With Dainik Bhaskar set to foray into the state next month, competition in the Bihar print media market has further escalated. According to an Assocham report launched in June this year, “Bihar logged in a compounded average growth rate (CAGR) of 20 per cent in public investment between March 2003 and March 2013”. The report further stated that Bihar is growing at a faster pace.
With Dainik Bhaskar’s impending foray, Patna city has been witnessing a cover price war, besides a slew of promotional offers being offered to the readers, along with outdoor advertising.
In a bid to fortify their market shares, three existing players – Hindustan, Dainik Jagran, and Prabhat Khabar – have cut down their cover prices to Rs 2.5 from Rs 4 (Dainik Jagran) and Rs 3 (Prabhat Khabar).
Talking to exchange4media, KK Goyenka, Managing Director, Prabhat Khabar admitted, “Yes, I agree there is a price war going on and it’s a simple strategy to remain in the competitive market. This price war will definitely expand the market space of Bihar and products which are not good will remain at No 4 position.”
He added, “In the initial days, all the players will feel the heat and will lose out some money on circulation, but they will find out a way to balance it. We all are running promotional offers to hold on to our consumers. At the end of the day, it is content which will be the USP and not these promotional offers.”
On the other hand, Hindustan is confident of not losing any readers and revenues. The reason behind this confidence is that the Hindi daily enjoys the largest share of the readership pie in the state.