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Business Plan of shoes

Preprint · October 2018

DOI: 10.13140/RG.2.2.28042.95682

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Contents
1.EXECUTIVE SUMMARY

2. MARKET ANALYSIS
3. PESTLE ANALYSIS
4. INDUSTRY/COMPETITIVE ANALYSIS
5. INDUSTRIES FIVE COMPETITIVE FORCES
6. SWOT ANALYSIS
7. OBJECTIVES
8. MARKETING STRATEGY

8.1 Product strategy

8.2 Pricing Structure

8.3 Pricing Strategy

8.4 Distribution Strategy

8.5 Promotional Strategy

8.6 Salesforce Strategy

9. Financials
10. Market Analysis
 SKISMART

EXECUTIVE SUMMARY

Skismart is the footwear brand launched under the Techno Global of BPL in 1997. BPL is a
5500 Crore diversified conglomerate, which started with primary business in FMCG
products. Skismart is a complete leather and footwear company with its own tannery and
five manufacturing units. Skismart aims to cater to the increasing demand of branded
leather footwear.
The company management

Techno Global Pvt. Ltd, the fast-growing part of BPL, is a respected name in leather industry
since 1995. It’s an assemblage of potential manufacturing units with an unbeaten
experience of 16 years. BPL Limited started its primary business with a single production
unit.

The footwear range of Techno Global Pvt. Ltd was launched under the brand name
SKISMART in 1997 to meet growing demand for branded high-quality leather footwear. The
company is a complete leather and footwear manufacturer with its own tannery and five
manufacturing plants. This recognition is inspiring the team to increase its production
capacity and fulfil the growing needs of consumers.

BPL Group is promoted by Manchandani family. The promoter directors are combination of
experienced and young persons.

Shridhar
Executive Chairman
Joined the family business of his father
His vision and strong dedication laid the foundation of the ‘BPL Limited’ Group. He has the
responsibilities of finalizing Corporate Strategy & Planning for the growth of the business of
the Group. Under his leadership the Group has established itself amongst the top
manufacturers of detergent products in a short period of nearly 3 decades. He provides
guidance to the younger generation to venture into new categories.

Jayprakash Kumar
Managing Director
Joined the family business of his father with his elder brother Shridhar.
His responsibilities are to supervise and control management of the entire group. His
contribution to the Human Resource Development in the Group has been enormous and his
media and advertisement strategies have proved to be very efficient in terms of sales
response. His ability to spot trends early has helped to identify new segments the company
should foray into.

Manish Kumar
Director
Joined the business in 1996 at a very young age.
His contribution to the group was the first business diversification in the leather
industry. After establishing Leather and Footwear venture and turning the business into
Rs. 100 crores, he is on his way to create new land marks in Dairy business.

Rohit Gyanchandani
Director
He was inducted to the Board of the Company in the year 2005.
"He has the responsibility of planning and monitoring advertising and evolving new
strategies for marketing. He is also looking after Hygiene care, International business and
real estate business of the Group. One of the Group company, Gippi Build Tech Pvt. Ltd. is
developing residential projects in Kanpur and Lucknow through SPV."
Our Services
Skismart takes pride in its creative design, we manufacture shoes in three segments –
formal, casual and sports-wear. Our clients are specifically men of the age group 18-25.
From this segment Skismart has targeted those men who are enthusiastic and zealous
enough for outdoor activity of any form. To be concise who are adventurous, passionate,
nature lovers. We have positioned our product in the similar fashion: “We define leather,
you define adventure.”
The Market
Indian footwear industry produced around 2.2 billion shoes in 2015, where 90% was
consumed internally while the balance was exported to different parts of the world. India
was a part of $126 billion export market in which its share was approximately 2% which is
relatively low in comparison with China (13.8 billion shoes, 40% export share). Within the
industry the unorganised sector plays a crucial role in acting as a competitor to the existing
brands. The unorganised sector comprises of all the shoe makers that are manufacturing non-
branded shoes, first copies and fake brands. This has a huge impact on the revenues of the
branded companies. Amid of all the stringent competition Skismart has been successfully
able to establish its presence in tier 2 and 3 cities from which almost 80% of the revenues are
being captured.
Competitive Advantage

· While the competition is neck to neck, to capture the mood of the customers the
marketing strategy being followed by Skismart is to the stylish yet completely comfortable
and durable highly technological driven shoes of the highest quality at affordable price which
would inspire the youth for adventure.

Financial Projections

Based on the size of our market and our defined market area, our sales projections for the
first year are 400 crores INR. and in second year is INR 540 crore We project a growth rate
of 20% per year for the first two years.

Already we have service commitments from over 80 retail outlets and plan to
aggressively build our client base through newspaper, website, social media, and advertising.

2. MARKET ANALYSIS
Market analysis is conducted by undertaking market segmentation, targeting and position.
The process of market analysis will help understand the current situation of the market and
the company’s performance and standing.
2.1 Segmentation
The process of segmentation is ideally dividing the entire market of potential customers into
groups or segments with the intent to identify similar traits, interests, needs and location.
The method of segmentation in this report utilises the demographic, psychographic, gender
and location parameters.
2.1.1 Demographic
Capturing the right kind of market is critical as it serves as a base for further set of analysis
and campaign strategies. Skismart primary market comprises of all the youth that comes
under the age bracket of 18-25 years, based on the belief that college students and young
professionals are more enthusiastic towards outdoor adventures be it sports, road trips,
hiking, jogging, etc
2.1.2 Gender

This shoe brand is specifically focussed towards men. They offer a whole range of products
to cater to any shoe requirement for males. This is based on an intent that once they have a
customer, ideally, he should choose Skismart for all the shoe categories.

2.1.3 Psychographic
This primarily involves segmentation of the market based on personality traits, interests,
attitudes and lifestyles of the target consumers. The segment focussed here is people who
prefer outdoor sports and adventure sports.
For this there are areas identified (based on origin) in India that are the highest in terms of
tourists.1 This indicatively gives an idea of potential location and target audience where the
product can be introduced and marketed.

Graph 12

1
Refer:http://tourism.gov.in/sites/default/files/Other/Adventure_Tourism_Final_Report_revise_on_2
6-10-2016_%282%29.PDF

2
Refer: http://tourism.gov.in
The table below also gives the number of tourists in each state, indicating potential markets.
This data supports why certain markets are preferable than others.

STATE NUMBER OF
TOURISTS
Uttarakhand 864557
Himachal 445121
Maharashtra 231605
Goa 176406
Jammu 175672
Rajasthan 160844
West 142976
Kerala 115373
Assam 115133
Madhya 110671
Karnataka 79780
Arunachal 64398
Sikkim 58231
Andhra 55974
Pradesh/Telangana
Table 13
2.1.4 Internet availability based segmentation
The company as of now has presence on online portals and tries to push the products on
online shopping websites. Understanding the growing importance of internet shopping by
current consumers, segmentation has been done based on people with internet access and
availability of high-speed internet.
Because there is 238% growth in online shoes sale in 2018

3
Refer: http://tourism.gov.in
Graph 24
The above graph indicates an increase in the internet speed availability, given that over 26%
people in the country actively use internet for shopping this is a potential segment for
promoting and selling the product.
India is also the second in terms of internet usage after China, again supporting the
assumption that internet-based segment will prove to be a successful strategy.

Graph 25

4
Refer: https://www.statista.com/topics/2157/internet-usage-in-india/
5
Refer: https://www.statista.com/statistics/265153/number-of-internet-users-in-the-asia-pacific-region/
The table below captures the entire segmentation as undertaken by the company.

Type of segmentation Segmentation criteria Skismart segment

Geographic Region Tier1,2 and 3

Density Rural/urban
Age 18-25
Male and female
Gender
Demographic College
Occupation Young working
professionals

Income Dependent (parents’

income 12-50 Lakh) or
student part time job,
young professional income
(6-15 Lakhs)
Behavioural Benefits sought Causal shoe

Sporty personality, natural

Personality lover, traveller

User status Regular user

Psychographic Social class Working class, middle class

Lifestyle Aspire, explore

Table 2
2.2 Targeting
The identified needs which are taken care of are light weight flexible shoes, which are sturdy
and long lasting. The corresponding benefit or feature is that the shoes should be comfortable
for outdoor activities, should easily bend and modify without breakage.

Targeted segment Customer Need Corresponding

Feature/Benefit
Interested in Light weighted and flexible Comfortable for outdoor
Outdoor Adventure shoes adventures, easily bends
and modifies without
breaking or damage.
Table 3
2.3 Positioning

The exercise is undertaken to understand how the company aligns a brand or product in the
targeted market. The idea is to offer something bigger, better and more valuable than the
competitor in the market.
The company tries to position itself with the statement “We define lifestyle, you define your
adventure.” This statement claims a bold positioning strategy whereby Skismart is challenging
the customer to take on the adventure of their choice and the shoes will be able to deliver on
the expected and augmented benefits.
3. PESTLE ANALYSIS
3.1 Political
- The government of India is expected to pump in money to the tune of Rs 2600 Crore to
increase the employment opportunities. This means there will be an increase in the
disposable income of the middle-class group, and they will be more willing to spend money
on products relating to lifestyle in our case the shoes.
- Increase in the disposable income would mean an increase in the potential consumer group,
which would further lead to an increase in the consumption pattern. To be concise a multiplier
effect is being generated in the economy.
- Promoting exports in the leather industry.
- Decreasing GST from 18% to 5% for shoes which are marketed below Rs 1000/-.
- All of this simulates an increased demand for the product.

3.2 Economical

- The footwear industry is expected to grow at an CAGR of 10% by 2020, thereby creating an
opportunity for the product.
- The Indian leather industry accounts for almost 12.9% of world’s leather production. India
is the second biggest exporter of leather products to USA and UK after China.
- This growth in the overall apparels and leather industry is indicative of a positive economic
environment for the product

3.3 Socio-Cultural
- Increased demand for branded products by the virtue of an increase in the disposable
income. This is due to an increase in the percentage of nuclear families about 47% and
increased participation of women as the bread earner of the family. These two factors
together imply that there are more earning members and fewer mouths to feed, thereby an
increased affinity towards branded products.
- A similar inference can be drawn for the increased interest in outdoor activities, also
supported by the fact that a large population in India comprises of youth in age group of 18-
25.
- This increase in demand will be met by the increase in supply by increasing the plant capacity
or improved technological interventions. But there will be more market for shoes in the
future.
3.4 Technological
- Digital penetration in India is increasing at an exponential rate, 13% of the population uses
smart phones, of which 91% of the users search for products via their device and about 54%
people complete their transaction using the smart phones.
- The internet penetration is now steadily increasing. This implies a potential positive
environment to market the product through the internet and increasing visibility and chances
of selling.
3.5 Environmental
- There are strong waste management norms for leather tanneries. Also, there are strong
regulations on leather production.
- There is also strong regulations and rules for manufacturing units with reference to their ETP
and STP plants.

4. INDUSTRY/COMPETITIVE ANALYSIS
Indian footwear industry produced around 2.2 billion shoes in 2015, where 90% was
consumed internally while the balance was exported to different parts of the world. India was
a part of $126 billion export market in which its share was approximately 2% which is
relatively low in comparison with China (13.8 billion shoes, 40% export share).
The graph below gives the performance of the industry in the last five years.6

6
Refer: https://www.ibef.org/home/search
Graph 3

Within the industry the unorganised sector plays a crucial role in acting as a competitor to the
existing brands. The unorganised sector comprises of all the shoe makers that are
manufacturing non-branded shoes, first copies and fake brands. This has a huge impact on
the revenues of the branded companies.

The market share of the unorganised and organised sector for the last year and the
projections for the next year are given below.
 Marketing position Sale (INR) Market share
Unorganised sector 50,000 52.17572785
Bata shoe 24,972 26.05864552
Hush puppies 8,100 8.452467912
2,500 2.608786393
Paragon 2,200 2.295732025
Relexo 1,956 2.041114474
Woodland 1,400 1.46092038
Adidas 1,000 1.043514557
Puma 921 0.961076907
Nike 762 0.795158092
Liberty 551 0.574976521
Reebok 413 0.430971512
Lee cooper 370 0.386100386
Redtape 290 0.302619222
Red Chief 270 0.28174893
fila 125 0.13043932

Market Share

0.28%
0.79% 12%
1%

8%

52%

26%

Unorganised Sector Bata Hush Puppies Adidas Nike Red Chief Others

Graph 4
The graph above is a pie chart representation of the market share. Skismart has a very small
market share of .28% with Bata being the clear market leader.
5. INDUSTRIES FIVE COMPETITIVE FORCES

Threats of entrants evaluation

Criterions Weight Estimate
Barriers to entry
Economies of scale gained by main players 0.1 HIgh
Product differentiation 0.1 HIgh
Costs inequity (i.e. due to learning curve) 0.1
Customer switching costs 0.1 High
Main players' costs or quality advantages 0.1
Access to distribution channels 0.1 HIgh
Government policy restrictions 0.1 HIgh
Expected retaliation
Availability of resources to fight back the entrants'
attack 0.1 Low
Competitors’ willingness to cut prices 0.1 High
Industry growth 0.1 HIgh
Bargaining power of suppliers evaluation
Criterions Weight Estimate
Number of suppliers 0.2 Low
Level of supplier concentration 0.2 Medium
Switching costs in changing a supplier 0.15 Low
Differentiation of purchased resources 0.15 Low
Importance of industry for supplier 0.15 High
Potential threat of forward integration 0.15 Low
Intensity of rivalry evaluation
Number of equal (in size and
power) competitors 0.16 High
Industry growth 0.16 High
Product differentiation 0.12 High
Magnitude of capacity expansion
required 0.12 High
Exit barriers 0.14 High
Diversity of rivals 0.15 High
Threat of horizontal integration 0.15 Medium
Bargaining power of buyers evaluation
Number of buyers 0.2 Many
Level of buyer concentration 0.2 Low
Level of buyers' sophistication 0.2 HIgh
Buyers’ switching costs 0.1 High
Buyer price sensitivity 0.1 HIgh
Importance of the products or services quality for
the buyers 0.1 High
Proportion of industry product purchase in buyers
expenditures structure 0.05
Potential threat of backward integration 0.05 Low
Threat of substitutes evaluation
Number of substitutes 0.25 Many
Obvious advantage of substitute 0.25 attractive/unattractive
Buyers’ switching costs to the
substitute 0.25
Profitability level of industries
offering substitutes 0.25
 Forces Strength
Barriers for new entry 0.4

Bargaining power of 0.15

suppliers
Intensity of rivalry 0.85
Bargaining power of 0.7
buyers
Threat of substitution 0.5

Force Strength (FS) is calculated as follows

𝑭s=∑𝒏 .
𝒊=𝟏 𝑬i/l ⁄𝑬max × 𝑾i

where Ei – expert’s estimate of an ith criterion ( i =𝟏, 𝒏 ) of the Force

Strength
Industry Attractiveness (Aind) as

Aind =m - ∑𝒎
𝒋=𝟏 𝑭𝑺𝒋

where j is the number of the Force, and j =1,5.

Value of Aind varies from 0 to 5 points

𝑭s=∑𝒏𝒊 𝟏 𝑬i/l .⁄𝑬max × 𝑾i 0.83

Aind =m - ∑𝒎
𝒋 𝟏 𝑭𝑺𝒋 = 5- 0.83
=4.17

Status (Aind) Industry attractiveness is higher

Table 5
According to above the main competitors can be identified as – Unorganised Sector, Adidas,
Nike, Red Tape, Bata, Paragon etc.
5.1 Advantages enjoyed by competitors
The main competitors as identified are – Woodland, Adidas and Nike. The table below shows
the advantages each has based on the secondary data collected from reviews online.

Woodland Adidas Nike

Customer Loyalty Aesthetics largest supplier of

designer shoes
High Quality Brand Value Highly innovative shoes

Brand positioning Technologically

embedded
Table 6
6. SWOT ANALYSIS

Particular Performance Importance

 Highly innovative  High
manufacturer
 Core competency is  High
backward integration for
Strengths raw material.
 Continuous technology
development
 High
 Limited presence
Weaknesses Brand awareness is low in tier  High
1,2 and 3.
 Introducing new GST rate  Low
Opportunity sab for footwear give
boost for industry

 Competitors such as  High

Unorganised sectors
 Fake or duplicate  High
products by unorganised
Threats sector
 High
  Environmental norms for
footwear industry

7. OBJECTIVES
The company states two objectives – financial and non-financial as stated below.

Financial objectives Non-financial objectives

• Double revenue (INR 270 • Increasing Brand

crore in FY17) till FY 2020 awarness communication
• year sales (crores) • To establish ourselves as
• 2019 400 market nicher by 2023 in
• 2020 540 creating and
manufacturing innovative
products

8. MARKETING STRATEGY
8.1 Product strategy

Product benefit in a hierarchical format

 Core benefit- the core benefit of Skismart is providing safety, protection and hygiene
for barefoot.
 Basic product- shoes.
 Expected product- Rough and tough shoes for outdoor use without any
maintenance.
 Augment Product – Outdoor shoe with all round comfort (bend easily without
breaking and offer comfort in various terrains, cushion for great comfort).
Additionally, it will be a smart shoe, wherein the customer would be able to capture
the steps travelled through the automated teller machine present on the shoes.
Also, integrated mechanism of shoes will be connected with the mobile phone that
will calculate the body mass index and will tell how much more is required to travel
in order to remain healthy.
 Potential product- Recyclable sole/upper material and natural tanned leather and
light weighted around 350g (for single shoe). The shoes will be tied automatically
with the help of vacuum pressure.
8.2 Pricing Structure

The price structure of Skismart is based upon the market penetration strategy. Price range is
being offered to attract more and more customers.

8.2.1 Skismart

Category Price range (INR)

Poweflex 4000-5000
Eco energy 5000-7000
Ad smart 7000-10,000

8.2.2 Woodland

Product category Price Range (INR)

Boots (Shoes) 2495-5695
Sandals 2195-3695

8.2.3 Adidas

Product category Price Range (INR)

Casuals 2756-5795
Sandals 1795-3395
Sports shoes 3995-5295
8.3 Distribution Strategy

 Multitrade: Multi trade basically refers to the stores where electronic payments are
possible. in order to improvise upon our distribution strategies under the multi trade
option we are targeting all the prominent brands such as Aditya Birla Group’s
Lifestyle.
 Controlled outlets: controlled outlets is what McDonald’s follow. At present we have
120 outlets PAN India, out which 80 are present in tier to 2 and 3 cities. The target is
to achieve a figure of 300 in terms of the numbers of outlets present all across India.
For the same we have proposed a Delhi based model in the schematic
representation shown below. The same could be replicated with slight variations
that would definitely depend upon the geographic, demographic, economic and
psychographic conditions of the particular area. We are currently focussing on
opening stores in metropolitan cities.
 Online platforms: we are also trying to focus on the online platform in order to
increase the visibility of the brand in tier 1 cities plus also catering the competition
that is increasing exponentially on the E- Commerce platforms. For example, one of
the major competitor Red Tape’s online revenue generation capacity is 280%.
 Customized outlets: Customize your shoes in 60 minutes.
 Plant

Distribution
centres

controlled- online Customized

Multitrade
owned outlets platforms shoes outlets

Aditya Birla 80 outlets 1. Myntra 5 stores in

group present in each metro
Lifestyle, 2. Flipkart
india. city
other multi 3. Amazon
trade
4. Shop
Clues
8.4 Targeting Tier 1 Cities

Delhi Delhi
Mumbai
Kolkata
Bengaluru
Hyderabad
Chennai

North West East South

Kriti Nagar Janak puri Mayur Vihar Defence colony

Kamala Nagar Patel Nagar Lajpat Nagar

Sakti Nagar Punjabi Bagh Greater Kailash

Model town Rajouri Garden Vasant Kunj

Green park

Saket

North-West West-East East-South South-west

Rohini

Pitampura

Engineering enclave

A similar model can be employed to the other major tier 1 cities.

8.5 CRM

o Rational
 o Order time
o Reduced Uncertainty
o Lead time
o Value chains
o customer Supplier Distributors Retailors

CRM Cost = Rs. 25,00,000 (Budget)

o Demand (Size, Design, Range)

o monthly (10 customers loss) due
o Size
o Design
o Range
o 12 x10 =120 Potential customer
o 120 x Rs. 3000 x 500 =Rs. 18,00,00,000 (loss of sale per year)

8.5.1 Cost of setting up a Skismart Store

Place Initial investment Rent Employees

Tier1 30 lac-50 lakhs 80,000-1,00,000 4 to 10

Tier 2 upto 40 lakhs 50000-80,000 5 to 12

8.6 Promotional Strategy

Since one of the major non- financial objectives of our company is to increase brand
awareness for which promotion plays a major role as it is one of the most powerful tools
which is instrumental in positioning the brand in the minds of the potential consumers. The
total estimated budget allocated for the promotional strategy is INR 9,80,40,000. The
breakup of the allocation is provided through the means of schematic representation.
Discovery, (Sunday You tube (web Billboard,
Net Geo, series, On retail
magazine) print or
Sport commercial
electronic
stores
Traveller ads before the billboard
channels videos and),
magazine
Facebook Metro stations
(feeds)
Bus stands
Make android
or iOS
adventures

8.6.1 Media Promotion

Media Analysis

Internet YouTube
Per view = $ 0.1
Rate in INR = Rs. 7.3
Views= 10,000 per day
Monthly= 2160000
Yearly= 25920000
outdoor Rent= Rs. 30000 to 240000
Targeted cities = 8
Annual rent= 1920000
Television price/week-Rs. 550000
Month= 4950000
annual expense = Rs. 79200000
Magazine/ Newspaper 1600000
Every Sunday in daily

Table 7
8.7 Salesforce Strategy

Rational for salesforce strategy:

 Customers feedback
o Sale personnel are sometimes not able to deal with different set of
customers due to due to lack of understanding of the products or the
detailed specifications.
o Not able to deal with the technology deployed by the company.
 Due to this around 10% customers are lost by stores monthly

Where the average sale of store is Rs.5,00,000, if these were potential customers so we have lost
Rs.50000 monthly

Current outlets 80 (in 2018)

Sales forces (outlets) 4 (in each outlet) x 80= 320 (approx.)
Sale force training budget (estimates) 320 x 10000 = Rs. 32,00,000 (yearly)

Table 8: shows loss of sales yearly

Rs.50000 x 80 Rs. 4000000 (estimated loss in a year)

Loss of sales Rs.6,00,000

Cost of training Rs.4,00,000

Total saving Rs. 2,00,000

Budget Budget of training Rs. 4,00,000
Table 9

9. Financials
9.1 Project profit and Loss statement

Particular Amount (Rs. Crore)

Income
Sales Turnover 270
Excise Duty 2.68
Net Sales 267.32
Other Income -0.28
Stock Adjustments 1.822834431

Total Income 268.8

Expenditure
Raw Materials 26
Power & Fuel Cost 2
Employee Cost 23
Other Manufacturing Expenses 8
Selling and Admin Expenses 1
R&D expenses 20
Miscellaneous Expenses 40
Total Expenses 120
Operating Profit
PBDIT 148.8
Interest (60 CRORE @15%) 9
PBDT 139.8
Depreciation 6.42
Profit Before Tax 133.38
PBT (Post Extra-order Items) 10
Tax 40.014
Reported Net Profit 93.366
9.2 Average Cost Pricing

A. Calculation of B. Calculation of Actual Profit if

planned profit Only

Items are sold 120000 Items are sold 100000

Calculation of costs: Calculation of costs:

Fixed overhead 24000000 Fixed overhead Expense 24000000
Expense
Labour and materials 36000000 Labour and materials 36000000
Total cost 60000000 Total cost 60000000
Planned profit 120000000
Total cost and 180000000
planned profit
Calculation of profit (or loss):
Actual unit sale x 180000000 Actual unit sales x price (below) 150000000
Price
Minus: total cost 60000000 Minus: total cost 60000000
Profit (loss) 120000000 Profit (loss) 90000000

Calculation of
"reasonable"
price
Expected total costs 180000000
and
planned profit
Planned number of 120000
items to
be sold
"Reasonable" price 1500
Table 11
9.3 Cost for classification

Cost for Skismart

Total cost

Operating expenses

Direct labour 2304000

Materials 11,52,0000

Subtotal 13824000

Non-operating Expense

Promotion 32,00,00,000

Product development 2,00,00,000

Customer service 9600000

General & administrative 1000000

Subtotal 33,06,00,000

Total 36,44,24,000

Table 12
Control Factors
Currently overall market share of Skismart is 0.28%and in the organised category it has around
4 % Relative market share. Skismart is targeting towards achieving increasing market share
through increase in sales and enhancing the plant’s overall capacity.
To increase the market share, Skismart is trying to attain new customers and retain existing
customers through the geographical expansion and new products that connects better with
the customers.

There is a strong need to put the strategies under certain set of control factors to monitor the
performance of the segment you are competing in continuously. To do the needful the
particular control factor tool being used is the sales analysis represented below.

Sale analysis

Year Sale (INR crore) Volume

2018 400 3500000
2019 540 4000000

Assumption: Sale growth will be growing continuously in the period and production capacity
also increases to match the demand and sale.
2018
Variance due to price decline (108-105) *2500000=6750000 27%
Variance due to volume decline 108*(250000) = 27000000 63%
View publication stats

ACTIVITY PERFORMED FREQUENCY

Complete performance review

of product from retailors Store manager and sale area
Annually
manager

Carry out survey to determine

the customers satisfaction
survey with product and service Internal Audit As necessary
quality

Diagnose any gap/ shortfall to

identify the causes for such gap
shortfall and recommend
corrective measure Internal Audit As necessary