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ME Group9
ME Group9
Chart Title
• Due to decline in the supply the
90
80 retail stores where unable to get the
70 desired amount of order
60
50 • Some stores and vendors ordered
40
stock from outside Kashipur in
30
20
advance well before the summer
10 season.
0
Ambika Kirana Store Lalman Das Chotalal Sankar Ice-cream
Dx = f (Px , Pr , M , F , S)
where,
Dx = Demand for Rooh afza
Px = Price of Rooh afza
Pr = Prices of Related Goods
M= Income of the Consumer
F= Festival
S = Seasonal Affect
Rooh Afza includes herbs, A cooling sharbat syrup by It is fabricated from fruit or It is made up of several herbs
fruits, veggies, flowers, and Patanjali,India. It is an flower syrups. Rose water and fruit and vegetable
roots. RoohAfza helps in ayurvedic proprietary contains a number of juices.Its ingredients include:
Dehydration, Cardio Vascular medicine and helps against antioxidants. It’s a mood Several juices, Distillate of
Health, Cooling Effect. dehydration. enhancer and can be calming vegetable and herbs
to the nerves. Distillate of Keora, Distillate of
Gulab and Basil Oil.
Price: Rs 140 for 750 ml Price: Rs 100 for 750 ml Price: Rs 130 for 750 ml Price: Rs 130 for 750 ml
Market share: 48% Market share: 22% Market share: 5% Market share: 18%
CONSUMER PREFERENCES
C4 = (S1 + S2 + S3 + S4)/ St
7%
= 0.48 + 0.22 + 0.18 + 0.05 5%
= 0.93
18%
48%
Herfindahl-Hirchman Index
It is the sum of squared market share of firms in a given
industry multiplied by 10,000
22%
HHI = ( S1^2 + S2^2 + S3^2 + S4^2 + S5^2)*10000
= (0.2304 + 0.0484 + 0.0324 + 0.0025 + 0.0049)*10000
Rooh Afza Patanjali Dabur Guruji Others
= 0.3186*10000
= 3186
SWEEZY OLIGOPOLY
Few firms serving many consumers:
• Since C4 concentration ratio is 0.930 and HHI is 3186, the
concentrated Syrup Market in India is highly concentrated
Differentiated Products:
• 110-year old Hamdard Roof Afza is made from 10 natural herbs which
makes Roof Afza sharbat the first choice of many health enthusiasts.
Besides cooling, it helps in Dehydration, Cardio vascular health,
indigestion, giddiness, kidney, numbness and stomach ache. It also
cover 48% of market
Entry Barriers:
• Since market share of a few firms is too high, these firms won’t allow
any new bigger player in the market.
The Logistic needed for the coverage of market at larger scale is
highly capital intensive