The Customer Just Lost Choice

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Your call : Who lost the plot : The Producer? The retailer? or Its just the customer who lost choice? Take these examples : (you can add few of the kind from your experiences…) 1. A 40 min run between 2 super markets/ 4 kirana stores/ 2 other stores for a pack of “paneer” cubes; not the one-block pack. 2. A 30 min walk around the Railway station on lookout for a much publicised drink : Coca Cola -Tropicana Pulpy Orange. At last had to settle for a hesitant second preference : Parle Nimbooz The 2 incidents have something in common. Both involve 2 reputed “Producers”: Amul & Coca Cola. Both incidents involve our friendly/ customer oriented kirana stores & recently launched retail chains who took pride/promise to reflect & deliver customer delight. Just getting more into the detail, few subjects of interest : Demand/Supply equation Forecasting (Producer end/Retailer end) Groupism/ Syndicatism Demand/Supply equation : Going by 2 important claims from organizations : (1)Maximizing Profitability through (2)serving customer needs to the best. The Producer/Retailer will have to take eventual ownership in making the above stated happen time and again with consistency for lasting success. Any imbalance, for whatsoever reason, new entrants will start seeing an irresistible opportunity. This opportunity is likely to attract new entrants with much bigger ambitions, bigger than what they would be if the segment was well served by current players. In our example, do we see opportunity for new players who can provide paneer cubes, currently only offered by Amul & under served by Amul/retailer combination. Also, opportunity for another super market/kirana store for a simple reason : the current super market/kirana store combine is not able to serve atleast one need. Sure there would be more. Forecasting : This is a fancy subject of study from bare minimum basics planning to the most advanced resource/consumption/purchase planning & execution. All you need for this is data. Most of them :

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A small experience write-up to initiate dialog/debate

Transcript of The Customer Just Lost Choice

Page 1: The Customer Just Lost Choice

Your call : Who lost the plot : The Producer? The retailer? or Its just the customer who lost choice?

Take these examples : (you can add few of the kind from your experiences…)

1. A 40 min run between 2 super markets/ 4 kirana stores/ 2 other stores for a pack of “paneer” cubes; not the one-block pack.

2. A 30 min walk around the Railway station on lookout for a much publicised drink : Coca Cola -Tropicana Pulpy Orange. At last had to settle for a hesitant second preference : Parle Nimbooz

The 2 incidents have something in common. Both involve 2 reputed “Producers”: Amul & Coca Cola. Both incidents involve our friendly/ customer oriented kirana stores & recently launched retail chains who took pride/promise to reflect & deliver customer delight.

Just getting more into the detail, few subjects of interest :

Demand/Supply equation Forecasting (Producer end/Retailer end) Groupism/ Syndicatism

Demand/Supply equation : Going by 2 important claims from organizations : (1)Maximizing Profitability through (2)serving customer needs to the best. The Producer/Retailer will have to take eventual ownership in making the above stated happen time and again with consistency for lasting success. Any imbalance, for whatsoever reason, new entrants will start seeing an irresistible opportunity. This opportunity is likely to attract new entrants with much bigger ambitions, bigger than what they would be if the segment was well served by current players.

In our example, do we see opportunity for new players who can provide paneer cubes, currently only offered by Amul & under served by Amul/retailer combination. Also, opportunity for another super market/kirana store for a simple reason : the current super market/kirana store combine is not able to serve atleast one need. Sure there would be more.

Forecasting : This is a fancy subject of study from bare minimum basics planning to the most advanced resource/consumption/purchase planning & execution. All you need for this is data. Most of them : Producers/ retailers/ consumers too do not collect data. We all know : Better forecasting means better production planning(for producers), better space utilization and inventory value lockin (for retailers), quicker revenue realization & TAT(for retailers), better choice & availability(for customers).We all win; don’t we?

Groupism/Syndicatism: This is a wicked element which creates a loose/loose scenario. In the stated Tropicana example, even the Indian Railways used to provide the drink as one of their offerings as part of “On train beverage” offerings. For unknown reason, it’s not offered anymore. The supply of this drink apart from Supermarkets is always noticed to be weak. Either I am one outlier who is liking this drink where most other do not (reason for retailer not stocking) or they chose not to stock it for profitability reasons. The one reason I prefer this drink is it is non-carbonated and have real pulp in it. Do we not have a right to choose a healthier option? A quick scan across all outlets on the railways platform, none selling my preference.

Page 2: The Customer Just Lost Choice

Coming to the “Paneer” example, the Heritage neighbourhood store only carries “Heritage” products. The kirana store is out of stock. The “@Fresh(Supermarket)” too does not carry it as they are a Heritage promoted supermarket. So, are their priorities aligned with Customer preference first or Promoting company first? Enticing customer with a similar quality lower price offering is very different from leaving store brand product as the only choice. Have they just drove off a customer?? How come no other brand has thought of offering “Paneer” as cubes.

Now, you can just add any example of this kind you came across and build your case and leave it to debate.

But onething for sure we all would agree : No company which lost sight of Voice of Customer has ever prospered. Similarly, rare for a company to fail which succeeds in getting VOC right and execution right.

Your views please…