Friday, January 13, 2006
posting after a looong time...
back to blogging after a long time.... i wud be lying if i say that i have been too busy to blog...infact have had quite a leisurely time for the last few days...found out that i would be going to delhi in feb as part of the college's selection process....yipee :-)
the long awaited sessions by apte sir started....we have been asked to study interesting retail issues around us....huh..never thought finding a problem could also be issue :-)
urs truly and mala were sitting and pondering over stuff when we stumbled over this.....if circulation is all that matters for a newspaper...how can economic times price the weekend newspaper at Rs 10/-...i mean obviously the demand for a business newspaper on weekends will be less...on the face of it...u can't increase price when the demand is low....its obviously a pricing issue...would like to find out what kind of data is bennet and coleman's decision based on...
another problem that we have decided to cover is to undertake a comparitive study of the business models of both the subiksha cjain of stores and perhaps a foodworld...totally different ways...different inventory turnaround cycles....different ambience...world of difference...
onething that i definitely want to take out of Apte sir's sessions is the way he can shatter uur argument to pieces....u better know what u r talking about !!!!
hmm...since problems are the flavour of this post...take this....a 7 ml pantene sachet costs Rs. 3/- and a 100ml bottle costs Rs 52/-...sachets are obviously cheaper...and there is nothing thats stopping a customer from buying only sachets..but why the hell are bottles still selling....
food for thought ????
the long awaited sessions by apte sir started....we have been asked to study interesting retail issues around us....huh..never thought finding a problem could also be issue :-)
urs truly and mala were sitting and pondering over stuff when we stumbled over this.....if circulation is all that matters for a newspaper...how can economic times price the weekend newspaper at Rs 10/-...i mean obviously the demand for a business newspaper on weekends will be less...on the face of it...u can't increase price when the demand is low....its obviously a pricing issue...would like to find out what kind of data is bennet and coleman's decision based on...
another problem that we have decided to cover is to undertake a comparitive study of the business models of both the subiksha cjain of stores and perhaps a foodworld...totally different ways...different inventory turnaround cycles....different ambience...world of difference...
onething that i definitely want to take out of Apte sir's sessions is the way he can shatter uur argument to pieces....u better know what u r talking about !!!!
hmm...since problems are the flavour of this post...take this....a 7 ml pantene sachet costs Rs. 3/- and a 100ml bottle costs Rs 52/-...sachets are obviously cheaper...and there is nothing thats stopping a customer from buying only sachets..but why the hell are bottles still selling....
food for thought ????
|| Anish, 12:52 PM
6 Comments:
hmmm..looks like u found yourself some problems alright..and sounds like your senior looked into them too...well..i really dont have much to add..but what the hell..wanted to say hi!
Hey Anish.. Interesting thought.. Even I wondered abt this.. Untill I came across this VP marketing,ET guy. He adressed this point very clearly.. He says that weekdays the audience for him are students. Whereas, weekdays his audience is entirely senior management professionals who want strategic stuff.. Infact he even offered scmhrd students at something like 1 buck a day but only for week days.. coz his audience were 'us'.
...I see you have been doing some "orginal thinking" as Apte Sir likes to put it :)
You seem to have ure answers for the ET thing...now for the Shampoo, something I'd add:
- Its not the price/qty that determines the offtake, its the "usage" as Abhinav also said. A simple customer when knows that he will need shampoo again in 3-4 days would rather have an easy-t-use bottle than a messy sachet.
- Also, the purpose of sachets is also to induce trial, it HAS to be cheaper than bottle, even on price/qty.
- Another purpose for a sachet is that, the brand-loyalty of a sachet user has been found to be lower than a bottle user in most cases. Its more of a commodity. Hence, the sachet is also a smaller SKU that kinda acts a flanker against the other sachets in the market. Its like if it has to be a sachet...let it be mine...
You seem to have ure answers for the ET thing...now for the Shampoo, something I'd add:
- Its not the price/qty that determines the offtake, its the "usage" as Abhinav also said. A simple customer when knows that he will need shampoo again in 3-4 days would rather have an easy-t-use bottle than a messy sachet.
- Also, the purpose of sachets is also to induce trial, it HAS to be cheaper than bottle, even on price/qty.
- Another purpose for a sachet is that, the brand-loyalty of a sachet user has been found to be lower than a bottle user in most cases. Its more of a commodity. Hence, the sachet is also a smaller SKU that kinda acts a flanker against the other sachets in the market. Its like if it has to be a sachet...let it be mine...
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Help, please. All recommend this program to effectively advertise on the Internet, this is the best program!
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As for ur sachet query , i guess most of the customers realize that sachets are actually more expensive because once u open them , u tend to finish all of the shampo inside. If u use half of the shampoo in a sachet , it tends to create a mess while bottles give u flexibility of using as much ( or rather as litle) as u want . In fact the companies realize it much better and that is why they price bottles higher to try and shift the consumers to sachets.