Group – 9

Anupama Bara PGP18014

Apurv Karwa MBA19093
Jahanvi MBA19107
Neeraj Dhelariya MBA19122
Ravi Shekhar MBA19136
Soumik Das MBA19150
 ROOH AFZA
In 1907 in Ghaziabad, Rooh Afza was formulated by Hakeem
Hafiz Abdul Majeed as a cooling agent and a remedy for loo
for the hot summers. After surviving the partition, Rooh Afza
was started manufacturing in Pakistan. And now since 1948 it
has been served in India, Pakistan and Bangladesh. With the
popularisation of carbonated drinks there was drop in sales in
the late 1990s and early 2000s. And then the brand revamped
its strategies, started new campaigns and hired brand
ambassador. Today, the sales are yet again in the declining
phase – not due to the lack of demand but due to the lack in
supply. In the month of Ramadan when the supply is at its
peak the Hamdard Laboratories failed to supply the demand.
DECLINE IN THE SUPPLY OF ROOH AFZA
India experienced a certain decrease in supply of Rooh afza in the Indian Markets and currently it is unavailable in
various cities. Being a major part of Iftaar the shortage of Rooh afza during the month of Ramzan created a buzz
on the social media. Even online the syrup was unavailable and where ever it was available it was highly priced.
 Marketing Analysis in Kashipur
Retailer Quantity Demanded Quantity supplied
Ambika Kirana Store 40 20
Lalman Das Chotalal 15 5
Sankar Ice-creams 80 80(as paid in advance and
ordered from Ghaziabad)

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

Quantity demanded Quantity Supplied

 SUPPLY FUNCTION
IMPACT ON THE SUPPLY SIDE
Sx = f (Px , Pr , W , H)
where,
Sx = Supply for Rooh afza
Px = Price of Rooh afza
Pr = Prices of Related Goods
W = Price of wage rate on Input
H = Other variables

FACTORS AFFECTING THE

SUPPLY
• Season
• Availability of Herbal ingredients
and other ingredients
• Change in government
regulations and taxation rate
• Rumour of Family feud

So : Initial supply curve

Si : Shifted supply curve during the supply shortage
I M PA C T O N T H E D E M A N D S I D E DEMAND FUNCTION

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

FACTORS AFFECTING THE

DEMAND

• Season(Demand is more for

summer)
• Price
• Consumer tastes
• Other factors such as festivals
Do : Initial demand curve
Di : Shifted Demand curve due to increase in demand
IMPACT ON THE MARKET • Due to the shortage of
supply in the market, there
was a situation of demand
supply mismatch

• This gave rise to a scenario

of black marketing of Rooh
Afza

• Available and old stocks

were sold at a higher price

• Some bought the product at

a price higher than the
actual price with as much
as paying Rs 25- 30 extra
So : Initial supply curve
Si : Shifted supply curve during the supply shortage
Do : Initial demand curve
• Some consumers were also
Di : Shifted Demand curve due to increase in demand
Ao : Actual price
ready to buy the product at
Ai : Price in the black market
Bo : Usual Quantity supplied
a price double of it
Bi : Reduced supply in the market
Eo : Equilibrium point with normal conditions
Ei : Equilibrium point in case of black marketing
 ROOH AFZA AND ITS SUBSTITUTES
Rooh Afza
Rooh Afza includes herbs,
fruits, veggies, flowers, and
roots. RoohAfza helps in
Dehydration, Cardio Vascular
Health, Cooling Effect.
Price: Rs 140 for 750 ml
Market share: 48%
Patanjali Gulab Sharbat Guruji Rose Sharbat
A cooling sharbat syrup by It is fabricated from fruit or
Patanjali,India. It is an flower syrups. Rose water
ayurvedic proprietary contains a number of
medicine and helps against antioxidants. It’s a mood
dehydration. enhancer and can be calming
to the nerves.
Price: Rs 100 for 750 ml Price: Rs 130 for 750 ml
Market share: 22% Market share: 5%
Dabur Sharbat-E-Azam
It is made up of several herbs
and fruit and vegetable
juices.Its ingredients include:
Several juices, Distillate of
vegetable and herbs
Distillate of Keora, Distillate of
Gulab and Basil Oil.
Price: Rs 130 for 750 ml
Market share: 18%
CONSUMER PREFERENCES

As per the survey conducted to understand the consumer preference

 Almost 80% of people prefer Rooh Afza over its substitute
 On average every one consume 2-3 bottle per year
 69% of the people are unwilling to buy substitute even when Rooh
Afza is not available
Concentration Ratio
C4 Ratio : It is the fraction of total industry sales
produced by four largest firms in an industry. Sales

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

Response to price reduction:

• There is scope for price competitiveness in the market:
If one firms lowers price others will match price cut, If one firm
increases price rivals will not try to match it. Engagement in gaining
greater market share on the basis of quality, advertisement etc

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

From these 4 parameters, we establish that the market is Sweezy

Oligopoly
THANK YOU