This Village Knows Its Business - Success Story Of 'The Village'

Published by MBA Skool Team, Published on July 26, 2012

Dream big! A passionate venture as a hobby, no operational costs for this business of yours, whatever money comes is the money which pours in as profit, your ideas and recipes for success is the brainchild for the business. Well! This sounds way too rosy to even take this is in and gulp the dream in this world of business where it is all about competition, survival, balance sheets and a heave of relief after meeting every quarter’s target.

But this article is about that dream turning into reality and a live instance of such a blissful life anyone can dream in the world of business. This is about an entrepreneur and his success story who preaches Calvin Coolidge’s thought process,” Advertising is the life of trade”. So with no more suspense for all the marketing enthusiasts, let the real perfect business story begin.

‘The Village’ is a hotel in the land of textiles: Coimbatore. What started off as a hobby of entrepreneur Mr. S. Jaikanth, is now his proud baby. His part time business will mesmerize many in their lifetimes of the hotel business. The Village opened in 2000 with a seating capacity of 15. As of today, it has a seating capacity of 250. Another surprising feature of this restaurant is that it operates only between 6:30 pm to 11 pm. Yet this restaurant makes thrice the profit than any other in the city, most of which operate for over 10 hours on a daily basis.

Let’s talk Business. All his operational costs are taken care of. How? The guess of rich inheritance is totally ruled out. The answer lies in his unique idea: his entire hotel is covered with bill boards. Some may find a place teeming with billboards crass. But the place has been designed aesthetically. These billboards, instead of being loud, end up creating an attractive ambience, ensuring popularity, good word of mouth reviews and repeat customers. From the business point of view, these billboards have literally brought down the cost of interior designing to nil and the revenue earned, per month, from them is so high that he does not have to think about operational costs incurred at all.

We have seen how our entrepreneur manages the monetary requirements of his business. But let us be frank. No customer is going to keep coming back to stare at a decoration of billboards. So what does The Village’s platter have to offer? The menu has varieties and hybrids of homemade food to offer. All homemade food items which you would love to see in a hotel accompanied with experiments where your mind urges you to try more and more of the varieties. There are traditional items like Rice Sevai( Rice noodles) with baby corn, paneer and other carefully thought toppings, Kolakottai which you can club with rich milkshakes.

Experimentation is not a Taboo in this restaurant. Paying tribute to this ideology are items such as Paniharam( a dish made of dosa batter resembling tiny spicy coloured version of idlis) which is stuffed with egg and boasts of a taste capable of transporting you to another different world. There are a variety of dosas like Pudi dosas, roast, mushroom, paneer, ragi all part of a long list. You are even provided variety with regards to the side dishes such as sambar and chutney, as many as 5 of each of them, adorning buckets, available to customers in unlimited amount of supply.

Sceptics looking to downgrade this successful venture with respect to the service will be highly disappointed. The staff mainly consists of part time workers, some of whom are students. The customer is served on the traditional banana leaf and is constantly flanked by a hospitable staff, all of whom are incentivized depending on the products they sell. The pleasant natures of the recommendations ensure that you try as many of the dishes as possible. And neither can we complain about the quantity or the pricing. A meal of two with around five-six varieties would cost around Rs. 300.

So what is the marketing strategy here? You’ll be surprised to hear that it isn’t through billboards. The concept’s rather simple: ‘Word of mouth influence’. Only when you visit The Village will you understand this strategy. People’s chain is the long customer chain to this hotel.

All 4P’s of marketing are as totally looked after:

Product: Product position as Innovative, tasty and homemade traditional items supplemented with product invention. Packaging with Banana leaf and service is the entire combo as a Product in itself.

Place: Prime location of Coimbatore, R.S. Puram

Price: Value for money

Promotion: This is the best part of the story and we all know it now... ‘Word of mouth Influence’ and ‘Bill board Advertising’. With more marketing efforts, this village is sure to go places.

What more can a marketing person appreciate where a hotel business runs with just the fascination to see a live new business model and marketing strategy is nothing more than a ‘word of mouth influence’ apart from quality product delivered to customer. This business model raises the eyebrows for a finance person and at the same time adheres to “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” as stated by Peter F. Drucker.

This is no food review or advertisement/buzz marketing. This is just an encomium of how an entrepreneurship can be started with a business model and marketing strategy to make it a success story for all to remember. A small expanding city with a hotel which has big enough business model with big numbers as its returns is definitely something to boast about. The USP is the business model itself which captivates all of us. The Marketing offer of this hotel is immense.

Just a small addition to how the article started...

Dream big! Implement big!

This article has been authored by Rashmi R from XIMB.

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