There are many forms of faking something Let me explain,
1. There could be some, who probably make duplicate copies of Durga packaging and sell god knows what in that package there by damaging the original brand. VICL can act against them as they have genuine case.
- However another form is, seeing the success of Durga packaged ghee, there are competitors who have launched packaged ghee with similar sounding names. Like “Devi Durga” ghee here. The adv. features one of Odia film super hit heronie from past.
https://www.youtube.com/watch?v=xpFdKs0ncdo
In such cases, it probably takes offer of higher incentive to channels to stock it. Which maybe relates to your second point about dealer network not stocking Durga ghee.
For customers, maybe the durga brand recall isn’t strong enough to postpone purchase or go looking for it to other stores when it’s not available in one store.
This form of competition is hard for Durga to do anything about except spending on A&P which we can expect to be matched by the competitor.
Overall, it’s probably a decent business not a superlative one
Yaar, why only compare PE’s between higher ranked players and expect/hope the smaller players to catch up. We need to put other things like comparative Returns on Equity, Asset Turnover, Working capital management, payout ratio in the perspective as well ?
Regards
Raja
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