IIM, Ahmedabad puts Divya Bhaskar under the microscope
August 16, 05
Noor Fathima Warsia
One of the most frequently cited examples of print success is the Bhaskar Group. Such has been the group’s success in Jaipur and Gujarat that is studied by various market observers.
India’s premier management institute – IIM, Ahmedabad – has brought the Divya Bhaskar case under the microscope, pointing out reasons why the number one in the market – Gujarat Samachar – should still be a reason for worry, while Divya Bhaskar’s Executive Director, Bharat Kapadia, argues why Divya Bhaskar is already on the road to the top.
Presenting the case, IIM-A’s Dr Piyush Sinha mentioned the Bhaskar formula first. He began, “The Bhaskar formula was already seen in Jaipur, but Gujarat was a completely new terrain. Ahmedabad has two newspapers that had already carved a niche and were happy to play the game against each other, and many times, together.”
Sinha pointed out that where Bhaskar was faced with the question of where would growth come from in a duopolistic newspaper environment, it was this very nature of the market that provided the answer. In any duopolistic market, the consumer is taken for granted, consequently s/he gets bored with the content and seeks a newcomer.
“Newton’s Law actually makes sense here – there is loyalty, which plays the role of inertia, then there is customer value based offer, which serves as force, and finally competitor reaction – equal and similar,” observed Sinha.
He added that it was Bhaskar’s strategy of consumer research that ignited dissatisfaction, built a connect with the reader and finally was even used to show gratitude – all in all, building relationship with the reader that would establish the brand strongly in the market. He noted, “In two of Divya Bhaskar’s entries, the Gujarat newspaper market itself expanded by 50 per cent, as per the NRS.”
Even as this was a very positive outcome of Divya Bhaskar’s entry, there are.