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PRESENTED BY: P.LAKSHMAN

Patanjali case study

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Page 1: Patanjali case study

PRESENTED BY:P.LAKSHMAN

Page 2: Patanjali case study

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PRESENTED BY

LAKSHMANMANORANJANPRASANJEETMANASWINISARMILEE

Page 3: Patanjali case study

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STRUCTURESTRUCTURE:-:-

• INTRODUCTION INTRODUCTION

• PORTER’S FIVE FORCESPORTER’S FIVE FORCES

• SWOT ANALYSISSWOT ANALYSIS

Page 4: Patanjali case study

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INTRODUCTIONINTRODUCTION

It was founded by Acharya balkrishnan & Yoga guru RAMDEV

PATANJALI PRIVATE LTD. Setup in 2006

Converted into patanjali public company in 2007

OBJECTIVE - sell FMCG, herbal, and ayurvedic products at a cheaper price than

competitors

SETUP VERIOUS COMPANY WITH THE HELP OF by Acharya balkrishnan

PATANJALI BIO RESEARCH INSTITUTE

PATANJALI FOOD & HERBAL PARK

PATANJALI YOGPEETH TRUST

PATANJALI GRAMODHYOG

Page 5: Patanjali case study

PORTER’s FIVE FORCESPORTER’s FIVE FORCES

Page 6: Patanjali case study

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PORTER’s FIVE FORCESPORTER’s FIVE FORCES

Bargaining power of buyers

o Reliable offering from local pharmaceutical industryo Time factor associated with ayurvedic industry

It is a long term process Short term users switch to allopathic Patanjali need a mix of medicines as well as

Yoga to get the best resulto Preference for alternate medicines when it comes

to specific disease

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PORTER’s FIVE FORCESPORTER’s FIVE FORCES

Bargaining power of supplier Political conflicts and lack of Govt. support- Due to many of Baba Ramdev’s socialist and anti political activity certain

sect.suppliers are facing pressure at a poitical level not to provide regular supplies to the patanjali.As a result they had set up their own herbal gardens which has over 200 medicinal herbs and plant.

Rare herbs gives suppliers immense bargaining power Certain medicinal herb which can be grown only in certain climate zone

having certain type of soil for that patanjali rely on external supplier. This directly hands immense bargaining power to the supplier as they can inflate the price way beyond the actual market rate.

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PORTER’s FIVE FORCESPORTER’s FIVE FORCES

THREAT OF SUBSTITUTE

o Allopathic industry is run in a highly organized way It uses multiple strategies to sale their product It gives incentives and bonus to prescribe their medicines People always listen to highly qualified Doctors

o Threat from homeopathic medicines Lack of awareness about Ayurveda Certain sections completely rely on Homeopathic

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PORTER’s FIVE FORCESPORTER’s FIVE FORCES

Threat of new entrants-:

1. Sub par products from new entrants Some of the new entrant in to the herbal product segment offer sub Substandard product made out of substitute plant rather than actual herbsFor specific use. This can lead to over all degradation of the reputation of Herbal and ayurvedic product. 1. Emergence of new local and national players Due to increasing popularity of ayurvedic and natural product both nationallyAnd globally, many new firm entering this segment. They advertise heavily Through multiple channels.

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COMPETETORSCOMPETETORS

DABURBAIDYANATHZANDU

80% MARKET SHARE

HIMALAYASEMAMIJOVEES

ESTABLISHED HERBAL BRAND

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SWOT AnalysisSWOT Analysis

STRENGTH:-Low opportunity cost:-The company enjoys low operational costs and more operational profit % compare to many other big players like Ranbaxy & sons pharmaceuticals

Sl No. Company Operating Cost in(Rupees)

1 PAL 72,06,071

2 Sun Pharmaceuticals 7,14,70,400

3 Cipla Ltd. 6,16,14,800

4 Dabur Ltd. 5,22,83,000

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PATANJALI AROGYA KENDRA > 3,790

PATANJALI CHIKITSALYA 1,088

PATANJALI SWADESHI KENDRA 11,000

SWOT AnalysisSWOT Analysis

Large Distribution Network

PAL has an extensive distribution network spread across the Country

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SWOT AnalysisSWOT Analysis

WEAKNESS:- Strong Global Competition

PAL has been extensively doing well in India but to establish it

Globally, needs a lot of strategy and hard work. Due to the presence

of well establish players in the market like BACFO,HIMALAYA

Etc. Low Expert Levels

Presently the company is focused only in India. Extensive growth

globally has many hindrance from expert policies to International

rules in the field of medicines Etc.

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SWOT AnalysisSWOT Analysis

OPPERTUNITY:- Untapped Rural market Rising Income and Purchasing power Export potential

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SWOT AnalysisSWOT Analysis

THREATS:- Political attacks Replication of products Policies

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