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Sep 14, 2016

Weaknesses brand 'Patanjali' should watch out for

Brand Patanjali's galloping success is a rare case in the FMCG industry.
But, is it a brand with no weaknesses? Of course not. Here are some:

1. It's a founder-person brandWhile phrase is a made-up one, I think it explains best the category of brands strongly linked to their founders, like Richard Branson and Virgin, and Salman Khan and Being Human.

A large proportion of the brand's power comes from the person behind it, and that may very well cause trouble. We have already seen how the Lokpal movement died after Anna Hazare moved on. Questions were raised on the future of a brand even as strong as Apple after its founder's death.

In its advertisements, there are other endorsers - Hema Malini for biscuits, Sushil Kumar for ghee. But they are not strongly used to build the mother-brand, nor do they carry any past association with Ayurveda.

2. Product quality being questioned, especially in the food categories
When product quality gets questioned, losses pile up, and even loyal customers bid goodbye. Coke, Pepsi, Maggi... the list of strong brands facing PR nightmares is long. Only some, like Cadbury Dairy Milk, were able to bounce back strongly.

In case of Patanjali, its atta noodles product was highlighted in the news for all the wrong reasons. And with the product range getting wider, the connection with Ayurveda becomes weaker. A tomato ketchup from Patanjali may increase sales in the short term, but I have my doubts on its impact on Patanjali's brand value.

With the new announcement on jeans, the brand association seems to be moving away from 'Ayurveda', and towards 'Swadeshi'. While it will help the brand tap a larger potential, the association seems more 'inside-out' at the moment, and it remains to be seen whether or not consumers also make the same connect.

3. Consumer Dissonance
The biggest success factor for Patanjali is the association with a healthier way of living - Yoga and Ayurveda. This image / perception can trump Science, by evoking association with artificial, cosmetics, chemicals, etc., and can make consumers feel happy that they are moving towards a way of life closer to nature.

But habits are tough to break, and the newly built Yoga regimen will soon be given up in exchange for an extra half hour of much-needed sleep. Then, every purchase of Patanjali would increasingly remind consumers of their broken promises to themselves. Big risk!

If the 'Swadeshi' hook takes off positively among consumers, the 'Ayurveda' association can take a backseat, and perhaps avoid this dissonance altogether. However, with that, the food section of Patanjali's product range will lose its biggest differentiator too. Tough task ahead.


Of course, for now, these are mere theoretical possibilities, and Brand Patanjali can rest on its laurels, as its products continue to topple competition at retail counters. So for now, other brands would simply have to try to ride this wave of healthy living.

Or perhaps, they could stage a comeback using positive associations with science and technology, or by using rational arguments of superior product quality (like Heinz ketchup tried last year)?

What do you think?

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