Apocalyse Snow
Tuesday, December 21st, 2010It is so cold this morning that I am having to type extra fast to stop my fingers freezing to the keyboard. Outside, the charm of the dazzling snowscape is beginning to pall four days after the heavens dumped over six inches of the white stuff on an unsuspecting (and evidently unprepared) United Kingdom. Thanks to sub-zero temperatures night and morn it hasn’t gone anywhere since, and neither have most of my fellow citizens as a result.

I hadn’t realised how bad the snow was until I was half way back from the station on Saturday having dropped off No 3 son bound for a party in London (in the event snowed off). We had been making slow but steady progress through the dancing flakes on the way, but half a mile into the return the traffic stopped. Dead. For quarter of an hour. I then proceeded to inch forward (literally) for the next ninety minutes of what is usually a five minute journey. Time to muse on life’s great questions like, ‘is it more efficient to turn off your engine in standing traffic?’(somewhat academic in the circumstances, given the effect on the heater) and ‘what’s the Marketing Talk angle on snow?’
Well, for a start , it plays hell with distribution – the mysterious and often misunderstood ‘P’ for ‘Place’ in the marketing mix which represents marketing’s efforts to get goods and services in front of customers as cheaply and conveniently as possible. Peter Drucker once described distribution as marketing’s Dark Continent: unmapped, dangerous, but full of potential riches for those prepared to explore and exploit it. I’m not entirely comfortable with the colonialist implications of this image, but he had a point. As customers we tend not to even notice distribution when it’s done well. The goods or services are there, and we take it for granted. But come something unexpected like snow (or volcanic ash) and it becomes very noticeable indeed.
For all that we talk of a shift to the service economy, for all the rhetoric about virtualisation and business at the speed of light, there is still no substitute (would that there were!) for road freight in getting the goods to the customer. Even internet behemoths like Amazon are powerless in the face of ungrittted roads. And if customers can’t face struggling through snow-clogged roads, the most titanic of bricks and mortar retailers faces a thin time this Christmas. The Independent newspaper suggested recently that snow was costing the economy about a billion a day.
So how is it that they cope in snowy countries? The answer is also to do with distribution, which includes the cost of storing goods (and keeping services available at short notice). If you are using snow-ploughs and gritters regularly then you don’t mind the cost of garaging and maintenance. If you are used to facing a snowy drive most of the year, you invest in a set of snow tyres. But if snowy conditions are a rarity (as they are in most of the UK most of the time) the costs of such precautions look disproportionate. Only when the weather takes an unreasonable turn do we start to question this apparent common sense and start baying for the blood of our ill-prepared transport chiefs.
Distribution is, like so many things in life, a matter of calculated balance. You need to combine adequate levels of availability with minimum cost, or the operation becomes too expensive to sustain and the price goes up. But cut too many corners on the necessary cost of distribution, and the result is late or no deliveries, and empty shelves.
But as the holiday season approaches I am now about to stop trying to drive through the snow, and start playing in it instead as nature intended.
A Merry Christmas to all Marketing Talk readers and best wishes for a peaceful and prosperous New Year.
