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SWOT ANALYSIS OF PATANJALI PRODUCTS

Strengths
The rise of PAL has been nothing short of meteoric posing a serious challenge
to the companies that have dominated the consumer scene for years. The rapid
growth is driven by ever increasing consumer demand for its products, launch
of new categories and a broader retail and distribution network. This dramatic
growth has been achieved in less than a decade.
A strong factor behind PAL success story is the strong consumer loyalty. Not
just its consumer are sticking to its Products, many of them are acting as Brand
Ambassador. The consumers like PAL products due to various factors like
superior perceived quality at low Price, Faith in Brand and trusted Brand
Ambassador Baba Ramdev. Baba Ramdev has an ever growing mass base of
Yoga followers who are the influencer/ Key decision makers in their family.
With thousands of dedicated retail shops across India and in small towns, PAL
bridges the gap between the intention to buy and the actual buying process. PAL
opted for much safer pricing strategy by offering better quality products at
lower cost for the benefit of good health of the people and projecting
themselves as No profit company.
Weakness
The major challenges for PAL is to attract/ reach out to non yoga nationalists
section of the society as well as Brand Savvy younger generation of the country.
If PAL maintains the speed of success by launching need based products by
Disruptive Innovation, younger generation would surely attracts to their
products. PAL should launch new products targeting younger generation and
giving alternates to their existing favorite brands at low price and superior
quality.

Opportunity
Baba Ramdev capitalized on the opportunity of reliable Swadeshi brands (Make
in India initiave) which Indian consumers were looking for a long time to
reduce the dependence on Foreign Brands and will strengthen economy by
using the Local/Home grown Brand. In the past, the herbal category has
suffered for the lack of credible players and poor labelling of the products as
well as low consumer awareness. Due to prevalence of herbal home remedies,
herbal products were not so popular earlier. Besides, Herbal products were seen
as expensive and premium offerings. Sourcing of the quality ingredients for
consumer products and the availability of genuine suppliers was the biggest
challenge. The entry of PAL in FMCG has changed all that and have intensified
the competition. PAL consistently advertising its products harping on quality
and purity thereby removing the consumer doubts. It started communicating the
special features of its products as well as low price. PAL products are cheaper
than alternatives available in the market due to lesser production and marketing
costs and low overheads cost.
Threat
After the success of Baba Ramdev Promoted Patanjali brand in the FMCG
sector, many players have decided to enter the market. Sri Sri Ravishankar (Art
of living fame) is contemplating to launch Ayurvedic products soon in the
market followed by another person Isha Yoga Guruji. The latest one being MSG
brand launched by Saint Gurmeet Ram Raheem with a portfolio of 160+
products. We will have to see how these brands built their reputation and
maintain their presence in the long term against PAL otherwise these brands
will vanish very soon or end up as Regional or Desi Brands.