CASEBOOK 2021

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 ConsultU, the consulting club of IIM Udaipur, is excited to
launch the first-ever case book for the IIM Udaipur community.
The book contains frameworks, cases, and guesstimates which
could be used while approaching a case study. The inputs from
our alumni and student community were quite insightful in
shaping the case book.

Foreword The frameworks discussed should not be seen as the only way
to solve the case, one can explore other ways as well to solve a
case.

We are sure that this case book will assist students in

preparing for interviews.

We can be reached at consultu@iimu.ac.in

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 We are grateful to all of the students who shared their insights
and interview experiences with us, allowing us to create the first-
ever casebook that will be useful to the IIM Udaipur community.

We would like to thank the professors of IIM Udaipur and the

Acknowledgement alumni of ConsultU, who assisted us in putting the casebook
together keeping the new advancements in consulting industry.

We would also take this opportunity to thank Professor

Prakash Satyavageeswaran for guiding us throughout the journey
of casebook formulation.

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 VISION: To enhance the knowledge and interests of the students towards the Consulting Culture and its
opportunities.
MISSION:
ConsultU, the Strategy and Consulting Club of IIM Udaipur, aims at supporting the student and inculcating
their interest in Consulting career opportunities via organizing workshops and talks hosted by business
tycoons who have excelled in the field of Consulting. The club organizes case competitions at inter and
intra college levels by coordinating with startups and companies that introduce real-life case studies to
introduce the students to the culture of a consulting firm. The club also provides the students with live
projects appointed by firms in varied domains to implement their learning practically. It also organizes
Case Cracker and Guesstimates workshops to prepare students for the various competitions across
multiple B-Schools and achieve placement goals.
ACTIVITIES:
Live Projects- Through live projects, ConsultU offers students insight into real-world problems various
industrial companies face. While working on live projects, students acquire knowledge that helps them
About ConsultU understand different industries and the competitive environment in which business function. The club
has successfully worked with several reputable companies to execute live analytics, finance,
and marketing projects.

Case Competitions: The best way to improve consulting skills and techniques is to apply them in a
competitive environment. We run contests throughout the year to test the effectiveness of students as
consultants and provide critical feedback on improvement.

Webinar and Speaker Sessions- ConsultU invites industry experts to its summit - Samvadya during Solaris,
the annual management fest of IIM Udaipur who share in-depth knowledge of how to maintain viability,
build resilience, and increase vitality in tough times

Ingenium and Mantravat- These are ConsultU's incredible contests, attended by students from all over
the country. Competencies include one-off decision making, quizzes, case studies, strategies to re-
develop failed products that helped students think outside the box.

Guesstimates and Case Cracking workshops- ConsultU organizes seminars from renowned experts to
introduce students to the various frameworks to crack these case competitions and guesstimates to excel
in the competitions and perform well in placement rounds.

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Contents:
Consulting industry overview...................................................................................................................................................................................................... 8
Career path in consulting............................................................................................................................................................................................................ 9
Types of consulting..................................................................................................................................................................................................................... 10
Interviews: Dos and Don'ts......................................................................................................................................................................................................... 15
How to approach a case interview.............................................................................................................................................................................................. 18
How to approach a guesstimate................................................................................................................................................................................................. 19
Industry analysis
IT industry............................................................................................................................................................................................................................. 21
Manufacturing industry......................................................................................................................................................................................................... 22
FMCG industry....................................................................................................................................................................................................................... 23
Aviation industry.................................................................................................................................................................................................................... 24
Automobile industry.............................................................................................................................................................................................................. 25
Edu-Tech industry.................................................................................................................................................................................................................. 26
OTT industry........................................................................................................................................................................................................................... 27
Banking.................................................................................................................................................................................................................................. 28
Frameworks
McKinsey's 7S Framework....................................................................................................................................................................................................... 30
Balanced Scorecard................................................................................................................................................................................................................. 31
4 Ps Framework....................................................................................................................................................................................................................... 32
Porters Five Force Analysis..................................................................................................................................................................................................... 33
Pestle Analysis......................................................................................................................................................................................................................... 34
Contents:
Frameworks
BCG Growth Share Matrix........................................................................................................................................................................................................ 35
Market Entry Framework........................................................................................................................................................................................................ 36
Profitability Framework........................................................................................................................................................................................................... 38
Growth Strategy Framework.................................................................................................................................................................................................... 40
Cost Management Framework................................................................................................................................................................................................. 42
Framework to streamline a process......................................................................................................................................................................................... 43
General Pricing Framework...................................................................................................................................................................................................... 44
General Strategy to exit a market............................................................................................................................................................................................. 45
General Framework to launch a new product......................................................................................................................................................................... 46
Cases............................................................................................................................................................................................................................................. 47
Guesstimates................................................................................................................................................................................................................................ 54
Consulting Industry
Overview
 A consulting firm comprises industry-specific experts who provide professional
advice, guidance, and workable solutions to companies with problems that they
cannot address internally. Every company inevitably has issues, and in that case,
Consulting firms are hired to solve these problems.
The consulting industry traced its root in the late 19th century when the world's
first modern consulting firms were founded in 1890 by Arthur D. Little.
Consulting had six different areas of functioning namely financial, management,
strategy, operational, personnel, and technology consulting.
Consulting Companies employ consultants to tackle a wide variety of business problems and
offer solutions to their clients. Depending on the size and strategy of the
Company company, these issues can be as simple as exploring a new market, technically
demanding like designing and coding a comprehensive manufacturing control
Overview system, as sensitive as providing outplacement services to the human resources
department, or as demanding as re-think entirely the client's organization and
strategy. There are approximately 10,000 consulting firms in India, including big
and small firms. A survey found that more than 35 percent of the graduates of
the best schools in the United States preferred to join a large consulting firm.
The Consultant is given significant responsibilities at the beginning of the career.
They work with highly talented colleagues, have vast learning opportunities, and
get to trips to big cities. It was found that 80 percent of graduates of India's top
business schools wanted to engage in consulting. Most of them looked for global
opportunities in a study conducted by TCS.

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 Position Responsibility

Generally, they are not involved in the day-to-day activities of the

project; instead, they focus on strategy. Partners oversee the direction
Managing Director and growth of the firm and are accountable for defining innovative
(Partner)) strategies and achieving results.

Senior Manager manages all phases of the project and is accountable

for the timely delivery of the project. They manage and nurture the
talent within their team. They participate in service proposition,
Senior Manager business development work, and thought leadership.

They Work on multiple projects and are responsible for project

Career Path Manager delivery. They are also expected to sell new consulting work.

Senior Consultants are responsible for planning, executing, and

delivering a consulting project. Their tasks include leading teams,
coordinating with all project stakeholders including clients and
partners. They are required to work independently on individual
projects. They provide input to sales, marketing, and leadership
Senior Consultant strategy within the Organization.

Consultants usually own a functional area of a project. They are

responsible for identifying issues, forming hypotheses, and helping
with the implementation of change. They manage more significant
aspects of the problem-solving process and be responsible for
Consultant presenting findings and formulating recommendations.

Associate The Primary Function of an Associate Consultant is to gather, analyze

Consultant and deliver information. Usually, Associates are guided by Managers.
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Types of Consulting
Consulting can be broadly classified into three categories:
• Management Consultants are responsible for working with the businesses to increase their efficiency and performance by delivering
expert solutions to solve problems and increase growth
• They cater to a wide range of industries and sectors to provide consultancy services including strategy, HR, marketing, operations, and
Management finance. Management consultants also review current procedures in place and provider recommendations for improvement
Consulting • The major consulting firms include McKinsey, Bain and Company, Boston Consulting Group, Kearney, PwC, EY, Deloitte, and KPMG, etc

• Independent consultants are responsible for improving operations, developing strategies, and solving complex business problems using
the specialized expertise and skills of retired experts in a particular field
• Generally, independent consultants are non-employees and work on contracts for a duration of time
Independent • Independent consultants help businesses provide solutions to their problems by sharing expert advice in their niche
Consulting

• Pro-bono consultants are experienced consultants who provide consultancy services free of charge to those who require
• The service is mainly provided to solve social issues, aiding some non-profit organization, and for those who can’t normally afford
Pro-bono • This is a great opportunity to manage businesses and work on the strategy to grow businesses and support a cause or help the public
Consulting

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Based on functionality:
Strategy Consulting
• Strategy consultants help provide solutions to problems faced by businesses on high-level decisions, using specialized expertise and industry knowledge
to deliver the best results. It is a subset of Management Consulting and aims at consulting and proving solutions at the highest level of a firm
• Strategic consultants work independently, coordinating between parties. While strategy consultants help to establish the organization’s goals and
deliver the perfect strategy
• Major firms that provide strategy consulting services are the Big Three: McKinsey & Company, Boston Consulting Group, and Bain & Company.
Consulting firms also include the Big Four Professional Services firms - PwC, EY, Deloitte, and KPMG as well as other consulting firms like Capgemini,
Accenture Strategy, etc

IT Consulting
• IT consultants tackle strategic and/or operational objectives, they also help a client in the implementation; they help develop or institute a prototype or
software to counter a specific need, for example, identifying IT vulnerabilities, implementing ERP systems, implementing firewalls, etc
• IT Consultants use their analytical skills to inspect a great amount of information. Using this information, the best solutions are delivered to their
client’s problems
• Top IT Consultancy Firms include Accenture Strategy, Deloitte, IBM, McKinsey and Company, PwC, Bain and Company, Capgemini, Booz Allen Hamilton,
etc

Marketing Consulting
• A marketing consultant is an external advisor who holds expert marketing knowledge and delivers an extensive and wide range of marketing-related
consultancy services
• Inherently, a marketing consultant is considered highly professional, and strategy induced to aid the marketing department to achieve their business
objectives
• Digital marketing consultancy services are chiefly focusing on the betterment of the marketing processes in order to encourage a solid roadmap of
profiteering and marketing ROI
• Top Marketing Consultancy Firms include Deloitte, Bain and Company, Baker HR, Boston Consulting Group, Mercer, etc
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Financial Consulting
• A financial consultant will run an audit of your present financial situation to help you realize your future goals. Financial
consultants work with their clients closely to better understand the situation of their clients financially and how to proceed to
achieve the set target
• Financial advisors based on their education and experience can also help their clients in specialized matters like taxes and
insurance. Financial consultants analyze every little bit of their client's life, including financial amenities like assets, NPAs income,
and expenses, to help clients set an achievable goal. Also, equipped with the power to trade financial goods such as insurance
policies, stocks, and bonds
• Top Financial Services Consultancy Firms includes the Big Three (McKinsey & Company, Boston Consulting Group, and Bain &
Company), Big Fours (PwC, EY, Deloitte, and KPMG), Kearney, Mazars, Alvarez & Marsal, Blackrock Services, etc

Operations Consulting
• An operations consultant is responsible for a business's internal operations, such as manufacturing process, procurement,
logistics, order fulfilment, distribution, and customer service
• Operations consultants examine client’s operations and help improve and streamline their operational performance, distribution,
restructure their departments. They also work to help reduce costs by increasing business efficiency
• Operations consulting also involves solving problems like increasing throughput, increasing productivity, reducing bottlenecks,
outlining the metrics, looking into industry benchmarks, and suggesting recommendations for improving the overall operations of
a client
• Top Operations Consultancy Firms include McKinsey & Company, Boston Consulting Group, and Bain & Company; Big Four
Professional Services firms - PwC, EY, Deloitte, and KPMG; and other consulting firms like Accenture Strategy, Capgemini, etc

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HR Consulting
• Business circles often wonder why companies bring along HR consultants. The answer consists of two reasons. The first is that
some small businesses simply do not have a dedicated HR that can come up with solutions for complex problems. In such
circumstances, the company may turn to guidance outside
• The second reason is that big companies sometimes get an HR consultant from outside for a second opinion, a fresh view. The
hired consultant can then just simply focus on the task at hand and be free of internal politics
• The Human Resources consulting services include services like Recruitment & Selection, Performance management, Learning &
Development, Succession Planning, Compensation and benefits, Human Resources Information Systems, and HR data and
analytics. Top HR Consultancy Firms include Deloitte, Bain and Company, Baker HR, Boston Consulting Group, Mercer, etc

Legal and Compliance

• A legal consultant, as the name suggests is a professional who provides you legal guidance for your business as well as individuals.
The most common fields where they are required are business law, real estate, foreign affairs, and financial law
• Clients hire legal consultants to ensure that they are making decisions for their businesses within the law. The biggest point of
difference between a legal consultant and a lawyer is that the legal consultant only acts as an advisor, while the lawyer also
represents you in a court of law
• A compliance consultant is a person in charge of helping the management of a company to ensure that all agency resources
confirm company policies and procedures. The compliance consultant takes responsibility for developing and altering all
compliance guidelines and procedures
• Top Legal and Compliance Consultancy Firms include the Big Three (McKinsey & Company, Boston Consulting Group, and Bain &
Company), Big Fours (PwC, EY, Deloitte, and KPMG), Alvarez & Marsal

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Some interview Do's
and Don'ts
 Do's

Always be confident in expressing yourself, verbally and visually. Being yourself is the key to it.

From the first answer, try to include interesting avenues such that the interviewer asks you questions based on that. This will
help you drive the interview.

Give structured answers using STAR framework for HR questions and other business frameworks (Profitability framework, Value
chain analysis, BCG matrix, SWOT, etc.) for case-related questions.

Make sure to keep the interview as interactive as possible and ask relevant questions.

Be calm in any circumstance and understand the question before answering the question, many a time, one may tend to lose
his grip under pressure and deviate from the question asked.

Play on your strong points, and in case you are faced with questions you do not know. Be honest, let the interviewer know that
you don’t know the answer, and ensure your willingness to learn.

Research thoroughly about the company you are interviewing with. This shows that you put a lot of effort and conveyed your
zeal to get the job.

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 Don'ts

Being defensive when the interviewer has contradictory opinions on your answers: This will portray you as someone with a
narrow mind.

Giving an unprepared interview and not being thorough with one’s resume: Unpreparedness is never the desired trait and not
what the interviewer is looking for.

Faking CV points and not providing justifications to the follow-up questions on your resume: This will portray you as
a fraudulent person.

Sticking to the frameworks and not thinking out of the box.

Cutting the interviewer while he/she is talking.

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 How to approach a case interview?
What's a case interview:
A case interview is simply a short version of a consulting project or a problem. In these interviews, the interviewee should take control from
the get-go and produce a potential solution for the given problem case. They may achieve this by navigating the given facts and/or by
requesting more information via appropriate questions.
Format: In most cases, the interview would last for about 20-25 minutes. Following are the major stages of the interview

Rendering Questions Framework Analysis Brainstorming Conclusion

• Prompt: The • Once a certain • Mostly the process • Post analysis, one • Summary: Once
problem statement level of comfort of solving a given could be asked to again, go over the
will be laid out and has been case would require brainstorm a few facts discussed till
possibly some established with some basic more parameters now
background the context of the calculations. Even related to the case • Synthesis: If the
information might given case guesstimates hence one must opportunity
be along with it problem, one may might be required stay prepared for allows, one may
• Clarifying take upto 90 depending upon that as well provide additional
Questions: These seconds to the context. Before takeaways and
questions are formulate a concluding any insights after a
asked by the structure for the insights, one must quick summary
interviewee to approach they ask relevant • It's a good idea to
filter out the noise wish to use while questions and suggest a plan of
and get to the crux navigating to a cross check with action for the
of the context. One possible the interviewer if proposed
must avoid getting solution(s). For a their analysis is recommendation
into too much better moving towards for the given case
detail at this point understanding, the right direction
kindly refer to the
Frameworks
section
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 How to approach a guesstimate interview?
What's a guesstimate interview:
In guesstimate interview, candidates are asked to estimate a number based on limited context and information

Approach(s) to solve a guesstimate:

Based on the problem statement, you either take a top-down or a bottom-up approach to solve these problems:

Top-Down (Start Big) Approach: Bottom-Up (Start Small) Approach:

• In this approach we pick a starting point and then • In this approach we start with a specific segment
narrow down our assumptions and calculations and estimate the calculations for that segment.
based upon certain filters, to reach our potential Then we scale up this assumption to represent the
subset. whole concerned segment. This approach
• For example, to estimate the number of hospitals is most commonly used you’re starting off with
in India, the total population can be used as some constraints.
a starting point • For example, to estimate the number of people at
an airport, start with finding the number of
runways or waiting gates and see if any of these is
the binding constraint

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Industry Analysis
 IT Industry
Overview of industry Market trends Market Size
•India is the world's most popular sourcing destination, with a market share of around • Leading Indian IT companies •By 2025, the Indian software product sector is anticipated
55 percent of the US$ 200-250 billion global services sourcing industry in 2019-20 such as Infosys, Wipro, TCS, and to be worth $100 billion
Tech Mahindra are expanding
•In 2020, the IT industry attributed for 8% of India's GDP. The Indian IT industry's their products and •IT spending in India is expected to reach US$ 93 billion in
demonstrating cutting-edge 2021 (7.3 percent YoY growth) and US$ 98.5 billion in 2022,
exports are expected to increase by 1.9 percent in FY21, reaching US$ 150
blockchain and artificial according to Gartner forecasts. As of FY21, India's BPM
billion. 138,000 new hires were made in the IT industry in 2020.The increment in
intelligence concepts to clients sector employs about 1.4 million individuals, with IT and
disposable income of rural households coupled with lower penetration in the rural through innovation centers BPM combined employing over 4.5 million people
areas opens up opportunities for growth • The key competencies and
characteristics of Indian IT have
attracted substantial
investment from major
Impact due to Covid-19
countries. Between April 2000 With the work from home, the industry recovered and many
Major players in Industry and March 2021, India's companies performed better than pre covid era. IT has
computer software and become the most prominent internal function in the
hardware business attracted a aftermath of COVID-19, with business and other functions
total of US$ 71.05 billion in expecting IT services and support like never before
foreign direct investment (FDI)

Trending Technologies

Artificial
Robotic Virtual
Intelligenc Internet of
Process Edge Quantum Reality and Cyber
e (AI) and Blockchain Things 5G
Automatio Computing Computing Augmente Security
Machine (IoT)
n (RPA) d Reality
Learning

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 Manufacturing Industry
Overview of industry Major players in Industry Market ROIC
•The manufacturing sector in India currently contributes around 16-17% to the Gross Domestic As per a McKinsey report, some companies and sectors
Product (GDP) 1.Maruti Suzuki - Maruti Suzuki is
in the Indian manufacturing industry have generated
India’s biggest car manufacturer
•This sector employs around 12% of India’s workforce and has a market share of 51%
high returns on invested capital (ROIC). However, most
of the companies have not generated returns
•The manufacturing sector is of strategic importance considering the Make in India Initiative (MII), commensurate with their ROIC
2.UltraTech Cement - UltraTech is
which emphasizes on increasing the contribution of the manufacturing sector to 25% of India’s
India’s leading cement
GDP
manufacturer and holds a market
•The MII campaign has played a pivotal role in steering India towards a new level of economic share of approximately 33%
growth Market capital
3.JSW - JSW is one of the leading
•The MII initiative has laid out before the companies an opportunity for investments and integrated steel manufacturers The market size of the Manufacturing Sector in India as
opportunities by virtue of partnerships, collaborations or joint ventures, R&D, manufacturing, per the Gross Value Added at the current price is USD
distributorship, financing and insurance or local support 348.53 billion (as per the second Advanced Estimate)
•The sector is fueled by robust domestic demand, a burgeoning middle class, a young population,
and a high return on investment
•As per the 2021 Cushman & Wakefield’s World Manufacturing Danger Index, India has surpassed
the United States to become the world’s second most desired manufacturing destination Timeline of Industry Market Trends
Impact due to covid-19 •The manufacturing sector in India has •The IHS Market India Manufacturing
witnessed multiple phases of development Purchase Manager’s Index (PMI) fell to
•The manufacturing sector in India came to a near standstill due to COVID-19 55.4 in March 2021, compared to 57.5
•Restrictions imposed in order to curtail the spread of COVOD-19 led to a rapid deceleration in •Post-Independence in 1947, the sector has in February 2021
the manufacturing sector focused on building the industrial foundation in •There was a slight uptick in the PMIN in
•According to a survey conducted by United Nations Industrial Development Organization
the 1950s and early 1960s, the license-permit April when it moved to 55.5. However,
(UNIDO), manufacturing in India almost got ceased following the lockdown.
Raj between 1965 to 1980 the threat from COVID 19 still looms
•The industries worst affected include metals, chemical products, textiles and automobile
•As the country was reeling under the second wave of COVID 19, large amounts of oxygen had to •The share of the manufacturing sector
be diverted from industrial units to hospitals to cater to the high demand. •There was a phase of liberalization of the in India’s total Gross Value Added (GVA)
•This in turn affected the manufacturing sectors like steel, cement, and mining that were already 1990s and towards the current phase of global fell from 17.5% in Q1 of 2019-20 to
in bad shape competitiveness 13.8% in Q1 of 2020-21
•Maruti Suzuki also shut down its units in Haryana to cater to the medical requirements of oxygen

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 FMCG Industry
Overview of industry Impact due to Covid-19 Major players in Industry Market trends
•FMCG sector is India’s 4th largest sector •The pandemic wreaked • The FMCG industry in India is expected to grow at
1. Emami - Portfolio of more
•Household and personal care form 50% of this sector havoc across all business ~15% and reach $ 220 billion by 2025
than 300 products that are
•50% of the FMCG sector’s revenues come from the sectors. However, post June
based on ayurvedic
urban segment of 2020, the FMCG sector • The Indian Govement has allowed 100% Foreign
formulations
recorded stable cash flows Direct Investment in food processing and single-
•In the recent past, there has been a higher growth in •During the pandemic, the brand retail
2. ITC - It offers packaged
rural India when compared to urban India, owing to the FMCG firms partnered with
foods, personal care
increase in rural consumption e-commerce platforms like • As a result, there was an FDI inflow of USD 16.28
products, educational and
Grofers, BigBasket, etc to billion during April-March 2020
stationery product, and
•Growth has primarily been driven by rising awareness, cater to the customers’
tobacco products
easier access, and evolving lifestyles requirements • Production Linked Incentive Scheme (PLI) of the
•The industry has shown government is an opportunity to boost exports
3. Dabur - Product range
•The increment in disposable income of rural resilience in the face of
includes natural healthcare
households coupled with lower penetration in the rural adversity by coming up with
products such as Vatika for
areas opens up opportunities for growth innovative options such as Future Scope
personal care, Hajmola for
ready-to-eat meals
digestives, Real for fruit •With the vaccination drive in full swing in the country,
juices and beverages, and consumer sentiment is picking up
Timeline of Industry Fem for fairness bleaches •According to Nielsen India, the industry showed a
•1950-1980 : limited investment in the FMCG sector. Characterised by low purchasing and skin care products growth of 1.6% in Quarter 3 of FY20, with respect to
power of people. Indian government’s focus was on local shops and retailers FY19
•1950s-1980s : not very high growth in the sector due to low purchasing power of Indians •The industry recorded a 36.9% value-based growth in
Market Capital
coupled with government’s push for small scale sectors. HUL and Amul major companies April-June quarter of 2021, according to data analytics
present •The Indian FMCG sector is firm Nielsen
•1980-1990 : demand for more variety of products propelled the FMCG industry projected to become a $ 220 •In order to circumvent the problem of plausible supply
•Post 1991 : FMCG industry drew inspiration from international companies, leading the Billion industry by 2025 chain disruptions, retailers are demonstrating optimistic
government to incentivise foreign FMCG companies to enter the Indian market stocking behavior
•The present day FMCG industry has largely benefitted from the changing lifestyles. •The industry is expected to •Retail space has become highly competitive and
Conducive government policies such as farm loan waivers, Direct Benefit Transfer (DBT), grow at ~15% CAGR manufacturers have to constantly review the variants
and development of infrastructure in rural areas have led to an increment in incomes of they need to offer
people, thereby having a positive impact on the demand for FMCG products
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 Aviation Industry
Overview of industry Market trends Major players in Industry
• India is the 7th largest civil aviation market in the world and is on the way to The following are six major trends influencing strategy Top Companies in Indian
become the world’s 3rd largest by the year 2024 formulation and implementation across the sector Aviation Industry in 2020
today: 1. Indigo
• In the financial year ended March 31, 2020, airports in India had pegged the
domestic and international passenger traffic at 105.2 and 101.1 million, respectively • Increase in passenger volumes and cargo demands 2. SpiceJet
3. Jet Airways
• In April 2021, passenger traffic (international and domestic) stood at 16.92 million • Increased rate of capacity additions to existing 4. Air India
infrastructure 5. Air Asia India
• India is planning to open 100 additional airports by the year 2024
• Improvement in operational metrics 6. Vistara
• As of July 2019, the total fleet size of scheduled Indian airlines is around 643 7. GoAir
airplanes. This fleet size is expected to grow to over 1,100 by 2027 • Revenues driven as a result of high load factors
• Intensified competition due to low-cost carriers

Market capital Impact due to covid-19 Key performance indicators

• The Indian Civil Aviation MRO market is expected to reach a total of $4.33 billion by • In 2020, industry revenues totalled $328 billion, • Arrival Punctuality- The percentage of
2025 at a robust CAGR of 15.% around 40 percent of 2019. In nominal terms, flights that arrive on-time at the planned
that’s the same as in the year 2000 destination airport concerning all
• Approximately 100 mn passengers rode the Indian domestic airways in 2016 (US -
• The sector is expected to be shrunken for years operated flights
719 mn and China - 436 mn). Air cargo accounted for an estimated 4.6 billion tons to come; projection is, traffic won’t return to • Seat Load Factor- The percentage of
during the same year 2019 levels before 2024 checked-in passengers in relation to an
• Indian domestic travel market was the fastest growing travel market for 22nd month • Apart from financial woes, hygiene and safety aircraft’s available seats
in a row, clocking in a 26.6% yoy growth as of Jan 2017. In comparison, international standards will be become more stringent, and • Delay Reasons – Reasons for delay is an
digitalization will continue to transform the important performance indicator. It
was 7.7% travel experience of the travellers shows the overall health of operations.
• Domestic air traffic is expected to grow at 25% and cross 170 mn • Unlike the 2008 global financial crisis, which was • Regularity- The regularity KPI reflects the
• CAPA estimates India’s airlines reported a combined profit of USD 122mn in FY 2016 purely economic and weakened spending percentage of operated flights compared
• Emergence of low-cost airlines resulted in increase in first time travellers power, COVID-19 has changed consumer to planned flights. In short, The KPI tells
behaviour ,and the airline sector, irrevocably you how many flights an airline cancelled.
• This has led to a boom in national economy when it comes to sectors like Tourism

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 Automobile Industry
Overview Market Capital Major Players in the Industry Changes in the industry due to
• India’s automobile industry is the 5th • Automobile export reached 4.77mn 1. Maruti Suzuki
Covid
largest automobile industry in the world vehicles in 2020, growing at a CAGR of a) Maruti Suzuki was the market leader
• India was the world’s 5th largest 6.94% during 2016-17 with a market share of 21.60 % in • According to the SIAM (society of
manufacturer of cars and 7th largest • Two wheelers accounted for 73.9% of FY2021 Indian Automobile manufacturers), the
manufacturer of commercial vehicles in the vehicles exported, followed by b) The market share of Maruti Suzuki was sector registered negative growth in
2019 passenger vehicles accounting to 24.87 % in FY2020 sales of all vehicle categories in 2020-
• Indian automotive industry is expected to 14.2%, three wheelers to 10.5% and 21
reach Rs. 16-18 trillion by the end of 2026 commercial vehicles to 1.3% 2. Hyundai • The sector experienced a 2.24%
• The Indian automotive industry attracted • The Indian Electric Vehicle Market was a) Hyundai Motor was no. 2 with decline in sales of passenger vehicles,
FDI worth $ 25.85 billion between April valued at $5 billion in 2020, and it is 2,14,167 UVs sold in FY2021 & market 13.19% decline in sales of two-
2000 and March 2021 accounting for 5% expected to reach $47 billion by 2026, share of 20.19 % wheelers, 20.77% decline in sales of
of the total FDI registering a CAGR of above 44% b) The market share of Hyundai Motor commercial vehicles
during the period of 2021-26 was 18.69 % in FY2020

3. Kia Motors Timeline of industry

Market Trends a) Kia Motor was no. 3 with 1,55,686 UVs
Indian automotive market demand, • The seeds of automobile industry were
sold in FY2021 & market share of 14.68
• Ola and Uber created a new market for by passenger vehicles (2016-17) sown after the advent of gasoline
%
engine in the 1870s
automobile in India 4 b) The market share of Hyundai Motor
• Steam powered engine was adopted
was 8.98% in FY2020
• BS6 emission standard mandate came 3 after 1900
c) Kia Motor achieved a year-on-year
• By the end of World War 1, ford
• The market is expected to grow in the 2
growth of 83 %
dominated the automotive scenario
future and the development is driven by with its models
1 KPI's (Key Performance Indicators) • 1913 – Automobile Assembly Line
after-effects of Covid-19 as more and • 1939 – Automatic Transmission
0 • Customer Satisfaction
more people prefer their own vehicle • Internal Process Quality • 1970s – Airbags
2027
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026

• Employee Satisfaction • 1990s – Hybrids, introduction of

instead of a using public transport electric motors in cars
• Financial Performance Index
Total Production (millon)
25
 Edu-Tech Industry
Overview Market Capital Changes in the industry due to KPI's (Key Performance
• Edu-Tech Industry is the fastest growing • Edu-Tech Industry had a USD
Covid Indicators)
industries during corona period and expected to 74.64 billion market • Over 1.2 billion children are out of the • The number of active users
continue the similar pace capitalization in 2019 and is classroom and attending online classes, • Gross margin
• The Edu-Tech industry has played a significant approximated to witness a globally • Burn rate
role in making the education process more CAGR of 19.9% over the next • Online learning has been known to • Conversion rate
engaging, efficient, and effective by the use of 7 years increase a person's retention of • Customer Lifetime Value
modern graphs and visuals • India's Edu-Tech Industry information, and it's believed that the
• As per a joint report by B.A.R.C. India and currently has a market coronavirus has caused these changes
Nielsen, there was a 30% increase in the screen valuation of roughly USD 2.8 • Time spent on Edu-tech platforms has
time on education applications on smartphones billion and is predicted to increased substantially
since the lockdown become USD 30 billion in size • A complete shift from offline tuitions to
• Since the lockdown, Byju' has added over 33 in the next 10-15 years Edu-tech platform due to pandemic
million users to its platform to touch the 75
million mark, while Unacademy's user base had
tripled to 40 million users by January 2021 Major Players in the Industry
• As per a LinkedIn study, time-spent by Timeline of the Industry
professionals on online learning platforms shot Byju’s
• The history of Edu-tech in
up by 63% during the lockdown • As of March 2019, byju’s was the world's most valued EdTech company at USD 5.4
India is not very long. India's
billion, with 35 million students and 2.4 million memberships.
first Edu-tech company,
Market Trends • Some subsidiaries are WhiteHat Jr. and SPAN Thoughtworks Pvt. Ltd
Udemy, was established in
2009
• Covid-19 has accelerated the growth rate of Unacademy
Edu-tech companies by multiple folds. We • Features around 2400+ courses on its website, good amount of of which are free
• Byju's was the next to follow
have seen multiple folds of investments in • Unacademy received $110M in funding in Feb 2020 from multiple investors
in 2011
almost all the Edu-tech companies
• The grade-obsessed Indian market has seen a Vedantu
• Vedantu as well was
very high jump in the number of users • The user base of 25 million users every month from 1,000+ cities and over 40+
established in 2011
• The number of active users doubled between countries access Vedantu's free content
FY-19 and FY-20 • In July 2020, Vedantu raised more than 200 million dollars in funding

26
 OTT Industry
Overview Key Factors Driving the industry Changes in the industry due to Covid Major Players in the Market
With the closure of cinema halls Amid the nationwide lockdown due to the
•India has the world's second-highest
and multiplexes due to the COVID- ongoing coronavirus (COVID-19) pandemic, OTT
per capita consumption of online video
19-induced lockdown since March, platforms in the country have witnessed a
•India has the world's second-highest
OTT revenues have topped box substantial surge in terms of content
per capita consumption of online
office revenues. consumption and subscriber count, and hence are
video. At INR 18.5/GB (2015 -
striving to meet viewers' swelling appetite for
INR313/GB), this is the world's
As internet-connected gadgets, entertainment. The average time spent by a
cheapest mobile data plan
such as new smartphones and subscriber on an OTT platform has increased from
•Rural internet penetration is
linked TVs, expand, OTT video about 20 minutes to at least one hour during
increasing. The number of smartphone
growth is coming from both inside recent times. It is estimated that an user spent at
users in India is rapidly increasing
and outside the home. Revenue will least 32% more time watching original series on
•Smartphones with cheap data have
be driven mostly by subscription various OTT platforms during the March 20th
also brought the vibrant native speaker
VOD, which will grow at a 30.7 2020-April 3rd 2020 period as compared with the
base of 22 scheduled Indian languages
percent CAGR from US$708 million January 13th 2020-February 2nd 2020 period.
from Tier 2, 3, 4, and 5 cities online,
in 2019 to US$2.7 billion in 2024.
creating a massive opportunity.

Timeline of the Industry

•BigFlix, which was launched by Reliance Entertainment in 2008, was the first Market Capital
Indian OTT platform. When Ditto TV (Zee) and Sony Liv were launched in 2013,
OTT gained traction in India

•In the year 2015, Disney Hotstar was launched. It is also one of India's most
popular OTT platforms. It has almost 300 million active users as of July 2020. In
the year 2016, Netflix launched its operations in India (January). It is one of the
most well-known and well-known players in the worldwide OTT market. In
India, Netflix confronts intense competition from players like as Amazon Prime,
Disney+Hotstar, and others
27
 Banking Industry
Overview Impact of Covid Pestel Analysis
• The Indian banking system is composed • The COVID-19 has been hailed as the
Political Economical Technological
of various public and private banks, as black swan event of the century, having
well as various regional rural banks, significant macroeconomic impact on • Government and RBI • The banking sector • The latest technological
urban cooperative banks, and rural both India and the world policies impact the banking and the economy are advances have enabled
cooperative banks • In mature markets, the low interest rate sector closely related; when banks to move away
• Asset of public sector banks stood at scenario and the significant impact of inflation skyrockets, from branch banking to
Rs. 107.83 lakh crore in Fiscal year COVID-19 are reducing bank profitability • Various policies are
the bank takes a hit online banking
2020 • One immediate impact of the health formulated by the RBI
• The Union budget • Online banking has
• Total credit extended by banks grew at emergency on the real global economy is based on the current
has an enormous emerged without the
a robust rate of 3.57% during the year the increase in credit risk for banks' situation of the country to
impact on the need for physical
ended December 31, 2016 corporate and retail clients better manage the banks
banking sector presence
• As of June 04, 2021, bank credit and • In response to the contraction in
deposits totaled Rs. 108.34 trillion (US$ economic activity, banks have increased
1.48 trillion) and Rs. 151.67 trillion loan loss provisions as a result of the
(US$ 2.08 trillion), respectively contraction in economic activity
Socio-cultural Environmental
Some recent industry developments • Digital banking has reduced
• Social and cultural factors,
such as buying behaviors the need to drive directly
• Indian banks are implementing Real Time Gross Settlement (RTGS) and National to a branch to handle
and necessities, influence
Electronic Fund Transfer (NEFT) for fund transfers affairs
how people perceive and
• SEBI has added the NEFT & RTGS payment systems to the existing list of methods
use banking options
available to companies for paying dividends & other cash benefits to their shareholders • Usage of paper has
• Overall literacy and
& investors decreased, therefore
financial awareness
• As a result of the growing digital footprint in the Indian banking sector, digital influence reducing the individual
function as a contextual
has been growing faster environmental footprint
setting
• In response to the RBI's cautionary message, the Digital Lenders' Association in
December 2020 issued a revised code of conduct for digital lending
• In order to prevent money laundering activities, all banks are required to implement a
comprehensive policy framework under the Know Your Customer (KYC) Standards
28
FRAMEWORKS
 Mckinsey’s 7S Framework
• The McKinsey 7S Model refers to a tool that analyzes a company’s “organizational design.” The goal of the model is to
Objective depict how effectiveness can be achieved in an organization through the interactions of seven key elements – Structure,
Strategy, Skill, System, Shared Values, Style, and Staff

• Review the effectiveness of an organization in its marketing operations

Application • Determine how to best realign an organization to support a new strategic direction
• Assess the changes needed to support digital transformation of an organization

1. Structure: The organizational chart of a corporation is defined by its structure, which includes the chain of
command and responsibility links.

2. Strategy: A well-crafted business plan that allows a company to establish a plan of action to attain a sustained
competitive advantage, supported by the organization's mission and values, is referred to as strategy.

3. Systems: The business and technical architecture of a corporation that establishes workflows and the chain of
decision-making is referred to as systems.

4. Skills: Skills form the capabilities and competencies of a company that enables its employees to achieve its
objectives.

5. Style: Senior employees' attitudes in a firm build a code of behavior through their interactions and symbolic
decision-making, which shapes the management style of the company's leaders.

6. Staff: Employees are involved in talent management and all human resource decisions pertaining to
the organization, such as training, recruiting, and reward systems.

7. Shared Values: Every organization's mission, objectives, and values are its basis, and they play a critical role in
aligning all vital parts in order to sustain an effective organizational design.
30
 Balanced Scorecard
• A balanced scorecard is a strategy performance management tool — a well-structured report that managers may use to track the execution of
Objective tasks by personnel under their control, as well as the implications of those actions

• BSC enables businesses to consolidate information and data into a single report rather than dealing with multiple tools
Application • Scorecards provide management with valuable insight into their company's service and quality, as well as its financial performance
• It assists businesses in reducing their reliance on inefficiencies in their processes

Balanced Scorecard Perspectives

• How should • How do our
we appear to customers
our perceive us
shareholders

Financial Customer
Perspective Perspective

Internal Learning/G
Process rowth
Perspective Perspective
• At what • What should
processes we learn to
should we grow and
excel prosper 31
 4 Ps Framework
• The 4P Matrix is based on the idea that marketing decisions are usually divided into four categories: product, place,
Objective pricing, and promotion. The best reaction from your target market will come from carefully positioning your goods in each
category

• Companies utilise the 4 Ps to figure out what their customers want from them, how their product or service fulfils or fails
Application to satisfy those demands, how their product or service is viewed in the world, how they differentiate themselves from
their competitors, and how they engage with their customers

The 4 Ps of Marketing
Product Price Promotion Place
• The product is either • Product's price is exactly • Promotion describes how a • Product's location refers to
tangible goods or an what it costs. Buyers want company communicates where it can be found by
intangible service that to spend as little as feasible, with its customers and potential buyers. It's where
meets the needs or and sellers want to charge establishes market norms you'll distribute your goods
requirements of a specific as much as possible. The that apply to all sales, not or service, whether it's
customer. The products are product's pricing is a just to end-users through a physical site or an
created in accordance with compromise between the internet store, from the
the requirements, needs, desires of the sellers and marketer's standpoint
and interests of the time the desires of the
customers

32
 Porters Five Force Analysis
Objective • Porter's Five Forces is a strategy for determining an industry's vulnerabilities and strengths by identifying and analyzing
five competitive forces that define every business

• Helps determine whether or not a business can be profitable in relation to other businesses in the industry
Application

Understanding Porter's Five Forces

Bargaining Power of Bargaining Power of Threat of New
Competitive Rivalry Threat of Substitutes
Suppliers Customers Entrants

• This force investigates • This force examines how • This force investigates • This force takes into • This force investigates
the level of much influence a consumer power and account how simple or how easy it is for
competitiveness in the company's supplier has how it affects pricing and difficult it is for customers to switch from
marketplace. It takes into and how much control it quality. When there are competitors to enter the one company's product
account the number of has over the company's fewer consumers, they market. The easier it is or service to another
existing competitors as capacity to raise prices, have more power, but for a new competitor to
well as what each one lowering profitability when there are many break into a market, the
can provide sellers, it is easy for more likely it is that an
consumers to switch existing company's
market share will be
reduced

33
 Pestle Analysis
• Broad fact finding activity
Objective • It aids a company in identifying external influences that may have an impact on internal decisions

• External factors are those that are beyond the company's control, and variables such as PESTLE must be analysed in
Application order to develop the organization's strategy

External Environmental Factors (PESTLE)

Political Economic Social Technological Legal Environmental
• All these variables • Economic variables • The areas that • New technologies • It has something to • Weather and
have to do with have a big impact involve the result in new goods do with the legal temperature have an
how and to what on how a company population's shared and processes, context in which impact on numerous
extent the conducts business beliefs and which have an you operate. industries, including
government as well as its attitudes are known impact on • Changes in the agriculture, tourism,
intervenes in the profitability. as socio-cultural technological legislation that may and insurance
economy or in a • Economic growth, aspects progress have an impact on
particular business. interest rates, and your behaviour,
Basically, this is other factors are such as
where all of the among them employment laws
government's
affects on your
business are
grouped

34
 BCG Growth Share Matrix
Objective • The Growth Share Matrix is a portfolio management framework that helps companies decide how to manage their different
businesses by degree of profitability

Application • To identify which products (or brands/units) a company should invest further in, and which products it diversify away from.

Decision Matrix
Low Growth, High Share
• Companies should milk these “cash cows” for cash to reinvest.
Market Growth Rate

Question Mark Stars

High Growth, High Share
• Companies should significantly invest in these “stars” as they have high
future potential.

High Growth, Low Share

Dogs Pet
• Companies should invest in or discard these “question marks,” depending
on their chances of becoming stars.

Relative Market Share Low Share, Low Growth

• Companies should liquidate, divest, or reposition these “pets.
35
 Market Entry Framework
• A company is entering a new market. Our goal is to recommend whether or not they should enter it.
Objective • Mode of entry of the company and the best

• New product launches in to new market

Application • Used to evaluate and decide whether a client company should enter a particular market

Decision Matrix
Internal Factors External Factors Situation Factors Other Factors
• Revenue Assessment – Look into • Industry Analysis – Growth in the • Government stability of the new • Classification :
current revenue streams, trend, industry, barriers to entry, capital market selected • Market Development
product mix, Which customers requirements, government • Motivation behind the entry
policies, access to raw materials, • Product Development -
will pay the most, pricing • Synergies or improvements that
access to distribution channels • Diversification
• Cost Assessment – How much help in our current model
• Competition Analysis – Who are • Option to enter
money need to be invested and • Timeline and target for
how will be the ongoing cost the competition, what share • Start from scratch
they hold, substitutes available, profitability
structure going to be • Acquisition
which country to enter • Risk of investments – Profile the
• Organization Assessment – • Joint venture
• Market Analysis – Size / Growth risk in each segments to decide
Synergies in the product, upon the Market Entry strategy • Alternatives
suppliers needed, Team of market, customer segments • Greenfield
and their preferences • Financial risk
management, Distribution and • Franchise
sales plan • Technology risk
• People risk • M&A
• Joint Venture

36
Barriers to entry Strategic Goals
• High capital requirements
• Economies of scale • Short term synergies with existing operations
• Distribution network • Long term - Create barriers for entry/exit
• Government regulation • Long term - Create customer lock in

Competition Brand Equity

• Market share distribution • Economies of scale
• Fragmented market • Market share gains
• Channels used by supplier / Distibution • Patents and Intellectual property rights
Market
entry fulfils goals Financial Goals
Buyer (Relative competitive
• Growth in Revenue/Profit
• Distributor channel preference Positioning)
• IRR exceed cost of capital Strategic Goals
• Price sensitivity in the market
• Breakeven achieved
• Substitutes
• Achieve other • Competitive advantage
• Growth segment
• Cost benefit
• Demand supply gap Market Attractiveness
• Synergy
(Fundamental Attractiveness)
• Parameters : Geography, Diversification,
Value chain Vertical integration, Competitions

• Threat of backward integration

• Switching cost of buyers and suppliers
Financial Goals
Define market entry Goals / Motives
• Short term impacts
• Long term impacts
• Parameters : Revenue, profit, IRR, Need for
capital
Market entry is successful if objective of all the hierarchy is achieved. Move from base pyramid to top.
For solving case, analyse the Fundamental Attractiveness and relative competitive positioning. If we have good ROI from investment after analysis,
company can proceed with market entry.
37
 Profitability Framework
• Analysing the revenue side, cost side or both to Identify the key revenue and cost head and isolate the problems area
Objective • What is the best mix of Volume, Profit and Cost

• To evaluate how can a company increase the profitability

Application

Decision Matrix
Internal Factors External Factors Situation Factors Other Factors
• Components of revenue – The • Market – Current market • Drop in Revenue • Expected trade off between
product mix broken down to size/share/ growth • Focus on market and volume and price
Price, Volume and cost for • Customer segmentation, need distribution side • Niche Markets – Can we sell
analysis and trends • Increases in cost items to these customers, do we
• Components of cost – Broken • Distribution channel • Focus on COGS, Production, have the skills to do that
down to Variable cost and fixed • Elasticity – Share change in Marketing, Research and • Outsource options available to
cost response to the price / volume Development, SG&A reduce the fixed/Variable cost,
• VC – Direct Labour + material changes • Drop in Profit, but increase in R Increase the operation efficiency
cost • Competition in the field and how • Are there ways to reduce the
• Changes in cost, Prices?
• FC- PPE + LT liabilities + other do they operate cost – Contracts , replacing
• Product mix
assets + R&D • Industry trends equipment, technology
• Change in customer needs advancement
• Volume – Reasons for change • Optimizing the distribution /
• Price – Risk of price change and Supplier channels
how have price changed
overtime?
38
 Profit
Profit

Cost Revenue

Approach 1 Approach 2 Average Price Volume

Fixed Cost Variable Cost Value Chain Analysis Product mix Cost of Mfg Market Size Market Share

• Under Fixed cost analyse Cost incurred at each node of • Analyse whether the • If the market size is shrinking, it is a
heads like, supply chain can be analysed to prices of all products of problem for whole industry.
• Depreciation/Amortizat see where we can make the the company is increased • Demand side – Look for
ion cost optimisation / reduction in cost changes In customer
or the problem is with a
preference, Product
• Capacity utilisation • Warehouse and single product obsolescence, new alternative
• Cost of raising capital Inventory • Analyse the price of raw products
• Under Variable Costs, analyze • Outbound and materials/Packaging has • Supply side – Supply chain
heads like Inbound Logistics increased across industry disruptions, availability of raw
• Material costs • Sourcing materials
• Workforce expenses • Manufacturing • Market share is decreasing only for
• Shipping costs company, then use 4P concept to
analyse the problem
• Marketing expenses

39
 Growth Strategy Framework
• Estimating a suitable growth opportunity for the firm
Objective • Estimating the value of each option

• New products line/Diversification, Geographic expansion, Pricing, Distribution optimisation, Sales volume increase and
Application sales force performance improvement

Decision Matrix
Internal Factors External Factors Situation Factors Other Factors
• Cost – Will a cost management • The industry growth and how do • Competitor analysis and • Cross selling opportunities
play a role in boosting the profit company growth compares with opportunities to buy new • Funding opportunities
• Revenue –Examine current it business • Elasticity in pricing
revenue stream and look for • Identifying which portfolio has • Creation of a seasonal balance • Risk involved in each option
ways to grow potential to grow based on the by diversifying product range /
• Opportunity cost involved
• Supply chain growth customer trends business
• Distribution channels • Analysing how big is the market • Innovation of new product or
development and penetration and scope for technology and finding
• Pricing – Value based pricing, customers
cost based pricing, Competitor • R&D development
based pricing opportunities

40
 New product lines /Diversification Geographic expansion Pricing
• Analyse the current product line and find • Analyse the current operational geographies • Analyse the current price of different products
opportunities for expansion and looking for potential markets to expand sold/ Services offered in the company
• Factors to consider, • Factors to consider, • Analyse the price elasticity to decide on the
• Market scenario – Competition, growth and • Competition and available market size expected trade off between volume and price
size • Financial factors – ROI and investments • Decide a strategy for pricing
• Availability of expertise in area • Non financial factors – Customer trends and • Value based
• R&D results and patents usage purchasing power, relationship with • Cost based
• Financial capabilities customer, government regulations, • Competitor based
• Synergies with existing business infrastructure and availability of cheap • Check pricing strategies for further
labour understanding

Sales force performance

Distribution optimisation Sales volume increase
improvement
• Analyse on the current distribution network, • Analyse the current sales number, patterns, • Analyse the current sales team and gauge
current commissions and monetary privileges geographical distribution their capabilities
• Factors to consider, • Determine a strategy as suited to the current • Performance can be measured,
• Current distribution channels operation, • Motivation to work – analyzing the current
• Network penetration • Increase the volume of sales using different market to understand their performance,
• Customer satisfaction levels promotional events like bundle offer, buy Outcome based motivation like
more save more etc incentives(Salary, bonus, perks)
• Industry benchmarks
• Change in the price of product / service • Opportunity – Adequate recognition
• Offers to balance the sales in dry season measures, providing equal opportunities
• Ability – Upskilling of current employees to
meet the evolving business needs
41
 Cost Management Framework

Cost Analysis

Description
• Structural Cost Driver: Cost associated with new strategical
Cost Driver Analysis Strategic Positioning Value chain Analysis adoptions like scale, scope, technology etc
Analysis
• Executional Cost Driver: Cost associated with execution of
activities like raw material purchases, wages, design
investment etc
Primary Activities
Structural Cost Driver Swot Analysis • Strategic Positioning Analysis: To know what kind of value a
company creates that differentiates it from its competitors

Executional Cost Secondary Activities

Driver Market Mix

Portfolio Analysis

42
 Framework to streamline a process
• Identifying the delayed process and quantifying the loss associated with it
Objective • How do we improvise such process and what is the cost associated with it

• To evaluate the operations and cut the losses associated with delayed operations
Application

Decision Matrix
Internal Factors External Factors Situation Factors Other Factors
• Identify different process • Identify and understand the • If the process is to be altered • Identify the changes that give
involved and time taken by each alternatives processes available what portion of it should be competitive edge
of them in the market altered • Time required to transform
• Identify the need to improvise • Identify the methods adopted • What should be the scale of • Output of competitors who have
the process. If its for increasing by the competitors alteration already adopted the changes
the volume of products or • Compare with industry • What is the delay time and by
enhancing the experience standards and identify the gaps how much it is going to get cut
• Identify steps which are of more • Research about emerging down
value and prioritize technologies • Impact on customer experience
• Compare skill set needed and because of changed process
currently available
• Quantify the cost and cost
benefits of improvising the
process. Also, estimate the
payback time of investment
made
43
 General Pricing Framework
Objective • To adopt a pricing strategy with goal to increase volume of sales or increase profits or change the positioning of the brand

Application • To understand how a strategy is sensitive to price changes

Decision Matrix
Internal Factors External Factors Situation Factors Other Factors
• Identify Current Pricing • Pricing strategy adopted by the • Frequency at which the • Communication of pricing
technique adopted among competitors company is changing the prices changes
competitive pricing, Cost-based • Industry trends for price • Understanding if customer is • Varied pricing strategies in B2B
and Price-based changes price sensitive in the particular sales
• Important factors considered for • Alternatives available in the domain • Price benefits or promises given
pricing. Eg: Raw materials, same price range • Identifying the processes that to loyal customers
resources etc • How quick the competitors are can be optimised to cut the cost
• Price Elasticity: Identify the to adopt the new price changes • Current positioning of the
relationship between change in company
price and change in volume of
sales

44
 General Strategy to exit a Market
• Analysing the impact of exit
Objective • Valuating the available alternatives

Application • To know if the organization is ready to exit

Decision Matrix

Internal Factors External Factors Situation Factors Other Factors

• Identifying reasons behind the • Understanding the strategy • Demand and cost estimation • Customers reaction to the
revenue drop used by the competitors to due to decrease in sales after sudden exit
• Restructuring the work force survive exit • Impact on other product lines
• Validating the possibility of • Possibility of selling the • Prior commitments to the client
outsourcing option company to competitor to
leverage the available resources
• Are there proper substitutes or
alternatives available in the • Valuation at which other
market competitors have sold the
company

45
 General Framework to launch new product
• Strategy to launch the product
Objective • Pricing and positioning of product

Application • Understanding the market and competitors before introducing a product

Decision Matrix
Internal Factors External Factors Situation Factors Other Factors
• What are the unique features of • Market research on demand for • Market trends • Scope of new substitutes
the product the product • Profit and loss forecast • Effect of new product on
• Check if the product is inline • Identify existing competitors • Pricing strategy mostly value existing sales
with company’s portfolio • Entry barriers based for a innovative product • Patent issues
• Finance and expertise available • Ease for other competitors to • Quantity of production to be
• Positioning of the product enter the market decided after market sizing of
• Identifying the gap between the customer base
resources/manufacturing/
distribution needed and
available

46
CASES
Case Name: Digital Strategy
WellHealth hospitals has a chain of tertiary hospitals and primary clinics spread out across India, numbering to over 100 locations. They are preparing to roll out
COVID-19 vaccinations. They require an integrated marketing campaign for the same.

Case Facts Approach What message we

want to give

1.Client has tertiary hospitals located in

cities and has clinics located in class 2 Analyse Current
and class 3 towns. Which channel available Target Customers
resources
2.Client is a premium service provider
and charges between Rs. 250 to Rs.600
as consultation fee depending on the Google Ads Pain points Medium and small
Facebook ads Telegram Middle class
location and specialty business
3.The target segment for the campaign
(and the subsequent vaccinations) is the
Slot booking
upper middle class and above SEO Marketing Identify local Email Marketing
4.The budget available for the campaign Audience feature groups and
update slots
is Rs.5 crores
Credibility of the
Collaboration source
with NGO’s and New channel for
Influencer updating slot
marketing details

Recommendation Observations Other Notes

• More budget allocation should be done for google • Target organisations over families as they look for • The approach assumes that there is awareness
ads vaccination of employee’s and their families about the vaccination in tier 2 and tier 3 cities, so
• Facebook is currently penetrated into tier 2 & tier 3 • For B2B sales we can use email marketing apart from there is more focus on marketing about availability
cities so it is preferred over other platforms other channels • Most commonly used channels by middle-class and
• Evaluate the champaigns using different metrics like above are selected
click through rate, Lead conversion rate etc
48
Case Name: Ed-tech Start-up
An EdTech startup has developed an innovative offering the form of smartphone-based proctoring of examinations.
a) Estimate the market for such an app in India
b) Suggest the pricing mechanism (pay per use/ subscription/ onetime fee for lifelong access, etc.)

Case Facts Approach

1. The primary clientele for such MARKET SIZE
a product would be colleges Pricing Model
and not schools given the
need for a smartphone at the
user end Identify different areas of under graduation (B.
2. Start-up will need to rapidly Tech, LLB etc.) and post-graduation
scale up the servers and
Pay per Use Subscription One Time Fee
infrastructure to provide large
scale service Identify number of students pursuing each of
3. The vision of the start-up is to these
provide an exclusive
experience to the users so For Manual For AI Based
that they feel the proctoring is Add up all the above students in each area of Proctoring Proctoring
least intrusive. Thereby they graduation
want to create loyalty.

Recommendation Observations Other Notes

• Provide differential pricing as per number of • Target customers’ will be different colleges • Outsource the server requirements; converting
features provides, number of students and • Quickly move into the market to leverage online them to variable costs
frequency of exams learning environment as opposed to traditional • Optimise the app well to keep the system
• Target colleges with multiple campuses in offline learning requirements of device low to make sure that no
different locations and sell in bulk student is restricted out of the app
• Subscription model should be preferred to lock in
the customer to the platform
49
49
Case Name: Market entry case
Client is into running cafeterias in universities as a chain. The client has identified potential for running Indian food themed cafeterias in universities in the USA.
What should be the client’s market entry strategy?

Approach
Case Facts
Internal Factors External Factors Situational Factors Entering strategy
1. Client does not run the
formal dining / mess halls Revenue Assessment Start from scratch
currently. They run Time line and target for
• Investment available for Growth in the industry • Time constrains since there
standalone cafeterias and profitability
this move may be some delays
plan to continue to do that
• No of cafeterias planned
2. Currently client has presence
in 150+ locations in India and Competition analysis Acquisition
provide packaged items as Risk associated with the
Cost Assessment • Based on the universities that • Possible cafeterias chains that
well as live cooking. The investment
we are targeting can be targeted for this move
menu currently a mix of
Indian and western food.
3. Client has not prior ventures Organizational Assessment University caffe bidding Joint Venture
outside of India Market Analysis process • Companies that can be a
• Employees that can be
moved to American • Identifying partner for our move
locations universities • How to change position

Recommendation Observations Other Notes

• Identify universities which has the highest • If time constraints are high, Acquisition is the best • Operational challenges – Hiring both Indian and
population of Indian students strategy. But instead of going for food chains that American employees and create an Indian Theme
• Out of this list, find the potential location based might have lot of outlet, target outlet which is customized to the university
on the competitions presence from the chosen potential universities • Cultural – The client needs to include a
• Acquisition and start from scratch are the best • University cafeteria bidding process – Based on combination of Indian and American customized
strategies. The joint venture might give a wrong the market demand at that location needs to menu for good response from customers
signal to consumers create different bidding amounts
50
Case Name: Restaurant growth case
Client has a chain of high-end restaurants that provide exclusive dining experience. Due to the pandemic, even after lockdown has been lifted, there is poor foot fall.
Client needs a strategy for how to increase revenues.
Case Facts Initiating customer
Approach Dining (Current
Remodelling to
Marketing using loyalty and
ensure covid
1. Client is located in premium Model) influencers promotional
protocols
locations in large cities in programs
India
2. Dining experience (mood Create a private
lighting, live music, live Competitive Resource
Food Delivery chain for online
cooking, etc.) is part of the pricing allocation
value proposition Revenue streams alone
3. Client is willing to provide
home delivery but doesn’t
currently see people paying
the same pricing
Private parties
4. Client is located in premium
locations in large cities in
New Revenue
India Model
5. Dining experience (mood Renting out the
lighting, live music, live place for shootings
cooking, etc.) is part of the
value proposition

Recommendation Observations Other Notes

• Company can start a sub brand and offer food • Using social media influencers to promote the • Assumptions : No reduction in the resources,
delivery at a competitive price new protocols and new offerings but moving them to the new private chain
• Can continue the premium price by providing • Deciding the marketing channels and delivery • Private chain(Sub brand) is to avoid
high quality packing or doing catering partners cannibalisation
• They can look for new revenue sources like
private parties, shooting spots etc

51
Case Name - AeroStar
AeroStar operates part owned private aircrafts for senior corporate executives and professionals to travel as per their convenience. The companies where executives and professionals work buy
part ownership of an aircrafts and get proportionate time, all in a B2B setting. AeroStar facilitates and manages the entire process as well as time allocation. Due to the current pandemic,
AeroStar is seeing poor uptake. In fact, they are also seeing existing customers asking to sell back their part ownership. AeroStar wants you to come up with alternate pricing policy for their
existing product. They are also open to new products in the same space that can increase revenues and profitability.

Case Facts Approach

• Identifying all the fixed costs & variable costs involved to
1. AeroStar operates primarily identify the breakeven point
in US and Europe and has over • Understanding the current pricing model being followed,
2000 clients currently value proposition being offered and revenue streams in
place
2. The typical value • In airline industry costs are calculated on the basis of
proposition they offer is that number of flying hours
the cost of ownership works • Focus should be on to estimate the decrease in the rate of
out lower than business class flying frequency during the pandemic period to plan cost
travel in a public carrier cutting activities and new pricing strategy
• Understanding the concerns of existing customers in
continuing the ownership

Recommendations Observations
• To assure that sufficient amount of value will be delivered to the client for • As there are 2000 existing clients operating in both US and in Europe,
their ownership, AeroStar should extend the contract time of the clients Aerostar can focus on achieving economies of scale in terms of operations
for their current ownership by effectively planning the number flying hours, allocation of staff and their
• By estimating the fall in frequency rate of flying by clients in pandemic duties etc
times, AeroStar can reduce the number of aircrafts and breakeven point • Currently Aerostar is implementing “Value Based Pricing” model for the
for business to be operated. The unwanted aircrafts can either be sold or existing customers (ownership possessed is directly proportional to the
can be given out for lease. By following this the stake of the clients can be flying time offered)
reduced and their part of money can be paid
52
Case Name – AeroStar Contd..

The Ansoff Matrix

Pricing Market Dev. Diversification

• Starting cargo
• By leasing off services with the
New aircrafts for different aircrafts that might
purposes (can be B2B not come into use till
Market or B2C) the pandemic ends
• Leasing aircrafts to
Competitor cargo companies
Value Based Cost Based
Based

Market Penetration Product Dev.

Variable • Remodelling the
No.of Fixed Costs • By increasing the
Ownership Costs aircrafts that are not
clients contract time being
Existing offered in proportion suitable for
Better value Market travelling or might
to the ownership of the
proposition 1. Fuel not come into use till
client
Proportionat than business the pandemic ends
2. Operat 1. Salaries • New Pricing Strategy
e Time class travel in ions into cargo planes
public carriers 2. Hanger
costs
3. Mainten
ance
4. Licenses
Existing Products New Products

53
GUESSTIMATES
Estimate the total number of tickets sold for bahubali-2 in India during its total run-in theaters?

Total No. of theatres in

Assumptions & Approach India = 10000

• Total number of theatres in India = 10000

• % of single screens = 70%, Single screens = 0.7*10000 = % of Single
7000 % of multiplexes =
Screens = 70 30
• % of multiplexes = 30% = 0.3*10000 = 3000
• % of single screens showing Bahubali-2 = 30% = % of theatres for % of theatres for
0.3*7000 = 2100 Bahubali-2 = 30 Bahubali-2 = 40
• % of multiplexes showing Bahubali-2 = 40% = 0.4*3000
= 1200
Tickets available per day = Avg. seating capacity Tickets available per day = Avg. seating
• Average seating capacity – Single screens = 500,
(500)* Avg. no of shows per day (4) capacity (400) * Avg. no of shows per day (6)
Multiplexes = 400
• Average number of shows per day - Single screens = 4,
Multiplexes = 6 Occupancy Rate- Occupancy Rate-
Week 1 = 90 % Week 1 = 90 %
• Average total run of Bahubali-2 = 7 weeks Week 2 = 70% Week 2 = 70%
Week 3 = 50% Week 3 = 50%
• Average occupancy rates of theatres – week1 = 90%, Week 4 = 40% Week 4 = 40%
week2 = 70%, week3 = 50%, week4 = 40%, week5 = Week 5 = 30% Week 5 = 30%
30%, week6 = 20%, week7 = 10% Week 6 = 20% Week 6 = 20%
Week 7 = 10% Week 7 = 10%
• Total tickets sold = ((2100(500*4)) + (1200(400*6))) *
(0.9+0.7+0.5+0.4+0.3+0.2+0.1) (7) = 15.3636 crores
Total Tickets Sold =
153,636,000

55
Estimate the Monthly Spend on soaps in India

Monthly spend on Soap = Average cost of soap * No of soaps bought / Month

Price of a soap is in the range 10 – 60

Assumptions & Approach Price of soap
Geometric mean = root of 600 ≈ 25

Most of the Indians use soap Number of Soaps

and a few use body wash liquids
for bathing.
Family of 4 –> 2 soaps 60% 1000 * 2 * .60 = 1200
Price of the soap are,
1300 * .8 ≈ 1000
Lower range = 10
Higher range = 60 Soap
Individual –> 1 soaps 25 % 1000 * .25 = 250
Population is assumed to be ( 80% )
1300 million
Population Body wash Large size families (4- 15 % 1000 * 3 * .15 = 450
Household segmentation -% of ( 1300 Million ) (10% ) 10 People ) –> 3 soaps
Population - monthly soap
consumption
• Family of 4 people –60% of Not using both
population - using 2 soaps ( 10% ) Total Number of Soaps Used = 1900 Million
• Single person living alone –
25% of population – 1 soap
• Joint families –15 % of
population - 3 soaps Total spend on soap = Number of Soap * Average Price = 1900 * 25 = 47500 million

56
Estimate the total number of regular size pizzas consumed in India on a Sunday?

Assumptions & Approach Total

• Total population of India: 130 crore Population
1300 million
• Rural: 60% ; Urban: 40%

• For Rural: Upper: 20% ; Middle: 40%; Lower: 40%

• For Urban: Upper: 30% ; Middle: 40%; Lower: 30% Rural Urban
• Monthly Consumption: 60% = 780 million 40% = 520 million
• Rural
• Upper: Once a month: 1
• Middle: Once every 2 months: 0.5
Upper Middle Upper Middle
• Lower: No consumption
• Urban 20% = 156 million 40% = 312 million 30% = 156 million 40% = 208 million

• Upper: Twice a month: 2

• Middle: Once a month: 1
• Lower: Once every 2 months: 0.5 Lower Lower
• Weekly consumption distribution: 40% = 312 million 30% = 156 million
• Weekday (Monday, Tuesday, Wednesday,
Thursday) = 10% each
• Weekend (Friday, Saturday, Sunday) = 20% each Monthly Consumption = 156*1 + 312*0.5 + 156*2 + 208*1 + 156*0.5
• Distribution of Different size pizza: Monthly Consumption = 910 million
• Regular: 40%; Medium: 30%; Large: 30% Weekly Consumption = 910/4 = 227.5 million
• One Regular sized pizza is eaten by one person in one Consumption of Pizzas on a Sunday = 20% of 227.5 = 45.5 million
meal Consumption of Regular sized Pizzas on a Sunday = 40% of 45.5 = 18.2 million
57
Estimate the number of children going to school in Hyderabad?

Assumptions & Approach

Total Population
• Total population of Hyderabad: 7 million in Hyderabad
• Let's assume equal distribution of age between 0-
70. Below 35 age there will be 50% population. 7 Million
• Assuming equal distribution:
• 10,000 per age
• Schooling starts at an age of 4 Below the age of Above the age of
• Schooling is considered till 12th 35 35
• 10,000*15= 1,50,000 → Total School going
children 3.5 Million 3.5 Million
• Income segment:
• Upper Middle class: 20% population
=0.30 million
From the age Above the age
• 100% population attending school: Below Age of 4
0.30mn of 4-18 of 18
• Middle Class: 50% population= 0.75 million
3* 0.10=0.30mn 15* 0.10=1.5mn 17* 0.10=1.7mn
• 80% population attending school:
0.60mn
• BPL: 30% population= 0.45million
• 50% population attending the school:
0.225mn Upper Middle
Middle Class BPL
Class
• Total School going population:
0.30+0.60+0.225= 1.125 Million 0.2* 1.5=0.30mn 0.5* 1.5=0.75mn 0.3*1.5=0.45mn

58
Good Luck!