot-analysis-of-patanjali-ayurved/2300/. [Accessed: October 29, 2020]
Recommended
SWOT Analysis of Lupin Limited focuses on (S) Strengths, (W)…