CASE STUDY 1: Save A Penny

Problem Statement Definition

The problem statement can be defined using the Fish Bone Diagram which points the way for
further investigation.
CRITERIA FOR SCOPE FOR
PERSPECTIVE/ SUCCESS SOLUTION SPACE
CONTEXT
How can the
company
increase its
sales in the non-
food segment?
CONSTRAINTS WITHIN
STAKEHOLDERS KEY SOURCES OF
SOLUTION SPACE
INSIGHTS

PERSPECTIVE CONTEXT: CRITERIA FOR SUCCESS:

1) There was a decrease in the revenue
for Save-A-Penny since 2012. The
revenue has decreased from 100 in
2012 to 96 in 2020.
2) The market revenue decreased by
1%.
3) The company was the market leader
within “double supermarkets” until
Value4U took over.
SCOPE OF SOLUTION SPACE:
1) The non-food segment needs to be
improved.
STAKEHOLDERS:
1) Mr. R and the Save-A-Penny Board
1) Sales in the non-food segment needs
to be improved since there was a
recent profit improvement in the
food department.
2) Overall Operational execution and
initiatives needs to be improved.
CONSTRAINTS WITHIN SOLUTION
SPACE:
1) The existing stores/outlets needs to
be improved.
2) The current floor space occupied by
the non-food segment is about 50%.
KEY SOURCES OF INSIGHTS:
1) Customer Survey Reports
2) Financial Data and Analysis
Reports.
 Online/E-commerce and
New Customers
Increasing the Home delivery
number of
customers.
In-Store and Push
Old Customers
How can Save-A- Marketing campaigns
Penny improve non-
food sales?

Change in Price for Direct discounts on food

Increasing the non-food items items
sales of non-
food among
existing
Accessibility to non-food
customers
items.
Changes in non-price
activities. Higher Quality Products.

Better Customer
relationship Models
Insights from the session
The following key points would guide us in bringing about a solution to any given problem
statement:
 Defining the problem statement.

 Structuring the problem using the issue tree approach and the MECE Framework.

 Prioritizing the issue tree using the Prioritization Matrix.

 Creating an overview of different workstreams in the given problem statement by

implementing the Integrative Thinking method wherein we consider various such

aspects as Cost, Revenue, Stakeholders, etc.

 Finally, putting it all together with utmost clarity in terms of root-cause analysis,

execution, correct course of action.