Challenges in Operations- Patanjali

References- https://iide.co/case-studies/patanjali-marketing-strategy/
https://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-supplies-
liquor/patanjali-foods-aims-rs-5k-cr-profit-at-ebidta-level-over-rs-50k-cr-in-5-yrs-sees-huge-
growth-potential-in-fmcg-biz/100935662
https://startuptalky.com/patanjali-ayurved-case-study/
https://bstrategyhub.com/patanjali-swot-analysis-2019-swot-analysis-of-patanjali/
file:///C:/Users/lenovo/Downloads/JETIRI006016.pdf
https://businessmodelanalyst.com/patanjali-swot-analysis/- Group’s Reflection.
Challenges in Operations
 Lack of Innovation- There is no advancement without innovation, and there is no
progress without innovation, especially when everything around you is innovating.
Patanjali has not been able to recover from the low growth cycle after the implementation
of the goods and services tax (GST) in 2017. As a result, their revenue fell 10% in fiscal
year 2018. The collapse was caused mostly by the company's inability to adjust to the
GST regime and create infrastructure and a supply chain.
Patanjali was previously the industry leader in natural and organic innovation. However,
the firm has been hesitant to produce new items in recent years. As a result, rivals have
been able to catch up and offer identical goods with superior features and benefits.
Emami, for example, introduced its Navratna Face Wash in 2017, which competes
directly with Patanjali's Kesh Kanti Face Wash. Consumers liked Navratna Face Wash,
which helped Emami acquire market share in the natural and organic face wash sector.

 Lack of Advertising- Patanjali's expansion was hindered by a reduction in advertising.

Patanjali did not invest more in promotion, and as a result, its sales declined since
consumers were unaware of its natural and organic products. This has made it more
difficult for the brand to reach new customers and preserve existing ones' recognition.
Patanjali, for example, cut its advertising budget by 20% in 2018. This was most likely
owing to the company's financial problems. As a result, Patanjali's brand recognition fell,
resulting in lower sales. As a suggestion to tackle this, the firm can spend more on
advertisements. Specifically, the ads should be targeted more towards women as they get
easily influenced whenever they see the health benefits of their family as they buy
Patanjali products more frequently because they are the homemakers.

 Ignoring Competition- One of the primary reasons for Patanjali's collapse is that it
ignored its competition. It is critical for a business to keep an eye on its competition.
Patanjali's success has spawned several rivals, and they have begun to roll out their own
line of natural and organic items. Patanjali was formerly the sole significant participant in
the natural and organic sectors. That, however, is no longer the case. Emami, Himalaya,
and Dabur have all established their own lines of natural and organic products, and they
are eroding Patanjali's market share. Emami's sales of natural and organic products, for
example, increased by 25% in 2018. This was mostly owing to the popularity of its
Navratna Face Wash.

 Poor Management- Patanjali expanded its business outside FMCG after getting
widespread customer acceptance. It became challenging to manage the business verticals
and maintain product quality inspections. As a result, several quality difficulties arose,
resulting in the slowing of its expansion. This has led to problems with quality control,
supply chain management, and customer service. For example, in 2018, Patanjali was
 forced to recall several of its products due to quality concerns. This damaged the
company's reputation and led to a loss of trust among consumers.

 Regulatory challenges: Patanjali is facing regulatory challenges, such as the need to

comply with new food safety regulations. In 2020, the Food Safety and Standards
Authority of India (FSSAI) ordered Patanjali to recall several of its products due to
quality concerns. This was a major setback for Patanjali, and it could make it more
difficult for the company to launch new products in the future.

 Poor customer service: Patanjali has also been criticized for its poor customer service.
In 2021, Patanjali was ranked 32nd out of 35 brands in a customer satisfaction survey by
JD Power. This poor customer service could hurt Patanjali's sales in the long run.
Explain this with reference to the data collected from the source

Bullet Pointers for PPT

 Lack of Innovation- Post-GST adaptation gaps in infrastructure and supply chain. 10%
revenue decline in FY 2018. Competitors gained traction with superior product features.
 Lack of Advertising- 20% reduction in advertising budget (2018). Diminished sales and
brand recognition. Uninformed consumers about natural and organic products.
 Ignoring Competition- Rivals (Emami, Himalaya, Dabur) challenged market share. 25%
sales increase in Emami's natural products (2018). Vigilance in competition is vital for
market leadership.
 Poor Management- Diversification led to quality control and supply chain issues.
Product recalls damaged reputation, and trust. A slowdown in expansion due to quality
concerns.
 Regulatory Challenges- Compliance struggles with new food safety regulations. 2020
FSSAI recall due to quality issues. Regulatory hurdles hindered new product launches.
 Poor Customer Service- Ranked 32nd of 35 in JD Power 2021 survey. Negative impact
on reputation, and sales. Need for improved customer support and engagement.
 Extra Notes for Reference.

 In 2020, the Food Safety and Standards Authority of India (FSSAI) ordered Patanjali to
recall several of its products due to quality concerns. The FSSAI found that these
products were adulterated or misbranded, and they did not meet the required food safety
standards. This was a major setback for Patanjali, and it could make it more difficult for
the company to launch new products in the future.

The FSSAI is a government agency that is responsible for regulating food safety in India.
The agency has been cracking down on companies that violate food safety regulations,
and Patanjali is not the only company that has been ordered to recall products. In recent
years, the FSSAI has ordered the recall of products from several other major companies,
including Nestle, Unilever, and Coca-Cola.

The FSSAI's crackdown on food safety violations is a positive development, as it is

important to ensure that the food that we eat is safe. However, it also poses a challenge to
companies like Patanjali that are trying to grow their businesses. These companies need
to be more careful about complying with food safety regulations, or they could face
costly recalls and damage to their reputations.

Patanjali can overcome this challenge by taking the following steps:

Invest in quality control: Patanjali needs to invest in quality control systems to ensure that
its products meet the required food safety standards. The company can also partner with
third-party testing labs to verify the quality of its products.
Be transparent with its customers: Patanjali needs to be transparent with its customers
about the ingredients in its products and the manufacturing process. The company can
also publish its food safety policies and procedures on its website.
Educate its employees: Patanjali needs to educate its employees about food safety
regulations and how to comply with them. The company can also conduct regular training
sessions on food safety.

 According to the JD Power Customer Satisfaction Survey, Patanjali was ranked 32nd out
of 35 brands in the personal care category. This means that Patanjali is ranked below the
industry average in terms of customer satisfaction. The survey found that Patanjali
customers were dissatisfied with the following aspects of the company's customer
service:
 Product quality: 27% of Patanjali customers were dissatisfied with the quality of the
products they purchased.
 Customer service representatives: 26% of Patanjali customers were dissatisfied with the
customer service representatives they interacted with.
 Ease of doing business: 25% of Patanjali customers were dissatisfied with the ease of
doing business with the company.
 These findings suggest that Patanjali needs to improve its customer service if it wants to
improve its customer satisfaction ratings. The company can do this by taking the
following steps:
 Invest in training for customer service representatives: Patanjali needs to train its
customer service representatives on how to provide excellent customer service. The
company can also provide its representatives with the tools and resources they need to do
their jobs effectively.
 Make it easier for customers to do business with the company: Patanjali needs to make it
easier for customers to do business with the company. This could include things like
improving its website, making its products more affordable, and offering better return
policies.
 Listen to customer feedback: Patanjali needs to listen to customer feedback and take steps
to address their concerns. The company can do this by setting up a customer feedback
system and conducting regular surveys.