There is change. And there is going to be no change!
The change I am referring to, as is evident on the screen, is in this blog – relaunched; hopefully rejuvenated. Yet another of my unflinching attempts to start afresh; to start anew; to be constant, consistent and customary. Will I keep my word this time? I want to. I will. I hope!
But the change I wish to talk about is ‘change’ that is not going to be around. As you would know, RBI will withdraw 25 paisa coins from the market starting today! These coins will not be in circulation and can’t be used as legal tender for payment. Soaring metal prices and rising inflation have made these coins unviable, they say. Change is here, ironically, by not being there anymore!
Wonder what it means to us marketers. Here are a few possibilities and pitfalls. Feel free to add to this list.
What happens to sachet brands that are priced at Rs. 1.75 or Rs.2.25? Either they have to move their prices backwards, say to Rs. 1.50 (which would squeeze their profits) or move up to Rs. 2 (which might pit them against their closest premium brand jeopardizing their market share).
A favourite price promotion resorted to by many sachet and low-priced brands was ’25 paisa off’. Not any more, I suppose.
Lower SKU brands like 20 gm talc packs, toothpastes, shampoos etc., now have to jump 50 paisa at a time, when they wish to increase their prices. Would it not make them think twice about increasing prices from now on?
What about Bata? They obviously can’t continue to price their products like they normally do, say Rs.1095.95! God bless their souls (my pun be damned!)
Forget marketing for a minute. The bigger problem in all this, as I see, is among the small-scale philanthropists among us. Let them not think of sparing their change on beggars. Lest they wish to get them….thrown back at their kind faces!
9 comments:
Satheesh ji... After long time U R in blog...!!! for last 4 years i wish to see ur new writing every day morning... Hope u will continue writing... no more disappointments...!!!
Regards,
Suresh Muthukrishnan
Suresh, Sorry about it. Will try and be regular. Thank you for your encouragement.
Sir, this is Manojj, your student. Thanks for coming back.....
Please continue writing. Every day I step into my office, I am trying to relate and apply what ever you have taught me. I miss your classes, I enjoy your blog as much I enjoyed your classes.
Regards,
Manojj.
Nice Post. This transmit helped me in my college assignment. Thnaks Alot
hi sir...
This is vinoth gandhi from Gnanam school of Business... Megha mam student... about ur article... its very nice i never thought like u that change on "change" will change this much on market conditions and competitions.... and ur change on "Change" changed my thinking... thank u..
sir,
u jus give 50 paise to any beggar in roadside, I'm 100% sure u will get back dat 50 paise.(while giving back dat 50p, he will look at u from top to bottom(kevalamana look)) Indian govt is to late.........i read 2 yrs back in tamil daily dat, some persons were arrested for converting the coins to metals by melting it....even 50 p lost its value long back, so i think it wont affect pricing ,,,,,,,if dey go up to 2 rs sachet.
I’m with RBI decision; anyhow now a day’s we rarely find 25np. If at all the price is Rs 1.75 retailer will take Rs2/- . So, by removing 25np there is no loss for customer and hence for marketer.
Hey greet site !
Everywhere a change should initiate the market for a change.
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