Strengths and Weaknesses of Patanjali Ayurved Limited
Discuss about the Consumer Perception of Knowledge Sharing.
Marketing and management are two major concepts that increase the efficiency of the business significantly. Patanjali Ayurved Brand has been taken in this research paper as it is the Indian Consumer company that provides a number of products such as beauty products, Ayurvedic medicines, food products, natural personal care and herbal home care. The revenue of the company is INR 10,561 crore at the end of March 2017. The latest Ayurved A high stress on various quality circles and special project teams are working on Total Quality Management projects for the purpose of making good quality a way of life in Patanjali Ayurved Limited (Patanjali, 2018). This kind of activities helps Patanjali Ayurved Limited to develop herbomineral arrangements with consistent levels of the batch to batch uniformity. It makes sure that the customer of Patanjali will get high-quality products regardless of where it is bought.
The strength of the company is strong growth in a short span of time in which it has been found that the company has registered revenues of INR 5000 crores in 2015-16 that facilitates to attain a foothold in the established FMCG business (Patanjali, 2018). Along with that the strong brand ambassador, broad range of products, strong distribution network and extensively present on e-commerce platforms. The major weakness of this company is that the revenues are reliable on few main products which are not sustainable in the long term. The company has huge opportunity to expand its business in rural products. The major threat is a poor farming season as the products of Patanjali are dependent on natural ingredients.
The company has reached at the higher level of growth in a short span of time that increases the good image of the company in the view of outsiders and increases the trust of potential customers over the products of the company. According to Dubey, (2017), there are some major issues of Patanjali Ayurved that can be the cause of degradation of the system. It has been analyzed that some products of the company are failed in the quality tests. The district food safety department has found issues in the products of the company that is a matter of concern. In April, 2017, the product of Aata noodles was found to be sub-standard since they included three times more ash than the acceptable limit. Along with this, the desi ghee of Patanjali was found to include artificial color. It is vital for the company to maintain the image of it in the long term by providing a number of quality products to the customers. As per The Indian Express, a case has been filed in the year of 2012 that Patanjali had failed in quality tests in the sample of mustard oil, pineapple jam, honey and salt (Shukla and Sanghvi, 2017).
Threats and Opportunities
The decisions criteria are an important part to make the decisions and they will be taken in use to evaluate the suitability of the organization in making the decisions. The decisions regarding key issues of Patanjali have been taken by evaluating the key success factor of FMCG Industry (Evanschitzky, Eisend, Calantone and Jiang, 2012). The key success factors of FMCG products in India understand the strategic position of the brand, ensure incentive is appealing, Ensure compliance of promotional activity at outlet level and high market potential (Mothilal, Gunasekaran, Nachiappan and Jayaram, 2012). It has been evaluated that the Patanjali Ayurved is failed to understand the entire concept of the key success factor of FMCG products in India.
It has been found that the company is failed in the quality test of a number of products. It has been done due to low morale of employee as they are not attentive at the time of producing the products. There are some typical decisions criteria such as ease of implementation, cost, employee morale, risk levels, cost savings, return on investment and increase customer satisfaction. The company needs to focus on the ease of implementation of employee morale so those employees implement the effective product with quality. Customers want quality based products and due to lack of it, they can switch from one place to another place for having quality products. It has been found that Patanjali is not followed the key success factors of FMCG Industry of India that being the major concern of quality products (Rao and Alexander, 2016.). However, the company has taken various decisions such as increasing quality in the products that maintain the image of the company as before in the market of India. The company does work as per the slogan of it “Prakriti Ka Ashirwad” (Jaggi and Ghosh, 2017).
The assumptions regarding the questionnaire have been mentioned below:
- The participants will answer the interview questions in a significant manner.
- The criteria for inclusion of the sample are appropriate and so make sure that the participants have all experienced the same phenomenon of the study.
- Participants have interest in contributing to the research and they do not have any other motive.
- They will give the correct answer in an appropriate manner of all questions by which the researcher would be able to interpret in an efficient way.
Reason for purchasing the Patanjali Ayurved brand
Brand image of Baba Ramdev
1= Strongly agree
5= Strongly disagree
From the assessment, it can be interpreted that both 50% of males and 50% of females are selected to decline the possibilities of biases from research. It is also analyzed that there are 16 out of 50 participants were belongs to 36-41 years. In contrast to this, 8 out of 50 participants were belongs to below 30 years. It is also assessed that there 17 out of 50 participants has Below 3 lacs income while only 9 out of 50 participants has above 10 lacs. It is also evaluated that 15 out of 50 consumers are homemaker whereas only 5 out of 50 participants are students. There are 21 out of 50 participants who have always purchase Patanjali Ayurved brand. In opposed to this, 11 out of 50 participants who have seldom purchase Patanjali Ayurved brand. Through the assessment, it is observed that there are different reasons for purchasing the Patanjali Ayurved brand. These reasons are Good quality, Advertisements, Brand image of Baba Ramdev, Availability, and Health Benefits. In this way, it is evaluated that 29 out of 50 participants were believed that good quality is key reason for purchasing the Patanjali Ayurved brand. Furthermore, 27 out of 50 participants were believed that Advertisements is key reason for purchasing the Patanjali Ayurved brand. In addition, 33 out of 50 respondents believe that Brand image of Baba Ramdev is key reason for purchasing the Patanjali Ayurved brand. It is also evaluated that 38 out of 50 participants feel that availability of product is key reason for purchasing the Patanjali Ayurved brand. As well as, 30 out of 50 participants believe that health benefits are key reason for purchasing the Patanjali Ayurved brand. It is also demonstrated that 15 out of 50 consumers have ever complained about Patanjali Ayurved brand while most of the consumers i.e. 35 out of 50 have never complained about Patanjali Ayurved brand. It is also analyzed that consumer has their different insights regarding the Patanjali Ayurved brand for the following characteristics. These characteristics are Affordable price Better quality, Natural products, Benefits and Customer service.
From this questionnaire, it is found out that 11 out of 50 consumers buys the products of Patanjali Ayurved brand due to natural products while 7 out of 50 participants were believed to buy Patanjali Ayurved brand due to its benefits. It is also determined that 15 out of 50 consumers were most satisfied with the Patanjali Ayurved brand while only 4 out of 50 consumers were dissatisfied with the Patanjali Ayurved brand. It is also assessed that 30 out of 50 consumers were agreed with the statement that Patanjali Ayurved brand provides health benefits as compared to other products. In contrast to this, 12 out of 50 participants do not agreed with the statement that Patanjali Ayurved brand provides health benefits.
There are a number of issues in the products of Patanjali as it has been found that the quality of them is not high as per the district food safety department. It is essential for the company to improve the quality in a significant manner in which they should make a commitment to improving the quality of the products. The mistakes should be tracked so that the company could make decisions in improving the quality of the products (Pandey and Sah, 2016). The company is facing issues regarding quality of the products that is why it is required for the company to provide the training program to them for increasing the quality of the products because the customers are the key factor of success. In the context of customers, it has been found that the believe of customers are decreased over the products of the company due to less quality in the products that is why it is vital for the company to organize the quality circle that should have skills to examine the quality of the products (Kumar, Jain, Rahman and Jain, 2014). Along with that, it has been found that the Patanjali is facing issues regarding the absence of a key sub-branded range under Patanjali “Umbrella”. The communications are done around the name of “Patanjali” and not around any sub-brand which has become the major cause of decreasing sales of their key categories. The products of the company are entirely dependent upon the co-founder of Patanjali- Baba Ramdev and any questions arising on their integrity will definitely impact the performance of the brand.
It can be concluded that Patanjali Ayurved has various factors of key to success such as less price, strong distribution channels, and strong brand associations and promotional through media. The key issues of Patanjali case study have been described in a significant manner in which it has been found that some products of the company are not compatible with quality. The decisions criteria have been elaborated in a sophisticated manner in which it has been found that the company did not follow the key success factor of FMCG India. Data analysis have been done to increase the better understanding of the Patanjali products in which the questionnaire has been prepared to get the answers from participants. Each graph has been interpreted to describe the meaning of it to the readers.
- It can be recommended that marketing strategy of Patanjali Ayurved brand should attract long-term consumers in order to conduct the successful product.
- There are large numbers of Patanjali consumers who are facing problem such as products are not available in the market regularly. It can be suggested that Patanjali Ayurved brand can increase their distribution channel (Solomon, et. al., 2014).
- The company should have focused on the production efficiency and improves the advertisement. The company should also scan the trends and conditions in order to operate in the area of the market, the lifestyle of consumers, growing influence and income levels (Hudson, et. al., 2016).
- It can be suggested that Patanjali Ayurved brand should gain increase the number of outlets and stores. As a result, it would be beneficial to increase their productivity and also ensures that there will be the high availability of products in the market (Bilgihan, et. al., 2016).
- It can be suggested that Patanjali Ayurved brand should add new attributes that a consumer can use in assessing the brand as it would be beneficial to influence the consumer behavior. It is also suggested that managers should improve their products by emphasizing on additional benefits with regards to using the brand (Fransen, et. al., 2015).
- It can be also recommended that Patanjali Ayurved brand should select the target market. The scanning and evaluation of market opportunity aids to address the different consumer segment with diverse and exceptional needs and wants. The company should also address these groups and learns how to make a buying As a result, it would enable the marketer to design the products and services as per the needs (Pappas, 2016).
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