Warranty – Program

Manager Case Study

Soumya Paik
There are 8 opportunities for Growth

Initiative Sub Category Possible Intervention Key success factors

Improve awareness around the product Targeted marketing at the end period of
Tap into existing market (Marketing intervention) original marketing, targeted ads in different High marketing investments
online marketplaces

  Experiment new pricing plan Bundled offering, Customised warranty plans FG survey, market research and analysis, competitor analysis
with different timelines

Extended Warranty can be purchased at any

  Improve as a product time during current warranty period, Customer ease of choosing the product
different type of warrantys like in-home
service, Loyalty programs

Grow as a overall market Onboarding new sellers Onboarding small scale retailers, extended Onboarding cost should be lower than the reveneu generated from new customers
warranty plans for large scale retailers

  Consolidation of smaller retailers Promoting their materials and covering New retailers onboarded
warranty

Improve the current Sales system and Integration of CRM with Billing and invoice
Improve operational efficiencies integrating all the products with billing system Better target group
system

  Pre-decided fixed prices for all the products Centrally decided plans Better control on products, avoiding any misuse

Training and proper communication of

  Training for all the store-managers incentive plans Training cost
Leading to Incremental growth of 3.5x+ in 5 years

    2021 2022 2023 2024 2025 2026

  Sales 1,20,00,00,000 1,29,60,00,000 1,40,40,00,000 1,52,60,40,000 1,66,45,50,000 1,82,24,27,100
growth at 5% Offline 96,00,00,000 1,00,80,00,000 1,05,84,00,000 1,11,13,20,000 1,16,68,86,000 1,22,52,30,300
growth at 20% Online 24,00,00,000 28,80,00,000 34,56,00,000 41,47,20,000 49,76,64,000 59,71,96,800
               
  Premium Received 9,60,00,000 12,96,00,000 16,84,80,000 21,36,45,600 28,29,73,500 36,44,85,420
  Premium % 8% 10% 12% 14% 17% 20%
               
  COGS 5,76,00,000 7,64,64,000 9,60,33,600 11,75,05,080 14,99,75,955 18,22,42,710
growth at 10% Incentives 96,00,000 1,05,60,000 1,16,16,000 1,27,77,600 1,40,55,360 1,54,60,896
  Cost of onboaring Retailers   2,00,000 4,40,000 7,26,000 7,98,600 8,78,460
  CAC   24,48,000 26,92,800 32,58,288 39,09,946 46,95,193

  IT Infra Cost   1,50,000 1,50,000 20,000 20,000 20,000

               
  Gross Margin 2,88,00,000 3,97,78,000 5,75,47,600 7,93,58,632 11,42,13,639 16,11,88,161
  Gross Margin % 30.0% 30.7% 34.2% 37.1% 40.4% 44.2%
               

  New Retailer Onboarded   100 200 300 300 300

  Cost of onboarding retailers   2,000 2,200 2,420 2,662 2,928

               
  Total Footfall 1,02,00,000 1,02,00,000 1,12,20,000 1,22,40,000 1,33,62,000 1,45,86,000
  New Footfall   10,20,000 10,20,000 11,22,000 12,24,000 13,36,200
  Incremental paying customers 15,30,000 1,53,000 1,53,000 1,68,300 1,83,600 2,00,430

  New insurance purchased 1,22,400 12,240 12,240 13,464 14,688 16,034

  CAC Per User   200 220 242 266 293