Divya Marathi now a case study at IIM Bangalore

04 Sep,2012

By A Correspondent

 

The fast paced growth and unique new market launch strategy of Dainik Bhaskar Group, an Orbit-shifting innovative process featured as a case in IIM Ahmedabad, and the successful launch of Divya Marathi, the group’s Marathi newspaper, this time has attracted IIM Bangalore to study and create a classroom case on group’s success through the years.

 

Seema Gupta

Prof. Seema Gupta of IIM Bangalore did a detailed analysis of Dainik Bhaskar group processes in her attempt to understand what makes this group succeed. She met with the senior management across verticals; Editorial, Production, circulation and marketing to deep dive into their independent and cross-functional working. Result; ‘Dainik Bhaskar group: Aspiring Growth’ a case study by IIM Bangalore.

 

The case delves into the history of the group, the aggressive launch strategy, accelerated business growth and robust marketing plan. It strongly points out that launching of a newspaper and venturing into a monopolistic market space is definitely a decision that is governed by the faith in the brand. Considering the nature of the category, where reading habits are relatively strong and the market leaders create high entry barriers including the competition-intensive cut-throat ground zero strategies, it makes for an interesting study in management strategies, processes and execution. Success in such situations cannot just be attributed to the business acumen, understanding of market dynamics and identification of the need-gap within the market. There are other elements like agility, empowerment, passion and high ambition across the employee set that is a real differentiator and helps convert strategies into reality.

 

Elaborating on selecting Dainik Bhaskar Group for the case, Prof. Seema Gupta said, ‘Dainik Bhaskar with its ambitious growth plans exemplifies gutsy business strategy and marketing. It changed the contours of the marketplace by entering into markets with strong and entrenched incumbents. This task was even more arduous considering the nature of the category as it is difficult to change the habit of readers. Newspapers touch the life of every consumer and hence the case would drive strong emotional connect and animated discussion in the classroom. The focus of the company on tier II towns makes it an apt material for case study as small towns would be the drivers of future growth of Indian economy.’

 

The case in detail traces the sustained leadership strategy adapted by Dainik Bhaskar Group over the years. It places importance on the way the group evaluates and  identifies the gap between supply and demand. And the process of creation of a product that truly answers the overt and latent needs in the ever evolving market. It identifies that the core business philosophy of the group remains a singular focus on close in-depth understanding of the consumers’ pulse and being consumer-centric in its product creation.

 

Girish Agarwaal

Speaking about this development, Girish Agarwaal, Director, Dainik Bhaskar Group said, “It is always a moment of pride when an institute of repute like ‘Indian institute of Management Bangalore’ seeks to study the organisation and creates a case study. We do believe that in the process of the case creation and discussion, the group also benefits in getting some raw, unbiased and unfiltered views. We attended the first classroom sessions held on July 20 at IIM-B, where second year students discussed the case. It has been a healthy experience and we respect the level of analysis that the students presented in their understanding of the challenges faced by the group.”

 

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