Strategies of Patanjali, BCG Matrix of Patanjali, Strategic Management Project of Patanjali of Amity University, Competitor Analysis of Patanjali

1. Strategic Analysis of
PATANJALI AYURVEDA
Submitted by:
Devansh Aggarwal
A0101916222
MBA(Gen)
Section – D
Roll No. 38

2. ABOUT PATANJALI:
Baba Ramdev established the Patanjali Ayurveda Limited in 2006 along with Acharya
Balakrishna with the objective of establishing science of Ayurveda in accordance and
coordination with the latest technology and ancient wisdom.
Patanjali Ayurveda Limited is an Indian FMCG company. Manufacturing units and headquarters
are located in the industrial area of Haridwar while the registered office is located in Delhi. The
company manufactures Mineral and Herbal products. It also has manufacturing units
in Nepal under the trademark Nepal Gramudhyog and imports majority of herbs
in India from Himalayas of Nepal.
Patanjali Food and flavourer Park at Haridwar is that the main production facility operated by
Patanjali Ayurveda. the corporate incorporates a production capability of ₹350 billion (US$5.5
billion) and is within the method of increasing to a capability of ₹600 billion (US$9.4 billion)
through its new production units at many places, together with Noida, Nagpur, and Indore. the
corporate plans to ascertain more units in Asian country and in Asian nation. In 2016, the
Patanjali Food and Herbal Park was given a full-time security cover of 35-Armed Central
Industrial Security Force (CISF) commandos. The park will be the eighth private institute in
India to be guarded by CISF paramilitary forces. Baba Ramdev is himself a "Z" category
protected of central paramilitary forces.
When we talk about the revenue generation of Patanjali Ayurveda, we can explain that with this
chart-
Year
Revenues
(In Rs. Crore)
2009-10 163
2010-11 317
2011-12 446
2012-13 850
2013-14 1200
2014-15 2000
2015-16 5000
2016- 17 10561
Through above figures we can easily analyze the growth of Patanjali in last 7-8 years of working.
Even being new in the FMCG sector it has become one of the best competitor for other
companies like HUL and ITC. It is because of the strategies designed by the management of
Patanjali Ayurveda they are basically focusing on the concept of Make in India campaign

3. through which they are telling people that they should products made in India and we
manufacture products which are herbal and there is no use of chemicals in our products.
Future Group which has tied up with Patanjali sells about ₹30 crore (US$4.7 million) worth of
Patanjali products every month.
Patanjali is indulge in all the sectors of FMCG the products are famous because of low cost and
good quality. Patanjali in few years has captured the market in such a way that it become one of
the biggest competition for FMCG sector companies like Nestle, ITC, HUL etc. got affected
after the introduction of products in FMCG sector.
MISSION STATEMENT
“Keeping Nationalism, Ayurveda and Yoga as our pillars(8)(6), 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 sheerdedication,
scientific approach, astute planning and realism, we are poised to write a new success story
for the world”(5).
Most practitioners and academicians of strategic management feel that an effective statement
should include nine components. Because a mission statement is often the most visible and public
part of the strategic-management process, it is important that it includes the nine characteristics as
summarized.
1. Customers—Who are the firm’s customers?
2. Products or services—What are the firm’s major products or services?
3. Markets—Geographically, where does the firm compete?
4. Technology—Is the firm technologically current?
5. Concern for survival, growth, and profitability—Is the firm committed to growth and
financial soundness?
6. Philosophy—What are the basic beliefs, values, aspirations, and ethical priorities of the
firm?
7. Self-concept—What is the firm’s distinctive competence or major competitive
advantage?
8. Concern for public image—Is the firm responsive to social, community, and
environmental concerns?
9. Concern for employees—Are employees a valuable asset of the firm?
So, from the above characteristics we can easily state that Patanjali Ayurveda is focusing on
customers and how to capture the market through Make in India concept which makes it more
connected to Indian customers. The products and services provided by Patanjali are really good as

4. they focus more on quality. They are excelling in technology which is helping them to grow more
and more everyday which help them in improving their public image.
VISSION STATEMENT:
“Making India an ideal place for the growth and development of Ayurveda and a prototype
for the rest of the world.”
Various elements of Patanjali Ayurveda Vision Statements are-
1. Customer-To strive relentlessly to exceed the expectations of our customers, both internal
and external. Our customers prefer us. Make in India is the concept which helping Patanjali
to capture a large part of market.
2. People-To believe our success is driven by the commitment and excellence of our people. To
encourage individual initiative by creating opportunities for our people to learn and grow. To
respect the individual rights and dignity of all people.
3. Technology- Technology helps in research and development of our products which help us
in introducing new products according to market demand.
Our Goals:
 To provide customer good quality products at lower rates.
 To capture large market through tie ups and different market strategies like simple
advertising through TV, hoardings, sponsorships etc.
 To contribute some part towards Make in India Campaign started by Narendar
Modi.
 Main aim of Patanjali is to run Swadeshi Movement in India where they are
focusing nationality and gaining market through that.
Our Values:
Integrity: We value the trust our customers, business partners and other stakeholders have
placed in us. By being truthful, consistent and honest in everything we do, we honor this trust.
Accountability: We are accountable both internally to our team and externally to our
stakeholders. Systems and processes help us ensure accountability at every step.
Fairness: We remain firmly committed to our rules and are guided by our ethics. This helps us
make impartial decisions and treat all parties fairly.
Transparency: Being open in our dealings is integral to our work ethic. Whether it is interacting
with farmers who grow our herbs, vendors who supply us materials or customers who buy our
products, we believe that transparency helps us make partners for life.

5. Innovation: Bringing ideas out of the lab and into the real world is the kind of innovation we
pursue. It inspires us to discover new medicines and develop new products that go onto make life
healthier and happier for people.
ORGANISATIONAL STRUCTURE (Hierarchy) of Patanjali Ayurveda

6. EXTERNAL ANALYSIS
 PESTLE Analysis:
There are many factors in the macro- environment that will affect the decisions of the managers
of any organization. Tax changes, new laws, trade barriers, demographic change and government
policy changes are all examples of macro level change. To help analyze these factor managers
can categorize them using the PESTEL model. The classification distinguishes between –
political factors, economic factors, social factors, technological factors, environmental factors
and legal factors.
PoliticalFactors
Nowadays there is an increase in pressure and political focus on healthcare authorities in India.
This means that government will be looking for savings across the board.
Some of the major challenges which Patanjali could face are:
- Which services would be cut?
- What will be the impact on Patanjali Ayurveda pricing policy?
- Will the same selection of FMCG product will be available to everyone?
- To what extent these factors of government intervention will impact the operations of the
company.
- Is the product completely natural?
- Political parties have eye on the working of Patanjali Ayurveda because it is now a
competition for every company.
Factors which are currently affecting the decisions of Patanjali Ayurveda are: environmental
laws and health and safety laws which are accommodated to protect the environment threats and
to preach ethical code of conduct. Patanjali Ayurveda trying to come up with the innovation in
the market with several types of products and are now giants in the FMCG sector.
Due to increase in market share of Patanjali the political parties have eye on the company so that
they can see if there is any false representation or money laundering activities going in the
organization.
Economic Factors
The reduction in client income can have an effect on those countries victimization health
care models notably wherever half payment is needed. These economic pressures area
unit seeing associate redoubled growth in strategic shopping for teams UN agency area
unit forcing down costs.
Increased pressure from shareholders has caused a consolidation of the trade which can lead to a
lot of mergers and acquisition in coming back years. It includes interest rates, taxation
changes, economic process, inflation and exchange rate
Patanjali is economically strong and have a great standing in the eye of law, it has drastic
increase in its sales to more than 3000 crore which is because of mergers and tie ups with
different retail chains.

7. Patanjali Ayurveda is earning huge revenues when we see it on the basis of economic factors and
pricing is really low through which they are easily able to take the market share of other FMCG
companies.
SocialFactors
The increasing aging population offers a range of opportunities and threats to the healthcare and
FMCG industry. There is also the problem of the increasing obesity amongst the population and
it is associated with health risks.
Need to look good and have clear skin and appealing persona is an influence from west and
modernization.
Consumers are becoming more aware and their expectations and demand for healthcare products
have gradually increased.
The FMCG products are products which are used on regular basis can be said as for day to day
needs like washing powder, toothpaste etc.
Changes in social trends can impact the demand for Patanjali products as going for herbal
solutions is the new fad.
Literacy rate, customs, values, beliefs, lifestyle, demographic features are part of social
challenges.
Factors like social media for Healthcare, Customized Treatments, urge to buy organic products,
awareness about eco-friendly solutions etc. if tamed and regulated can provide competitive
advantage to Patanjali.
Patanjali is getting more share through its Make in India and smart advertising unlike other
companies Patanjali is not hiring costly Bollywood stars to run their ad campaign they are
focusing more towards simplicity through this they easily capturing the attention of customers.
LegalFactors
The healthcare and FMCG industry faces many regulatory and legislative restrictions. The
evolution of the internet is also stretching the legislative boundaries with customers demanding
for rights in both healthcare and FMCG products and services.
- These are related to the legal environment in which the company operates. In recent years
in India there have been many significant legal changes that have affected the operations.
- The introduction of discrimination and disability legislation, an increase in minimum
wages and greater requirements for firms to recycle are examples of relatively recent
laws that has affected company’s actions. These factors have also affected company’s
costs and demand.
- In personal care industry customer regulation protection has become an important factor
which impacts the image of the company. This regulation includes the rights to maintain
authenticity regarding purchases via internet or phone which consists of explanation
about the product, services, product cost and delivery and also order cancellation.
- According to government norms they need to have several types of licenses to run a
company like Patanjali because FMCG market is a huge market and have competition at
very high level.
- Even GST also affected the production and costing of the products.

8. Legal factors affect all the company as the rates are high because of new legal reforms and due to
legal regulations company have to maintain certain standards in production of their goods.
Therefore, Patanjali should make sure that the products it sells in market are customer friendly,
safe and are not harmful to both humans and animals.
Environmental Factors
1. Planning permissions
2. Waste disposal
3. Noise controls
4. Environmental pressure groups
There is a growing environmental agenda and key stakeholder’s area unit currently changing
into additional awake to the requirement for businesses to be additional influential. Therefore,
company like Patanjali got to see however its business and selling set up link in with the
environmental problems. there's additionally a chance to include it at
intervals their company social responsibility programs.
In aid section temperature change is a very important issue that impacts the profitableness.
Environmental issue forever affects the shopping for behavior clients of consumers of
shoppers} we'd like to strategize in such the simplest way that customer purchase doesn’t get
affected thanks to climatically modification.
There area unit additional setting friendly product offered by firms however after
we quote health, Patanjali product area unit far better than different firms as
they bank that there's no use of chemicals in their product.

9. Porter’s Five Forces
Porter’s five forces model indicates the competitive balance of power in the industry. It is a
framework for industry analysis and business strategy. These 5 models are indicating the
strategies used the company to increase their market share.
These 5 forces help us to strategize according to the market and understand the market of the
product.
5 Forces in Healthcare and FMCG industry:
Competitive Rivalry- HIGH
Each company is spending a large amount of funds on research and development, so that it can
be the first to innovate and discover a new drug or solution. The first company that develops a
natural product gets the patent to make the patent for period of certain years and hence eliminates
the competition.
Rivalry among competitors is very severe. There are limited customers because of the high
saturation of the industry. Market leaders use all sort of tactics and actions ranging from

10. intensive segmented advertisements to edge to edge price cutting. Hence the intensity of rivalry
is exceptionally high.
But due to Indian touch a larger part goes to Patanjali Ayurveda and because of this Patanjali
able to cover larger part of the market in less time.
Threat of Substitutes- HIGH
In FMCG industry and health products profits are generally affected by substitutes, when the
patent of drug expires. When this happen, all companies get the opportunity to make the drug
and this reduces the monopoly and profits which are previously enjoyed by only one company.
In personal care industry customers have complex and extended needs and lots of substitute
products available to cater those needs. Availability of choices provides sufficient space and time
for new product development that can replace existing goods. Therefore, threat from substitute
goods is very high.
FMCG is an industry in which its difficult to enter and exit in the market even a small trader
cannot be a part of it because of heavy competition and the market captured by big players of
industry.
Threat of new entrants - MODERATE
In healthcare industry threat of new entrants is moderate because companies need initial capital
to invest in research and development of new drugs and after developing the drug they have to
deal with the government policies for its authenticity and exclusiveness.
In FMCG sector there is minimum threat of new entrants as its difficult to get approvals legally
plus due to heavy competition companies don’t want to enter in the market. The competition is
really high as there are so many companies that are in FMCG industry and have good market
share in that company.
Bargaining Powerof Buyers – LOW in healthcare, HIGH in personalcare
and HIGH in FMCG
In healthcare, the bargaining power of buyers is very limited. The tendency to fall sick is an
uncontrollable factor and diseases are quite unpredictable. People seek assistance from
pharmaceutical companies, hospitals and insurance companies and in return expect best quality
of care.
In personal care industry bargaining power of consumers is very high. This is because in
personal care product industry the switching cost of most of the goods is very low and there is no
threat of buying one product over other.

11. In FMCG industry the bargaining power is high due to heavy competition like when Patanjali
introduced Honey it affected the market of Dabor honey due to which Dabor company planned
their Marketing in such a way that their market is not affected by just one product.
Bargaining Powerof Suppliers – High
In FMCG industry the bargaining power varies that is when a company launches a new
PRODUCT in the market it needs Retail Stores and Wholesalers to purchase and demand
Products so as to make profits.
Whereas in personal care industry the bargaining power of suppliers of raw materials and
intermediate goods is not high. A variety of substitutes are easily available in market. There is no
monopoly for supplier because they are competing among themselves.
Suppliers bargaining power affects with the availability of Raw material in the market. Like
when there are so many companies providing same product automatically bargaining with
suppliers increases.
External Factor Evaluation Matrix(EFE)
EFE matrix is a strategic management tool used for assessment of current business conditions. It
visualizes and prioritizes the opportunities and threats that a business is facing. The EFE matrix
is concerned solely with external factors which are social, economic, political, legal, and other
external forces.
This matrix includes external factors by which company is affected.
The weights are assigned from 0 to 1 based on the degree of importance each factor holds.
EFE MATRIX
S.no. Key external factors Weight Rating Weighted score
OPPORTUNITIES
1. Increasing healthcare and
FMCG penetration in India.
0.10 3 0.30
2. Increase in standard of living
in India.
0.06 3 0.18
3. High purchasing power 0.05 4 0.2
4. Innovative products 0.03 2 0.06
5. Technological advancements 0.03 2 0.06
6. Untapped rural market 0.05 3 0.15
7. New investment opportunities 0.05 2 0.1

12. In health care and personal care there are different opportunities and threats which Patanjali
should be aware of in the above matrix each one of them is valued in context with Indian market.
Patanjali’s FMCG sector
Interpretation from the matrix:
As India is a developing country it could be a huge market for foreign competitors which is a
threat for Patanjali and to overcome this threat Patanjali should find survival solution. Whereas
existence of untapped rural market is an opportunity and company should start capturing the
customers in these areas.
8. Large domestic market 0.9 2 0.18
9. Increase in FDI 0.04 1 0.04
THREATS
1. Decrease in market share due
to low advertisements
0.08 3 0.24
2. Local manufacturers 0.05 2 0.10
3. Change in customer
preferences
0.07 2 0.14
4. Foreign competitors 0.09 3 0.27
5. Change in government
policies
0.06 1 0.6
6. Rapid change in technology 0.05 3 0.15
7. FDI regulations 0.08 3 0.24
Total 1.00 3.01

13. Competitors Analysis
Competitive profile matrix is an essential strategic management tool which is used to compare
the firm with the major players of the industry. It gives an insight to company that where it
stands in relation to its competitors. The CPM score is measured on the basis of critical success
factors.
CPM MATRIX
Patanjali Nestle Dabur
Critical success
factors
Weights Rating Score Rating Score Rating Score
Brand equity 0.07 4 0.28 2 0.14 3 0.21
Global
operations
0.08 4 0.32 2 0.16 4 0.32
Research and
Development
0.10 4 0.40 2 0.20 3 0.30
Customer
service
0.09 4 0.36 2 0.18 4 0.36
Product quality 0.20 4 0.80 2 0.40 3 0.60
Product range 0.08 3 0.24 2 0.16 4 0.32
Product
differentiation
0.10 4 0.40 2 0.20 3 0.30
Partnership 0.05 3 0.15 2 0.10 4 0.20
Advertisements 0.08 4 0.20 2 0.16 4 0.32
Extensive
distribution
0.15 4 0.60 2 0.30 3 0.45
Total 1.00 3.75 2.16 3.38
Interpretation from the matrix:
Core Competencies of The Project are extensive Research and Development and Manufacturing
Standards. Ability to create more patents and wide range of products. Patanjali is offering new
variety of products every day. Matrix shows the competition analysis of Patanjali with other
companies.

14. Internal Factor Evaluation Matrix(IFE)
Key Internal Factors Weight Rating Weighted
Score
STRENGTHS
1. No.1 in herbal skincare
products in India.
0.165 3 0.495
2. Employee retention 0.165 3 0.495
3. Vertical integration 0.110 2 0.220
4. Supply Chain 0.110 2 0.220
5. Medicinal development
programs
0.055 1 0.055
WEAKNESSES
7. Challenge of Global
acceptance
0.165 3 0.495
8. Internal control 0.110 2 0.220
9. Pricing structure 0.06 1 0.06
10. Outdated technology
systems
0.06 1 0.06
1.00 2.32
Interpretation from the matrix:
Leading Herbal healthcare and FMCG industry by capturing the market extensively. Patanjali is
a well-known company in all sectors like Health care, Personal Care and FMCG sector.

15. VRIO Analysis
VRIO Framework
Value –
Patanjali has been in business of Ayurvedic health care products since 1930. Patanjali’s herbal
specialties division has over 200 medicines for treating a range of ailments and body conditions
from common cold to chronic diseases. Medicines developed in ayurvedic industry for women
health provide solutions for differentiated ailments. Also, it has been able to exploit opportunities
in the health care segment since the very beginning. Coming to personal care sector Patanjali has
exploited opportunities here also from time to time. FMCG sector is the business which is
emerged in few years and captured large part of the market.
Rarity-
Because of limited number of competitors in herbal segment the control of resources/ capabilities
is in the hand of a relatively few organizations. FMCG products are not rare in the market they
are available by big companies which forms a large part of the company.
Inimitability-
Since the volume of production of ayurvedic products by Himalaya is very large. Himalaya
benefits from economies of scale which is difficult for smaller companies. Also, Himalaya has a
high bargaining power over both suppliers and retailers. However, in personal care sector,
Himalaya does not have this power and hence other companies can imitate Himalaya’s resource
advantage.
Organization-
Patanjali Ayurveda has been in the ayurvedic and FMCG business for more than a century. Its
leadership and organizational values are unquestionable and they have helped it to operate
sustainably and profitably over a long period of time.

16. SWOT Analysis
STRENGTH
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 with good quality.
3. Strong brand ambassador with Baba Ramdev as its face helped boost the
business for Patanjali as guru of yoga.
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
WEAKNESS
1. Launched too many products in a short time.
2. Still launching products not concentrating on single product
3. Patanjali faced issue with advertising council of India
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 apparels
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

17. BCG Matrix
The Boston Consulting Group’s matrix (BCG) is broken into 4 quadrants beginning with the area
Question Marks. These are as yet unknowns for your business and could reveal risk and
exposures. The second area is Stars. Your business does these things particularly well. The
third area is Cash Cows. This area lists the most profitable cash producing activities. The forth
area is Dogs. These items might include issues that ‘dog’ your business.
This Matrix shows 4 quadrants where 1st shows star where all the major highlights are mentioned
after that question mark where products which are not that successful in market are shown. Then
comes the 3rd quadrant where cash cow means the products which are the core products of the
company or we can say which is the main identity of the company. After that 4th quadrant shows
different oils and other products which are not that popular but still running in the market.

18. Internal External Analysis
The Internal-External (IE) matrix assigns circles of varying sizes to indicate their individual
contribution percentages to the firm’s overall sales. Pie slices can depict the individual divisions’
sales contributions, so compartmentalization does not prevent evaluation.
This matrix comes with both IFE and EFE matrix where we have analyzed both internal and
external factors of the company. There are different quadrants where the products are diversified
through different market products.
First, the Y-axis of the IE matrix is the total weighted scores from the External Factor Evaluation
on a scale of low to high - bottom to top, and the X-axis are the total Internal Factor Evaluation
(EFE) from strong to weak left to right. Some firms like to do both of these matrices. They bring
out different parts of what might imply a strategic action and the IE matrix goes deeper into
divisional assessments. A good method of using these two matrices is to do both for the present
and then both again for some future expectation.
Through these matrices we can see that the Patanjali products are performing in a very good
scale in the current market their internal and external both matrices are properly structured and
are showing their competitive standing in the market.

19. GRAND STRATEGY MATRIX
The Grand Strategy matrix with the first quadrant highlighted in red as the most desirable
position regarding strategic market positioning and growth rate.
Through this matrix we can easily understand the market strategy of the company by all the
quadrants most have the quadrants having similar points when we put Patanjali in all the
quadrants we can understand the growth level of Patanjali. Patanjali forms a part of Rapid
Market Growth in which we can understand the development of all the products and
diversification of the products accordingly. Market is always fluctuating due to many types of
product the market is getting affected on daily basis some of the products are performing well in
the market but some are not that good in the market.

20. This matrix is considered as best product portfolio matrix through this we can easily understand
the market products of the company how they are performing how their market is getting
affected through different strategies.
Its helps in knowing the threats of that product.
 Product development
 Analyzing threat
 Product development
 Problem being faced in future

21. Competitive Analysis
When we talk about competition it is one of the best part of Patanjali it become a threat for other
companies due to its marketing strategies pus the quality of products they are offering to
customers at lower price, some of the competition of Patanjali are:
 Hindustan uniliver limited
 ITC
 Dabour
 Himalaya etc.
These are the companies whose business is really getting affected through increase in business of
Patanjali like Patanjali honey is affecting the business of Dabor honey whereas washing powder
is affecting business of soap industry and health products are affecting the business of Himalaya
company.
Recommendation
 Patanjali’s Turnover is increasing day by day when we see all the stats we can easily see
that in 5 years its business grown in 1000’s of crores which is a real threat for other
FMCG companies.
 When we see these different matrices, we can see the internal factors that are playing
their role to improvise the company’s current position and external factors helping them
to know how to capture the market.
 Patanjali is not focusing on single product but it is indulged in making all the products
which make that losing its identity and one product will affect the sale of other product
automatically like Nestle is having different brand name like Nescafe, Maggie etc. which
separate their customers in each segment.
 Patanjali should focus on 1 product and separate that product from other products putting
that product in front Patanjali is not able to capture the market in all segments but only in
some products it is lacking because of improper branding of products.
 Patanjali is focusing more on price than taste and quality when we talk about noodles
Patanjali noodles are not performing well after so many advertisement and marketing
strategies because of its taste.