Assignment Sample on International Market Presentation Patanjali Ayurved
Introduction to Patanjali Ayurved
- In 2006, Baba Ramdev and AcharyaBalkrishna established the Indian commercial products business Patanjali Ayurved.
- The firm has its headquarters in Uttarakhand, India’s Haridwar.
- A significant producer of organic and Ayurvedic goods, encompassing meals, cosmetics, dietary supplies, and pharmaceuticals, is Patanjali Ayurved.
The business is well renowned for supporting Ayurveda practices and employing natural components in its goods. The company’s concentration on encouraging the employment of conventional Indian medicines and natural therapies has helped it gain popularity both in India and abroad.
Situation Analysis
- Market Dynamics: The FMCG marketplace in India is projected to reach a value of over $65 billion and expand at quite a CAGR of 10-12% over the next few years (Acharyaet al. 2021).
- Industry Trends: Indian clients are becoming more wellbeing and choose sustainable and organic goods. E-commerce sites are also becoming increasingly popular for buying FMCG goods.
- Earnings: Patanjali Ayurved made about INR 9,000 crores ($1.2 billion) in revenue during the 2020 fiscal period (Patanjaliayurved.net, 2023).
- Expected profits: During the fiscal year 2020, the industry’s net revenue margin was about 7.5%.
In the Indian FMCG sector, Patanjali Ayurved seems to have a solid brand presence and merchandise line. According to keep up its development trajectory in the long term, the business must overcome its flaws and outside challenges.
PESTEL Analysis of Malaysia
| Political | The political landscape of Malaysia is secure and it is a constitutional monarchy. Nonetheless, the political climate of the nation might occasionally be unexpected, and it’s possible to encounter administrative barriers to joining the industry (Tsangaset al. 2019). |
| Economic | In 2020, Malaysia’s GDP is projected to be approximately $336 billion. The demographic is sizable, the middle class is expanding, and thus is a market for ecological and sustainable goods (Suryakumar et al. 2023). This offers Patanjali Ayurved the chance to get into the market and rising demand. |
| Sociocultural | The people of Malaysia come from a variety of ethnicity and religious backgrounds. The nation strongly favours conventional remedies and organic cures due to its rich cultural past (Romanovaet al. 2021). This offers Patanjali Ayurved the chance to advertise its ayurvedic goods and capitalise on its well-known brand. |
| Technological | Malaysia has a strong technology platform, with a substantial smartphone and online adoption rate (Loiziaet al. 2021). This gives Patanjali Ayurved the chance to use online promotion and e-commerce to attract a larger readership. |
| Environmental | Global warming, deforestation, contamination of the environment,, and other environmental issues affect Malaysia (Mehta et al. 2020). The healthy and ethical product concentration of Patanjali Ayurved may be compatible with Malaysia’s customer inclinations and environmental objectives. |
| Legal | Guidelines are in existence in Malaysia’s complicated legal framework to protect users and advance fair competitiveness (Petrauskieneet al. 2020). To join the marketplace, Patanjali Ayurved must adhere to local laws and receive the required licensure and credentialing. |
Consequently, Malaysia offers Patanjali Ayurved the chance to tap into a market that has a high affinity for organic and conventional goods. The country’s advanced online architecture offers the business the chance to increase its global footprint.
Micro analysis of Malaysia
The selected country is Malaysia as it possesses a growing market with a large market area with favourable competitive considerations.
| Competitor analysis | Renowned national as well as global corporations will compete with Patanjali Ayurved for customers’ business in the market for natural and organic goods (Nagarajan and Duggal, 2019). Local businesses with strong brand awareness and distributing skills, like Biogreen and Pureen, might have a competitive edge. |
| Market trend | To reach Malaysian clients, Patanjali Ayurved ought to create a specialised marketing plan. This could involve joint ventures with regional influencers, specialised online marketing, and in-store events. The business could need to set itself apart from well-known companies and emphasise its own value offer. |
| Consumer Attitude | Malaysia’s demographic is varied, with a wide range of ethnic and religious traditions. It’s possible that Patanjali Ayurved could be forced to modify its product line and promotional approach to accommodate various consumer demands. The business may target people who are concerned about their wellness and want ecological and natural goods. |
The launch of Patanjali Ayurved in Malaysia offers a chance to capitalise on the rising trend for pure and organic goods. To thrive in the marketplace, the firm will have to build a customised branding and promotion plan while overcoming obstacles relating to local competitors, the legal frameworks, and distribution networks.
PORTER’S 5 FORCES
| Threat of new entrants:
(Moderate) |
The industry for ecological and ethical commodities in Malaysia faces a mild challenge from new competitors. Despite the industry’s expansion, it may be challenging to compete with renowned nationally and globally. |
| Bargaining power of suppliers:
(Moderate) |
In Malaysia, providers have a considerable amount of negotiating leverage. In order to get raw components and supplies, Patanjali Ayurved might have to develop ties with local vendors, but the focus placed by the business on internal manufacturing and consolidations may assist to reduce the dependency on local vendors. |
| Bargaining power of buyers:
(Moderate to High) |
In Malaysia, purchasers have a medium to strong degree of negotiating leverage (Patanjaliayurved.net, 2023). Customers may choose from a variety of healthy and organic items, and depending on the pricing and reliability of the item, they may be able to quickly change brands. |
| Threat of substitutes:
(High) |
In Malaysia, the marketplace for green and ethical commodities faces a serious challenge from alternatives. Other goods or brands that provide comparable advantages at a lesser cost may be chosen by customers. |
| Competitive rivalry:
(High) |
The market for ecological and sustainable goods in Malaysia is extremely competitive. In order to stand out from recognized global and national businesses, Patanjali Ayurved might have to offer distinctive products and employ regional marketing tactics. |
Ultimately, Patanjali Ayurved will have to negotiate a highly saturated marketplace with limited leverage from providers and customers, even while the Malaysian marketplace for green and natural goods offers the company a chance to grow its operations.
Market Entry Mode
- The market entry mode of Patanjali Ayurved in Malaysia can be through partnerships with local retailers or online platforms to increase its reach and visibility.
- The company can also consider establishing a subsidiary or acquiring a local company to leverage local knowledge and expertise (Padhi, 2020).
The mode of entry may depend on various factors such as the company’s resources, market requirements, and regulatory environment.
Marketing Index
- Patanjali Ayurved may need to focus on adapting its products to suit local tastes and preferences, establishing local partnerships, and complying with regulations to succeed in the Malaysian market (Sahaet al. 2021).
- The marketing index may vary over time depending on how well Patanjali Ayurved is able to leverage its strengths and opportunities while addressing its weaknesses and threats in Malaysia.
The marketing index of Patanjali Ayurved in Malaysia can be influenced by factors such as its brand reputation, product range, pricing strategy, distribution channels, and promotional activities.
Market Entry Strategy
- To increase its marketing infrastructure in Malaysia, Patanjali Ayurved might collaborate with regional merchants.
- By establishing a regional headquarters or collaborating with a regional wholesaler, Patanjali Ayurved can build a local footprint in Malaysia (Priyaet al. 2019).
- To increase its marketing infrastructure in Malaysia, Patanjali Ayurved might collaborate with regional merchants.
Localisation will enable the business to engage more people nationwide and make itself more accessible to them. Local collaborations will make it easier for the business to build connections with vendors, merchants, and certain other market participants. Localise product ranges will enable the business to reach more people nationwide and make itself more accessible to them.
Market STP
- The marketing STP (Segmentation, Targeting, Positioning) of Patanjali Ayurved in Malaysia includes identifying and targeting segments that are interested in natural and herbal products, positioning the brand as a cost-effective alternative, and adapting its product offerings to suit local preferences and requirements.
- The company can target health-conscious consumers, position itself as a natural and cost-effective brand, and adapt its products to suit local tastes and preferences to succeed in Malaysia’s competitive market (Bhandari and Kattel, 2020).
Figure 1: Market STP
(Source: Self-created)
The STP of Patanjalihas demonstrated the segmentation, targeting and positioning in the market context.
4p’s of Marketing
- Marketing was identified as an important element assisting businesses to focus on developing better strategies to tagged their customer
- This has included elements of “product, price, place and promotion” activities in improvement of operational abilities in future (Sudari et al. 2019).
- It improves organisational abilities in communication and collaboration management opportunities for overall value creation opportunities in price development opportunities in future.
Patanjali following this strategy would be benefited through in-depth understanding of Malaysian market and develop appropriate strategies accordingly.
Product
- Pathajali’s focus on developing ayurvedic and quality skin care products would be beneficial for improving organisational marketing effectiveness in developing effective products.
- Improvement of organisational abilities of Patanjali in improvement of overall quality management activities in personal care product development would be beneficial for attracting customers.
- This would enhance Patanjali’s abilities in caputing ne of the largest and biggest industries in Malaysia with personal care and beauty management products.
Beauty and personal care market was identified as one of the fastest growing industries with revenue generation of $2.88 billion in 2023 (STATISTA, 2023). Further, this would be beneficial for Patanajali in attending to market needs and improving organisational abilities in Malaysia.
Price
- Patanajali has developed a cost effective strategy for customers to reach out to a larger number of customer base.
- Managing similar cost and pricing strategies would be beneficial for businesses to improve organisational abilities in gaining attraction from customers as well (Tarsakoo and Charoensukmongkol, 2020).
- This would be essential for organisational opportunities emphasising on greater aspects of providing natural and quality products to customers.
Effective management of pricing strategy along with maintaining highest quality of products has increased opportunities for Patanjali in developing an effective brand reputation. This would have positive influence for businesses to increase operational abilities while attracting a wide range of customers in developing nations such as Malaysia. Further, it would be also beneficial for providing cost effective products to a larger number of customers lacking personal care products due to high price issues.
Place
- Traditional marketing management approaches were identified as appropriate approaches for businesses in Malaysia.
- However, increasing scope for businesses to incorporate digital marketing activities has significantly increased opportunities for organisations in management of sales opportunities (Garg et al. 2020).
- Effective management of omnichannel business marketing activities through integration of both online and traditional approaches of organisational development would be beneficial for Patanjali.
Patanjali intending to enhance their abilities in foreign markets such as Malaysia would be benefited through development of omnichannel processes of business management. In addition, extensive focus on management of operational abilities in sales would be benefited through application of traditional sales opportunities in Malaysia.
Promotion
- Promotion is essential for businesses to enhance customer awareness on brand identity and value creation opportunities by providing associated products and services (Sun et al. 2020).
- Patanjali focusing on development of traditional promotion abilities by representing billboards on main roads and places with heavy footfall would be beneficial for attracting customers in Malaysia.
- On the other hand, promoting through online media would be beneficial for Patanjali to attract customer from new generation.
Similar to place management for sales, integration of both online and offline channels in promoting products for Patanjali would be beneficial for management of greater approaches of operational performance improvement activities. Thi organisation focusing on developing greater marketing elements development and social media integration along with transitional marketing elements would be essential for improvement of brand identity of Patanjali in Malaysia.
Competitors analysis
- Beauty and personal care industry in Malaysia was identified as the most competitive one.
- “Elianto, Duck Cosmetics, NITA Cosmetics, Simplysiti, Fame cosmetics, SILKY, Chique Cosmetics, Velvet Vanity Cosmetics” were recognised as major beauty brands cheating challenges for businesses like Patanjali to operate in Malaysia.
- However, possibilities of 13% CAGR in growth of beauty and personal care businesses in Malaysia has created issues for businesses like Patanjali to attract a customer base in future (STATISTA, 2023).
High competition in a market creates challenges for new businesses to manage positive sales and profitability approaches. As narrated by Frost (2020), high competition driving low pricing strategy for accusation of a wide range of customers has increased issues related to high profit management in an organisation. This has indicated that Patanmjali would be required to develop appropriate approaches of pricing and quality management activities for organisational performance improvement abilities. Additionally, this business would be benefitted by focusing on sustainable and quality management opportunities for Patanjali in improving focus on sustainable and green approaches of organisational performance improvement abilities in Malaysia.
SWOT Analysis of Malaysia
| Strengths | Weaknesses |
| ● Cost-Effective: PatanjaliAyurved’s products are cost-effective, which may attract price-sensitive consumers in Malaysia. | ● Language Barrier: Patanjali Ayurved may face communication challenges due to the language barrier in Malaysia (Venkatesha and Ramanagara, 2022). |
| Opportunities | Threats |
| ● Partnerships with Ayurvedic Practitioners: Patanjali Ayurved can collaborate with Ayurvedic practitioners in Malaysia to increase brand awareness and reach (Durge and Kadam, 2019). | ● Competition: The natural and herbal product market in Malaysia is highly competitive, with established brands already operating in the market.
● Strict Regulations: Malaysia has strict regulations on the sale and advertising of traditional medicines, which may impact PatanjaliAyurved’s product offerings. |
Patanjali Ayurved may need to leverage its strengths and opportunities while addressing its weaknesses and threats to successfully enter and operate in the Malaysian market. The company may need to adapt its products to suit local tastes and preferences, establish local partnerships, and comply with regulations to succeed in Malaysia.
Distribution Strategy
- Patanjali used a direct-to-consumer distributing strategy, selling its goods both in-person and online via its individual retail outlets.
- Eventually, Patanjali implemented a multi-channel distribution network as it grew its product range and explored market opportunities (Samuels-Ballantyne, 2020).
- This marketing plan called for selling the company’s goods through a variety of outlets, including conventional brick-and-mortar retailers, contemporary retail chains, and online shopping portals.
In order to increase its retail footprint, Patanjali has also employed franchises as a distributing method. In many regions of India, the business has set up franchisee-run shops that only offer Patanjali goods.
Promotion Strategy (AIDA Model)
| Attention | In order to draw prominence to its commodities and distinguish itself from rivals, Patanjali may employ attention-grabbing strategies like eye-catching branding, sponsorship, and memorable phrases. |
| Interest | After attracting potential clients’ awareness, Patanjali must pique their enthusiasm in its goods (Sarkar, 2021). |
| Desire | In order to arouse desire, Patanjali may employ emotional arguments through social evidence, such as by demonstrating how its goods have enhanced the existence of individuals and by emphasising the special qualities and advantages of its offerings. |
| Action | In order to entice people to purchase its merchandise, Patanjali may employ attractive deals, time-limited discounts, and freebies. |
The AIDA methodology enables Patanjali to create targeted advertising that is specific to every phase of the client journey, boosting the efficacy of its marketing engagement and boosting sales.
Recommendation
- The company’s attention towards digital marketing can enhance sales and market presence.
- Emphasising the quality of the products will help in promoting advantages of ayurvedic products (Singh and Gautam, 2020).
Improvement in packaging and designing helps in establishing a high competitive edge in the marketplace respectively.
Conclusion
- The respective research analysis concludes the market entry strategy and significance of Patanajali.
- Based on which the selected country attained is Malaysia for future growth of the company.
The research analysis supports attainment of successive simulation of different marketing and promotional frameworks.
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