Slides on Patanjali Ayurveda's culture, structure, strategies and recent performance (2016). This slide deck was a part of a college assignment.

1. Patanjali Ayurveda
Disrupting the Indian FMCG

2. 1. Intro
Patanjali Ayurveda ,disrupting the Indian
FMCG since 2014 with a projected turnover of
7000 Crore in FY17.
➔ Unexpected
New kid on the block.
➔ Emotional
Marketing through spirituality.
➔ Simple but Complex
Extensive variety of “Indianized”
products.
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3. Culture
● The vision - Bharat Swabhimaan
● Attention to details
○ Production
○ Employees
● Innovation
● Target and outcome orientation
Bharat Swabhimaan
A vision for empowering
the Indians and tackling
the monopoly of the
foreign MNCs in the
Indian FMCG scenario.
Consistent with the
“Make In India” initiative.
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4. Organisational Structure
● Work specialization
● Chain of command
● Centralization
● Span of Control
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5. Organizational Structure
● Formalization: Guidelines based on vision
● Departmentalization
○ Functional:
○ Product: High quality of products
Organizational Design
● Functional Structure
The work division is based on different functions to be
followed in the organization.
Helps in cost minimization.
Type of Organization
Patanjali follows a
mechanistic culture
despite having a
dynamic environment
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6. Environment and
Structure
● Mechanistic Structure
● Dynamic Environment
● Product expansion
● Cheap products
Strategy Frameworks
● Growth Strategy
● Cost Minimization
● Mechanistic Structure
Technology and
Structure
● Mass Production
Contingency factors
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7. Existing
Markets
FY 2014-15
Rs. 2030 Crores Turnover.
FY 2015-16
Achieved Rs. 5000 Crores
target turnover.
FY 2016-17
Targeting Rs. 7000 Crore.
($1 Billion GMV in 3 years!)
Strategies
● Aggressive Growth Strategy
● Mission: Bharat Swabhimaan
● Goal: 1 Billion GMV in FY17
● BCG Matrix: Question Mark in
general
Market
Penetration
● Yoga
● Spiritual
Lessons
Product
Development
● Ayurvedic
● Herbal
Market
Development
● Youth
● Middle
class
Diversification
● FMCG
● Cosmetics
● Health
Ansoff Matrix for Patanjali Ayurveda
New Products
New
Markets
Existing Products
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8. SWOT Analysis
Strengths
● Natural, herbal and organic products
● Brand “Ramdev”
● Competitive pricing (20-30% lower)
● Marketing “spirituality”
● Established distribution channels
● Social Responsibility of “Bharat Swabhimaan” and
make in India.
Weaknesses
● Already established competitors with large market
share
● Prejudices for “religion” association
● Less rural penetration
● Low exports
Opportunities
● Large domestic market
● Untapped rural market
● Competitive pricing implies rise in real income of
consumers
● Potential for exports
Threats
● Political interference
● FMCG biggies like HUL and their ayurvedic divisions
● Adaptive competitors like Dabur
● Rise in imports if restrictions are loosened
● Sector slowdown
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9. Corporate Strategies
● Growth
○ Concentration
○ Vertical Integration
■ Backward
■ Forward
○ Diversification
● Stability
Competitive Strategies
● Cost Leadership
● Differentiation
● Five Force Model
○ New entrants
○ Substitutes
○ Buyers
○ Suppliers
○ Rivalry
E-BUSINESS
Patanjali also sells their
products online on
www.patanjaliayurved.
net
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10. Thank You 10
Presented by-
Rajas Pandey
Nitish Kundala
Anjul Mishra
Nilesh Lahoty
Krishna Zanwar