Soft Serve- Loss Leader
Mc Donald’s Soft Serve Cone which old timers call Softy… began the surge of the loss leader strategy…
A soft serve vanilla cone at ₹ 14 and dipped in chocolate at ₹ 21 or so then, which is now ₹ 28 and ₹41 respectively .
The objective was to clearly increase footfalls and then enhance and gradually extend the spend and then finally expect a loyal Customer.
Let’s take a lower middle class or middle class family of four goes today and orders 4 vanilla soft serve cones at ₹112 nearly the price of one decent branded ice cream on a cart. Here the family gets, air conditioning, a table to sit and enjoy the ice cream, clean toilets, pleasant staff and perhaps a photo opportunity with good old Ronald. All for ₹ 112… a premium or even a luxury experience for some…
The story progresses, Junior now eyes the Happy Meal and Sister would want a aloo tikki burger, tired Mom wants a wrap and the hard working Dad would like a Chicken Mc Grill. They postpone it for a later trip.
However, the seed is planted… when they have the next celebratory surprise surplus they will be back . Each demanding their identified targets. So that’s how it works. We all know that and knew that.
So what’s new…
There is a twist in the tale there is sampling to the loss leader, at ₹10 the small guy you see in the picture… that’s him at ten bucks in a waffle cone yes waffle cone and in three flavors… vanilla chocolate and mango… brilliant… this to induce trial to a trial …
I have always felt and believed in a pricing strategy based on a experience and slowly inviting engaging and enticing the customers… some examples from my Corporate Life
Invitation Pricing in newspapers as in cover price and Ad rates… Times of India Group
Discovery Channel…, and Star TV free…priced low and the popular pricing for Cable Subscription… and then a tsunami of viewership.
A low hurdle and barrier to Hotels and their Room Tariffs and then extending the experience for the leisure travelers and superlative service for the Corporate travellers and building the brand … I am Lalit (I am the Brand)
Askme.com the 4 th largest e commerce provider exceedingly successful subsequently lost the race as the ecommerce world is “Surviival of the richest and not the fittest” I could wite another book on that.
With Celebrity Cruises a luxury brand of Royal Caribbean cruises we made it and positioned it as an affordable luxury … experience targeted the mass affluent in India…
So the lesson from a humble Soft Serve triggered and re triggered this post and a walk down my Corporate Strategy Journey..
Meanwhile both the Soft Serves were extremely enjoyable… Enjoy the Post and the Ice Cream..
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