SAMPLE CONSULTING STUDY

Sample 1

A car company's revenue has been stagnant; therefore, it wants to branch out into a new line of
business.

As a consulting firm, what would you suggest to them? Identify prospective revenue diversification
opportunities for the automobile manufacturer.

Solution-

According to client’s need and demand, area of potential revenue diversification for the car
manufacturer could be: -

1. Financing of car.
2. Installing multiple service stations for ease of customers.
3. Providing hassle free insurance facility.
4. Providing vehicle accessories at a discounted price.
5. Utilize distribution network for cross selling other products.
6. Company could also rent a car on holiday destination areas and can rent it even at inflated
price.
7. Second hand purchase and sale.

Sample 2

A consumer durables company with a presence in India wants to expand. There are currently 1
tonne and 1.5 tonne air conditioners available on the market. It intends to launch a 0.5 tonne air
conditioner. Is it possible for you to conduct a market analysis and recommend an entry strategy for
this product?

Solution-

Client is well established in Indian territory and wants to expand, looking at statistics,

Number of competitors- 15-16

Number of units sold- 7 to 7.5 million units per annum

Segments-

 Split type (wall mounted)

 Window type
 Cassette (ceiling- mounted)
 Tower (floor mounted)
 Portable type

0.5 tonne AC could be installed in 2 segments i.e., in window and portable. It is comfortable only in
100 sq. feet room for 5 people.

No. of people in India with 100 sq. feet room and equipped with AC is 1.15% of population.

Target market size- 2.5 crore (estimated including household and commercial)

Per AC market price- 25,000

Total market- 625 billion

Entry strategy for 0.5 ton of AC in Indian market-

1. Exporting
2. Licencing
3. Joint ventures/partnering
4. Franchising
5. Outsourcing
6. Piggybacking
7. Acquisition

Sample 3

What method will you use to predict the LNG demand in India in 2020?

Solution-

The natural gas has a derived demand (since it is an intermediate product)

LNG is utilised in refineries, power plants, and retail stores, and it is likely to be employed in
petrochemical facilities over the next decade.

Assuming that the estimation is only from the perspective of power plant generation.

Electricity consumption per capita reached 940 kWh in 2020

The gross electricity consumption in FY2019-20 was 1,208 kWh per capita.

Gas fuelled 24 percent of total global power generation in 2020, with 6 300 Twh. In the Net Zero
Emissions by 2050 Scenario, unabated gas-fired power continues to increase in the medium run,
displacing coal-fired electricity, but begins to decline by 2030 and is 90% lower by 2040 than it was in
2020. To meet Net Zero Scenario levels, existing gas-fired power plants will increasingly need to be
modified with CCUS or co-fired with low-carbon fuels like hydrogen.

That would be about 7 cubic feet of natural gas. It would therefore take about 7000 cubic feet of gas
to produce one megawatt-hour.

Considering above mentioned statistics, India’s natural gas consumption is around 185 million
standard cubic meters per day

RAHUL SONI