Maths behind Multiple Options.
Why we like PPFAS, Mysticwealth believes in one category one product.
Offering Multiple options to customer is a wonderful marketing technique which works like clockwork. In this blog, we shall discuss why it works and despite its amazing success, we at MysticWealth, not deploy it.
Doership:- When you offer choice to the customer, he/she feels empowered, you can offer a same product dressed in a different wardrobe and after choosing the product, customer feels they have taken a conscious decision using their intellect and ability to discern and discriminate between right and wrong. good and not so good. This sense of doership is a HUGE ego boost, you feel you bought a product, not that somebody sold you something.
Margin of error:- When you have 10 offerings, even if 03 tank badly, you escape any damage to your brand since on Average you did really well. This escaping of accountability ensures a company stays afloat despite failing miserably on many counts. A Big factor to ensure sustainability in long run.
Boasting Rights and creating Aura: When you have100 offerings, 01 or 02 of them will always be doing really really well. You can simply create screenshots of your success stories and sprinkle them all over social media to build traction. Not just mutual funds, this is applicable for individuals as well. I know 01 well known gentleman on twitter who must have some 800 stocks in his portfolio, ofcourse at any given time 05 of them would be doing great and he never misses a pulse to make the world know!!!
Decoy
You can simply throw in a slow, not so good product just to make your other products look even more stellar. I use to do that in my younger days. I was an above average looker in my 20s (IMHO, lol) and at parties and discs I would always accompany my not so good looking friends. To the opposite sex, when they would look at us from a distance, i would stand out not because I am any good, its just that my goodness sparkles in bad contrast, lol ;) (sorry Amit, Truth hurts)
In with the Times
You get to sell what sells, not what’s right. With flexibility to launch products at will, you can gauge customer mood and launch what’s selling. Look at history of thematic funds and check when were they launched!!!!!
SO WHATS WRONG.
Actually Nothing. Its a marketing technique and it works. I am not a socialist, utopian idiot who hates everything that makes money. Its just that I cannot do what I would not like to be subjected to.
For example, While selecting a mutual fund for my family, friends and even acquaintances, PPFAS is a NO brainer choice.
You can actually hold them accountable for their product. How do you gauge the success of ICICI mutual funds (just an example, there are many), you cannot, its a conglomerate, they have a gazillion offerings, even they don’t know how well they did on aggregate. Its by design and its a wonderful design aimed at scale not performance. Because they know, performance in any event is beyond their control so why waste time there!!!!
There is no right or wrong in the capitalistic world. If there is an arbitrage, it will be filled. Thats the way it is and that is the way it should be.
Comments are welcome…
