Few days back an entrepreneur lady opened a cloth shop near to my home. This building is located on a corner and has access to two streets. Thus shop has two doors. For few days that lady struggled to attract few customer. Finally she had a brilliant idea of sharing space with some other vendor. So she rented a portion of shop to a Fruit Juice maker.
Since this is only fruit juice shop on the street, it has started to attract good number of customer. Because of that few customers are also walking in to cloth shop and lady is able to do decent sale.
If we analyze this scenario lady is now able to utilize space effectively. Her shop looks full of material because of less space and she is able to earn some rent out of fruit shop as well.
One has to identify the right combination of business to share space so they can get effective results.
There was a juice shop at student residential area near Delhi Univerisuty. Juices, fruits and tea were part of the offerings . My friends and I were regular to this shop. One day, we asked for Banana Shake. To our bewilderment , the shopkeeper said he does not know how to prepare it.
ReplyDeleteMay be seeing all the ingredients available for Milk Shakes and also because most of the Juice makers , sell Shakes too, we assumed that shakes should also be part of the menu. Well, we were delighted to hear from shopkeeper that he is willing to prepare this for us if we would guide him. We guided him and delecious banana shake was ready.
Then he asked us what price he should charge for the same to customers. In market, regular glass was priced at Rs 10/- and large at Rs 20/- . This shopkeeper had smaller than regular glasses as well intended for large glass of tea. We suggested regular glass to price at Rs 10/- as per market price and for smaller ones to charge Rs 5/- .
No other shop use to offer small glass for Shakes. This reasonalbly priced health drink became a huge hit. The Rs. 5/- Banana Shake proved to be his best selling and most profitable item .
In this case I think Price-Cum-offer Differentaition simply worked
Yes I agree with you, Price and USP of your product makes it success... It reminded me the strategy used by Chick shampoo to market 1 re shampoo pouch which were huge hit and rest of the industry has followed it for years. Thank for your views and keep sharing with us.
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