Week before last, within 2 hours of the Congress announcing a hike in fuel prices, 4 filling stations inside a circle of one km around Malleswaram circle were packed with cars and bikes lining up in huge numbers to get their tanks full. My friend was one amongst them, having filled in 11 liters of petrol into his bike. At five bucks a ltr, he saved around 55 to 60 bucks. The guys with the cars must have done a little more.
This is a classic example of the price sensitive Indian consumer. Every Sunday, Big Bazaar runs a 5% off sale on their products, and they're forced to bring in cops to manage the crowd. The telecoms sector is probably the best example of price sensitivity. The Indian telecoms market is said to be the most competitive in the world. Now, that's a little bizarre, given a couple of things: an incredibly huge consumer base, just 7 to 8 operators and low market penetration compared to a lot of other markets. But in this business, pricing is king and all else can come later. Brand consciousness is unknown. People are ready to chuck their sim card if there's another operator offering local calls at 20 paise lesser per minute.
The same is true for the airline biz. Airline search engines thrive on the price sensitivity factor. Ever wondered why yatra.com has the words 'lowest fare' very conspicuously displayed on its page? The vast majority of the flying population doesn't care which airline is taking them, as long as they're getting the best price.
Over the years, we've built up price-sensetiveness into our DNA. But with the yo! generation seeing some pretty heavy numbers on their pay checks, branding might just be the next answer on the drawing boards of several corporations. If pricing were still to remain the detrimental factor, companies might as well replace their MBAs with monkeys.
4 comments:
Guess electric bikes which were doing a meager 40kmph would be more seen on roads. 2010-2015 should see more hybrid cars and electric vehicles, alternate energy driven vehicles. Reva should really see a boost in the next two years. With Civic launching a hybrid priced at 22 Lacs, i expect the bigger Indian players making their entry. They better make one, or else many would be in the same shoes of LML in no time.
REva is finally stepping out of of the south .. entering Delhi ... I guess the alternate way of life is just about take off..
"...might as well replace their MBAs with monkeys"
Oh joy, there's hope after all!
:D
Why does engineers who are not going for MBA feel them as monkeys.
(i'll never do MBA)
Post a Comment