You make profits in marketing when you sell your larger sized SKUs (Stock Keeping Units). So say a 400ml Clinic Plus bottle is likely to make more profit than a Re.1 Clinic Plus pouch. But yet both these SKUs play extremely different and yet extremely important roles in the marketing portfolio.
Ideally you want all your consumers to buy the 400 ml pack and be wed to your brand for a longer period of time and along the way make a higher profit. But therein lies the catch - not everyone can afford the 400 ml pack, not everyone uses shampoo at all and for a non-user - fat chance of ever jumping into the category with a 400ml buy, Not everyone even buys your brand and perhaps for them to try it out for the first time - the 400 ml might be overkill.
So thats where the 1 Re SKU comes into the picture. It plays the role of expanding the category itself by recruiting new users to the category - people who never used shampoos. It also allows people using other brands to take a peek at your brand and maybe convert. Finally it also allows people to get what they want in lesser quantity and at an affordable put down price.
So in a nutshell if profitability and loyalty is the task for the large SKU, expansion is the thing to do for the smaller SKU and thats how they both co-exist peacefully.
Wait! FOUR full paragraphs and not a single mention or reference to cricket? Wondering if you are on the right blog? Oh yes you are!
Time now to pan to cricket and look at its SKUs - The Large SKU - Test Cricket. The Middle Sized SKU -ODI cricket and finally The Small SKU - T20 cricket.
Lets start with the simple one - T20. Very clearly the format of the game which will add more viewers to the game. People uninterested in sports will not mind spending some time watching a T20 game because of the basic nature of the format - quick and exciting!
But a moment here to step back and check the glaring difference hitting one in the face. While typically the small SKU is low profitability, this format of the game is the highest profit garnering version.
So while the ultimate aim should have been to recruit new fans through the T20 mode and then gradually upgrade them to Test Cricket - from an economic perspective it may not hold much water. From a pure economic perspective, it makes sense to promote and maintain T20 and hold the attention of viewers there.
So what is it that the oldest and longest and biggest form of the game have to offer? For starters - it IS the REAL version without doubt. It is the truest test of temperament and skill for T20 reduces the gap between skill and result and Tests tests it over 5 days. It allows you to appreciate strategy in the game and see a duel build up between bat and ball without the constraint of field placements or over limits. The thrill of seeing people going for it without inhibition. The field where a player well and truly proves himself.
But thats for the hardcore fan. Cricket's marketing dilemma lies in the fact that without Test Cricket - subtlety and skill will desert the game and convert itself into a more 'wham bam' power / hand-eye coordination game.
And it will mean turning around conventional economics or marketing and have the small SKU generate funds to invest in the larger SKU for long term sustenance. Because if we are to see player temperament being tested and for players to be able to triumph over conditions - Test Cricket is the only way to go.
But till the time pure and shortsighted economics continues to rule - this will be a pipedream!
Thursday, February 04, 2010
Marketing & Cricket
Saturday, September 15, 2007
Thou Shalt not Pass - 2
They first met in 1992 where Pakistan would emerge eventual champions and India would have a disastrous campaign but not before they had their laughs by beating Pakistan in this match. It was a low total propped up only by a late stand between a young lad by the name of Sachin Tendulkar and a veteran all rounder by the name of Kapil Dev. But then a good bowling effort ensured that India would go on to win the match. Two quick wickets followed by a threatening partnership - broken again by that lad (SRT) and India were on their way to run through the rest of the side - thanks to some great bowling by everyone.
The next one was in 1996 in Bangalore - a quarter final which meant that the team that lost would be knocked out of the World Cup. A critical match which saw the captain Akram drop out of the match injured - later to become a controversial decision. But some steady batting by Navjot Singh Sidhu and some explosive batting by Ajay Jadeja - his inning ruined Waqar's brilliant figures as he leaked runs and more runs. India had a competitive total that would challenge Pakistan. But Sohail and Anwar had different ideas as they proceeded to thump Srinath and Prasad to all corners of the ground. And then after carting one Prasad delivery to the fence - Sohail gestured that it was what all Prasad deliveries deserved. "You bowl it there and I will send it there". Next ball - over confidence - bowled. Prasad using some choice expletives and telling Sohail exactly where to go. It was the most aggressive moment demonstrated by Prasad ever since accidentally crushing an ant in his school days. And post that the Indians kept getting wickets and won despite brief Pakistani spells of resurgence. And another WC match was theirs.
The travel to England in 1999 was to prove better for the Pakistanis than the Indians but another WC encounter was to be won by India. Another low scoring encounter and another match where Prasad thumped his presence on the game. 5 wickets for the man turned around the match for India and their record was kept intact.
It was however here in 2003 where Pakistan had their best chance of posting a victory. A super century by Saeed Anwar had taken Pak to 273 - a total which looked tough on the pitch. But they hadnt really bargained for a Sachin special. Never before had a match so emphatically been put out of reach in 5 over. Sachin and Sehwag climbed into Shoaib, Waqar and Akram and in 5 overs - the Pakistanis were deflated. Sachin continued his march till cramps and a Shoaib snorter denied him a well deserved century. And the cool headed finishing from Yuvi and Dravid ensured that it was to be 4/4 for the Indians.
And then it was yesterday - a different kind of a world cup - a shortened game. Some terrific bowling from Asif indicated that a different result was likely in a different game. 141 in 20 overs - perhaps a low total by T20 standards. But for once the conditions suited bowlers. For once the fielders actually fielded - who could say that this was Indian fielding after what one had seen in England. But some really good bowling by practically all the bowlers (Pathan in particular) till that one bad over by Agarkar made it seem that India would pull off another win in the World Cups. But with 12 needed off the last over - it looked like Pak would take it, Misbah ul Haq with two boundaries in the last over was certain to be a hero what with just 1 needed off 2. But the madman Sreesanth kept his cool and we had a run out last ball for a tie. The Indians had ensured they wouldnt lose to Pak in any World Cup of any sort. We did win off the bowl out any way.
And that perhaps was India saying "Thou Shalt not pass" to Pakistan. For come what may - a World Cup match between India and Pakistan is rightfully India's.