Saturday, March 8, 2008

Any P more than 4Ps ?




Adding any P to 4Ps in the Marketing mix model may be like adding a leg to a 4 legged Table. But I always feel Market mix model lacks good fitment in few scenarios.
Timing of a Product sale or launch ( Period – 5th P ) shall the models’ fitment in most of scenarios.

The model shall be explained through following case.

TVS launched its first 4 stroke 150 cc Scooter in 1998 with price tag Rs. 39,000 /- and Honda launched its Honda Activa Model 4 Stroke 100 CC in 2001 with tag of Rs 39,800 /-.

Comparing these two products, Spectra was much better product in all aspects of 4Ps but the product failed miserably.
Pure timing was the issue with Spectra launch, during 1998s Bajaj cub available at Rs 23,000/- Market could not feel the environmental advantages with 4 S engines.
By the time of Honda launch Bajaj cub or Chetak phased out from the market, leaving a vacuum for Honda to fill in. Many more examples shall be given as support “Period” shall be another P candidate in Marketing mix Model.

Just Noticeable Changes - Unnoticed




Recent article about Nestle Maggi just fascinated me, Indian are largest consumers of Maggi (so called Chinese noodles), Nestle revived the brand Maggi and launched may variants, It has even roped actress Preity Zinta for its advt.I did small research how much premium we pay for these variants (only on veg..), Interesting out come Nestle steals consumer by called " Just noticeable change "Regular (Masala & Curry) 100gm pack cost us Rs. 10.00Dal - Atta varients 90 gm pack cost us Rs. 13.00 with premium of 44%Rice noodle varients 83 gm pack cost us Rs. 15.00 with premium of 80.72%These new variants are not 100 gm pack as we think they are 90 gms and 83 gms packed as if it resembles 100gm ( Do we have regulator to watch standard pack sizes ? )

Convienient Pricing




Recently I read a market share analysis in a Business daily that “Parle G” still tops in sale in low priced biscuit segment, “Tiger biscuit” never able to succeed this particular segmnt.Interestingly in this segment Parle G ( 75gm ) is priced at Rs. 5.00 and Tiger biscuit ( 90gm ) priced at Rs. 4.00. If we go by common sense in this segment those who buys Parle G pays 50% extra for the same qty of Tiger. Still Parle G leads….I try to explore why this unnatural thing happening in so called low price segment. One more statistics said 73% of this segment sales happens at corner shops and petty shops ( small tea or four wheeled pan shop or 4” X 4” make shift shops ).I raised one question to myself “Are these buyers are such brand specific buyer who prefers his brand with higher cost of 50%?”I decided to see how this sale happening and stood near a shop ( a tea shop opposite to MDI ) a kid came gave Rs. 5.00 coin and asked for a biscuit pocket. The shop owner took Parle G pack and took the coin. What prevented him to sell Tiger biscuit? Nothing, laziness!! If he sells Tiger he needs to give one rupee back. His convenience decides the Brand.Why cant our fellow brothers in Britannia look at this point, they can maintain the large pack size ( to keep customer happy ) and increase the price by a rupee and pass some extra bucks to shopkeeper ( to keep shop keeper happy )There is one more thing governs more than 4Ps in marketing, that is Common Sense.