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Disclaimer

© 2023 by 180 Degrees Consulting - Delhi Technological University


All Rights Reserved.

This casebook is licensed for personal use and is meant for educational purposes only.

No part of this publication may be reproduced or transmitted in any form or by any means electronic,
recording, photocopy, or any information storage and retrieval system or otherwise without the permission
of the team.

This casebook is not to be sold or used by any means for monetary gains.

First Edition: September 2020


Second Edition: December 2021
Third Edition: April 2023

Page 1
© 180 Degrees Consulting - Delhi Technological University
Index
Content Level Page Content Level Page
Message from Hon’ble Vice Chancellor 5 06. All dressed up Medium 32
Preface: From HOD, Training & Placement 6 07. Just Blinkit! Medium 33
Foreword 7 08. Goa Surfers Medium 34
Acknowledgements 8 09. Thriving Tech Medium 35
The Team 8 10. Shopping Spree Medium 36
About 180 DC DTU 9 11. Prints Charming Medium 37
What’s New / How to Use the Casebook 10 12. Noodle King Medium 38
About Consulting 11 13. Radio Wave Rodeo Medium 39
About Case Interviews 12 14. Daily Bread Medium 40
HR Questions 12 15. Gas, Set, Go! Medium 41
Basic Concepts 14 16. The Fit And The Furious Medium 43
Guesstimates 23 17. Crow-trastophe Medium 44
Structure & Approach 24 18. Director’s Cut Medium 45
01. Stay Cool Easy 26 19. Mild As May Medium 46
02. Game On Easy 27 20. Paytm Karo Hard 47
03. Atta-boy Easy 28 21. Uber Rich Hard 48
04. Fashionista Easy 29
22. Ex-Static Hard 50
05. Reel Life Medium 30

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© 180 Degrees Consulting - Delhi Technological University
Index
Content Sector Level Page Content Sector Level Page
Cases and Frameworks 51 Pricing 80

Approach & Structure 52 Framework 81

Profitability 54 01. Watts Next? Energy Easy 83

Framework 55 02. Need For Seed Agriculture Medium 85


03. Hyped-er Loop Transport Medium 87
01. N(ice) Cream F&B Easy 57
04. Angry Birdies Real Estate Hard 89
02. Under The Weather Pharma Medium 59
Growth and Strategy 91
03. Stay On Trend Textile Medium 61
Framework 92
04. Adventure Awaits Services Medium 62
01. Beerly Buzzed F&B Easy 93
05. Shocking Experience Transport Medium 63
02. May The Fork Be With You Hospitality Easy 95
06. Watch Out Fashion Hard 65
03. Ride The Bangalore Wave Real Estate Medium 97
Market Entry 67
04. Stream Team Media Medium 99
Framework 68
Private Equity 100
01. What’s In Store? Logistics Easy 71 Framework 101
02. No Dirt On Soil Chemical Easy 73 01. Steel The Deal Infra Hard 104
03. Future First BFSI Medium 75 Product Based 105
04. Cancer Cure Pharma Medium 77 01. Don’t Bug Me E-Commerce Easy 106
05. Love Your Locks! FMCG Hard 78 02. Paint The World Technology Medium 108

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© 180 Degrees Consulting - Delhi Technological University
Index
Content Page No. Content Page No.
Industry Reports 110 11. Telecommunications 121
01. Edtech 111 12. E-Commerce 122
02. Aviation 112 13. FMCG 123
03. Automobile 113 14. Hospitality and Tourism 124
04. Food Delivery 114 15. IT 125
05. Pharmaceuticals 115 16. Banking 126
06. Oil and Gas 116 17. Transportation 127
07. Steel 117 18. Real Estate and Infrastructure 128
08. Healthcare 118 19. Alternate Energy 129
09. Fintech 119 Appendix 130
10. Cement 120

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© 180 Degrees Consulting - Delhi Technological University
From the Vice Chancellor’s Desk
“Since its inception 80 years ago, Delhi Technological University has maintained a
trajectory of excellence in education, producing highly skilled and proficient
professionals. Despite the challenges we face today, it is gratifying to witness
students persevering to maximize their potential in the new academic year.

The past academic year has been exemplary for our students, with commendable
performances in diverse fields, including exceptional achievements in national and
international competitions, securing positions in some of the world's finest
organizations, and outstanding results in various exams. As we continue on our path
towards becoming a world-class university through education, innovation, and
research for the service of humanity, we must strive for excellence.

In recent times, there has been a rising trend among students to pursue consulting
and analytics roles during on-campus recruitment drives. This casebook will prove to
be an invaluable resource for students seeking a career in consulting and business
analytics. I commend the team for their unrelenting efforts in creating the Third
Edition of their flagship casebook and for their support of social enterprises
worldwide, driving their impact forward. I wish the students all the best in their
endeavors and hope that they will take the university to even greater heights.”

Prof. JP Saini,
Vice Chancellor, Delhi Technological University

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© 180 Degrees Consulting - Delhi Technological University
Preface: Head, Training & Placement
“Delhi Technological University has been unwaveringly committed to providing superior
technical education with the objective of nurturing skilled technocrats capable of
excelling in their respective domains. The university has maintained an impressive track
record of placements, with numerous students securing coveted positions in prestigious
organizations. The Training & Placement Department, in collaboration with student
coordinators, has fostered strong partnerships with all recruiters, dedicating themselves
to ensuring a positive and fruitful recruiting experience for both students and
employers, while simultaneously assisting students in identifying opportunities that align
with their interests and competencies.

DTU students possess exceptional talent and often exceed the boundaries of their
academic curriculum to achieve excellence in diverse areas. With top companies and
multinational corporations recruiting both undergraduate and postgraduate students
for a multitude of positions, a centralized repository of resources would prove to be
extremely valuable for students aspiring for such opportunities.

With an overwhelmingly positive response to the previous editions of the Casebook, I


applaud the 180 Degrees Consulting DTU team for taking up the gauntlet and producing
an updated version of the Casebook. I extend my heartfelt wishes to the students for the
upcoming placement season and urge them to continue bringing honor to their alma
mater by achieving exceptional success in their chosen fields.”

Prof. Rajesh Rohilla,


Head, Department of Training & Placement, Delhi Technological University

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© 180 Degrees Consulting - Delhi Technological University
Foreword

Preparing for placements can be one of the most challenging phases of college life. With myriad emotions of stress, anxiety, excitement, and retrospection, the
placement season can be the biggest test of wits, determination, and perseverance. There is no fixed way to solve consulting cases and guesstimates. A single
case can have hundreds of different approaches. The more you practice, the better you will be at developing your mindset to structure the given problem. To
help you prepare for your placement interviews, we bring to you the third edition of 'Delhi Technological University Casebook' prepared by 180 Degrees
Consulting DTU and Training and Placement Cell, DTU. With the second edition of DTU Casebook, we reached 10000+ inquisitive minds from universities across
the globe as well as from corporates.

Casebook 3.0 offers an extensive variety of cases to prepare you for all sorts of interviews within the non-technical domain. We've added private equity cases
for finance enthusiasts and product-based cases to prepare for product related interviews. Along with this, there is also a section of HR interview questions for
your convenience. While there are abundant resources online, we realized there was a lack of a single consolidated document that outlines a basic overview of
all the major industries. Thus, we have prepared concise one-pager industry reports, incorporating 19 major industries from which cases are generally asked in
a case interview.

The entire team has put in immense amount of efforts over the past 10 months to come up with the DTU Casebook 3.0, and I'm incredibly proud of the
consistency with which every team member has worked. We hope this Casebook continues to serve as a one-stop solution for building your base and makes
you better prepared for the exhilarating world of management consulting. If you have any feedback regarding this edition, please feel free to reach out to us. All
the best for your journey ahead!

N.Krithika
President, 2022-23

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© 180 Degrees Consulting - Delhi Technological University
Acknowledgements
We’d like to express our heartfelt gratitude to Hon’ble Vice Chancellor Prof. Yogesh Singh, Prof. Rajesh Rohilla, Head, Department of Training &
Placement and Dr. Anil Parihar, Associate Head, Department of Training & Placement, for providing us an opportunity to build and release a
university casebook. We are also thankful to the faculty advisors of 180 Degrees Consulting DTU, Dr. Vikas Gupta & Dr. Sonal Thukral of Delhi School
of Management, for being constant pillars of support through our many endeavours.

We are grateful to all the people who have helped in the development of the casebook by sharing their interview insights and experiences that have
enabled us to put together a comprehensive preparation resource for future batches. We are grateful to the previous team for creating the
comprehensive 2021-22 edition, which served as the perfect stepping stone to build upon. We are also immensely grateful to various go-to resources
that served as an introduction to this field, such as the workshops by Victor Cheng, Case In Point by Marc Cosentino, several B-School casebooks
including those of IIM-A, IIM-B, IIM-C, IIM-Lucknow, FMS Delhi, SRCC and all the compilers before us for serving as inspirations to undertake this
initiative. We would like to thank DTU Studio and DTU Times for providing the photographs used throughout the book.

Any resemblance of a case here to any real-life problem elsewhere is purely coincidental. We have taken utmost care to ensure a book free of errors
and conceptual ambiguities. However, if there are any issues, please do reach out and let us know. We’d love to hear your feedback and review of
the casebook and how we can make it more reader-friendly for the next edition.

Team
Editors Class of 2023 Class of 2024

Harsh Gupta Agrima Kumari Lakshay Sharma Tanmay Raichandani Abhinav Sharma Khyati Raghav Rishi Maheshwari
N.Krithika Anoushka Das Prathmesh Sharma Aditya Singh Mann Manvi NilayaRiya Singh
Chaitanya Sharma Anukriti Jain Shubhang Shukla Ananya Nimish Makharia
Rath Samarth Bhatt
Amardeep Singh Sarvesh Shaw Gunjan Arora Parth Gupta Samarth Jindal
Ashutosh Kumar Tanishk Verma Harsh Mishra Paulomi Vig

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© 180 Degrees Consulting - Delhi Technological University
About: 180 DC DTU
180 Degrees Consulting is the world’s largest university-based consultancy providing affordable yet high-quality strategic & operational assistance to socially
conscious organizations across the world. It has over 10,000 carefully selected and trained volunteer consultants worldwide, who develop innovative, practical
and sustainable solutions to ensure that organizations can achieve their full potential.

Present with 150+ Branches Over 3 Million hours of


Why are we called 180 Degrees? operating in 35 countries. consulting provided.
“It’s because we work to turn good
organizations into great organizations,
challenges into opportunities, ideas into
reality. We’re focussed on positive
transformation.

Transforming organizations, and – in turn


– transforming lives.”
40,000+ future leaders 3000+ Organisations
trained to date. assisted to date.

The DTU Branch was established in April 2019 with the vision of filling the opportunity gap between untapped capabilities of top university students and the
unmet needs of social enterprises, while pushing the envelope of knowledge transfer at the undergraduate level.

Within two years of operations, we have successfully completed 14 client projects and our members have won 50+ podium positions at several prestigious case
competitions - at both undergraduate & postgraduate level - across the nation. We’re proud to be a part of an international community of go-getters and
changemakers committed to meaningful social impact.

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© 180 Degrees Consulting - Delhi Technological University
What’s New ?
The second edition of the Casebook by 180 DC DTU has incorporated the following additions:

● Comprehensive explanation about the field of Consulting and the Case Interview process.
● Basic concept section to equip the reader with few of the commonly used frameworks.
● HR Fit questions typically asked in an interview.
● Enhanced transcript layout for a better readability.
● Addition of Product Based Cases asked in the Case interview process of Product based firms.
● Industry Reports Section containing a detailed analysis of all the major industries relevant for consulting preparation.

How to use this Casebook ?


While reading the Case Book, we suggest the reader to employ the following steps in order to extract maximum learnings from this Case Book:

Step 1: Form a case preparation group with your peers with whom you can carry out your case preparation journey.

Step 2 : Use the interview transcripts to set up a case between 2 people (or groups), and after solving the case, the solution should be looked into to gain a
broader understanding of the approach and areas of improvement. Do not make the mistake of reading the cases in the book on your own. One person can
take on the role of the ‘interviewer’ and the other, the ‘interviewee’. Only the interviewer must go through the case to understand the problem. After this, the
‘interviewer’ gives the case to the ‘interviewee’ who makes an attempt to solve the case.

Step 3 : The reader should maintain a separate notebook/document to take a note of the learnings from each case. If used properly, it can act as a single stop
solution during the days leading to the interviews.

NOTE: It is suggested, not to memorize the frameworks. Frameworks used in specific type of cases are only the guidelines and tools enabling you to think in the right
direction. Do keep a note that they won’t be applicable in all types of cases. Also, the reader should leverage the recommendations, tips, and suggestions to apply
learnings from one case to another.

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© 180 Degrees Consulting - Delhi Technological University
About Consulting
Consulting means “engaged in the business of giving expert advice to people working in a specific field.” In other words, a consultant is somebody
who gives advice to a specific group of people. They work across a huge range of roles and industries and share their gift of analyzing information
and identifying the best path for each company to take.

Major Consulting Service Areas

Strategy Operations Technology


HR
Consulting Consulting Consulting
Consulting
Corporate strategy, It consists of Methods
economic policy, Organisational HR Technology, talent
implemented by tech
mergers and Operations, Sales & management, benefits
consultants aim at
acquisitions, Marketing, Supply and rewards, learning
improving business
organizational and Chain, Sourcing & and development and
processes, minimizing
functional strategy Procurement, Finance, organizational change
costs, and enhancing
form a part of this Business Process come under HR
technological
area Management, etc. Consulting.
opportunities.

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© 180 Degrees Consulting - Delhi Technological University
What is a Case Interview?
A case interview is a part of the process of recruitment carried out by the consulting firms. In a case interview, the candidate is
provided with a detailed situation, problem or challenge and asked to analyze it and come up with a solution. A case interview
question can be based on a creative business situation your interviewer has experienced in real life, or one fabricated to deduce your
abilities.

Through a case, the interviewer tries to check the candidate for the following qualities:
● Communication Skills
● Ability to draw essential insights from the given information
● Ability to generate a structured solution
● Analytical Ability
● Quantitative Ability
● Impact and Effectiveness

Case Interview Process

Case Statement by Analysis by Synthesis of the


General Discussion Wrap Up
Interviewer Interviewee Case

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© 180 Degrees Consulting - Delhi Technological University
HR Questions you might come across in an Interview
There are a lot of questions which are asked by the consulting firms in addition to the guesstimates and cases in an interview to understand the
personality, fitness for the role, background, ability to work under pressure, leadership qualities etc in a candidate.

Some of the questions that might be asked by the firms are:

● Introduce yourself/ Walk us through your resume.


● Tell us about your strengths and cite an example from your life where you showcased these qualities.
● Tell us about your weaknesses and what are you doing to overcome them?
● Why are you interested in consulting?
● Why this company?
● What do you know about our company?
● What experience do you have that would be relevant to this role?
● Tell us in detail about a situation where you showed resourcefulness.
● Tell us about a time when you showed leadership skills.
● What is the biggest regret/failure that you have faced?
● Mention 3 most important values that you ensure to follow. Why are these values important to you.
● What do you consider to be your most significant professional/academic achievement. Why ?
● Sometimes, we may find a group of people disagreeing with our beliefs/point of view. Give us an instance where you had to convince a
group of people on your point of view.
● Three significant events that have shaped my personality.

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© 180 Degrees Consulting - Delhi Technological University
BASIC CONCEPTS
16

MECE Issue Tree


Mutually exclusive, collectively exhaustive (MECE) issues trees are used to break down complex problems into more manageable
sub-issues.
Use control/time switch systems
Disconnect
Example Issue Tree: installations Disconnect superfluous energy consumers
Reduce energy
Reducing Energy Costs consumers Optimize regulating systems
Reduce capacity
level Reduce energy consumers/power
Cut generators

Consumption Increase technical efficiency of system parts


Increase efficiency
Extend/renew technological basis
How can the Improve use of
company energy
reduce energy Intensify recovery (eg. heat exchangers)
Minimize loss of
costs by 20% energy Improve insulation
by the middle
of the next
Optimize providers’ Capture advantages of bundled purchasing
year, without
compromising tariffs Beat down prices to market level
Use cheaper
production energy
quality? providers Contract from regional providers
Substitute energy
Reduce provider
Contract from national providers
costs/unit
Optimize mix of
energy carriers

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© 180 Degrees Consulting - Delhi Technological University
16
29

Need For Frameworks


Frameworks are an essential part of case interviews and competitions, as they allow for simplified understanding of the
company or industry and provide a structured approach towards aspects of the problem.
Each case study is different, so it is essential that you choose a framework which is best suited for your problem.
These ease your workflow during the solution generation phase, and aid in the isolation of problem into smaller, more
easily workable parts, and give you a clearer image on the main points.
Detailed in this section are some of the most commonly used frameworks for your easy reference.

FRAMEWORK WHEN TO USE

SWOT Analysis Allows a clearer understanding of internal and external factors effect on any decision

PESTLE Analysis Provides key macro-environmental trends which impact the client’s industry

Porter's 5 Forces Lists the factors for gauging competitive intensity and industry attractiveness

7P Framework Allows to review and define the issues that affect the marketing of products or services

McKinsey 7S Framework Used to understand how various parts of an organization function with one another

BCG Matrix Used to determine the profitability/returns of a business unit of a company

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© 180 Degrees Consulting - Delhi Technological University
16

SWOT Analysis

S STRENGTHS W WEAKNESSES W
Areas where your Things that your
organization does organization could improve
particularly well, or factors
that distinguish you from S or work upon. It is extremely
important to be honest
your competitors. during this exercise.

T THREATS O OPPORTUNITIES O
Anything that can Developments in external
negatively influence your
company such as shift in
market requirements,
T conditions (market,
government policy, buying
habits etc) that could help
supply chain problems etc. increase your company’s
competitiveness.

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© 180 Degrees Consulting - Delhi Technological University
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PESTLE Analysis

SOCIAL
Widespread belief and attitudes of
S T TECHNOLOGICAL
New ways of producing goods/services.
the general population. Factors that New ways of distributing goods/services.
have an effect on consumer buying.
E L New ways of communicating with target
markets.

PESTLE
ECONOMIC Weconomics
ANALYSIS LEGAL LEGAL

E
Economic growth, interest rates, Health and safety analysis of your
inflation, disposable income of
consumers, business etc. P solution, as well as consumer rights in the
domain of recommendation.

POLITICAL ENVIRONMENTAL
To what degree does the Environmental sustainability of your
government intervene/hold sway recommendation (positive or neutral
regarding your recommendation preferably)

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© 180 Degrees Consulting - Delhi Technological University
16

Porter’s 5 Forces
Ability to serve the market
and make a profit

Threat of New Competitive Supplier Buyer Threat of


Entrants Dynamics Power Power Substitutes

Legal Regulatory Barrier Industry Growth Rate Level of Substitutes How easily the customer
Customer Concentration
Economies of Scale Industry Fragmentation Supplier Reputation can switch over to
Level of
Cost Advantage Level of Switching Costs Switching costs competing products, or
Commoditization
Distribution Channels Motivation to Lower Forward Integration services and at what
Switching costs
Product Differentiation Prices possibility by supplier cost
Informed buyer

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© 180 Degrees Consulting - Delhi Technological University
16

7 P Framework
Price
Price of your product vs competitors products.
Price is sometimes considered a proxy for
Place quality and vice-versa
Where is your good/service PRICE
available? How convenient is it to
gain access to your product/service Promotion
PLACE PROMOTION
How will your promote your
product/service and make sure it
Process 7 P’s reaches the target audience?

Processes that will be followed MARKETING


PHYSICAL
to ensure quality standards are
met with. (eg. Process Mapping) PROCESS MIX ENVIRONMENT
Physical Environment
Physical environment can affect customer
satisfaction. (eg. one would prefer to eat at
a clean restaurant, over a dirty one)
Product PRODUCT PEOPLE
“The thing” that fulfills the needs of People
the consumer. Attributes of the Human connect between your
product, comparison with service/product and the consumer. (eg. the
competitor products food may be good, but a rude waitress may
affect return of the customer)

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© 180 Degrees Consulting - Delhi Technological University
16

McKinsey 7 S

STRATEGY STRUCTURE STRUCTURE


What is the plan to enhance How is the company structured?
your company’s competitive Who has the authority to make
advantage in the industry? the required decisions?
STRATEGY SYSTEMS

SKILLS SYSTEMS
What are the organization’s SHARED What is the current procedure,
core competencies and VALUES process, and routine of how a
distinctive capabilities? specific job is done?

STAFF SKILLS STYLE STYLE


Who makes up the majority of What is the typical behaviour
the employees in the company, pattern currently exhibited by
and their general capabilities? STAFF groups within the organization?

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© 180 Degrees Consulting - Delhi Technological University
16

BCG Matrix
HIGH LOW
STARS QUESTION MARKS
Star brands operate in rapidly Low market share in a fast-growing

HIGH
growing industries and maintain market. They require the consumption of
a high market share. They are large amounts of cash and are susceptible

MARKET GROWTH
cash generators, as well as cash QUESTION to incur losses but also have the potential
users, and are a very lucrative STARS MARKS to become stars by gaining market share
option for a firm to invest in. if external factors work in favour of them.

RATE
CASH COWS DOGS

LOW
Have a high market share, but Hold low market shares as compared to
the market in which they operate competitors and operate in a gradual
is a slow-growing market. Cash CASH growing or a declining market. They are
cows are the most profitable COWS DOGS not worth investing in because they
brands & should be utilised to generate low or negative cash returns.
generate huge sums of cash to
support growth of stars.

RELATIVE MARKET
SHARE

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© 180 Degrees Consulting - Delhi Technological University
GUESSTIMATES
Guesstimates: Structure & Approach
‘Guesstimates’ are an interview staple not just for consulting firms, but across industries, to evaluate the candidate’s reasoning acumen. For analytics/consulting
domain companies, market sizing questions are a precursor to the business case problems later in the interview process, which is followed by an HR/fit interview
round in the end.

Any guesstimation problem should be thought of with an open mind. Initiate your approach by asking preliminary questions and stating your assumptions as a
primer and then lay out the structure of your solution. In guesstimates, the primary objective of the interviewer is to observe your logical reasoning process and
general awareness of your surroundings in life. The key is not necessarily to get the right answer, but to show your ability to tackle a problem logically,
approach assumptions sensibly and perform simple back-of-the-envelope calculations quickly.

A four step methodology should be followed to tackle guesstimates:

Ask preliminary questions (even if they Attempt to break down your approach
sound silly!), clear out any assumptions into smaller, workable demographic
and always let the interviewer know your segments like income, age, geography,
overall approach before delving into the gender etc. This makes your overall
problem solving stage. solution easy to explain and holistic.

CLARIFY ANALYSE STRUCTURE CONCLUDE

Always look at the problem from a Try to make sense of your answer mentally
larger perspective. Use everyday before saying it out loud . If the answer
knowledge to make sense of the seems too out-of-scope, re-check your
information provided in the problem calculations. Always perform a general
statement and preliminary questions. sanity check after giving your final answer.

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© 180 Degrees Consulting - Delhi Technological University
Guesstimates: Structure & Approach
PROTIPS SOME FUNDAMENTAL CONCEPTS

➔ The most important aspect of your approach are your assumptions,


(1) The market size for a product is the # products sold in a year, i.e.
which should be reasonable and realistic. the growth in market size (additional demand for new products)
+ the no. required to replace old products.
➔ Take well-rounded numbers that are easy to work with for further
calculations and should lie within your assumed range.
Market size = Demand due to growth in market size + Replacement Demand
➔ It is always better to think out loud, even when you’re not sure if you’re = (# products in market) x (Growth rate) + (# products in market) / (avg. life
going in the right direction, they will help you with course correction if of the product)
necessary (but don’t rely on them to do all the heavy lifting).

➔ Talk through your steps, any assumptions you take into account and (2) If the life cycle of a product is Y years on average, then in Y years’ time
calculations. Avoid awkward silences, and make it an engaging each of these products would be replaced by newer ones. Thus the average
dialogue. replacement demand for any particular year is (Current # Products/Y).

➔ If you are not sure about a number, say the GDP of New Delhi, just ask
Avg. Replacement Demand = Current # Products / Avg. Life cycle of product
for it. Avoid generating data from thin air based on your hunch.

➔ It’s always good practice to ask your interviewer if they would like you
(3) In absence of any other information, take the market growth rate as the
to perform a sanity check (based on general awareness and common
GDP growth rate or 10% for simplicity.
sense) after coming up with a final number.

➔ Remember that guesstimates, like cases, also involve elements of


creativity and out of the box problem solving.

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© 180 Degrees Consulting - Delhi Technological University
G#3
G#1 Stay Cool
Calculate the number Of Desert Coolers Sold In Delhi

Clarifying Questions Approach


Total Population
Should I consider commercial use (offices, events) or 2 Cr
just residential in which time frame
- Only for residential in summers

Should I include tank capacity on the distribution or


should I focus on just the pieces BPL Lower Middle Class Upper Middle Class Upper Class
- No just the pieces sold with standard capacity # of people
20% ~ 0.4 Cr 40% ~ 0.8 Cr 30% ~ 0.6 Cr 10% ~ 0.2 Cr

Assumptions
Assumptions
- Population of Delhi is 2Cr. # of households 10 Lakhs 20 Lakhs 15 Lakhs 5 Lakhs
- Average Household size = 4 people
- Desert coolers hold 50% share among other
residential coolers; personal, wall mounts etc
- Since Delhi is not a humid state, it has relatively low Cooler penetration 0% 40% 20% 10%
preference for coolers in the higher income group and
all of the sales are in summers
- A household replaces the cooler every 10 years
Total coolers 0 8 lakh 3 lakh 0.5 lakhs
i.e replenishment - 10%

- Market growth ; 10%


Strategy

(1) Segmenting the demographics by income -


to assign an estimate of number of coolers held per Number of coolers sold = (Total coolers in use) x (growth rate of market +
household replenishment) x (share of desert coolers)
(2) Total desert coolers sold = number of coolers in use = 11..5 lakh x (10% + 10%) x (50%) = 1,15,000 coolers
x (growth of market + replenishment rate) x share of
desert coolers
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Easy © 180 Degrees Consulting - Delhi Technological University
G#3
G#2 Game On
Calculate the number Of Active PubG Users in India

Clarifying Questions Approach


Total Population
135Cr
Should I consider DAU (Daily Active Users),
WAU(Weekly Active Users), MAU (Monthly Active
Users)? Internet Internet
- Consider Daily Active Users only inaccessibility accessibility
(79Cr) (56cr)
Should I consider the pre-ban or post-ban scenario?
- Consider pre-ban scenario

Upper Middle Lower middle BPL


Assumptions
Assumptions Income (10%) (30%) (40%) (20%)
segmentation
= 5 cr = 17 cr = 23 cr = 11 cr
- Internet Penetration = 40%
- Mobile only: Mobile+PC Gamers= 30:70
- PubG Market Share = 80%
- No. of active users= 70% of total users
0-14 years 15-24 years 25-34 years x
Age Segmentation (30%) (20%) (15%)
Strategy = 13cr = 8 cr = 6 cr

(1) Estimate no. of gamers, people belonging to # of gamers


(20%) (80%) (30%)
middle class and upper class in urban areas = 4 cr = 2 cr = 2 cr
belonging to the age groups of 0-34 years
Total number of gamers in India = (4+2+2) = 8 cr
(2) Split gamers into mobile only, mobile + PC, and
PC only
Total number of mobile + PC and PC only gamer (70%) = (0.7 x 8 ) = ~6 cr
(3) Estimate number of PubG users by considering
gamers active on the platform Total number of PubG users (80%) = 5 cr
Active user base of PubG in India (70%) = 4 cr

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Easy © 180 Degrees Consulting - Delhi Technological University
G#3 Atta-Boy
Calculate the amount of Wheat Flour Consumed in India

Clarifying Questions Approach Total Population


135 Cr
Should I consider the use of the wheat for direct
consumption or for food making purpose as well?
- Only for direct consumption
%age of population Prefer Wheat
Prefer Rice (40%)
Should I keep the scope of the guesstimate be that prefers either wheat (60%)
~55 Cr
residential or commercial? or rice ~80 Cr
- Keep it residential only

Assumptions Population above


and below poverty Above BPL (80%) Below BPL (20%) Above BPL (80%) Below BPL (20%)
Assumptions
line 45 Cr 10 Cr 65 Cr 15 Cr
- Population of India is 135 Cr
- Making a roti requires 20 gm of wheat
- Above BPL households have 4 members and below # of households 10 Cr 2 Cr 15 Cr 3 Cr
BPL households have 6 members
- Regions that prefer rice over wheat have wheat once
a day while regions that prefer wheat over rice have it # of rotis made
twice a day 4x4 = 16 6x5 = 30 2x4x4 = 32 2x6x5 = 60
per day

Strategy
Kilograms of wheat
10 Kilograms 18 Kilograms 20 Kilograms 36 Kilograms
(1) Segmenting the demographics on geographical needed per month
and economical basis:
Regions where wheat is preferred over rice and
households below poverty line and above poverty line
Total amount of wheat flour consumed in India =
(2) The total amount of wheat consumed in India in a
month: Number of households x quantity of wheat flour purchased per month
Number of households x Quantity of wheat purchased ( 10cr x 10kg + 2cr x 18kg + 15cr x 20kg + 3cr x 36kg ) ~ 544 cr kilograms/month
per month

Page28
Page 1
Easy © 180 Degrees Consulting - Delhi Technological University
G#4 Fashionista
Calculate the number of people visiting the H&M Store in Connaught Place in a day

Clarifying Questions Approach


Duration (12 Hours)
Is it a weekday or a weekend? Occupancy (200 people)
- A weekend

Size of the outlet?


- Assuming large
Peak Hours Non-Peak Hours
Number of H&M stores in the nearby locality?
- This is the only outlet of H&M in CP

Assumptions 12 PM - 3PM 6 PM - 9 PM 10 AM - 12 PM 3 PM - 6 PM 9 PM - 10 PM

- Assuming outlet operates from 10 AM to 10 PM = 12


Hours
- Every customer stays at the store for a duration of
30 minutes 80% - 160 90% - 180 20% - 40 40% - 80 30% - 60
- The occupancy of the H&M store is 200 people.
- Peak Hours: 12 PM to 3 PM and 6 PM to 9 PM

Strategy 6*(160) - 960 6*(180) - 1080 4*(40) - 160 6*(80) - 480 2*(60) - 120

(1) We’re segmenting the demographic visiting the H&M


store by the division of hours into peak and non-peak
Total Number of People visiting H&M store in a day at Connaught Place =
hours.
(2) Every person visiting the H&M store spends at least 960 + 1080 + 160 + 480 + 120 = 2800
30 minutes, at the store.

Page29
Page #
Easy © 180 Degrees Consulting - Delhi Technological University
G#3
G#5 Reel Life
Calculate the number of reels posted in a day

Clarifying Questions Approach


First, we’ll calculate the number of people with internet access:
Should I try to include organisational/meme accounts
- Yes
Type of Percentage of Number of Internet Number of
Should I calculate for a day, month or year? Country World’s People Penetration People With
- Go ahead with a day Population Internet Access

Developed 20% 160 Cr 80% 128 Cr

Assumptions
Assumptions Developing 50% 400 Cr 40% 160 Cr

- Population of the world is 8B


Under- 30% 240 Cr 10% 24 Cr
- 2/3rd of smartphones have Instagram
Developed
- Ages 0-15 and 60+ do not post reels
- Typically 1/10th of posts of people are reels
- 70% of users with less than 1000 followers are people This number comes out to be 312 Cr. Of this, roughly 2/3rd of the people have smartphones and Instagram
who do not post at all, and 30% are those who actually
post photos and reels on Instagram
# of Instagram 200Cr
Users
Strategy
Age-wise 0-15 ~ 25% 15-25 ~ 30% 25-60 ~ 35% 60+ ~ 10%
(1) Segment world population by extent of tiering Do Not Post Post Frequently Post Frequency Do Not Post
development
(2) Further segment based on internet penetration
(3) Tier instagram users on the basis of age and
percentage users in each age group # of active users 130Cr
(4) Sum up number of active users

Page30
Page 1
Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#5 Reel Life
Calculate the number of reels posted in a day

Strategy
130 Cr active users

(1) Segment active users based on number of followers


(2) Calculate number of accounts in each
follower-segment
(3) Calculate posting frequency of users based on number
of followers Follower-wise <1K Followers 1K-10K Followers 10K-50K Followers 50K+ Followers
(4) Sum up number of reels posted of each category tiering ~ 50% ~ 45% ~4% ~1%

# of accounts 65 Cr 58.5 Cr 5.2 Cr 1.3 Cr

30% Actually Post


70% Do not post
~ 195 Mil

1 post in 2 weeks 1 post in 2 days 5 posts in 1 day


Posting frequency 1/10th of posts 1/10th of posts 1 reel/day 1/20th of posts
are reels are reels are reels

Number of reels 15 Lakhs 292 Lakh 520 Lakh 32 Lakh


posted

Total number of reels posted = 15 + 292 + 520 + 32 = 860 Lakh reels per day = 8.6 Cr reels per day

Page311
Page
Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#6 All Dressed Up
Calculate the Total Cotton Dressing Gauze Used In India Per Year

Clarifying Questions Approach


Total Population
Should I consider normal dressing or sterile packs? 135 Cr
- Sterile packs only

# of people Rural Urban


70% ~ 95 Cr 30% ~ 40 Cr

Assumptions
Assumptions Availability of
60% ~ 57 Cr 100% ~ 40 Cr
healthcare
- Population of India is 135 Cr
- 70% of the indian population falls under rural and 30% # of people with
access to 97 Cr
under urban.
- Each injury requires only one packet of gauze healthcare
dressing.
<2 yrs 2-24 yrs 25-45 yrs 45+ yrs
# of people 5% ~ 5 Cr 45% ~ 44 Cr 25% ~ 24 Cr 25% ~ 24 Cr
Strategy
# of people needing 50% ~ 12 Cr 15% ~ 4 Cr
(1) Segment India’s population into rural and urban 10% ~ 0.5 Cr 75% ~ 33 Cr
gauze for injuries
and find the number of people with access to
healthcare
(2) Further segment this population into age groups: Frequency of injury 1 per year 5 per year 4 per year 3 per year
<2yrs, 2-24yrs, 25-45yrs, 45+yrs
(3) Calculate the percentage of injuries needing cotton
gauze, and their frequency per year
(4) Total number of cotton gauze dressing packs used # of cotton gauze
in India in a year = # of people needing gauze for 0.5x1 + 33x5 + 12x4 + 4x3
used per year
injuries x frequency of injury ~ 225 Cr
Page 32
Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#7 Just Blinkit!
Calculate the Number Of Blinkit Deliveries In An Hour

Clarifying Questions Approach

Should I consider weekday or weekend?


- Consider it a weekday Number of Blinkit users in Delhi = Population x Grocery delivery app penetration x Blinkit market share
= 2 Cr x ( 10% ) x 20% = 4 Lakh users
Should I consider specific time range like morning,
evening or night?
- Give an average answer including all the hours of the
day Blinkit Users
4 Lakh
Assumptions
Assumptions

- Population of Delhi is 2Cr Monthly Bi-Monthly Weekly Alternate Days


- Hyperlocal app penetration: 10% Order Frequency 50% ~ Cr 30% ~ Cr 15% ~ Cr 5% ~ Cr
- Blinkit market share: 20%

Strategy # of users 10
2 Lakhs
Lakhs 1.2 Lakhs 0.6
5 Lakhs
Lakhs 0.2
5 Lakhs
Lakhs

(1) Using population calculate the number of grocery


delivery app users in Delhi. By taking the app
penetration and market share of blinkit # of orders/month 10
2 Lakhs
Lakhs 2.4 Lakhs 2.4
5 Lakhs
Lakhs 5
3 Lakhs

(2) Classify users on the basis of order frequency and


calculate avg number of orders per customer per
month. Number of deliveries in an hour = Average of number of orders per customer per month / (30 x 24)
= ( 2 + 2.4 + 2.4 + 3 ) Lakh / 720 orders
(3) Calculate avg number of orders daily using avg
= 1250 orders per hour
number of orders/customer/month. Dividing the
result by 24 will give the number of deliveries/hour

Page33
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Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#8 Goa Surfers
Calculate the Number Of times scooters are rented in Goa

Clarifying Questions Approach


Total Number of
Tourists
Should I consider one day, month or year?
- Calculate the annual number
Peak Month Normal Month
Should I consider all the two wheelers including bikes,
scooters, etc.
- Yes, take account for all two wheelers Mode of By Air By Train By Road
By Air By Train By Road
transportation (60%) (30%) (10%)
Assumptions
Assumptions
- Total number of tourists on a peak month = 2 x Number of tourists coming by plane on a normal month of day = 200*20 = 4000 = 60% of Total number of tourists
number of tourists in a normal month Therefore, Number of tourists (train, road) = (2000, 650)
- Peak Months: May, June, July, December, January Total number of tourists on a normal day = 4000 + 2000 + 650 = 6650
- Frequency of airplanes in a normal month = 20/day Number of tourists on a peak day - 2 x 6650 = ~13000
including both national and international with an Total Number of tourists in a year = 30 x (6650 x 7 + 13000 x 5) = 33 lakh + 10% of 33 lakh = 35 lakh
average of 200 persons in a single flight
- Most of the foreigners don’t rent because of driving
license and they buy full packages including transport 35 lakh
- 10% is accounted for present tourists
- Many people also go on solo trips and some are in # of people from Domestic Foreigners
groups of odd number, thus they will also rent two India or outside 30 lakh ~ 85% 5 Lakh ~ 15%
wheelers in solo, therefore 60%
- Average stay of a tourist = 5 days # of people renting
scooter 75% ~ 22.5 lakh 20% ~ 1 lakh
Strategy
# of scooters
required for total 60% ~ 13.5 lakh 50% ~ 50,000
(1) Segmentation of number of tourists into indian and
foreign nationals people
(2) % of people renting scooty Total ~14 lakh
(3) Number of scooters required for total people
(4) Adding the final number Number of times scooters are rented in Goa = 14 lakh/5 = 2.8 lakh
Page34
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Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#9 Thriving Tech
Calculate the revenue of a Croma Store in Delhi

Clarifying Questions Approach


Total Population
Should i consider a day or yearly revenue? 2 Cr (800k considered)
- Yearly

Should i consider a specific store location?


- Consider a busy place like shopping mall

Number of electronic stores nearby? Below Poverty Line Lower Middle Class Upper Middle Class Upper Class
- Consider no stores in radius of 5km # of people 20% ~ 160k 40% ~ 320k 30% ~ 240k 10% ~ 80k

Assumptions
Assumptions
# of
40k 80k 60k 20k
households
- Population of Delhi is 2Cr.
- Average Household size = 4 people
- Weighted average price of electronics in store = 15,000
# of electronic 2 6 10
Rs (lower middle class), 35,000Rs (upper middle class), 0
units/ household
55,000 (upper class)
- Avg purchase frequency of electronic goods = 7yrs
- Market share of croma store = 15%
- Population density - 10000 people per sq. km. Total units 0 160k 360k 200k

Strategy
(1) Segmenting the demographics by addressable Total number of units: 0 + 160k + 360k + 200k = 720k
population, income, and calculating the number of Total number of units sold by croma = 15% of total units = 108K (0.24k, 54k, 30k)
electronic units Number of units sold in a particular year = Total units/Avg. Purchase frequency
= 108K/7 ~ 15,400 units (0, 3430, 7710, 4285)
(2) Getting an estimate of the number of units sold and
Total Revenue = Number of units x Average price of goods = 0 + 5.14cr + 27cr +
expenditure of a store in it’s running
23.55cr = 55.69Cr ~ 56Cr

Page35
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Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#10 Shopping Spree
Calculate the Number Of Units returned On Myntra Per Day

Clarifying Questions Approach


Total Population
140 Cr
Should I consider multiple units per order or a single
unit per order?
- Consider single unit per order

Should I consider only apparel or accessories as well? Middle Class Upper Class
# of People BPL Lower Class
- Only apparel 30% ~ 42 Cr 10% ~ 14 Cr
shopping online 20% ~ 28 Cr 40% ~ 56 Cr
50% ~ 21 Cr 65% ~ 9.1 Cr

Assumptions
Assumptions

- Population of India is 140 Cr. Gender Males Females Males Females


- People above 55 do not use Myntra Segregation 50% ~ 11.5 Cr 50% ~ 11.5 Cr 50% ~ 4.5 Cr 50% ~ 4.5 Cr
- Market Share of Myntra is 10% in cloth sales/fashion
business
Age Groups 15-30 30-55 15-30 30-55 15-30 30-55 15-30 30-55
Strategy Order
Frequency 4 2 6 3 6 3 8 5
(1) Segmenting the demographics by income - (Per year)
Below poverty line, Lower class, Middle class and Upper
Return Rate 20% 10% 30% 15% 25% 15% 40% 30%
Class and then by Gender
(2) Further bifurcating into age groups: (15-30), (30-55)
and estimating frequency of online orders per year Total Number of Units returned on Myntra per Day =
(3) Number of Units returned on Myntra per day = (3.45cr × 4 × 0.20 + 3cr × 2 × 0.10 + 3.45cr × 6 × 0.30 + 3cr × 3 × 0.15 + 1.3cr × 6 × 0.25 + 1.1cr × 3 × 0.15 +
((No. of Online Orders/365) × (return percentage)) × 1.3cr × 8 × 0.40 + 1.1cr × 5 × .30) × (1/365) × (10/100) = 50K units returned / Day
(market share)

Page36
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Medium © 180 Degrees Consulting - Delhi Technological University
G#11 Prints Charming
Calculate the Number Of Newspapers printed in Delhi in a Day

Clarifying Questions Approach


Total Area
Should I consider multiple units per order or a single 1500 sq km
unit per order?
- Consider single unit per order
Should i consider newspapers bought in households or
offices too ?
- Consider both newspapers bought for personal and Residential Roads Network
Forest
Commercial % of area
Others
commercial offices. Agriculture
15% 30% 20% 25% of Delhi
10%

Assumptions
Assumptions
- Total area of delhi is 1500 sq km
- All newspapers printed are sold
- Number of newspaper bought/ household : Upper Upper Middle Middle class Lower Class Small Scale Large Scale
Ultra rich and rich households ~ 2, Middle class and 5% 10% 60% 25% 50% 50%
lower class ~ 1 , Small scale offices and industries ~ 3 ~ 22.5 sqKm ~ 52 sqKm ~270 sqKm ~112 sqKm ~ 190 sqKM ~190 sqKM
and Larged offices ~ 8
Avg. area of
820 sq. m 330 sq. m 165 sq. m 85 sq. m 820 sq. m 2500 sq. m
household
Strategy
27.5 K 1.36 L 16.5 L 13.2 L 2.2 L 76,000
(1) Segmenting the total area of delhi and further households households households households offices offices
identifying the areas in which newspapers are bought.
(2) Further bifurcating the residential area percentage
wise into ultra rich, rich, middle class and lower class Total number of newspapers printed = ( 27,500 X 2 + 1,36,000 X 2 + 16,50,000 X 1 + 13,20,000 X 1 +
and commercial area into small and large scale.
2,20,000 X 3 + 76,000 X 8 )
(3) Number of households (or offices) = Total area /
Avg. area per household (office) = 55,000 + 2.72 lakhs + 16.5 lakhs + 13.2 lakhs + 6.6 lakhs + 6 lakhs
(4) Total number of newspapers = Number of Total number of newspapers printed in a day in Delhi is 45.6 Lakhs
households X number of newspapers bought
Page37
Page #
Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#12 Noodle King
Calculate the amount of cup noodles sold in Delhi every week

Clarifying Questions Approach


Should I consider units sold directly to consumer or to Total Population
other businesses as well - Only to consumer 2 Cr

Should I consider the population of Delhi or the people


from other regions working there as well?
- Only Delhi’s population Below Poverty
Middle Class Upper Class
Line
70% ~ 1.4 Cr 10% ~ 0.2 Cr
20% ~ 0.4 Cr

Assumptions
Assumptions

- Population of Delhi is 2Cr.


60% 30% Don’t 10% Cup 40% 50% Don’t 10% Cup
- Average Household size = 4 people
Packet consume ~ 14 lacs Packet consume ~ 2 lacs
- Cup noodles are purchased only in rare circumstances
- Cup noodles are only preferred by travelers and
students because of convenience.
3.5 0.5
Strategy # of households
Lakhs Lakhs

# frequency of
(1) Segmenting the demographics by income -
buying cups every 3 Cups 2 Cups
Below poverty line, Middle class, Upper class to
month
segregate the units of noodles consumed.

(2) Dividing the form of instant noodles in packet and Total amount of cup noodles sold in Delhi every week for direct consumption =
cup form
Number of households x Cups bought each week = ( 3.5L x 3 + 0.5L x 2)/4 = 2.875
Lakhs cups / week

Page38
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Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#13 Radio Wave Rodeo
Calculate the Number Of 4G towers in Delhi
Approach
Clarifying Questions
Total Population ~ 2 Cr
Should I consider every provider having different
towers or shared infrastructure?
- Presence of shared Infrastructure can be assumed North South
New North South West Central North East
Districts West West
Should I consider the population of Delhi or the people Delhi Delhi Delhi Delhi Delhi East Delhi
Delhi Delhi
from other regions working there as well?
- Only Delhi’s population
Population
(In Lakhs ) 43.5 27.3 1.6 32.5 10.5 30.2 20.3 7 26.7

Assumptions
Assumptions
Area 445 420 35 245 60 130 65 20 60
- Population of Delhi is 2Cr. (In Km2 )
- For the population density ranges of 0-10, 10-20, 20-30
and >30 thousands/km2 the required numbers of 4G Population Density 10 6.5 5 13 17.5 23.5 32.5 33 43
towers per km2 are 10, 15, 20 , 25 respectively. (Thousands/Km2 )
- 10% excess capacity exists
- 100% 4G adoption in the national capital
Population Density
Range 0-10 10-20 20-30 >30
Strategy (Thousands/Km2 )
No. of 4G Towers 10 15 20 25
(1) Segmenting the demographics by districts, district Required per Km2
population and population density into ranges of
population density
(2) The total number of 4G towers = Σ (( Sum areas of Total Area of the Population density range (thousands/sq.km) of 0-10 = 900 Km2 , 0-20 = 305 Km2
districts in population density ranges) * (No. of towers , 20-30 = 130 Km2, >30 = 145 Km2
required for the particular range )) Total no. of 4G towers = [ (900*10) + (305*15) + (130*20) + (145*25) ]*1.1(excess capacity) ~ 21800

Page39
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Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#14 Daily Bread
Calculate the total revenue generated from MechC

Clarifying Questions Approach


Total Population
Should I try to distinguish day scholars and hostellers? 18K
- Yes
Should i try to consider absentees, irregular peak
hours and preference to go to places other than
MechC for considering the footfall for students?
# of people Students Teaching Staff Working Staff
- Yes
85% ~ 15K 5% ~ 1K 10% ~ 2K
Assumptions
Assumptions

- Population of the DTU is 18K. MechC footfall 30% ~ 4.5K 2% ~ 20 5% ~ 100


- 60% of Students are Day Scholars and thus bring
meals with them and 10% are not interested in MechC.
- Preferences of one person might be in more than one
categories which explains the sum of percentages not # of people going
to MechC 4.62K
adding up to 100.
- Average Amount spent on:
➔ Packed Food - 20Rs.
➔ Snacks - 20 Rs. Preference Packed Food Snacks Meals
➔ Meals - 30 Rs. 50% ~ 2.31K 40% ~ 1.84K 15% ~ 0.69K

Strategy
Revenue Generated Twice Twice Once
(1) Segment DTU population by demography by Frequency 4.62K ~ 92.4K 3.68K ~ 73.6K 0.92K ~ 20.7K
(2) Footfall in MechC
(3) Preference of type of food item
(4) Frequency of the respective food item Total Revenue
Generated 1.86 lakhs

Page40
Page 1
Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#15 Gas, Set, Go!
Calculate the Total Number Of CNG stations in Delhi

Clarifying Questions Approach Area of Delhi


(1600 sq km)
Should I include Household and Industrial uses of CNG
as well ?
- No you may proceed with only CNG for automobiles

Should i consider petrol pumps with CNG booths as Medium Traffic


well or CNG only pumps ? High Traffic Zone Low Traffic Zone
Zone
- You may consider CNG only pumps

Assumptions
Assumptions

(1) High Traffic Zone - 30%, Medium Traffic Zone - 40%, Area # of pumps Area # of pumps Area # of pumps
Low Traffic Zone - 30%.
(2) Area serviced by CNG pump:
- High Traffic Zone = 1.5x1.5 sq-m 0.30 x 1600 480/4 0.40 x 1600 640/9 0.30 x 1600 480/16
- Medium Traffic Zone = 2.5x2.5 sq-m = 480 sq km = 120 = 640 sq km = 71 = 480 sq km = 30
- Low Traffic Zone = 3x3 = 9 sq-m
(3) Every CNG station has 4 CNG pumps.

Strategy
In High Traffic Zone, one pump services 2.25 sq km of area hence no of pumps = 480/2.25 = 213
(1) We will use the demand side approach. In Medium Traffic Zone, one pump services 6.25 sq km of area hence no of pumps = 640/6.25 = 102
(2) Demand of CNG = No of pumps x CNG supplied per In Low Traffic Zone, one pump services 16 sq Km of area hence no of pumps = 480/16 = 30
pump (in Kg)
Total Number of CNG stations in Delhi are 213 + 102 + 30 = 335
(3) No of pumps will be estimated by segmenting Area
of Delhi into traffic zones and Area serviced by a pump
(4) The CNG supplied per pump = Supplying capacity x
weighted ratio of Usage Rates.

Page411
Page
Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#15 Gas, Set, Go!
Calculate the Total Number Of CNG stations in Delhi

Clarifying Questions Approach


CNG Supplied/ Pump
Should I include Household and Industrial uses of CNG
as well ?
- No you may proceed with only CNG for automobiles

Should i consider petrol pumps with CNG booths as


well or CNG only pumps
- You may consider CNG only pumps Usage Ratio CNG Pump Capacity

Assumptions
Assumptions

(1) A CNG pump experiences Peak hour rush for 4 hours


Non Peak Avg time to Avg no of
And Non peak hour rush for 10 hours Peak Time
Time fill Tank booths
(2) The Average capacity of a CNG tank is 10 Kg and it
takes approximately 3 minutes to fill the tank.
(3) Average number of booths per CNG station is 4 4 hours 10 hours 10 Kg
4
100 % 50 % 3 min

Strategy
Average Usage Ratio = (1x4+0.5x10)/14 = 0.64
(1) We will use the demand side approach. Capacity = 10x(60/3)x4 = 8000
(2) Demand of CNG = No of pumps x CNG supplied per CNG supplied per pump = 0.64 x 8000 = 5120
pump (in Kg)
Hence Total CNG consumed = 335 x 5120 = 1715200 Kg
(3) No of pumps will be estimated by segmenting Area
of Delhi into traffic zones and Area serviced by a pump
(4) The CNG supplied per pump = Supplying capacity x
weighted ratio of Usage Rates.

Page42
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Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#16 The Fit And The Furious
Calculate the Total Number Of Gyms In Delhi

Clarifying Questions Approach

Should I consider the population of Delhi or the people


from other regions working there as well?
Total Population
- Only Delhi’s population
2 Cr

Assumptions
Assumptions

- All gyms are identical in terms of capacity # of people Below Poverty Line Lower Middle Class Upper Middle Class Upper Class
- Gyms are spread out evenly throughout Delhi 20% ~ 400k 40% ~ 800k 30% ~ 600k 10% ~ 200k
- Peak capacity of gym is 20 people at any given time
- 80% of the customers visiting during the 2 peak
% age with gym
hours in a day, (Early Morning + After Work = 40) 5% 15% 25% 33%
membership
Therefore total 50 visitors in day.
- Assuming %age of active members to be 67%
- Total Number of Memberships/month = 60
Number of
memberships 20k 120k 150k 66k

Strategy

1. Split Delhi’s population of the basis of income


2. Assign differents rates of participation to
different segments of society on the basis of Total number of gyms in Delhi = (356k)/60 = 5933
demographic.
3. Calculate total number of gym goers in Delhi
aka calculating demand
4. DIvide the total demand by average capacity
assumed per gym.

Page43
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Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#17 Crow-trastophe
Calculate the Total Number Of Crows in Delhi

Clarifying Questions Number of crows in Delhi can be given by = Area Low Medium High
Area of forest cover x (Trees/Area) x (Nests / Tree) x Type Forest Forest Forest
Can I consider that the number of crows entering Area Area Area
the city is equal to the no of crows leaving the city? (Crows / Nest)
- Yes
Can I assume that all the crows rest on trees and Here, all the numerator values can be approximated Area 1050 Sq 300 Sq 150 Sq
not on buildings and residential complexes at based on the type of forest cover area they belong to. Km Km Km
night? Therefore, higher forest cover has a positive
- Yes correlation with the number of
Trees/ 200 500 1000
Assumptions (Sq Km)
Assumptions - number of trees.
- nests per tree
- Area of Delhi = 1500 sq km - crows per tree. Nests/ 0.10 0.15 0.20
- Estimated forest cover and subsequently, the trees - overall crows. Tree
in Delhi
Calculations Crows/ 4 4 4
Strategy nest

(1) The number of crows in Delhi at any particular


time are equal to the number of crows resting in Area of Delhi No of 84000 90000 120000
the trees at night and no crows are flying at night. 1500 Sq Km crows

(2) The number of crows can be calculated by


Number of crows in Delhi = Sum of number of
estimating the number of trees by taking into
account the overall forest cover and other factors crows in low, medium and high forest areas
like number of trees, nests and number of crows High Forest Medium Forest Low Forest = 84000 + 90000 + 120000
Cover (10%) Cover (20%) Cover (70%) =2,94,000 Crows
per nest
150 Sq Km 300 Sq Km 1050 Sq Km

Page44
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Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#18 Director’s Cut
Calculate the Total Revenue Generated from the Screening of Avatar in India

Clarifying Questions Approach


Total Population
135 Cr
Should i consider a day or total revenue?
- Total

Should i consider to be a Pan-India release? Rural Urban


- Yes 70% ~ 95 Cr 30% ~ 40 Cr

Assumptions
Assumptions
Below Poverty Line Lower-Middle Class Middle Class Upper Class
- Population of india - 135 cr. # of people
20% ~ 8 Cr 40% ~ 16 Cr 30% ~ 12 Cr 10% ~ 4 Cr
- Only people among (15-55) age bracket will go watch
the movie
- Released in 2D and 3D.
- Avg. price of ticket - 270 (English 2D), 350 (English 3D), people in 15-55 age 10 Crore 8 Crore 2 Crore
230 (Hindi 2D), 280 (Hindi 3D) bracket

% of people buying
Strategy tickets
2% 7% 10%

(1) Split the population in urban and rural. Tickets Sold 0.2 Cr 0.5 Cr 0.2 Cr
(2) Segmenting the urban demographics by income -
BPL, Lower- Middle class, Middle class, Upper class.
(3) % of people in (15-55) age bracket who will go watch
Total No of tickets sold = 0.2 Cr + 0.5 Cr + 0.3 Cr = 0.9 Cr
the movie will depend upon how affluent is that
Average Price of Ticket = 250
income-segment.
Revenue Generated = 250 × 0.9 Cr = 225 Crore

Page45
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Medium © 180 Degrees Consulting - Delhi Technological University
G#3
G#19 Mild As May
Calculate the Total Number Of Marlboro Reds sold each day

Clarifying Questions Approach


90 Lakhs

Should I consider the population of Delhi or the people


from other regions working there as well?
- Only Delhi’s population Male 50% Female 50%
# Gender
45 lakh 45 lakh
Should I consider only packs or loose cigarettes as
well?
- Consider both
# number of people Smoke 40% Do not smoke Smoke 20% Do not smoke
who smoke 18 lakhs 60% 9 lakh 80%
Assumptions
Assumptions
# Market Share TAM: 27 lakh
- Population of Delhi is 2Cr.
- 75% of population can legally smoke (18+) = 1.5 crore
- Financially, only 60% people can afford it since it's a
premium brand = 1.5 crore x 0.6 = 90 lakh Market Share Gold Flake Marlboro 20%
Classic 25% Others 20%
- Sex ratio 1:1 35% 5.4 lakh

Strategy
# Sub Brands Red 25% Gold Original Gold Others
1.35 lakh 20% Advance 35% 20%
(1) Estimating the number of smokers in Delhi

(2) Segmenting the companies on the basis of market


share
Total no. of Marlboro Reds sold in New Delhi in a Day = Chainsmokers (20%) = 1-2 Packs a day = 1.35 lakh x 0.2 x 30 = 8.1 lakh cigs
No. of Smokers in New Delhi x Market Share of Regular Smokers (60%) = 0.5 Packs a day = 1.35 lakh x 0.6 x 10 = 8.1 lakh cigs
Marlboro Red Occasional Smokers (20%) = 2 Cigs a day = 1.35 lakh x 0.2 x 2 = 54,000 cigs
No. of Marlboro Reds sold each day = (8.1 + 8.1 + 0.54) lakh = 19.4 lakh ≃ 17 lakh cigarettes

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G#3
G#20 Paytm Karo
Calculate the Total amount of money transacted through PayTM in a day

Clarifying Questions Approach Internet Penetration


135 Cr * 0.4 = 54 Cr
Should I consider B2B or B2C transactions or both?
- Only for B2C transactions

Should I consider both wallet and UPI transactions? Lower Middle Class Middle Class Upper Class
- Consider both # of people 40% ~ 22 Cr 30% ~ 16 Cr 10% ~ 5 Cr
Which day of the week should I consider?
- Any usual working weekday. # of people using 30% ~ 7 Cr 60% ~ 10 Cr 60% ~ 3 Cr
E-wallets
Assumptions
Assumptions

- Internet penetration in India is 40% 15-24 25-44 45+ 15-24 25-44 45+ 15-24 25-44 45+
- BPL population has not been taken into consideration Age Groups
- Population of India is 135 cr
- Market share of PayTM is 20%
Avg money per Rs.50 Rs.100 Rs.75 Rs.75 Rs.150 Rs.200 Rs.100 Rs.200 Rs.300
transactions
Strategy

(1) Segmenting the demographics with access to # of transactions


2 4 3 4 5 7 7 10 7
internet by income: per week
Lower middle class, Middle class, Upper class, and
further by age groups: 15-24, 25-44, 45-64
(2) Assuming the number of transactions per day along Total amount of money transacted through PayTM in a day =
with the average amount of transaction avg number of daily transactions x avg amount of transaction x number of people using
(3) Total amount of money = number of people using e-wallets x market share
e-wallets x avg number of daily transactions x avg ((1.4Cr×50×2 + 1.75Cr×100×4 + 1.4Cr×75×3) + (2Cr×75×4 + 2.5Cr×150×5 + 2Cr×200×7) +
amount of transaction x market share (0.6Cr×100×7 + 0.75Cr×200×10 + 0.6Cr×300×7)) × (1/7) × 0.2 ~ 275Cr/day

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Hard © 180 Degrees Consulting - Delhi Technological University
G#3
G#21 Uber Rich
Calculate the daily global revenue of Uber

Clarifying Questions Approach

Should we take only cab services of Uber into Density of rides booked can be segmented as Peak (100%), Medium (50%), Low (25%)
account? Peak time bookings are usually in the morning and evening when people are going to or coming back from
- No, consider Uber’s other profitable businesses as work. Density is medium around lunch time and is low for the rest of the day.
well
During Peak time, there would be maximum efficiency: 3 rides/ hour
Do you mean global revenue for any day? Medium Time: 2 rides/ hour
-Yes. Calculate global revenue of Uber for today. Low Time: 1 ride/ hour

Assumptions
Assumptions
Since Uber is a US-based, we consider that it generates
50% of its global revenue from its home country.
- a driver works from 7 am to 12 am
- Average earning of a driver = $20 per hour

Strategy

Revenue Generated in USA =


Average revenue of an Uber x # Uber cabs in USA

Global Revenue of Uber = 2 x Revenue generated in


USA

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Hard © 180 Degrees Consulting - Delhi Technological University
G#21
G#3 Uber Rich
Calculate the daily global revenue of Uber

There are 3 profitable businesses of Uber : Uber rides, Uber eats & Uber freight. We
Total Uber Rides booked in one day will consider the total revenue comes from these 3
3 x 4 + 2 x 3 + 1 x 11 = 28 rides/day

Considering 5% of the trips get cancelled = ~ 26 rides/day


Uber
Revenue Generated from one cab = 26 x 20 = $520 per day

#Number of cabs in USA:

Population of USA = 330 M = 33 crores


Assuming each location caters to 10000 people
Uber Rides Uber Eats Uber Freight
Total number of cabs in USA = 33 crores/ 10000 = 33000 cabs

Uber being more popular than Lyft and other cab services, let us
assume that 70% of the cabs belong to Uber. Therefore Considering revenue generated from Uber Eats is 40% of Uber rides
#Total number of Uber cabs = .70 x 33000= 23100 Uber Cabs #Revenue by Uber Eats = 0.40 x $12.12 M = $5M

Considering revenue generated from Uber Freight is 20% of Uber rides


#Revenue by Uber Eats = 0.20 x $12.12 M = $2.5M
#US Revenue of Uber rides =
Total Number of Cabs x Average Cab Revenue = Total revenue of Uber in US = $12.12 M + $5 M + $2.5 M = $19.7 ~ $20 M
23100 x $520 = $12.12 M
Global Revenue of Uber = 2 x $20 M = $40 M

Considering 20% of this revenue comes from UberX & Uber Inter City
Revenue = $12.12 M + 0.20 x 12.12 = $14.8 M ~ $15 M

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Hard © 180 Degrees Consulting - Delhi Technological University
G#22 Ex-Static
Calculate the total number of EV Charging Station required in India

Clarifying Questions Approach Total Urban land area


200K sq km
Should I consider only 4 wheeler charging stations or 2
wheeler also?
- Consider only 4 wheeler charging stations
Residential Commercial Road Forest/Agriculture
Considering the penetration and affordability of EV , 30% ~ 60K sq km 25% ~ 50K sq km 30% ~ 60K sq km 15% ~ 30K sq km
should I consider the urban areas only ?
- Yes, consider the urban land area only

Assumptions
Highways Local/Small Roads Ring/Main roads
- Area of India is 10000K sq km 30% ~ 18K sq km 30%~ 18K sq km 40%~ 24K sq km
- Urban land area : Rural land area=20:80
- Highways = 30% , Main/Ring roads= 40% and
Local/Small roads =30%
- 60% area is considered in main roads because of 6-lane 4-lane
National State
infrastructure not being fully developed in Tier-2,3 cities. (8- Lane) 60% (6- Lane) 40% 50% 50%
- 1 lane road approx length = 4m. ~10.8K sq km ~ 7.2K sq km ~12K sqkm ~12K sqkm
- Public charging station every 80 kms, Fast charging
32 m 24 m Width of road 24 m 16 m
stations every 100 km.

Strategy 3,37,500 km 3,00,000 km 5,00,000 km 7,50,000 km

(1) Segmenting the area into


residential,commercial,forest and road networks. Total road length = 3,37,500 + 3,00,000 +7,50,000 km = 13,87,500 km
(2) Further segmenting road network into Considering, a charging station every 80 km and a fast charging station at every 100 km.
highways,main roads and interconnecting local roads.
On an average there will be a charging station every 90 km.
(3) Length of the road= Area of road / Width of road
(4) Number of charging stations = Length/Avg. Total number of EV charging stations = 13,87,500/90 = ~15,400 stations
distance per charging station
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Hard © 180 Degrees Consulting - Delhi Technological University
CASES & FRAMEWORKS
Cases: Structure & Approach
The case interview round is an integral part of the interview process for most consulting/analytics firms. It is often a part of the ‘fit’ interview as
well where the candidate is usually judged upon analytical thinking, business acumen, problem solving skills and creativity.

A case can simply be thought of as a business problem that has to be solved by you. You would need to analyse the situation, isolate the problem
and then move on to suggest your solutions. You must remember that solving a case in front of a stranger, while talking them through it, is
completely different from reading through case interview transcripts at your comfort or even attempt it by yourself while taking the help of the
interviewer’s text. So always make it a point to practice case-solving with another person.

The key here is to understand the situation on multiple levels and identify the pain points using a mutually exclusive & collectively exhaustive
breakdown, while simultaneously engaging the interviewer and explaining your approach.
Discussing your numbers, thoughts, questions will help the interviewer understand your thought process and will also allow him/her to guide you
through it. Listen to their feedback, they usually drop hints and help you navigate through the intricacies of the problem, provided you are asking
the right questions!

It is always better to customise the structure for The devil is in segmentation. Make sure while you
Summarise your understanding of the case and
your case using the essential frameworks and are trying to isolate the problem that you properly
company in question and clear out any doubts
not saying that you’re using them directly. Once segment each branch and ask relevant questions.
regarding the problem statement. Get the basic
you have finalised an overview, take your Use the 80:20 rule to prioritise the branch you want
understanding of the situation before proceeding
interviewer through it. Always, fall back upon this to drill through. After the problem has been
to drill down into the other factors.
while going back and forth on segmentation. isolated, suggest innovative solutions to it.

CLARIFY EXTRACT STRUCTURE SEGMENT SUGGEST

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© 180 Degrees Consulting - Delhi Technological University
Cases: Structure & Approach
PROTIPS

➔ While navigating through the case, first try to have a clear picture of the structure in your mind, and then try to elucidate that with the same clarity.

➔ It’s okay to stumble onto a wrong path and try to retrace your steps back to a point. Don’t let this derail your train of thought, maintain composure.

➔ The best way to go around the case preparation phase is to practice with a friend, or a case buddy. Pair up with your friends who have the same
level of preparation as you and take turns of attempting cases being in the roles of interviewer & candidate. In this scenario, the interviewer must
have read the case beforehand, understood the problem analysis and the kind of answers that should be given to the questions.

➔ Do not miss out of the creative aspect of any business problem and compel yourself to think innovatively as well. It’s always recommended to
apply your insights from the current industry trends and real-life examples to earn brownie points.

➔ Regularly read the business news, keep up with the market trends and familiarise yourself with the different factors unique to each industry. Refer
to: Business Insider, CNBC, Mint, Finshots, r/consulting

➔ Practicing vocal delivery of your analysis > Practicing analysis itself.

➔ While reading the casebook, you should try to apply the learnings and insights from one case to another and try to form your personalised analysis
structure that best suits your way of thinking and naturally comes to you while approaching problems.

➔ Do follow the frameworks shown in the earlier section as a generic layout of how to approach any given case, inculcate them but do not memorise.

➔ Lastly, do not overdo the preparation. Just practice a diverse set of cases enough to equip you to walk through your thinking aloud and explain
your analysis in succinct sentences.

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© 180 Degrees Consulting - Delhi Technological University
CASES

PROFITABILITY
Framework: Profitability
Key Parameters
Profitability cases are the most common type of cases and their Solution Structure
importance stems from the fact that profit-making is the ultimate goal of Magnitude of Loss/Profit
every business problem. Trend History
Scoping the Affected: Profits or Profitability
These deal with revenue issues, cost issues or both. One needs to identify Operating Margin
the key revenue and cost parameters, deconstruct the problem into Problem
Industry-wide or Company-specific
components and isolate the cause for a poor bottom line.
Product Mix & Revenue Streams
To be solved effectively, a profitability problem requires proper scoping
and isolation using the drill-down approach.
Market Disruption
Customer Priority Shift
Profits
Industry Analysis Change in Regulatory Policies
Price War

Revenue Cost Target Profit & Timeline


Raw Material Substitution
Agile Manufacturing
Price Cost per
#Units #Units Resolution Opportunistic Sourcing
per unit unit Backward Integration
Machine Utilization vs Downtime
Outsourcing Decision
Market Market Fixed Variable
Size Share Costs Costs

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© 180 Degrees Consulting - Delhi Technological University
Framework: Value Chain
This type of case is usually implemented in a cost reduction case where a company is aiming to reduce their After identifying a problem within
bottom line. The best way to reduce cost is to follow the journey of a product/service through its lifetime. the profitability framework
(Cost/Revenue/Both), it is
The fundamental idea behind the value chain analysis is to understand different steps that add value to the generally effective to delve into
the value chain and to drill down
product and identify the abnormalities/inefficiencies arising in any of them.
for RCA (Root Cause Analysis) of
the stated problem.
One is expected to identify various cost components and validate them, identify major cost drivers and then
recommend how the company can change its ways to become more cost efficient.

After Sales
R&D Sourcing Warehousing Storage Manufacturing Transportation Distribution
Service

Equipment Raw Materials Plant Rent Inventory Technology Mode Sales Channel Accessibility

Service Time &


Human Capital Procurement Machinery Labour Overhead Cost Negotiation Sales Force
Cost

Capacity Network Repairs &


Finance Cost EOQ SKU Visibility Automation Training
Utilization Optimization Returns

Process Turnaround Customer


Make/Buy Penetration
Efficiency Time Satisfaction

Retailer
Shelf Space
Rationalisation

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G#3
C#1 N(ice) Cream
Profitability | Profits Decline

The client is an owner of an Ice Cream Chain that has witnessed a decline in profits recently. You have to find out the root cause for the same, and suggest how to
improve profits.

So just to clarify the question - I have to identify the reason behind the decline in Okay, Let me draw the value chain first. So there are 3 segments in value chain -
profits of the Ice Cream Chain and suggest ways to improve profits, correct? production, distribution and customers. Are there any changes in these
parameters?
Correct. Please go ahead. Assume, there are no changes in production and distribution. It has remained the
same. You can move on to other parameter.
How long have they been experiencing a decline in profits?
Where do they lie in the value chain?
Profits have been declining since the past 5 months.
They send the icecream to the distributor who sends them to large retail stores and
Okay, and is there a specific region in which the chain is facing a decline in profits? medium retail stores. They further sell the icecreams to the end customers who buy
them.
No, this issue persists in all regions of India.
Okay, so we should analyse the cost segment as well. Is there any change in our
Okay. What kind of ice creams do they manufacture, and in what forms are they fixed costs or variable costs?
sold?
Variable costs have decreased, but fixed costs remain more or less the same.
They manufacture cow-milk based ice creams in common flavours like chocolate,
strawberry, vanilla etc. They sell these in the form of ice cream bricks and bars. I understand. Since production and distribution are the same, and costs have
decreased, the number of units being sold must have decreased. The problem could
And what about companies that manufacture similar ice cream products? Have they
be because of:
been facing losses as well?
1. Distribution Push Issue
Yes, their competitors are also incurring losses. It seems to be an industry wide 2. Customer Pull Issue
This means that:
issue.
1. The shopkeeper is not selling (pushing) the icecream to his customers, or
Okay. Have their product changed with respect to their competitors in terms of 2. The customers are buying someone else’s products
physical appearance, size or taste? First, let’s focus on the distributor push issue.
So, the main source of profits of retail shopkeepers are trade margins. Does the
No, there are no changes in their products. decrease in variable costs also include a decrease in these margins?
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G#3
C#1 N(ice) Cream
Profitability | Profits Decline

The client is an owner of an Ice Cream Chain that has witnessed a decline in profits recently. You have to find out the root cause for the same, and suggest how to
improve profits.

Yes. The company has cut costs by reducing trade margins.


Profits
That explains why distributors are not pushing their products. Coming to the
customer pull issue, the introduction of brands that offer healthier alternatives - like
sugar free, jaggery based, high protein, low carbohydrate could be the reason. This
Costs Revenue
aligns with the timeline, as they started gaining popularity about 6 months back.
These brands also offer unconventional flavours, which most ice cream chains do not
offer. Moreover, the fact that they offer greater trade margins could be the reason No change in fixed costs,
shopkeepers are pushing these products more than our client’s. decrease in variable costs. # Units Price/ unit

That is a good deduction. How do you think the client can improve?
Decrease in demand of
1. Introducing similar healthy alternatives will expand the consumer base of the product.
the ice cream chain.
2. Changing their product mix: adding icecream cakes, flavored ice etc
3. Offering certain perks to traders if they sell the client’s icecream beyond a
certain threshold Distributor Consumer
4. Launch a campaign where consumers send in funky flavours that they push issue pull issue
would like to try in an ice cream shop, and the best ones are launched
Customers buying
Shopkeeper not pushing
Alright. Good job! another brand’s
products to customers.
products.

Observations Recommendations
Decrease in trade
margins of Healthier alternatives
➔ Client cutting down trade margins ➔ Introduce similar healthy alternatives shopkeepers with greater variety
decreases the incentive for ➔ Different product mix
shopkeepers to sell their ice creams ➔ Trader perks

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Easy © 180 Degrees Consulting - Delhi Technological University
G#3
C#2 Under The Weather
Profitability | Revenue Decline

The client is a global Pharma company that have a well established business in two products- paracetamol and allergic medicines. It has recently seen a decline
in profits and got you onboard as a consultant to diagnose and recommend solutions

I would like to begin with a few clarifying questions on our client. As per my So, the profits can be broken down into revenue and cost. I would like to know if the
understanding our client manufactures two drugs that are commonly used. Is that
declining profits is due to declining revenues or increasing costs?
correct? Is there any other business that our client is engaged in?
Think from a cost point of view but also consider a component of revenue
None. Manufacturing only these two products are manufactured. Please go ahead.
There are two products with individual revenue streams.
Are the operations of the client global or in any specific geography and has there Revenue of the Product = Price x Ticket Size x Frequency of demand.
been a decline in the volume and is it affecting across the industry or just or To understand the problem better. I will analyse these components individually
company?
The client operates globally but focus on India here, with primary revenue coming
Good, that is the right approach. Now think on lines of cost as well
in from urban markets, and the market share has significantly dropped. Further,
the fall in the volumes and the problem is specific to our firm only. I would like to know if there is a problem in the variable or fixed aspect of cost.
Since the client specialises in drugs that are used in frequent illnesses like fever or
There is problem in the production, in terms of efficiency, hence variable costs
cold, I would assume they are not prescription drugs (over the counter). Is that fair?
All these drugs aren’t sold over the counter across the world, consider the case to Is the output constant throughout the year or is it dependent on the demand?
be India centric.
The output remains constant throughout the year
Of each of the drug, what is the percentage share in manufacturing and have both of
them seen a decline in profits? The constant output could be a reason behind inefficiency in production. It is to be
considered that demand for these drugs vary and especially peaks in winter hence
Both have seen a decline in profits. Their share in manufacturing wouldn’t be of production should be adjusted accordingly
relevance here since it is in proportional magnitudes

Okay, does the client operate across the value chain or manufacturing in only a Yes, you are thinking along the correct lines
particular part of it On the other hand, the fall in the demand can be because of various factors- new
The client operates across the value chain entrants, branding, sales and marketing and competitors performances. Which
segment should I focus on?

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Medium © 180 Degrees Consulting - Delhi Technological University
G#3
C#2 Under The Weather
Profitability | Revenue Decline

The client is a global Pharma company that have a well established business in two products- paracetamol and allergic medicines. It has recently seen a decline
in profits and got you onboard as a consultant to diagnose and recommend solutions

Focus on sales and marketing Profits

Since these are over the top drugs, we should focus on marketing efforts through
advertisements. Most people are used to using a particular brand for common
Revenue Costs
illnesses so it is imperative that we do a brand overhaul through increased marketing
efforts

Yes, it has been found that the client hasn’t been focusing on marketing and with Allergy
Paracetamol
new entrants in the market who have run excellent marketing campaigns, the shift Medicines Variable Fixed
to the new products by the consumers is visible

From revenue perspective, the client would need innovative marketing strategies- Ticket Raw
1. Targeted marketing campaigns to focus on the safety of the drug Price Frequency Labour Production
Size Material
2. Making the number of tablets available in the leaf of the medicine vary so
as to be purchased by people for one time or short period of time use
3. Exploring new geographies. Rural Markets specific campaigns Decrease in the number of Reduced efficiency due to
medicines sold due to lack uniform production without
of focus on marketing taking demand into account
Great! Now moving to the cost aspect?

From variable cost perspective, I would recommend the following changes- Observations Recommendations
1. Studying demand trends and tweaking production accordingly
2. With the current production line in place, production should be decreased ➔ The client hasn’t focused on marketing ➔ Targeted Marketing Campaigns
during summer months to save costs while producing enough during winter through advertisements ➔ Variety in leaf sizes available
months to meet the demands ➔ The client’s production isn’t in line with ➔ Exploring new geographies
the demand ➔ Production according to demand with
Good Job! Thank You! higher production in winter months

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Medium © 180 Degrees Consulting - Delhi Technological University
G#3
C#3 Stay On Trend
Profitability | Profits Decline

The client, a leading fast fashion corporation based out of Sweden has a sizable market and over the the past 5 years profits have been slowly declining while
the revenue is constant. You have been hired to find out the pain points and recommend solutions for the same.

I would like to begin with a few clarifying questions on our client. Is this a company Profits
specific problem or others brands are facing it too?

It’s an industry wide problem but we’re the worst hit out of all competitors. Revenue Costs

Understood! Profits consists of revenue and costs. What should I focus on here?
# Units Price/ unit
You can work on both given that both have taken a hit lately. Variable Fixed

Possible revenue loss due to Worker expectations


To understand the firm better, what sort of articles does the brand manufacture? trend of sustainable fashion rising in labor market,
emergence of unions.
Our product catalogue is extremely diversified in terms of both - types of products Raw Packaging ,&
and designs available. We regularly update our outlets with latest trends. Material Transportation Sales

Great! Let’s look at the breakdown of costs since revenue has only fallen recently. R&D Manufacturing Distribution
Customer
Service
Should I drill on fixed costs or variable costs?

It has been noticed that variable costs like raw material and labor have significantly Observations Recommendations
increased due to instability in Bangladesh where our factories are located.
Noted! Considering that revenue has only fallen recently, can this be attributed to a ➔ Variable costs have shot up ➔ Shift towards sustainability
specific event which might have caused a decline in volume of products sold? ➔ Revenue has gone down recently ➔ Sourcing/raw material acquisition
➔ Industry wide problem strategy improvement
Yes! In fact recently there has been an upsurge in people protesting against fast ➔ Incentivizing work by giving non
fashion because of its unsustainable nature and high environmental degradation. monetary benefits to labor
Consumer behaviour has changed in past 2 years.
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G#3
C#4 Adventure Awaits

Our client is an online travel aggregator (OTA) with operations in multiple countries. Management has observed a steep decline in profit after the first financial
quarter of 2020 even though the revenue has shot up. You have been asked to figure out the reasons behind the decline and initiate action to resolve underlying
problems.

What is the objective of the client here? What is the timeline for the same? By (iv) Adding “not so popular” destinations to the list. People might not want to
tourism do you mean the local tour and travel at the tourist spots or the travel travel to places which are infamous for being massively crowded. So some tourist
and accommodation as well? destinations that attract fewer crowd can also be a point to sell.

We want a framework to understand the situation, and recommendations to improve the Great. Let’s move on to accommodation now. How you’ll analyze that?
situation. Tourism for us covers Travel and accommodation only because we don't
From my experience, there are three major accommodation options at tourist
generate much revenue from local tour and travel.
places - Hotels, Homestays, and Youth Hostels (Bagpacker hostels). Hotels can
Sure. I would start by dividing the problem into three components - Travel, further be classified into low, mid and high-end ones. I would like to focus on hotels
accommodation. as that is the most significant category.
Sounds good. Let’s start with travel. Sure. Let’s consider mid and low hotels to be the same. What would you suggest the hotel
Travel can further be divided into three means - Railways, Roadways, and owners, so they can improve their profits ?
Airways - Airways can be further divided into National and International travel. Sure. Profits depend on revenues and costs. For the low-end category, increasing
Since International travel is restricted due to COVID, I’d focus on domestic revenues is not an option as the number of tourists are falling, and they can’t
travel only. Revenue share of Railways in travel would be minimal because it is increase prices as low prices is their value proposition. They should focus on
not directly operated by the client so we will mainly focus on domestic airways reducing costs by eliminating complementary services like free breakfast (will
and roadways. For travel, three things come to my mind - (i) The client can also help improve the contactless experience). They can also launch plans for
have special group packages to promote tourism. This could include long-term room rentals for activities like work form mountains etc. High-end
everything from travel to accommodation. (ii) Heavily advertising and hotels have the advantage of serving the premium customers who’d be willing to
assuring the customers that all the places would be cleaned and sanitised pay more. They can charge additional sanitization fees and sell complementary
before visit. Bringing health and wellness to the forefront by adopting more services like hotel stay insurance.
contactless technologies. (iii) The client can further partner up with insurance
Great. That will be all. Thank you!
companies, to offer medical coverage at low premium. Because of the COVID
scare, people would be interested in this.
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G#3
C#5 Shocking Experience
Profitability | Profits Decline

The client is XYZ electric that has witnessed a decline in profits. You have to find out the root cause for the same, and suggest how to improve profits.

So just to clarify the question - I have to identify the reason behind the decline in Now, I would like to look at the value chain to isolate the problem. The value chain
profits of XYZ electric and suggest ways to improve profits, correct? consists of mainly three segments i.e production, distribution push and customer
pull. Can I know which one of these has changed?

Correct. Please go ahead. The client is facing a problem with customer pull. The customers are more inclined
towards the competition’s product.
Is it an industry wide problem or a company specific problem? Since when is the
profit declining? Is it due to an issue with advertising and marketing of the product?

It is company specific problem and the profits have been declining since the past one No, there is no issue with the marketing strategy since most people are aware about
year. the client’s product.

Can I know the kind of products that the client manufactures? Are there any Do the competitors offer any lucrative schemes or discounts that our client does not
competitors? provide?

The client manufactures only 1 type of product - EV scooters. We have 3 competitors No, the client offers the same schemes as their competitors.
and they sell same type of products.

I will start by breaking profits into revenues and costs. Since profits are declining, Since the problem is not with advertising and discounts, I would like to know more
it can be due to decrease in revenue or an increase in costs or a combination of about the brand perception of our client in the market.
both. Can I know which one of these is the problem?
Okay, so recently there have been news reports that the client’s scooters are prone
The revenues are decreasing. to fires and there have been several incidents highlighting this issue.
So, since there have been news reports about scooters catching fire, people are
Okay, revenues can further be broken down into the number of units sold and concerned about their safety and are not buying the product anymore.
average price per unit. Which one of these is facing a decline?
The number of units sold have declined. Now that you have identified the cause for the problem, you can move to the
recommendations for the client’s problem.

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G#3
C#5 Shocking Experience
Profitability | Profits Decline

The client is XYZ electric that has witnessed a decline in profits. You have to find out the root cause for the same, and suggest how to improve profits.

I will divide my recommendations into scooters that have already been produced
and new scooters. For existing scooters, the client could explore the possibility of Profits
providing replacements free of cost or they can upgrade the existing scooters so
as to minimize the possibility of them catching fire. For the scooters that are yet
to be produced, the client can invest more in R&D to mitigate the problem.
Revenue Costs
That sounds good. Thanks.

# Units Price/Unit
Observations Recommendations Variable Fixed

➔ Problems in the demand side ➔ Existing scooters: Decreased number of units Customers are hesitant to buy
➔ Issues with brand image due to a. Provide replacements free of cost the product due to safety
due to the decrease in demand
negative news reports b. Upgrade them to minimize the concerns
of the product.
possibility of catching fire
➔ New scooters:
a. Invest more in R&D to mitigate the
problem
Production Distribution Push Customer Pull

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G#3
C#6 Watch Out
Profitability | Profits Decline

The client ABC Watch, is a watch manufacturing company whose profits have been declining in the past 6 months and has slipped to number 2 in terms of market
share. You have been approached to identify the core issue behind this and suggest a few recommendations.

Could you please help me understand 1. What are the geographies that we Yes, it seems a fair assumption. Let's start with the revenues and then the costs.
operate in 2. What are the type of watches that we manufacture i.e., casual wear,
business wear, smartwatch 3. Who are our primary customers and 4. What is the Revenues can be split into volume, value and variety. So, either the volumes might
competitive landscape? be going down, or the price or there could be a problem with the product mix.

The client has presence across the country, assume that the client manufacturers all That’s a fair split of revenues. What can you think of product mix specific to this?
types of watches for all types, age groups, gender etc. And the competition is intense
amongst top 5 watch players while rest of the market is fragmented. One of the potential reasons relating to product mix could be change in customer
preferences towards casual watches over business/formal watches especially
during the covid times. As most of the working population has been working from
Since there has been a sharp decline return of shareholder’s equity, has the client home recently, and while working from home one would prefer casual watches.
seen a decline in profits? there would be lesser demand for business/formal watches.

Yes, there has been sudden spike in the demand for casual watch. While the
The client has been witnessing sudden and significant decline in profits. competitors have been readjusting their product to match the demand, our client has
been missing out on that readjustment. Can we also look at the other component of
Since when has the client been seeing decline in profits ? And is it only specific to
revenue that we mentioned earlier i.e. volumes.
our client which has seen the decline or the other watch manufacturers in the
industry have also seen a decline? Sure, the decline in volumes can be either due to fall in demand or a supply side
constraint i.e. either the client is not getting enough demand for its products, or
The client has been seeing the decline in profits from the past 6 months. Also the
the client is not able to match the demand with its supply.
client has been significantly impacted due to which the other competitor has become
the market leader pushing our client to number 2 in terms of market share. It is a supply side issue. How would you look at a supply constraint problem?

So, either the revenues could be declining, or the cost could be going up or both I would like to lay down the value chain for a watch manufacturer to assess if
relative to the competitor. Considering our client is losing market share, will it be there is a problem in any of the individual components. For a watch manufacturer,
fair to hypothesize that the revenues are declining first and then maybe later, we the value chain would begin with sourcing of raw materials, in-bound logistics,
can have a look at the cost side of the client. manufacturing, packaging, warehousing, distribution, sales & after-sales support.

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G#3
C#6 Watch Out
Profitability | Profits Decline

The client ABC Watch, is a watch manufacturing company whose profits have been declining in the past 6 months and has slipped to number 2 in terms of market
share. You have been approached to identify the core issue behind this and suggest a few recommendations.

Alright, let’s look at distribution.


Profits
So, the distribution channels could be either physical or online or an omni-channel
distribution. Under physical it could be either through own stores, or a franchise or
both. And under online it could either be directly through own website or through Revenue Costs
an online aggregator. Which of these model does the client follow.
No change in
The client sells its products through its own physical stores. Volume Product Mix fixed costs.

And to benchmark it with the competitor’s distribution channel, does the client also
operate only through its own physical stores?
Supply Demand
No, the competitors have been using an omni-channel distribution strategy.
Manufacturing Warehousing Sales

Due to the pandemic restrictions, the customers have resorted to online shopping.
Packaging & Distribution Customer
Since the competitors had an omni-channel strategy, they were able to capitalize Raw Material
Transportation Service
on the online demand, while our client couldn’t re-adjust rapidly. This might also
Omni-channel
explain relative increase in costs, as the client owns its physical store, there would
have been fixed cost being incurred in the form of space, people and overhead
costs relating to the stores irrespective of the quantum of revenues. Observations Recommendations

That’s correct. Interesting that you could relate it with the cost aspect as well. ➔ Client was not operating on the ➔ Rebalance its product portfolio to
omni-channel strategy while the match the market demand.
competitors did. ➔ Use customer analytics to predict in the
➔ Client incurred fixed costs because long term.
physical stores. ➔ Adopt an omni-channel strategy

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CASES

MARKET ENTRY
Framework: Market Entry
In market entry cases- be it a new product launch, entering a new geography or both- there are two basic considerations –

a) Is it a good idea? b) How to enter?

The first step is to understand and explore the opportunity by thoroughly analysing the following 4 parameters:
Industry, Customer, Product and Company. This is followed by metric evaluation and finally a mode of entry is chosen.

New Market Entry


Objective - Exploring the opportunity

Industry Customer Product Company Entry Strategy

Demand Needs Product


Competition Scratch
Supply Gap Offerings

Entry/Exit Growth Consumer Capital & Acquisition


Barrier Expectation Resources

Segmentation Joint Venture


Market Size USP Market Share

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Framework: Market Entry Evaluation Metrics
Evaluation Parameters
To enter a new industry
● Whenever you are required to make a decision - develop a Reason of choice of chosen industry
choice rule or a mathematical metric of evaluation - as the Motivation Strategic Intentions
choice cannot be made entirely based on qualitative analysis Economic Intentions
and quantitative metrics need to be developed in order to Cost-Benefit Analysis
exercise the choice.

● This evaluation is a function of 4 parameters: Cost of Capital and R&D involved


Motivation, Profitability Targets, Investment Constraints
Target Rate of Return
and Competitive Positioning.
Profitability Target Target Market Share
● This approach helps one answer the two fundamental Target Revenues and Profits
questions associated with market entry: Target Payback Period
a) Where to invest: Geographically and in value chain
b) How to Invest: Mode of entry
Levels of investment (Upfront/Residual)
● Protip 1: Not every aspect of the framework mentioned will be Geographical Feasibility
applicable to all cases, but try to cover as much as you can, Investment Constraints Opportunity Cost of Investment
so that you get a good idea of the industry and the client Synergy with existing product lines
current status.

● Protip 2: It is very important to identify where the client would Brand Equity
stand in the industry compared to the existing competitors Economies of Scale
and the measures to be taken to mitigate competitive edge of Competitive Positioning Supply chain/Distribution Synergies
incumbent.
Patent/Proprietary Technologies
Organization Design/structure

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Framework: New Product Entry Evaluation Metrics
A subset of Market Entry case, here, the company aims to introduce a Evaluation Parameters
completely new product, expand its existing product line or extend reach in Value Proposition
a new geography. Target Customer Segment
Product Analysis Substitutes
One has to analyse the viability of success and feasibility of entry, followed Cannibalization
by identification of the correct price point and target segment and finally Product Segment
recommend levers that can drive product success in the market.

Growth Opportunities
New Product Size
Industry Analysis Competition
Entry/Exit Barrier
Distribution
Initial Value Chain Break-even
Investment Challenges Point
Financial feasibility of market entry
Production cost
Self Financed Production #Units Sold Economical Analysis Launching cost
Pricing (Refer to Pricing Framework)
Debt Financed Price/unit Break-even volume/ period
Distribution

Equity Financed Fixed Cost Existing product line


Marketing Strategic Fit Company resources/capabilities
Variable Technology disruption risks
Cost/Unit

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G#3
C#1 What’s In Store?
Market Entry | Market Sizing

Your client visits Germany and is amazed by their third party storage units system. Evaluate if replicating the same business model in India would be feasible or
not and if it is, suggest ways to approach the same.

I would like to understand the case a bit more. What type of storage units are we Okay. And if you could tell how will you price your service in the market ?
talking about here, are these self storage spaces or warehouses or godown facility?
The rent would vary from Rs. 2000 to Rs. 3500/month. It will depend on additional
facilities demanded by the customer as well.
Sure, here we're talking about self storage spaces. We plan to keep four sizes for
Also, since we will be building these storage spaces from the scratch, will the
the storage space (5X10, 10X10, 10X20, 20X20).
construction be insourced or outsourced.

Also, will it be a rent based model or subscription based model? The construction work will be insourced.

It will be a rent-based business model. Alright. I have good information to proceed with my analysis. Since it's a new industry,
I will begin with analysing the market attractiveness and then move to analyse the
operation aspect as in setting up of the value chain and potential barriers, if any.
Okay, to get a better understanding, if you could clarify the objective behind
replicating this business model and what’s the current competitive scenario in India.
That sounds right. let's start with market sizing and market segment. I want to see
your approach. Focus on numbers.
There are few small companies that provide self storage services in India. Most of
our competitors offer it as a side business within their existing logistics warehouse Sure, I will begin with population approach. Apply filters of urban and rural, you
or facilities used for other purposes, whereas we wish to cater to only the proceed with urban and apply filter of income segment(lBPL, lower-middle, middle
self-storage space user segment. Another reason for us to choose this model is and upper). Ignore the BPL segment and the lower-middle class segment, the upper
the positive impact of urbanisation on this market. class(10%) and middle class(30%) population would add up to 16 crore people.Divide
this number by four to get the number of families, i.e 40 lakh families. Assuming that
around 40% of the households would require the service, the market size would be
Okay. And, if you could tell, what would be the market share of these companies? approximately 16 lakh households.
These small competitors are fragmented and individually have around 5% market That’s about right, what segment do you suggest we should target ?
share each.

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G#3
C#1 What’s In Store?

The upper class and middle class segment should be the target. The reason being
the rising rates of property and reducing size of accommodations due to rapid
urbanisation and rise in population. They will be in need of the storage spaces and
will be capable to rent them out as well.

What do you think would be our market share? Profits

Since these small fragmented businesses hold a market share of 5%, ours would be
at least 5% as well, leading to 80,000 households.
Revenue Costs
And do you think there will be any risk involved ?

● Huge amount of capital requirement for land


● Cost of customer acquisition # Units Price/Unit
● Entrance of new competitors, since a new rising industry Variable Fixed
● Theft/Safety concerns

Decreased number of units


That is a good observation. Now let's focus on setting up the value chain. How do
due to the decrease in demand Land Cost, Equipment Cost
you suggest we go about it.
of the product.
Understood. The first requirement would be land procurement, probably near
residential areas like colonies or apartments. Second would be to setup a packers
and movers service, and ensure transportation services for goods as well, For
marketing, we can use billboard advertising in the residential areas, as well as radio Production Distribution Push Customer Pull
and TV ads. Another requirement would be for skilled service staff which would
handle the facility and provide customer support and address their grievances. Staff
training would be needed.

Sure. Good Job! Thank You!

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G#3
C#2 No Dirt On Soil
Market Entry

The client is a fertilizer and pesticide manufacturer, they have developed a new soil treatment powder. Evaluate if they should enter the marker or not? If yes,
then suggest ways for the same.

Do you know if the company has already decided to enter the market or if they Due to India's enormous population, even that section has a sizable population. But
are still considering it? And why is the client trying to get into the soil treatment do we have the financial and operational resources to introduce products in India?
How is our brand recognition for other items in India as well?
business?
The client is a well-known fertilizer company in the western hemisphere. The brand
Client hasn't made a decision yet. They intend to enhance their market share and has been operating in India. We have a productive distribution network and the
diversify their portfolio. ability to manufacture all main products. Moreover, the existing business has solid
Would you please tell me about the market for soil treatment powder? Size, finances.
industry competition, etc. Does the client intend to expand geographically, as
The majority of these elements seem favourable, but what about India's laws and
well?
regulations? any restrictions, such as labour laws,, etc.?
The total market size for P. biofertilizers in India is valued at $ 99.59 million and is in
its infancy. The market although relativity small, is moderately consolidated with All non-urea products are free from government price regulation, making the market
presence of multiple dominant players. We initially want to focus on entering India. largely open and free.
For operational choices, we can utilize the current distribution system. If necessary,
I will analyse the possibility using four criteria: our product, customers, capabilities,
more workers and specialists need to be hired. We can use the current
and regulations. I would consider the execution phase if we decide to enter.
manufacturing facilities, and if the current production capacity proves insufficient in
The strategy seems sound to me. the future due to their excellent financial position, expanding their production
capacity won't be a problem.
What is the USP of our product, starting with the product itself? How do our
offerings and quality compare to those of other products on the market? It seems like a good idea.
The product is getting increasingly price competitive with traditional options and its We are now absent from soil treatment (Bio-fertilizer) Industry. Therefore, we must
non-hazardous nature. Our product has the advantage of being formalized in-situ, market our product. Although we can advertise the product using our
leading to a very high shelf life. Our product passes all export standards for cereals. already-established brand name, we would also need to undertake a distinctive
marketing effort to underline our USP in this fiercely competitive sector.
Our product appears to be quite appealing. Are clients restricted to larger farms,
The product marketing strategy appears to be sound.
especially in a country like India, which has a high number of small scale and
subsistence farming setups?
Do you want me to look into any other facets of the case?
Bio fertilizers are still to gain price competitiveness with traditional NPK fertilizers,
making them an option limited to large and medium scale farmers. The case can be concluded here, Have a great day!
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G#3
C#2 No Dirt On Soil
Market Entry

The client is a fertilizer and pesticide manufacturer, they have developed a new Soil treatment powder. Evaluate if they should enter the marker or not? If yes,
then suggest ways for the same.

Observations Recommendations

● Portfolio Expansion, establish the


Expansion organization as an early mover. Can launch the product under the existing brand, or a
Rationale ● Government support JV/Consortium. Use of existing brand and manufacturing
Entry Options
● Future growth driver facilities is the most optimal option provided the necessary
capacity exists.
● Non toxic to humans.
● Increased sustainable use possible when
USPs
compared to traditional chemical based
Use the existing facilities and logistics infrastructure to facilitate
products. Operating
initial expansion. Capital expenditure required for upgrading
Decisions
existing facilities.
● Large and medium scale farmers, with
Customers special focus on export conglomerates
such as ITC Use of the existing brand name is suitable ( established player
advantage). However, a new marketing campaign to rope in the
Marketing
Already an established player interest of potential customers is advised ( eg. Ground level
● Decisions
● Existing manufacturing and supply chain campaigns and advertisements) eg. Farm seminars/ Local
Capabilities Mandi exhibitions, Free Samples, Word of Mouth Spread
capabilities
● Good financials

● Suitable regulatory environment A competitive launch (price) is required to carve out a


Regulatory ● No price controls present sustainable market share since consolidated competition Growth Plans
Environment ● Regulator working on expanding the already exists. New geographical expansions can follow.
market for the product

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G#3
C#3 Future First
Market Entry | Market Sizing

The client runs a large mutual fund and has recently established an employee benefit fund. You have been hired to find out how big the opportunity is and the
various challenges the client would face.

Can you please throw some light on the size as well as the working of the mutual I shall segment the population of 135 crore into rural and urban with a ratio of 7:3. I
funds industry. shall also assume rural employment sector is not the organised section. So, the
number of people in the urban sector is around 40.5 crore. Since, the working
Definitely. These companies call for investments either from individuals or from
population comprises 60% of the total, with 70% of which employed in the organised
different funds of various firms, like employee benefit. These are reinvested in
sector, for urban. We get the labour force to be 150 million. Assuming a 10%
creation and management of portfolios in lieu of management fees. The investors
unemployment rate, the required population turns out to be 135 million.
benefit from this as well, since the risk in these mutual funds are minimised.
How big is this industry? And do we have other players as well. Alright. Please proceed further.

There are an extremely large number of players in the market and the worth of Shall I take divisions in the INR 5k-20k bracket, or shall I assume an average.
this could be running into trillions.
You may proceed further with the average of the contributions to be INR 12k.
Do we have any idea about the approximate amount of money entering the industry
each year. So, as per my calculations the increase in the assets would be INR 1.62 trillion. This is
In accordance with our analysis, in the previous year, the addition of new assets to quite substantial in comparison to the total worth being INR 5 trillion.
the mutual fund industry was around INR 5 trillion.
Shall we consider that employee benefit fund is primarily meant for the organised Great, this definitely seems like a good opportunity considering the substantial
sector and not for the unorganised one. addition in assets. Kindly proceed further, exploring whether this is profitable as
Yes, the employee benefit fund shall be valid solely for employee of the organised well.
sector.
Since, you mentioned our client charges a management fees, do we have any
I shall now be estimating the number of people working in the sector as they shall be information on the fees charged and the expenses incurred by the client.
paying for the premium amount for this policy. Is it safe to assume that individuals
between the ages 18 and 60 are eligible to be employed. And shall I proceed further The client charges 1% management fee on the assets which are there under
assuming the life expectancy to be 70 years in India.
management. You may take up the administrative expenses to be INR 90 annually,
Yes, you can proceed further with your assumptions. while other operating expenses add up to around 10 bp.

So on every 12k invested, we make 120 in revenues while our expenses shoot up to
100 per customer. The profit is coming out to be 20 for every investment.
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G#3
C#3 Future First
Market Entry | Market Sizing

The client runs a large mutual fund and has recently established an employee benefit fund. You have been hired to find out how big the opportunity is and the
various challenges the client would face.

Would you think this to be a substantial opportunity? Market Entry


Yes, I think of it as a good opportunity. According to our calculations, the total profit
comes out to be around 270 cr which is a very good number. Also the profit margins
for the customers is not very high currently, so if we look at the growth rate and Market
future earnings of the employees then it will be a profitable business. Operations Risk Analysis
Attractiveness
Can you provide some recommendations for improving profits in the long run?
Administrative Government Low Profit
I believe this could turn out to be a profitable business. We can also provide Market Size Regulations Margins
Expenses
additional services in order to increase customer convenience, loyalty and retention.
Apart from that the costs involved in switching could be increased leading to an
increase in customer retention.
Total Population
Can you highlight possible risks that we might face when executing these ideas? (135 cr)

The first risk could arise is from the regulations that the government might introduce
in order to decrease the post-Covid impact on the working population. Secondly, a Rural (70%) Urban (30%)
= 94.5 cr = 40.5 cr
low profit margins for the customers might result in them transitioning over to better
alternatives.
X
Age Segmentation of 18-24 (15%) 25-34 (15%) 35-60 (30%)
Observations Recommendations Working Population = 6 cr = 6 cr = 12 cr

➔ The Employee Benefit Fund is a great ➔ Focus on increasing customer Employable 50% = 3 cr 60% = 3.6 cr 70% = 8.4 cr
idea which will both help the client in convenience and retention Population
increasing their profits and welfare for ➔ Look for a client with lower
their employees. administrative fees Total employable population in India = 15 cr
Required Population = 15 * 0.9 = 13.5 cr
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G#3
C#4 Cancer Cure
Market Entry | Pharma

Your client is an British drug manufacturer who wants to bring their newly approved rectal cancer medication to India. You need to evaluate whether they should
do so or not.

To begin, I would like to understand the client's business and background. Further, I As for administration, specially trained staff is required because of the newness of
would want to know more about the cancer drug since this is breaking news and is the procedure.
a unique product.

The client is a science based healthcare company with 3 business verticals that Makes sense! Given that India is a price sensitive market, customers might prefer
research, develop and manufacture innovative pharmaceutical medicines, vaccines already existing treatments in comparison to a new and expensive product.
and consumer healthcare products. The cancer drug has gotten approval by FDA. Further, the cold chain logistics and trained staff are lacking in India, it seems that
the company should wait and try for markets with more suitable conditions and
Great! Since this is a breakthrough drug, is it safe to assume that there are no
easier drug regulation laws in order to get the new product up and going.
competitors in the market?
Yes, you’re right. We have first movers advantage. Other treatments for cancer do Interesting! Thanks for your valuable inputs. We can wrap up the case now.
exist but none of them promise 100% efficacy unlike our drug.
Market Entry
Fantastic! Does the company already have an established network in India?

We have a well established supply chain and customer base in India for our other
product segments. Regulatory Competitor
Logistics
Expenses Analysis
Nice! After CDSCO license approval, what would be the cost of the drug?

Licensing Drug trial Cold Chain


The cost per dose of drug is roughly 8.5 Lakh Rupees INR in trial stage. The Staff Training
Cost costs Transportation
treatment requires 4 dosage administrations at the gap of 3 weeks each.
Understood! Are there any special logistics/technology required for
storage/transportation of the drug?
The drug is highly temperature sensitive and requires to be maintained at 2-8
degrees celsius at all times.
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C#5
G#3 Love Your Locks
Market Entry

The client, a hair care manufacturer wants to enter the organic products market. Evaluate and suggest ways if they should enter this market or not?

The firm had already made the decision to enter the market or they are still Most of these factors look favourable, what about rules and regulations in India. Are
there any barriers such as taxes, Labour norms, stringent rules for foreign players
evaluating it? And why is client looking to enter organic product market?
etc.?
The Client is yet to decide. They want to expand their portfolio and increase their Fortunately India is an open market with no constraint and favourable tax regimes.
market share in Hair care segment. We will have cost advantage too due to both production and distribution within India.
I would like to know about organic products market? Competitive landscape, Size As per 3C1P approach, all the factors are favourable for the client to enter the
etc. Also is the client looking to expand into any particular geography? Indian market. If the R&D and manufacturing cost are as per industry average, the
client should go ahead. Would you like to explore the execution side of it?
Globally organic hair product market is anticipated to grow at more than 7% CAGR
during the forecast period of 2022-31 and right now competition in the market is less Yes, now that we have decided to enter, let's discuss execution of it.
intense.
Since we are an established player with good brand recall with existing
I will analyse the opportunity on four factors: our product, customers, capabilities, manufacturing and distribution network, we should launch the product under our
and regulations. If we conclude to enter, then i would look at the execution part. own brand name and leverage the existing manufacturing facilities and distribution
network & in future if current production facility is not sufficient in meeting the new
That approach looks good to me demand, we can easily do an brownfield expansion.
Starting with the product? What is the USP of our product? How is our quality and Appears to be good plan.
offerings as compared to other products in the market?
Leveraging our existing rand name in launching marketing campaigns that highlight
Our product is made up of natural ingredients which contains antioxidants that
our product's USP to tier 1 consumers and by keeping the price competitive, take a
contain vitamin E, which provides nourishment to all kind of scalps, including dry
scalps. Also, our products will be available in smaller SKUs, thus more affordable and considerably greater portion of the market, which is right now is at nascent stage
easy to carry. The shelf life of our product is higher than average. and less competitive..

Looking at our product, i believe our product is quite attractive to customers. We can surely keep the price competitive as our R&D cost is not significant and client
coming to customer segments especially in country like India, Customer will be aims to corner the market share as soon as possible.
limited to urban areas?
Would you like me to explore the any other aspects of the case?
Our organic product offering will be a premium product for Indian consumers. So yes,
we will target only tier 1 customers. We can close the case here. Thank you.

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C#5
G#3 Love Your Locks
Market Entry

The client, a hair care manufacturer wants to enter the organic products market. Evaluate and suggest ways if they should enter this market or not?

Why Expand Product Customers Company


● No regulatory constraints ● Product differentiation: ● Target will be tier 1 ● Established player in Hair
as such, since company is made from natural customers. Care sector with good
already well established in ingredients and contains ● Currently, the market for brand recall.
India. vitamin E-rich this product is at a nascent ● Has a well established
● Well known market, easy antioxidants.. stage, but rising consumer distribution network and
tax compliance. ● Products are available in inclination towards hair market Presence.
● Increase market share smaller SKUs and have a grooming products coupled ● One of the leading
through portfolio expansion higher shelf life than with increasing awareness players in the hair care
and growth. Gain a first average. of healthy hair and scalp sector with robust
mover advantage as well. will drive the market in-house R & D
growth. capabilities.

Based on aforementioned inputs we decide to enter the organic products market

Market Entry Operations Strategy Marketing Strategy Growth Plan


Can launch under its Leverage the existing distribution As we are an established player, we can We can launch the product at a
own brand, without network. Only hire additional labour use our existing brand name to market the competitive price and try to corner this
any JV provided we and experts if necessary; in the product. We are also launching an ad market. Furthermore, once we have
have the R&D facilities meantime, make use of the existing
campaign which highlights the key USP of established ourselves, we can move to
to manufacture. manufacturing facility.
our new product. different geographies and segments.

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CASES

PRICING
Framework: Pricing
The objective, in these cases, is to develop a method for pricing any product.
One has to identify the kind of pricing problem in the case, consider the objective of the company, understand the product features and
market environment. Finally, one should conduct market sizing analysis where required and apply a relevant method to price the product.
The crucial part is to justify the pricing recommendation not just with numbers but also with industry awareness.

Cost-Based Pricing Competitive Pricing Value-Based Pricing Revised Pricing

● Considers all activities ● Occurs when a similar ● Identify the customers’ ● Used in rare cases where
involved in the production product exists in the market. willingness to pay. an old product needs to be
process: priced.
• Research & Development ● Requires information about ● Select and focus on the
• Manufacturing Costs the industry structure target customer segment. ● Consider the utility of
• Distribution/Logistics Costs (Consolidated/Concentrated). existing product w.r.t a new
• Service Costs ● Factor in the opportunity product
● Supply/Demand trade-off cost of no product.
● Determine the break-even analysis. ● Factor in the depreciation
point and payback period. ● Supply/Demand trade-off or salvage value need
● If a competitor product is analysis.
● Add the margin on the top of unavailable, price the product ● Estimate the additional
total costs. according to the NPV of a ● Define the upper/maximum revenue considering the
substitute. limit of pricing. supply/demand trade-off.
● Define the lower/minimum
limit of pricing.

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© 180 Degrees Consulting - Delhi Technological University
Framework: Pricing Approach Evaluation Factors

Bidding
PROTIPS Identify the Problem(s) Auction
Straightforward Pricing
1. Many pricing cases are coupled with market size
estimation problems. Ensure to clarify the need to
calculate the market size before pricing the product.
Singular Product or Product Line
2. NEVER give a single price point – Always offer a price Commodity or Differentiated Product
range. Mentioning the price sensitivity metrics in
Understand the Product Luxury or Necessity
calculations would fetch brownie points.
Patent and Technological Expertise
3. Visualise the competitive reaction in the market and Imitability & Substitutability
incorporate it for a comprehensive solution.

4. Formulate your price range as lower than Value Based


Pricing and above Cost Based Pricing calculations due to
New Entrant or Existing Player
customer switching costs, market fluctuations etc.
Understand the Company Growth Objective - Market Share or Top Line
5. Innovative solutions like product bundling and discount Willingness to play Price Wars
schemes will fetch bonus points as well.

Consider policies & regulations


Calculate lower & upper limits of pricing
Structure the Solution
Choose a feasible range
Offer a rational explanation

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© 180 Degrees Consulting - Delhi Technological University
G#3
C#1 Watts Next?
Pricing | Radical Innovation

XYZ Batteries has developed a portable battery backup for EV vehicles. You must determine the appropriate price for a single unit.

Alright, before we figure out the appropriate price for this product, I would like to ask Okay, now I would like to analyze the costs for the product. How much was spent on
a few questions about the company, the product, the competitors and the customers. R&D, and what are the manufacturing costs?

Sure, go ahead. It cost us 100 Cr to develop the technology and factories. Additionally, for every 1000
batteries we produce, it costs us Rs 90,00,000 for raw material acquisition & refining;
What is the objective of the company regarding this product? Rs 10,00,000 for battery packaging; Rs 25,00,000 to pay for workers’ salaries and Rs
25,00,000 for transportation to small & medium sized shops.
To gain as much profit as possible.
Okay. First, let's estimate a lower limit for the price, using cost-based pricing. Since we
Okay, now I’d like to know more about the product. Is this a new product, or has the
have a valid patent for 5 years, it would make sense to at least recover these costs.
company developed something like this in the past?
This is a completely new product. Assume close to 20k wheeler EVs vehicles were sold in India in FY’22. Assuming, this
increases at a modest 50% per year (EV Sales quadrupled from ‘21 to ‘22).
In that case, is the product patented? Does it have any competitors?
This means that the total number of EVs that we can sell to in 3 years is
Yes, we have a patent that is valid for 5 years. We have no competitors.
20,000*(1+1.5+2.25+3.375+5.0625) = 2,63,750 ~ 2,65,000
I would like to know the advantages of the product. Is the product ready for the In India, due to lack of charging ports in India, early-adopters may feel the need to use
market? the EV battery backup. Moreover, since we have considered 4 wheeler EVs only, it is safe
to assume that these people belong to a section of society that can afford an additional
Due to a high power to weight ratio, our batteries are lightweight and hence cost of a backup battery. Hence, we can consider an adoption rate of 20%. Thus, the
suitable for EVs. Conventional batteries take 2 hours to charge, while our batteries total number of battery backups that we need to produce at the very least is 20% of
take 20 minutes to charge and provide an additional 50 km range. They are ready 2,65,000 = 53,000.
for the market. Hence, applying cost based pricing, we get a break-even cost as: (100,00,00,000 +
Does XYZ Batteries have any other products, apart from these batteries? 15,000 * 53,000) / 53,000 = 179,50,00,000/53,000 = 33,867 ~ 34,000
Adjusting a 20% profit on each battery as a margin, we get: 34,000 * 1.2 = 40,800 ~
Yes, we develop batteries for ICE vehicles’ air-con & lighting systems and 40,000
generators. Thus, a cost-based pricing with a 20% profit would be 40,000 rupees.

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Easy © 180 Degrees Consulting - Delhi Technological University
G#3
C#1 Watts Next?
Pricing | Radical Innovation

XYZ Batteries has developed a portable battery backup for EV vehicles. You must determine the appropriate price for a single unit.

Sales,
Fair enough. Factory Distribution &
R&D Production Transport
Set-up Services
The cheapest electric vehicle at this moment is 11 lakh rupees, and people typically
pay close to 50k to 1 lakh rupees for a better version/model of their car. This cost Rs 100 Cr Raw materials Transport to SMEs
further increases when you go for a more expensive vehicle.
Moreover, as was mentioned before, there are a lot of logistics-related issues, such
as lack of charging ports, and early-adopters have a very realistic fear of running
out of charge, so most customers would perceive this as a useful add-on, and would Pricing
be willing to pay at least 50k for the Portable battery backup.
Hence, the battery should be priced between 40k to 50k.
Cost Value
Alright. Any other suggestions?

Yes, since we make batteries for car air conditioners & lighting systems, we can go Vehicle version differentiation
R&D Production Transport
ahead with product-bundling, and provide end-to-end solutions for vehicle drives perceived value
electrification systems.
Additionally, we can go ahead with tie-ups with electric vehicle manufacturers, to
explore the B2B side of the business in addition to the already explored B2C side.
Apart from Electric Vehicles, we can also explore the commercial transport category, Observations Recommendations
such as electric rickshaws, as they lose out on valuable time (and hence revenue), by
developing a smaller, cheaper version of the battery backup. ➔ Cost is broken down into R&D, factory ➔ Product must be priced between Rs 40k
set-up, production & transport. to 50k
That’s all, thank you! ➔ Market is expanding very quickly. ➔ The client should collaborate with EV
➔ Patent validity of 5 years means that manufacturers to explore B2B side.
the player must overcome costs in this ➔ Product bundling can be looked into.
duration itself ➔ Smaller version for commercial EVs can
be developed

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Easy © 180 Degrees Consulting - Delhi Technological University
G#3
C#2 Need For Seed
Pricing | Radical Innovation

The client is in the Agribusiness and wants to enter the Indian market. They have developed a new variety of seeds and want to know how to price it optimally in
the Gujarat Market.

So just to clarify the question - our client runs agribusiness internationally and has I would like to focus on the value chain of the seed which would comprise of
developed a new variety of seed for the Gujarat Market. I have to identify the optimal production, storage & distribution, sales & marketing. Are we manufacturing the
price for the same. seeds in India? One of the major cost would be last mile connectivity issue.

Correct. Please go ahead. Yes, we will manufacture it in India with 10% profit margin.

Can I get some details about the client? Whether it is their first product or do they Assuming loose seeds are available in the market at Rs. 100/kg and the retailer would
have other products in the Indian market? keep a margin of ~ 30%. The cost of production of seeds/kg would be approximately
Rs. 70/kg. With a profit margin of 10%, minimum price of our seeds should be Rs. 80.
The client is based in US and it is their first product in the Indian market. Sounds fair. Our competitors sell it for Rs. 72/kg
Okay. What variety of seeds have they developed and why do they wish to launch it Interesting. To justify our price we have to consider the value based approach. Are
in the Gujarat market first? there any USPs of the seeds we are selling?

The seeds are of Cotton and Groundnut. Since these are cash crops and are We have spent a significant amount on R&D and experiments have shown that our
primarily grown in Gujarat, it is a lucrative market. seeds yield more uniformity, quality growth & increased resistance to insects &
weeds. Our seeds also have a 100% conversion rate.
Understood. so there can be three approaches to price the seeds. One can be a cost
Great! That is something we can work upon. I would like to clarify a few things. Does
based approach to allow us to cover all the basic costs, a competitor based
this experiment would show the same results in the Gujarat fields as well? SInce there
approach and a value based approach based on the USP of our product.
is a variance in climatic conditions & quality of soil.
Sounds good. Go ahead with these 3 approaches.
Assume that our seeds would have a 90% conversion rate in the Indian soil.
Sure! First the cost based approach. Since the project must have involved significant Interesting. Assuming the average conversion rate of cotton and groundnut seeds in
R&D do we have any costs which we need to cover or any timeframe in which cost India is 50%. We are providing our customers 75% more value than our competitors.
has to be recovered? Thus, we can price our seeds between Rs. 80 - Rs. 140/kg. (80x1.75)

That is a fair assumption. For this case focus only on the variable cost. Thankyou. We can close the case now.

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G#3
C#2 Need For Seed
Pricing | Radical Innovation

The client is in the Agribusiness and wants to enter the Indian market. He has developed a new variety of seeds and wants to know how to price it optimally in the
Gujarat Market.

Production Storage & Sales & Customer


R&D Transportation Distribution Service Pricing

Significant Transport to
but not customers Cost Competitor Value
considered (Last mile
here connectivity)

Connectivity Small Major Conversion Crop


R&D
Players Players Rate health

Raw Packaging ,&


Material Transportation Sales
Observations Recommendations
Customer
R&D Manufacturing Distribution Service
➔ Production of the seeds is similar to any ➔ Price the seed bag/kg between Rs. 80 -
standard packaged product 160 to gain profits.
➔ The conversion rate is important in this ➔ The client should collaborate with FPOs
case since they would decide the value of and FFFs to gain brand awareness.
the crop. ➔ The client should invest heavily in
➔ The case could also be extended to the marketing its product targeting the
insecticide resistance (value based major USPs to enhance brand image.
pricing) if the interviewer would have
asked

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G#3
C#3 Hyped-er Loop
Pricing | Hard

Your client is a new age tech company which has developed a Boosted Shuttle Service. Boosted shuttles are hyperloop technology in which aerodynamic pods
travel through specialized tunnels with a max speed of 500 kmph. Determine what price they should charge per ticket in the Indian market..

Thank you, I would like to begin by asking some clarifying questions first That's great, so how many people can the vehicle carry at one time and how many
times a day are we planning to run the pod? What is the distance between Chennai
Sure go ahead ! and Bengaluru ?

The pod can carry 48 passengers at a time and the service will be operational for
I would like to know more about the company and its product. Which geography is
12 hours a day to start with. The time between two pods leaving either station is
the client targeting?
going to be 6 minutes.

It is an Indian startup which is looking to revolutionize transport by bringing in


speed and sustainability. They plan to launch the first phase between Chennai and Alright the distance between Chennai and Bengaluru is approximately 400 kms,
Bengaluru. taking the average speed our pod to be 400 kmph the time taken for an entire round
trip will be around 2 hrs. This means we need at least 20 vehicles to maintain
That's interesting, what timeframe is our client expecting to break even or turn operational efficiency.
profitable ? Are there any other objectives I should be aware of ?
That is correct
They expect to turn profitable in 4 years.

Okay so based on all the information, we can look at the cost based pricing first. I will
Thank you sir, do we have any information regarding any existing competition and
then compare it with our competitors prices. Since this is a novel and luxurious
customer segments the client is planning to target ?
technology I will account for value added as well. Does this seem like a suitable
Our competitors are the existing transport services - airlines, trains and cabs. The approach ?
target customers are passengers only and no freight transport.
Sounds good, what all costs do you think are involved here ?
Alright, do we have a patent on this technology ?
Alright, I think the costs would be of R&D, Manufacturing costs of the Pod and Tube,
Fixed costs like salaries of Employees, Land acquisition costs and SG&A costs. The
Yes we have a patent which should safeguard us for around 5 years.
recurring costs would be the cost of Electricity and Maintenance/Repair.
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G#3
C#3 Hyped-er Loop
Pricing | Hard

Your client is a new age tech company which has developed a Boosted Shuttle Service. Boosted shuttles are hyperloop technology in which aerodynamic pods
travel through specialized tunnels with a max speed of 500 kmph. Determine what price they should charge per ticket in the Indian market..

Correct, so we have some data regarding this. The R&D costs are Rs 700 Cr. The
That's interesting, what timeframe is our client expecting to break even or turn
cost of Tubes is 250 Cr and cost of each pod is 10 Cr, the land has been provided at
profitable ? Are there any other objectives I should be aware of ?
a subsidized rate by the government and can be ignored. The electricity
consumption is around 500 MWh/day and the monthly maintenance costs are Rs 5
To break even we need to price the ticket at a starting price of Rs 1,380. However
lakh. Consider cost of electricity to be Rs 6 per Kwh given that the boosted shuttles are offering faster and safer method of travel we can
price it 20% higher than the break even. So the new price would be Rs 1700

That is correct
Costs Involved Amount in Cr (Rupees) For 4 years (Cr)

Pricing
Research and Development 600 600

Specialized Tubes 250 250

Cost Target Profitability


Pods (20) 10x20=200 200 Audience

Electricity Costs 500 MWh/day x 6 x 10^6 876 Administration


R&D Customer Break even
Expenses Competition
Segment Timeline
Maintenance Costs 5 x 10^5/month 2.4
Maintenance
Manufacturing
Costs Patents
Total Costs 928 Cr
Real Estate Cost of
No of Travellers (80% occupancy) 48x120x365x0.80 = 16.81 L 67.27 Lakh Novelty

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G#3
C#4 Angry Birdies
Pricing | Break Even

The client is a company in real estate development. They are planning to set up a golf course in the South Campus area of New Delhi. They would like your help in
deciding the monthly subscription rate in order to break even in 5 years after setting up the golf course.

The client is a company in construction. They are planning to set up a golf course The company is looking to know how long would it take for them to break even..
in the South Campus area of New Delhi. They would like your help in deciding the
monthly subscription rate. Got it. I would like to divide my approach into:
1. Cost based approach - Here, we estimate the cost of running the golf course
So just to clarify the question - our client is a company in sports which is planning to
and calculate how much the subscription should be in order to break even. This
set up a golf course. I have to help them decide the monthly subscription rate,
will give us the minimum level at which we can set our monthly subscription.
correct?
2. Value based approach - Under this, we will look at the value we are adding to
our customer’s life. We will estimate how much customers will be willing to shell
Correct. Please go ahead.
out for the service. This will give us the maximum level, at which we can set our
Before making a framework, I would want to know is this the first golf course the monthly subscription.
company is setting up or do they own any elsewhere too? 3. Demand-supply approach - If we have data available as to the demand and
supply at different price points, this approach will be useful.
This is their first golf course. They plan on targeting the retired individuals or posh We cannot take into consideration, competition-based approach, since we do not
business gentry of the South campus of New Delhi. have any competitors in the proposed area.
We do not have information on the demand and supply at different price points. You
Okay, I would like to know a little more about the golf course now. How big is it going
can proceed with the remaining 2. Why don’t you take up the cost based approach/
to be? What are the services it will offer? How many times a week will it be open?
What information will you need?
The golf course is going to be the most posh and at the same time, the most
Sure. We need to know the cost which cost will be incurring in setting up the golf
relaxing place where people would come to rejuvenate and enjoy the beauty of
course and running it. The various costs will include equipment cost, financing costs,
nature as well. It will be an 18-hole golf course with personal and group training
monthly rent, training and other staffing costs, electricity and water etc. Also, what
options for beginners. There will also be a cafe where golfers and spectators will
will be the cost of setting the golf course up from scratch and the average cost of
be served beverages, meals and snacks. The golf course will be open from 6AM to
maintenance?
6PM for 6 days a week excluding Monday.
Sounds good. Lastly, what is our objective when it comes to deciding our monthly Okay, you can note down the following information.
subscription? Is it to make profits? Capture market share or break even?

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Hard © 180 Degrees Consulting - Delhi Technological University
G#3
C#4 Angry Birdies
Pricing | Break Even

The client is a company in sports. They are planning to set up a golf course in the South Campus area of New Delhi. They would like your help in deciding the
monthly subscription rate in order to break even in 5 years after setting up the golf course.

Item/Point of expense Absolute cost Monthly cost Type of cost Excellent. Now, we calculate the amount of monthly subscription per individual for
our client to break even in 5 years.
Setting up the golf course 39,60,00,000 1,10,00,000 One-time
Great!
Maintenance 2,00,00,000 16,66,666 Recurring
In order for our client to break even in 5 years, we need to divide the costs into
Equipment (Golf Carts, 4,00,000+1,20,000+ recurring or one-time costs. The total amount spent by the client by the end of 3
43,416 One-time
Clubs, Flags) 10,000 = 5,21,000 years of construction and setting up of the golf course adds up to 39.852 crores.
The monthly recurring costs after that period adds up to 16.83 lakhs. The cost
Canteen Inventory and which the client has to recover per month for 5 years, taking into consideration
15,00,000 1,25,000 One-time
Construction the recurring and one-time costs is 83.43 lakhs. Since there are 500 individuals
interested for a monthly membership of the golf course, the client must levy a
Trainers and Caddies 2,00,000 16,666 Recurring monthly membership fee of approximately Rs. 16.7K (Monthly cost/Number of
individuals)
Washing Facilities /
5,00,000 41,666 One-time
Changing rooms
This makes perfect sense. We seemed to have covered our cost required. Thank you
so much for your help.
After some calculations, I have arrived at the following table which gives us the
monthly cost we will be incurring. Approximately, how many individuals are
interested in taking up the membership for the golf course?
The monthly membership fee = Rs. 16,686
We conducted a survey. The results indicated that we can get around 500 individuals
to take up the membership.

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CASES

GROWTH & STRATEGY


103

Framework: Growth Strategy


Growth Strategy
In this subset of Profitability Cases, the company aims for XX% YoY
growth in Z years, and you are expected to brainstorm ideas that
align with the growth target and then validate them by identifying
pillars to support it.
Explore the Existing Explore a New
A company can grow either in its existing business (provided there is Business Business
scope), or explore new business opportunities.

Protips
Extend Product
Always clarify the objective(s), especially growth % and
Increase Increase Price Line
time period.
There is a significant creativity component attached to Volume Or Reduce Cost
the brainstorming, so keep options open while checking
New Geography
operational feasibility.
Increase
Key Questions Customers
New Market
● Expected growth of the industry?
Segment
Are we targeting growth more/less/at par with that?
Increase Purchase
● Existing capacity in the plants/services to meet the Frequency Merger or
increased volume or investments required? Acquisition

● Price elasticity in the market? Increase Product


Size/Quantity Diversify
● Effect of substitutes and complements? Portfolio

Page 92
© 180 Degrees Consulting - Delhi Technological University
G#3
C#1 Beerly Buzzed
Growth | GTM Strategy

The client is an Alcohol manufacture


manufacturer.who
It has
after
recently
R&D have
developed
recently
a fruit
developed
beer line.
a fruit
Helpbeer
themline.
take
Assist
the them
product
take
to the
the product
market .to the market .

Could i know more about the client? Since when are they operating and what area do Sure, there are 3 ways to price a product - competitive benchmarking, value based
they serve, their key products and the competition they are expected to face pricing and cost driven price. Since there are no constraints of margins on cost,
and it being a unique new product with no competition ; value based pricing will be
The client has been operating in India since 25 years. It is most known for its the better suitable method.
whiskey and rum offering to popular brands. The fruit beer is ready for launch and
it will be the only product in the market with no competition. Sure, please move forward with that.
Alright so for an FMCG beverage, Are their any key objectives or constraints that i
should be aware of? Also how is the client proceed; setting up a Direct to consumer So i am aware that a standard corona beer costs rupees 150 for 250 ml.
channel or selling it to an existing brand’s product line And the closest substitute our product with students will be a fruit punch which costs
around rupees 80 for 250 ml, but our product having an aspirational value above the
standard punch, so a 12% roundup ie 90 rupees can be set as the lower price limit
The client wants to sell directly as a new brand. There are no constraints as such. Since our product is non-alcoholic, i'll assume a 20% cut to the price of beer. Thus, 120
can be considered as the upper limit to the fruit beer. My final recommendation
So our key challenge would be to move from B2B networks to D2C. I wish to would be RS 90 -120 for retail. However while selling directly in pubs we can offer a
understand our product a little better, can you tell me about the composition, taste, higher premium ab
USP and SKUs
Great, that price range seems reasonable. What else do we need to think of?
The Fruit beer is a non alcoholic beverage with a beer-like punch. It is packaged in
a 250 ml glass bottle, Currently we can offer 4 flavours - apple, mojito, cranberry
and pineapple. It has the shelf life of 24 months. It also contains caffeine. Before entering the market, some macro factors we need to look at are the
regulatory fssai approval for beverages and there may be some non compete
So our product is a fast moving beverage as a standalone offering to people and contracts with our existing clientele of selling into some channels
also as a substitute of beer (alcoholic). So, we can target teetotallers in bars and
pubs, offering easier accessibility of our product to students and placing our product The contracts and licensing has been taken care of before hand .
aggressively in retail stores. Our idea customers would be in tier 1 cities willing to buy
savory fruit drinks
The next bracket to look at is awareness and promotion, we can onboard social
That's a fair hypothesis. The client needs a price range for this product. Please media influencers and strategically sponsoring events and parties so as to market
proceed with that. our product while also leveraging our legacy of manufacturing

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Easy © 180 Degrees Consulting - Delhi Technological University
G#3
C#1 Beerly Buzzed
Growth | GTM Strategy

The client is an Alcohol manufacture who after R&D have recently developed a fruit beer line. Assist them take the product to the market .

That seems reasonable as we need to setup awareness around our Go-to-market


brand. What else?
Further, we can look into distribution channels. As i previously
mentioned, retail stores and supermarkets will be ideal for people
Regulatory and Sales and
to easily access it as a fast moving beverage. College/office Customers Marketing
other risks distribution
canteens can be a great way forward to get popular attention to
our product as they have a faster selling cycle. Retail stores and
Customer FSSAI
pubs will have different selling cycles so our supply frequency must Pricing Placement D2C Channels
profiles approval
factor that in.
Once we successfully pilot the market, our key focus shall be on
Target
customer engagement and optimising retention Product Promotion Non-competes Supply cycles
audience
Alright, these ideas are good to go forward and we can close the
case here. Selling rate
Thankyou!

Observations Recommendations

➔ The non-alcoholic fruit beer addresses a ➔ Product placement in pubs & parties with
major chunk of market appealing to all ages strong presence in retail segment will make the
and can be priced by setting 250 ml beer and product accessible to target audience
fruit punch as upper and lower benchmarks ➔ Existing distribution channels can be
➔ Key focus to setup D2C channel and Capture leveraged to do so
market to make use of first mover ➔ Price range; 90-120/bottle
advantage ➔ A thematic marketing campaign around brand
awareness

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G#3
C#2 May The Fork Be With You
Growth | Operational Obsolescence

There’s a restaurant in your locality whose business is facing a threat from a new restaurant chain with more attractive and diverse offerings. How can
you help this business survive and grow?

I'll start by asking some background questions. What are the client restaurant's main Naturally, the shrinking market and operational obsolescence are the main causes of
specialties and how long has it been operating in the area? What are the main menu the decline in sales and the drop in the number of new customers. Since work and
items offered by the restaurants and the average price per meal for two people? school schedules have resumed following the pandemic, it is safe to expect that
weekdays will see relatively little demand for dine-in or takeaway services. Should I
The average cost of a meal for two at the client restaurant, which primarily go into more detail about how to approach it?
serves Indian food, is ₹700. They have been in business in that area for more than
5 years. The new restaurant, which has a bakery and serves both fast food and Yes, proceed and explain what the client may do immediately to resolve this issue.
Indian cuisine, serves at ₹900.
So, there are three segments of potential customers the client has to target, based
Okay, so I can infer from this that both restaurants mostly serve the middle-class on their tendency to eat out.
segment. Do they also offer deliveries? The ideal course of action for the first segment would be to focus on home deliveries
and collaborate with platforms like Zomato and Swiggy. The restaurant must use its
The client now offers takeout but has a very weak internet presence, and dine-in is
brand reputation and loyal customer base to gain a foothold in the competitive
the major source of revenue. In contrast, the new business provides robust meal
mid-price range market. It must also offer discounts and coupons to boost its
delivery services both online and over the phone.
ranking in these platforms' listing algorithms along with positive online reviews. It
Noted. Is there a specific issue that needs to be addressed in this aspect and how might start out as a losing endeavour, but it will eventually produce yields.
long has it been that the client is facing that issue?

Although the client is able to retain some of the long-term customers, there has Number of Customers
been no rise in the number of new customers, which has stunted revenue increase,
especially since the new restaurant has been established.
Existing Channels New Channels
The demand-supply restrictions can be examined. Is the client able to service every
customer during peak times, or do they have to turn some away owing to
Dine-in Dine-in
overcrowding or a shortage of necessary supplies?
Deliveries
The client has all the necessary supplies. Although there is a large client turnout on
weekends and holidays, there is not enough room due to the overwhelming
Packages meals
reservations.

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Easy © 180 Degrees Consulting - Delhi Technological University
G#3
C#2 May The Fork Be With You
Growth | Operational Obsolescence

There’s a restaurant in your locality whose business is facing a threat from a new restaurant chain with more attractive and diverse offerings. How can
you help this business survive and grow?

For the second segment, they would need to introduce packaged ready meals for
Customer those who can not dine-in but are willing to pick up their meal on the way to their
Segmentation workplaces or accommodations.
For the third segment, the client should add a provision to "order ahead" while
reserving a table to ensure a high table turnover rate during the busiest hours. Offer
Take both deliveries and Willing to dine-in
a "happy hours" promotion to draw consumers during non-traditional meal hours,
Take only deliveries which typically last from 2 pm to 7 pm.
takeaways occasionally

Good suggestions. Do you want to add more recommendations?


Elderly, students and People who prefer
working professionals, Some privileged 1. Adopt subtle upselling techniques like menu specials, especially during
tiffin-like services or
who avoid outdoors working populace who holidays and happy hours promotions.
officer workers who
completely due to time can afford private 2. Pay attention to the dishes that can be ordered in large quantities for parties
eat at odd eating
crunch vehicles and business reunions at competitive prices. These sales will help the product
hours
become known and make additional sales.

Course of Action
Sounds good. We may close the case here.

Observations Recommendations
Home deliveries Home deliveries ‘Order Ahead’
facility
➔ Prevailing operational obsolescence has ➔ Overhaul the operation process.
Discounts Tiffin services been detrimental to the client ➔ Robustly revamp the online presence.
High table turnover
rate ➔ Positioning of items within the menu ➔ Reward regular customers through
Online presence Online Presence card can bring positive changes customer loyalty incentives.
‘Happy Hours’ ➔ Loyal customer base can be leveraged ➔ Increase footfall at non-traditional
Promotion to experiment new services eating hours.

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Easy © 180 Degrees Consulting - Delhi Technological University
G#3
C#3 Ride The Bangalore Wave
Growth | Expansion

Your client is Bangalore Metro. They have hired you to suggest the best ways to utilise and monetise the 10 acres of land at one of their station on a
recently added route.

Thank you, I would like to begin by asking a few questions to get to know the case
Please go ahead.
statement in detail.

Sure, please go ahead. The various options can be bucketed under four categories- 1. Using for current
business such as client's office building, employee quarters, training centre etc. 2.
Commercial buildings such as metro malls for shopping/movie/entertainment,
What is the client's objective? Is there a target and timeline that client has in mind? gaming zones, parking facility etc. 3- Residential complex. 4- Lease out or sell the
Does the client have any other land holding? How has the client developed/used it? land. Is there any specific option to proceed with?

The client only wants to maximise returns from the land. There is no target Assume that there is no requirement for any office related expansion. List what all
/timeline. You can assume this is the first time client has acquired an additional factors are to be considered for the two options of mall and residential complex
landholding.
I would look at Financial and Operational factors. Financial factors such as budget
outlay for both options, expected return based, payback period and synergy
Okay. Could you describe the area where the land is located? It is it a commercial benefits. In case of Mall, the daily crowd inflow to malls can provide revenue to
area or residential? What is the typical traffic or footfall in the area? metro line. Operational factors such as license to operate, project duration,
competition, promotion of venture etc are to be considered. Further, in case of
It is a developing area in the city with some level of commercialisation and residential complex additional factors such as nature of residence
residential buildings. The land is located immediately next to metro station and is (luxury/economical), can be taken into account. In case of Mall, the kind of outlets to
on route to highly commercial areas of the city. include, growth prospects of footfall in the area, model of operation etc. are to be
considered.
I would like to know what are the commercial buildings already in the nearby region.
Alright. Can you list different revenue sources for a mall?
There are a few restaurants and multiple retail shops.
Revenue can be divided into core and non-core. Core sources shall include Rentals
Okay. I would structure the problem by first coming up with various options for from outlets in mall, Charges for facilities such as parking. Non core revenues such as
monetizing the landholding, evaluate the financial and operational feasibility of each advertisements and revenue from any events held at malls
option and finally evaluate any risks. Shall I proceed with this structure?
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G#3
C#3 Ride The Bangalore Wave
Growth | Expansion

Your client is Bangalore Metro. They have hired you to suggest the best ways to utilise and monetise the 10 acres of land at one of their station on a
recently added route.

Landholding commercialisation

Options Financial Feasibility Operational Feasibility Mode of entry

Office expansion, quarters, Budget Setup time Joint Venture


training center

Buyback Period License Ownership


Commercial building-Mall,
parking facility
Returns and synergy Construction Build-Operate-Transfer
benefits
Residential complex
Others
Lease out

It has been evaluated that Mall is a better option. The client has limited capital to Observations Recommendations
invest. Can you suggest different ways to set up & operate the mall?
➔ Included residential houses and ➔ Explore each option
The client can invest in setting up the mail entirely on its own. This may not be feasible commercialisation under semi comprehensively
considering financial constraints. Other options to consider would be through Joint developed areas ➔ Take buy in from interviewer on
Venture with a mall chain such as GVK or models such as Build-Operate - Transfer. ➔ Observation of restaurants and which option to consider for
retail shops nearby further evaluation

Alright. That was good. We can close the case here.

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G#3
C#4 Stream Team
Growth | Expansion

Your client is a multi-language OTT content seller that specializes in children’s content. However, it is a new platform that is aiming to increase its audience
engagement and market size by 30% by the end of this year.

I would like to begin by asking a few questions to get to know the case statement in Thank you. There are three possible ways to tackle this:
detail. 1. By increasing customer base
2. By better monetizing the existing platform.
Sure, please go ahead. 3. By diversifying the platform.
I shall now be exploring each of these possible ways one by one.
I’d like to understand the client’s business a little more. Is there any existing competition
in the industry? Sure, please go ahead.
It is a one-of-a-kind OTT platform since there are currently no direct market Since the target base is 2-7 year olds, who do not make purchases themselves, one
competitors in business niche of children content. Indirect competition exists in has to target young parents to increase the customer base. This may involve tie-ing
the form websites, television cartoon channels, social media up with popular YouTubers in the parenting space, having endorsements from
child-development experts etc. A lot of streaming applications are also pre-installed
I’d like to understand the reasons why the market size has not increased, what are the on mobile devices/smart-TVs and the OTT platform can partner with electronics
problems that you are facing? companies to bring the platform directly to the target audience.

We are currently experiencing high customer churn rate along with an Great suggestions, please continue.
unsatisfactory penetration rate in terms of the target audience.
To better monetize the platform, we can introduce 2 pricing models- a regular
low-priced subscription-based model that comes with advertisements and a ‘premium’
Okay! I’d like to break the problem into 4 key segments of the OTT platform:
model that comes add-free with other features such as parental controls. Another way
1. What are the marketing channels for the content?
to monetize the platform would be to tie-up with toy-brands such as Fisher-Price to
2. What are the subscription plans available for the platform?
release a product-line based on the TV shows showcased on the platform.
3. What is the target audience for the content?
The platform can better diversified by including TV shows for entertainment,
4. What is the type of content- is it educational, entertainment, interactive?
educational games etc. Since a majority of the population also streams on
mobile-phones some investment can be made into better-streamlining the mobile
We show advertisements online on parenting websites and YouTube. There is only
application.
one subscription plan of Rs 300 per month. The content is primarily educational and
is meant for 2-7 year olds. Alright. Thank you for your suggestions. We can close the case here.

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Medium © 180 Degrees Consulting - Delhi Technological University
CASES

PRIVATE EQUITY
Framework: Mergers & Acquisition
The ultimate objective of a target and market
assessment is to determine the value of the target.
Market
In order to understand value, we need to understand
Value
the three primary value components..
($M)

Value Components

Will volumes/prices Revenue


increase or decrease?
Baseline Value Standalone Upside Synergies

Value of existing Value of possible Value of benefits


Cost Future
Will costs rise faster or earning stream with: improvements from: from relationships
slower than sales? Margins Cash Flow
Definition between target
-No Growth -Market Growth company and
-No Changes in -Share Gain acquirer.
What investments in plant margins -Margin Improvement
and working capital are Investment
required going forward? Requirement
Issues How secure is the What upsides exist for What added value
Value business? the standalone does the acquisition
business? bring?

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Framework: Mergers & Acquisition Value Drivers

The value components can be further Market Size


broken up into specific “Value Drivers”. Revenues Market Share
Sales Mix
Risk Analysis
Retail Prices
Cash Operating Wage Rates
• Cultural Fit Profit Margin Staffing Levels
Cultures of the merging
entities should be coherent
and complementary.
Taxes Effective Tax Structure
• Strategic Fit Cash Flow
The long-term strategies Business
from
should be in sync for both Unit Value Operations
Debtors
entities. Working
Creditors
Investment Capital
Contract Terms
• Organizational Fit Required to
Degree of similarity in org Support
Operation Plant Life
structures. Matrix, functional, Capital
Expenditure
Maintenance
divisional etc. Scale of Operations
Management overlap and
talent
Discount
Cost of Equity
Cost of
Rate
Cost of Debt
Capital
Gearing

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© 180 Degrees Consulting - Delhi Technological University
Framework: Private Equity Investment
These cases discuss investment into a business for financial gain .Whenever asked to evaluate an investment it is essential
to understand the objective first.
● Why? – Objective of investment: direct return from investment, incentives in the current business, synergies, etc.
● What? – What is the target rate of return from investment
● When? – Timeline of investment
Once the expectation setting is done, the rationale to make an investment can be evaluated by these factors:
Only if the industry is attractive, target has high potential and expected return from the investment (from all sources)
exceeds target ROI, investment is justified.

PE Firm Characteristics Industry Attractiveness Target Specifics Sources of Returns

Fund Size Market Size/Growth Business Model Operational Efficiency

Fund Style Profitability Valuation Unlock Potential


Portfolio Barriers to Entry Management Capability Use Leverage
IRR Competition Product Services

Exit Period Customers Willingness to Sell

Costs & Risks Market Share & Growth

Suppliers Suppliers

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G#3
C#1 Steel The Deal
M&A | Private Equity

A steel manufacturer is planning to carve out 10 factories. Determine the attractiveness of the proposition and provide a recommendation on whether a PE firm
should consider acquiring these assets.

A steel manufacturer is planning to carve out 10 factories. Determine the Do we know why the manufacturer carved out 10 of it’s factories?
attractiveness of the proposition and provide a recommendation on whether
a PE firm should consider acquiring these assets. Yes, the manufacturer had to pay huge cost of borrowed capital and our suppliers
also have been charging significant portions of profits
So just to clarify the question - our client is a private equity firm looking to invest into What are the factors that might change industry factors in the long term?
a steel manufacturer who is looking to divest 10 of it’s manufacturing plants, am i
right ? Though the government has lowered corporate taxes but it has increased the export
duty to 30% thus hampering our overseas operations
Correct. Please go ahead.
Got it. What are the other factors that determine profitability of this industry?
Can you give me a brief background of the firm and its objective for evaluating this
acquisition ?
Demand here plays a significant role. What according to you are the risks associated
The firm has a background in investing majorly in profitable sectors and
in this industry ?
businesses and wants to maximize the profits via this investment in short term
Okay, can you give a brief background about the manufacturer and their Well the risks are like prices of commodities keep on fluctuating according to
operations? demand , industry is very conventional ie. any changes required takes in time to be
So our manufacturer is based out of India and majorly works in manufacturing implemented , most importantly steel industry is very energy-intensive thus leading
and processing steel from iron ores with downstream operations too to higher carbon footprint impacting the immediate environment..
Also complex value chains ie. varied client base, changing quality requirements and
Got it. What’s the current industry scenario and manufacturer’s market share ? services further complicated the distribution channels
The current industry demand keeps on rising, the competitors have been thriving
well and client’s market share has been stable throughout Makes sense. So what are your final recommendations about the acquisition?

Okay, can you tell me about the profitability scenario in this sector? The client is already dealing with cost inefficiencies, further on they are struggling
with satisfying all their stakeholders and the steel industry though having scope of
The upstream activities require sourcing of raw materials and technological
digital expansion doesn’t seem to align with our objective of gaining profits in short
innovation to reduce power and fuel cost
term.
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CASES

PRODUCT BASED
G#3
C#1 Don’t Bug Me
Product | Customer Decline

The client, Amazon is an AI, cloud based E-Commerce platform with its presence around the globe. They are facing a decline of 15% in cart additions over
the past 1 month. You are asked to diagnose the problem.

Thank you, I would like to begin by asking a few questions to get to know the case Coming to macro-economic front, has there been any recent news which might
statement in detail. cause change in user behaviour or any kind of seasonal impact?

Sure, please go ahead. No, there seems nothing of such to be the cause.

Moving to internal factors has the company launched any recent posts/ ads which
What do you mean by cart addition? Our client has a web version as well as might have shifted users away from the app? Or has there been any major updates
android/ios app version do we have to take both into account? in the UI of the app?

Cart addition is when a user clicks on an item and it appears in their shopping cart. No nothing related to advertisements, but yes there has been changes in the UI of
the application.
Just consider the android mobile app.
Can you elaborate more on the changes made to the user interface?
Okay. I would like to consider four major factors: competitors. demographics. The checkout and payment gateway has become more seamless. You can direct
macroeconomic factors, and internal changes. After that I'd like to map the user jump to payment if you are aware of what you have added to the card without
journey on the amazon app to Identify bugs/glitch, if any. verifying. This has been done to save user’s time.

Is there any entry of a new market competitor or any major sale being carried our Alright! Any bugs or complaints related to the new step added?
by our competitors?
Yes there are minute bugs, sometimes the application take a little more time to reach
the payment gateway due to direct jump of one step.
No. Nothing we know about.
Okay! So I think there can be 2 problems to this. Firstly the glitch which needs to be
Now considering demographics, is there any age wise or gender wise or any other taken care of by the tech team as soon as possible. Secondly in some cases people
demographic delcine? are not sure whether they want to buy the product of not, they just added so that
No, there’s a uniform demographic wise decline. There has not been any location or they can review later or in some cases a customer might be confused between 2
gender based decline or any other segment wise decline. products or brands of the same product so they add both so that they can review it
later.

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Easy © 180 Degrees Consulting - Delhi Technological University
G#3
C#1 Don’t Bug Me
Product | Customer Decline

Mapping journey of a customer on an e-commerce platform.

Customer Journey Approach

Home Page After Sales

Returns and
Aesthetics Ease of Use Features Installation Repairs
Replacement

Results Delivery

Features Placements Products Time Quality Reach

Search Payment

Suggestions History Credit Non-Credit


Product Page

Suggestions Reviews Price Product

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G#3
C#2 Paint The World
Product | New Feature

You have been hired to improve the user engagement of MS Paint by introducing new features or improving existing features.

Just to reiterate - I have to introduce new features or upgrade existing features of MS


Paint to boost its user engagement. That’s right. Continue with designers.

Correct. Please go ahead. For designers, lack of advanced image processing features and wireframing
capabilities along with support for online sharing are pain points.
Before I begin, I would like to know more about MS Paint and its existing features for
Okay, now that you have identified the needs of every user segment, you can start
a better understanding of the product.
with the recommendations now.

Okay, sure. MS Paint gives users the ability to draw simple shapes from scratch Sure. I will list out some solutions to solve the aforementioned issues and boost the
and it can also function as a simple image manipulation tool. It offers basic overall user engagement.
functionalities for drawing and image processing. 1. Wireframe Templates - Since MS Paint has limited capabilities for wireframing, we
could look at introducing pre-built templates and components that can be reused
Thanks for the information.I will start with user segmentation - Primary school by designers to create their own wireframes.
students, quick sketchers and absolute beginners in design. Am I missing anything? 2. Adding a feature for multiple layers - MS Paint has no support for multiple layers
currently, all images have one layer only. The artist creates the graphic image
from scratch in multiple layers, so that they can recover the original work by
No, that is all. Go ahead.
simply switching back to the bottom layer.
3. Support for online collaboration - Introducing a feature for online collaboration
Now, I will move on to the identification of customer needs of these segments. would eliminate the difficulty associated with sharing their work with other people
Primary school students have MS Paint as a part of their curriculum and they also and allow for real-time collaboration.
use it for recreational purposes. Quick sketchers use it to create rough drafts on the
go. Finally, absolute beginners in graphic design also use it as a learning tool due to Can you elaborate more on this?
lack of accessibility of advanced products.
To decide on which feature to prioritize for development, I will now compare them
Okay. I want you to focus on quick sketchers and design beginners. against two attributes:
● How important is the user’s pain point the feature solves,
● How much effort will it take to build,
One of the pain points for quick sketchers is that due to unavailability of a feature for
● How risky it is to build the feature
online sharing, they have difficulty in sharing their work with other people.
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G#3
C#2 Paint The World
Product | New Feature

You have been hired to improve the user engagement of MS Paint by introducing new features or improving existing features.

To numerically prioritize the features, I will use a scoring system, from 1 to 5, to rate a
feature across 3 attributes. I will add the positive attributes and subtract the negative User Segment
ones. The positive attribute is: “importance of pain point” and the negative attributes
are: “effort” and “risk” to build the feature.
Primary school Quick Absolute
That sounds good, can you elaborate about the attributes you’ve chosen? students skechers beginners

Sure, so the “Support for online collaboration” feature addresses a key pain point
towards achieving the goal of helping users collaborate in real time and share their
work online easily. For Effort, I think the “Adding a feature for multiple layers” feature Recreational Rough Learning
Curriculum tool
takes more effort than the other features. For risk, I think the “Wireframe Templates” Activities drafts
feature is the riskiest to develop because people might choose different software
which has even more advanced features for this.
Unavailability of Lacks advanced
That sounds pretty elaborated. Thank you. a feature for image processing and
online sharing online sharing feature

Importance of
Effort Risk
Feature Pain Point Total
(-)(25%) (-)(25%)
(+)(50%)
Observations Recommendations
Wireframe Templates 3 3 5 -0.5
➔ Importance of understanding the user ➔ Introducing pre-built wireframe
Adding a feature for
4 5 4 -0.25 segment in a structured manner templates and components
multiple layers ➔ Identifying the needs of consumers ➔ Adding a feature for multiple layers
and product pain points ➔ Introducing a feature for online
Support for online collaboration
5 4 3 0.75
collaboration

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INDUSTRY REPORTS
R#1
G#3 Edtech

Quick Facts Value Chain Current Trends


● India has the second-highest number of R&D ● Market shift to popular brand value from earlier
edtech companies commoditized market
Structure , Curriculum and testing
● Increasing CAC and severe competition brought down
● Market segments;: K-12, test
margins. Supernormal funding during covid boom is failing
preparation, online certification, skill
to sustain
development, and enterprise solution Business development and
● The K-12 segment led the market in 2021, Marketing
accounting for over 40% share of the Sales, partnerships and promotions ●Future Outlook
global revenue ● Firms are trying to improve on student-teacher connection
● India’s edtech sector is poised to grow and overall learning experience by hybrid methods and
Post-Sale service collaboration techniques
to $225 billion by FY25.
Technical support, Discussion forums, ● Market maturity and skewing of learner base to top key
● The market leader Byju’s with market
Course updates and upselling players is likely until infrastructural disruption
share of 45% is India’s most valued
private firm at $23bn as of July’22
Cost Drivers
Business Models Primary : R&D, Technical IP & Content costs
Secondary ; Sales, CAC and Marketing
Coursera ( Freemium & Subscription )
● Content is available for free and users pay a KPIs
monthly fee to get certifications. Key focus is Revenue Drivers
on course catalogue and accessibility ● DAU’s and RPU’s (Conversion)
Udemy (Marketplace) ● Net promoter score
● Users can access and contribute to the ● Subscription fee and value added services to learners .
● Lifetime Value (LTV) = avg customer
learning catalogue. Key focus is UX ● Advertising and marketplace promotions.
Schoolzilla (Institutional) sale value x avg customer lifespan
● Learning kits and merchandise to K12
● Dashboarding, MOOC and ERP solutions to ● Engaged time per user ● Institutional partnerships
existing educational institutions. Key focus is ● User satisfaction on learning objectives
on scalability

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R#2
G#3 Aviation

Quick Facts Value Chain Current Trends

Inbound Logistics ● Covid recovery in air passenger volume


● India is the 3rd largest market in terms ● The government plans to privatise 25 airports between 2022
of aircraft passengers Aircraft lease, aviation fuel, route
to 2025 under the National Monetization Pipeline
selection, planning of facilities
● 487 Airports and airstrips in India of ● Modernisation of non-metro projects by AAI.
which 137 are controlled by AAI. Operations
● Industry Size: $72 Billion
●Future Outlook
Tickets, gate counters, luggage
● Jobs Produced: 87.7 Million (Direct & handling
● Air connectivity boost in Tier-2,3 cities under UDAN & AERA
Indirect) scheme (Target development of 100 airports by 2024)
Outbound Logistics
● Passenger traffic in FY 2022: 188.89 ● Boosting air connectivity to smaller cities and northeastern
Baggage, Crago and Flight connection,
Million a 58.5% YoY increase, as states - new airport projects.
hotel bookings
compared to FY 2020-21 ● Expected to cater to 520 mn passengers by 2037
● Between FY 16-22, freight traffic Marketing
increased at a CAGR of 2.52% from 2.70 Coupons and discounts, advertising, Cost Drivers
special programs for travel agents
MMT to 3.14 MMT.
Major drivers are : Fuel cost, employee cost, aircraft depreciation
and facility infrastructure (leasing, maintenance).

Business Models KPIs


Indigo Airlines( Low Cost Carrier Model) Revenue Drivers
● Focus on cost effectiveness & accessibility ● Operating Time
with market share of 58.9% ● Seat Load Factor ● Passenger services and inflight sales.
Vistara Airlines( Full Service Carrier Model) ● Available Seat Miles (ASM) ● Freight services.
● Focus on customer experience and luxury ● On Time Performance (OTP) ● Tours and packages.
with market share of 8.2%

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R#3
G#3 Automobile

Quick Facts Value Chain Current Trends

Inbound Logistics ● FAME II: Outlay of Rs 10,000 crore for promotion of EV


● India surpassed Japan in auto sales in adoption by price reduction and infrastructure development.
FY22 and became third largest auto Raw Material Procurement
● Fuel prices slowly shifting consumer preference to public
Warehouse Handling
market in the world. transport and shared mobility.
● Retail sales of EVs clocked 4,29,217 units Manufacturing
in FY22
●Future Outlook
Machining, Assembling, Quality Check
● Industry Size: 7.1% of GDP ● OEMs and banks partnering to take India’s EV finance
● India accounts for 40% of global R&D Outbound Logistics industry to $50 bn by 2030.
spend on automobile Warehousing, Distribution, Dealerships ● Subscription-based ownership model prominent, OEMs
● 100% FDI allowed under automatic route partnering with companies like Revv to suit Indian needs.
● In the Union Budget 2023, the Sales and Marketing ● Target 3.5-4x growth of Rs 16,16,000 crore by 2026.
government has increased the budget Advertising, Pricing, Promotion
allocation of FAME II by 78 %. Cost Drivers
After Service
● Primary cost drivers are R&D as well as Raw Materials.
Repair and Maintenance
● Cost increase expected for logistics and direct labour
● Advertising is also among the major cost drivers
Business Models KPIs
Maruti Suzuki (Passenger Segment Leader) Revenue Drivers
● High localisation of parts in India. ● Downtime ● Automobile Sales
● Largest distribution and service network. Utilization Rate
● 2 W, 3 W, Passenger Vehicles, Commercial Vehicles
Tata Motors (Commercial Segment Leader) ● Units Manufactured ● After Service Sales
● Strategically located manufacturing unit ● Inventory Turnover Ratio Installation and Repairs
● Efficient spare parts and service network. ● Financing services
● Safety Incidents / Employee
● Spare Part Sales

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R#4
G#3 Food Delivery

Quick Facts Value Chain Current Trends


● ̌Due to COVID-19,key players are introducing contactless
Inbound Logistics delivery services
● Online Food Delivery segment valued at Gig employees, restaurant ops, B2B ● Increased emphasis on online grocery delivery by
Sourcing and fleet established players
$ 7.4 billion in 2022
● Incr. in integrated payment solutions (Eat Now, Pay Later)
● The India online food delivery market is Operations
expected to exhibit a CAGR of 28.9%
●Future Outlook
Fleet management, cloud kitchen ops,
during 2022-2027 tech infrastructure
● India Online Food Delivery Industry expected to grow at a
● Top leading Indian online food delivery CAGR of 28.5% during 2023-2028.
Outbound Logistics
companies are Zomato, Swiggy, Delivery, Customer satisfaction/time ● Growth of cloud Kitchens & transition to delivery-only
Foodpanda, Bundl Technologies,, management, food credit and business model expected to accelerate
Domino's, etc. memberships ● Increased penetration into tier-2 cities
● Two delivery types i.e. Aggregator & Marketing
Cloud Kitchen. Coupons and discounts, advertising, Cost Drivers
special programs and loyalty
programmes. Major drivers are : Rising fuel costs, employee costs, commodity
super cycle, Marketing (B2B), Technology Investment for
efficiency, customer satisfaction
Business Models KPIs
Zomato/Swiggy (Restaurant commissions Revenue Drivers
& delivery charges) ● Average delivery time
● Meal rating (customer satisfaction) ● Increasing internet & smartphone penetration
Zomato/Swiggy earn through restaurants who
● AOV (Average order value) ● Growing working population
pay a commission for each delivery, which is then
split among the delivery partner and the ● ARPU (Average revenue per user) ● Inflating income levels
company. ● CAC (Customer Acquisition Cost) ● ENPL (Eat now pay later)
Commissions from restaurants vary based on the
order fulfiller.

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R#5
G#3 Pharmaceuticals

Quick Facts Value Chain Current Trends


Indian pharma exports witnessed a growth of 103% since
● The Indian pharmaceutical sector is R&D and Innovation 2013-14, from INR 90, 415 Crores in 2013-14 to INR 1,83,422 Crores
worth US$ 42 billion worldwide. in 2021-22. Exports achieved in 2021-22 is the Pharma Sector’s
Manufacturing best export performance ever. It is a remarkable growth with
● India has the 3rd largest
exports growing by almost $10 bn in 8 years.
pharmaceuticals industry in the world
Marketing Registration
● India is the world's largest supplier of
generic medications, accounting for Selection, Pricing and Reimbursement
●Future Outlook
● India's domestic pharmaceutical market is likely to grow to
20% of the worldwide supply by volume USD 65 billion by 2024 and is further expected to reach USD
Procurement and Supply
and supplying about 60% of the global 130 billion by 2030.
vaccination demand. Prescribing
● India is the 12th largest exporter of
medical goods in the world, exporting to Dispensing
over 200 countries. Cost Drivers
Use
Major drivers are : R&D cost, clinical trial cost

Business Models KPIs


Sun Pharma Revenue Drivers
● Operating Cash Flow
● Largest pharma company in India by revenue ● Rising incomes
and market capital ● Interprofessional Patient Care
● Enhanced medical infrastructure
● Average Prescriptions Filled per Day
Aurobindo Pharma ● Rise in the prevalence and treatment of chronic diseases
● Exports to over 150 countries across the ● Drug Therapy Problems ● Greater health insurance coverage
globe with more than 90% of its revenues ● Medication Reconciliation on Admission ● Launches of patented products
derived from international operations and Discharge ● New market creation in existing white spaces

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R#6
G#3 Oil and Gas

Quick Facts Value Chain Current Trends

Upstream ● Recoverable shale gas resources of nearly 96 tn cubic feet


● World’s third-largest energy consumer ● 35% of product movement over pipelines
globally. Second-largest refiner in Asia Exploration
● Refining hub with 23 refineries with expansions planned in
Development
● India is the 4th largest importer of export-oriented infra
Production
liquefied natural gas (LNG)
● India's current refining capacity stands
at 249 MMTPA, comprising of 23
●Future Outlook
Midstream ● Target of achieving 20% ethanol blending in petrol by 2025
refineries—18 under public sector, 3 Transportation ● Becoming a gas based economy by increasing the share of
under private sector and 2 in a joint Storage natural gas in India’s energy mix from 6.3 % to 15% by 2030.
venture. ● All states are targeted to be connected by a trunk national
● India’s crude oil production in FY22 pipeline network by 2027.
stood at 29.7 MMT Downstream
● The consumption of petroleum products Refining Cost Drivers
Marketing
stood at 204 MMT in 2022 vs 201 MMT in
Distribution ● Investment has been the main driving force
2021, i.e. a 1.5% YoY growth
● Rapid expansion and exponential rise in demand

Business Models KPIs


Oil And Natural Gas (Only Public Company) Revenue Drivers
● Reserve Life and Reserve replacement
● Biggest name in crude oil & natural gas
● Supplies 75% of the domestic demand ratio
● Gathering and Transportation Expenses ● Capital Management and Productivity
India Oil (Commercial Segment Leader) ● Public and Private Contracts
● Largest share in revenue production ● Taxation and Production cost
● Government policies and regulations
● Extensive refining, distribution, R&D and ● Natural Gas Equivalent (Cfe) ● Expansion and Maintenance Cost.
marketing infrastructure ● Cash Flow

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R#7
G#3 Steel

Quick Facts Value Chain Current Trends

Upstream ● Steel demand has grown by 7.2% in 2019-20 and 2020-21.


● World’s third-largest steel consumer ● The growth in the Indian steel sector has been driven by the
globally. Exploration
domestic availability of raw materials such as iron ore and
Development
● India is the 2th largest producer of cost-effective labour.
Production
steel.
● India's current producing capacity
stands at 111.245 Million tonnes (MT)
●Future Outlook
Midstream ● Target of becoming largest steel producer.
(provisional) crude steel with growth Transportation ● Rise in consumption due to increased infrastructure and
rate 1.8% over the corresponding period Storage thriving automobile sector.
last year (CPLY). ● Industry capital utilization will be around 80% in FY 2023
● The Union Budget 2023-24 has a 37.4%
YoY increase in allocation for capex at Downstream
10 lakh crore for steel and other Refining Cost Drivers
Marketing
minerals.
Distribution ● Investment has been the main driving force
● Rapid expansion and exponential rise in demand

Business Models KPIs


JSW Steel (Jindal Steels) Revenue Drivers
● Reserve Life and Reserve replacement
● Largest producer of steel in India
● The current installed capacity of the ratio
company stands at 18 MTPA. ● Gathering and Transportation Expenses ● Capital Management and Productivity
● Public and Private Contracts
Tata Steel (Quality Leader) ● Taxation and Production cost
● Government policies and regulations
● Second largest steel producer in the country ● Cash Flow ● Expansion and Maintenance Cost.
● Produces the best quality of steel in the
country and asian markets

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R#8
G#3 Healthcare

Quick Facts Value Chain Current Trends

Payers ● Increased use of wearable health devices and focus on


● Industry Size: $349.1 Billion (CAGR- 22% personalised healthcare
from 2016-22) Government, Employers (or Corporate)
● Integration of AI in early diagnosis and drug development.
or Individuals
● People Employed: 4.7 Million ● At home consultation through telehealth.
● India currently holds the 4th position in Fiscal Intermediaries
attracting VC funding to the health-tech Insurers, Third Party Administrators or
sector.
Health Maintenance Organizations ●Future Outlook
● Has a 29.5% share in the total gross Providers ● Various healthcare reforms launched before and during the
Hospitals, Clinics, Physicians, Diagnostic pandemic such as, National Health Digital Mission (NDHM).
written premiums earned in the country.
Centres, and Pharmacies ● By 2030, end the epidemics of AIDS, TB, Malaria and combat
● India’s public expenditure on healthcare hepatitis.
Purchasers
stood at 2.1% of GDP.
Wholesalers, Suppliers, Group Purchasing
● Bharat Biotech's Covaxin and Organizations of the equipment/drugs
Oxford-AstraZeneca’s Covishield Cost Drivers
Producers
manufactured by SII helped in medically Major drivers are : Changes in technology,Increased cost to
Drug, Equipment or Device
safeguarding against COVID-19 Manufacturers attract manpower, quality of infrastructure, increases in service
utilization and health-sector inflation
Business Models KPIs
Apollo Healthcare ● Ratio of staff to patients Revenue Drivers
● Largest private sector healthcare services ● Average duration of patient stay
provider in India. ● Population Aging
● Operates in hospitals, pharmaceuticals, ● Patient bed or room turnover rate ● Population Growth
primary care and diagnostic centers. ● Appointment Cancellation rate ● Demand for latest technology
● Use of key medical equipment ● Vaccination drives
Max Healthcare
● Public company which is the second largest ● Patient cost per visit ● Increase in diagnostic services
healthcare company by revenue.

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© 180 Degrees Consulting - Delhi Technological University
R#9
G#3 Fintech

Quick Facts Value Chain Current Trends

Payers ● Focus on COVID-19 vaccination drives to ensure mass


● Industry Size: $349.1 Billion (CAGR- 22% coverage.
from 2016-22) Government, Employers (or Corporate)
● Integration of AI in early diagnosis and drug development.
or Individuals
● People Employed: 4.7 Million ● At home consultation through telehealth.
● India currently holds the 4th position in Fiscal Intermediaries
attracting VC funding to the health-tech Insurers, Third Party Administrators or
sector.
Health Maintenance Organizations ●Future Outlook
● Has a 29.5% share in the total gross Providers ● Various healthcare reforms launched before and during the
Hospitals, Clinics, Physicians, Diagnostic pandemic such as, National Health Digital Mission (NDHM).
written premiums earned in the country.
Centres, and Pharmacies ● By 2030, end the epidemics of AIDS, TB, Malaria and combat
● India’s public expenditure on healthcare hepatitis.
Purchasers
stood at 2.1% of GDP.
Wholesalers, Suppliers, Group Purchasing
● Bharat Biotech's Covaxin and Organizations of the equipment/drugs
Oxford-AstraZeneca’s Covishield Cost Drivers
Producers
manufactured by SII helped in medically Major drivers are : Changes in technology,Increased cost to
Drug, Equipment or Device
safeguarding against COVID-19 Manufacturers attract manpower, quality of infrastructure, increases in service
utilization and health-sector inflation
Business Models KPIs
Apollo Healthcare ● Ratio of staff to patients Revenue Drivers
● Largest private sector healthcare services ● Average duration of patient stay
provider in India. ● Population Aging
● Operates in hospitals, pharmaceuticals, ● Patient bed or room turnover rate ● Population Growth
primary care and diagnostic centers. ● Appointment Cancellation rate ● Demand for latest technology
● Use of key medical equipment ● Vaccination drives
Max Healthcare
● Public company which is the second largest ● Patient cost per visit ● Increase in diagnostic services
healthcare company by revenue.

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R#10
G#3 Cement

Quick Facts Value Chain Current Trends

Inbound Logistics ● Cement demand expected to grow at CAGR of 5.68%


● India, ranked 2nd in cement production between FY16 and FY22.
and consumption globally. New Products
● The top 20 companies account for around 70% of the total
Improvements in existing products
● FDI inflows in the industry related to cement production in India.
manufacturing of cement and gypsum Operations
products reached US$ 5.48 billion Raw material sourcing and Storage
between Apri 2000-March 2022.
●Future Outlook
Outbound Logistics
● In the next 10 years, India could become the main exporter
● As per the Union Budget 2022-23, the Production & Packaging of clinker and gray cement to the Middle East, Africa, and
government approved an outlay of Quality assurance other developing nations of the world.
$26.74 billion for the Ministry of Road Sales & Marketing ● India’s cement production capacity is expected to reach 550
Transport, Highways, which is expected Distribution channel- Distributor, MT by 2025.
to boost the demand for cement. Retailer, E-commerce
● At present, the Installed capacity of Distribution centres & Warehouses Cost Drivers
cement in India is 500 MTPA with Service
● Freight Cost
Advertising & Promotions
production of 298 MTPA. ● Power and Fuel
Customer feedback
● Raw Materials
Business Models KPIs
Ultra Tech Cement ● Capacity Utilization Revenue Drivers
● Wide range of construction products under ● Heat Value
one roof with different names. ● Affordable housing schemes such as PM Awas Yojana by the
● First company in India to issue dollar-based ● Cement Factor Indian Government
sustainability linked bonds. ● Clinker Factor ● Sale of cement and revenue generated through interest
● Ultratech Building Solution - one stop shop ● EBITDA/ton ● Govt. Infrastructural CapEx and Pvt. Industrial CapEx
solution for building homes.
● EV/ton

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R#11
G#3 Telecommunication

Quick Facts Value Chain Current Trends

Telecom Infrastructure ● Rural market expansion


● Telecom sector in India is 2nd largest in ● Mobile and internet banking
the world with subscriber base of 1.17 bn. Network equipments, towers, regulatory
● Tariffs reduction
● People Employed: 4 Million ● Investment in optical fibres technology
● Govt launched PLI scheme to build a Network Service Provider
strong ecosystem of design-led Provides network services to users
manufacturing of telecom products.
●Future Outlook
● 10 mn+ Active 5G devices in India. Content Provider ● Cashless transactions and digitalisation
Content provider to users ● The 5G and Internet of things impact
● Telecom sector is the 3rd largest in
● Enabling Medtech companies to collect and analyze
terms of FDI inflows, Contributing 7% of information wirelessly.
Marketing
the total FDI inflow.
B2B, B2C Marketing
● Average wireless data usage per
subscriber : 17 GB per month in FY22 Cost Drivers
Capital Expenditure- cost of spectrum, govt license fee, etc
Operational and Maintenance costs- Rentals, Salaries,
Marketing, Advertisements, etc.
Business Models KPIs
Jio Telecom (Vertical Integration) ● Average revenue per user Revenue Drivers
● India’s Largest telecom operator with market ● Subscription acquisition cost
share of 36.60% with focus on vertical ● B2B Industries
integration (Broadband/IOT). ● Network operating cost Manufacturing, Financial, Retail and other industries
● Minutes of usage ● Rise in mobile phone penetration
Airtel (Enterprise Solutions)
● Average revenue per minute ● Internet user base
● 2nd largest provider of mobile/broadband
services focusing on leased line and
enterprise.

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© 180 Degrees Consulting - Delhi Technological University
R#12
G#3 E-commerce Industry

Quick Facts Value Chain Current Trends

Sourcing ● Use of AR and VR technology


● After China and the US, India had the ● Incr. in integrated payment solutions (Buy Now, Pay Later)
third-largest online shopper base of B2B, Co-Sourcing, Modular production,
● Investment into supply chain visibility
Mass customisation
190 million in FY21 and is expected to be ● Product discoverability & In-house brands growing
350 million by FY26. Midstream
● India's consumer digital economy is Demand planning, Storage,
expected to become a US$ 1 trillion
Warehousing, Inventory management ●Future Outlook
market by 2030 Marketing ● Projected to exceed ~300-350 million shoppers, propelling
Targeted marketing,Dynamic content, the online Gross Merchandise Value (GMV) to US$ 100-120
● In 2022, the Indian e-commerce market
End-to-end ROI billion by 2025.
reached US$50 billion to potentially
Sales ● Expected to surpass the US to become the second largest
surpass US in 1-2 years. E-commerce market in the world by 2034.
Customer retention, Payment
● Major contributors to the growth of the methodology, Unified experience
industry is internet and smartphone Delivery Cost Drivers
penetration in the country. Logistical planning, Omnichannel
fulfillment Marketing (B2B, B2C)
Logistics to drive faster, more efficient purchases
Technology Investment for efficiency, customer satisfaction
Business Models KPIs
Myntra Ecommerce Platform In India ● Conversion rate (CS) Revenue Drivers
● world’s first “App Only” e-commerce ● Customer Acquisition Cost
company ● Inventory Management for sellers/affiliates
● Average Order Value
Nykaa ● Government Policies (Udaan, Digital/Startup India)
● Customer Lifetime Value
● D2C consumer products eCommerce ● Digital Payments (Customer-side EMIs etc)
● Add to cart rate ● Diversified Portfolio (Groceries, Suggestion Algorithms,
brand, relies on an inventory-based
● Average revenue per customer ● Electronics)
business model.

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© 180 Degrees Consulting - Delhi Technological University
R#13
G#3 FMCG

Quick Facts Value Chain Current Trends


● Using big data and analytics to explore ways to improve
● Fast moving consumer goods (FMCG) is Inbound Logistics relationships with the customers and gain behavioral insights
the fourth-largest sector in the Indian Transportation, fuel, route selection, ● Emphasis on eCommerce and a connected supply chain
planning of distribution management
economy.
● Products designed and targeted at Millennials and Gen Zs
● The urban segment contributes to Operations
about 55% of the revenue share, while
●Future Outlook
Quality checks, weighing, handling
the rural segment accounts for 45%. ● Cashless transactions and digitalisation
● The Indian processed food market is ● Boosting connectivity to smaller cities and northeastern
Outbound Logistics
projected to expand to US$ 470 billion states
Packaging, sampling, pre-orders
by 2025. ● E-commerce share of total FMCG sales is expected to
● India leads Advertising growth rate and increase by 11% by 2030.
volumes with spending increasing by Marketing
14% a year while global rate stands Coupons and discounts, advertising, Cost Drivers
collaborations with non-profits
between 2-5% year across 12 major
Major drivers are : Fuel cost, employee cost, transport
global markets
maintenance, infrastructure and product packaging

Business Models KPIs


Dabur India (Sustainability Model) ● Stock levels per store
Revenue Drivers
● Achieved the goal to collect, process, and ● Product margins
recycle 22,000MT of post-consumer plastic
three months early ● Supply chain costs ● Rising incomes and a growing middle class
Adani Wilmar (Ground Level Reach Model) ● Average time to sell ● Increased consumption in tier 2, 3, and 4 cities
● Opening of physical stores under the name ● Brand preference vs competitors ● Urbanisation and nuclearisation
‘Fortune Mart’ that will exclusively sell their ● High consumer demands
products

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R#14
G#3 Hospitality & Tourism

Quick Facts Value Chain Current Trends

Inbound Logistics ● Covid recovery in tourism


● India holds the 54th rank according to ● Medical tourism is predicted to increase at a CAGR of 21%
the Travel and Tourism Development Recurring payment contracts with
● Government is providing free loans to MSMEs to deal with
suppliers, one-time acquisition of assets
Index (TTDI) post-covid crisis.
● Number of international tourist arrivals Operations
in India in 2022: 6.19 Million
●Future Outlook
Production of goods and services,
● Number of domestic tourist arrivals in management of properties
● International tourists expected to increase to 30.5 million
India in 2022: 677 Million ● 18.42% increase in Union Budget allocation in FY’22-23 over
Outbound Logistics
● Industry Size in 2020: $75 Billion and budget allocated in FY’21-22
Distribution of goods (meals, hampers,
projected to reach $125 Billion by 2027 ● Mass utilization of AI/ML based technologies to facilitate
accommodation) & services (room
● Jobs Produced: 39 Million services
service, event planning, spa, transport)
● 5.8% contribution of travel and tourism
to India’s GDP Marketing Cost Drivers
Coupons, advertising, bulk discounts, ● Infrastructure procurement and construction
● Expected annual growth rate of 10.35%
package deals ● Maintenance and utilities
between 2019 and 2028
● Insurance and Taxes
● Labour costs
Business Models KPIs
JW Marriott Revenue Drivers
● Foreign Tourist Arrivals (FTAs)
● Four primary value propositions: accessibility, ● Food and beverage deliveries.
customization, cost reduction and ● Number of Tour Operators
● Taxis, self-drive car rentals, railway and flight tickets.
brand/status. ● Number of Domestic Tourist Visits
● Entry tickets for museums and other places of attraction.
● Main resources are human resources ● Average Daily Revenue
(customer support, waiters, chefs,
● Spa, gym and pool services.
housekeeping staff) and properties (value
● Utilization Rate ● Event organization (sales conferences, destination weddings)
depends on proximity to airports, commercial ● Market Penetration Rate
centres; room size etc)

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© 180 Degrees Consulting - Delhi Technological University
R#15
G#3 IT

Quick Facts Value Chain Current Trends

Operations Setup ● Work from home flexibility increasing growth opportunities


● Indian IT industry growing at almost and workforce involved
twice the rate of economy Infrastructure, talent acquisition,
training and employee retention ● Adoption of pioneering technological fields of AI, Big Data,
● There were 4.5 lakh jobs created by the IoT, Blockchain etc
industry, with over 2 lakh women Customer Acquisition
recruited in FY22
●Future Outlook
Client acquisition, product sales and
● The Indian IT industry has a low cost marketing, business innovation
advantage over other countries ● By 2025, expected growth to $350bn at an annual growth
Customer relation and product rate of 6%
● India saw $70 bn in FDI investments
delivery ● AI to add nearly $1 trillion to the Indian Economy
over the past 10 years and $12.48 bn in ● Export revenue to rise by 11.4% in FY23
Client requirements catering, product
PE investments development, testing, bug fixation and
● The exports from the Indian IT industry deployment
stood at nearly $194B in FY22 Cost Drivers
After Service ● Employee salaries and perks
IT support and customer service ● Data warehousing and handling
● Software maintenance
Business Models KPIs
Tata Consultancy Services Revenue Drivers
● Global leader in IT services, consulting ● Software bugs and mean time to fix
and business solutions ● Addressable market size ● Software as a Service (SaaS)
● Services include application Customer acquisition cost
● ● Cloud infrastructure
development, business process
● IT ROI ● IT consulting and other range of products
outsourcing, enterprise software,
● Average handle time ● Upgrades
payment processing

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© 180 Degrees Consulting - Delhi Technological University
R#16
G#3 Banking

Quick Facts Value Chain Current Trends

Deposits ● Banks are increasingly looking at consolidation to derive


● In January 2023, Unified Payments greater benefits such as enhanced synergy, cost take-outs
People who put money into banks are
Interface (UPI) recorded 8.04 billion from economies of scale, organisational efficiency and
called depositors.
transactions worth Rs. 12.98 trillion diversification of risks.
● As of April 2022, the total number of Interest
The depositor thus earns some interest
ATMs in India reached 215,677 out of
which 47.5% are in rural and semi urban
from the principal deposited. ●Future Outlook
areas ● Increase in working population and growing disposable
Loans
incomes will raise demand for banking & related services.
● RBI has allowed regional rural banks Using the accumulated funds of many ● Indian Fintech industry is estimated to be $150 bn. by 2025.
with net worth of at least US$ 15.28 depositors, the bank makes loans to ● In the Union budget of 2022-23 India has announced plans
million to launch internet banking customers on higher interest rates. for a central bank digital currency.
facilities. Economy
The money borrowed goes to buy
products or services, to manufacture Cost Drivers
goods, and to start businesses.
Business Models ● Intake operations for new loan applications, such as home
equity, mortgage, and consumer loans
State Bank of India KPIs ● Personnel and security expenses
● Indian Multinational, Public Sector
Banking and Financial services statutory
body ● Strong economic growth Growth Drivers
● Services include savings account, credit ● Rising disposable incomes
cards, fixed deposits, personal loan, ● Increasing consumerism ● Policy support
home loan, business loan, debit card, ● Infrastructure financing
● Easier access to credit Cross-border payments
loan against property, car loan, gold ●
loan, mudra loan and more. ● Rising rural income ● Open banking ecosystem

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R#17
G#3 Transportation

Quick Facts Value Chain Current Trends

Inbound Logistics ● 100% FDI in road and aviation sectors.


● Major segments aviation , roads and ● Sector received M&A deals worth USD 1,461 Mn.
railways Receive orders and delivery records
● Emergence of new technologies including robotic process
● Contributes to roughly 8.4% of GDP automation, drones, AI , autonomous vehicles and IoT.
● Additionally, the logistics industry Operations
accounts for 13-14% of the GDP
●Future Outlook
Checking packaging
● Road network is 2nd largest in the world ● Expected to grow at a CAGR of 5.9%
and covers 6.3 million kilometers ● Mass rapid transit system(MRTS) to be available in more
Outbound Logistics
● Rail network is 2nd busiest transporting than 50 cities by 2025
Delivery of goods, flow and inventory
3.52 bn passengers and 1.42 billion ● Expected to account 40% of rail activity worldwide by 2050
management
tonnes of freight as of 2022
● India is the 3rd largest market in terms Marketing and Service
of aircraft passengers Partner with various companies, speed Cost Drivers
of delivery
Major drivers are : Fuel cost, labour cost,infrastructure, facility
infrastructure (storage, maintenance).

Business Models KPIs


● Private-Public-Partnership (PPP) which Revenue Drivers
gives room for private players in the ● On-time delivery over time
industry ● CO2 emissions over time ● Rising exports
● Uber and Lyft Transoprtation Time
● ● Freight services.
Peer-to-Peer model ie, rent out vehicles
● Percent Trucking Capacity Use ● Growing FMCG sector
whenever it’s needed
● On-Time and In-Full (OTIF) ● Increasing interstate movement

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© 180 Degrees Consulting - Delhi Technological University
R#18
G#3 Real Estate and Infrastructure

Quick Facts Value Chain Current Trends

Initiation The sector has witnessed a digitization wave on a large scale.


Developers are using innovative technological tools and
● Most globally recognised sector. - Business Appraisal
- Initial Financing
practices across various stages of business operations. Virtual
● Comprises of four sub-sectors: housing, walkthroughs have been a game-changer for the industry.
- Negotiations
retail, hospitality and commercial.
Compliances
● In India, real estate is the
●Future Outlook
- Investments
second-highest employment generator. - Funding
● Bengaluru is the most favoured - Shareholding ● By 2040, real estate market will grow to Rs. 65,000 crore
property investment destination for Sales (US$ 9.30 billion) from Rs. 12,000 crore (US$ 1.72 billion) in
- Marketing 2019.
NRIs.
- Agreements
● According to Savills India, real estate ● Real estate sector in India is expected to reach US$ 1 trillion
Asset Development
demand for data centres is expected to in market size by 2030.
- Construction
increase by 15-18 million sq. ft. by 2025. - Contracting
Asset Management Cost Drivers
- Utilization
Major drivers are: Demographics, Interest rates, The economy,
Government Policies/Subsidiaries
Business
● Models KPIs
MagicBricks ● Payback Period Revenue Drivers
MagicBricks is a real-estate portal that ●
● Return on Investment
makes its money primarily from Producers, Average Mortgage Rate
● ● Urban Population
who spend a lot to expand their new
● Tenant Turnover ● Affordable Housing
operations. Another income stream is
selling leads to dealers. And ads are just a ● Real Estate Demand Growth ● Infrastructure Development
minor portion of it. ● Number of days on market ● Home Loan Rates

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© 180 Degrees Consulting - Delhi Technological University
R#19
G#3 Alternate Energy

Quick Facts Value Chain Current Trends


● India stands at 4th position for overall ● Integration of Artificial Intelligence, Big Data and IOT in clean
installed renewable energy capacity in Upstream Process energy sector
the world. The process of procuring renewable ● Accelerating the use of Green Hydrogen Energy
energy sources. E.g - Biomass, Wind, ● Companies setting science-based and net-zero targets at
● Renewable energy forms a quarter of
Solar, Hydropower, Geothermal record rates
India’s total installed power capacity -
accounts for 13% of the country’s
electricity generation. Production Management ●Future Outlook
● India to produce 50% of electricity & install 450GW by 2030
● Global Industry Size - $1030.95B in 2022; Conversion process of each ● It is expected that by 2040, 49% of the electricity produced
projected to reach $1,977.6B by 2030 at renewable energy source into will be by renewable energy(RE)
electricity using specific devices ● The Central Electricity Authority (CEA) estimates, by 2029-30,
a CAGR of 8.6%
developed for this purpose RE generation would increase from 18% to 44%
● 120.90 GW of renewable energy
capacity installed as of Dec 2022, which Downstream Process
is nearly 69 percent of the target The process of distribution of all energy
Cost Drivers
intended to be achieved by then forms to end users (Industry, Domestic
and transportation sectors) Major drivers are : huge upfront production cost, storage system
for energy produced is expensive

Business Models KPIs


● Generating clean energy, such as Revenue Drivers
● Power Cuts & Average Duration
wholesale power purchase
● Consumption by Sector ● Government initiatives, commitments and incentives
agreements (PPA).
● Operating Cash Flow ● Increasing investments, FDI inflows and M&As
● Procuring clean energy, such as
● Energy Production Distribution ● Social and Economic development
leasing models and direct off-site ● Falling costs of production
● Performance Ratio
PPAs.
● Production Costs

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© 180 Degrees Consulting - Delhi Technological University
APPENDIX
Appendix: Datasheet - India
India Demographics Age Spread Population % Income Group
Total Population 140 Crore
0-14 yrs 26%
Area (L x B) 3214 km x 2933 km Class Composition
Density 464 people/Sq.km 15-24 yrs 18%
BPL 10%
Lok Sabha Constituencies 543 25-34 yrs 17%
Life Expectancy 70 Years Lower-Middle 40%
35-44 yrs 14%
Sex Ratio (F:M) 943 : 1000
45-54 yrs 10% Middle 40%
Average Household Size 4.4
Urban : Rural (Population) 35 : 65 Upper 10%
55+ yrs 15%
Literacy Rate 77.70%
GDP (Nominal) $ 320,000 crore
Religion Hindu Muslim Christian Sikh Others
GDP Growth Rate (2021) 8.7%
Internet Penetration 56 Crore (40%) Population 80% 14% 2.5% 1.5% 2%

Area Distribution of India Overall Gross Value


Sector Added Distribution of workforce
Cultivated 60%
(as of 2022)
Forest Cover 20%
Agriculture 17% 42.4%
Built Up Area 10%
Industries 30% 25.6%
Misc 10%
Services 53% 32%

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Appendix: Datasheet - Delhi NCR & DTU

DTU Demographics Demographics of Delhi Delhi Constituencies


Total Population 2 Crores Lok Sabha 7
Student Teacher Ratio 30:1
Literacy Rate 86%
Districts 11
Student Staff Ratio 20:1
Work Participation Rate 32%
Assembly 70
Area of DTU 165 Acres BPL Household 18%
GDP ₹7.80 lakh crore Wards 372
Perimeter of DTU 2.5 KM

Boys Hostels 9 Delhi Metro Area Distribution (1600 Sq. KM)


Number of lines 10 (6 major)
Girls Hostels 3 Residential 25%
Average Stations 30 per line
Enrollment in DTU 10,000 Number of Trains 310 Commercial 20%
No of Hostellers 2900 Coach length 20 m

Daily Ridership 30 Lakh Roads 20%


No. of Departmental Blocks 5 + DSM + 14 SPS
Average distance
2 KM Green Cover 25%
No. of Canteens 4 Between 2 stations

Average distance
Girls : Boys 1:5 100 m Misc 10%
between 2 pillars

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