Showing posts with label Distribution. Show all posts
Showing posts with label Distribution. Show all posts

Saturday, February 27, 2010

Customer Service Or Great Product

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Sundaram Motors Petrol Bunk at Whites Road in Chennai has always been regarded as the bunk that delivers pure fuel. Well, I believe it is an open secret that 'all' petrol bunks usually make an additional margin by mixing petrol with 'cheaper additives'. As we know it is a regulated market, the bunks usually make very little margins per liter over a lock-in of expensive realty.

Many would have heard of Manjunath, the IIM Graduate who was murdered by bunk owners indulged in such unscrupulous practice. Pity! But that makes a completely different topic for discussion.

Back to Sundaram Motors. Well there is always a huge line at the bunk. While earlier it were those who wanted to preserve their engines, today, I think it is simply because processes haven't kept pace with the changes in technology and the customer-focused initiatives of the oil marketing companies. One has to park the vehicle in line, walk down to a counter, make the payment and bring the bill to fill in their tanks!

With every fuel marketing company having their own quality and quantity assurance program, the competitive advantage gap of ‘pure fuel’ may have been a lot narrowed. The petrol bunk, in general, have started taking customer experience very seriously. Right from billing to a check up of your vehicle. Almost everything is offered to you. Filling, billing and collections happen at one point.

Now as for the customer, what does he do? Does he go through a bit of inconvenience to get the best product or he doesn't mind a 'slightly compromised' product for better customer service. My guess, from a bit of understanding of how I act and people around behave, we prefer comfort. Yes, we do desire for the best but often do not go the extra mile, if we have to, to make purchase. A look at the opportunity cost clearly tilts the favor for us to make compromised purchase decisions, most of the time.

What is more interesting to note about Sundaram Motors petrol bunk is that they have strict operating time. They have a proper one hour lunch break! If you go on a national holiday, be surprised to find it closed. I somehow get a feeling that Revenues may not on top of the mind for the Sundaram Motors. Surprises me!

Does this mean that the bunk will close down? No. On the contrary, it will always be crowded. If not for loyal customers, then for the legacy customer unfriendly processes.

Wednesday, January 6, 2010

Piracy Is Good (Part Deux)

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Well, I said it earlier. Piracy is good!

Newspapers say that Jaggubhai, Sharatkumar-starrer and KS Ravikumar directed flick, is now available on internet. Oh by-the-way, the movie hasn’t been completed, yet. At least earlier, the movies were copied only in theaters after release or from the originals that were sent overseas. Now, they are being copied in editing rooms!

Technology is making digital reproduction and distribution easier. Also, we know crooks will always be one step ahead. It is ‘mission, impossible’ for the cinema industry.

The report says that Radhika Sharatkumar, wife of Sharatkumar, complained to M Karunanidhi. I can only laugh. J Jayalalitha, ex-CM, was far better in controlling piracy during her regime.

Of course, try, try and until you fail, again.

So as I had said earlier, instead of fighting piracy, make the best use of the technology. The pirated movies are available for a meager Rs. 40. And that booty is going to “pirates of the ‘cinemawood’”. Take it, guys! There is money to be minted. There is an existing distribution channel.

Those who love watching movies in theatre for the experience will anyway watch it in theatres. For those who think cinema is an expensive proposition, which I am sure is a huge segment, will benefit from this change in strategy.

Of course, the cinema industry has already started releasing movies on DTH platform. So what stops them from selling on inexpensive storage formats? Since prices points are low, there will be no entry barrier for purchases. This means that everyone will want to own a copy rather than circulate amongst each other. Well even if circulated, it is fine. As long as the cineconomy has made some money, it is fine.

Well, if the cinema industry doesn’t listen, what can be done? As the Kalyani Beer ad says – what goes my father, it’s your funeral!

Till things change, selling of pirated movies will continue at ‘Burma’ Bazaars, Subways and at train stations! Right under your nose, Mr. Producer!