Saturday, August 14, 2010

And you thought that pamphlet distribution was a piece of cake :)

And you thought that pamphlet distribution was a piece of cake :) Well, think again. So, we had this new experience of distributing our newly minted Fix-All brochures at Kapaleeshwar Temple and Sai Baba Temple in Mylapore. Believe me, in hindsight, it was a strategic exercise. So, as diligent practitioners of management craft, this is how we applied the famed "Porter's 5 forces model" (http://en.wikipedia.org/wiki/Porter_five_forces_analysis) or the extended 6 forces model (http://en.wikipedia.org/wiki/Six_Forces_Model) to pamphlet distributions :)

So, now, the setting is Sai Baba temple entrance, and the target audience in the bunch of devotees, who are either shopping or fighting their way to the temple on thursdaysThursdays. Anyone who has seen this scene will be convinced that this can be really close simulation of perfectly competitive market (for pamphlet distribution). Now, dissecting this scenario based on aforesaid model,
The threat of the entry of new competitors
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Entry barrier is low, as people do not really think too much before accepting pamphlets. After all, these can be used for making planes, imaginary cricket balls, or as tissue papers for prasadam. So, customer loyalty is low, and people accept pamphlets from almost anyone :) The intensity of competitive rivalry
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Super intense.. Anyone who saw the potential of marketing their products and services in Mylapore and surrounding areas, cannot ignore these locations for marketing. Good brands put up temporary kiosks, others put up colourful umbrellas to attract customer. Also, the nature of competition is diverse. People distribute all kinds of pamphlets ranging from "Earn Rs. 10000/month minimal labor" to "how to lose weight" :) Also, as there is a bazaar right there, people have their hands full. Again, as in any temple, you will have to compete with these long term micro charity recipients (a.k.a beggars) who will scatter any attention that you might want to garner.

The threat of substitute products or services
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Not much. Pamphlet distribution is the most effective person to person medium under such market conditions around the temple. So, there is little threat of substitutes or services.

The bargaining power of customers (buyers)
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Huge. As you want to be nice and polite, because of the brand that you represent, you really cannot say no to customers who want multiple pamphlets. We, as a race, are very resource conscious and are adept at making god use of any seemingly unimportant resource. So, people don't really mind carrying a few pamphlets as they will find some way to use it.

The bargaining power of suppliers
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Not much. This is a commodity and so, not really an issue.

Role of government/regulation
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Pretty important. The police officer is omnipresent and makes sure that the strategic positions for vendors are only for the "licensed" people :)

Based on, the above model, we chose to be a niche player in the pamphlet distribution model. We first profile the customer for signs of capability and willingness to pay. Formally dressed, branded ID cards around the neck, laptop back slinging and fancy mobile phone ... tell tale signs of our customer. If he/she is with spouse, then he/she is a high potential customer. And we jump into action, handing over the pamphlet. Now, the next few seconds are really tense. What do they do with the pamphlet? Our eyes follow our receivers till they blend in the ocean of humanity. If, till then, they have not discarded the pamphlet, chances are, "We just met a future Fix-All customer" :)

Well, Madras week celebrations are to start in Full Swing, with the Times Chennai Festival. With the likes of Pandit Jasraj, Vikku Vinayakram, Mandolin Srinivasan performing in Chennai, weekends promise a lot of fun :) Wishing you happy independence day!!

Thanks.
Fix-All team

2 comments:

  1. Vaidya,
    I would suggest you use the Sixth force more effectively, your chances of success are more. It would be more effective to do focus distribution then carpet bombing. Distribute information, for example, about carpenter service where people go to buy paint, and sell information about paint near carpenter. Neither of them would object because you would not be competing directly and your conversion rate would also be higher. Just a flying thought.

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