Assignment

1. Estimate the revenue (per month) of 2k market in NITT.

Answer:- Assume we have 5000(Students) and 300(Faculty Members).
Now the total Number of Customers 2K Market has = 5300
Assuming each person visits the market once a week, the total weekly visits =
5,300 * 1 = 5,300 visits per week.
Total Revenue per Week = Total Visits per Week * Average Spending per Visit
= 5,300 * 100 INR = 530,000 INR
Total Revenue per Month ≈ 530,000 INR * 4 = 21,20,000 INR
So, the estimated revenue of the 2k market in NITT per month is
approximately 21,20,000 INR.
2. Estimate the volume of iced tea sold at Sona Traders in one
academic year.
Answer:- For this guesstimate we are given with one academic year which
means 2 semesters.
Now after deducting 2 months of vacation from each semester, we are left
with 8 months.
Let’s assume that they don’t open on Sundays so in 1 months they open only
for 26 days or 27 days.
We are assuming that 4 months out of 8 months had 30 days and other 4
months had 31 days.
That’s why we took 26 days and 27 days in above lines.
Now we have 4 months of 26 days = 4*26 = 104 days
And 4 months of 27 days = 4*27 = 108 days.
So, we have a total of 212 days.
Now we will exclude 12 days which includes fests, events, and other things on
which shops doesn’t open.
After excluding above days, we have 200 days.
Now assume that Sona shop opens for 10hrs per day.
And assume that in 1 hr, 20 people come to drink iced tea.
And assume that the volume of iced tea given in glass is 200ml.
So, amount of iced tea consumed per day = 200*200 = 40,000ml.
And amount of iced tea consumed in one academic year = 40,000*200
=80,00,000 ml or 8,000 litres
3. Estimate the number of laptops sold in India in 2023.
Answer:- Total population of Delhi = 20Million.
People buy laptop only when they need.
Based on their age;-
0–18 - 30% = 6Million - we can neglect this section, because they didn’t need
laptop, or they prefer to use others laptop.
19–22 = 10% = 2Millon - this is the college People. Most of the students need
a laptop. 60% own a laptop - 1.2Million
22–50 = 40% = 8Million - work class of society.
let’s divide them into three categories.
1) white collar ( 2Millon)
2) blue collar(4Millon)
3) own business (2Millon)
80% white collar owe a laptop or PC - 1.6Millon.
we can neglect blue collar people.
own business - 0.6Millon.
50–80 = 20% =4Millon - we can ignore this section.
total laptop + PC users = 1.2+1.6+.6=2.4Millon
corporate offices/schools/computer centres generally have PC so let’s assume
60% are PC’s.
Laptops = 40% of 2.4
=0.9Millon.
4. Estimate the number of credit cards used by the urban population in
India.
Answer:- The total population of India is approx 1.4 billion.
The ratio between urban and rural area is 30:70.
The population of urban area is 0.3*1.4 billion = 420 million,
which is approx 400million.

Assuming 4 person per household, the total number of urban households is

400/4 = 100 million households.

Now we will split the household based on income.

Upper class – 10% whose income is >1,00,000.
Middle class – 50% whose income is 50,000 – 90,000.
Lower class – 20% whose income is 20,000 - 50,000.
Below poverty line – 20% whose income is <<10,000.
Now we will find out no. of households in each class.
Upper class = 10% of 100 million = 10 million
Middle class = 50% of 100 million = 50 million
Lower class = 20% of 100 million = 20 million
Below Poverty line = 20% of 100 million = 20 million
Now, every household from upper class will have credit card.
At least 50% of middle-class household will have credit card so 50% of 50
million = 25 million.
At least 10% of lower-class households will have credit card so 10% of 20
million = 2 million.
So, the total number of numbers of credit cards used by the urban population
in India = 10+25+2 =37 million.

Case Study
1. Your client is an Apparel manufacturer seeing a decline in profits.
Identify the reasons and give recommendations. Assume all the required
assumptions and come up with a framework.
Answer:-
Assumptions
1. Potential factors: increased competition, changing consumer
preferences, rising production costs, ineffective marketing.
2. Dynamic market with evolving trends and consumer behaviors.
3. Access to financial data for analysis.
4. Flexibility to make strategic changes and investments.
Framework
1. Market Analysis:
• Evaluate current trends.
• Assess competitors' strategies and positioning.
• Understand changing consumer preferences.
• Determine industry growth rate and potential.
2. Financial Analysis:
• Revenue Analysis: Identifying patterns or fluctuations in revenue trends.
• Cost Analysis: Analysing cost structures like production, raw materials,
labour, overheads.
• Profit Margin Analysis: Evaluating margins and identifying
improvement areas.
3. Operational Analysis:
• Assessing Production Efficiency
• Evaluating Inventory Management
• Reviewing Supply Chain
• Evaluating Quality Control
4. Marketing and Sales Analysis:
• Reviewing marketing strategies, brand positioning, and customer
engagement.
• Assessing performance of various sales channels.
• Gathering customer feedback for understanding satisfaction levels
and improvement areas.
5. Recommendations:
• Product Diversification: Explore market trends and consumer
preferences.
 • Cost Reduction Initiatives: Optimize production processes, negotiate
better supplier terms, and reduce overhead expenses.
• Enhanced Marketing Efforts: Invest in targeted campaigns to
increase brand awareness and attract new customers.
• Focus on Customer Experience: Improve customer service, faster
delivery times, and hassle-free return policies.
• Invest in Technology: Streamline operations, improve inventory
management, and enhance business efficiency.
• Strategic Partnerships: Expand market reach and distribution
channels.
The apparel manufacturer can identify areas for improvement and
implement strategic initiatives to reverse profit decline and achieve
sustainable growth by following this framework, with regular monitoring
and evaluation of performance metrics being crucial for tracking
progress and making necessary adjustments.

2. Your Client, ABC Bikes Ltd, is a Bikes manufacturer and has observed
that their profits have declined over the past 12 months. How can you
help them identify the root cause & recommend next steps? Assume all
the required assumptions and come up with a framework.
Answer:-
Assumptions:
• Access to financial data, sales figures, and operational metrics.
• Potential factors: market dynamics, competitive pressures, operational
inefficiencies, consumer behaviour shifts.
• Flexibility and resources for strategic initiatives.
• External factors: economic conditions, regulatory changes,
technological advancements.
Framework:
1. Financial Analysis:
• Examining profit trends over past 12 months.
• Analysing revenue streams including product category, distribution
channels, and regions.
• Breaking down costs including production, materials, labour, overhead,
and marketing expenses.
• Evaluating profit margins for each product line and overall business.
2. Market Analysis:
• Assessing bicycle industry trends and consumer preferences.
• Understanding shifts in consumer behaviour like e-bike preferences
and sustainability.
• Analysing competitors' strategies, pricing models, product offerings,
and market positioning.
• Assessing market saturation or disruption by new entrants.
3. Operational Analysis:
• Evaluate production efficiency, quality control, and distribution
channels.
• Assess product quality and customer satisfaction.
• Review effectiveness of direct sales, retailers, and online platforms.
• Optimize inventory management by analyzing turnover rates, stock
levels, and carrying costs.
4. Customer Analysis:
• Gathering customer feedback through surveys, reviews, focus groups.
• Evaluating customer acquisition and retention strategies.
• Tailoring marketing and product offerings to key customer segments.
5. Recommendations:
• Invest in research and development for innovative products.
• Enhance marketing efforts for increased brand visibility and
differentiation.
• Identify cost reduction opportunities through process improvements
and supplier contract renegotiating.
• Optimize distribution channels by focusing on high-performing ones.
• Prioritize customer experience initiatives for improved satisfaction and
brand loyalty.
• Explore strategic partnerships for expanded reach and enhanced brand
reputation.
ABC Bikes Ltd can identify the root causes of declining profits using this
framework and develop a strategic plan to revive the business and drive
sustainable growth, with regular monitoring of key performance
indicators to track progress and adjust strategies as needed.