Business Analysis and Monitoring system for a sustainable business.

1. JAMES COOK UNIVERSITY, BRISBANE
Business Analysis and Monitoring System
STUDENT NAME : LATIKA VYAS
STUDENT NO : 13499881
SUBJECT CODE : LB5203
SUBJECT : SUSTAINABLE ENTERPRISE
LECTURER : LUKE SPILLER
CAMPUS : BRISBANE

2. “Yoga Guru Cum-Business-Czar”
“Like it or not, the responsibility for insuring a sustainable world falls largely on the
shoulders of the world’s enterprises, the economic engines of the future.” (Hart,
USA)
Patanjali journey started from yoga school “yogpeeth” in Haridwar, Uttrakhand which became one of the
largest yoga institutes in country. Swami Ramdev and Acharya Balkrishnan took initiative to keep
Ayurveda alive by setting up Patanjali Ayurveda Pvt Ltd for research and development, treatment and
manufacturing of Ayurvedic medicines.
Sustainability generally associated with unpredictable change and organizations. It’s easy to start a
business than to maintain the sustainability of the business in unforeseeable situations. My understanding
about the subject leads me to analyze, observe and understand the criteria of sustainability. Elements for
sustaining a business include Management, Marketing and Sales, Operations and Productivity, and
Brand-name and Goodwill. Patanjali Ayurveda is a good example to explain Dunphy phase because the
journey of Patanjali from being Yoga Institute to run FMCG products is interesting.
This report will be on the analysis and monitoring strategy on journey of the business itself, motivation,
hurdles and strategies how the business sustained being a Yogapeeth to FMCG.
Company Overview
Patanjali Ayurved Limited is an Indian based FMCG company. It has the vision to make world disease
free with scientific and natural approach of Yoga and Ayurveda. Company established in Year 2006 by
Baba Ramdev along with Acharya Balkrishna coordinating with latest technology and ancient wisdom.
Company started with Aloe vera gel initially and now it deals with four different categories i.e Ayurvedic
health product, Food products and Juices, Skin care products and Home-care products. Products were
prices 15-20 % lower than the market price and company removed intermediates by buys raw materials
directly from farmers. Company use the franchise to sell the product in market under three registered
names i.e Patanjali Chikitsalya, Patanjali Arogya Kendra and Swadesi Kendra. In 2014-2015 company
crossed the revenue Rs 2000 Cr. And in 2016 company recorded the turnover higher than other could
even think to manage it. Company basically believe in educating customers about the product,
Company has made this effort for social welthfare, health, philosophy and spirituality and belive in
optimum utilization of capability for betterment of the society. Company have a strong international
presence by distributorship in 10 different countries and Organization is registered with US FDA and is
an active member of many government and semi-government trade promotion organizations. (Ayurveda,
2016)

3. (Sethi, 2016)
(Sethi, 2016)
Current Business Model
1. Partners: Baba Ramdev and Acharya Balkrishna.
2. Main Activity: Yoga and Ayurvedic FMCG products.
3. Value proposition: Make world disease free and educate customers about herbal.
4. Key Resource: Farmers and Natural herbs with new technology
5. Channels: Franchise and Export
6. Costs: 15-20 % less manufacturing cost because eliminated intermediaries.

4. Analysis and Monitoring
Patanjali Ayurveda, focuses more on revenue than the profitability, even after achieving target of INR 50-
60 Billion in year 2016, company aided for better cost management by using latest machinery and strong
R&D but low A&P spends. Patanjali is very proactive to enter into all consumer categories; Patanjali has
launched its own mobile app which helps customers to locate the nearest store and online ordering.
Patanjali follow three step supply chain
Patanjali has recently made a tie-up with Future Group to sell their products, though patanjali has its
stores in every city and district of India, however, each outlet have to send the customer demand directly
to head office in Haridwar and goods are delivered by patanjali transportation.
Marketing strategy
 Content Marketing: By educating Customer what is used in a product ex: Alo vera gel.
 Customer Familiarity:It is the USP making disease free world.
 Pricing Strategy: 15-30 % low than the market price.
 Product Leadership: Understand and meet customer wants and needs.
 Promotional Strategy: Baba Ramdev himself is the Brand Ambassador, because of his popularity
170 countries.
Segmentation, Targeting and Positioning: Producing 100% herbal and Natural product, targeting people
above 40 years of age. Company produces medicine for very cheap prices and claims to recover cough
to cancer.
“Let Food be the medicine and medicine be the food”
Expansion Strategy: Attacking competitors by telling them.
1. Flank Atack: Dabur Honey
2. Frontal Attack: Maggie
3. Encirclement Attack: Britania Biscuits.
4. Bypass Attack: Colgate Toothpaste
Company focus on expanding business to Canada, Maurittis, Uk and and other countries, company has
invested 3 billion for its advertisement.

5. SWOT Analysis
Strength
 Spiritual Connection with Customer
 Herbal products with natural ingredients
 Strong and innovative R&D
 Face of the Brand- Baba Ramdev
Weakness
 Controversies like attacking other brands
directly eg: Maggie
 Putrajeevak product which create negative
impact
 Low exports and strong competitors
Opportunities
 Large domestic market of FMCG
 Low entry barrier for herbal products in
innovative way
 Huge market to expand in rural market
 Diversifying to other retail stores
Threats
 Competitor keeping eye on growth of
patanjali
 Controversies around the company
 As compared to the competitors,
patanjali have weak supply chain.
PESTAL Analysis
Political: Taxation policy of Government impact on the price of final product.
Government support for Yoga and Ayurveda supports business to sustain
Economical: Customer look for the the value for money, so in this case inflation becomes the important
factor. Whereas, high interest and tax rates cost of manufacturing increases due to impact on cost of
capital. GST in India would help organizations like Patanjali.

6. Social: Health consciousness and awareness among consumers, but rise in life style diseases are so
common like heartattack, blood pressure etc and the main problem is food we eat which contains so
many chemicals. However, Patanjali is 100% natural and herbal resolves all medical complications.
Technological: Patanjali has developed its own Research and Development institution where they spend
more money to make it better everyday for Ayurvedic and Herbal Product. Automation, however mass
production of Ayurvedic drug, without loosing their effectiveness and efficiency.
Environmental: Ayurvedic has no toxic impact in environment because of its natural and herbal origin,
where as India is rich source of herbal and Ayurvedic Production. Ayurvedic product are more
environmental friendly than the Allopathic medicine.
Legal: The Laws for Medicine central control act, Drugs and cosmetics act and drugs and magic remedy
acts monitor Patanjali legally.
Monitoring System
I have divided the whole sustainable monitoring indications into 4 questions so I can try to explain
better with what I could understand.
Questions
1. How a local player become a threat to multinational FMCG companies.
The Popularity of Baba Ramdev among people since year 2002, developed the trust on him.
People who were folloing him and his treatment by yoga was reducing many problems among
people like stress, anxiety, bool pressure and etc. By the time when things were going modern
and global, the importance of natural and herbal faded away which has been treating bigger
diseases from decades. As India has been very famous for history and traditional knowledge
because India is rich in growing herbs. When Acharya balkrishna who is the Ayurvedic researcher
came along with Baba Ramdev to start producing ayurvedic medicines and FMCG products, it
was exciting to watch. By the time people were aware about herbal and ayurvedic products and
started to look forward to use them much more often. When it started producing products in all
consumer sector it became the threat to multi-national companies, its most popular product is
ghee(Indian Butter), Toothpaste, Honey. Patanjali created a herbal trend in market by going
herbal, competitors too started producing herbal products to attract customers.
That was one of the key monitoring effect when the market competitors were adapting herbal
trend. Company is involved with many controversies for putting elegation on other competitors for
their quality of product directly. Patanjali has raised the fear in competitors after when they
launched Honey, because they told Dabur directly to produce Honey of better quality and at lower
price than them.

7. (Pahwa, 2017)
2. How to beat competitors in price-segment.
Its really not true if company sell any product at cheap price become a hit. There is a reverse
psychology with customes too. The fallout has been that there is greater awareness today
about herbal and ayurvedic concepts and thus greater consumption of Patanjali products. Rivals
are now hoping that they can also reap benefits from the emerging ‘herbal trend’. “It is good for
the industry if more companies enter. Previously, people were not taking the herbal space
seriously but they are now,” Naresh Bhansali, CEO of finance, strategy and business
development at Emami said. the entry of more players in this market would actually push
demand and accelerate growth in this segment as there will be more awareness about this
ancient science and its benefits,” Dabur India’s chief financial officer Lalit Malik said. In the past
the herbal category has suffered for the lack of credible players and poor labeling of products and
of course, low consumer awareness. The advent of Patanjali has changed all that. (Rakshit,
2016)

8. (Pahwa, 2017)
3. How to built successful marketing strategy to attract mass of people.
Baba Ramdev had great support from political side and his followers, he was even called to lead
world yoga day. Baba Ramdev was successful in making a ₹3000 crore company just by
his own name. But this could backfire on him as well. His every action, every social
media post, every word he speak has been associated with the brand and hence Baba
Brand has to be a bit more cautious in everything he do, speak, eat, type, or wear.
(Pahwa, 2017). Company created the marketing mix which didn’t go wrong with them at
all. For which they creating herbal product from available resources and took raw
material directly from farmers, where he created lot of employment and generated
revenue. He made value base pricing and eliminated all the intermediaries. He promoted
all the products on his face value and became the brand generator for brand value. He
positioned ayurvedic products with zero side effects and treated many.

9. (Baba, 2016)

10. (pandey, 2015)
Summary and Conclusion in light of Dunphy phase
Phase 1: Company started business with existing products and huge competitors but difference
was with the ingredient that’s “Herbal”. They targeted 75% of market and started producing more,
initial problem with company wasthey didn’t had money but they ma naged to built a plant cost 3
crore. Secondly they had come up with very new idea but with the knowledge. initially problem
was to find labour, correct supplier of raw material and market supply so it reach to the
customers.
Phase 2 : After great response of customers and demand kept increasing, company produce what
customers want and need. Company managed to gain attention in market because of low price,
better product and of course the Herbal trend. Company has invested 3 billion just on marketing
and advertisement. It created huge market in rural areas initially, later all over the country.
Patanjali isglobal now and have the USA market as well. But it have exports as well in 10 different
countries. After launching the Ayurvedic and Herbal product line, 5 years later they acchived
turnover of 2000 billion which no other company could achieve. Patanjali says if you buy their
products they are giving 100% pure products without using chemicals, the eco-friendly products
which are available on lesser price at margin of 15-30% than others, and the money consumers
invest stays in India itself. Now patanjali is partners with Future group, have social visibility
among social media and global market as well which is one of great achievements. However, Baba

11. has alwaysbeen in controversies which never went well in market. Company have customer
loyalty which is still the achievement.
Phase 3: To keep patanjali sustainable, it’s important that they start involving suppliers so that
they can reach more market customers. Though patanjali has created a lot of employment for
farmers, researchers and rural area shop keepers. They have to segment their market, due to a lot
of growing competitors like Dabur, Himalya, Hindustan Uniliver and etc. everyone is promoting
and using herbal products. Though patanjali medicine line doesn’t earn as much as FMCG
products earn, they are kind of promoting more FMCG which makes a statement as if they are not
stick to what they say. Company should start promoting for their medicine line aswell, so they
maintain saying disease free world.
Bibliography
Ayurveda,P.(2016). Global Market.Retrievedfromhttp://patanjaliayurved.org:
http://patanjaliayurved.org/global-presence.html
Baba, R. (2016). PatanjaliAyurveda.Retrieved fromhttp://patanjaliayurved.org:
http://patanjaliayurved.org/vision-mission.html
Hart, P. S. (USA). Kenan-FlagerBusinessSchool.
Pahwa,A.(2017). Patanjalicasestudy. feedough.
pandey,P.(2015). Ogivy southasia brands.
Rakshit,A.(2016). The PatanjaliEffect. Kolkata:BusinessStandard.
Sethi,M. (2016). A Reporton PatanjaliAyurveda. VarunMishra.