Was at Jyothi Bhavani yesterday. It is a small Bandi at Gunfoundry, Abids, Hyderabad. On Friday I was explaining the concept of bottom of the pyramid and what a lovely example on Saturday. That is why I love marketing. It is easily demonstrable by illustrations.
This astonishing Bandi was serving mouth watering Vada Pav for just 10/- rupees. Me and Y. Srinivas Rao had two each and by the time we finished ours there was a sale of nearly 10 more! Mostly people, rushing on their jobs and school children.
Bhavani has cleverly identified its segment, customers including children whose impulse purchase cost is Rs 10/-. And there is a similar places close by where hot and piping veg biryani is sold at Rs 20/-.
Sindhi colony bandis were famous for Vada Pav. They were dishing out Vada Pao at Rs 10/-. Now they have priced themselves at Rs 25/-! Proving the wheel of retailing concept true, customers will come but slowly start looking for alternatives which might include MacDonald whose burgers start at Rs 39/-.
A small eatery cum take away centre near my house is manned by a surly owner who frowns on her customers like a teacher frowns on her errant school children.
But customers being customers, mostly software professionals take the flak as they are not adept at preparing evening snacks or are plump lazy!
Our 'lady of the evening snacks' bulldozes every one with her suspicious looks and most buckle under her wrath.
Just the other I visited her shop along with Madhusudan Kota who wanted to buy bellam jilebi. Our lady was at her surly best.
A meek guy in front of us asked for punugulu (a sort of snacks) and said that he wanted them for Rs 10/-). The lady said "At our shop a plate of punugulu are Rs 30/- and half plate is Rs 15/-". Rubbing salt in the wound, she added with a snigger "what will you get for Rs10/-".
The guy was stunned and his eyes started to water. The lady threw in 5 or 6 punugulu and handed it out to him as if she was she was doing him a favour.
The guy was humiliated. The place serves unlimited chutneys that the customers can serve themselves which is the only USP of the tiffin centre along with the proximity.
But the customer was a gentleman. He served himself with a very limited amount of chutney and rushed out of the place. Gone for ever. Lady, you have lost yourself three customers for a life time. YOU JUST HAVE PROVED "COMMON SENSE IS NOT COMMON"! WELL DONE LADY, WAY TO GO!