Critical analysis of ethical practice of Patanjali Ayurved brand
The primary aim of this report is to highlight the ethical practices and consumer insights about the Patanjali products in the global market. Patanjali Ayurved is a fast growing brand who is producing natural health care, ayurvedic medicine, herbal home care, and natural food products globally. The paper states that how PAL faces ample of challenges and risks while delivering and advertising the products in the international market. Along with this, the report tries to analyze and evaluate the factors that affect its brand image and reputation. Due to advertising issues, the revenue and income of the company has cut down that put direct impact on the popularity of the products and firm. A data analysis in regards to advertisement issues that are being handled by the firm are presented in the task briefly. At the end, the report recommends that how the company can overcome the advertising issues and how it can grow and boost its profitability by 2020. Without innovative and unique strategies, a company cannot achieve its desired objectives and goals. Thus, innovative strategies that shall be kept in mind are discussed in the task. Further detail of the task has been shown below.
Patanjaliayurved is a retail company that sells ayurved products for hair, skin and personal care. The company’s headquarters is situated in Haridwar. It is stated that farmers are well known and recognized assets for the company. They deliver organic ad herbal products to the customers in all over the world. Patanjaliayurved takes several measures for famers to raise their income and offer surety towards sale of their herbal and mineral products. Keeping Ayurved, Nationalism and yog are significant and effective pillars of Patanjaliayurved Company; it is further committed to generate a healthy and positive country and community as well. With astute planning, pragmatism, absolute dedication and scientific approach, the organization is poised to write a new and innovative progress and success for the world. The main aim of the firm is create a best place for the innovation, growth and development of Ayurveda in India. Swami Ramdev Ji and Acharya Balkrishna ji are main leaders in the firm who are performing roles and responsibilities effectively. The firm is leading and growing marketer and manufacturer of herbal based products and medicines (Chakraborty, 2016). In today’s era, the company is selling its products in more than 10 countries around the globe through authorized channels. Patanjaliayurved also helps the people move towards a healthy and effective lifestyle. Patanjaliayurved is registered with US FDA and it is an effective and active member of various government and semi-government trade promotion organizations. It is noted that there are various factors affect the growth and progress of the firm in today’s globalization world. Thus, the company needs to focus on the various issues and challenges to overcome the competitors (Mbaskool, 2018). For this purpose, situational analysis is done by the company that has been discussed below.
The company is committed to adhere to the highest standards of moral, legal and ethical conduct of business activities and operations by encouraging transparent, effective, fair and professional and ethical work environment (Datta, 2017). Following are the ethical practices of Patanjali ayurved limited.
- Be honest and loyal towards the customers.
- Exercise morality and virtue (Asteya) to run the business activities and operations successfully.
- Be wise and clever (Brahmacharya) while rendering products to the customers across the world.
- Practice simplicity and effectiveness
- Worship a spiritual objective or goal
- Exercise self discipline and respect
- Sacrifice the self-esteem
- Read daily, that means mantra and mediation that are done by people on regular basis
- Be happy and content (Santosha). Santosha helps in providing happiness and joy to people.
- Exercise non-violence (Ashima) which means do not hamper and kill other beings.
Consumer opinion about Patanjali Ayurved products
It has been studied by Khalikova (2017), the brand Patanjali is deeply entrusted by customers across the nation. Baba Ramdev is a recognized Yoga Guru who attracts ample of people in a short time. This was only possible because Baba Ramdev has lot of experience and knowledge. For improving and developing a business, the company is recruiting people with high skills and knowledge who are able to implement the plan. It has been portrayed by Jain (2016) that Baba Ramdev develops and improves a successful and effective brand by appointing qualified and educated people who are dedicated and passionate towards the work and production of the product. The biggest and unique mantra to success and growth is excellent quality product with reasonable prices. According to Jain (2016), all the products produced by Patanjali are made from natural and ayurveda element which are cheaper and effective than other alternatives in the international market due to lesser marketing and production costs. To stay ahead of the competition, the company always keeps in mind the quality, price and quality that they are producing. Patwardhan (2013) stated that Patanjali is working towards a better country, wealthier farmers and healthier community. It personifies the essence of CSR because profits of the company are not for any single person but are for the success and betterment of the community. This theme is further affected in the every attribute of management and organization, the company focuses on the healthcare and education to attain competitive benefits internationally (Ramdev, 2018). Apart from this, effective and unique code of conducts is followed by the company to run the business operations and functions successfully. Patanjali Ayurved Company also focuses on the leadership to set a strong and effective brand image in the minds of the customers. It is studied by Corner (2009), Patanjali Ayurved focuses on the various areas such as healthcare and modern education through Gurukal system for poor students and girl child.
It has been studied that Patanjali has created themselves as a herbal brand or company not in Indian only but everywhere across the world. The consumers have started using the company’s products because they believe that these herbal and mineral products are chemical free and made with natural ingredients (Gupta, 2016). The company has promised to offer discounted patanjali products in today’s modern world for all the registered customers in all over the world. In today’s globalization world, where technology is slowly eating everything from science to food, the customers as human still want natural and herbal products instead of chemically or technology created food products. Patanjali is an Indian brand thus people like to use this brand to take various benefits and to save time and money. The company has a majority of products for health, beauty and other normal purposes. Apart from this, the organization maintains loyalty and trust among the customers across the world. It is stated by Khanna (2015), the perceived and excellent quality of products are being sold by the company in the international market. Thus, the people like to buy these products at reasonable prices. Indian market is considered price sensitive market hence, the organization uses low cost pricing strategy to attract and retain potential customers in all over the world. It has been investigated by Jaggi and Ghosh (2017) Patanjali products deliver the price leadership with an excellent and dynamic quality of products to the consumers in the international market. Patanjali shampoo ingredient list 99% herbs including popular Indian herbs such as shikakai and Reetha that are a part of the traditional wisdom for hair care in India. This reveals the customers to consider Patanjali as more powerful and truthful than others. The firm maintains strong and effective distribution network and channels to distribute the herbal and natural products. This confidence has strongly and effectively contributed to the consumer loyalty. The company’s products are available at an attractive and unique discount as compared to their competition. Thus, the company is able to eliminate their procurement cost, raw material and they are able to produce goods at reasonable prices. In this way, the consumers prefer to buy Patanjali ayurved products (Jaggi and Ghosh, 2017).
Key advertising issue, problems and goals and data analysis
An overwhelming study is conducted that unfair practices are carried by Patanjali Ayurved to attract and retain maximum number of customers in the global market. The company is promoting the herbal, beauty and natural products through poor ads and advertisement that are hampering the financial position and brand image in the competitive market. It is studied that Patanjali slapped with a fine of 11 lakh for misleading ads. The charge: ads say that company’s products are produced at Patanjali production units, but in reality they are made elsewhere. Advertising watchdog ASCI stated that Patanjali is accountable for misleading and ineffective advertisements and ads. In august 2017, an ad for oil sparks controversy. Redditors tear it apart. The company is asking key target audience to purchase their products because its their “patriotic duties” and claiming that 100% profits go to charity. Furthermore, they point out that the company cannot do maths. ASCI claimed that the company sold thousands of banned medicines and products in the market that were very harmful for people and their health. Divya Swasari pravahi advertisement claims that the company’s medicines has 0% side effects and 100% effective and they have utilized this product for more than 20 years on LACS and crores of people were not substantiated and they are misleading and misbehave by exaggeration. In this way, various challenges are being encountered by the company in today’s era while selling the products (Furtado, 2016).
Along with this, the company is handling various problems like low number of manufacturing units that is hampering and influencing the progress and targets of Patanjali ayurved. Lack of skilled and experienced management team is another problem in the company. As a result, the company is unable to handle and resolve the queries and issues of the customers. Competition further affects the long term profitability and outputs of Patanjali Ayurved in the international market (Dutta, 2015). The primary goal of the firm is to make Indian an economic and effective power by 2040 and to augment profitability in the international market. The organization is expecting to clock rs. 50,000 crore in revenues by 2020 (Das, 2017).
Data collection is needed to identify and evaluate the exact fact and information related to the products and services. There are various methods and tools to collect data like primary and secondary method. Here in the report, secondary data collection method is used that helps to collect appropriate and accurate data related to advertising issues in Patanjali Ayurved Company. A survey report is presented by ASCI where it is shown that 109 out of 155 complaints and issues received against Patanjali brand. The 109 advertisement issues are related and interconnected to e-commerce category, education category, consumer durables, health care, personal care and food and beverage category. It is examined by Irani (2018), the company introduces an ad about two sisters one a “traditional” girl who applies Patanjali beauty products and the other a “bindass, wannabe-type” who naturally uses foreign chemical based creams. The latter experience a bitter fate at the end, a consequence of her wrong and ineffective choice. If the company was to explore and expand its brand in the international market then it needs to focus on the wrong publicity and misleading. The other advertisement claims of alleviating “ hair fall, hair breakage and dryness” was not effective and is deceptive. It is further noted that the firm is rising from 2011-2012. It shall be noted that Patanjali ayurved has approx 10,000 stores, 100 mega marts and 4,000 distributors. Along with this, the organization has made agreement and partnership with various retail chains or stores such as Reliance retail and Future Group to overcome the rivals. It is examined that the company has earned approx 453 revenue and net profit margin was 12.36% in 2011-2012. The revenue of the company is showing that Patanjali brand is growing rapidly in today’s globalization world (Rakesh, 2012).
It is studied from the various research that Patanjali Ayurved is one of the leading and fast growing brand that provides innovative herbal, beauty and natural products to the customers around the globe. The organization manufactures or produces 444 products including 45 types of cosmetics products and 30 types of FMCG products. It is elucidated that Patanjali ayurved is the 3rd biggest and unique FMCG Corporation in India. This fact renders the Kernel of the hard work and efforts that the company has employed (Khalikova, 2017). In today’s era, the company is attracting and retaining the talented people with good and dynamic skills to conduct business activities in a hassle free manner. It is studied that a strong and dynamic component behind PAL growth and progress is the effective and unique customer’s loyalty. This factor helps PAL to augment its profitability and outputs in the international market. Most of the company’s products are approx 15-20% cheaper as compared to other leading brands. The firm uses competitive pricing and low cost leadership strategy to beat the competitors globally (Chattopadhyay, 2012).
It is recommended that PAL must work towards the advertisement issues aiming to handle and minimize various ads and advertisement issues. A marketing research and survey shall be done to analyze and identify the choices, needs and demands of the key target audience. In this way, the company can reduce and prevent misconduct and misbehavior in the organization. Dynamic and talented staff shall be recruited by PAL to communicate and collaborate with customers internationally. In this way, the company can reduce dissatisfaction and loyalty issues at the workplace. The firm should add some new products in the category to attract wide range of new customers internationally. In this way, it is noted that PAL must focus and identify the sub-brand category to grow and survive the activities and operations internationally. The strategies and policies of the competitors must be identified and evaluated by the firm to cope up with rivals in the market. Effective promotional and advertisement strategy shall be implemented by the company to attract ample of customers.
Conclusion
It is concluded that marketing strategy like promotional and advertisement strategy is significant and unique build and develop a brand image in the market. Patanjali Ayurved is one of the leading brands in Indian that is growing rapidly. The above analysis shows that dynamic ethical practices are exercised by the company along with this, it also focuses on the demands and requirements of the customers to struggle with rivalries globally. It is also revealed from the above study that PAL faces ample of challenges and issue while advertising and distributing the products in the global market. The analysis shows the perception and choices of the customers regarding the Patanjali products that help in gaining competitive benefits.
References
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