Friday, December 26, 2008

Interesting Ad by Naihaa

I have recently visited Naihaa in Chennai(velachery) to buy a chudidhar for my sister to present on her birthday(can't face her anguish if missed to remember). Once purchased the materials(which comes around Rs.1500/-), one of the hoarding catches my eyes which says "10% discount for anything if purchased between 1-6PM". I missed the offer just by 30 minutes and noticed it only when i'm about to pay my bill. Since i have to give it to my father the next morning and can't wait for one more day for the sake of availing this offer, i just made my full payment. Though incurring a virtual loss of 150 bucks but i felt the present on the right moment worth more.

Okay, but this is not the thing i would like to discuss in this post.

This incident actually makes me to think on what it takes for them to announce one such a discount offer. How do they benefit by giving discount for purchases on specific working hours and why don't they announce the same for all day long.

Naihaa is a branded showroom especially for women & kids. Having a solid regular customer base, it doesn't matter for them to pull the crowd with cheap marketing tactics. But they seems succumb with inconsistent customer traffic at various hours. And people are more comfortable to shop by 6-9PM. These inconsistent traffic actually lets them to confuse on increasing the staff strength. Just increasing resource by keeping peak hour crowd in mind wont scale much in long run. Hence they might have thought of attracting(with actual benefit) some of the able customers to shop during the wee hours too.

Its a very good move actually. Rather investing more on human resource and letting them not used fully, its better to give away a considerable profit margin to the customers who indirectly reduces the pain. It avoids the idle time of their staff which in turn reduces hectic time during the busy hours. Don't know whether this is what exactly they thought of but this is what is happening.

And this offer sounds much alike the offers provided by ISP providers for effective bandwidth usage. But emulating it for effective utilization of different resources is indeed a good idea.

This incident taught a cute little lesson :
Dig deep into the problem(identify what actually the problem is) and you will surely end up with a most workable solution.

6 comments:

  1. Good thought. Even I think that is the reason.
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  2. Ufff.. how come you managed to buy something from naiha!! i've hardly seen anyone coming out of the shop with naiha-bags in their hands.

    btw, i feel naiha can hire ppl on contract basis based on shift timings (say for e.g., have more no. staffs during peaks hours) instead of copying the "happy hours" idea that is seen mostly in pubs ;)
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  3. Vivek, this is known as Happy Hours, usually people hesitate to go in hot sun to buy anything, if u give more discount people will come during that period so that the sales will be continuous and peak hour rush will always be there. Actually 10% discount doesn't matter them as every garment sales have almost 50 to 60% margin if manufactured in their own factory.

    Anyhow they won't increase staff and they want their staff to engage fully throughout the day as u said

    The idea is less margin more sales that's it
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  4. Nice Write UP !!!!

    Cheers - Ranjith
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  5. Thanks all for your comments, your updates about "Happy Hours" is indeed educative.
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  6. hi a suggestion why not your establishment make bra attached blouses for the convenience of the women aging 50 and above saraswathi srinivasan
    ReplyDelete

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