As an entrepreneur, I am hooked to the “What the business model” game! It goes like this.
In your day-to-day life you will encounter a lot of businesses. Right from a grocery seller, to a petrol pump to a movie hall to even a college, your own workplace or the parking lot. Try and build the P&L statement of that business, in your head.
You will be amazed at usually the following – how little you know about the costs and revenue assumptions of the business, or that there is money in a lot of things in the world, if handled effectively, even at the smaller scale! There are very few businesses that are fundamentally still existing and are designed to fail. And I had the fortune of coming across one this weekend!
Delhi as a city doesnt have a lot to offer its citizens in terms of good past-time. There are movies, there are malls and there is food. Thats just about it. No beaches, no mega parks (even India Gate os out of bounds now), few theater opportunities and even lesser live shows!
So when the Kingdom of Dreams was launched (in gurgaon, and for the last time, THAT IS DELHI) with much fanfare sometime back, it seemed like an excellent idea. Never mind the fact that it has been co-founded by an event management company and an auto dealership!! You would think it requires a different set of expertise to run the concept of an amusement park and Broadway theater, but no – event management and auto dealership is just fine! Afterall its just a grand event, happening every day…! Just get salesguys convincing people to buy once they have entered the dealership.
And what a mess of a business it is!! Designed to fail
Rs 750 per person – includes Rs 100 entry fee and Rs 600 that is mandatory spend on food or retail (and Rs 50 refundable deposit). The zone of the ticket is something called Culture Gully, which houses food and retail of 14 Indian states. Over an area that takes about 20 mins to cover.
So figure this.
1. A place that has BOTH an entry fee and a cover charge!! (Have anyone of you heard that before?)
2. A family of 4 spends 3K to enter – and have to compulsarily spend 2,400 on food or retail. So you HAVE to HAVE lunch or dinner, because snacks will not get you anywhere.
3. A place that has NO IDEA what the prices are outside of the place! So yeah, a ballpen (possibly the cheapest item) sells for Rs 150 and a 6inch Shiva Brass Statue will offer by that extension be priced at 3,300! Not to mention funny looking stuff toys the size of one’s palm selling for 250!
4. A place that has NOTHING to offer after 30 mins, once the grandeur of the place has been consumed.
5. And ofcourse, food that is priced expensive (but not as obnoxious as retail) and tastes as good as your worst day in kitchen!
WHO WOULD EVER COME BACK!!
Why would you make such a place that will never have any repeat visit. Whats the idea? Charge the customer out of their wits the first time, because hey, they arent gonna come back! Now it makes sense, it had to be an event management company behind this. They are still treating it one day at a time…and no one is going to come back for the same event – cmon!!
Its like some dude out there thought –
Ok, so whats one thing where I will charge the customer a dollar less than a spacetrip, give them shitty food to eat, offer them culture items at prices that would make the weavers millionaires (just that it wont reach them), make sure that people only come around lunch and dinner time and hey hey hey…thats not it..also get them to compulsorily spend! Because hey, no one is going to spend at this place willingly!
Its KINGDOM OF DREAMS!
Its a F***ing overhyped Delhi-Haat, you moron! Give me my 50 bucks back.
India is such a stage right now that everything sells. But its unfortunate that even then businesses are created that do not understand customer needs. Businesses in India have succeeded on price points. Ask whosoever you want to – McDonalds, LG, Maruti or Reliance! A good product at the right price. And while KOD delivers the first wow factor, the product sucks and its not been thought through to sustain. And its a horrible business model if you are resting on the “1 Billion People, even if .001% convert I have made my money” logic!!
Misses me completely! How much good money can chase bad businesses!