SWOT Analysis of Patanjali | Patanjali SWOT Analysis

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SWOT Analysis of Patanjali | Patanjali SWOT Analysis

 

Patanjali is considered a leading consumer goods company in India. They started from a small pharmacy, but now they offer a huge variety of consumer goods to customers. Patanjali is the fastest-growing company in India. They offer plenty of products to customers like apparel, footwear, noodles, ghee, biscuits, and many more. They have 15K fully functional stores, 5K distributor, and 100 mega-marts. The founders of Patanjali are Baba Ramdev and Acharya Balkrishna. The current CEO of this company is Acharya Balkrishna. In Patanjali SWOT analysis, we will find out Patanjali’s strengths, weaknesses, opportunities, and threats. In this way, you can efficiently understand the working of Patanjali. Are you ready? Let’s start.

 

Company Name:  Patanjali

Founders:  Ramdev Balkrishna

Year founded:  January 2006

Headquarters:  Haridwar, Uttarakhand, India

CEO:   Balkrishna

Industry:  Consumer good, Healthcare

Type: Private

Area Served: India and around, Middle East

Employees (2019):

Annual Revenue (FY2019-2020):  ₹9,022.71 crore

Profit | Net income (FY2019-2020): ₹ 424.72 crore

 

Products: Foods, Ayurvedic medicine, beverages, personal care products, Fashion, cleaning agents

 

SWOT Analysis of Patanjali | Patanjali SWOT Analysis

Strengths of Patanjali:

 

• Founding Father:

Baba Ramdev and Acharya Balkrishna are the founding fathers of Patanjali. The exponential growth of Patanjali is due to Baba Ramdev because he is a spiritual person that’s why people love to purchase his products. Baba Ramdev used this popularity to sell his products. Due to his religious and spiritual qualities, Baba Ramdev managed to gather a strong customer base. The magic behind the success of Patanjali is its founder Baba Ramdev.

• Pricing Policies:

The flexible pricing policy of Patanjali is the biggest strength. They successfully managed to gather lower and middle-class users due to their effective prices of products. They offer almost 20 to 30 percent discount on its products that give them a certain edge over its rivals. These types of budget-friendly and user-friendly products successfully attract customers and this is the major strength of Patanjali.

• Innovative Products:

Patanjali continuously introduced a variety of new products and offerings. They recently started selling cow milk, curd, cheese, and other dairy-related products. They produced 4 lakh liters of milk on its launch. As the use of these things is very common in every household, so it’s a big success. They also provide frozen vegetables and planning to launch their own drinking water named Divya Jal. With this uniqueness and innovation, they are rising day by day.

• Herbal and Ayurveda:

Patanjali used herbal and Ayurveda-based products very intelligently. They offer these products by highlighting their benefits. Due to this reason, their products are very famous in every region of India. The use of organic products makes the company highly competitive and gives a specific edge over its competitors.

• Effective Supply Chain Channels:

Patanjali has nearly 15K stores all over India. This shows the strong supply chain network of the company. Their products are also selling in medical stores and other non-medical stores. So, people can easily grab their products from anywhere easily. That’s why people trust them and love to use their products.

• Effective Marketing:

The word of mouth marketing has become very beneficial for the company. They also endorse their products with Baba Ramdev Yoga camp. This kind of marketing strategy really attracts the customers because in this marketing they also tell the benefits and vantages of herbal and Ayurveda. They also invest money in other promotional campaigns to promote their products. This is the reason that they are making a good profit every year.

• Online Shopping:

Patanjali has also a strong online presence and they also earn good profit from this channel. With a strong online presence, people can easily find their favorite products and also make purchases. This is also a major strength of Patanjali.

 

SWOT Analysis of Patanjali | Patanjali SWOT Analysis

Weaknesses of Patanjali:

 

• Dependence on Baba Ramdev:

As we know, the company heavily depends on Baba Ramdev. Even their marketing strategy is also depending on Baba Ramdev’s yoga sessions. As Baba Ramdev is also in and out of many controversies and he recently apologizes to the Assam’s people for harsh and intensive remarks from Patanjali officials. But this harsh and intensive comment results in protests and strikes. That’s why Baba Ramdev apologizes to the people of Assam. These kinds of controversies and hated remarks can tarnish the company’s reputation.

• Present Pricing Policy:

The current pricing strategy of Patanjali is slightly unaffordable for lower and middle-class people. They should revise their pricing policy so that people can easily purchase their products. The increase in prices is due to the rising costs of raw materials, labor, and transportation.

• Excessive Offerings:

Even though Patanjali offers a wide variety of products, but some products are very useless and not so popular among buyers. Some major products like toothpaste and shampoos are generating major revenue for Patanjali. This is very alarming for Patanjali and they should focus on this matter.

• Lesser Margins for Distributor:

The company is only focusing on the volume of the products, not on margins. This thing can offend the distributors. It is important to create a balance on both things so that everyone can make profits.

• Limited Global Presence:

Patanjali has no international presence so far. Even though the supporter of Baba Ramdev is mainly from outside of India, but the company has restricted its presence. This shows the weakness of Patanjali.

 

SWOT Analysis of Patanjali | Patanjali SWOT Analysis

Opportunities of Patanjali:

 

• Organic and Herbal Products:

As the number of health-conscious people is increasing day by day, it is a great opportunity for Patanjali to market its products in order to attract more people. Even though they are making good revenue, but they can earn more if they offer more organic and natural products.

• Focus on Global Markets:

As we know Patanjali is only restricted to India, but they can expand their profits and market share by entering the global market. They can target Africa and the Middle East in order to increase their profits and revenues. They should learn from other companies such as Dabur, Amul, Haldiram, and so on.

• Food Business:

Patanjali should focus on the food business and the restaurant business. They can offer healthy and organic food in their restaurants. In this way, they can diversify their portfolio and generate bigger profits. With this business, they can create a stronger image.

• Rural Growth:

Patanjali has a very low presence in rural areas of India. They can target these rural areas and earn more revenues. As these people love to use natural products, so there is a maximum chance that they will also love the organic products of Patanjali.

 

SWOT Analysis of Patanjali | Patanjali SWOT Analysis

Threats of Patanjali:

 

• Controversies:

Recently, Patanjali faced controversy regarding the product that guaranteed the birth of a male child that purchases it. This cause a huge controversy and some people protests to ban this product. This thing has damaged the company’s name and eroded the trust of customers.

• Negative Advertising:

Some products of Patanjali are considered as sub-standard as they don’t pass the microbial test. This thing has tarnished the company’s image and reputation in the eyes of its users. Due to this reason, they also face a decline in their profits.

• Fierce Competition:

Many giant companies such as Dabur, HUL, and Marco are giving a tough time the Patanjali. There are several small companies that can also threaten the company’s profitability and market share due to their affordable prices. These things can threaten the company’s image and reputation as well.

• Poor Harvest

Harvesting of products is heavily dependent on weather and monsoon season. But with the change in climate, farmers are not getting satisfying yield. This thing also affects the company’s manufacturing and production of products. It is really important for Patanjali to create a backup plan.

 

SWOT Analysis of Patanjali | Patanjali SWOT Analysis

Conclusion:

There is no doubt that the company is on the right track to success. But they are lacking in many sectors such as they don’t have a global presence. Even though they are doing well in India, but they can increase growth by expanding globally. The world is also moving to sustainable and organic products, so Patanjali has the potential to fulfill people’s requirements. They can diversify their offerings and market share with these steps.

 

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