Page 14 - Logistics News June 2019

Opinion

Election as a business

By Doug Hunter, doug.hunter@za.syspro.com

The election is over, but will the country reap the rewards it needs, and how do we learn from
it to ensure more ‘business’ opportunities are gained in the future?

QUEUEING, SCANNING barcodes, checking lists, another 10 million citizens who didn’t even come
staining fi ngers, selecting where to cross, loading to market; they didn’t register so they couldn’t
boxes, securing and shipping to centres to take ‘buy’.
stock; this is pretty much a national supply chain A more intrusive or psychographic analysis
in operation. And, if the objective of any supply shows a shocking fact – only 20 percent of
chain is to deliver best customer service/value eligible fi rst-time votes, mostly the country’s
from the minimum investment in inventory, how youth, actually registered. Market shares were
did our election fair as a business supply chain? 57.5 percent, 21 percent and 11 percent for the top
I’ll break this supply chain down so we can do three products from a total of 17 million purchases
a business analysis: in a market with a potential of 40 million
purchases. That is a pretty poor market dynamic
Check who is who, or what and performance. Why?
• The products are a promise of delivery to a Was the value of the product unclear or, more
specifi cation – with a few options – over likely, the brand just not strong enough? Perhaps
30 actually. this purchase was seen as a luxury competing
• Our vote is the currency. with other more valuable purchases out there –
• The market is all citizens eligible to vote. some chisa nyama, a braai. Or maybe this was
• Potential customers are those who registered – a grudge purchase killed by the weather or the
they want to buy, use their money – their vote. pleasure of a rest day. Whatever the reason, the
product promise just wasn’t good enough and
Check supply chain or business measures competition not clear enough to grow the market.
• Serviced customers (customers who bought a So, how do we capitalise on the missed
product) are those who voted. opportunities to do better next time? Firstly,
• Market share is the proportion of votes for a address customer satisfaction; a future potential
party or spoiled paper. situation was tainted by past purchase experience
• Lost sales are registered voters who didn’t vote. where product value was too low. The value
• Customer satisfaction is how a voter feels his/ proposition for youth is way diff erent than for
her vote was or will be used – service delivery. older citizens. The need for change and service
value varies for those who had no customer
What are some of the issues in this business? satisfaction and for those who are ok.
To start, how do you measure the success of the The market is slow and unexciting – blame
election process? What was the voter turnout, politicians as the marketers and salesmen.
how many people saw enough value in the Jointly, we need marketing campaigns to jazz
‘product’ to spend their ‘money’? up the market to entice more customers to
There was an expectation of value - hyped enter and spend money. Then stop selling the
so the promise could be real, confused or over- product generically to all market segments
promised. Unfortunately, we have to wait to feel with inadequate diff erentiation – clear brand
promised delivery. statements are required to augment the product
A basic analysis of the market shows a low to attract and keep customers.
turnout (actually, the lowest since the fi rst And fi nally – deliver on the brand and product
free election 25 years ago) at 65 percent of promise. Give me value. Make me feel good, and
registered voters, around 30 million people. But I’ll prioritise my purchase, make a move so you’ll
wait, the turnout means only around 20 million get my business next time. Elections are just
made a purchase and voted. But, there are business after all. •

12 June 2019 | Logistics News