The customer’s Business!

On a merciless summer day in Delhi I rushed to catch a metro train to my place. With The sun beating down on me, I was sweating profusely. I entered the metro station and without a thought approached the nearest beverage shop. I asked him to give me something ice cold. Whatever was available, I didn’t care about the brand. Coke,Pepsi or cold water anything would do. He opened his freezer, took out a can of sprite and placed it on the counter. No questions asked, I grabbed it, paid him 20 bucks and ran to catch my train. While the train approached the station I opened the can and took a sip. Then at that very moment I remembered what Peter Drucker said about business.

“What is our business?” is the first question an organization needs to ask itself and it needs to ask it every day, every quarter and every year. Not answering it appropriately is the single most common cause of business failure. On a hot summer day Sprite is in the business of relieving thirst and on a cold winter night it’s a support business for the liquor industry. The answer to this question changes with climate, country, consumption trends, Age of the target customer and most importantly the thought process of the management.

The second most important question an organization needs to ask is “Who/what are we competing against?” . In my case Sprite was in competition with soft drink companies, juice companies as well as mineral water!! The competition you face depends on the whims and fancies of your customer. He/she wants cold mineral water instead of a soft drink, It’s your problem! He prefers an ice cream over your drink, Your problem again!! Reassessing your Marketing strategy in accordance with the changing competition is something that can’t be ignored and the competition might not be in the same business as you.

The final question “Who is our customer and what can we do to reach him?” On a hot summer day, in a metro station it was me. I didn’t know what to purchase. I was just running for my train. I wasn’t aware of their distribution network or style. I wanted something cold, inexpensive, not bad in taste, readily available and easy to carry. A Rs 20 can of cold sprite was right on the money. It might have been someone else on a rainy day in a completely different place and they’ll need to reach him in a completely different way. Restructuring distribution and promotion strategy with the changing business is mandatory.

So the next time you find yourself sipping a cold beverage drink try to answer these questions and compare the answers with those in my situation. You’ll find that you are dealing with a completely different business.